EX-99.1 2 ulh-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img73119764_0.jpg 

Universal Logistics Holdings Reports Second Quarter 2024 Financial Results; Declares Dividend

-
Second Quarter 2024 Operating Revenues: $462.2 million, 12.0% increase
-
Second Quarter 2024 Operating Income: $47.1 million, 29.4% increase
-
Second Quarter 2024 Earnings Per Share: $1.17 per share, 30.0% increase
-
Declares Quarterly Dividend: $0.105 per share

Warren, MI – July 25, 2024 — Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated second quarter 2024 net income of $30.7 million, or $1.17 per basic and diluted share, on total operating revenues of $462.2 million. This compares to net income of $23.6 million, or $0.90 per basic and diluted share, during the second quarter 2023 on total operating revenues of $412.6 million.

In the second quarter 2024, Universal’s operating income increased $10.7 million to $47.1 million, compared to $36.4 million in the second quarter one year earlier. During the second quarter 2024, Universal revised the estimated useful life and salvage value of certain equipment, and these adjustments resulted in additional depreciation expense of $11.3 million during the period. As a percentage of operating revenue, operating margin for the second quarter 2024 was 10.2%, compared to 8.8% during the same period last year. EBITDA, a non-GAAP measure, increased $29.0 million during the second quarter 2024 to $84.8 million, compared to $55.8 million one year earlier. As a percentage of operating revenue, EBITDA margin for the second quarter 2024 was 18.4%, compared to 13.5% during the same period last year.

“Once again Universal delivered exceptional results in an otherwise turbulent transportation and logistics environment,” stated Universal’s CEO Tim Phillips. “Our diverse service offering across the entire supply chain continues to differentiate our business and deliver stand-out results in the space. Contract logistics led the way delivering double-digit operating margins for the past ten consecutive quarters, and this segment continues to have a robust pipeline of new opportunities. We also experienced favorable results in the trucking segment, bolstered by our specialized, heavy-haul solution, delivering sequential growth on both the top and bottom lines. Despite our successes, we have not lost sight of certain underperforming operations. We expect all our businesses to generate positive returns, and remain focused on gaining efficiencies and controlling costs to achieve those results. We are going to keep our foot on the gas, and continue delivering exceptional service to our customers, while making sound business decisions to ensure we are well positioned for future success.”

Segment Information:

Contract Logistics

-
Second Quarter 2024 Operating Revenues: $263.6 million, 26.2% increase
-
Second Quarter 2024 Operating Income: $52.9 million, 20.1% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, second quarter 2024 operating revenues increased 26.2% to $263.6 million, compared to $208.8 million for the same period last year. Second quarter 2024 revenues included $44.6 million attributable to our recently awarded specialty development project. At the end of both the second quarters 2024 and 2023, we managed 68 value-added programs. Included in contract logistics segment revenues were also $8.0 million in separately identified fuel surcharges from dedicated transportation services, compared to $8.6 million during the same period last year. Second quarter 2024 income from operations increased $20.1 million to $52.9 million, compared to $32.8 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment for the second quarter 2024 was 20.1%, compared to 15.7% during the same period last year.

 


 

Intermodal

-
Second Quarter 2024 Operating Revenues: $78.1 million, 14.8% decrease
-
Second Quarter 2024 Operating (Loss): $(8.3) million, (10.6)% operating margin

Operating revenues in the intermodal segment decreased 14.8% to $78.1 million in the second quarter 2024, compared to $91.6 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $10.9 million in separately identified fuel surcharges, compared to $13.6 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage, which totaled $8.1 million during the second quarter 2024, compared to $13.4 million one year earlier. Load volumes declined 4.1%, while the average operating revenue per load, excluding fuel surcharges, fell 5.9% on a year-over-year basis. In the second quarter 2024, the intermodal segment experienced an operating loss of $(8.3) million compared to an operating loss of $(0.2) million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the second quarter 2024 was (10.6)%, compared to (0.3)% one year earlier.

