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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, Mich., July 29, 2021 /PRNewswire/ -- 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:  (844) 955-2101
International Dial-in:  +1 (661) 567-1249
Conference ID:  3590296

A replay of the conference call will be available beginning two hours after the call through August 6, 2021, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 3590296. The call will also be available on investors.universallogistics.com

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


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)




July 3,

2021



December 31,

2020


Assets









Cash and cash equivalents


$

13,098



$

8,763


Marketable securities



7,915




6,534


Accounts receivable - net



285,432




259,154


Other current assets



52,714




47,073


Total current assets



359,159




321,524


Property and equipment - net



350,340




364,795


Other long-term assets - net



372,721




376,730


Total assets


$

1,082,220



$

1,063,049











Liabilities and shareholders' equity









Current liabilities, excluding current maturities of debt


$

215,200



$

213,094


Debt - net



432,157




460,120


Other long-term liabilities



152,955




150,262


Total liabilities



800,312




823,476


Total shareholders' equity



281,908




239,573


Total liabilities and shareholders' equity


$

1,082,220



$

1,063,049


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data




Thirteen Weeks Ended



Twenty-six Weeks Ended




July 3,



July 4,



July 3,



July 4,




2021



2020



2021



2020


Contract Logistics Segment:

















Number of dedicated transportation loads (a)



156,119




57,703




312,494




197,218


Average number of value-added direct
employees



4,475




3,238




4,182




3,445


Average number of value-added full-time
equivalents



1,508




787




1,597




1,109


Number of active value-added programs



60




55




60




55



















Intermodal Segment:

















Number of loads



169,441




156,779




348,924




354,562


Average operating revenue per load,
excluding fuel surcharges


$

490



$

463



$

483



$

474


Average number of tractors



2,034




2,236




2,003




2,383


Number of depots



12




14




12




14



















Trucking Segment:

















Number of loads



75,645




51,222




148,389




127,438


Average operating revenue per load,
excluding fuel surcharges


$

1,286



$

1,242



$

1,266



$

1,195


Average number of tractors



1,337




1,321




1,328




1,373


Average length of haul



366




393




370




395



















Company-Managed Brokerage Segment:

















Number of loads (b)



31,006




33,020




63,891




74,543


Average operating revenue per load (b)


$

1,879



$

1,096



$

1,806



$

1,165


Average length of haul (b)



573




564




569




573



(a)   Includes shuttle moves.

(b)   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




July 3,



July 4,



July 3,



July 4,




2021



2020



2021



2020


Operating Revenues by Segment:

















Contract logistics


$

154,770



$

71,794



$

309,664



$

198,837


Intermodal



106,601




82,881




210,318




193,203


Trucking



99,778




63,004




194,678




154,573


Company-managed brokerage



60,431




39,946




121,537




92,727


Other



1,203




355




1,818




802


Total


$

422,783



$

257,980



$

838,015



$

640,142



















Income from Operations by Segment:

















Contract logistics


$

15,946



$

750



$

32,766



$

12,440


Intermodal



6,152




4,739




14,646




13,739


Trucking



6,482




3,594




11,672




8,094


Company-managed brokerage



2,445




1,702




2,886




305


Other



288




54




499




169


Total


$

31,313



$

10,839



$

62,469



$

34,747


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




July 3,



July 4,



July 3,



July 4,




2021



2020



2021



2020




( in thousands)



( in thousands)


EBITDA

















Net income


$

25,604



$

6,168



$

47,260



$

18,331


Income tax expense



8,862




2,044




16,205




5,975


Interest expense, net



2,926




3,438




6,089




7,647


Depreciation



12,828




14,485




28,433




29,927


Amortization



3,511




4,045




6,991




8,121


EBITDA


$

53,731



$

30,180



$

104,978



$

70,001



















EBITDA margin (a)



12.7

%



11.7

%



12.5

%



10.9

%


(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.

 

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SOURCE Universal Logistics Holdings, Inc.

Steven Fitzpatrick, Investor Relations, SFitzpatrick@UniversalLogistics.com