Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen Weeks Ended April 3, 2010

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Apr 29, 2010, 04:05 ET

WARREN, Mich., April 29 /PRNewswire-FirstCall/ -- Universal Truckload Services, Inc. (Nasdaq: UACL) today announced financial results for the thirteen weeks ended April 3, 2010.

For the thirteen weeks ended April 3, 2010, operating revenues increased 20.9%, or $24.0 million, to $139.0 million from $115.0 million for the thirteen weeks ended March 28, 2009. Included in operating revenues are fuel surcharges of $11.7 million and $7.9 million for the thirteen weeks ended April 3, 2010 and March 28, 2009, respectively. Net income increased by $1.9 million, to $2.1 million, or $0.13 per basic and diluted share for the thirteen weeks ended April 3, 2010, from $0.1 million, or $0.01 per basic and diluted share, for the thirteen weeks ended March 28, 2009. Included in net income for the thirteen weeks ended April 3, 2010 were $1.1 million, or $0.07 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 thirteen weeks ended March 28, 2009 were $0.5 million, or $0.03 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 for the thirteen weeks ended April 3, 2010 increased by 25.5% to $86.2 million from $68.7 million in the corresponding period of 2009. Included in truckload revenue for the thirteen weeks ended April 3, 2010 is $11.3 million of revenue from our acquisitions completed since the third quarter of 2009. Brokerage revenue for the thirteen weeks ended April 3, 2010 increased by 16.7% to $32.4 million from $27.8 million in the corresponding period of 2009. Included in brokerage revenue for the thirteen weeks ended April 3, 2010 is $7.0 million of revenue from our acquisitions completed since the third quarter of 2009. Intermodal revenue for the thirteen weeks ended April 3, 2010 increased by 10.1% to $20.4 million from $18.6 million in the corresponding period of 2009.

"We are beginning to see signs of improvement in our industrial sectors, especially within the metals market," stated Universal's President and CEO Don Cochran. "However, seasonal shipping patterns and bad weather have caused some breaks in momentum during the quarter. While equipment availability appears to be tightening, weak pricing still persists in the market. We have also completed four acquisitions in the last three quarters. These acquisitions are showing progress, but are not yet to the level of performance that we expect. As we begin to see business improve, concentrating on controlling costs at all levels remains key to returning to our expected performance levels."

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 Consolidated Statements of Income (In thousands, except per share data)
				Thirteen Weeks Ended
				April 3, 2010		March 28, 2009
Operating revenues:
	Truckload		$	86,211	$	68,715
	Brokerage			32,404		27,757
	Intermodal			20,429		18,554
		Total operating revenues		139,044		115,026
Operating expenses:
	Purchased transportation			105,407		86,085
	Commissions expense			8,979		7,602
	Other operating expense			3,414		2,385
	Selling, general, and administrative			12,752		11,841
	Insurance and claims			4,329		3,782
	Depreciation and amortization			2,693		2,562
		Total operating expenses		137,574		114,257
		Income from operations		1,470		769
Interest income (expense), net				24		(20)
Other non-operating income (expense)				1,896		(526)
		Income before provision for income taxes		3,390		223
Provision for income taxes				1,325		84
		Net income	$	2,065	$	139
Earnings per common share:
	Basic		$	0.13	$	0.01
	Diluted		$	0.13	$	0.01
Weighted average number of common shares outstanding:
	Basic			15,980		15,989
	Diluted			15,980		15,989

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

				April 3, 2010		December 31, 2009
Assets
	Cash and cash equivalents		$	4,480	$	953
	Marketable securities			17,716		15,721
	Accounts receivable – net			65,064		60,701
	Other current assets			10,574		12,249
		Total current assets		97,834		89,624
	Property and equipment – net			74,723		76,246
	Other long-term assets – net			36,139		35,741
		Total assets	$	208,696	$	201,611

Liabilities and shareholders' equity
	Total current liabilities		$	44,061	$	40,305
	Total long-term liabilities			5,974		6,881
		Total liabilities		50,035		47,186
		Total shareholders' equity		158,661		154,425
		Total liabilities and shareholders' equity	$	208,696	$	201,611

UNIVERSAL TRUCKLOAD SERVICES, INC. Summary of Operating Data (Unaudited)
				Thirteen Weeks Ended
				April 3, 2010		March 28, 2009

Average number of tractors provided by
	owner-operators
		Truckload		2,500		2,751
		Intermodal		619		723
		Total		3,119		3,474

Truckload Revenues:
	Average operating revenues per loaded mile (1)		$	2.34	$	2.35
	Average operating revenues per loaded mile, excluding fuel surcharges (1)
			$	2.08	$	2.14
	Average operating revenues per load (1)		$	926	$	957
	Average operating revenues per load, excluding fuel surcharges (1)
			$	823	$	870
	Average length of haul (1)(2)			396		406
	Number of loads (1)			93,118		71,839

Brokerage Revenues:
	Average operating revenues per loaded mile (1)		$	1.92	$	1.98
	Average operating revenues per load (1)		$	1,195	$	1,117
	Average length of haul (1)(2)			621		563
	Number of loads (1)			20,697		22,883

Intermodal Revenues:
	Drayage (in thousands)		$	18,559	$	16,550
	Depot (in thousands)		$	1,870	$	2,004

	Total (in thousands)		$	20,429	$	18,554

	Average operating revenues per loaded mile		$	3.13	$	3.61
	Average operating revenues per loaded mile, excluding fuel surcharges
			$	2.77	$	3.23
	Average operating revenues per load		$	302	$	288
	Average operating revenues per load, excluding fuel surcharges
			$	267	$	258
	Number of loads			61,507		57,422

(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 truckload and brokerage services and improve the comparability to our peer companies.
(2) Average length of haul is computed using loaded miles.