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

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

PR Newswire

WARREN, Mich., Oct. 24, 2013

WARREN, Mich., Oct. 24, 2013 /PRNewswire/ --Universal Truckload Services,
Inc. (NASDAQ: UACL) today reported third quarter 2013 net income of $13.7
million, or $0.46 per basic and diluted share, on total operating revenues of
$261.7 million. This compares to pro forma net income of $12.0 million, or
$0.40 per basic and diluted share, during the third quarter of 2012 on total
operating revenues of $256.9 million. Net income as reported for the third
quarter of 2012 was $15.1 million, or $0.50 per basic and diluted share.

Income from operations increased 19.0% to $22.5 million or 8.6% of operating
revenues for the third quarter of 2013. This compares to $18.9 million or
7.4% of operating revenues for the third quarter of 2012. Demand for
value-added services continues to expand, growing at a rate of 16.3% compared
to the same period last year. Though still soft, we have seen some
stabilization in our transportation services, which declined 2.1% compared to
the third quarter of 2012. Intermodal services revenue continues to grow,
increasing 6.0% compared to the same period last year, although not as quickly
as in recent quarters.

Universal's Chief Executive Officer, Scott Wolfe commented, "Our third quarter
2013 operating results and financial performance are in line with our
expectations. Despite the heightened level of economic uncertainty due to the
unsettling federal budget and debt limit debates, which we think may moderate
demand from our commercial customers, we remain focused on providing the
highest level of services to our customers and on continuing our track record
of profitable growth. We do anticipate under performance in our government
business and metals, but we are cautiously optimistic that the impact will be
modest and short-term in nature."

Our consolidated financial statements for all periods presented include the
results of LINC Logistics Company, which we acquired one year ago. On an
as-reported basis, our net income and earnings per share have declined.
However, this is primarily due to the change in LINC's tax status. LINC was
an "S" corporation for federal income tax purposes prior to October 1, 2012.
After various adjustments related to the acquisition, our effective tax rate
was 36.1% in the third quarter of 2013, compared to 22.2% in the third quarter
of 2012. For comparative purposes, our effective tax rate through the second
quarter of 2013 was 37.9%.

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 EBITDA increased 16.3% to $27.2 million for the thirteen weeks
ended September 28, 2013, from $23.3 million for the thirteen weeks ended
September 29, 2012. Expressed as a percentage of operating revenues, third
quarter 2013 EBITDA was 10.4%, compared to 9.1% for the third quarter of 2012.
For the third quarter of 2013, trends in EBITDA are substantially similar to
trends in income from operations.

As of September 28, 2013, we held cash and cash equivalents totaling $5.5
million and marketable securities totaling $10.6 million. Outstanding debt at
the end of the third quarter of 2013 totaled $124.0 million.

Universal Truckload Services, Inc. also announced today that our Board of
Directors has declared a quarterly cash dividend of $0.07  per share of common
stock. The dividend is payable to shareholders of record at the close of
business on November 4, 2013 and is expected to be paid on November 14, 2013.

Conference call:

We invite you to participate in a conference call on Friday, October 25, 2013
at 10:00 a.m. Eastern Time where management will discuss third 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 88327847.

To listen to an audio replay: Please call (855) 859-2056 (toll free) or (404)
537-3406 (toll) and enter conference ID  88327847, or locate the link in the
investor page at: www.goutsi.com. Audio replay is available through November
25, 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.

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        Thirty-nine Weeks Ended
                         September 28,  September    September     September
                                        29,          28,           29,
                         2013           2012         2013          2012
Operating revenues:
Transportation services  $         $       $        $     
                         180,847        184,658      527,213       561,479
Value-added services     47,936         41,207       146,887       130,959
Intermodal services      32,880         31,033       99,844        85,420
Total operating          261,663        256,898      773,944       777,858
revenues
Operating expenses:
Purchased
transportation and       143,436        148,889      419,590       445,930
equipment rent
Direct personnel and     43,898         39,041       132,897       123,965
related benefits
Commission expense       10,132         10,660       29,254        31,600
Operating expense
(exclusive of items      18,946         17,345       57,821        52,745
shown separately)
Occupancy expense        4,661          4,845        14,923        14,753
Selling, general and     7,904          7,639        24,445        24,353
administrative
Insurance and claims     5,523          5,133        14,905        15,593
Depreciation and         4,683          4,454        14,749        13,384
amortization
Total operating          239,183        238,006      708,584       722,323
expenses
Income from operations   22,480         18,892       65,360        55,535
Interest expense, net    (1,094)        (718)        (3,124)       (2,307)
Other non-operating      105            1,186        366           2,358
income
Income before provision  21,491         19,360       62,602        55,586
for income taxes
Provision for income     7,749          4,307        23,332        10,349
taxes
Net income               $        $       $        $     
                         13,742          15,053      39,270       45,237
Earnings per common
share:
Basic                    $        $       $        $     
                           0.46          0.50      1.31       1.51
Diluted                  $        $       $        $     
                           0.46          0.50      1.30       1.51
Weighted average number
of common shares
outstanding:
Basic                    30,065         30,018       30,058        30,034
Diluted                  30,118         30,018       30,099        30,034
Dividends paid per       $        $       $        $     
common share               0.07           -      0.07        -
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                    3,027                   11,059
conversion to "C"
corporation
Pro Forma net income                    $                     $     
                                         12,026                    34,178
Earnings per common
share:
Basic                                 $                     $     
                                           0.40                    1.14
Diluted                                 $                     $     
                                           0.40                    1.14



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
                                    September 28,         December 31,

