Universal Truckload Services, Inc. Reports Second Quarter 2014 Financial Results

24 Jul, 2014, 16:06 ET from Universal Truckload Services, Inc.

WARREN, Mich., July 24, 2014 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) reported today second quarter net income of $13.6 million, or $0.45 per basic and diluted share, on total revenues of $307.5 million.  This compares to net income of $14.2 million, or $0.47 per basic and diluted share, on total revenues of $264.2 million during the second quarter of 2013. 

Operating revenues increased 16.4% in the quarter ended June 28, 2014 compared to the second quarter of 2013.  Excluding results from our December 2013 acquisition of Westport Axle Corporation, which totaled $26.3 million in the second quarter, Universal's consolidated operating revenues grew 6.4% to $281.2 million, compared to $264.2 million in the second quarter of 2013. 

Revenues from transportation services increased to $197.5 million in the quarter ended June 28, 2014, a 10.1% increase from the comparable period last year due to solid demand in key markets and a good pricing environment.   Excluding Westport's results, revenues from value-added services declined $1.5 million, or 2.9% in the second quarter of 2014 compared to the second quarter of 2013.  Our revenues from intermodal services increased 1.2%, to $34.0 million from $33.6 million in the second quarter of 2013.

Income from operations increased 3.4%, to $24.4 million or 7.9% of operating revenues, compared to $23.6 million or 8.9% of operating revenues for the second quarter of 2013.  Income from operations in our transportation segment increased 30.7% to $9.8 million or 5.0% of segment operating revenues for the second quarter of 2014, which compares to $7.5 million or 4.2% of segment operating revenues for the second quarter of 2013.  Income from operations in our logistics segment, which includes value-added services and dedicated transportation services, decreased 4.7% to $16.1 million or 14.4% of operating revenues for the second quarter of 2014.  This compares to $16.9 million or 19.7% of operating revenues one year earlier.  Second quarter 2014 income from operations in our logistics segment includes $4.1 million from Westport. 

"Our transportation businesses performed well in the second quarter, driven by a 5.7% increase in the number of loads and a 6.5% improvement in average operating revenue per loaded mile," stated Universal's Chief Executive Officer, Scott Wolfe. "During the recent quarter, our recurring logistics operations operated in line with expectations.  Jeff Rogers, our new executive vice president, has now joined our leadership team, and we are focused on identifying growth opportunities, while continuing to build a more effective organization."

We calculate and report selected financial metrics in connection with lending arrangements, and also to isolate and separately identify the impact of corporate development activities, which can include non-operating transaction costs and amortization of intangible assets recognized as the result of prior acquisitions. These statistics are described in more detail below in the section captioned "Non-GAAP Financial Measures."

For the thirteen weeks ended June 28, 2014, our EBITDA increased 13.3% to $32.4 million, from $28.6 million for the thirteen weeks ended June 28, 2013.  Expressed as a percentage of operating revenues, second quarter 2014 EBITDA was 10.5%, compared to 10.8% for the second quarter of 2013.  Trends in EBITDA expressed as a percentage of operating revenues are substantially similar to trends in income from operations.

As of June 28, 2014, we held cash and cash equivalents totaling $8.1 million and marketable securities totaling $12.4 million.  Outstanding debt totaled $242.4 million and obligations pursuant to capital leases were valued at $3.9 million

Universal Truckload Services, Inc. also announced today that our Board of Directors has declared a quarterly cash dividend of $0.07 per share of common stock.  The dividend is payable to shareholders of record at the close of business on August 4, 2014 and is expected to be paid on August 14, 2014. 

Conference call:

We invite analysts and investors to participate in a conference call on Friday, July 25, 2014 at 10:00 AM ET.  During the call, we will discuss Universal's second quarter 2014 financial performance, the current demand outlook in key markets we serve, and trends impacting our business.  Hosting the call will be Scott Wolfe, Chief Executive Officer, Don Cochran, President, and David Crittenden, CFO.

Dial-in details:

Call Toll Free:  (866) 622-0924  International Dial-in:  +1 (660) 422-4956  Conference ID:  64110930

A replay of the conference will be available two hours after the call through August 21, 2014, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 64110930. Additionally, the call will be available on investors.goutsi.com.   

About Universal:

Universal Truckload Services, Inc. is a leading asset-light provider of customized transportation and logistics solutions throughout the United States, Mexico and Canada.  We provide our customers with supply chain solutions that can be scaled to meet their changing demands and volumes.  We offer our customers a broad array of services across their entire supply chain, including transportation, value-added, and intermodal services. 

Forward Looking Statements

Some of the statements contained in this press release might be considered forward-looking statements.  These statements identify prospective information.  Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  These forward-looking statements are subject to a number of factors that may cause actual results to differ materially from the expectations described.  Additional information about the factors that may adversely affect these forward-looking statements is contained in the Company's reports and filings with the Securities and Exchange Commission.  The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.

 

 

UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

Thirteen Weeks Ended

Twenty-six Weeks Ended

June 28,

June 29,

June 28,

June 29,

2014

2013

2014

2013

Operating revenues:

 Transportation services

$       197,505

$       179,439

$       377,321

$       346,366

 Value-added services

76,009

51,181

145,489

98,951

 Intermodal services

34,035

33,552

64,103

66,964

Total operating revenues

307,549

264,172

586,913

512,281

Operating expenses:

 Purchased transportation and equipment rent

155,518

141,640

295,943

276,154

 Direct personnel and related benefits

55,017

45,652

107,918

88,999

 Commission expense

11,022

9,787

20,753

19,122

 Operating expense (exclusive of items shown separately)

30,789

19,715

61,279

38,875

 Occupancy expense

6,578

5,300

13,413

10,262

 Selling, general and administrative

11,217

8,739

21,308

16,541

 Insurance and claims

4,973

4,704

11,594

9,382

 Depreciation and amortization

8,022

5,006

15,663

10,066

Total operating expenses

283,136

240,543

547,871

469,401

Income from operations

24,413

23,629

39,042

42,880

Interest expense, net

(2,463)

(928)

(4,038)

(2,030)

Other non-operating income

125

127

214

261

Income before provision for income taxes

22,075

22,828

35,218

41,111

Provision for income taxes

8,442

8,674

13,461

15,583

Net income

$         13,633

$         14,154

$         21,757

$         25,528

Earnings per common share:

 Basic

$             0.45

$             0.47

$             0.72

$             0.85

 Diluted

$             0.45

$             0.47

$             0.72

$             0.85

Weighted average number of common shares outstanding:

 Basic

30,054

30,054

30,082

30,054

 Diluted

30,092

30,196

30,124

30,196

Dividends paid per common share:

$             0.07

$                 -

$             0.14

$                 -

 

 

UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

June 28, 2014

December 31, 2013

Assets

Cash and cash equivalents

$           8,106

$            10,223

Marketable securities

12,407

11,626

Accounts receivable - net

161,214

132,001

Other current assets

46,430

49,539

Total current assets

228,157

203,389

Property and equipment - net

161,429

142,656

Other long-term assets - net

138,926

144,091

Total assets

$       528,512

$          490,136

Liabilities and shareholders' equity

Current liabilities, excluding current maturities of capital lease obligations and debt

$       118,195

$            93,896

Capital lease obligations

3,895

4,643

Debt

242,403

237,500

Other long-term liabilities

44,953

48,532

Total liabilities

409,446

384,571

Total shareholders' equity

119,066

105,565

Total liabilities and shareholders' equity

$       528,512

$          490,136

 

 

UNIVERSAL TRUCKLOAD SERVICES, INC.

 Unaudited Summary of Operating Data

Thirteen Weeks Ended

Twenty-six Weeks Ended

June 28, 

June 29,

June 28, 

June 29,

2014

2013

2014

2013

Transportation Services:

Average operating revenues per loaded mile (a)

$             2.93

$             2.75

$             2.95

$             2.72

Average operating revenues per loaded mile, 

excluding fuel surcharges, where separately identifiable (a)

$             2.54

$             2.36

$             2.55

$             2.34

Average operating revenues per load (a)

$           1,031

$           1,002

$           1,039

$              999

Average operating revenues per load, excluding

fuel surcharges, where separately identifiable (a)

$              892

$              859

$              898

$              857

Average length of haul (a) (b)

351

364

353

367

Number of loads (a)

167,299

158,274

317,660

309,315

Value Added Services:

Number of facilities (d)

Customer provided

19

17

19

17

Company leased

28

27

28

27

     Total

47

44

47

44

Intermodal Services:

Drayage (in thousands)

$         30,629

$         27,771

$         57,573

$         52,633

Domestic Intermodal (in thousands)

743

3,220

1,547

9,168

Depot (in thousands)

2,663

2,561

4,983

5,163

     Total (in thousands)

$         34,035

$         33,552

$         64,103

$         66,964

Average operating revenues per loaded mile (c)

$             5.30

$             4.49

$             5.21

$             4.47

Average operating revenues per loaded mile,

excluding fuel surcharges, where separately identifiable (c)

$             4.28

$             3.62

$             4.20

$             3.59

Average operating revenues per load (c)

$              395

$              339

$              397

$              330

Average operating revenues per load, excluding

fuel surcharges, where separately identifiable (c)

$              319

$              273

$              320

$              264

Number of loads (c) 

77,460

82,000

145,081

159,657

Number of container yards

11

11

11

11

(a)

Excludes operating data from Universal Logistics Solutions, Inc., and Universal Logistics Solutions International, Inc., in order to improve the relevance of the statistical data related to our brokerage services and improve the comparability to our peer companies.  Also excludes final mile delivery and shuttle service loads.

(b)

Average length of haul is computed using loaded miles, excluding final mile delivery and shuttle service loads.

(c)

Excludes operating data from Universal Logistics Solutions, Inc. in order to improve the relevance of the statistical data related to our intermodal services and improve the comparability to our peer companies. 

(d)

Excludes storage yards, terminals and office facilities.

 

UNIVERSAL TRUCKLOAD SERVICES, INC.

 Unaudited Summary of Operating Data - Continued

Thirteen Weeks Ended

Twenty-six Weeks Ended

June 28, 

June 29,

June 28, 

June 29,

2014

2013

2014

2013

Average Headcount:

Employees

4,251

3,540

4,241

3,208

Full time equivalents

1,539

1,650

1,583

1,856

     Total

5,790

5,190

5,824

5,064

Average number of tractors:

Provided by owner-operators

3,323

3,338

3,309

3,356

Owned

801

687

779

685

Third party lease

67

65

77

55

     Total

4,191

4,090

4,165

4,096

Operating Revenues by Segment:

Transportation

$       195,374

$       178,261

$       370,723

$       347,803

Logistics

112,062

85,805

215,968

164,267

Other

113

106

222

211

$       307,549

$       264,172

$       586,913

$       512,281

Income from Operations by Segment:

Transportation

$           9,819

$           7,504

$         15,129

$         13,220

Logistics

16,081

16,890

25,762

30,644

Other

(1,487)

(765)

(1,849)

(984)

$         24,413

$         23,629

$         39,042

$         42,880

 

Non-GAAP Financial Measures

In addition to providing consolidated financial statements based on generally accepted accounting principles in the United States of America (GAAP), we are providing additional financial measures that are not required by or prepared in accordance with GAAP (non-GAAP). We present EBITDA as supplemental measures of our performance. We define EBITDA as net income plus (i) interest expense, net, (ii) provision for income taxes and (iii) depreciation and amortization, and less other non-operating income, or EBITDA. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis.

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, we are presenting the most directly comparable GAAP financial measure and reconciling the non-GAAP financial measure to the comparable GAAP measure. Set forth below is a reconciliation of net income, the most comparable GAAP measure, to EBITDA for each of the periods indicated:

Thirteen Weeks Ended

Twenty-six Weeks Ended

June 28, 

June 29,

June 28, 

June 29,

2014

2013

2014

2013

( in thousands)

( in thousands)

EBITDA

Net income

$         13,633

$       14,154

$         21,757

$       25,528

Provision for income taxes

8,442

8,674

13,461

15,583

Interest expense, net

2,463

928

4,038

2,030

Depreciation and amortization

8,022

5,006

15,663

10,066

Other non-operating income

(125)

(127)

(214)

(261)

EBITDA

$         32,435

$       28,635

$         54,705

$       52,946

EBITDA margin (a)

10.5%

10.8%

9.3%

10.3%

(a) EBITDA margin is computed by dividing EBITDA by total operating revenues for each of the periods indicated.

We present EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

EBITDA has limitations as an analytical tool. Some of these limitations are:

  • EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
  • EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
  • Other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and EBITDA only supplementally.

SOURCE Universal Truckload Services, Inc.



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