WARREN, Mich., Oct. 23, 2014 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) reported today third quarter net income of $13.1 million, or $0.44 per basic and diluted share on total operating revenue of $302.1 million. This compares to net income of $13.7 million, or $0.46 per basic and diluted share, on total operating revenues of $261.7 million during the third quarter of 2013. Total operating revenues increased 15.5% and earnings per share declined $0.02 compared to the prior year, reflecting a different mix of transportation and logistics segment business and corporate charges unrelated to operating activities.
Operating revenues from transportation services increased $15.9 million, or 8.8%, to $196.8 million in the quarter ended September 27, 2014, from the comparable period last year, due to a 6.2% year-over-year increase in loads and continuing strength in pricing. Value-added services revenues increased $21.2 million in the most recent quarter. However, revenues from subsidiaries delivering these services that have been included in consolidated financial results for more than one year declined 6.9%, or $3.3 million, due to the conclusion of certain customer operations. Revenues from intermodal services increased 10.0%, to $36.2 million from $32.9 million in the third quarter of 2013. The $3.3 million net increase in revenues from intermodal services includes a $4.1 million increase in our intermodal drayage services.
In the aggregate, income from operations increased 2.2% to $23.0 million, compared to $22.5 million in the third quarter of 2013. Income from operations in our transportation segment increased 23.7% to $10.2 million or 5.0% of segment operating revenues for the third quarter of 2014, which compares to $8.3 million or 4.5% of segment operating revenues for the third quarter of 2013. Income from operations in our logistics segment, which includes value-added services and dedicated transportation services, decreased 9.1% to $14.0 million or 14.3% of operating revenues for the third quarter of 2014. This compares to $15.4 million or 19.2% of operating revenues one year earlier.
"Universal's truckload and intermodal businesses met our revenue expectations in the third quarter, owing to favorable load count and pricing trends, and they achieved quarter-over-quarter margin improvements," according to Jeff Rogers, Executive Vice President. "In our logistics segment, we are focused on three priorities: enhancing and further penetrating existing customer relationships, improving the profitability of our dedicated transportation services, and continuing to develop domestic and international opportunities in our sales pipeline."
We calculate and report selected financial metrics in connection with lending arrangements, and also to isolate and separately identify the impact of corporate development activities, which can include non-operating transaction costs and amortization of intangible assets recognized as the result of prior acquisitions. These statistics are described in more detail below in the section captioned "Non-GAAP Financial Measures."
For the thirteen weeks ended September 27, 2014, our EBITDA increased 15.8% to $31.5 million, from $27.2 million for the thirteen weeks ended September 27, 2013. Expressed as a percentage of operating revenues, third quarter 2014 EBITDA remained unchanged at 10.4% compared the third quarter of 2013. Trends in EBITDA expressed as a percentage of operating revenues are substantially similar to trends in income from operations, excluding amortization of acquisition-related intangibles.
As of September 27, 2014, we held cash and cash equivalents totaling $10.0 million and marketable securities totaling $12.3 million. Outstanding debt totaled $238.4 million and obligations pursuant to capital leases were valued at $3.6 million.
Universal Truckload Services, Inc. also announced today that our Board of Directors has declared a quarterly cash dividend of $0.07 per share of common stock. The dividend is payable to shareholders of record at the close of business on November 3, 2014 and is expected to be paid on November 13, 2014.
Conference call:
We invite analysts and investors to participate in a conference call on Friday, October 24, 2014 at 10:00 AM ET. During the call, we will discuss Universal's third quarter 2014 financial performance, the current demand outlook in key markets we serve, and trends impacting our business.
Dial-in details:
Call Toll Free: (866) 622-0924
International Dial-in: +1 (660) 422-4956
Conference ID: 11057654
A replay of the conference will be available two hours after the call through November 20, 2014, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 11057654. Additionally, the call will be available on investors.goutsi.com.
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.