                                    2013                  2012
Assets
Cash and cash equivalents           $       5,451  $       2,554
Marketable securities               10,641                9,962
Accounts receivable - net           131,089               118,903
Other current assets                32,954                37,719
Total current assets                180,135               169,138
Property and equipment - net        124,001               127,791
Other long-term assets - net        28,491                30,440
Total assets                        $     332,627    $     327,369
Liabilities and shareholders'
equity
Total current liabilities           $      97,381   $     103,717
Total long-term liabilities         140,025               166,280
Total liabilities                   237,406               269,997
Total shareholders' equity          95,221                57,372
Total liabilities and               $     332,627    $     327,369
shareholders' equity



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data
                                  Thirteen Weeks Ended    Thirty-nine Weeks
                                                          Ended
                                  September   September   September  September
                                  28,         29,         28,        29,
                                  2013        2012        2013       2012
Transportation Services:
    Average operating revenues    $       $       $      $    
    per loaded mile (a)                                     
                                  2.84        2.82        2.76       2.76
    Average operating revenues
    per loaded mile,
                   excluding
                   fuel
                   surcharges,    $       $       $      $    
                   where                                    
                   separately     2.47        2.45        2.38       2.40
                   identifiable
                   (a)
    Average operating revenues    $       $       $      $    
    per load (a)                                              
                                  1,030       993        1,010      991
    Average operating revenues
    per load, excluding
                   fuel
                   surcharges,    $       $       $      $    
                   where                                    
                   separately     894        864        869       860
                   identifiable
                   (a)
    Average length of haul (a)    363         352         366        359
    (b)
    Number of loads (a)           154,358     168,976     463,673    515,094
Value Added Services:
    Number of facilities (d)
                   Customer       17          13          17         13
                   provided
                   Company        26          27          26         27
                   leased
                    Total     43          40          43         40
Intermodal Services:
                                  $       $       $      $    
    Drayage (in thousands)          28,647    26,200            
                                                          81,280     71,910
    Domestic Intermodal (in       1,718       1,975       10,886     5,322
    thousands)
    Depot (in thousands)          2,515       2,858       7,678      8,188
     Total (in                $       $       $      $    
    thousands)                      32,880    31,033            
                                                          99,844     85,420
    Average operating revenues    $       $       $      $    
    per loaded mile (c)                                     
                                  4.78        4.33        4.57       4.37
    Average operating revenues
    per loaded mile,
                   excluding
                   fuel
                   surcharges,    $       $       $      $    
                   where                                    
                   separately     3.87        3.49        3.68       3.52
                   identifiable
                   (c)
    Average operating revenues    $       $       $      $    
    per load (c)                                            
                                  378        320        345       302
    Average operating revenues
    per load, excluding
                   fuel
                   surcharges,    $       $       $      $    
                   where                                    
                   separately     307        258        278       244
                   identifiable
                   (c)
    Number of loads (c)          75,715      81,956      235,372    237,799
    Number of container yards     11          10          11         10
    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.
    Excludes storage yards,
(d) terminals and office
    facilities.



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data - Continued
                        Thirteen Weeks Ended          Thirty-nine Weeks Ended
                        September 28,    September    September    September
                                         29,          28,          29,
                        2013             2012         2013         2012
Average Headcount
 Employees              3,636            2,467        3,354        2,481
 Full time equivalents  1,794            2,188        1,829        2,065
  Total             5,430            4,655        5,183        4,546
Average number of
tractors
 Provided by            3,324            3,404        3,345        3,340
 owner-operators
 Owned                  707              638          694          620
 Third party lease      82               40           64           40
  Total             4,113            4,082        4,103        4,000
Operating Revenues by
Segment:
 Transportation         $           $       $       $     
                        181,572          188,388      529,375      559,567
 Logistics              79,977           68,423       244,244      217,986
 Other                  114              87           325          305
                        $           $       $       $     
                        261,663          256,898      773,944      777,858
Income from Operations
by Segment:
 Transportation         $         $       $       $     
                        8,261              8,245     21,481      22,294
 Logistics              15,388           11,240       46,032       34,876
 Other                  (1,169)          (593)        (2,153)      (1,635)
                        $          $       $       $     
                        22,480            18,892      65,360      55,535



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 third 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          Thirty-nine Weeks Ended
                      September 28,  September 29,  September 28,  September
                                                                   29,
                      2013           2012           2013           2012
                      ( in thousands)               ( in thousands)
Adjusted income from
operations
Income from           $        $        $        $     
operations            22,480         18,892         65,360          55,535
Suspended capital     -              -              -              1,882
markets activity (a)
Adjusted income from  $        $        $        $     
operations            22,480         18,892         65,360          57,417
Operating margin (b)  8.6%           7.4%           8.4%           7.1%
Adjusted operating    8.6%           7.4%           8.4%           7.4%
margin (b)
Adjusted EBITDA
Net income            $        $        $        $     
                      13,742         15,053         39,270          45,237
Provision for income  7,749          4,307          23,332         10,349
taxes
Interest expense,     1,094          718            3,124          2,307
net
Depreciation and      4,683          4,454          14,749         13,384
amortization
Other non-operating   (105)          (1,186)        (366)          (2,358)
income
EBITDA                27,163         23,346         80,109         68,919
Suspended capital     -              -              -              1,882
markets activity (a)
Adjusted EBITDA       $        $        $        $     
                      27,163         23,346         80,109          70,801
EBITDA margin (b)     10.4%          9.1%           10.4%          8.9%
Adjusted EBITDA       10.4%          9.1%           10.4%          9.1%
margin (b)

(a) 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.

(b) 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:

  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://www.goutsi.com
Contact: David A. Crittenden, Chief Financial Officer, DCrittenden@goutsi.com,
(586) 467-1427