Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen Weeks and Fifty-two Weeks Ended December 31, 2011

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Feb 23, 2012, 04:05 ET

WARREN, Mich., Feb. 23, 2012 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen weeks and year ended December 31, 2011.

For the thirteen weeks ended December 31, 2011, operating revenues increased 11.8%, or $18.5 million, to $174.6 million from $156.1 million for the thirteen weeks ended December 31, 2010, and our operating ratio improved 20 basis points to 96.5% for the thirteen weeks ended December 31, 2011 from 96.7% for the thirteen weeks ended December 31, 2010. Included in operating revenues are fuel surcharges of $22.4 million and $14.1 million for the thirteen weeks ended December 31, 2011 and December 31, 2010, respectively. Income from operations increased by 16.5%, or $0.9 million, to $6.0 million for the thirteen weeks ended December 31, 2011 from $5.2 million for the thirteen weeks ended December 31, 2010, and net income increased by $0.4 million, to $3.5 million, or $0.23 per basic and diluted share, for the thirteen weeks ended December 31, 2011, from $3.2 million, or $0.20 per basic and diluted share, for the thirteen weeks ended December 31, 2010.

Universal's truckload revenue for the thirteen weeks ended December 31, 2011 increased by 13.4% to $104.2 million from $91.9 million in the corresponding period of 2010. Included in truckload revenue for the thirteen weeks ended December 31, 2011 is $2.2 million of revenue from our acquisition completed in the first quarter of 2011. Brokerage revenue for the thirteen weeks ended December 31, 2011 increased by 11.1% to $46.3 million from $41.6 million in the corresponding period of 2010. Included in brokerage revenue for the thirteen weeks ended December 31, 2011 is $0.8 million of revenue from our acquisition completed in the first quarter of 2011. Intermodal revenue for the thirteen weeks ended December 31, 2011 increased by 6.8% to $24.2 million from $22.7 million in the corresponding period of 2010.

For the year ended December 31, 2011, operating revenues increased 15.5%, or $93.8 million, to $699.8 million from $605.9 million for the year December 31, 2010, and our operating ratio improved 100 basis points to 96.5% for the year ended December 31, 2011 from 97.5% for the year ended December 31, 2010. Included in operating revenues are fuel surcharges of $88.6 million and $54.2 million for the year ended December 31, 2011 and December 31, 2010, respectively. Income from operations increased by 58.7%, or $9.0 million, to $24.4 million for the year ended December 31, 2011 from $15.4 million for the year ended December 31, 2010, and net income increased by $3.1 million, to $15.8 million, or $1.01 per basic and diluted share, for the year ended December 31, 2011, from $12.7 million, or $0.80 per basic and diluted share, for the year ended December 31, 2010. Included in net income for the year ended December 31, 2011 were $0.7 million, or $0.04 per basic and diluted share, of after-tax gains on the sales of marketable securities classified as available for sale compared to $3.2 million, or $0.20 per basic and diluted share, for year ended December 31, 2010.

Universal's truckload revenue for the year ended December 31, 2011 increased by 14.3% to $423.2 million from $370.1 million in the corresponding period of 2010. Included in truckload revenue for the year ended December 31, 2011 is $8.9 million of revenue from our acquisitions completed since the first quarter of 2011. Brokerage revenue for the year ended December 31, 2011 increased by 17.5% to $173.8 million from $148.0 million in the corresponding period of 2010. Included in brokerage revenue for the year ended December 31, 2011 is $1.2 million of revenue from our acquisitions completed since the first quarter of 2011. Intermodal revenue for the year ended December 31, 2011 increased by 16.9% to $102.8 million from $87.9 million in the corresponding period of 2010.

"I am pleased with Universal's 2011 fourth quarter and full year operating results," stated Universal's President and CEO, Don Cochran. "Overall our continued revenue growth was driven by increases in our operating revenues per load and the number of loads we hauled, as well as increases in the fuel surcharges we pass along to our owner-operators. Income from operations increased by 16.5% in the fourth quarter of 2011 compared to the same period last year, and by 58.7% for the full year 2011 compared to 2010. Excluding fuel surcharges, we improved our operating ratio by 40 basis points in the fourth quarter of 2011 compared to the same period last year, and by 120 basis points for all of 2011. Included in our earnings per share for 2010 and 2011 were $0.20 and $0.04, respectively, of after-tax gains from the sales of securities. Excluding these gains, our earnings increased from $0.60 per share to $0.97 per share, a 61.7% increase. We have made substantial progress in 2011, and look forward to 2012. We expect the economy to continue to grow, although modestly given the legislative and European economic headwinds, but are excited to face the challenges ahead."

