Universal Logistics Holdings Reports Third Quarter 2023 Financial Results; Declares Dividend

Third Quarter 2023 Operating Revenues: $421.3 million, 16.7% decreaseThird Quarter 2023 Operating Income: $36.8 million, 47.3% decreaseThird Quarter 2023 Earnings Per Share: $0.88 per share, 52.2% decreaseDeclares Quarterly Dividend: $0.105 per shareWARREN, Mich., Oct. 26, 2023 /PRNewswire/ — Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated third quarter 2023 net income of $23.0 million, or $0.88 per basic and diluted share, on total operating revenues of $421.3 million. This compares to net income of $48.5 million, or $1.84 per basic and diluted share, during third quarter 2022 on total operating revenues of $505.7 million.

In the third quarter 2023, Universal’s operating income decreased $33.0 million to $36.8 million, compared to $69.8 million in the third quarter one year earlier. As a percentage of operating revenue, operating margin for the third quarter 2023 was 8.7%, compared to 13.8% during the same period last year. EBITDA, a non-GAAP measure, decreased $27.6 million during the third quarter 2023 to $56.7 million, compared to $84.4 million one year earlier. As a percentage of operating revenue, EBITDA margin for the third quarter 2023 was 13.5%, compared to 16.7% during the same period last year.
“Although our individual operating segments experienced varied results, Universal as a whole delivered a solid financial performance for the third quarter of 2023,” stated Universal’s CEO Tim Phillips. “In this extremely challenging freight environment, depressed volumes and low rates continue to exert downward pressure on the results of our intermodal and company-managed brokerage segments. And while our trucking segment experienced similar macro-level factors, the strong performance in our wind-energy business enhanced the overall financial results in this segment. The highlight of Universal’s third quarter was the recurring, strong performance in our contract logistics segment. Although we are acutely aware of the risks posed by on-going union labor disruptions, our contract logistics solutions continue to be in high demand by our OEM customers in automotive and other industries. We believe that Universal’s diversified service offerings continue to differentiate us in the market. We remain committed to delivering long-term value to our customers and to our shareholders, and we are extremely grateful for the thousands of Universal employees who get the job done.”
Segment Information:
Contract Logistics
Third Quarter 2023 Operating Revenues: $208.1 million, 0.7% decreaseThird Quarter 2023 Operating Income: $35.1 million, 16.9% operating marginIn the contract logistics segment, which includes our value-added and dedicated services, third quarter 2023 operating revenues decreased 0.7% to $208.1 million, compared to $209.5 million for the same period last year.  At the end of the third quarter 2023, we managed 73 value-added programs compared to 63 at the end of the third quarter 2022. Included in contract logistics segment revenues were $9.1 million in separately identified fuel surcharges from dedicated transportation services, compared to $11.3 million during the same period last year. Third quarter 2023 income from operations decreased $0.3 million to $35.1 million, compared to $35.4 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment was 16.9% for both the third quarters 2023 and 2022, the segment’s highest operating margin on record.
Intermodal
Third Quarter 2023 Operating Revenues: $86.6 million, 43.9% decreaseThird Quarter 2023 Operating (Loss): $(4.3) million, (5.0)% operating marginOperating revenues in the intermodal segment decreased 43.9% to $86.6 million in the third quarter 2023, compared to $154.4 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $12.7 million in separately identified fuel surcharges, compared to $26.4 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage, which totaled $9.9 million during the third quarter 2023, compared to $31.3 million one year earlier. The average operating revenue per load, excluding fuel surcharges, decreased 24.7% and load volumes fell an additional 11.8% on a year-over-year basis. In the third quarter 2023, the intermodal segment experienced an operating loss of $4.3 million compared to income from operations of $28.1 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the third quarter 2023 was (5.0)%, compared to 18.2% one year earlier.
Trucking
