UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 21, 2008
Universal Truckload Services, Inc.
(Exact name of registrant as specified in its charter)
| Michigan | 120510 | 38-3640097 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
12755 E. Nine Mile Road, Warren, Michigan
(Address of principal executive offices)
48089
(Zip Code)
(586) 920-0100
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On February 21, 2008, Universal Truckload Services, Inc. (the “Company”) issued a press release announcing the Company’s financial and operating results for the thirteen and fifty-two weeks ended December 31, 2007, a copy of which is furnished as Exhibit 99.1 to this Form 8-K.
| Item 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
| (d) | Exhibits. |
| Exhibit No. |
Description | |
| 99.1 | Press Release dated February 21, 2008 announcing the Company’s financial and operating results for the Thirteen and fifty-two weeks ended December 31, 2007. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| UNIVERSAL TRUCKLOAD SERVICES, INC. | ||
| Date: February 22, 2007 | /s/ Robert E. Sigler | |
| Robert E. Sigler | ||
| Vice President, Chief Financial Officer, Secretary and Treasurer | ||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release dated February 21, 2008 announcing the Company’s financial and operating results for the thirteen and fifty-two weeks ended December 31, 2007. |
Exhibit 99.1
For further information:
Robert Sigler
Vice President and Chief Financial Officer
586.920.0100
Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen and Fifty-two Weeks Ended December 31, 2007
Warren, MI – February 21, 2008 – Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen and fifty-two weeks ended December 31, 2007.
For the thirteen weeks ended December 31, 2007, operating revenues increased 4.7%, or $7.7 million, to $171.5 million from $163.8 million for the thirteen weeks ended December 31, 2006. Included in operating revenues are fuel surcharges of $18.2 million and $15.4 million for the fourth quarters of 2007 and 2006, respectively. Net income decreased 9.1%, or $0.5 million, to $4.8 million, or $0.30 per diluted share for the fourth quarter of 2007, from $5.3 million, or $0.33 per diluted share, for the fourth quarter of 2006. Diluted earnings per share in the fourth quarter of 2007 is computed based upon weighted average diluted shares outstanding of 16,104,261 compared to 16,142,049 shares in the fourth quarter of 2006. Operating margin was 4.2% for the fourth quarter of 2007 compared to 5.0% for the fourth quarter of 2006.
Universal’s truckload revenue in the fourth quarter of 2007 increased by 8.1% to $100.0 million from $92.5 million in the corresponding period of 2006. Included in truckload revenue in the fourth quarter of 2007 is $1.2 million from our acquisition completed in the fourth quarter of 2007. Brokerage revenue in the fourth quarter of 2007 increased by 1.4% to $45.0 million from $44.3 million in the corresponding period of 2006. Intermodal revenue in the fourth quarter of 2007 decreased by 1.4% to $26.6 million from $27.0 million in the corresponding period of 2006.
For the year ended December 31, 2007, operating revenues increased 6.0%, or $38.7 million, to $680.4 million from $641.6 million for the year ended December 31, 2006. Included in operating revenues are fuel surcharges of $65.8 million and $60.8 million for 2007 and 2006, respectively. Net income decreased 15.1%, or $3.2 million, to $17.8 million, or $1.11 per share for 2007, from $21.0 million, or $1.30 per share for 2006. Diluted earnings per share in 2007 is computed based upon weighted average diluted shares outstanding of 16,121,631 compared to 16,159,321 shares in 2006.
Universal’s truckload revenue in 2007 increased by 7.2% to $402.1 million from $375.2 million in the corresponding period of 2006. Included in truckload revenue growth in 2007 is $17.6 million from our acquisitions completed in the second half of 2006 and fourth quarter of 2007. Brokerage revenue in 2007 increased by 0.7% to $171.8 million from $170.6 million in the corresponding period of 2006. Included in brokerage revenue growth in 2007 is $3.1 million from our acquisitions completed in the third quarter of 2006. Intermodal revenue in 2007 increased by 11.1% to $106.5 million from $95.9 million in the corresponding period of 2006. Included in Intermodal revenue growth in 2007 is $5.9 million from our acquisitions completed in 2006.
In the fourth quarter of 2007 Universal announced that it was prepared to repurchase up to 800,000 shares of its common stock in open market transactions. During the fourth quarter of 2007, Universal purchased 29,200 shares of its common stock at a total cost of $481 thousand. Universal is authorized to purchase an additional 770,800 shares of its common stock under the stock repurchase plan.
“We are pleased with our revenue growth of 4.7% in the fourth quarter of 2007,” stated Universal’s President and CEO, Don Cochran. “Even in a weak freight environment, we were able to make gains in both load volumes and pricing. Given the uncertainty in the market, we had a good quarter.”
Universal Truckload Services, Inc. is primarily a non-asset based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The Company’s trucking services include both flatbed and dry van operations and the Company provides rail-truck and steamship-truck intermodal support services. The Company also offers truck brokerage services.