Trucking

-
Second Quarter 2024 Operating Revenues: $91.4 million, 12.6% increase
-
Second Quarter 2024 Operating Income: $4.4 million, 4.8% operating margin

In the trucking segment, second quarter 2024 operating revenues increased 12.6% to $91.4 million, compared to $81.2 million for the same period last year. Second quarter 2024 trucking segment revenues included $25.5 million of brokerage services, compared to $30.7 million during the same period last year. Also included in our trucking segment revenues were $5.7 million in separately identified fuel surcharges during the second quarter 2024, compared to $6.4 million in fuel surcharges during the same period last year. On a year-over-year basis, load volumes declined 11.1%; however, the average operating revenue per load, excluding fuel surcharges, increased 28.5%, supported by our specialty, heavy-haul wind business. Income from operations remained consistent at $4.4 million for both the second quarters of 2024 and 2023. As a percentage of revenue, operating margin in the trucking segment for the second quarter 2024 was 4.8% compared to 5.4% during the same period last year.

Company-managed Brokerage

-
Second Quarter 2024 Operating Revenues: $28.1 million, 4.9% decrease
-
Second Quarter 2024 Operating (Loss): $(2.2) million, (7.9)% operating margin

Second quarter 2024 operating revenues in the company-managed brokerage segment decreased 4.9% to $28.1 million compared to $29.6 million for the same period last year. Load volumes improved 20.1%; however, our average operating revenue per load, excluding fuel surcharges, decreased 21.9% on a year-over-year basis. In the second quarter 2024, the company-managed brokerage segment experienced an operating loss of $(2.2) million compared to an operating loss of $(0.8) million one year earlier. As a percentage of revenue, operating margin for the second quarter 2024 was (7.9)% compared to (2.7)% during the same period last year.

Cash Dividend

Universal Logistics Holdings, Inc. also announced today that its Board of Directors has declared a cash dividend of $0.105 per share of common stock. The dividend is payable to shareholders of record at the close of business on September 2, 2024 and is expected to be paid on October 1, 2024.

 


 

Other Matters

As of June 29, 2024, Universal held cash and cash equivalents totaling $7.5 million, and $11.6 million in marketable securities. Outstanding debt at the end of the second quarter 2024 was $487.8 million and capital expenditures totaled $77.1 million.

Universal calculates and reports selected financial metrics not only for purposes of our lending arrangements but also 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.”

Conference call:

We invite investors and analysts to our quarterly earnings conference call.

 

Quarterly Earnings Conference Call Dial-in Details:

Time:

10:00 a.m. Eastern Time

Date:

Friday, July 26, 2024

Call Toll Free:

(800) 836-8184

International Dial-in:

+1 (646) 357-8785

A replay of the conference call will be available through August 2, 2024, by calling (888) 660-6345 (toll free) or +1 (646) 517-4150 (toll) and using replay entry code 07642. The call will also be available on investors.universallogistics.com.

 

Source: Universal Logistics Holdings, Inc.

 

For Further Information:

Steven Fitzpatrick, Investor Relations

SFitzpatrick@UniversalLogistics.com

About Universal:

Universal Logistics Holdings, Inc. (“Universal”) is a holding company whose subsidiaries provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia. Our operating subsidiaries provide our customers with supply chain solutions that can be scaled to meet their changing demands. We offer our customers a broad array of services across their entire supply chain, including truckload, brokerage, intermodal, dedicated and value-added services. In this press release, the terms “us,” “we,” “our,” or the “Company” refer to Universal and its consolidated subsidiaries.

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 can be identified by words such as: “expect,” “anticipate,” “intend,” “plan,” “goal,” “prospect,” “seek,” “believe,” “targets,” “project,” “estimate,” “future,” “likely,” “may,” “should” and similar references to future periods. 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 Universal’s reports and filings with the Securities and Exchange Commission. Universal 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

 

 

 

June 29,

 

 

July 1,

 

 

June 29,

 

 

July 1,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Truckload services

 

$

66,876

 

 

$

51,860

 

 

$

108,906

 

 

$

98,261

 

Brokerage services

 

 

53,661

 

 

 

60,325

 

 

 

113,274

 

 

 

128,998

 

Intermodal services

 

 

78,069

 

 

 

91,585

 

 

 

154,784

 

 

 

202,611

 

Dedicated services

 

 

90,715

 

 

 

86,069

 

 

 

179,031

 

 

 

171,301

 

Value-added services

 

 

172,843

 

 

 

122,733

 

 

 

398,075

 

 

 

248,797

 

Total operating revenues

 

 

462,164

 

 

 

412,572

 

 

 

954,070

 

 

 

