Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,262.56 89.32 0.55%
S&P 500 1,842.98 12.37 0.68%
NASDAQ 4,034.16 11.47 0.29%
Ticker Volume Price Price Delta
STOXX 50 3,122.97 31.45 1.02%
FTSE 100 6,565.07 23.46 0.36%
DAX 9,250.86 77.15 0.84%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

Universal Truckload Services, Inc. Reports 2012 Financial Results



      Universal Truckload Services, Inc. Reports 2012 Financial Results

PR Newswire

WARREN, Mich., Feb. 21, 2013

WARREN, Mich., Feb. 21, 2013 /PRNewswire/ -- Universal Truckload Services,
Inc. (NASDAQ: UACL) today announced financial results for the year ended
December 31, 2012.  For the year ended December 31, 2012, operating revenues
increased 4.7%, or $46.3 million, to $1.04 billion from $990.7 million for the
year December 31, 2011.  For the thirteen weeks ended December 31, 2012,
operating revenues increased 4.5%, or $11.2 million, to $259.1 million from
$248.0 million for the thirteen weeks ended December 31, 2011.

Scott Wolfe, who was appointed CEO in December 2012, commented, "2012 was a
year of dramatic transformation for Universal.  Universal concluded the
acquisition of LINC Logistic Company, a leading provider of value-added
logistics and dedicated transportation services, while still growing its
traditional agent-based transportation services in a slowly growing economy. 
The combined financial performance of the company positions us for solid
growth in the year ahead."

Under U.S. generally accepted accounting principles, Universal's acquisition
of LINC is accounted for as a transaction between entities under common
control.  As a result, consolidated financial statements include LINC's
performance for all periods presented.  As reported, Universal's 2012 income
from operations increased 4.7%, or $3.1 million, to $69.2 million for the year
ended December 31, 2012 from $66.1 million for the year ended December 31,
2011.  After excluding transaction fees and other costs associated with the
acquisition of LINC and LINC's previous IPO effort, income from operations
increased $13.3 million, or 20.2%, to $79.4 million.  These adjustments are
described below in the section captioned "Non-GAAP Financial Measures." 
Expressed as a percentage of operating revenues, we achieved an adjusted
operating margin of 7.7% in 2012, compared to 6.7% in 2011.  Our 2012 adjusted
EBITDA increased 16.5%, or $13.8 million, to $97.6 million from $83.8 million
the prior year.  Expressed as a percentage of operating revenues, 2012
adjusted EBITDA was 9.4%, compared to 8.5% one year earlier.

As reported, Universal's income from operations for the fourth quarter ended
December 31, 2012 decreased 8.1%, or $1.2 million, to $13.6 million from $14.8
million for the fourth quarter ended December 31, 2011.  However, after
excluding transaction fees and other costs associated with the acquisition of
LINC and LINC's previous IPO effort, adjusted income from operations increased
$7.2 million, or 48.6%, to $22.0 million.  On an adjusted basis, we achieved
an operating margin of 8.5% of operating revenues for the quarter ended
December 31, 2012, compared to 6.0% for the comparable quarter in 2011.  Our
2012 adjusted EBITDA for the quarter ended December 31, 2012 increased 38.9%,
or $7.5 million, to $26.8 million, from $19.3 million the quarter ended
December 31, 2011.  Adjusted EBITDA for the fourth quarter of 2012 was 10.4%
of operating revenues, compared to 7.8% of operating revenue for the fourth
quarter of 2011.  Included in income before the provision for income taxes for
the year ended December 31, 2011 is $2.8 million in other non-operating
income, which is primarily related to the net gain on our sales of marketable
securities.

Net income for the year ended December 31, 2012 decreased $3.7 million, to
$47.7 million, or $1.59 per basic and diluted share, from $51.4 million for
the year ended December 31, 2011.  Net income for the thirteen weeks ended
December 31, 2012 decreased $8.2 million, to $2.5 million, or $0.08 per basic
and diluted share, from $10.7 million for the thirteen weeks ended December
31, 2011.  Included in 2012 net income is a provision for income taxes that is
based on taxable income, and further reflects the impact of LINC's conversion
from an S-corporation to ownership by a C-corporation on October 1, 2012, and
a related $2.5 million charge reflected in fourth quarter 2012 due to the
recognition of deferred tax liabilities.  Finally, 2012 operating expenses
include $8.4 million in total transaction fees and other costs related to the
acquisition of LINC, representing an approximate $7.9 million impact on net
income, after tax, or $0.26 per basic and diluted share.

