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Universal Truckload Services, Inc. Reports Second Quarter 2013 Financial Results

   Universal Truckload Services, Inc. Reports Second Quarter 2013 Financial
                                   Results

PR Newswire

WARREN, Mich., July 25, 2013

WARREN, Mich., July 25, 2013 /PRNewswire/ --Universal Truckload Services,
Inc. (NASDAQ: UACL) announced today it earned $0.47 per basic and diluted
share in the second quarter ended June 29, 2013 on net income of $14.2
million. This compares to pro forma earnings per share of $0.39 per basic and
diluted share on pro forma net income of $11.7 million, and $0.52 per basic
and diluted share on reported net income of $15.7 million during the second
quarter of 2012.

As reported, our income from operations increased 22.8%, to $23.6 million or
8.9% of operating revenues for the second quarter of 2013, compared to $19.2
million or 7.3% of operating revenues for the second quarter of 2012.
However, after excluding certain capital markets cost incurred in the second
quarter of 2012, income from operations increased 11.8%, compared to adjusted
income from operations totaling $21.1 million or 8.0% of operating revenues
for the second quarter of 2012.

Total operating revenues decreased slightly to $264.2 million for the thirteen
weeks ended June 29, 2013, compared to $265.0 million in the second quarter of
2012. Demand for our intermodal and value-added services continued to grow in
the second quarter of 2013 compared to the second quarter of 2012, however
this growth was outpaced by reduced demand for transportation services. In
the second quarter of 2013, intermodal services increased 15.5% and
value-added services increased 15.0%, while transportation services decreased
6.3% compared to the same period last year.

"We are starting to see some traction in our transportation services in the
second quarter of 2013," stated Universal's President, Don Cochran. "However,
our load count continues to lag behind the levels we saw last year by about
9.5%. Our intermodal and value-added service categories continue to grow, and
we are encouraged by the improvements we have made in our operating income.
Though we continue to experience slow, tentative demand in certain markets, we
remain confident in executing our long-term growth strategy and continually
seek ways to improve our profitability."

Our consolidated financial statements for all periods presented include the
results of LINC Logistics Company, which we acquired in the fourth quarter of
2012. Our net income and earnings per share as reported declined. However,
this was primarily due to the change in tax status of LINC. LINC was an "S"
corporation for federal income tax purposes prior to October 1, 2012. As a
result, our effective tax rate increased to 38.0% in the second quarter of
2013, compared to 17.7% in the second quarter of 2012.

We calculate and report selected financial metrics in connection with lending
arrangements, or 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." Our adjusted EBITDA increased 11.8% to $28.6 million for the
thirteen weeks ended June 29, 2013, from $25.6 million for the thirteen weeks
ended June 30, 2012. Expressed as a percentage of operating revenues, second
quarter 2013 adjusted EBITDA was 10.8%, compared to 9.7% for the second
quarter of 2012. For the second quarter of 2013, trends in adjusted EBITDA
are substantially similar to trends in adjusted income from operations.

As of June 29, 2013, we held cash and cash equivalents totaling $6.2 million
and marketable securities totaling $10.2 million. Outstanding debt at the end
of the second quarter of 2013 totaled $128.0 million. Due to recent debt
market volatility, we have suspended our previously-announced initiative to
enhance the flexibility of our capital structure through a private placement
of senior secured notes.

Separately, Universal Truckload Services, Inc. announced today that its Board
of Directors has approved a new cash dividend policy, which anticipates a
total annual dividend of $0.28 per share of common stock, payable in quarterly
increments of $0.07 per share of common stock. In connection with the new
policy, our Board of Directors declared a quarterly cash dividend of $0.07 
per share of common stock, which is payable to shareholders of record at the
close of business on August 5, 2013 and is expected to be paid on August 15,
2013. Declaration of future cash dividends, and the establishment of record
and payment dates, are subject to final determination by the Board of
Directors each quarter after its review of our financial condition, results of
operations, capital requirements, any legal or contractual restrictions on the
payment of dividends and other factors the Board of Directors deems relevant.

Conference call:

We invite you to participate in a conference call on Friday, July 26, 2013 at
10:00 a.m. Eastern Time where management will discuss second quarter 2013
financial performance. Hosting the call will be Scott Wolfe, Chief Executive
Officer, Don Cochran, President, and David Crittenden, Chief Financial
Officer.

To participate: Please call (877) 866-3199 (toll free) or (660) 422-4956
(toll) and provide conference ID 22187381.

To listen to an audio replay: Please call (855) 859-2056 (toll free) or (404)
537-3406 (toll) and enter conference ID  22187381, or locate the link in the
investor page at: www.goutsi.com. Audio replay is available through August
26, 2013. 

About Universal:

Universal Truckload Services, Inc. is a leading asset-light provider of
customized transportation and logistics solutions throughout the United
States, Mexico and Canada. We provide our customers with supply chain
solutions that can be scaled to meet their changing demands and volumes. We
offer our customers a broad array of services across their entire supply
chain, including transportation, value-added, and intermodal services. Our
customized solutions and flexible business model are designed to provide us
with a highly variable cost structure.

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      Twenty-six Weeks Ended
                            June 29,     June 30,     June 29,     June 30,
                            2013         2012         2013         2012
Operating revenues:
Transportation services     $         $          $         $  
                            179,439      191,431      346,366      376,821
Value-added services        51,181       44,494       98,951       89,752
Intermodal services         33,552       29,043       66,964       54,387
Total operating revenues    264,172      264,968      512,281      520,960
Operating expenses:
Purchased transportation    141,640      151,950      276,154      297,041
and equipment rent
Direct personnel and        45,652       41,768       88,999       84,924
related benefits
Commission expense          9,787        10,699       19,122       20,940
Operating expense
(exclusive of items shown   19,715       17,664       38,875       35,400
separately)
Occupancy expense           5,300        4,924        10,262       9,908
Selling, general and        8,739        9,276        16,541       16,714
administrative
Insurance and claims        4,704        4,962        9,382        10,460
Depreciation and            5,006        4,477        10,066       8,930
amortization
Total operating expenses    240,543      245,720      469,401      484,317
Income from operations      23,629       19,248       42,880       36,643
Interest expense, net       (928)        (793)        (2,030)      (1,589)
Other non-operating income  127          668          261          1,172
Income before provision     22,828       19,123       41,111       36,226
for income taxes
Provision for income taxes  8,674        3,378        15,583       6,042
Net income                  $        $         $        $   
                            14,154       15,745       25,528       30,184
Earnings per common share:
Basic                       $       $       $       $     
                             0.47       0.52          0.85       1.00
Diluted                     $       $       $       $     
                             0.47       0.52          0.85       1.00
Weighted average number of
common shares outstanding:
Basic                       30,054       30,022       30,054       30,043
Diluted                     30,196       30,022       30,196       30,043
Pre-merger dividends paid   $       $       $       $     
per common share:              -        -           -      1.00
Pro Forma earnings per
common share - "C"
corporation status:
Pro Forma provision for
income taxes due to LINC    $       $        $       $    
Logistics Company              -     4,029           -     8,032
conversion to "C"
corporation
Pro Forma net income        $         $         $        $   
                            14,154      11,716       25,528       22,152
Earnings per common share:
Basic                     $       $       $       $     
                            0.47        0.39          0.85       0.74
Diluted                     $       $       $       $     
                            0.47        0.39          0.85       0.74



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
                                        June 29,          December 31,

                                        2013              2012
Assets
Cash and cash equivalents               $     6,177  $       2,554
Marketable securities                   10,249            9,962
Accounts receivable - net               127,527           118,903
Other current assets                    39,187            37,719
Total current assets                    183,140           169,138
Property and equipment - net            122,814           127,791
Other long-term assets - net            29,428            30,440
Total assets                            $   335,382    $     327,369
Liabilities and shareholders' equity
Total current liabilities               $   105,929    $     103,717
Total long-term liabilities             146,146           166,280
Total liabilities                       252,075           269,997
Total shareholders' equity              83,307            57,372
Total liabilities and shareholders'     $   335,382    $     327,369
equity



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data
                          Thirteen Weeks Ended        Twenty-six Weeks Ended
                          June 29,       June 30,     June 29,     June 30,
                          2013           2012         2013         2012
Average Headcount
 Employees                3,540          2,484        3,208        2,488
 Full time equivalents    1,650          1,983        1,856        1,911
  Total               5,190          4,467        5,064        4,399
Average number of
tractors
 Provided by              3,338          3,328        3,356        3,308
 owner-operators
 Owned                    687            617          685          612
 Third party lease        65             40           55           40
  Total               4,090          3,985        4,096        3,960
Transportation Revenues:
 Average operating        $        $       $       $     
 revenues per loaded      2.75           2.77       2.72       2.74
 mile (a)
 Average operating
 revenues per loaded
 mile,
    excluding fuel
    surcharges, where     $        $       $       $     
    separately            2.36           2.39       2.34       2.37
    identifiable (a)
 Average operating        $         $       $       $     
 revenues per load (a)    1,002           994        999        990
 Average operating
 revenues per load,
 excluding
    fuel surcharges,      $        $       $       $     
    where separately       859            857        857        857
    identifiable (a)
 Average length of haul   364            358          367          362
 (a) (b)
 Number of loads (a)      158,274        174,919      309,315      346,118
Value Added Services:
 Number of facilities
 (d)
    Customer provided     17             13           17           13
    Company leased        27             27           27           27
     Total            44             40           44           40
Intermodal Revenues:
 Drayage (in thousands)   $          $        $        $    
                          27,771        24,476      52,633      45,710
 Domestic Intermodal (in  3,220          1,956        9,168        3,347
 thousands)
 Depot (in thousands)     2,561          2,611        5,163        5,330
  Total (in           $          $        $        $    
 thousands)               33,552        29,043      66,964      54,387
 Average operating        $        $       $       $     
 revenues per loaded      4.49           4.53       4.47       4.39
 mile (c)
 Average operating
 revenues per loaded
 mile,
    excluding fuel
    surcharges, where     $        $       $       $     
    separately            3.62           3.65       3.59       3.54
    identifiable (c)
 Average operating        $        $       $       $     
 revenues per load (c)     339            304        330        293
 Average operating
 revenues per load,
 excluding
    fuel surcharges,      $        $       $       $     
    where separately       273            244        264        236
    identifiable (c)
 Number of loads (c)     82,000         80,580       159,657      155,843
 Number of container      11             10           11           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.

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 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 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  Twenty-six Weeks Ended
                                  June 29,    June 30,  June 29,     June 30,
                                  2013        2012      2013         2012
                                  ( in thousands)       ( in thousands)
Adjusted income from operations
Income from operations            $ 23,629    $ 19,248  $ 42,880     $ 36,643
Suspended capital markets         -           1,882     -            1,882
activity (a)
Adjusted income from operations   $ 23,629    $ 21,130  $ 42,880     $ 38,525
Operating margin (b)              8.9%        7.3%      8.4%         7.0%
Adjusted operating margin (b)     8.9%        8.0%      8.4%         7.4%
Adjusted EBITDA
Net income                        $ 14,154    $ 15,745  $ 25,528     $ 30,184
Provision for income taxes        8,674       3,378     15,583       6,042
Interest expense, net             928         793       2,030        1,589
Depreciation and amortization     5,006       4,477     10,066       8,930
Other non-operating income        (127)       (668)     (261)        (1,172)
EBITDA                            28,635      23,725    52,946       45,573
Suspended capital markets         -           1,882     -            1,882
activity (a)
Adjusted EBITDA                   $ 28,635    $ 25,607  $ 52,946     $ 47,455
EBITDA margin (b)                 10.8%       9.0%      10.3%        8.7%
Adjusted EBITDA margin (b)        10.8%       9.7%      10.3%        9.1%

       Represents expenses incurred as a result of LINC's preparations for an
(a)  IPO in early 2012. When the IPO efforts were abandoned in May 2012,
       the costs were then taken as a charge to income.
       Operating margin, adjusted operating margin, EBITDA margin, and
       adjusted EBITDA margin are computed by dividing income from operations,
(b) 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:

  oAdjusted income from operations and adjusted EBITDA do not reflect our
    cash expenditures, or future requirements, for capital expenditures or
    contractual commitments;
  oAdjusted income from operations and adjusted EBITDA do not reflect changes
    in, or cash requirements for, our working capital needs;
  oAdjusted 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;
  oalthough 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;
  oAdjusted 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
  oOther 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://goutsi.com
Contact: David A. Crittenden, Chief Financial Officer, DCrittenden@goutsi.com,
(586) 467-1427