Universal Logistics : Reports Second Quarter 2021 Financial Results; Declares Dividend; Approves Stock Repurchase Plan

Universal Logistics Holdings Reports Second Quarter 2021 Financial Results; Declares Dividend; Approves Stock Repurchase Plan

• Second Quarter 2021 Operating Revenues: $422.8 million, 63.9% increase
• Second Quarter 2021 Operating Income: $31.3 million, 7.4% operating margin
• Second Quarter 2021 Earnings Per Share: $0.95 per share, includes $0.16 settlement gain
• Declares Quarterly Dividend: $0.105 per share

Warren, MI - July 29, 2021 - Universal Logistics Holdings, Inc. (NASDAQ: ULH), a leading asset-light provider of customized transportation and logistics solutions, today reported consolidated second quarter 2021 net income of $25.6 million, or $0.95 per basic and diluted share, on total operating revenues of $422.8 million. This compares to net income of $6.2 million, or $0.23 per basic and diluted share, during second quarter 2020 on total operating revenues of $258.0 million. Second quarter 2021 operating revenues represent Universal's highest quarterly operating revenues ever reported. The peak of the COVID-19 pandemic negatively impacted our results during the second quarter 2020, as a substantial portion of our customer operations were shuttered during the period. Second quarter 2021 results include a favorable legal settlement which resulted in a $5.7 million pre-tax gain, or $0.16 per share, which is included in other non-operating income. Second quarter 2021 results also include a $0.4 million pre- tax holding gain, or $0.01 per share, on marketable securities due to changes in fair value recognized in income compared to $0.9 million, or $0.02 per share, in the second quarter of 2020.

In the second quarter 2021, Universal's operating income increased $20.5 million to $31.3 million compared to operating income of $10.8 million in the second quarter one year earlier. As a percentage of operating revenue, operating margin for the second quarter 2021 was 7.4% compared to 4.2% during the same period last year. EBITDA, a non-GAAP measure, increased $23.6 million during the second quarter 2021 to $53.7 million, compared to $30.2 million one year earlier. As a percentage of operating revenue, EBITDA margin for the second quarter 2021 was 12.7% compared to 11.7% during the same period last year.

"Universal's momentum carried into the second quarter as we continue to report solid financial results," stated Tim Phillips, Universal's Chief Executive Officer. "Our second quarter success is directly attributable to the incredible efforts of our people. While there is still room for improvement in our financial performance, I'd be remiss without congratulating Team Universal on a job well done. As I look forward to the second half of the year, I am cautiously optimistic. While I am bullish on North American auto production over the longer term, the persistent chip shortage and an extremely tight labor market continue to adversely impact our contract logistics operations. And although there remains an incredible amount of freight opportunities across the country, the lack of fluidity in the supply chain and constraints on the availability of equipment and drivers remains a headwind. We know the challenges in front of us, and I remain confident in our ability to deliver excellent customer service and strong results."

As of July 3, 2021, Universal held cash and cash equivalents totaling $13.1 million, and $7.9 million in marketable securities. Outstanding debt at the end of the second quarter 2021 was $433.5 million and capital expenditures totaled $12.0 million. For the full-year 2021, Universal is projecting total operating revenues between $1.6 billion and $1.7 billion and an operating margin between 7.0% and 8.0%.

Segment Information:

Contract Logistics

• Second Quarter 2021 Operating Revenues: $154.8 million, 115.6% increase
• Second Quarter 2021 Operating Income: $15.9 million, 10.3% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, recent program awards and a more stable operating environment led to improved performance during the period. Second quarter 2021 operating revenues in the contract logistics segment increased $83.0 million, or 115.6 % to $154.8 million compared to $71.8 million for the same period last year. During the second quarter of 2020, the contract logistics segment was adversely impacted by the shutdown of North American automotive and heavy-duty truck manufacturing during much of the quarter from the COVID-19 pandemic. At the end of the second quarter 2021, we managed 60 value- added programs compared to 55 such programs at the end of the second quarter 2020. On a year-over-year basis, dedicated transportation load volumes increased 170.6% as automotive production resumed. Income from operations in the contract logistics segment for the second quarter 2021 increased $15.2 million to $15.9 million compared to $0.8 million during the same period last year. Included in the contract logistics segment second quarter 2021 results were approximately $5.0 million of losses incurred in connection with a recent program launch. As a percentage of revenue, operating margin in the contract logistics segment for the second quarter 2021 was 10.3% compared to 1.0% during the same period last year.

Intermodal

• Second Quarter 2021 Operating Revenues: $106.6 million, 28.6% increase
• Second Quarter 2021 Operating Income: $6.2 million, 5.8% operating margin

Operating revenues in the intermodal segment increased $23.7 million to $106.6 million in the second quarter 2021, compared to $82.9 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $11.7 million in separately identified fuel surcharges compared to $8.2 million during the same period last year. Intermodal segment load volumes increased 8.1% and the average operating revenue per load, excluding fuel surcharges, increased an additional 5.8%. Additionally, assessorial and other non-line haul charges increased $5.9 million during the current period. Second quarter 2021 income from operations in the intermodal segment increased $1.4 million to $6.2 million compared to $4.7 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the second quarter 2021 was 5.8% compared to 5.7% during the same period last year.