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 by using third party capacity, 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.

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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,
				2011		2010		2011		2010
Operating revenues:
	Truckload		$	104,175	$	91,850	$	423,182	$	370,096
	Brokerage			46,262		41,623		173,820		147,970
	Intermodal			24,197		22,660		102,769		87,877
		Total operating revenues		174,634		156,133		699,771		605,943
Operating expenses:
	Purchased transportation			133,810		119,407		538,313		461,041
	Commissions expense			10,375		9,872		41,930		38,805
	Other operating expense			3,720		3,007		14,178		13,276
	Selling, general, and administrative			13,305		11,492		52,367		49,253
	Insurance and claims			4,475		4,360		16,956		17,205
	Depreciation and amortization			2,921		2,821		11,636		10,996
		Total operating expenses		168,606		150,959		675,380		590,576
		Income from operations		6,028		5,174		24,391		15,367
Interest income, net				10		39		58		120
Other non-operating income				387		149		1,778		5,969
		Income before provision for income taxes		6,425		5,362		26,227		21,456
Provision for income taxes				2,881		2,188		10,414		8,712
		Net income	$	3,544	$	3,174	$	15,813	$	12,744
Earnings per common share:
	Basic		$	0.23	$	0.20	$	1.01	$	0.80
	Diluted		$	0.23	$	0.20	$	1.01	$	0.80
Weighted average number of common shares outstanding:
	Basic			15,555		15,780		15,594		15,917
	Diluted			15,555		15,780		15,594		15,917
Dividends paid per common share:			$	—	$	—	$	1.00	$	—


UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

						December 31, 2011		December 31, 2010
Assets
	Cash and cash equivalents				$	878	$	6,261
	Marketable securities					16,059		15,041
	Accounts receivable – net					74,876		68,833
	Other current assets					17,527		11,362
				Total current assets		109,340		101,497
	Property and equipment – net					89,985		78,206
	Other long-term assets – net					29,619		32,345
				Total assets	$	228,944	$	212,048

Liabilities and shareholders' equity
		Total current liabilities			$	55,650	$	42,294
		Total long-term liabilities				11,158		5,543
			Total liabilities			66,808		47,837
			Total shareholders' equity			162,136		164,211
			Total liabilities and shareholders' equity		$	228,944	$	212,048

	UNIVERSAL TRUCKLOAD SERVICES, INC.
	Unaudited Summary of Operating Data

						Thirteen Weeks Ended December 31,				Year Ended December 31,
						2011		2010		2011		2010

	Average number of tractors provided by
	owner-operators
			Truckload			2,527		2,449		2,490		2,474
			Intermodal			657		652		665		637

			Total			3,184		3,101		3,155		3,111

Truckload Revenues:
	Average operating revenues per loaded mile				$	3.06	$	2.67	$	2.96	$	2.56
	Average operating revenues per loaded mile,
			excluding fuel surcharges		$	2.52	$	2.34	$	2.46	$	2.25
	Average operating revenues per load				$	1,123	$	1,061	$	1,100	$	1,011
	Average operating revenues per load, excluding
			fuel surcharges		$	928	$	930	$	914	$	891
	Average length of haul (2)					368		398		372		396
	Number of loads					92,739		86,606		384,641		366,017

Brokerage Revenues:
	Average operating revenues per loaded mile (1)				$	2.33	$	2.38	$	2.36	$	2.11
	Average operating revenues per load (1)				$	1,391	$	1,495	$	1,392	$	1,325
	Average length of haul (1)(2)					598		629		589		626
	Number of loads (1)					29,402		25,572		111,931		100,233

Intermodal Revenues:
		Drayage (in thousands)			$	21,727	$	20,394	$	92,836	$	79,750
		Depot (in thousands)			$	2,470	$	2,266	$	9,933	$	8,127

		Total (in thousands)			$	24,197	$	22,660	$	102,769	$	87,877

		Average operating revenues per loaded mile			$	4.19	$	3.74	$	4.18	$	3.46
		Average operating revenues per loaded mile,
				excluding fuel surcharges	$	3.36	$	3.23	$	3.42	$	3.02
		Average operating revenues per load			$	290	$	283	$	308	$	292
		Average operating revenues per load, excluding
				fuel surcharges	$	233	$	244	$	252	$	255
		Number of loads				74,830		72,048		301,357		273,337

(1)		Excludes operating data from Universal Logistics Solutions, Inc., and D. Kratt 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.
(2)		Average length of haul is computed using loaded miles.