WARREN, Mich., July 28, 2016 /PRNewswire/ -- Universal
Logistics Holdings, Inc. (NASDAQ: ULH) today reported second
quarter 2016 net income of $9.0
million, or $0.32 per basic
and diluted share, on total operating revenues of $276.8 million. This compares to
$13.3 million, or $0.44 per basic and diluted share, during second
quarter 2015 on total operating revenues of $295.0 million.
Operating revenues from transportation services decreased
$17.4 million, including a decline of
$5.9 million in separately-identified
fuel surcharges, to $162.7 million
for the quarter ended July 2,
2016. This compares to $180.1
million for the same period last year. The reduction in
transportation services also reflects a 9.9% year-over-year
decrease in operating revenue per load, excluding fuel
surcharges. The declines in transportation services were
however partly offset by a 1.5% increase in the number of loads
hauled. During the quarter ended July
2, 2016, Universal hauled 158,283 transportation services
loads compared to 155,874 during the same period last
year.
Value-added services revenue was positively impacted by new
business awarded in the second half of 2015. Overall,
value-added services increased $3.1
million to $78.2 million in
the second quarter of 2016, compared to $75.1 million in the same period last year.
The increase however was partially offset by a decline in
value-added services supporting the heavy-truck market, where
operating revenues decreased by $7.4
million. Revenues from intermodal services declined by
$3.9 million to $35.9 million in the second quarter of 2016 from
$39.8 million during the same period
last year. The decline in intermodal services revenues
reflects a $3.0 million decrease in
revenues recognized on intermodal drayage services, of which
$2.2 million was attributable to a
decrease in fuel surcharges. The average operating revenue
per load, excluding fuel surcharges, decreased by 3.0% during the
second quarter of 2016, while the number of intermodal loads hauled
increased modestly by 0.5% compared to the same period last
year.
Consolidated income from operations decreased $6.1 million to $16.8
million, compared to $22.9
million in second quarter 2015, and EBITDA decreased 18.6%
to $25.9 million in second quarter
2016, compared to $31.8 million in
the same period last year. As a percentage of total operating
revenues, operating income and EBITDA margins for the second
quarter 2016 were 6.1% and 9.4%, respectively. These
profitability metrics compare to 7.8% and 10.8%, respectively, in
second quarter 2015.
A decline of $19.4 million in
operating revenues in Universal's transportation segment in the
second quarter of 2016 led to a decrease in income from operations
to $6.9 million, compared to
$9.2 million one year ago.
Income from operations in Universal's logistics segment, which
includes value-added and dedicated transportation services,
decreased $2.1 million to
$10.6 million in the second quarter
2016, from $12.7 million in the same
period last year.
"We've seen some positive momentum this quarter," commented
Jeff Rogers, Universal's Chief
Executive Officer. "In this challenging freight market, both
our transportation and intermodal services performed well in terms
of load volumes. Our value-added businesses, excluding where we
support the heavy-truck market, are also delivering solid
results. However, the impact on pricing from the weak freight
environment continues to negatively impact overall operating
revenues and income. Despite these challenges, we continue to
focus on providing great customer service, managing the costs we
can control and preparing to deliver positive results when the
overall freight market recovers."
Universal calculates and reports selected financial metrics in
connection with lending arrangements, or in an effort to isolate
and exclude the impact of non-operating expenses related to our
corporate development activities. These statistics are
described in more detail below in the section captioned "Non-GAAP
Financial Measures."
As of July 2, 2016, Universal held
cash and cash equivalents totaling $4.0
million and marketable securities totaling $14.3 million. Outstanding debt, net of
debt issue costs, totaled $228.7
million and capital expenditures totaled $10.0 million in the second quarter 2016.
Universal Logistics Holdings, Inc. also announced today that its
Board of Directors has declared a quarterly cash dividend of
$0.07 per share of common
stock. The dividend is payable to shareholders of record at
the close of business on August 8,
2016 and is expected to be paid on August 18, 2016.
Conference call:
We invite investors and analysts to our quarterly earnings
conference call. During the call, Jeff Rogers, Chief Executive Officer,
Jude Beres, Chief Financial Officer,
and Steven Fitzpatrick, Vice
President of Finance and Investor Relations, will discuss
Universal's second quarter 2016 financial performance, the demand
outlook in our key markets and other trends impacting our
business.
Quarterly Earnings Conference Call Dial-in Details:
Time:
|
10:00 AM
EDT
|
Date:
|
Friday, July 29,
2016
|
Call Toll
Free:
|
(866)
622-0924
|
International
Dial-in:
|
+1 (660)
422-4956
|
Conference
ID:
|
42833399
|
A replay of the conference call will be available beginning two
hours after the call through August 25,
2016, by calling (855) 859-2056 (toll free) or +1 (404)
537-3406 (toll) and using conference ID 42833399. The call will
also be available on investors.goutsi.com.
