Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen Weeks and Twenty-six Weeks Ended July 2, 2011

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Jul 28, 2011, 04:10 ET

WARREN, Mich., July 28, 2011 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen weeks and twenty-six weeks ended July 2, 2011.

For the thirteen weeks ended July 2, 2011, operating revenues increased 16.6%, or $25.7 million, to $180.0 million from $154.3 million for the thirteen weeks ended July 3, 2010, and our operating ratio improved 80 basis points to 96.6% for the thirteen weeks ended July 2, 2011 from 97.4% for the thirteen weeks ended July 3, 2010. Included in operating revenues are fuel surcharges of $25.0 million and $14.6 million for the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. Income from operations increased by 50.2%, or $2.0 million, to $6.1 million for the thirteen weeks ended July 2, 2011 from $4.1 million for the thirteen weeks ended July 3, 2010; however, net income decreased by $0.6 million, to $3.9 million, or $0.25 per basic and diluted share, for the thirteen weeks ended July 2, 2011, from $4.6 million, or $0.29 per basic and diluted share, for the thirteen weeks ended July 3, 2010. Included in net income during the thirteen weeks ended July 3, 2010 were $2.1 million, or $0.13 per basic and diluted share, of after-tax gains on the sales of marketable securities classified as available for sale.

Universal's truckload revenue for the thirteen weeks ended July 2, 2011 increased by 14.2% to $110.8 million from $97.1 million in the corresponding period of 2010. Included in truckload revenue for the thirteen weeks ended July 2, 2011 is $3.5 million of revenue from our acquisition completed in the first quarter of 2011. Brokerage revenue for the thirteen weeks ended July 2, 2011 increased by 21.3% to $42.2 million from $34.8 million in the corresponding period of 2010. Intermodal revenue for the thirteen weeks ended July 2, 2011 increased by 20.0% to $27.0 million from $22.5 million in the corresponding period of 2010.

For the twenty-six weeks ended July 2, 2011, operating revenues increased 15.1%, or $44.2 million, to $337.6 million from $293.3 million for the twenty-six weeks ended July 3, 2010, and our operating ratio improved 100 basis points to 97.1% for the twenty-six weeks ended July 2, 2011 from 98.1% for the twenty-six weeks ended July 3, 2010. Included in operating revenues are fuel surcharges of $42.9 million and $26.3 million for the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. Income from operations increased by 79.5%, or $4.4 million, to $9.9 million for the twenty-six weeks ended July 2, 2011 from $5.5 million for the twenty-six weeks ended July 3, 2010, while net income increased by $0.2 million, to $6.8 million, or $0.44 per basic and diluted share, for the twenty-six weeks ended July 2, 2011, from $6.6 million, or $0.42 per basic and diluted share, for the twenty-six weeks ended July 3, 2010. Included in net income for the twenty-six weeks ended July 2, 2011 were $0.5 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 twenty-six weeks ended July 3, 2010.

Universal's truckload revenue for the twenty-six weeks ended July 2, 2011 increased by 13.6% to $208.1 million from $183.3 million in the corresponding period of 2010. Included in truckload revenue for the twenty-six weeks ended July 2, 2011 is $3.9 million of revenue from our acquisitions completed since the first quarter of 2011. Brokerage revenue for the twenty-six weeks ended July 2, 2011 increased by 17.6% to $79.0 million from $67.2 million in the corresponding period of 2010. Intermodal revenue for the twenty-six weeks ended July 2, 2011 increased by 17.7% to $50.5 million from $42.9 million in the corresponding period of 2010.

"Our rates have improved over the first quarter of 2011 and over the second quarter of 2010," stated Universal's President and CEO Don Cochran. "Improved rates have helped us grow our fleet of owner-operators, as well as procuring additional capacity in our brokerage businesses. Through the end of 2011, we expect to continue to gain capacity and improve the services we deliver to our customers, Owner-Operators and Agents, while continuing to focus on controlling cost."