– Third Quarter 2023 Operating Revenues: $97.1 million, 2.5% decrease- Third Quarter 2023 Operating Income: $6.6 million, 6.8% operating marginIn the trucking segment, third quarter 2023 operating revenues decreased 2.5% to $97.1 million, compared to $99.6 million for the same period last year. Third quarter 2023 trucking segment revenues included $28.8 million of brokerage services, compared to $43.1 million during the same period last year. Also included in our trucking segment revenues were $6.3 million in separately identified fuel surcharges during the third quarter 2023, compared to $9.1 million in fuel surcharges during the same period last year. On a year-over-year basis, the average operating revenue per load, excluding fuel surcharges, increased 13.3% while load volumes declined 13.1%. Income from operations in the third quarter 2023 increased $1.8 million to $6.6 million compared to $4.8 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the third quarter 2023 was 6.8% compared to 4.8% during the same period last year.
Company-managed Brokerage
Third Quarter 2023 Operating Revenues: $28.1 million, 30.8% decreaseThird Quarter 2023 Operating (Loss): $(1.1) million, (3.8)% operating marginThird quarter 2023 operating revenues in the company-managed brokerage segment decreased 30.8% to $28.1 million compared to $40.6 million for the same period last year. On a year-over-year basis, average operating revenue per load and load volumes in the company-managed brokerage segment decreased 11.1% and 12.3%, respectively. Third quarter 2023 operating losses in the company-managed brokerage segment were $(1.1) million which compares to $1.1 million of operating income during the same period last year. As a percentage of revenue, operating margin for the third quarter 2023 was (3.8)% compared to 2.7% during the same period last year.
Cash Dividend
Universal Logistics Holdings, Inc. also announced today that its Board of Directors 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 December 4, 2023 and is expected to be paid on January 2, 2024.
Other Matters 
As of September 30, 2023, Universal held cash and cash equivalents totaling $16.8 million, and $10.5 million in marketable securities. Outstanding debt at the end of the third quarter 2023 was $392.0 million, and capital expenditures totaled $112.3 million, including $80.0 million for the acquisition of a terminal in Compton, Los Angeles County, California.
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, October 27, 2023
Call Toll Free:
(877) 270-2148
International Dial-in:
+1 (412) 902-6510
A replay of the conference call will be available through November 3, 2023, by calling (877) 344-7529 (toll free) or +1 (412) 317-0088 (toll) and using encore replay code 2772793. The call will also be available on investors.universallogistics.com.
About Universal:
Universal Logistics Holdings, Inc. (“Universal”) is a holding company that owns subsidiaries engaged in providing a variety of customized transportation and logistics solutions throughout the United States, and in Mexico, Canada and Colombia.  Our operating subsidiaries provide customers with supply chain solutions that can be scaled to meet their changing demands and volumes. Universal’s consolidated subsidiaries offer customers a broad array of services across the 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
Thirty-nine Weeks Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Operating revenues:
Truckload services
$
69,598
$
58,107
$
167,858
$
176,651
Brokerage services
56,894
83,687
185,892
292,789
Intermodal services
86,630
154,391
289,241
468,869
Dedicated services
86,701
86,613
258,003
241,551
Value-added services
121,428
122,894
370,225
376,875
Total operating revenues
421,251
505,692
1,271,219
1,556,735
Operating expenses:
Purchased transportation and equipment rent
147,470
208,870
443,434
668,216
Direct personnel and related benefits
134,866
127,125
412,004
389,966
Operating supplies and expenses
43,060
44,734
130,351
132,886
Commission expense
8,334
10,632
24,149
31,412
Occupancy expense
10,913
10,150
33,106
30,345
General and administrative
13,633
13,617
38,967
36,382
Insurance and claims
6,828
5,745
20,795
16,925
Depreciation and amortization
19,386
15,048
57,061
58,333
Total operating expenses
384,490
435,921
1,159,867
1,364,465
Income from operations
36,761
69,771
111,352
192,270
Interest expense, net
(6,495)
(4,490)
(16,590)
(10,842)
Other non-operating income (loss)
588
(454)
885
(324)
Income before income taxes
30,854
64,827
95,647
181,104
Provision for income taxes
7,807
16,347
24,159
45,917
Net income
$
23,047
$
48,480
$
71,488
$
135,187
Earnings per common share:
Basic
$
0.88
$
1.84
$
2.72
$
5.10
Diluted
$
0.88
$
1.84
$
2.72
$
5.09
Weighted average number of common shares outstanding:
Basic
26,286
26,278
26,284
26,533
Diluted
26,310
26,309
26,311
26,551
Dividends declared per common share:
$
0.105
$
0.105
$
0.315
$
0.315
 
UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
September 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
16,811
$
47,181
Marketable securities
10,491
10,000
Accounts receivable – net
307,452
350,720
Other current assets
54,467
51,751
Total current assets
389,221
459,652
Property and equipment – net
533,951
391,154
Other long-term assets – net
336,104
352,872
Total assets
$
1,259,276
$
1,203,678
Liabilities and shareholders’ equity
Current liabilities, excluding current maturities of debt
$
217,094
$
221,598
Debt – net
387,209
378,500
Other long-term liabilities
144,818
156,650
Total liabilities
749,121
756,748
Total shareholders’ equity
510,155
446,930
Total liabilities and shareholders’ equity
$
1,259,276
$
1,203,678
 
UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Summary of Operating Data
Thirteen Weeks Ended
Thirty-nine Weeks Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Contract Logistics Segment:
Average number of value-added direct employees
5,439
4,968
5,501
5,064
Average number of value-added full-time equivalents
300
1,226
631
1,384
Number of active value-added programs
73
63
73
63
Intermodal Segment:
Number of loads
119,792
135,800
355,016
435,923
Average operating revenue per load, excluding fuel surcharges
$
547
$
726
$
567
$
706
Average number of tractors
2,027
2,269
2,102
2,185
Number of depots
9
10
9
10
Trucking Segment:
Number of loads
43,996
50,614
134,568
154,479
Average operating revenue per load, excluding fuel surcharges
$
2,033
$
1,794
$
1,759
$
1,799
Average number of tractors
879
896
893
899
Average length of haul
382
388
388
397
Company-Managed Brokerage Segment:
Number of loads (a)
18,535
21,141
56,305
68,453
Average operating revenue per load (a)
$
1,475
$
1,659
$
1,593
$
1,960
Average length of haul (a)
601
608
621
593
(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
Thirty-nine Weeks Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
Operating Revenues by Segment:
Contract logistics
$
208,129
$
209,507
$
628,228
$
618,426
Intermodal
86,630
154,391
289,241
468,869
Trucking
97,085
99,619
258,043
303,649
Company-managed brokerage
28,102
40,615
91,652
160,940
Other
1,305
1,560
4,055
4,851
Total
$
421,251
$
505,692
$
1,271,219
$
1,556,735
Income from Operations by Segment:
Contract logistics
$
35,103
$
35,400
$
95,673
$
88,300
Intermodal
(4,324)
28,148
2,241
72,526
Trucking
6,558
4,791
14,770
21,821
Company-managed brokerage
(1,070)
1,079
(2,230)
9,097
Other
494
353
898
526
Total
$
36,761
$
69,771
$
111,352
$
192,270
 
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
Thirty-nine Weeks Ended
September 30, 2023
October 1, 2022
September 30, 2023
October 1, 2022
( in thousands)
( in thousands)
EBITDA
Net income
$
23,047
$
48,480
$
71,488
$
135,187
Income tax expense
7,807
16,347
24,159
45,917
Interest expense, net
6,495
4,490
16,590
10,842
Depreciation
16,208
11,498
47,521
47,658
Amortization
3,178
3,550
9,540
10,675
EBITDA
$
56,735
$
84,365
$
169,298
$
250,279
EBITDA margin (a)
13.5
%
16.7
%
13.3
%
16.1
%
(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; andOther 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.

