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) July 26, 2007
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 July 26, 2007, Universal Services Truckload, Inc. (the “Company”) issued a press release announcing the Company’s financial and operating results for the thirteen and twenty-six weeks ended June 30, 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 July 26, 2007 announcing the Company’s financial and operating results for the thirteen and twenty-six weeks ended June 30, 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: July 27, 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 July 26, 2007 announcing the Company’s financial and operating results for the thirteen and twenty-six weeks ended June 30, 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 Twenty-six Weeks Ended June 30, 2007
Warren, MI – July 26, 2007 — Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the thirteen and twenty-six weeks ended June 30, 2007.
For the thirteen weeks ended June 30, 2007, operating revenues increased 11.4%, or $18.2 million, to $178.2 million from $160.0 million for the thirteen weeks ended July 1, 2006. Included in operating revenues are fuel surcharges of $17.8 million and $15.6 million for the second quarters of 2007 and 2006, respectively. Net income decreased 12.6%, or $0.7 million, to $4.7 million, or $0.29 per share for the second quarter of 2007, from $5.4 million, or $0.33 per share, for the second quarter of 2006. Included in operating expenses for the thirteen weeks ended June 30, 2007 was a $0.7 million charge to settle certain accident claims in the second quarter of 2007. Net of related income taxes, this charge reduced second quarter 2007 net income by $0.4 million or $0.03 per share. Operating margin was 4.2% for the second quarter of 2007 compared to 5.3% for the second quarter of 2006.
Universal’s truckload revenue in the second quarter of 2007 increased by 12.1% to $107.4 million from $95.8 million in the corresponding period of 2006. Included in truckload revenue in the second quarter of 2007 is $7.5 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the second quarter of 2007 increased by 4.2% to $43.1 million from $41.4 million in the corresponding period of 2006. Included in brokerage revenue in the second quarter of 2007 is $1.4 million from our acquisition completed in the third quarter of 2006. Intermodal revenue in the second quarter of 2007 increased by 21.3% to $27.7 million from $22.8 million in the corresponding period of 2006. Included in Intermodal revenue in the second quarter of 2007 is $2.3 million from our acquisitions completed through third quarter of 2006.
For the twenty-six weeks ended June 30, 2007, operating revenues increased 10.2%, or $31.2 million, to $337.1 million from $305.9 million for the twenty-six weeks ended July 1, 2006. Included in operating revenues are fuel surcharges of $31.6 million and $27.6 million for the first two quarters of 2007 and 2006, respectively. Net income decreased 20.6%, or $2.1 million, to $7.9 million, or $0.49 per share for the first half of 2007, from $10.0 million, or $0.62 per share, for the first half of 2006.
Universal’s truckload revenue in the first half of 2007 increased by 9.5% to $200.5 million from $183.2 million in the corresponding period of 2006. Included in truckload revenue in the first half of 2007 is $14.4 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the first half of 2007 increased by 5.8% to $84.1 million from $79.5 million in the corresponding period of 2006. Included in brokerage revenue in the first half of 2007 is $2.9 million from our acquisitions completed in the third quarter of 2006. Intermodal revenue in the first half of 2007 increased by 21.3% to $52.5 million from $43.2 million in the corresponding period of 2006. Included in Intermodal revenue in the first half of 2007 is $5.2 million from our acquisitions completed through third quarter of 2006.
“Despite the affects of an inconsistent freight environment, our revenue continues to grow both organically and through the acquisitions we completed in the third quarter of 2006,” stated Universal’s President and CEO Don Cochran. “In addition, we have made positive improvements in our operating ratio in the second quarter of 2007 compared to the first quarter of 2007. Our operating ratio for the thirteen weeks ended June 30, 2007 was 95.8% compared to an operating ratio for the thirteen weeks ended March 31, 2007 of 96.8%.”
