Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen Weeks and Twenty-six Weeks Ended June 30, 2012

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Jul 26, 2012, 06:00 ET

WARREN, Mich., July 26, 2012 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen weeks and twenty-six weeks ended June 30, 2012.

For the thirteen weeks ended June 30, 2012, operating revenues increased 2.8%, or $5.1 million, to $185.1 million from $180.0 million for the thirteen weeks ended July 2, 2011, and our operating ratio improved 70 basis points to 95.9% for the thirteen weeks ended June 30, 2012 from 96.6% for the thirteen weeks ended July 2, 2011. Included in operating revenues are fuel surcharges of $24.3 million and $25.0 million for the thirteen weeks ended June 30, 2012 and July 2, 2011, respectively. Income from operations increased by 22.9%, or $1.4 million, to $7.5 million for the thirteen weeks ended June 30, 2012 from $6.1 million for the thirteen weeks ended July 2, 2011, and net income increased by $1.1 million, to $5.0 million, or $0.32 per basic and diluted share, for the thirteen weeks ended June 30, 2012, from $3.9 million, or $0.25 per basic and diluted share, for the thirteen weeks ended July 2, 2011. Included in net income for the thirteen weeks ended June 30, 2012 were $0.3 million, or $0.02 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 June 30, 2012 decreased by 0.7% to $110.0 million from $110.8 million in the corresponding period of 2011. Brokerage revenue for the thirteen weeks ended June 30, 2012 increased by 9.2% to $46.0 million from $42.2 million in the corresponding period of 2011. Intermodal revenue for the thirteen weeks ended June 30, 2012 increased by 7.6% to $29.0 million from $27.0 million in the corresponding period of 2011. Included in intermodal revenue for the thirteen weeks ended June 30, 2012 is $1.1 million of revenue from our acquisition completed in the second quarter of 2012.

For the twenty-six weeks ended June 30, 2012, operating revenues increased 6.9%, or $23.3 million, to $360.9 million from $337.6 million for the twenty-six weeks ended July 2, 2011, and our operating ratio improved 70 basis points to 96.4% for the twenty-six weeks ended June 30, 2012 from 97.1% for the twenty-six weeks July 2, 2011. Included in operating revenues are fuel surcharges of $46.3 million and $42.9 million for the twenty-six weeks ended June 30, 2012 and July 2, 2011, respectively. Income from operations increased by 29.7%, or $2.9 million, to $12.9 million for the twenty-six weeks ended June 30, 2012 from $9.9 million for the year ended July 2, 2011, and net income increased by $1.8 million, to $8.6 million, or $0.55 per basic and diluted share, for the twenty-six weeks ended June 30, 2012, from $6.8 million, or $0.44 per basic and diluted share, for the twenty-six weeks ended July 2, 2011. Included in net income for the twenty-six weeks ended June 30, 2012 were $0.5 million, or $0.03 per basic and diluted share, of after-tax gains on the sales of marketable securities classified as available for sale compared to $0.5 million, or $0.04 per basic and diluted share, for the twenty-six weeks ended July, 2 2011.

Universal's truckload revenue for the twenty-six weeks ended June 30, 2012 increased by 2.9% to $214.1 million from $208.1 million in the corresponding period of 2011. Included in truckload revenue for the twenty-six weeks ended June 30, 2012 is $1.3 million of revenue from our acquisition completed in the first quarter of 2011. Brokerage revenue for the twenty-six weeks ended June 30, 2012 increased by 17.0% to $92.4 million from $79.0 million in the corresponding period of 2011. Included in brokerage revenue for the twenty-six weeks ended June 30, 2012 is $0.7 million of revenue from our acquisition completed in the first quarter of 2011. Intermodal revenue for the twenty-six weeks ended June 30, 2012 increased by 7.7% to $54.4 million from $50.5 million in the corresponding period of 2011. Included in intermodal revenue for the twenty-six weeks ended June 30, 2012 is $1.1 million of revenue from our acquisition completed in the second quarter of 2012.

"The second quarter of 2012 proved to be another good quarter for Universal," stated Don Cochran, Universal's President and CEO. "Our revenue growth in the second quarter of 2012 was driven by an increase in the number of loads hauled and our average revenue per loaded mile for our brokerage and intermodal operations compared to the second quarter of 2011. Excluding fuel surcharges, we were able to improve our operating ratio by 80 basis points and increase our income from operations by $1.4 million or 22.9%. In addition, excluding the effect of gains on marketable securities, we were able to increase our earnings per share from $0.25 per share in the second quarter of 2011 to $0.30 per share in the second quarter of 2012, a 20.0% increase. We remain cautiously optimistic about the 2^nd half of 2012 and believe we will see an uptick in revenue for the third quarter based on the seasonality of the freight we haul, and will continue to look for ways to improve our profitability in a challenging market."

