Universal Truckload Services, Inc. Reports 2013 Financial Results

      Universal Truckload Services, Inc. Reports 2013 Financial Results

PR Newswire

WARREN, Mich., Feb. 20, 2014

WARREN, Mich., Feb. 20, 2014 /PRNewswire/ --Universal Truckload Services,
Inc. (NASDAQ: UACL) today reported financial results for the year ended
December 31, 2013. Net income was $50.6 million on total 2013 operating
revenues of $1.03 billion. Net income in the fourth quarter of 2013 totaled
$11.3 million on total operating revenue of $259.5 million, compared to $2.5
million of net income on total operating revenue of $259.1 million in the
fourth quarter of 2012.

In the fourth quarter of 2013, demand for value-added services grew 9.5% to
$48.2 million compared to the same period last year. For the year,
value-added services increased 11.5% over 2012. However, fourth quarter
operating income from our logistics segment was dampened by phasing out an
aerospace operation due to reductions in military spending, by additional
scheduled holiday downtime by selected automotive customers compared to one
year earlier, by the late-year launch of a new automotive operation, and due
to an industrial customer's in-sourcing of a value-added services operation.

Demand for flat bed and heavy haul transportation stabilized in recent
quarters. Operating revenues from transportation services totaled $179.8
million for the fourth quarter of 2013, compared to $180.2 million for the
fourth quarter of 2012, which had included above-normal, high margin business
in connection with specialized wind energy shipments and to support recovery
operations on the Eastern Seaboard following Hurricane Sandy.

Revenues from intermodal services declined 9.7% in the fourth quarter of 2013,
to $31.6 million, compared to $35.0 million one year earlier. Revenues for
all of 2013 increased 9.2% to $131.4 million. However, the fourth quarter
2013 comparison to the prior year was challenging due to strong demand for
intermodal services in late 2012 from an affiliated LTL carrier.

Based on reported net income, earnings per basic and diluted shares were $0.38
for the fourth quarter of 2013, and $1.68 per basic and diluted shares for the
full year. Income from operations increased 40.5% to $19.1 million or 7.4% of
operating revenues for the fourth quarter of 2013, compared to $13.6 million
or 5.3% of operating revenues for the fourth quarter of 2012. Our income
before the provision for income taxes reflects $0.7 million in transaction and
other costs related to our acquisition of Westport Axle Corporation on
December 19, 2013. In 2012, we incurred $8.4 million in similar costs related
to our acquisition of LINC Logistics Company on October 1, 2012. Excluding
costs related to these actions, our income from operations decreased 9.7% to
$19.9 million or 7.7% of operating revenues for the fourth quarter of 2013,
compared to $22.0 million or 8.5% of operating revenues during the fourth
quarter of 2012.

Universal's Chief Executive Officer, Scott Wolfe commented, "Our largest
customers performed well throughout 2013, and Universal's overall financial
performance reflects their confidence in us. However, a harsh winter presents
challenges and disruptions to the trucking industry, generally, and to the
supply chain operations of our key customers. Our outlook for the next few
quarters is decidedly mixed, and we are cautious about prospects for near-term
growth. We will continue to invest in our enterprise sales organization,
taking advantage of customer opportunities as they arise."

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."

As of December 31, 2013, we held cash and cash equivalents totaling $10.2
million and marketable securities totaling $11.6 million. Outstanding debt at
year end totaled $237.5 million and obligations pursuant to capital leases
were valued at $4.6 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 March 3, 2014 and is expected to be paid on March 13, 2014.

Conference call:

We invite analysts and investors to participate in a conference call on
Friday, February 21, 2014 at 10:00 AM ET, where management will discuss fourth
quarter 2013 financial performance, current outlook, and trends impacting our
business. Hosting the call will be Scott Wolfe, Chief Executive Officer, Don
Cochran, President, and David Crittenden, CFO.

Dial-in details:

  Call Toll Free: (866) 622-0924
  International Dial-in: +1 (660) 422-4956
  Conference ID: 59437360

A replay of the conference will be available two hours after the call through
March 21, 2014, by calling (855) 859-2056 (toll free) or +1 (800) 585-8367
(toll) and using conference ID 59437360. Additionally, the call will be
available on www.investors.goutsi.com. 

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.