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 | Twenty-six Weeks Ended | |||||||||||
| June 30, 2007 |
July 1, 2006 |
June 30, 2007 |
July 1, 2006 | |||||||||
| Operating revenues: |
||||||||||||
| Truckload |
$ | 107,449 | $ | 95,843 | $ | 200,516 | $ | 183,162 | ||||
| Brokerage |
43,080 | 41,360 | 84,069 | 79,480 | ||||||||
| Intermodal |
27,650 | 22,803 | 52,471 | 43,249 | ||||||||
| Total operating revenues |
178,179 | 160,006 | 337,056 | 305,891 | ||||||||
| Operating expenses: |
||||||||||||
| Purchased transportation |
136,125 | 122,907 | 257,774 | 233,782 | ||||||||
| Commissions expense |
11,475 | 9,939 | 22,074 | 19,395 | ||||||||
| Other operating expense, net |
2,803 | 2,469 | 5,363 | 4,430 | ||||||||
| Selling, general, and administrative |
12,281 | 10,927 | 24,474 | 22,215 | ||||||||
| Insurance and claims |
5,924 | 3,896 | 10,796 | 7,743 | ||||||||
| Depreciation and amortization |
2,031 | 1,372 | 3,938 | 2,642 | ||||||||
| Total operating expenses |
170,639 | 151,510 | 324,419 | 290,207 | ||||||||
| Income from operations |
7,540 | 8,496 | 12,637 | 15,684 | ||||||||
| Interest income (expense), net |
136 | 302 | 331 | 552 | ||||||||
| Income before income taxes |
7,676 | 8,798 | 12,968 | 16,236 | ||||||||
| Provision for income taxes |
2,958 | 3,402 | 5,066 | 6,278 | ||||||||
| Net income |
$ | 4,718 | $ | 5,396 | $ | 7,902 | $ | 9,958 | ||||
| Earnings per common share: |
||||||||||||
| Basic |
$ | 0.29 | $ | 0.33 | $ | 0.49 | $ | 0.62 | ||||
| Diluted |
$ | 0.29 | $ | 0.33 | $ | 0.49 | $ | 0.62 | ||||
| Average common shares outstanding: |
||||||||||||
| Basic |
16,118 | 16,118 | 16,118 | 16,118 | ||||||||
| Diluted |
16,122 | 16,184 | 16,131 | 16,160 | ||||||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| June 30, 2007 |
December 31, 2006 | |||||
| Assets |
||||||
| Cash and cash equivalents |
$ | 6,313 | $ | 5,008 | ||
| Marketable securities |
9,179 | 15,330 | ||||
| Accounts receivable - net |
89,154 | 82,259 | ||||
| Other current assets |
11,336 | 8,971 | ||||
| Total current assets |
115,982 | 111,568 | ||||
| Property and equipment - net |
57,959 | 51,286 | ||||
| Other long-term assets - net |
30,010 | 28,046 | ||||
| Total assets |
$ | 203,951 | $ | 190,900 | ||
| Liabilities and shareholders’ equity |
||||||
| Total current liabilities |
$ | 54,875 | $ | 49,717 | ||
| Total long-term liabilities |
6,661 | 6,730 | ||||
| Total liabilities |
61,536 | 56,447 | ||||
| Total shareholders’ equity |
142,415 | 134,453 | ||||
| Total liabilities and shareholders’ equity |
$ | 203,951 | $ | 190,900 | ||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| Thirteen Weeks Ended |
Twenty-six Weeks Ended | |||||||||||
| June 30, 2007 |
July 1, 2006 |
June 30, 2007 |
July 1, 2006 | |||||||||
| Average number of tractors provided by owner-operators |
||||||||||||
| Truckload |
3,006 | 2,551 | 2,985 | 2,520 | ||||||||
| Intermodal |
834 | 626 | 847 | 609 | ||||||||
| Truckload Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.42 | $ | 2.51 | $ | 2.40 | $ | 2.49 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges (1) |
$ | 2.10 | $ | 2.17 | $ | 2.10 | $ | 2.18 | ||||
| Average operating revenues per load (1) |
$ | 963 | $ | 961 | $ | 952 | $ | 952 | ||||
| Average operating revenues per load, excluding fuel surcharges (1) |
$ | 834 | $ | 832 | $ | 832 | $ | 834 | ||||
| Average length of haul (1)(2) |
397 | 383 | 397 | 383 | ||||||||
| Number of loads (1) |
111,590 | 99,710 | 210,594 | 192,351 | ||||||||
| Brokerage Revenues: |
||||||||||||
| Average operating revenues per loaded mile (1) |
$ | 2.02 | $ | 2.07 | $ | 1.99 | $ | 2.04 | ||||
| Average operating revenues per load (1) |
$ | 1,273 | $ | 1,242 | $ | 1,255 | $ | 1,234 | ||||
| Average length of haul (1)(2) |
630 | 601 | 630 | 605 | ||||||||
| Number of loads (1) |
27,510 | 25,289 | 54,011 | 48,997 | ||||||||
| Intermodal Revenues: |
||||||||||||
| Drayage (in thousands) |
$ | 25,256 | $ | 20,814 | $ | 48,058 | $ | 39,106 | ||||
| Depot (in thousands) |
$ | 2,394 | $ | 1,989 | $ | 4,413 | $ | 4,143 | ||||
| Total (in thousands) |
$ | 27,650 | $ | 22,803 | $ | 52,471 | $ | 43,249 | ||||
| Average operating revenues per loaded mile |
$ | 4.52 | $ | 4.38 | $ | 4.46 | $ | 4.25 | ||||
| Average operating revenues per loaded mile, excluding fuel surcharges |
$ | 3.92 | $ | 3.80 | $ | 3.89 | $ | 3.72 | ||||
| Average operating revenues per load |
$ | 290 | $ | 265 | $ | 281 | $ | 267 | ||||
| Average operating revenues per load, excluding fuel surcharges |
$ | 251 | $ | 231 | $ | 245 | $ | 233 | ||||
| Number of loads |
87,145 | 78,402 | 170,861 | 146,732 | ||||||||
| (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. |