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				Twenty-six Weeks Ended
				June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Operating revenues:
	Truckload		$	109,980	$	110,798	$	214,101	$	208,111
	Brokerage			46,032		42,165		92,415		78,970
	Intermodal			29,043		26,998		54,387		50,510
		Total operating revenues		185,055		179,961		360,903		337,591
Operating expenses:
	Purchased transportation			141,803		139,631		276,873		260,090
	Commissions expense			10,551		10,675		20,625		20,581
	Other operating expense			4,225		3,235		8,243		6,939
	Selling, general, and administrative			14,059		13,223		28,257		25,946
	Insurance and claims			3,908		4,189		8,050		8,326
	Depreciation and amortization			2,998		2,897		5,966		5,768
		Total operating expenses		177,544		173,850		348,014		327,650
		Income from operations		7,511		6,111		12,889		9,941
Interest income, net				1		27		13		44
Other non-operating income				669		168		1,173		1,158
		Income before provision for income taxes		8,181		6,306		14,075		11,143
Provision for income taxes				3,183		2,371		5,479		4,309
		Net income	$	4,998	$	3,935	$	8,596	$	6,834
Earnings per common share:
	Basic		$	0.32	$	0.25	$	0.55	$	0.44
	Diluted		$	0.32	$	0.25	$	0.55	$	0.44
Weighted average number of common shares outstanding:
	Basic			15,494		15,614		15,516		15,623
	Diluted			15,494		15,614		15,516		15,623
Dividends paid per common share:			$	—	$	—	$	1.00	$	—

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

				June 30, 2012		December 31, 2011
Assets
	Cash and cash equivalents		$	226	$	878
	Marketable securities			14,201		16,059
	Accounts receivable – net			80,750		74,776
	Other current assets			15,186		17,627
		Total current assets		110,363		109,340
	Property and equipment – net			91,516		89,985
	Other long-term assets – net			29,892		29,619
		Total assets	$	231,771	$	228,944

Liabilities and shareholders' equity
	Total current liabilities		$	65,168	$	55,650
	Total long-term liabilities			12,347		11,158
		Total liabilities		77,515		66,808
		Total shareholders' equity		154,256		162,136
		Total liabilities and shareholders' equity	$	231,771	$	228,944

UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data

				Thirteen Weeks Ended			Twenty-six Weeks Ended
				June 30, 2012	July 2, 2011		June 30, 2012		July 2, 2011

Average number of tractors provided by
	owner-operators
		Truckload		2,429	2,490		2,421		2,451
		Intermodal		689	675		654		665

		Total		3,118	3,165		3,075		3,116

Truckload Revenues:
	Average operating revenues per loaded mile		$	3.19	2.95	$	3.14	$	2.84
	Average operating revenues per loaded mile,
		excluding fuel surcharges	$	2.63	2.41	$	2.60	$	2.37
	Average operating revenues per load		$	1,130	1,095	$	1,115	$	1,071
	Average operating revenues per load, excluding
		fuel surcharges	$	934	895	$	924	$	892
	Average length of haul (2)			355	372		356		377
	Number of loads			97,333	101,193		191,939		194,389

Brokerage Revenues:
	Average operating revenues per loaded mile (1)		$	2.57	2.43	$	2.55	$	2.32
	Average operating revenues per load (1)		$	1,449	1,401	$	1,445	$	1,357
	Average length of haul (1) (2)			565	577		568		586
	Number of loads (1)			27,936	26,710		57,126		52,293

Intermodal Revenues:
	Drayage (in thousands)		$	24,476	24,612	$	45,710	$	45,516
	Domestic Intermodal (in thousands)		$	1,956	—	$	3,347		—
	Depot (in thousands)		$	2,611	2,386	$	5,330	$	4,994

	Total (in thousands)		$	29,043	26,998	$	54,387	$	50,510

	Average operating revenues per loaded mile (3)		$	4.53	4.36	$	4.39	$	4.12
	Average operating revenues per loaded mile,
		excluding fuel surcharges (3)	$	3.65	3.52	$	3.54	$	3.39
	Average operating revenues per load (3)		$	304	319	$	293	$	312
	Average operating revenues per load, excluding
		fuel surcharges (3)	$	244	258	$	236	$	256
	Number of loads (3)			80,580	77,048		155,843		146,041

(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.
(3)	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.