Universal Truckload's Q4 earnings surge 77% to US$3.2M, as truckload revenues rise 4.4% to US$91.9M on Q1 acquisitions; full-year earnings soar 159% to US$12.7M on gains from securities sales

WARREN, Michigan , February 25, 2011 (press release) – Universal Truckload Services, Inc. (Nasdaq:UACL - News) today announced financial results for the thirteen weeks and year ended December 31, 2010.

For the thirteen weeks ended December 31, 2010, operating revenues increased 11.6%, or $16.3 million, to $156.1 million from $139.8 million for the thirteen weeks ended December 31, 2009.  Included in operating revenues are fuel surcharges of $14.1 million and $11.1 million for the thirteen weeks ended December 31, 2010 and December 31, 2009, respectively. Net income increased by $1.4 million, to $3.2 million, or $0.20 per basic and diluted share for the thirteen weeks ended December 31, 2010, from $1.8 million, or $0.11 per basic and diluted share, for the thirteen weeks ended December 31, 2009.

Universal's truckload revenue in the fourth quarter of 2010 increased by 4.4% to $91.9 million from $88.0 million in the corresponding period of 2009.  Included in truckload revenue in the fourth quarter of 2010 is $1.6 million of revenue from our acquisition completed in the first quarter of 2010.  Brokerage revenue in the fourth quarter of 2010 increased by 33.9% to $41.6 million from $31.1 million in the corresponding period of 2009.  Included in brokerage revenue in the fourth quarter of 2010 is $8.0 million of revenue from our acquisitions completed since the fourth quarter of 2009.  Intermodal revenue in the fourth quarter of 2010 increased by 8.9% to $22.7 million from $20.8 million in the corresponding period of 2009.

For the year ended December 31, 2010, operating revenues increased 20.4%, or $102.7 million, to $605.9 million from $503.2 million for the year ended December 31, 2009.  Included in operating revenues are fuel surcharges of $54.2 million and $35.9 million for 2010 and 2009, respectively. Net income increased by $7.8 million, to $12.7 million, or $0.80 per basic and diluted share for 2010, from $4.9 million, or $0.31 per basic and diluted share for 2009.  Included in net income for 2010 were $3.2 million, or $0.20 per basic and diluted share, of after-tax gains on the sales of marketable securities classified as available for sale.  Included in net income for 2009 were $0.8 million, or $0.05 per basic and diluted share, of after-tax charges for other-than-temporary impairments of marketable securities classified as available for sale.

Universal's truckload revenue in 2010 increased by 18.0% to $370.1 million from $313.6 million in the corresponding period of 2009.  Included in truckload revenue in 2010 is $31.6 million of revenue from our acquisitions completed since the third quarter of 2009.  Brokerage revenue in 2010 increased by 31.0% to $148.0 million from $112.9 million in the corresponding period of 2009.  Included in brokerage revenue in 2010 is $30.8 million of revenue from our acquisitions completed since the third quarter of 2009.  Intermodal revenue in 2010 increased by 14.5% to $87.9 million from $76.7 million in the corresponding period of 2009.

"We have seen improvements in our operating margins in each quarter this year", stated Universal's President and CEO Don Cochran, "and we believe that we have put the appropriate measures in place to continue this improved performance. Rates in both our van and flatbed operations have been helped by tightening capacity, and intermodal shows signs of both stabilizing rates and improved volumes.  Despite the many economic and regulatory challenges we face, we are optimistic that we can continue to work to control costs and improve the selection of freight available to our Owner Operators and Agents."

Universal Truckload Services, Inc. is primarily an asset light provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec.  The Company's trucking services include both flatbed and dry van operations and the Company provides rail-truck and steamship-truck intermodal support services.  The Company also offers truck brokerage services, which allow us to supplement our capacity and provide our customers with transportation of freight not handled by our owner-operators, and full service international freight forwarding and customs house brokerage services.

   

UNIVERSAL TRUCKLOAD SERVICES, INC.

 

Unaudited Condensed Consolidated Statements of Income

 

(In thousands, except per share data)

 



 
 

Thirteen Weeks Ended

December 31,

 

Year Ended

December 31,

 
   

2010

 

2009

 

2010

 

2009

 

Operating revenues:

                 
 

Truckload

$

91,850

$

87,953

$

370,096

$

313,573

 
 

Brokerage

 

41,623

 

31,095

 

147,970

 

112,914

 
 

Intermodal

 

22,660

 

20,801

 

87,877

 

76,743

 
   

Total operating revenues

 

156,133

 

139,849

 

605,943

 

503,230

 

Operating expenses:

                 
 

Purchased transportation

 

119,407

 

106,071

 

461,041

 

378,008

 
 

Commissions expense

 

9,872

 

9,614

 

38,805

 

33,953

 
 

Other operating expense

 

3,007

 

3,421

 

13,276

 

10,316

 
 

Selling, general, and administrative

 

11,492

 

10,854

 

49,253

 

44,232

 
 

Insurance and claims

 

4,360

 

4,241

 

17,205

 

17,348

 
 

Depreciation and amortization

 

2,821

 

2,633

 

10,996

 

10,354

 
   

Total operating expenses

 

150,959

 

136,834

 

590,576

 

494,211

 
   

Income from operations

 

5,174

 

3,015

 

15,367

 

9,019

 

Interest income (expense), net

 

39

 

(133)

 

120

 

(266)

 

Other non-operating income (expense), net

 

149

 

104

 

5,969

 

(733)

 
   

Income before provision for income taxes

 

5,362

 

2,986

 

21,456

 

8,020

 

Provision for income taxes

 

2,188

 

1,229

 

8,712

 

3,120

 
   

Net income

$

3,174

$

1,757

$

12,744

$

4,900

 

Earnings per common share:

                 
 

Basic

$

0.20

$

0.11

$

0.80

$

0.31

 
 

Diluted

$

0.20

$

0.11

$

0.80

$

0.31

 

Weighted average number of common shares outstanding:

                 
 

Basic

 

15,780

 

15,980

 

15,917

 

15,982

 
 

Diluted

 

15,780

 

15,980

 

15,917

 

15,982

 
   
                     

 

 

   

 

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