Universal Logistics Holdings Inc ULH

NAS: ULH | ISIN: US91388P1057   28/03/2024
36,87 USD (-0,99%)
(-0,99%)   28/03/2024

Universal Logistics Holdings Reports Record Fourth Quarter 2022 Financial Results; Achieves Record Full-Year 2022 Financial Results; Declares Dividend

Fourth Quarter 2022 Operating Revenues:  $458.7 million, 1.9% decrease

Fourth Quarter 2022 Operating Income:  $48.2 million, 102.6% increase

Fourth Quarter 2022 Earnings Per Share:  $1.27 per share, 111.7% increase

Declares Quarterly Dividend:  $0.105 per share

WARREN, Mich., Feb. 9, 2023 /PRNewswire/ -- Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated fourth quarter 2022 net income of $33.4 million, or $1.27 per basic and diluted share, on total operating revenues of $458.7 million. This compares to net income of $16.2 million, or $0.60 per basic and diluted share, during fourth quarter 2021 on total operating revenues of $467.4 million. Universal's fourth quarter 2022 operating income and earnings per share represent the best fourth quarter results in company history. For the full year 2022, Universal reported $6.37 per basic and diluted share, on total operating revenues of $2.02 billion, both all-time records in company history. This compares to $2.74 per basic and diluted share, on total operating revenues of $1.75 billion for the full year 2021. 

In the fourth quarter 2022, Universal's operating income increased $24.4 million to $48.2 million, compared to $23.8 million in the fourth quarter one year earlier.  Included in fourth quarter 2021 operating results were $11.0 million of pre-tax charges related to previously disclosed items. As a percentage of operating revenue, operating margin for the fourth quarter 2022 was 10.5%, compared to 5.1% during the same period last year. EBITDA, a non-GAAP measure, increased $28.3 million during the fourth quarter 2022 to $68.0 million, compared to $39.7 million one year earlier. As a percentage of operating revenue, EBITDA margin for the fourth quarter 2022 was 14.8%, compared to 8.5% during the same period last year. The previously disclosed pre-tax charges recorded in the fourth quarter 2021 adversely impacted Universal's operating margin and EBITDA margin in that period by 230 basis points. 

"2022 was a year of record setting financial performance for the company," stated Universal's CEO Tim Phillips. "And we closed out the year with yet another, reporting our best ever fourth quarter earnings in company history. In fact, for the full year 2022, Universal more than doubled its net income and reported top-line revenues in excess of $2.0 billion, a milestone we have worked so diligently to achieve."

"As we transition into a new year," Phillips continued, "we are navigating a much different transportation environment. Excess retail inventories, a slow-down in industrial production and loosening capacity have all put downward pressures on our trucking, company-managed brokerage and intermodal segments. While we expect near-term headwinds in transportation, stability in our contract logistics segment, supported by strong North American auto production, will provide a solid foundation for the year to come. Universal remains a results-oriented organization, and I believe the diversification of our service offerings and the talented teams we have assembled keep us well positioned for continued success."

Segment Information:

Contract Logistics

Fourth Quarter 2022 Operating Revenues:  $205.5 million, 27.9% increase
Fourth Quarter 2022 Operating Income:  $30.1 million, 14.7% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, fourth quarter 2022 operating revenues increased 27.9% to $205.5 million, compared to $160.7 million for the same period last year.  We grew our fourth quarter 2022 dedicated transportation load volumes by 5.3% compared to the same period last year, and we managed 63 value-added programs at the end of both fourth quarters 2022 and 2021. Included in contract logistics segment revenues were $10.6 million in separately identified fuel surcharges from dedicated transportation services, compared to $5.9 million during the same period last year. Fourth quarter 2022 income from operations increased $24.0 million to $30.1 million, compared to $6.1 million during the same period last year. Included in fourth quarter 2021 results were $5.0 million of losses incurred in connection with a previously announced program launch. As a percentage of revenue, operating margin in the contract logistics segment for the fourth quarter 2022 was 14.7%, compared to 3.8% during the same period last year. Previously disclosed pre-tax launch losses recorded in the fourth quarter 2021 adversely impacted this segment's operating margin by 310 basis points. 