About Universal:
Universal Logistics Holdings, Inc. is a leading asset-light
provider of customized transportation and logistics solutions
throughout the United States, and
in Mexico, Canada and Colombia. We provide our customers with
supply chain solutions that can be scaled to meet their changing
demands and volumes. We offer our customers a broad array of
services across their entire supply chain, including
transportation, intermodal, and value-added services.
Forward Looking Statements
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
LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated
Statements of Income
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
2,
|
|
|
June
27,
|
|
|
July
2,
|
|
|
June
27,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
services
|
|
$
|
162,724
|
|
|
$
|
180,150
|
|
|
$
|
312,648
|
|
|
$
|
340,554
|
|
Value-added
services
|
|
|
78,206
|
|
|
|
75,105
|
|
|
|
153,760
|
|
|
|
145,323
|
|
Intermodal
services
|
|
|
35,883
|
|
|
|
39,752
|
|
|
|
70,799
|
|
|
|
72,691
|
|
Total operating
revenues
|
|
|
276,813
|
|
|
|
295,007
|
|
|
|
537,207
|
|
|
|
558,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation and equipment rent
|
|
|
132,012
|
|
|
|
149,085
|
|
|
|
253,677
|
|
|
|
281,165
|
|
Direct personnel and
related benefits
|
|
|
65,348
|
|
|
|
53,748
|
|
|
|
129,358
|
|
|
|
105,258
|
|
Commission
expense
|
|
|
8,379
|
|
|
|
9,543
|
|
|
|
16,451
|
|
|
|
18,361
|
|
Operating expense
(exclusive of items shown separately)
|
|
|
23,566
|
|
|
|
29,096
|
|
|
|
47,492
|
|
|
|
56,141
|
|
Occupancy
expense
|
|
|
7,974
|
|
|
|
6,607
|
|
|
|
15,697
|
|
|
|
13,434
|
|
Selling, general and
administrative
|
|
|
9,139
|
|
|
|
9,266
|
|
|
|
17,489
|
|
|
|
18,272
|
|
Insurance and
claims
|
|
|
4,486
|
|
|
|
5,875
|
|
|
|
8,658
|
|
|
|
10,045
|
|
Depreciation and
amortization
|
|
|
9,135
|
|
|
|
8,867
|
|
|
|
17,681
|
|
|
|
17,905
|
|
Total operating
expenses
|
|
|
260,039
|
|
|
|
272,087
|
|
|
|
506,503
|
|
|
|
520,581
|
|
Income from
operations
|
|
|
16,774
|
|
|
|
22,920
|
|
|
|
30,704
|
|
|
|
37,987
|
|
Interest expense,
net
|
|
|
(2,115)
|
|
|
|
(1,901)
|
|
|
|
(4,078)
|
|
|
|
(3,743)
|
|
Other non-operating
income
|
|
|
112
|
|
|
|
565
|
|
|
|
250
|
|
|
|
672
|
|
Income before
provision for income taxes
|
|
|
14,771
|
|
|
|
21,584
|
|
|
|
26,876
|
|
|
|
34,916
|
|
Provision for income
taxes
|
|
|
5,724
|
|
|
|
8,300
|
|
|
|
10,352
|
|
|
|
13,468
|
|
Net income
|
|
$
|
9,047
|
|
|
$
|
13,284
|
|
|
$
|
16,524
|
|
|
$
|
21,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.32
|
|
|
$
|
0.44
|
|
|
$
|
0.58
|
|
|
$
|
0.72
|
|
Diluted
|
|
$
|
0.32
|
|
|
$
|
0.44
|
|
|
$
|
0.58
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,414
|
|
|
|
29,979
|
|
|
|
28,408
|
|
|
|
29,985
|
|
Diluted
|
|
|
28,414
|
|
|
|
29,980
|
|
|
|
28,408
|
|
|
|
29,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.14
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated
Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
July
2,
2016
|
|
|
December
31,
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,020
|
|
|
$
|
12,930
|
|
Marketable
securities
|
|
|
14,254
|
|
|
|
13,431
|
|
Accounts receivable -
net
|
|
|
146,795
|
|
|
|
141,275
|
|
Other current
assets
|
|
|
36,888
|
|
|
|
35,204
|
|
Total current
assets
|
|
|
201,957
|
|
|
|
202,840
|
|
Property and equipment
- net
|
|
|
207,707
|
|
|
|
177,189
|
|
Other long-term assets