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 Consolidated Statements of Income
(In thousands, except per share data)
| Thirteen Weeks Ended December 31, |
Year Ended December 31, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| Operating revenues: |
||||||||||||
| Truckload |
$ | 99,987 | $ | 92,527 | $ | 402,082 | $ | 375,194 | ||||
| Brokerage |
44,963 | 44,338 | 171,814 | 170,576 | ||||||||
| Intermodal |
26,578 | 26,964 | 106,463 | 95,857 | ||||||||
| Total operating revenues |
171,528 | 163,829 | 680,359 | 641,627 | ||||||||
| Operating expenses: |
||||||||||||
| Purchased transportation |
131,405 | 125,615 | 520,064 | 491,840 | ||||||||
| Commissions expense |
11,653 | 10,131 | 45,081 | 40,360 | ||||||||
| Other operating expense, net |
1,818 | 2,090 | 9,429 | 8,642 | ||||||||
| Selling, general, and administrative |
12,063 | 12,312 | 48,418 | 46,137 | ||||||||
| Insurance and claims |
5,236 | 3,951 | 21,178 | 15,828 | ||||||||
| Depreciation and amortization |
2,198 | 1,477 | 8,163 | 5,730 | ||||||||
| Total operating expenses |
164,373 | 155,576 | 652,333 | 608,537 | ||||||||
| Income from operations |
7,155 | 8,253 | 28,026 | 33,090 | ||||||||
| Interest income, net |
422 | 243 | 944 | 1,043 | ||||||||
| Income before income taxes |
7,577 | 8,496 | 28,970 | 34,133 | ||||||||
| Provision for income taxes |
2,773 | 3,210 | 11,134 | 13,124 | ||||||||
| Net income |
$ | 4,804 | $ | 5,286 | $ | 17,836 | $ | 21,009 | ||||
| Earnings per common share: |
||||||||||||
| Basic |
$ | 0.30 | $ | 0.33 | $ | 1.11 | $ | 1.30 | ||||
| Diluted |
$ | 0.30 | $ | 0.33 | $ | 1.11 | $ | 1.30 | ||||
| Average common shares outstanding: |
||||||||||||
| Basic |
16,104 | 16,118 | 16,115 | 16,118 | ||||||||
| Diluted |
16,104 | 16,142 | 16,122 | 16,159 | ||||||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| December 31, | ||||||
| 2007 | 2006 | |||||
| Assets |
||||||
| Cash and cash equivalents |
$ | 5,416 | $ | 5,008 | ||
| Marketable securities |
17,961 | 15,330 | ||||
| Accounts receivable – net |
86,626 | 82,259 | ||||
| Other current assets |
8,248 | 8,971 | ||||
| Total current assets |
118,251 | 111,568 | ||||
| Property and equipment – net |
57,149 | 51,286 | ||||
| Other long-term assets – net |
31,788 | 28,046 | ||||
| Total assets |
$ | 207,188 | $ | 190,900 | ||
| Liabilities and shareholders’ equity |
||||||
| Total current liabilities |
$ | 48,443 | $ | 49,717 | ||
| Total long-term liabilities |
7,303 | 6,730 | ||||
| Total liabilities |
55,746 | 56,447 | ||||
| Total shareholders’ equity |
151,442 | 134,453 | ||||
| Total liabilities and shareholders’ equity |
$ | 207,188 | $ | 190,900 | ||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| Thirteen Weeks Ended December 31, |
Year Ended December 31, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| Average number of tractors provided by owner-operators |
||||||||||||
| Truckload |
2,870 | 2,975 | 2,937 | 2,723 | ||||||||
| Intermodal |
822 | 830 | 839 | 694 | ||||||||
| Truckload Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.59 | $ | 2.40 | $ | 2.47 | $ | 2.49 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges (1) |
$ | 2.22 | $ | 2.09 | $ | 2.15 | $ | 2.16 | ||||
| Average operating revenues per load (1) |
$ | 976 | $ | 968 | $ | 959 | $ | 968 | ||||
| Average operating revenues per load, excluding fuel surcharges (1) |
$ | 837 | $ | 842 | $ | 835 | $ | 841 | ||||
| Average length of haul (1)(2) |
377 | 404 | 388 | 389 | ||||||||
| Number of loads (1) |
102,442 | 95,593 | 419,185 | 387,627 | ||||||||
| Brokerage Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.12 | $ | 2.03 | $ | 2.05 | $ | 2.07 | ||||
| Average operating revenues per load (1) |
$ | 1,358 | $ | 1,277 | $ | 1,303 | $ | 1,267 | ||||
| Average length of haul (1)(2) |
640 | 628 | 635 | 613 | ||||||||
| Number of loads (1) |
28,799 | 27,320 | 110,312 | 104,678 | ||||||||
| Intermodal Revenues: |
||||||||||||
| Drayage (in thousands) |
$ | 24,538 | $ | 24,873 | $ | 97,795 | $ | 87,731 | ||||
| Depot (in thousands) |
$ | 2,040 | $ | 2,091 | $ | 8,668 | $ | 8,126 | ||||
| Total (in thousands) |
$ | 26,578 | $ | 26,964 | $ | 106,463 | $ | 95,857 | ||||
| Average operating revenues per loaded mile |
$ | 4.92 | $ | 4.04 | $ | 4.63 | $ | 4.16 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges |
$ | 4.13 | $ | 3.50 | $ | 3.98 | $ | 3.61 | ||||
| Average operating revenues per load |
$ | 304 | $ | 286 | $ | 289 | $ | 276 | ||||
| Average operating revenues per load, excluding fuel surcharges |
$ | 255 | $ | 248 | $ | 248 | $ | 239 | ||||
| Number of loads |
80,602 | 86,858 | 338,287 | 318,339 | ||||||||
| (1) | Excludes operating data from CrossRoad Carriers, Inc. in order to improve the relevance of the statistical data related to our truckload and brokerage services and improve the comparability to our peer companies. |
| (2) | Average length of haul is computed using loaded miles. |