Intermodal

Fourth Quarter 2022 Operating Revenues:  $123.1 million, 13.2% decrease
Fourth Quarter 2022 Operating Income:  $11.1 million, 9.0% operating margin

Operating revenues in the intermodal segment decreased 13.2% to $123.1 million in the fourth quarter 2022, compared to $141.7 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $22.4 million in separately identified fuel surcharges, compared to $16.1 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage which totaled $22.5 million during the fourth quarter 2022, compared to $35.7 million one year earlier. The average operating revenue per load, excluding fuel surcharges, increased 15.1%; however, load volumes decreased 25.7% year-over-year. Fourth quarter 2022 income from operations decreased $2.7 million to $11.1 million, compared to $13.8 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the fourth quarter 2022 was 9.0%, compared to 9.7% one year earlier.

Trucking

Fourth Quarter 2022 Operating Revenues:  $89.0 million, 12.3% decrease
Fourth Quarter 2022 Operating Income:  $5.7 million, 6.5% operating margin

In the trucking segment, fourth quarter 2022 operating revenues decreased 12.3% to $89.0 million, compared to $101.5 million for the same period last year. Fourth quarter 2022 trucking segment revenues included $36.5 million of brokerage services, compared to $38.1 million during the same period last year. Also included in our trucking segment revenues were $8.1 million in separately identified fuel surcharges during the fourth quarter 2022, compared to $6.8 million in fuel surcharges during the same period last year. On a year-over-year basis, the average operating revenue per load, excluding fuel surcharges, increased 24.1%; however, load volumes declined 32.9% as we rationalized certain underperforming operations in this segment. Income from operations in the fourth quarter 2022 increased $4.6 million to $5.7 million compared to $1.1 million during the same period last year. Fourth quarter 2021 trucking segment results included an additional $6.0 million in previously disclosed pre-tax charges. As a percentage of revenue, operating margin in the trucking segment for the fourth quarter 2022 was 6.5% compared to 1.1% during the same period last year. The additional previously disclosed pre-tax charges recorded in the fourth quarter 2021 adversely impacted the trucking segment's operating margin by 590 basis points. 

Company-managed Brokerage

Fourth Quarter 2022 Operating Revenues:  $39.6 million, 36.2% decrease
Fourth Quarter 2022 Operating Income:  $0.9 million, 2.3% operating margin

Fourth quarter 2022 operating revenues in the company-managed brokerage segment decreased 36.2% to $39.6 million compared to $62.0 million for the same period last year. Company-managed brokerage segment average operating revenue per load, excluding fuel surcharges, decreased 14.8% and load volumes declined 19.9% on a year-over-year basis. Fourth quarter 2022 income from operations in the company-managed brokerage segment was $0.9 million which compares to $2.5 million one year earlier.  As a percentage of revenue, operating margin for the fourth quarter 2022 was 2.3% compared to 4.0% 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 March 6, 2023 and is expected to be paid on April 3, 2023.

Other Matters 

As of December 31, 2022, Universal held cash and cash equivalents totaling $47.2 million, and $10.0 million in marketable securities. Outstanding debt at the end of the fourth quarter 2022 was $382.9 million and capital expenditures totaled $31.3 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, February 10, 2023

Call Toll Free:

(877) 270-2148

International Dial-in:

+1 (412) 902-6510

Conference ID:

10175013

A replay of the conference call will be available through February 17, 2023, by calling (877) 344-7529 (toll free) or +1 (412) 317-0088 (toll) and using encore replay code 3803897. The call will also be available on investors.universallogistics.com.

About Universal:

Universal Logistics Holdings, Inc. ("Universal") is a holding company that owns subsidiaries engaged in providing a variety of customized transportation and logistics solutions throughout the United States, and in Mexico, Canada and Colombia.  Our operating subsidiaries provide customers with supply chain solutions that can be scaled to meet their changing demands and volumes. Universal's consolidated subsidiaries offer customers a broad array of services across the 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



Year Ended




December 31,



December 31,




2022



2021



2022



2021


Operating revenues:













Truckload services


$

54,044



$

64,838



$

230,696



$

248,878


Brokerage services



76,092




100,143




368,880




401,823


Intermodal services



123,077




141,723




591,946




473,059


Dedicated services



83,039




54,003




324,589




204,102


Value-added services



122,470




106,665




499,345




423,118


Total operating revenues



458,722




467,372




2,015,456




1,750,980















Operating expenses:













Purchased transportation and equipment rent



179,197




224,516




847,414




824,789


Direct personnel and related benefits



130,936




119,720




522,659




456,643


Operating supplies and expenses



44,554




35,779




177,440




149,394


Commission expense



8,876




8,914




40,288




33,894


Occupancy expense



10,941




10,380




41,286




37,286


General and administrative



11,903




9,783




46,528




39,648


Insurance and claims



5,825




18,847




22,749




38,829


Depreciation and amortization



18,324




15,657




76,657




67,537


Total operating expenses



410,556




443,596




1,775,021




1,648,020


Income from operations



48,166




23,776




240,435




102,960


Interest expense, net



(5,313)