849,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation and equipment rent

 

 

137,295

 

 

 

139,879

 

 

 

261,928

 

 

 

295,964

 

Direct personnel and related benefits

 

 

135,495

 

 

 

138,046

 

 

 

276,300

 

 

 

277,138

 

Operating supplies and expenses

 

 

63,558

 

 

 

41,101

 

 

 

156,382

 

 

 

87,290

 

Commission expense

 

 

8,890

 

 

 

7,643

 

 

 

15,500

 

 

 

15,815

 

Occupancy expense

 

 

10,442

 

 

 

11,041

 

 

 

21,010

 

 

 

22,193

 

General and administrative

 

 

14,699

 

 

 

13,418

 

 

 

28,205

 

 

 

25,334

 

Insurance and claims

 

 

7,873

 

 

 

5,889

 

 

 

15,041

 

 

 

13,968

 

Depreciation and amortization

 

 

36,809

 

 

 

19,160

 

 

 

57,510

 

 

 

37,675

 

Total operating expenses

 

 

415,061

 

 

 

376,177

 

 

 

831,876

 

 

 

775,377

 

Income from operations

 

 

47,103

 

 

 

36,395

 

 

 

122,194

 

 

 

74,591

 

Interest expense, net

 

 

(6,883

)

 

 

(5,121

)

 

 

(12,962

)

 

 

(10,096

)

Other non-operating income

 

 

898

 

 

 

284

 

 

 

2,003

 

 

 

299

 

Income before income taxes

 

 

41,118

 

 

 

31,558

 

 

 

111,235

 

 

 

64,794

 

Provision for income taxes

 

 

10,384

 

 

 

7,992

 

 

 

28,044

 

 

 

16,352

 

Net income

 

$

30,734

 

 

$

23,566

 

 

$

83,191

 

 

$

48,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.17

 

 

$

0.90

 

 

$

3.16

 

 

$

1.84

 

Diluted

 

$

1.17

 

 

$

0.90

 

 

$

3.16

 

 

$

1.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

26,317

 

 

 

26,287

 

 

 

26,312

 

 

 

26,284

 

Diluted

 

 

26,352

 

 

 

26,308

 

 

 

26,341

 

 

 

26,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share:

 

$

0.105

 

 

$

0.105

 

 

$

0.210

 

 

$

0.210

 

 

 


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

June 29,
2024

 

 

December 31,
2023

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,486

 

 

$

12,511

 

Marketable securities

 

 

11,566

 

 

 

10,772

 

Accounts receivable - net

 

 

288,125

 

 

 

287,947

 

Other current assets

 

 

75,632

 

 

 

54,243

 

Total current assets

 

 

382,809

 

 

 

365,473

 

Property and equipment - net

 

 

658,022

 

 

 

561,088

 

Other long-term assets - net

 

 

431,225

 

 

 

326,962

 

Total assets

 

$

1,472,056

 

 

$

1,253,523

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

Current liabilities, excluding current maturities of debt

 

$

223,786

 

 

$

189,727

 

Debt - net

 

 

483,801

 

 

 

381,924

 

Other long-term liabilities

 

 

155,574

 

 

 

149,674

 

Total liabilities

 

 

863,161

 

 

 

721,325

 

Total shareholders' equity

 

 

608,895

 

 

 

532,198

 

Total liabilities and shareholders' equity

 

$

1,472,056

 

 

$

1,253,523

 

 

 


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data

 

 

 

Thirteen Weeks Ended

 

 

Twenty-six Weeks Ended

 

 

 

June 29,

 

 

July 1,

 

 

June 29,

 

 

July 1,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Contract Logistics Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Average number of value-added direct employees

 

 

5,230

 

 

 

5,569

 

 

 

5,355

 

 

 

5,532

 

Average number of value-added full-time equivalents

 

 

168

 

 

 

482

 

 

 

138

 

 

 

647

 

Number of active value-added programs

 

 

68

 

 

 

68

 

 

 

68

 

 

 

68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermodal Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Number of loads

 

 

108,326

 

 

 

112,925

 

 

 

213,363

 

 

 

235,224

 

Average operating revenue per load, excluding fuel surcharges

 

$

555

 

 

$

590

 

 

$

560

 

 

$

578

 

Average number of tractors

 

 

1,656

 

 

 

2,159

 

 

 