Trucking

• Second Quarter 2021 Operating Revenues: $99.8 million, 58.4% increase
• Second Quarter 2021 Operating Income: $6.5 million, 6.5% operating margin

In the trucking segment, which includes agent-based and company-managed trucking operations, second quarter 2021 operating revenues increased 58.4% to $99.8 million compared to $63.0 million for the same period last year. Included in our trucking segment revenues for the recently completed quarter were $6.0 million in separately identified fuel surcharges compared to $2.9 million in such surcharges during the same period last year. On a year- over-year basis, trucking segment load volumes increased 47.7% and the average operating revenue per load, excluding fuel surcharges, increased an additional 3.5% during the same period. Income from operations in the trucking segment in the second quarter 2021 increased 80.4% to $6.5 million compared to $3.6 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the second quarter 2021 was 6.5% compared to 5.7% during the same period last year.

Company-managed Brokerage

• Second Quarter 2021 Operating Revenues: $60.4 million, 51.3% increase
• Second Quarter 2021 Operating Income: $2.4 million, 4.0% operating margin

Second quarter 2021 operating revenues in the company-managed brokerage segment increased 51.3% to $60.4 million compared to $39.9 million for the same period last year. Company-managed brokerage segment average operating revenue per load, excluding fuel surcharges, increased 71.4%; however, load volumes decreased 6.1% on a year-over-year basis. Second quarter 2021 income from operations in the company-managed brokerage segment was $2.4 million which compares to $1.7 million during the same period last year. As a percentage of revenue, operating margin in the company-managed brokerage segment for the second quarter 2021 was 4.0% compared to 4.3% one year earlier.

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 6, 2021 and is expected to be paid on October 4, 2021.

Stock Repurchase Program

Universal's Board also authorized a new stock repurchase program under which the company may purchase up to an additional 621,622 shares of the company's common stock from time to time through the open market in accordance with Rule 10b-18 under the Securities Exchange Act of 1934 or in privately negotiated transactions. As of July 29, 2021, there were 378,378 remaining shares authorized under the plan approved in June 2014, which results in a total of 1,000,000 shares authorized for repurchase by the company.

Other Matters

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 30, 2021

Call Toll Free: [phone]

International Dial-in:[phone]

Conference ID: 3590296

A replay of the conference call will be available beginning two hours after the call through August 6, 2021, by calling [phone] (toll free) or [phone] (toll) and using conference ID 3590296. The call will also be available on investors.universallogistics.com.

Source: Universal Logistics Holdings, Inc.

For Further Information:

Steven Fitzpatrick, Investor Relations

[e-mail]

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 truckload, brokerage, intermodal, dedicated, 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 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 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 3,				July 4,					July 3,				July 4,
				2021						2020					2021					2020
Operating revenues:
Truckload services	$	58,880			$	40,523				$	118,582		$	99,421
Brokerage services				102,532						62,782					199,451					148,681
Intermodal services		106,601						82,881					210,318					193,203
Dedicated services				50,396						18,031					98,357					49,610
Value-added services		104,374						53,763					211,307					149,227
Total operating revenues				422,783						257,980					838,015					640,142
Operating expenses:
Purchased transportation and equipment rent		198,031						128,611					387,363					309,467
Direct personnel and related benefits				111,000						57,592					218,552					154,980
Operating supplies and expenses		32,713						16,962					69,805					47,657
Commission expense				8,570						5,024					15,894					12,194
Occupancy expense		9,389						8,984					17,569					17,815
General and administrative				9,693						6,580					18,869					15,504
Insurance and claims		5,735						4,858					12,070					9,730
Depreciation and amortization				16,339						18,530					35,424					38,048
Total operating expenses		391,470						247,141					775,546					605,395
Income from operations				31,313						10,839					62,469					34,747
Interest expense, net		(2,926	)				(3,438)			(6,089)				(7,647)
Other non-operating income (loss)				6,079						811					7,085					(2,794	)
Income before income taxes		34,466						8,212					63,465					24,306
Provision for income taxes				8,862						2,044					16,205					5,975
Net income	$	25,604					$	6,168				$	47,260				$	18,331
Earnings per common share:
Basic			$	0.95					$	0.23				$	1.76				$	0.68
Diluted	$	0.95			$	0.23				$	1.75		$	0.68
Weighted average number of common shares
outstanding:
Basic				26,919						26,919					26,918					27,074
Diluted		26,936						26,919					26,933					27,074
Dividends declared per common share:	$	0.105			$	-				$	0.210		$	0.105