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 25, 2010
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 25, 2010, Universal Truckload Services, Inc., or the Company, issued a press release announcing the Company’s financial and operating results for the thirteen weeks and year ended December 31, 2009, 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 |
Description | |
| 99.1 | Press Release dated February 25, 2010 announcing the Company’s financial and operating results for the thirteen weeks and year ended December 31, 2009. | |
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 26, 2010 | /S/ ROBERT E. SIGLER | |
| Robert E. Sigler | ||
| Vice President, Chief Financial Officer, Secretary and Treasurer | ||
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 Weeks and Year Ended December 31, 2009
Warren, MI – February 25, 2010 — Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen weeks and year ended December 31, 2009.
For the thirteen weeks ended December 31, 2009, operating revenues decreased 21.0%, or $37.1 million, to $139.8 million from $177.0 million for the thirteen weeks ended December 31, 2008. Included in operating revenues are fuel surcharges of $11.1 million and $20.2 million for the thirteen weeks ended December 31, 2009 and December 31, 2008, respectively. Net income decreased 33.3%, or $0.9 million, to $1.8 million, or $0.11 per basic and diluted share for the thirteen weeks ended December 31, 2009, from $2.6 million, or $0.16 per basic and diluted share, for the thirteen weeks ended December 31, 2008. Included in net income for the thirteen weeks ended December 31, 2008 were $0.6 million, or $0.04 per basic and diluted share, of after-tax charges for other-than-temporary impairments of marketable equity securities classified as available for sale.
Universal’s truckload revenue for the thirteen weeks ended December 31, 2009 decreased by 10.2% to $88.0 million from $97.9 million in the corresponding period of 2008. Included in truckload revenue for the thirteen weeks ended December 31, 2009 is $10.7 million of revenue from our third quarter 2009 acquisition. Brokerage revenue for the thirteen weeks ended December 31, 2009 decreased by 42.6% to $31.1 million from $54.2 million in the corresponding period of 2008. Included in brokerage revenue for the thirteen weeks ended December 31, 2009 is $2.0 million of revenue from our 2009 acquisitions. Intermodal revenue for the thirteen weeks ended December 31, 2009 decreased by 16.4% to $20.8 million from $24.9 million in the corresponding period of 2008.
For the year ended December 31, 2009, operating revenues decreased 33.7%, or $256.3 million, to $503.2 million from $759.5 million for the year ended December 31, 2008. Included in operating revenues are fuel surcharges of $35.9 million and $101.3 million for 2009 and 2008, respectively. Net income decreased 67.1%, or $10.0 million, to $4.9 million, or $0.31 per basic and diluted share for 2009, from $14.9 million, or $0.93 per basic and diluted share, for 2008. Included in net income for 2009 were $0.8 million, or $0.05 per basic and diluted share, of after-tax charges for other-than-temporary impairments of marketable equity securities classified as available for sale, compared to $2.2 million, or $0.14 per basic and diluted share of similar charges in 2008.
Universal’s truckload revenue in 2009 decreased by 28.4% to $313.6 million from $438.2 million in the corresponding period of 2008. Included in truckload revenue in 2009 is $17.1 million from our acquisitions completed since the second quarter of 2008. Brokerage revenue in 2009 decreased by 45.8% to $112.9 million from $208.3 million in the corresponding period of 2008. Included in brokerage revenue in 2009 is $3.1 million from our acquisitions completed since the first quarter of 2008. Intermodal revenue in 2009 decreased by 32.1% to $76.7 million from $113.0 million in the corresponding period of 2008. Included in Intermodal revenue in 2009 is $0.8 million from our acquisitions completed in the first half of 2008.
“In 2009 our challenge became one of managing costs on a significantly smaller revenue scale, without compromising services to our customers,” stated Universal’s President and CEO Don Cochran. “It meant that our agents, independent contractors and employees all shared in the downside of the worst transportation recession most of us have ever seen. As revenue incrementally improves, our business model will allow for improved performance, not only for us, but for our business partners as well. We are optimistic that 2010 will show signs of this improvement and allow UTSI to remain a top provider of diverse transportation services for our customers.”
Universal Truckload Services, Inc. is primarily an asset light 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 Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Thirteen Weeks Ended December 31, |
Year Ended December 31, |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Operating revenues: |
||||||||||||||||
| Truckload |
$ | 87,953 | $ | 97,915 | $ | 313,573 | $ | 438,203 | ||||||||
| Brokerage |
31,095 | 54,176 | 112,914 | 208,289 | ||||||||||||
| Intermodal |
20,801 | 24,877 | 76,743 | 113,025 | ||||||||||||
| Total operating revenues |
139,849 | 176,968 | 503,230 | 759,517 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Purchased transportation |
106,071 | 137,386 | 378,008 | 592,982 | ||||||||||||
| Commissions expense |
9,614 | 11,953 | 33,953 | 47,333 | ||||||||||||
| Other operating expense |
3,421 | 2,504 | 10,316 | 9,510 | ||||||||||||
| Selling, general, and administrative |
10,854 | 13,281 | 44,232 | 52,036 | ||||||||||||
| Insurance and claims |
4,241 | 4,472 | 17,348 | 21,388 | ||||||||||||
| Depreciation and amortization |
2,633 | 2,516 | 10,354 | 9,638 | ||||||||||||
| Total operating expenses |
136,834 | 172,112 | 494,211 | 732,887 | ||||||||||||
| Income from operations |
3,015 | 4,856 | 9,019 | 26,630 | ||||||||||||
| Interest income (expense), net |
(133 | ) | (54 | ) | (266 | ) | 12 | |||||||||
| Other non-operating income (expense) |
104 | (608 | ) | (733 | ) | (2,387 | ) | |||||||||
| Income before provision for income taxes |
2,986 | 4,194 | 8,020 | 24,255 | ||||||||||||
| Provision for income taxes |
1,229 | 1,561 | 3,120 | 9,369 | ||||||||||||
| Net income |
$ | 1,757 | $ | 2,633 | $ | 4,900 | $ | 14,886 | ||||||||
| Earnings per common share: |
||||||||||||||||
| Basic |
$ | 0.11 | $ | 0.16 | $ | 0.31 | $ | 0.93 | ||||||||
| Diluted |
$ | 0.11 | $ | 0.16 | $ | 0.31 | $ | 0.93 | ||||||||
| Weighted average number of common shares outstanding: |
||||||||||||||||
| Basic |
15,980 | 16,028 | 15,982 | 16,073 | ||||||||||||
| Diluted |
15,980 | 16,028 | 15,982 | 16,077 | ||||||||||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| December 31, | ||||||
| 2009 | 2008 | |||||
| Assets |
||||||
| Cash and cash equivalents |
$ | 953 | $ | 28,767 | ||
| Marketable securities |
15,721 | 8,808 | ||||
| Accounts receivable – net |
63,352 | 70,590 | ||||
| Other current assets |
9,598 | 9,948 | ||||
| Total current assets |
89,624 | 118,113 | ||||
| Property and equipment – net |
76,246 | 61,334 | ||||
| Other long-term assets – net |
35,741 | 32,100 | ||||
| Total assets |
$ | 201,611 | $ | 211,547 | ||
| Liabilities and shareholders’ equity |
||||||
| Total current liabilities |
$ | 40,305 | $ | 40,040 | ||
| Total long-term liabilities |
6,881 | 7,030 | ||||
| Total liabilities |
47,186 | 47,070 | ||||
| Total shareholders’ equity |
154,425 | 164,477 | ||||
| Total liabilities and shareholders’ equity |
$ | 201,611 | $ | 211,547 | ||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| Thirteen Weeks Ended December 31, |
Year Ended December 31, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Average number of tractors provided by owner-operators |
||||||||||||
| Truckload |
2,669 | 2,819 | 2,707 | 2,803 | ||||||||
| Intermodal |
647 | 765 | 680 | 815 | ||||||||
| Total |
3,316 | 3,584 | 3,387 | 3,618 | ||||||||
| Truckload Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.24 | $ | 2.79 | $ | 2.28 | $ | 2.84 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges (1) |
$ | 2.01 | $ | 2.34 | $ | 2.07 | $ | 2.32 | ||||
| Average operating revenues per load (1) |
$ | 963 | $ | 1,107 | $ | 962 | $ | 1,079 | ||||
| Average operating revenues per load, excluding fuel surcharges (1) |
$ | 864 | $ | 927 | $ | 873 | $ | 881 | ||||
| Average length of haul (1)(2) |
429 | 397 | 422 | 380 | ||||||||
| Number of loads (1) |
91,299 | 88,473 | 325,927 | 406,284 | ||||||||
| Brokerage Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.03 | $ | 2.64 | $ | 1.96 | $ | 2.52 | ||||
| Average operating revenues per load (1) |
$ | 1,277 | $ | 1,567 | $ | 1,171 | $ | 1,486 | ||||
| Average length of haul (1)(2) |
629 | 594 | 598 | 589 | ||||||||
| Number of loads (1) |
22,467 | 31,983 | 88,895 | 125,432 | ||||||||
| Intermodal Revenues: |
||||||||||||
| Drayage (in thousands) |
$ | 19,025 | $ | 22,478 | $ | 69,395 | $ | 102,984 | ||||
| Depot (in thousands) |
$ | 1,776 | $ | 2,399 | $ | 7,348 | $ | 10,041 | ||||
| Total (in thousands) |
$ | 20,801 | $ | 24,877 | $ | 76,743 | $ | 113,025 | ||||
| Average operating revenues per loaded mile |
$ | 3.32 | $ | 3.82 | $ | 3.37 | $ | 4.44 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges |
$ | 2.96 | $ | 3.09 | $ | 3.03 | $ | 3.54 | ||||
| Average operating revenues per load |
$ | 298 | $ | 334 | $ | 286 | $ | 338 | ||||
| Average operating revenues per load, excluding fuel surcharges |
$ | 265 | $ | 270 | $ | 257 | $ | 269 | ||||
| Number of loads |
63,903 | 67,211 | 242,927 | 304,869 | ||||||||
| (1) | Excludes operating data from CrossRoad Carriers, Inc. and D. Kratt International, 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. |