(2,510)




(16,156)




(11,599)


Other non-operating income



1,467




247




1,143




7,220


Income before income taxes



44,320




21,513




225,422




98,581


Provision for income taxes



10,874




5,314




56,790




24,848


Net income


$

33,446



$

16,199



$

168,632



$

73,733















Earnings per common share:













Basic


$

1.27



$

0.60



$

6.37



$

2.74


Diluted


$

1.27



$

0.60



$

6.37



$

2.74















Weighted average number of common shares outstanding:













Basic



26,278




26,919




26,469




26,919


Diluted



26,311




26,923




26,489




26,929















Dividends declared per common share:


$

0.105



$

0.105



$

0.420



$

0.420


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands)




December 31,
2022



December 31,
2021


Assets







Cash and cash equivalents


$

47,181



$

13,932


Marketable securities



10,000




8,031


Accounts receivable - net



350,720




341,398


Other current assets



51,751




57,334


Total current assets



459,652




420,695


Property and equipment - net



391,154




345,583


Other long-term assets - net



352,872




371,213


Total assets


$

1,203,678



$

1,137,491









Liabilities and shareholders' equity







Current liabilities, excluding current maturities of debt


$

221,598



$

251,550


Debt - net



378,500




427,348


Other long-term liabilities



156,650




156,383


Total liabilities



756,748




835,281


Total shareholders' equity



446,930




302,210


Total liabilities and shareholders' equity


$

1,203,678



$

1,137,491


 

UNIVERSAL LOGISTICS HOLDINGS, INC.

Unaudited Summary of Operating Data




Thirteen Weeks Ended



Year Ended




December 31,



December 31,




2022



2021



2022



2021


Contract Logistics Segment:













Number of dedicated transportation loads (a)



152,821




145,127




619,673




594,748


Average number of value-added direct employees



5,121




5,005




5,079




4,534


Average number of value-added full-time equivalents



1,153




1,322




1,323




1,448


Number of active value-added programs



63




63




63




63















Intermodal Segment:













Number of loads



116,475




156,736




552,398




665,088


Average operating revenue per load, excluding fuel surcharges


$

685



$

595



$

702



$

522


Average number of tractors



2,333




2,056




2,223




2,042


Number of depots



9




12




9




12















Trucking Segment:













Number of loads



45,233




67,440




199,712




288,378


Average operating revenue per load, excluding fuel surcharges


$

1,831



$

1,475



$

1,807



$

1,356


Average number of tractors



898




1,234




899




1,299


Average length of haul



422




374




403




372















Company-Managed Brokerage Segment:













Number of loads (b)



21,979




27,434




90,432




121,944


Average operating revenue per load (b)


$

1,684



$

1,976



$

1,893



$

1,845


Average length of haul (b)



613




533




598




553



(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



Year Ended




December 31,



December 31,




2022



2021



2022



2021


Operating Revenues by Segment:













Contract logistics


$

205,509



$

160,668



$

823,934



$

627,220


Intermodal



123,077




141,723




591,946




473,059


Trucking



88,991




101,474




392,639




403,312


Company-managed brokerage



39,596




62,035




200,536




242,794


Other



1,549




1,472




6,401




4,595


Total


$

458,722



$

467,372



$

2,015,456



$

1,750,980















Income from Operations by Segment:













Contract logistics


$

30,137



$

6,067



$

118,437



$

44,809


Intermodal



11,114




13,799




83,640




30,379


Trucking



5,743




1,105




27,564




19,607


Company-managed brokerage



897




2,466




9,993




7,122


Other



275




339




801




1,043


Total


$

48,166



$

23,776



$

240,435



$

102,960


 

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



Year Ended




December 31,



December 31,




2022



2021



2022



2021




( in thousands)



( in thousands)


EBITDA













Net income


$

33,446



$

16,199



$

168,632



$

73,733


Income tax expense



10,874




5,314




56,790




24,848


Interest expense, net



5,313




2,510




16,156




11,599


Depreciation



14,617




12,248




62,275




53,650


Amortization



3,707




3,409




14,382




13,887


EBITDA


$

67,957



$

39,680



$

318,235



$

177,717















EBITDA margin (a)



14.8

%



8.5

%



15.8

%



10.1

%


(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.

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