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SOURCE Universal Logistics Holdings, Inc. Third Quarter 2023 Operating Revenues: $421.3 million, 16.7% decreaseThird Quarter 2023 Operating Income: $36.8 million, 47.3% decreaseThird Quarter 2023 Earnings Per Share: $0.88 per share, 52.2% decreaseDeclares Quarterly Dividend: $0.105 per share

WARREN, Mich., Oct. 26, 2023 /PRNewswire/ — Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated third quarter 2023 net income of $23.0 million, or $0.88 per basic and diluted share, on total operating revenues of $421.3 million. This compares to net income of $48.5 million, or $1.84 per basic and diluted share, during third quarter 2022 on total operating revenues of $505.7 million.

In the third quarter 2023, Universal’s operating income decreased $33.0 million to $36.8 million, compared to $69.8 million in the third quarter one year earlier. As a percentage of operating revenue, operating margin for the third quarter 2023 was 8.7%, compared to 13.8% during the same period last year. EBITDA, a non-GAAP measure, decreased $27.6 million during the third quarter 2023 to $56.7 million, compared to $84.4 million one year earlier. As a percentage of operating revenue, EBITDA margin for the third quarter 2023 was 13.5%, compared to 16.7% during the same period last year.

“Although our individual operating segments experienced varied results, Universal as a whole delivered a solid financial performance for the third quarter of 2023,” stated Universal’s CEO Tim Phillips. “In this extremely challenging freight environment, depressed volumes and low rates continue to exert downward pressure on the results of our intermodal and company-managed brokerage segments. And while our trucking segment experienced similar macro-level factors, the strong performance in our wind-energy business enhanced the overall financial results in this segment. The highlight of Universal’s third quarter was the recurring, strong performance in our contract logistics segment. Although we are acutely aware of the risks posed by on-going union labor disruptions, our contract logistics solutions continue to be in high demand by our OEM customers in automotive and other industries. We believe that Universal’s diversified service offerings continue to differentiate us in the market. We remain committed to delivering long-term value to our customers and to our shareholders, and we are extremely grateful for the thousands of Universal employees who get the job done.”

Segment Information:

Contract Logistics

Third Quarter 2023 Operating Revenues: $208.1 million, 0.7% decreaseThird Quarter 2023 Operating Income: $35.1 million, 16.9% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, third quarter 2023 operating revenues decreased 0.7% to $208.1 million, compared to $209.5 million for the same period last year.  At the end of the third quarter 2023, we managed 73 value-added programs compared to 63 at the end of the third quarter 2022. Included in contract logistics segment revenues were $9.1 million in separately identified fuel surcharges from dedicated transportation services, compared to $11.3 million during the same period last year. Third quarter 2023 income from operations decreased $0.3 million to $35.1 million, compared to $35.4 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment was 16.9% for both the third quarters 2023 and 2022, the segment’s highest operating margin on record.

Intermodal

Third Quarter 2023 Operating Revenues: $86.6 million, 43.9% decreaseThird Quarter 2023 Operating (Loss): $(4.3) million, (5.0)% operating margin

Operating revenues in the intermodal segment decreased 43.9% to $86.6 million in the third quarter 2023, compared to $154.4 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $12.7 million in separately identified fuel surcharges, compared to $26.4 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage, which totaled $9.9 million during the third quarter 2023, compared to $31.3 million one year earlier. The average operating revenue per load, excluding fuel surcharges, decreased 24.7% and load volumes fell an additional 11.8% on a year-over-year basis. In the third quarter 2023, the intermodal segment experienced an operating loss of $4.3 million compared to income from operations of $28.1 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the third quarter 2023 was (5.0)%, compared to 18.2% one year earlier.

Trucking

– Third Quarter 2023 Operating Revenues: $97.1 million, 2.5% decrease- Third Quarter 2023 Operating Income: $6.6 million, 6.8% operating margin

In the trucking segment, third quarter 2023 operating revenues decreased 2.5% to $97.1 million, compared to $99.6 million for the same period last year. Third quarter 2023 trucking segment revenues included $28.8 million of brokerage services, compared to $43.1 million during the same period last year. Also included in our trucking segment revenues were $6.3 million in separately identified fuel surcharges during the third quarter 2023, compared to $9.1 million in fuel surcharges during the same period last year. On a year-over-year basis, the average operating revenue per load, excluding fuel surcharges, increased 13.3% while load volumes declined 13.1%. Income from operations in the third quarter 2023 increased $1.8 million to $6.6 million compared to $4.8 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the third quarter 2023 was 6.8% compared to 4.8% during the same period last year.