In the aggregate, our 2012 operating revenues increase totaling $46.3 million
reflects increases in value-added services, growth in domestic container
freight handling, a new transportation services operation in Pennsylvania, and
other organic growth increases, which include identifiable increases in fuel
surcharges totaling $4.6 million.  Operating revenues from our value-added
services grew 18.4% year-over-year, followed by the growth of our intermodal
services, which were 17.1% higher in 2012 than in 2011.  On an adjusted basis,
our operating margin and EBITDA margin improvements primarily reflect lower
costs for purchase transportation and equipment rent as a percentage of
operating revenues.  This improvement is partially offset by increases in
direct personnel and related benefits.

As of December 31, 2012, Universal held cash and cash equivalents totaling
$2.6 million and marketable securities totaling $10.0 million.  Outstanding
debt as of December 31, 2012 totaled $146.0 million. The aggregate debt
balance reflects $149.1 million of secured borrowings on October 1, 2012
incurred in connection with the acquisition of LINC Logistics Company, net
cash provided by operating activities in the fourth quarter of 2012, capital
expenditures in the period totaling $9.6 million, proceeds from the sale of
marketable securities totaling $1.3 million, and a net working capital
purchase price adjustment totaling $10.1 million that we paid to LINC's
shareholders in November 2012 in accordance with the LINC merger agreement.

Conference call:

We invite you to participate in a conference call on Monday, February 25, 2013
at 10:00 a.m. Eastern Time where management will discuss 2012 financial
performance.  Hosting the call will be Scott Wolfe, Chief Executive Officer
and David Crittenden, Chief Financial Officer.

To participate: Please call (877) 866-3199 (toll free US) or (660) 422-4956
(International) and provide conference ID 14880634.

To listen to an audio replay: Please call (855) 859-2056 (toll free) or (404)
537-3406 (toll) and enter conference ID  14880634, or locate the link in the
investor page at: www.goutsi.com.  Audio replay is available through March 25,
2013.  

About Universal:

Universal Truckload Services, Inc. is a leading asset-light provider of
transportation, value-added and intermodal services throughout the United
States, Canada and Mexico.  Our transportation services include dry van,
flatbed, heavy haul, dedicated, refrigerated, shuttle and switching operations
as well as full service domestic and international freight forwarding, customs
brokerage, final mile and ground expedite.  We offer our customers brokerage
transportation for greater service options and additional capacity.  Our
custom-developed value-added services include material handling,
consolidation, sequencing, sub-assembly, cross-dock services, kitting,
repacking, warehousing and returnable container management.  Intermodal
operations include rail-truck, steamship-truck and support 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      Year Ended
                         December 31,              December 31, 
                         2012         2011         2012            2011
Operating revenues:
Transportation services  $   180,171  $183,280     $   741,650     $740,089
Value-added services     44,016       40,508       174,975         147,814
Intermodal services      34,961       24,198       120,381         102,769
Total operating          $   259,148  $247,986     $1,037,006      $990,672
revenues
Operating expenses:
Purchased
transportation and       146,563      143,772      592,493         581,980
equipment rent
Direct personnel and     39,103       38,926       163,069         145,841
related benefits
Commissions expense      10,557       10,518       42,157          42,593
Operating expense
(exclusive of items
shown                    18,372       16,758       71,117          66,313

separately)
Occupancy expense        4,523        5,473        19,275          18,438
Selling, general and     16,806       7,348        41,159          29,865
administrative
Insurance and claims     4,749        5,895        20,342          21,843
Depreciation and         4,854        4,510        18,237          17,731
amortization
Total operating          245,527      233,200      967,849         924,604
expenses
Income from operations   13,621       14,786       69,157          66,068
Interest expense, net    (1,674)      (570)        (3,983)         (2,158)
Other non-operating      420          378          2,778           1,743
income
Income before provision  12,367       14,594       67,952          65,653
for income taxes
Provision for income     9,915        3,913        20,264          14,207
taxes
Net income               $            $  10,681    $     47,688    $  51,446
                          2,452
Earning per common
share:
Basic                    $            $      0.36  $         1.59  $      1.71
                          0.08
Diluted                  $            $      0.36  $         1.59  $      1.71
                          0.08
Weighted average number
of common shares

outstanding:
Basic                    30,023       30,082       30,032          30,121
Diluted                  30,041       30,082       30,036          30,121
Dividends paid per       $            $         -  $         1.00  $      1.00
common share:            -
Pro Forma earnings per
common share - "C"

corporation status
(unaudited):
Pro Forma provision for
income taxes due to
                         $            $    2,353   $     11,059    $  12,016
LINC Logistics Company   -
conversion to "C"
corporation
Earnings per common
share:
Basic                    $            $      0.28  $         1.22  $      1.31
                          0.08
Diluted                  $            $      0.28  $         1.22  $      1.31
                          0.08

