Quantcast
Last updated on April 16, 2014 at 1:21 EDT

Universal Truckload Services, Inc. Reports First Quarter 2013 Financial Results

April 25, 2013

WARREN, Mich., April 25, 2013 /PRNewswire/ — Universal Truckload Services, Inc. (NASDAQ: UACL) announced financial results for the first quarter ended March 30, 2013. Basic and diluted earnings per share totaled $0.38 from net income of $11.4 million. This compares to net income of $14.4 million, or $0.48 per basic and diluted share, and pro forma net income of $10.4 million, or $0.35 per basic and diluted share, for the first quarter of 2012.

Income from operations increased 10.7%, to $19.3 million or 7.8% of operating revenues for the first quarter ended March 30, 2013, compared to $17.4 million or 6.8% of operating revenues for the first quarter of 2012. Our net income and earnings per share declined, however, due to the change in tax status of LINC Logistics Company, which we acquired in the fourth quarter of 2012. Our consolidated financial statements include LINC’s results for all periods presented. LINC was an “S” corporation for federal income tax purposes prior to October 1, 2012. As a result, our effective tax rate increased to 37.8% in the first quarter ended March 30, 2013, compared to 15.6% in the first quarter of 2012.

First quarter 2013 growth in demand for our intermodal and value-added services was offset by reduced demand for transportation services compared to the first quarter of 2012. Operating revenues totaled $248.1 million for the thirteen weeks ended March 30, 2013, an aggregate 3.1% decline from $256.0 million in the first quarter of 2012. Our intermodal services increased 31.8% and value-added services increased 5.6% in the first quarter of 2013, while transportation services decreased 10.0% compared to the same period one year earlier. Operating revenues from dedicated transportation routes were essentially flat, while transactional transportation business declined.

“Demand for our transportation services started slowly in 2013, which reflects decisions we undertook to shed certain under-performing sales channels, deferred demand from our alternative energy customers, recent economic trends, and unfavorable weather,” observed Scott Wolfe, Universal’s Chief Executive Officer. “Nevertheless, we continue to execute our plan for the transactional side of our business with a focus on enhancing our agent base, expanding awareness of Universal’s identity in the marketplace, and developing enterprise accounts. Concurrently, we are pleased with the continuing progress of our intermodal and value-added services business, which continued to expand in the first quarter of 2013, and which can offer attractive returns based on our unique supply chain capabilities and our ability to secure longer term contracts with customers.”

We calculate and report selected financial metrics in connection with lending arrangements, or 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.” Our EBITDA increased 11.3% to $24.3 million for the thirteen weeks ended March 30, 2013, from $21.8 million for the thirteen weeks ended March 31, 2012. Expressed as a percentage of operating revenues, first quarter 2013 EBITDA was 9.8%, compared to 8.5% for the first quarter of 2012. For the first quarter of 2012, trends in EBITDA are substantially similar to trends in income from operations.

As of March 30, 2013, Universal held cash and cash equivalents totaling $4.8 million and marketable securities totaling $10.4 million. Outstanding debt at the end of the first quarter of 2013 totaled $136.0 million.

Conference call:

We invite you to participate in a conference call on Monday, April 29, 2013 at 10:00 a.m. Eastern Time where management will discuss first quarter 2013 financial performance. Hosting the call will be Scott Wolfe, Chief Executive Officer, Don Cochran, President and David Crittenden, Chief Financial Officer.

To participate: Please call (877) 866-3199 (toll free) or (660) 422-4956 (toll) and provide conference ID 47990086.

To listen to an audio replay: Please call (855) 859-2056 (toll free) or (404) 537-3406 (toll) and enter conference ID 47990086, or locate the link in the investor page at: www.goutsi.com. Audio replay is available through May 29, 2013.

About Universal:

Universal Truckload Services, Inc. is a leading asset-light provider of customized transportation and logistics solutions throughout the United States, Mexico and Canada. 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, value-added, and intermodal services. Our customized solutions and flexible business model are designed to provide us with a highly variable cost structure.

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
                                                                                                                                                         --------------------

                                                                                                                                                              March 30,                                     March 31,

                                                                                                                                                                                2013                                        2012
                                                                                                                                                                                ----                                        ----

    Operating revenues:

       Transportation services                                                                                                                                              $166,927                                    $185,390

       Value-added services                                                                                                                                                   47,770                                      45,258

       Intermodal services                                                                                                                                                    33,412                                      25,344
                                                                                                                                                                              ------                                      ------

    Total operating revenues                                                                                                                                                 248,109                                     255,992

    Operating expenses:

       Purchased transportation and equipment rent                                                                                                                           134,514                                     145,091

       Direct personnel and related benefits                                                                                                                                  43,347                                      43,156

       Commission expense                                                                                                                                                      9,335                                      10,241

       Operating expense (exclusive of items shown separately)                                                                                                                19,160                                      17,736

       Occupancy expense                                                                                                                                                       4,962                                       4,984

       Selling, general and administrative                                                                                                                                     7,802                                       7,438

       Insurance and claims                                                                                                                                                    4,678                                       5,498

       Depreciation and amortization                                                                                                                                           5,060                                       4,453
                                                                                                                                                                               -----                                       -----

       Total operating expenses                                                                                                                                              228,858                                     238,597
                                                                                                                                                                             -------                                     -------

       Income from operations                                                                                                                                                 19,251                                      17,395

    Interest expense, net                                                                                                                                                     (1,102)                                       (796)

    Other non-operating income                                                                                                                                                   134                                         504
                                                                                                                                                                                 ---                                         ---

     Income before provision for income taxes                                                                                                                                 18,283                                      17,103

    Provision for income taxes                                                                                                                                                 6,909                                       2,664

     Net income                                                                                                                                                              $11,374                                     $14,439
                                                                                                                                                                             =======                                     =======

