Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen and Thirty-nine Weeks Ended October 2, 2010

Oct 28, 2010, 16:05 ET from Universal Truckload Services, Inc.

WARREN, Mich., Oct. 28 /PRNewswire-FirstCall/ -- Universal Truckload Services, Inc. (Nasdaq: UACL) today announced financial results for the thirteen and thirty-nine weeks ended October 2, 2010.

For the thirteen weeks ended October 2, 2010, operating revenues increased 21.8%, or $28.0 million, to $156.5 million from $128.5 million for the thirteen weeks ended September 26, 2009.  Included in operating revenues are fuel surcharges of $13.8 million and $9.5 million for the thirteen weeks ended October 2, 2010 and September 26, 2009, respectively. Net income increased by $1.2 million, to $2.9 million, or $0.18 per basic and diluted share for the thirteen weeks ended October 2, 2010, from $1.7 million, or $0.11 per basic and diluted share, for the thirteen weeks ended September 26, 2009.  Included in net income for the thirteen weeks ended September 26, 2009 were $0.1 million, or $0.01 per basic and diluted share, of after-tax charges for other-than-temporary impairments of marketable equity securities classified as available for sale.

Universal's truckload revenue in the third quarter of 2010 increased by 16.1% to $95.0 million from $81.8 million in the corresponding period of 2009.  Included in truckload revenue in the third quarter of 2010 is $6.0 million of revenue from our acquisitions completed since the third quarter of 2009.  Brokerage revenue in the third quarter of 2010 increased by 40.2% to $39.2 million from $27.9 million in the corresponding period of 2009.  Included in brokerage revenue in the third quarter of 2010 is $8.0 million of revenue from our acquisitions completed since the third quarter of 2009.  Intermodal revenue in the third quarter of 2010 increased by 19.4% to $22.3 million from $18.7 million in the corresponding period of 2009.

For the thirty-nine weeks ended October 2, 2010, operating revenues increased 23.8%, or $86.4 million, to $449.8 million from $363.4 million for the thirty-nine weeks ended September 26, 2009. Included in operating revenues are fuel surcharges of $40.1 million and $24.8 million for the thirty-nine weeks ended October 2, 2010 and September 26, 2009, respectively. Net income increased by $6.4 million, to $9.6 million, or $0.60 per basic and diluted share for the thirty-nine weeks ended October 2, 2010, from $3.1 million, or $0.20 per basic and diluted share for the thirty-nine weeks ended September 26, 2009.  Included in net income for the thirty-nine weeks ended October 2, 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 the thirty-nine weeks ended September 26, 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 the first three quarters of 2010 increased by 23.3% to $278.2 million from $225.6 million in the corresponding period of 2009.  Included in truckload revenue in the first three quarters of 2010 is $30.0 million from our acquisitions completed since the third quarter of 2009.  Brokerage revenue in the first three quarters of 2010 increased by 30.0% to $106.3 million from $81.8 million in the corresponding period of 2009.  Included in brokerage revenue in the first three quarters of 2010 is $22.9 million from our acquisitions completed since the third quarter of 2009.  Intermodal revenue in the first three quarters of 2010 increased by 16.6% to $65.2 million from $55.9 million in the corresponding period of 2009.

"We have seen improvement in our business environment throughout all three quarters of 2010," stated Universal's President and CEO Don Cochran. "Load counts have improved over last year in all of our business segments, and higher rates have shown that capacity in the market place remains tight. While the business environment has improved for the first three quarters, we remain cautious in our optimism."

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.

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


Thirty-nine Weeks Ended



October 2, 2010


September 26, 2009


October 2, 2010


September 26, 2009

Operating revenues:










Truckload

$

94,980

$

81,839

$

278,246

$

225,620


Brokerage


39,186


27,942


106,347


81,819


Intermodal


22,296


18,677


65,217


55,942



Total operating revenues


156,462


128,458


449,810


363,381

Operating expenses:










Purchased transportation


119,333


96,905


341,634


271,937


Commissions expense


10,072


8,677


28,933


24,339


Other operating expense


3,020


2,393


10,269


6,895


Selling, general, and administrative


11,877


10,935


37,761


33,378


Insurance and claims


4,715


4,084


12,845


13,107


Depreciation and amortization


2,790


2,583


8,175


7,721



Total operating expenses


151,807


125,577


439,617


357,377



Income from operations


4,655


2,881


10,193


6,004

Interest income (expense), net


31


(136)


81


(133)

Other non-operating income (expense), net


225


(17)


5,820


(837)



Income before provision for income taxes


4,911


2,728


16,094


5,034

Provision for income taxes


1,979


1,029


6,524


1,891



Net income

$

2,932

$

1,699

$

9,570

$

3,143

Earnings per common share:










Basic

$

0.18

$

0.11

$

0.60

$

0.20


Diluted

$

0.18

$

0.11

$

0.60

$

0.20

Weighted average number of common shares outstanding:










Basic


15,925


15,980


15,962


15,983


Diluted


15,925


15,980


15,962


15,983





UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)






October 2, 2010


December 31, 2009

Assets






Cash and cash equivalents

$

2,980

$

953


Marketable securities


14,078


15,721


Accounts receivable – net


71,950


60,701


Other current assets


11,618


12,249



Total current assets


100,626


89,624


Property and equipment – net


77,826


76,246


Other long-term assets – net


33,727


35,741



Total assets

$

212,179

$

201,611







Liabilities and shareholders' equity






Total current liabilities

$

43,195

$

40,305


Total long-term liabilities


5,343


6,881



Total liabilities


48,538


47,186



Total shareholders' equity


163,641


154,425



Total liabilities and shareholders' equity

$

212,179

$

201,611




UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Summary of Operating Data




Thirteen Weeks Ended


Thirty-nine Weeks Ended



October 2, 2010


September 26, 2009


October 2, 2010


September 26, 2009







Average number of tractors provided by owner-operators











Truckload


2,508


2,787


2,482


2,719



Intermodal


640


665


631


691













Total


3,148


3,452


3,113


3,410














Truckload Revenues:










Average operating revenues per loaded mile

$

2.65

$

2.26

$

2.52

$

2.29


Average operating revenues per loaded mile, excluding fuel surcharges

$

2.34

$

2.04

$

2.22

$

2.09


Average operating revenues per load

$

1,057

$

978

$

996

$

962


Average operating revenues per load, excluding fuel surcharges

$

933

$

885

$

879

$

877


Average length of haul (2)


399


433


395


420


Number of loads


89,878


83,708


279,411


234,628










Brokerage Revenues:










Average operating revenues per loaded mile (1)

$

2.52

$

1.92

$

2.13

$

1.93


Average operating revenues per load (1)

$

1,424

$

1,193

$

1,295

$

1,136


Average length of haul (1)(2)


566


622


607


588


Number of loads (1)


21,643


21,732


63,682


66,428


Intermodal Revenues:










Drayage (in thousands)

$

20,407

$

16,932

$

59,356

$

50,370


Depot (in thousands)

$

1,889

$

1,745

$

5,861

$

5,572












Total (in thousands)

$

22,296

$

18,677

$

65,217

$

55,942












Average operating revenues per loaded mile

$

3.61

$

3.42

$

3.38

$

3.39


Average operating revenues per loaded mile, excluding fuel surcharges

$

3.14

$

3.06

$

2.96

$

3.05


Average operating revenues per load

$

288

$

279

$

295

$

281


Average operating revenues per load, excluding fuel surcharges

$

250

$

250

$

258

$

253


Number of loads


70,937


60,641


201,289


179,024

(1)

Excludes operating data from CrossRoad Carriers, Inc., D. Kratt International, Inc., and Cavalry Transportation, Inc. in order to improve the relevance of the statistical data related to our brokerage services and improve the comparability to our peer companies.

(2)

Average length of haul is computed using loaded miles.



SOURCE Universal Truckload Services, Inc.



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