 

UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
                                            December         December

                                            31, 2012         31, 2011
Assets
Cash and cash equivalents                   $         2,554  $      5,511
Marketable securities                       9,962            16,059
Accounts receivable - net                   118,903          112,815
Other current assets                        37,719           37,643
Total current assets                        169,138          172,028
Property and equipment - net                127,791          114,200
Other long-term assets - net                30,440           29,619
Total assets                                $    327,369     $ 315,847
Liabilities and shareholders' equity
Total current liabilities                   $    103,717     $ 113,413
Total long-term liabilities                 166,280          107,563
Total liabilities                           269,997          220,976
Total shareholders' equity                  57,372           94,871
Total liabilities and shareholders' equity  $    327,369     $ 315,847

 

UNIVERSAL TRUCKLOAD SERVICES, INC.
 Unaudited Summary of Operating Data
                               Thirteen Weeks Ended       Year Ended
                               December 31,               December 31, 
                               2012          2011         2012       2011
Average Headcount
    Employees                  2,492         2,496        2,484      2,376
    Full time equivalents      2,273         1,805        2,182      1,605
         Total                 4,765         4,301        4,666      3,981
Average number of tractors
    Provided by                3,363         3,431        3,314      3,402
    owner-operators
    Owned                      665           585          640        582
    Third party lease          45            40           45         40
         Total                 4,073         4,056        3,999      4,024
Transportation Revenues:
    Average operating          $             $            $          $        
    revenues per loaded mile   2.88          2.64           2.79       2.62
    (a)
    Average operating
    revenues per loaded
    mile, 
          excluding fuel       $             $            $          $        
          surcharges (a) (e)   2.51          2.29           2.42       2.27
    Average operating          $             $            $          $        
    revenues per load (a)      1,005          980            995        968
    Average operating
    revenues per load,
    excluding
          fuel surcharges      $             $            $          $        
          (a) (e)               873           849            863        839
    Average length of haul     349           371          356        369
    (a) (b)
    Number of loads (a)        163,163       169,585      678,257    692,790
Value Added Services:
    Number of facilities (d)
          Customer provided    14            15           13         14
          Company leased       27            29           27         27
               Total           41            44           40         41
Intermodal Revenues:
    Drayage (in thousands)     $             $            $          $      
                               25,394        21,727       97,303     92,836
    Domestic Intermodal (in    7,025         -            12,347     -
    thousands)
    Depot (in thousands)       2,542         2,471        10,731     9,933
         Total (in             $             $            $          $    
    thousands)                 34,961        24,198       120,381    102,769
    Average operating          $             $            $          $        
    revenues per loaded mile   4.43          4.19           4.38       4.18
    (c)
    Average operating
    revenues per loaded
    mile,
          excluding fuel       $             $            $          $        
          surcharges (c)       3.52          3.36           3.52       3.42
    Average operating          $             $            $          $        
    revenues per load (c)       317           290            306        308
    Average operating
    revenues per load,
    excluding
          fuel surcharges      $             $            $          $        
          (c)                   252           233            246        252
    Number of loads (c)        80,038        74,830       317,837    301,357
    Number of container        10            10           10         10
    yards
    Excludes operating data from Universal Logistics Solutions, Inc.,
    Universal Logistics Solutions International, Inc., and Central Global
(a) Express, Inc., in order to improve the relevance of the statistical data
    related to our brokerage services and improve the comparability to our
    peer companies.  Also excludes final mile delivery and shuttle service
    loads.
(b) Average length of haul is computed using loaded miles, excluding final
    mile delivery and shuttle service loads.
    Excludes operating data from Universal Logistics Solutions, Inc. in order
(c) to improve the relevance of the statistical data related to our intermodal
    services and improve the comparability to our peer companies. 
(d) Excludes storage yards, terminals and office facilities.
(e) Excludes fuel surcharges where separately identified.