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				Twenty-six Weeks Ended
				July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Operating revenues:
	Truckload		$	110,798	$	97,055	$	208,111	$	183,266
	Brokerage			42,165		34,757		78,970		67,161
	Intermodal			26,998		22,492		50,510		42,921
		Total operating revenues		179,961		154,304		337,591		293,348
Operating expenses:
	Purchased transportation			139,631		116,894		260,090		222,301
	Commissions expense			10,675		9,882		20,581		18,861
	Other operating expense			3,235		3,835		6,939		7,249
	Selling, general, and administrative			13,223		13,132		25,946		25,884
	Insurance and claims			4,189		3,801		8,326		8,130
	Depreciation and amortization			2,897		2,692		5,768		5,385
		Total operating expenses		173,850		150,236		327,650		287,810
		Income from operations		6,111		4,068		9,941		5,538
Interest income (expense), net				27		26		44		50
Other non-operating income				168		3,699		1,158		5,595
		Income before provision for income taxes		6,306		7,793		11,143		11,183
Provision for income taxes				2,371		3,220		4,309		4,545
		Net income	$	3,935	$	4,573	$	6,834	$	6,638
Earnings per common share:
	Basic		$	0.25	$	0.29	$	0.44	$	0.42
	Diluted		$	0.25	$	0.29	$	0.44	$	0.42
Weighted average number of common shares outstanding:
	Basic			15,614		15,980		15,623		15,980
	Diluted			15,614		15,980		15,623		15,980


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

				July 2, 2011		December 31, 2010
Assets
	Cash and cash equivalents		$	1,667	$	6,261
	Marketable securities			15,447		15,041
	Accounts receivable – net			81,301		68,833
	Other current assets			14,234		11,362
		Total current assets		112,649		101,497
	Property and equipment – net			79,601		78,206
	Other long-term assets – net			31,852		32,345
		Total assets	$	224,102	$	212,048

Liabilities and shareholders' equity
	Total current liabilities		$	47,291	$	42,294
	Total long-term liabilities			6,820		5,543
		Total liabilities		54,111		47,837
		Total shareholders' equity		169,991		164,211
		Total liabilities and shareholders' equity	$	224,102	$	212,048


UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data

				Thirteen Weeks Ended					Twenty-six Weeks Ended
				July 2, 2011		July 3, 2010			July 2, 2011				July 3, 2010

Average number of tractors provided by
	owner-operators
		Truckload		2,490		2,439			2,451				2,470
		Intermodal		675		635			665				627

		Total		3,165		3,074			3,116				3,097

Truckload Revenues:
	Average operating revenues per loaded mile		$	2.95	$	2.58	$		2.84		$		2.46
	Average operating revenues per loaded mile,
		excluding fuel surcharges	$	2.41	$	2.26	$		2.37		$		2.17
	Average operating revenues per load		$	1,095	$	1,007	$		1,071		$		967
	Average operating revenues per load, excluding
		fuel surcharges	$	895	$	882	$		892		$		853
	Average length of haul (2)			372		389			377				393
	Number of loads			101,193		96,415			194,389				189,533

Brokerage Revenues:
	Average operating revenues per loaded mile (1)		$	2.43	$	1.92	$		2.32		$		1.87
	Average operating revenues per load (1)		$	1,401	$	1,247	$		1,357		$		1,203
	Average length of haul (1)(2)			577		650			586				643
	Number of loads (1)			26,710		24,721			52,293				49,270

Intermodal Revenues:
	Drayage (in thousands)		$	24,612	$	20,390		$		45,516		$		38,950
	Depot (in thousands)		$	2,386	$	2,102		$		4,994		$		3,971

	Total (in thousands)		$	26,998	$	22,492		$		50,510		$		42,921

	Average operating revenues per loaded mile		$	4.36	$	3.40		$		4.12		$		3.27
	Average operating revenues per loaded mile,
		excluding fuel surcharges	$	3.52	$	2.98		$		3.39		$		2.88
	Average operating revenues per load		$	319	$	296		$		312		$		299
	Average operating revenues per load, excluding
		fuel surcharges	$	258	$	259		$		256		$		263
	Number of loads			77,048		68,845				146,041				130,352

(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.