    Earnings per common share:

       Basic                                                                                                                                                                   $0.38                                       $0.48

       Diluted                                                                                                                                                                 $0.38                                       $0.48

    Weighted average number of common shares outstanding:

       Basic                                                                                                                                                                  30,054                                      30,065

       Diluted                                                                                                                                                                30,196                                      30,065

    Pre-merger dividends declared per common share:                                                                                                             $                  -                                       $1.00
                                                                                                                                                                ====================                                       =====

    Pro Forma earnings per common share - "C" corporation status:

       Pro Forma provision for income taxes due to LINC Logistics                                                                                              $                   -                                      $4,003

        Company conversion to "C" corporation

       Pro Forma net income                                                                                                                                                  $11,374                                     $10,436

       Earnings per common share:

       Basic                                                                                                                                                                   $0.38                                       $0.35

       Diluted                                                                                                                                                                 $0.38                                       $0.35
                                                         UNIVERSAL TRUCKLOAD SERVICES, INC.

                                                  Unaudited Condensed Consolidated Balance Sheets

                                                                   (In thousands)

                                                                                                 March 30,          December 31,

                                                                                                               2013                  2012
                                                                                                               ----                  ----

    Assets

       Cash and cash equivalents                                                                             $4,818                $2,554

       Marketable securities                                                                                 10,394                 9,962

       Accounts receivable - net                                                                            122,315               118,903

       Other current assets                                                                                  37,755                37,719
                                                                                                             ------                ------

       Total current assets                                                                                 175,282               169,138

       Property and equipment - net                                                                         125,866               127,791

       Other long-term assets - net                                                                          29,969                30,440
                                                                                                             ------                ------

    Total assets                                                                                           $331,117              $327,369
                                                                                                           ========              ========

    Liabilities and shareholders' equity

       Total current liabilities                                                                           $106,074              $103,717

       Total long-term liabilities                                                                          155,398               166,280
                                                                                                            -------               -------

       Total liabilities                                                                                    261,472               269,997

       Total shareholders' equity                                                                            69,645                57,372
                                                                                                             ------                ------

       Total liabilities and shareholders' equity                                                          $331,117              $327,369
                                                                                                           ========              ========
                                                                                                                 UNIVERSAL TRUCKLOAD SERVICES, INC.

                                                                                                                 Unaudited Summary of Operating Data

                                                                                                                                                                       Thirteen Weeks Ended
                                                                                                                                                                       --------------------

         March 30,                                                                    March 31,

                                                                                                                                                                                     2013                          2012
                                                                                                                                                                                     ----                          ----

    Average Headcount

                         Employees                                                                                                                                                  2,876                         2,493

                         Full time equivalents                                                                                                                                      2,083                         1,941

                              Total                                                                                                                                                 4,959                         4,434

    Average number of tractors

                         Provided by owner-operators                                                                                                                                3,372                         3,286

                         Owned                                                                                                                                                        685                           603

                         Third party lease                                                                                                                                             45                            40

                              Total                                                                                                                                                 4,102                         3,929

    Transportation Revenues:

                         Average operating revenues per loaded mile (a)                                                                                                             $2.69                         $2.70

                         Average operating revenues per loaded mile,

                         excluding fuel surcharges, where separately identifiable (a)                                                                                               $2.31                         $2.34

                         Average operating revenues per load (a)                                                                                                                     $997                          $987

                         Average operating revenues per load, excluding

                         fuel surcharges, where separately identifiable (a)                                                                                                          $855                          $857

                         Average length of haul (a) (b)                                                                                                                               370                           366

                         Number of loads (a)                                                                                                                                      151,041                       171,199

    Value Added Services:

                         Number of facilities (d)

                         Customer provided                                                                                                                                             16                            12

                         Company leased                                                                                                                                                28                            27
                                                                                                                                                                                      ---                           ---

                              Total                                                                                                                                                    44                            39

    Intermodal Revenues:

                         Drayage (in thousands)                                                                                                                                   $24,862                       $21,234

                         Domestic Intermodal (in thousands)                                                                                                                         5,948                         1,391

                         Depot (in thousands)                                                                                                                                       2,602                         2,719

                              Total (in thousands)                                                                                                                                $33,412                       $25,344

                         Average operating revenues per loaded mile (c)                                                                                                             $4.44                         $4.23

                         Average operating revenues per loaded mile,

                         excluding fuel surcharges, where separately identifiable (c)                                                                                               $3.55                         $3.42

                         Average operating revenues per load (c)                                                                                                                     $320                          $282

                         Average operating revenues per load, excluding

                         fuel surcharges, where separately identifiable (c)                                                                                                          $256                          $228

                         Number of loads (c)                                                                                                                                       77,657                        75,263

                         Number of container yards                                                                                                                                     11                            10

    (a)                   Excludes operating data from Universal Logistics Solutions, Inc., Universal Logistics
                          Solutions International, Inc., and Central Global Express, 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 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.

    (d)                  Excludes storage yards, terminals and office facilities.

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
                                        --------------------

                                             March 30,                             March 31,

                                                         2013                                  2012
                                                         ----                                  ----

                                          ( in thousands)

    EBITDA

       Net income                                     $11,374                               $14,439

       Provision
        for income
        taxes                                           6,909                                 2,664

       Interest
        expense,
        net                                             1,102                                   796

        Depreciation
        and
        amortization                                    5,060                                 4,453

       Other non-
        operating
        income                                           (134)                                 (504)
                                                         ----                                  ----

       EBITDA                                         $24,311                               $21,848
                                                      =======                               =======

       EBITDA
        margin (a)                                        9.8%                                  8.5%

                    (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.

SOURCE Universal Truckload Services, Inc.


Source: PR Newswire