Forward Looking Statements
Some of the statements contained in this press release might be considered forward-looking statements. These statements identify prospective information. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. These forward-looking statements are subject to a number of factors that may cause actual results to differ materially from the expectations described. Additional information about the factors that may adversely affect these forward-looking statements is contained in the Company's reports and filings with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.
UNIVERSAL TRUCKLOAD SERVICES, INC. Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data) Thirteen Weeks Ended Thirty-nine Weeks Ended -------------------- ----------------------- September 27, September 28, September 27, September 28, 2014 2013 2014 2013 ---- ---- ---- ---- Operating revenues: Transportation services $196,777 $180,847 $574,098 $527,213 Value-added services 69,170 47,936 214,659 146,887 Intermodal services 36,181 32,880 100,284 99,844 ------ ------ ------- ------ Total operating revenues 302,128 261,663 889,041 773,944 Operating expenses: Purchased transportation and equipment rent 160,269 143,436 456,212 419,590 Direct personnel and related benefits 47,351 43,898 155,269 132,897 Commission expense 11,687 10,132 32,440 29,254 Operating expense (exclusive of items shown separately) 28,286 18,946 89,565 57,821 Occupancy expense 6,457 4,661 19,870 14,923 Selling, general and administrative 10,350 7,904 31,658 24,445 Insurance and claims 6,259 5,523 17,853 14,905 Depreciation and amortization 8,469 4,683 24,132 14,749 ----- ----- ------ ------ Total operating expenses 279,128 239,183 826,999 708,584 ------- ------- ------- ------- Income from operations 23,000 22,480 62,042 65,360 Interest expense, net (2,049) (1,094) (6,087) (3,124) Other non-operating income 101 105 315 366 --- --- --- --- Income before provision for income taxes 21,052 21,491 56,270 62,602 Provision for income taxes 7,958 7,749 21,419 23,332 Net income $13,094 $13,742 $34,851 $39,270 ======= ======= ======= ======= Earnings per common share: Basic $0.44 $0.46 $1.16 $1.31 Diluted $0.44 $0.46 $1.16 $1.30 Weighted average number of common shares outstanding: Basic 29,947 30,065 30,037 30,058 Diluted 29,982 30,118 30,077 30,099 Dividends paid per common share: $0.07 $0.07 $0.21 $0.07 ===== ===== ===== =====
UNIVERSAL TRUCKLOAD SERVICES, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands) September 27, 2014 December 31, 2013 ------------------ ----------------- Assets Cash and cash equivalents $10,004 $10,223 Marketable securities 12,325 11,626 Accounts receivable - net 160,132 132,001 Other current assets 39,816 49,539 ------ ------ Total current assets 222,277 203,389 Property and equipment - net 165,014 142,656 Other long-term assets - net 137,001 144,091 ------- ------- Total assets $524,292 $490,136 ======== ======== Liabilities and shareholders' equity Current liabilities, excluding current maturities of capital lease obligations and debt $108,383 $93,896 Capital lease obligations 3,577 4,643 Debt 238,421 237,500 Other long-term liabilities 44,707 48,532 ------ ------ Total liabilities 395,088 384,571 Total shareholders' equity 129,204 105,565 ------- ------- Total liabilities and shareholders' equity $524,292 $490,136 ======== ========