Company-managed Brokerage

Third Quarter 2023 Operating Revenues: $28.1 million, 30.8% decreaseThird Quarter 2023 Operating (Loss): $(1.1) million, (3.8)% operating margin

Third quarter 2023 operating revenues in the company-managed brokerage segment decreased 30.8% to $28.1 million compared to $40.6 million for the same period last year. On a year-over-year basis, average operating revenue per load and load volumes in the company-managed brokerage segment decreased 11.1% and 12.3%, respectively. Third quarter 2023 operating losses in the company-managed brokerage segment were $(1.1) million which compares to $1.1 million of operating income during the same period last year. As a percentage of revenue, operating margin for the third quarter 2023 was (3.8)% compared to 2.7% during the same period last year.

Cash Dividend

Universal Logistics Holdings, Inc. also announced today that its Board of Directors 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 December 4, 2023 and is expected to be paid on January 2, 2024.

Other Matters 

As of September 30, 2023, Universal held cash and cash equivalents totaling $16.8 million, and $10.5 million in marketable securities. Outstanding debt at the end of the third quarter 2023 was $392.0 million, and capital expenditures totaled $112.3 million, including $80.0 million for the acquisition of a terminal in Compton, Los Angeles County, California.

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, October 27, 2023

Call Toll Free:

(877) 270-2148

International Dial-in:

+1 (412) 902-6510

A replay of the conference call will be available through November 3, 2023, by calling (877) 344-7529 (toll free) or +1 (412) 317-0088 (toll) and using encore replay code 2772793. The call will also be available on investors.universallogistics.com.

About Universal:

Universal Logistics Holdings, Inc. (“Universal”) is a holding company that owns subsidiaries engaged in providing a variety of customized transportation and logistics solutions throughout the United States, and in Mexico, Canada and Colombia.  Our operating subsidiaries provide customers with supply chain solutions that can be scaled to meet their changing demands and volumes. Universal’s consolidated subsidiaries offer customers a broad array of services across the 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

Thirty-nine Weeks Ended

September 30,
2023

October 1,
2022

September 30,
2023

October 1,
2022

Operating revenues:

Truckload services

$

69,598

$

58,107

$

167,858

$

176,651

Brokerage services

56,894

83,687

185,892

292,789

Intermodal services

86,630

154,391

289,241

468,869

Dedicated services

86,701

86,613

258,003

241,551

Value-added services

121,428

122,894

370,225

376,875

Total operating revenues

421,251

505,692

1,271,219

1,556,735

Operating expenses:

Purchased transportation and equipment rent

147,470

208,870

443,434

668,216

Direct personnel and related benefits

134,866

127,125

412,004

389,966

Operating supplies and expenses

43,060

44,734

130,351

132,886

Commission expense

8,334

10,632

24,149

31,412

Occupancy expense

10,913

10,150

33,106

30,345

General and administrative

13,633

13,617

38,967

36,382

Insurance and claims

6,828

5,745

20,795

16,925

Depreciation and amortization

19,386

15,048

57,061

58,333

Total operating expenses

384,490

435,921

1,159,867

1,364,465

Income from operations

36,761

69,771

111,352

192,270

Interest expense, net

(6,495)

(4,490)

(16,590)

(10,842)

Other non-operating income (loss)

588

(454)

885

(324)

Income before income taxes

30,854

64,827

95,647

181,104

Provision for income taxes

7,807

16,347

24,159

45,917

Net income

$

23,047

$

48,480

$

71,488

$

135,187

Earnings per common share:

