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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, Mich., July 25, 2024 /PRNewswire/ -- 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.

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.

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SOURCE Universal Logistics Holdings, Inc.

Steven Fitzpatrick, Investor Relations, SFitzpatrick@UniversalLogistics.com