UNIVERSAL TRUCKLOAD SERVICES, INC. Unaudited Summary of Operating Data Thirteen Weeks Ended Thirty-nine Weeks Ended -------------------- ----------------------- September 27, September 28, September 27, September 28, 2014 2013 2014 2013 ---- ---- ---- ---- Transportation Services: Average operating revenues per loaded mile (a) $3.03 $2.84 $2.98 $2.76 Average operating revenues per loaded mile, excluding fuel surcharges, where separately identifiable (a) $2.65 $2.47 $2.58 $2.38 Average operating revenues per load (a) $1,081 $1,030 $1,053 $1,010 Average operating revenues per load, excluding fuel surcharges, where separately identifiable (a) $944 $894 $914 $869 Average length of haul (a) (b) 357 363 354 366 Number of loads (a) 163,853 154,358 481,513 463,673 Value Added Services: Number of facilities (d) Customer provided 15 17 15 17 Company leased 30 26 30 26 --- --- --- --- Total 45 43 45 43 Intermodal Services: Drayage (in thousands) $32,760 $28,647 $90,333 $81,280 Domestic Intermodal (in thousands) 1,103 1,718 2,650 10,886 Depot (in thousands) 2,318 2,515 7,301 7,678 Total (in thousands) $36,181 $32,880 $100,284 $99,844 Average operating revenues per loaded mile (c) $5.49 $4.78 $5.31 $4.57 Average operating revenues per loaded mile, excluding fuel surcharges, where separately identifiable (c) $4.41 $3.87 $4.27 $3.68 Average operating revenues per load (c) $406 $378 $400 $345 Average operating revenues per load, excluding fuel surcharges, where separately identifiable (c) $326 $307 $322 $278 Number of loads (c) 80,598 75,715 225,679 235,372 Number of container yards 11 11 11 11
(a) Excludes operating data from Universal Logistics Solutions, Inc., and Universal Logistics Solutions International, Inc., in order to improve the relevance of the statistical data related to our brokerage services and improve the comparability to our peer companies. Also excludes final mile delivery and shuttle service loads. (b) Average length of haul is computed using loaded miles, excluding final mile delivery and shuttle service loads. (c) Excludes 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.
UNIVERSAL TRUCKLOAD SERVICES, INC. Unaudited Summary of Operating Data - Continued Thirteen Weeks Ended Twenty-six Weeks Ended -------------------- ---------------------- September 27, September 28, September 27, September 28, 2014 2013 2014 2013 ---- ---- ---- ---- Average Headcount: Employees 4,228 3,636 4,217 3,354 Full time equivalents 1,541 1,794 1,580 1,829 Total 5,769 5,430 5,797 5,183 Average number of tractors: Provided by owner-operators 3,365 3,324 3,327 3,345 Owned 836 707 797 694 Third party lease 41 82 65 64 Total 4,242 4,113 4,189 4,103 Operating Revenues by Segment: Transportation $203,944 $181,572 $574,667 $529,375 Logistics 98,081 79,977 314,049 244,244 Other 103 114 325 325 $302,128 $261,663 $889,041 $773,944 ======== ======== ======== ======== Income from Operations by Segment: Transportation $10,218 $8,261 $25,347 $21,481 Logistics 13,992 15,388 39,754 46,032 Other (1,210) (1,169) (3,059) (2,153) $23,000 $22,480 $62,042 $65,360 ======= ======= ======= =======
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 Thirty-nine Weeks Ended -------------------- ----------------------- September 27, September 28, September 27, September 28, 2014 2013 2014 2013 ---- ---- ---- ---- ( in thousands) ( in thousands) EBITDA Net income $13,094 $13,742 $34,851 $39,270 Provision for income taxes 7,958 7,749 21,419 23,332 Interest expense, net 2,049 1,094 6,087 3,124 Depreciation and amortization 8,469 4,683 24,132 14,749 Other non-operating income (101) (105) (315) (366) ---- ---- ---- ---- EBITDA $31,469 $27,163 $86,174 $80,109 ======= ======= ======= ======= EBITDA margin (a) 10.4% 10.4% 9.7% 10.4%
(a) EBITDA margin is computed by dividing EBITDA by total operating revenues for each of the periods indicated.
We present EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
EBITDA has limitations as an analytical tool. Some of these limitations are:
-- EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; -- EBITDA does not reflect changes in, or cash requirements for, our working capital needs; -- EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; -- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and -- Other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and EBITDA only supplementally.
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SOURCE Universal Truckload Services, Inc.