1,646

 

 

 

2,141

 

Number of depots

 

 

8

 

 

 

9

 

 

 

8

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucking Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Number of loads

 

 

40,620

 

 

 

45,717

 

 

 

82,311

 

 

 

90,572

 

Average operating revenue per load, excluding fuel surcharges

 

$

2,115

 

 

$

1,646

 

 

$

1,808

 

 

$

1,627

 

Average number of tractors

 

 

815

 

 

 

905

 

 

 

808

 

 

 

900

 

Average length of haul

 

 

390

 

 

 

382

 

 

 

396

 

 

 

390

 

 

 

 

 

 

 

 

 

 

 

 

 

Company-Managed Brokerage Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Number of loads (a)

 

 

21,396

 

 

 

17,814

 

 

 

42,952

 

 

 

37,770

 

Average operating revenue per load (a)

 

$

1,249

 

 

$

1,599

 

 

$

1,315

 

 

$

1,650

 

Average length of haul (a)

 

 

527

 

 

 

644

 

 

 

549

 

 

 

631

 

(a) Excludes operating data from freight forwarding division in order to improve the relevance of the statistical data related to our brokerage services and improve the comparability to our peer companies.

 


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data - Continued

(Dollars in thousands)

 

 

 

Thirteen Weeks Ended

 

 

Twenty-six Weeks Ended

 

 

 

June 29,

 

 

July 1,

 

 

June 29,

 

 

July 1,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating Revenues by Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Contract logistics

 

$

263,558

 

 

$

208,802

 

 

$

577,106

 

 

$

420,098

 

Intermodal

 

 

78,069

 

 

 

91,585

 

 

 

154,784

 

 

 

202,611

 

Trucking

 

 

91,440

 

 

 

81,243

 

 

 

161,095

 

 

 

160,958

 

Company-managed brokerage

 

 

28,142

 

 

 

29,595

 

 

 

59,142

 

 

 

63,551

 

Other

 

 

955

 

 

 

1,347

 

 

 

1,943

 

 

 

2,750

 

Total

 

$

462,164

 

 

$

412,572

 

 

$

954,070

 

 

$

849,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations by Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Contract logistics

 

$

52,901

 

 

$

32,789

 

 

$

134,367

 

 

$

60,570

 

Intermodal

 

 

(8,301

)

 

 

(246

)

 

 

(16,347

)

 

 

6,565

 

Trucking

 

 

4,384

 

 

 

4,423

 

 

 

8,053

 

 

 

8,212

 

Company-managed brokerage

 

 

(2,237

)

 

 

(786

)

 

 

(4,725

)

 

 

(1,160

)

Other

 

 

356

 

 

 

215

 

 

 

846

 

 

 

404

 

Total

 

$

47,103

 

 

$

36,395

 

 

$

122,194

 

 

$

74,591

 

 

 

 


 

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 and EBITDA margin, each a non-GAAP measure, as supplemental measures of our performance. We define EBITDA as net income plus (i) interest expense, net, (ii) income taxes, (iii) depreciation, and (iv) amortization. We define EBITDA margin as EBITDA as a percentage of total operating revenues. 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

 

 

 

June 29,

 

 

July 1,

 

 

June 29,

 

 

July 1,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

( in thousands)

 

 

( in thousands)

 

EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

30,734

 

 

$

23,566

 

 

$

83,191

 

 

$

48,442

 

Income tax expense

 

 

10,384

 

 

 

7,992

 

 

 

28,044

 

 

 

16,352

 

Interest expense, net

 

 

6,883

 

 

 

5,121

 

 

 

12,962

 

 

 

10,096

 

Depreciation

 

 

32,052

 

 

 

15,982

 

 

 

47,954

 

 

 

31,313

 

Amortization

 

 

4,757

 

 

 

3,178

 

 

 

9,556

 

 

 

6,362

 

EBITDA

 

$

84,810

 

 

$

55,839

 

 

$

181,707

 

 

$

112,565

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin (a)

 

 

18.4

%

 

 

13.5

%

 

 

19.0

%

 

 

13.2

%

(a) EBITDA margin is computed by dividing EBITDA by total operating revenues for each of the periods indicated.

We present EBITDA and EBITDA margin because we believe they assist 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 and EBITDA margin 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 only supplementally on EBITDA and EBITDA margin.