Basic

$

0.88

$

1.84

$

2.72

$

5.10

Diluted

$

0.88

$

1.84

$

2.72

$

5.09

Weighted average number of common shares outstanding:

Basic

26,286

26,278

26,284

26,533

Diluted

26,310

26,309

26,311

26,551

Dividends declared per common share:

$

0.105

$

0.105

$

0.315

$

0.315

 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

September 30,
2023

December 31,
2022

Assets

Cash and cash equivalents

$

16,811

$

47,181

Marketable securities

10,491

10,000

Accounts receivable – net

307,452

350,720

Other current assets

54,467

51,751

Total current assets

389,221

459,652

Property and equipment – net

533,951

391,154

Other long-term assets – net

336,104

352,872

Total assets

$

1,259,276

$

1,203,678

Liabilities and shareholders’ equity

Current liabilities, excluding current maturities of debt

$

217,094

$

221,598

Debt – net

387,209

378,500

Other long-term liabilities

144,818

156,650

Total liabilities

749,121

756,748

Total shareholders’ equity

510,155

446,930

Total liabilities and shareholders’ equity

$

1,259,276

$

1,203,678

 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data

Thirteen Weeks Ended

Thirty-nine Weeks Ended

September 30,
2023

October 1,
2022

September 30,
2023

October 1,
2022

Contract Logistics Segment:

Average number of value-added direct employees

5,439

4,968

5,501

5,064

Average number of value-added full-time equivalents

300

1,226

631

1,384

Number of active value-added programs

73

63

73

63

Intermodal Segment:

Number of loads

119,792

135,800

355,016

435,923

Average operating revenue per load, excluding fuel surcharges

$

547

$

726

$

567

$

706

Average number of tractors

2,027

2,269

2,102

2,185

Number of depots

9

10

9

10

Trucking Segment:

Number of loads

43,996

50,614

134,568

154,479

Average operating revenue per load, excluding fuel surcharges

$

2,033

$

1,794

$

1,759

$

1,799

Average number of tractors

879

896

893

899

Average length of haul

382

388

388

397

Company-Managed Brokerage Segment:

Number of loads (a)

18,535

21,141

56,305

68,453

Average operating revenue per load (a)

$

1,475

$

1,659

$

1,593

$

1,960

Average length of haul (a)

601

608

621

593

(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

Thirty-nine Weeks Ended

September 30,
2023

October 1,
2022

September 30,
2023

October 1,
2022

Operating Revenues by Segment:

Contract logistics

$

208,129

$

209,507

$

628,228

$

618,426

Intermodal

86,630

154,391

289,241

468,869

Trucking

97,085

99,619

258,043

303,649

Company-managed brokerage

28,102

40,615

91,652

160,940

Other

1,305

1,560

4,055

4,851

Total

$

421,251

$

505,692

$

1,271,219

$

1,556,735

Income from Operations by Segment:

Contract logistics

$

35,103

$

35,400

$

95,673

$

88,300

Intermodal

(4,324)

28,148

2,241

72,526

Trucking

6,558

4,791

14,770

21,821

Company-managed brokerage

(1,070)

1,079

(2,230)

9,097

Other

494

353

898

526

Total

$

36,761

$

69,771

$

111,352

$

192,270

 

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

Thirty-nine Weeks Ended

September 30,
2023

October 1,
2022

September 30,
2023

October 1,
2022

( in thousands)

( in thousands)

EBITDA

Net income

$

23,047

$

48,480

$

71,488

$

135,187

Income tax expense

7,807

16,347

24,159

45,917

Interest expense, net

6,495

4,490

16,590

10,842

Depreciation

16,208

11,498

47,521

47,658

Amortization

3,178

3,550

9,540

10,675

EBITDA

$

56,735

$

84,365

$

169,298

$

250,279

EBITDA margin (a)

13.5

%

16.7

%

13.3

%

16.1

%

(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; andOther 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-logistics-holdings-reports-third-quarter-2023-financial-results-declares-dividend-301969240.html

SOURCE Universal Logistics Holdings, Inc.

 

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