- net
|
|
|
127,329
|
|
|
|
129,470
|
|
Total
assets
|
|
$
|
536,993
|
|
|
$
|
509,499
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities,
excluding current maturities of capital lease obligations and
debt
|
|
$
|
115,525
|
|
|
$
|
91,700
|
|
Debt - net
|
|
|
228,739
|
|
|
|
233,414
|
|
Capital lease
obligations
|
|
|
245
|
|
|
|
1,981
|
|
Other long-term
liabilities
|
|
|
49,101
|
|
|
|
51,323
|
|
Total
liabilities
|
|
|
393,610
|
|
|
|
378,418
|
|
Total shareholders'
equity
|
|
|
143,383
|
|
|
|
131,081
|
|
Total liabilities and
shareholders' equity
|
|
$
|
536,993
|
|
|
$
|
509,499
|
|
UNIVERSAL
LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating
Data
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
2,
|
|
|
June
27,
|
|
|
July
2,
|
|
|
June
27,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Transportation
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average operating
revenues per loaded mile (a)
|
|
$
|
2.41
|
|
|
$
|
2.71
|
|
|
$
|
2.38
|
|
|
$
|
2.70
|
|
Average operating
revenues per loaded mile, excluding fuel
surcharges, where separately identifiable
(a)
|
|
$
|
2.26
|
|
|
$
|
2.47
|
|
|
$
|
2.24
|
|
|
$
|
2.45
|
|
Average operating
revenues per load (a)
|
|
$
|
903
|
|
|
$
|
1,034
|
|
|
$
|
899
|
|
|
$
|
1,015
|
|
Average operating
revenues per load, excluding fuel
surcharges, where separately identifiable
(a)
|
|
$
|
848
|
|
|
$
|
941
|
|
|
$
|
846
|
|
|
$
|
923
|
|
Average length of haul
(a) (b)
|
|
|
375
|
|
|
|
381
|
|
|
|
378
|
|
|
|
376
|
|
Number of loads
(a)
|
|
|
158,283
|
|
|
|
155,874
|
|
|
|
306,637
|
|
|
|
302,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value-Added
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of facilities
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
provided
|
|
|
17
|
|
|
|
17
|
|
|
|
17
|
|
|
|
17
|
|
Company
leased
|
|
|
34
|
|
|
|
31
|
|
|
|
34
|
|
|
|
31
|
|
Total
|
|
|
51
|
|
|
|
48
|
|
|
|
51
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drayage (in
thousands)
|
|
$
|
33,499
|
|
|
$
|
36,513
|
|
|
$
|
65,780
|
|
|
$
|
66,136
|
|
Domestic Intermodal
(in thousands)
|
|
|
401
|
|
|
|
441
|
|
|
|
852
|
|
|
|
1,250
|
|
Depot (in
thousands)
|
|
|
1,983
|
|
|
|
2,798
|
|
|
|
4,167
|
|
|
|
5,305
|
|
Total (in
thousands)
|
|
$
|
35,883
|
|
|
$
|
39,752
|
|
|
$
|
70,799
|
|
|
$
|
72,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average operating
revenues per loaded mile
|
|
$
|
5.74
|
|
|
$
|
5.68
|
|
|
$
|
5.39
|
|
|
$
|
5.41
|
|
Average operating
revenues per loaded mile, excluding fuel
surcharges,
where separately identifiable
|
|
$
|
5.17
|
|
|
$
|
4.82
|
|
|
$
|
4.83
|
|
|
$
|
4.51
|
|
Average operating
revenues per load
|
|
$
|
391
|
|
|
$
|
428
|
|
|
$
|
393
|
|
|
$
|
414
|
|
Average operating
revenues per load, excluding fuel
surcharges,
where separately identifiable
|
|
$
|
352
|
|
|
$
|
363
|
|
|
$
|
353
|
|
|
$
|
346
|
|
Number of
loads
|
|
|
85,701
|
|
|
|
85,250
|
|
|
|
167,196
|
|
|
|
159,566
|
|
Number of container
yards
|
|
|
11
|
|
|
|
10
|
|
|
|
11
|
|
|
|
10
|
|
(a)
|
Excludes operating
data from Universal Logistics Solutions 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. Also excludes final mile delivery and shuttle service
loads.
|
(b)
|
Average length of
haul is computed using loaded miles, excluding final mile delivery
and shuttle service loads.
|
(c)
|
Excludes storage
yards, terminals and office facilities.