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 adjusted income from operations
and adjusted EBITDA as supplemental measures of our performance.  We define
adjusted income from operations as income from operations adjusted to
eliminate the impact of certain items that we do not consider indicative of
our ongoing operating performance, including transaction fees and other costs
related to the acquisition of LINC and previous costs related to LINC's
capital market activity, which was terminated in the second quarter of 2012. 
We define adjusted EBITDA as net income plus (i) interest expense, net,
(ii) provision for income taxes and (iii) depreciation and amortization, and
less other non-operating income, or EBITDA, further adjusted to eliminate the
impact of certain items that we do not consider indicative of our ongoing
operating performance, including transaction fees and other costs related to
the acquisition of LINC and previous costs related to LINC's capital market
activity. These further adjustments are itemized below. You are encouraged to
evaluate these adjustments and the reasons we consider them appropriate for
supplemental analysis. In evaluating adjusted income from operations and
adjusted EBITDA, you should be aware that in the future we may incur expenses
that are the same as or similar to some of the adjustments in this
presentation.  Our presentation of adjusted income from operations and
adjusted EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items.

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 income from
operations, the most comparable GAAP measure, to adjusted income from
operations; and of net income, the most comparable GAAP measure, to EBITDA and
adjusted EBITDA for each of the periods indicated:

                           Thirteen Weeks Ended           Year Ended
                           December 31,                   December 31, 
                           2012              2011         2012        2011
                           ( in thousands)
Adjusted income from
operations
Income from operations     $                 $            $           $    
                           13,621            14,786       69,157      66,068
Merger transaction         8,369             -            8,369       -
costs (a)
Suspended capital          -                 -            1,882       -
markets activity (b)
Adjusted income from       $                 $            $           $    
operations                 21,990            14,786       79,408      66,068
Operating margin (c)       5.3%              6.0%         6.7%        6.7%
Adjusted operating         8.5%              6.0%         7.7%        6.7%
margin (c)
Adjusted EBITDA
Net income                 $                 $            $           $    
                           2,452             10,681       47,688      51,446
Provision for income       9,915             3,913        20,264      14,207
taxes
Interest expense, net      1,674             570          3,983       2,158
Depreciation and           4,854             4,510        18,237      17,731
amortization
Other non-operating        (420)             (378)        (2,778)     (1,743)
income
EBITDA                     18,475            19,296       87,394      83,799
Merger transaction         8,369             -            8,369       -
costs (a)
Suspended capital          -                 -            1,882       -
markets activity (b)
Adjusted EBITDA            $                 $            $           $    
                           26,844            19,296       97,645      83,799
EBITDA margin (c)          7.1%              7.8%         8.4%        8.5%
Adjusted EBITDA margin     10.4%             7.8%         9.4%        8.5%
(c)
(a) Represents transaction fees and other costs incurred that were directly
related to the acquisition of LINC.
(b) Represents expenses incurred as a result of LINC's preparations for an IPO
in early 2012. When the IPO efforts were abandoned in May 2012, the costs were
then taken as a charge to income.
(c) Operating margin, adjusted operating margin, EBITDA margin, and Adjusted
EBITDA margin are computed by dividing income from operations, adjusted income
from operations, EBITDA, and Adjusted EBITDA, respectively, by total operating
revenues for each of the periods indicated.

We present adjusted income from operations and adjusted EBITDA because we
believe it assists 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.

Adjusted income from operations and adjusted EBITDA have limitations as an
analytical tool. Some of these limitations are:

  o Adjusted income from operations and adjusted EBITDA do not reflect our
    cash expenditures, or future requirements, for capital expenditures or
    contractual commitments;
  o Adjusted income from operations and adjusted EBITDA do not reflect changes
    in, or cash requirements for, our working capital needs;
  o Adjusted income from operations and adjusted EBITDA do not reflect the
    significant interest expense, or the cash requirements necessary to
    service interest or principal payments, on our debts;
  o although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized will often have to be replaced in the
    future, and adjusted EBITDA does not reflect any cash requirements for
    such replacements;
  o Adjusted income from operations and adjusted EBITDA do not reflect the
    impact of certain cash charges resulting from matters we consider not to
    be indicative of our ongoing operations; and
  o Other companies in our industry may calculate adjusted income from
    operations and adjusted EBITDA differently than we do, limiting its
    usefulness as a comparative measure.

Because of these limitations, adjusted income from operations and adjusted
EBITDA 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 using adjusted
income from operations and Adjusted EBITDA only supplementally.

SOURCE Universal Truckload Services, Inc.

Website: http://www.goutsi.com
Contact: David A. Crittenden, Chief Financial Officer, DCrittenden@goutsi.com,
+1-586-467-1427
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement