Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen Weeks and Thirty-nine Weeks Ended October 1, 2011

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Oct 27, 2011, 04:05 ET

WARREN, Mich., Oct. 27, 2011 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen weeks and thirty-nine weeks ended October 1, 2011.

For the thirteen weeks ended October 1, 2011, operating revenues increased 19.9%, or $31.1 million, to $187.5 million from $156.5 million for the thirteen weeks ended October 2, 2010, and our operating ratio improved 150 basis points to 95.5% for the thirteen weeks ended October 1, 2011 from 97.0% for the thirteen weeks ended October 2, 2010. Included in operating revenues are fuel surcharges of $23.3 million and $13.8 million for the thirteen weeks ended October 1, 2011 and October 2, 2010, respectively. Income from operations increased by 80.9%, or $3.8 million, to $8.4 million for the thirteen weeks ended October 1, 2011 from $4.7 million for the thirteen weeks ended October 2, 2010, and net income increased by $2.5 million, to $5.4 million, or $0.35 per basic and diluted share, for the thirteen weeks ended October 1, 2011, from $2.9 million, or $0.18 per basic and diluted share, for the thirteen weeks ended October 2, 2010.

Universal's truckload revenue for the thirteen weeks ended October 1, 2011 increased by 16.8% to $110.9 million from $95.0 million in the corresponding period of 2010. Included in truckload revenue for the thirteen weeks ended October 1, 2011 is $2.8 million of revenue from our acquisition completed in the first quarter of 2011. Brokerage revenue for the thirteen weeks ended October 1, 2011 increased by 24.0% to $48.6 million from $39.2 million in the corresponding period of 2010. Included in brokerage revenue for the thirteen weeks ended October 1, 2011 is $0.3 million of revenue from our acquisition completed in the first quarter of 2011. Intermodal revenue for the thirteen weeks ended October 1, 2011 increased by 25.9% to $28.1 million from $22.3 million in the corresponding period of 2010.

For the thirty-nine weeks ended October 1, 2011, operating revenues increased 16.7%, or $75.3 million, to $525.1 million from $449.8 million for the thirty-nine weeks ended October 2, 2010, and our operating ratio improved 120 basis points to 96.5% for the thirty-nine weeks ended October 1, 2011 from 97.7% for the thirty-nine weeks ended October 2, 2010. Included in operating revenues are fuel surcharges of $66.2 million and $40.1 million for the thirty-nine weeks ended October 1, 2011 and October 2, 2010, respectively. Income from operations increased by 80.2%, or $8.2 million, to $18.4 million for the thirty-nine weeks ended October 1, 2011 from $10.2 million for the thirty-nine weeks ended October 2, 2010, and net income increased by $2.7 million, to $12.3 million, or $0.79 per basic and diluted share, for the thirty-nine weeks ended October 1, 2011, from $9.6 million, or $0.60 per basic and diluted share, for the thirty-nine weeks ended October 2, 2010. Included in net income for the thirty-nine weeks ended October 1, 2011 were $0.6 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, during the thirty-nine weeks ended October 2, 2010.

Universal's truckload revenue for the thirty-nine weeks ended October 1, 2011 increased by 14.6% to $319.0 million from $278.2 million in the corresponding period of 2010. Included in truckload revenue for the thirty-nine weeks ended October 1, 2011 is $6.7 million of revenue from our acquisitions completed since the first quarter of 2011. Brokerage revenue for the thirty-nine weeks ended October 1, 2011 increased by 19.9% to $127.6 million from $106.3 million in the corresponding period of 2010. Included in brokerage revenue for the thirty-nine weeks ended October 1, 2011 is $0.3 million of revenue from our acquisitions completed since the first quarter of 2011. Intermodal revenue for the thirty-nine weeks ended October 1, 2011 increased by 20.5% to $78.6 million from $65.2 million in the corresponding period of 2010.

"In terms of earnings, third quarter has proved to be our best quarter of the year," stated Universal's President and CEO Don Cochran. "Strong demand in all of our core businesses, compounded with continued rate improvements, has pushed revenues higher than we've seen in several quarters. We are also pleased with the progress and integration of our recent acquisitions, and look forward to their continued improved performance. Our agents, independent contractors and employees experienced the best conditions we have had in quite some time."

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 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Operating revenues:
	Truckload		$	110,896	$	94,980	$	319,007	$	278,246
	Brokerage			48,588		39,186		127,558		106,347
	Intermodal			28,062		22,296		78,572		65,217
		Total operating revenues		187,546		156,462		525,137		449,810
Operating expenses:
	Purchased transportation			144,413		119,333		404,503		341,634
	Commissions expense			10,974		10,072		31,555		28,933
	Other operating expense			3,519		3,020		10,458		10,269
	Selling, general, and administrative			13,116		11,877		39,062		37,761
	Insurance and claims			4,155		4,715		12,481		12,845
	Depreciation and amortization			2,947		2,790		8,715		8,175
		Total operating expenses		179,124		151,807		506,774		439,617
		Income from operations		8,422		4,655		18,363		10,193
Interest income (expense), net				4		31		48		81
Other non-operating income				233		225		1,391		5,820
		Income before provision for income taxes		8,659		4,911		19,802		16,094
Provision for income taxes				3,224		1,979		7,533		6,524
		Net income	$	5,435	$	2,932	$	12,269	$	9,570
Earnings per common share:
	Basic		$	0.35	$	0.18	$	0.79	$	0.60
	Diluted		$	0.35	$	0.18	$	0.79	$	0.60
Weighted average number of common shares outstanding:
	Basic			15,574		15,925		15,607		15,962
	Diluted			15,574		15,925		15,607		15,962
Dividends paid per common share:			$	1.00	$	—	$	1.00	$	—

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

				October 1, 2011		December 31, 2010
Assets
	Cash and cash equivalents		$	1,376	$	6,261
	Marketable securities			15,275		15,041
	Accounts receivable – net			87,385		68,833
	Other current assets			13,507		11,362
		Total current assets		117,543		101,497
	Property and equipment – net			80,109		78,206
	Other long-term assets – net			30,936		32,345
		Total assets	$	228,588	$	212,048

Liabilities and shareholders' equity
	Total current liabilities		$	63,410	$	42,294
	Total long-term liabilities			7,562		5,543
		Total liabilities		70,972		47,837
		Total shareholders' equity		157,616		164,211
		Total liabilities and shareholders' equity	$	228,588	$	212,048

UNIVERSAL TRUCKLOAD SERVICES, INC. Unaudited Summary of Operating Data

				Thirteen Weeks Ended				Thirty-nine Weeks Ended
				October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010

Average number of tractors provided by
	owner-operators
		Truckload		2,531		2,508		2,478		2,482
		Intermodal		674		640		668		631

		Total		3,205		3,148		3,146		3,113

Truckload Revenues:
	Average operating revenues per loaded mile		$	3.10	$	2.65	$	2.93	$	2.52
	Average operating revenues per loaded mile,
		excluding fuel surcharges	$	2.57	$	2.34	$	2.43	$	2.22
	Average operating revenues per load		$	1,137	$	1,057	$	1,093	$	996
	Average operating revenues per load, excluding
		fuel surcharges	$	944	$	933	$	910	$	879
	Average length of haul (2)			367		399		374		395
	Number of loads			97,513		89,878		291,902		279,411

Brokerage Revenues:
	Average operating revenues per loaded mile (1)		$	2.49	$	2.35	$	2.38	$	2.02
	Average operating revenues per load (1)		$	1,455	$	1,389	$	1,393	$	1,266
	Average length of haul (1)(2)			585		591		586		626
	Number of loads (1)			30,236		25,391		82,529		74,661

Intermodal Revenues:
	Drayage (in thousands)		$	25,592	$	20,407	$	71,108	$	59,356
	Depot (in thousands)		$	2,470	$	1,889	$	7,464	$	5,861

	Total (in thousands)		$	28,062	$	22,296	$	78,572	$	65,217

	Average operating revenues per loaded mile		$	4.29	$	3.61	$	4.18	$	3.38
	Average operating revenues per loaded mile,
		excluding fuel surcharges	$	3.53	$	3.14	$	3.44	$	2.96
	Average operating revenues per load		$	318	$	288	$	314	$	295
	Average operating revenues per load, excluding
		fuel surcharges	$	262	$	250	$	258	$	258
	Number of loads			80,486		70,937		226,527		201,289

(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.