|
UNIVERSAL
LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data
- Continued
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
2,
|
|
|
June
27,
|
|
|
July
2,
|
|
|
June
27,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Average
Headcount:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
5,336
|
|
|
|
4,474
|
|
|
|
5,254
|
|
|
|
4,389
|
|
Full time
equivalents
|
|
|
2,049
|
|
|
|
1,510
|
|
|
|
1,955
|
|
|
|
1,447
|
|
Total
|
|
|
7,385
|
|
|
|
5,984
|
|
|
|
7,209
|
|
|
|
5,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
tractors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provided by
owner-operators
|
|
|
3,166
|
|
|
|
3,303
|
|
|
|
3,172
|
|
|
|
3,282
|
|
Owned
|
|
|
1,189
|
|
|
|
839
|
|
|
|
1,151
|
|
|
|
841
|
|
Third party
lease
|
|
|
14
|
|
|
|
24
|
|
|
|
25
|
|
|
|
30
|
|
Total
|
|
|
4,369
|
|
|
|
4,166
|
|
|
|
4,348
|
|
|
|
4,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
169,286
|
|
|
$
|
188,724
|
|
|
$
|
326,832
|
|
|
$
|
355,957
|
|
Logistics
|
|
|
107,229
|
|
|
|
106,181
|
|
|
|
209,786
|
|
|
|
202,412
|
|
Other
|
|
|
298
|
|
|
|
102
|
|
|
|
589
|
|
|
|
199
|
|
|
|
$
|
276,813
|
|
|
$
|
295,007
|
|
|
$
|
537,207
|
|
|
$
|
558,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
6,919
|
|
|
$
|
9,166
|
|
|
$
|
12,807
|
|
|
$
|
15,516
|
|
Logistics
|
|
|
10,609
|
|
|
|
12,725
|
|
|
|
19,158
|
|
|
|
21,498
|
|
Other
|
|
|
(754)
|
|
|
|
1,029
|
|
|
|
(1,261)
|
|
|
|
973
|
|
|
|
$
|
16,774
|
|
|
$
|
22,920
|
|
|
$
|
30,704
|
|
|
$
|
37,987
|
|
Non-GAAP Financial Measures
In addition to providing consolidated financial statements based
on generally accepted accounting principles in the United States of America (GAAP), we are
providing additional financial measures that are not required by or
prepared in accordance with GAAP (non-GAAP). We present EBITDA as
supplemental measures of our performance. We define EBITDA as net
income plus (i) interest expense, net, (ii) provision for income
taxes and (iii) depreciation and amortization, and less other
non-operating income, or EBITDA. You are encouraged to evaluate
these adjustments and the reasons we consider them appropriate for
supplemental analysis.
In accordance with the requirements of Regulation G issued by
the Securities and Exchange Commission, we are presenting the most
directly comparable GAAP financial measure and reconciling the
non-GAAP financial measure to the comparable GAAP measure. Set
forth below is a reconciliation of net income, the most comparable
GAAP measure, to EBITDA for each of the periods indicated:
|
|
Thirteen Weeks
Ended
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
July
2,
|
|
|
June
27,
|
|
|
July
2,
|
|
|
June
27,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
( in
thousands)
|
|
|
( in
thousands)
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,047
|
|
|
$
|
13,284
|
|
|
$
|
16,524
|
|
|
$
|
21,448
|
|
Provision for income
taxes
|
|
|
5,724
|
|
|
|
8,300
|
|
|
|
10,352
|
|
|
|
13,468
|
|
Interest expense,
net
|
|
|
2,115
|
|
|
|
1,901
|
|
|
|
4,078
|
|
|
|
3,743
|
|
Depreciation and
amortization
|
|
|
9,135
|
|
|
|
8,867
|
|
|
|
17,681
|
|
|
|
17,905
|
|
Other non-operating
income
|
|
|
(112)
|
|
|
|
(565)
|
|
|
|
(250)
|
|
|
|
(672)
|
|
EBITDA
|
|
$
|
25,909
|
|
|
$
|
31,787
|
|
|
$
|
48,385
|
|
|
$
|
55,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
(a)
|
|
|
9.4
|
%
|
|
|
10.8
|
%
|
|
|
9.0
|
%
|
|
|
10.0
|
%
|
|
|
(a)
EBITDA margin is computed by dividing EBITDA by total operating
revenues for each of the periods indicated.
|
We present EBITDA because we believe it assists investors and
analysts in comparing our performance across reporting periods on a
consistent basis by excluding items that we do not believe are
indicative of our core operating performance.
EBITDA has limitations as an analytical tool. Some of these
limitations are:
- EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual
commitments;
- EBITDA does not reflect changes in, or cash requirements for,
our working capital needs;
- EBITDA does not reflect the significant interest expense, or
the cash requirements necessary to service interest or principal
payments, on our debts;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements; and
- Other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, EBITDA should not be considered in
isolation or as a substitute for performance measures calculated in
accordance with GAAP. We compensate for these limitations by
relying primarily on our GAAP results and EBITDA only
supplementally.
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SOURCE Universal Logistics Holdings, Inc.