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 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,
                        2013         2012         2013           2012
Operating revenues:
 Transportation        $       $       $         $     
services                179,785      180,171      706,998        741,650
 Value-added services  48,199       44,016       195,086        174,975
 Intermodal services   31,564       34,961       131,408        120,381
Total operating         259,548      259,148      1,033,492      1,037,006
revenues
Operating expenses:
 Purchased
transportation and      140,434      146,563      560,024        592,493
equipment rent
 Direct personnel and  45,544       39,103       178,441        163,069
related benefits
 Commission expense    9,994        10,557       39,248         42,157
 Operating expense
(exclusive of items     21,442       18,372       79,263         71,117
shown separately)
 Occupancy expense     5,126        4,523        20,049         19,275
 Selling, general and  8,601        16,806       33,046         41,159
administrative
 Insurance and claims  4,337        4,749        19,242         20,342
 Depreciation and      4,937        4,854        19,686         18,237
amortization
  Total operating    240,415      245,527      948,999        967,849
expenses
  Income from        19,133       13,621       84,493         69,157
operations
Interest expense, net   (912)        (1,674)      (4,036)        (3,983)
Other non-operating     93           420          459            2,778
income
  Income before
provision for income    18,314       12,367       80,916         67,952
taxes
Provision for income    7,012        9,915        30,344         20,264
taxes
  Net income         $       $       $        $      
                         11,302       2,452    50,572         47,688
Earnings per common
share:
 Basic                 $       $       $        $      
                           0.38      0.08     1.68         1.59
 Diluted               $       $       $        $      
                           0.38      0.08     1.68         1.59
Weighted average
number of common
shares outstanding:
 Basic                 30,083       30,023       30,064         30,032
 Diluted               30,127       30,041       30,160         30,036
Dividends paid per      $       $       $        $      
common share               0.07       -     0.14          -
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                                                $      
                                                                 11,059
 Company conversion
to "C" corporation
 Pro Forma net income                                           $      
                                                                 36,629
 Earnings per common
share:
Basic                                                     $      
                                                                   1.22
  Diluted                                                     $      
                                                                   1.22



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

                                     2013                 2012
Assets
 Cash and cash equivalents          $      10,223  $       2,554
 Marketable securities              11,626               9,962
 Accounts receivable - net          132,001              118,903
 Other current assets               49,539               37,719
 Total current assets           203,389              169,138
 Property and equipment - net       142,656              127,791
 Other long-term assets - net       144,091              30,440
 Total assets                      $     490,136   $     327,369
Liabilities and shareholders'
equity
 Current liabilities, excluding
current maturities of
                                     $      93,896  $     103,717
 capital lease obligations and
debt
 Capital lease obligations          4,643                -
 Debt                               237,500              146,000
 Other long-term liabilities        48,532               20,280
 Total liabilities               384,571              269,997
 Total shareholders' equity      105,565              57,372
 Total liabilities and           $     490,136   $     327,369
shareholders' equity



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data
                            Thirteen Weeks Ended      Year Ended
                            December 31,              December 31,
                            2013         2012         2013         2012
Transportation Services:
 Average operating          $       $       $       $     
 revenues per loaded mile      2.83      2.88      2.78      2.79
 (a)
 Average operating
 revenues per loaded
 mile,
  excluding fuel
 surcharges, where          $       $       $       $     
 separately                    2.43      2.51      2.39      2.42

  identifiable (a)
 Average operating          $       $       $       $     
 revenues per load (a)        1,018      1,005      1,012       995
 Average operating
 revenues per load,
 excluding
  fuel surcharges,      $       $       $       $     
 where separately              874      873      870      863
 identifiable (a)
 Average length of haul     360          349          364          356
 (a) (b)
 Number of loads (a)        155,382      163,163      619,055      678,257
Value Added Services:
 Number of facilities (d)
  Customer provided     17           14           17           14
  Company leased        26           27           26           27
  Total            43           41           43           41
Intermodal Services:
 Drayage (in thousands)     $       $       $       $     
                             27,944      25,393     109,224       97,303
 Domestic Intermodal (in    1,267        7,025        12,153       12,347
 thousands)
 Depot (in thousands)       2,353        2,543        10,031       10,731
  Total (in thousands)  $       $       $       $     
                             31,564      34,961     131,408      120,381
 Average operating          $       $       $       $     
 revenues per loaded mile      4.86      4.43      4.64      4.38
 (c)
 Average operating
 revenues per loaded mile,
  excluding fuel
 surcharges, where          $       $       $       $     
 separately                    3.91      3.24      3.74      3.40

  identifiable (c)
 Average operating          $       $       $       $     
 revenues per load (c)         389      317      356      306
 Average operating
 revenues per load,
 excluding
  fuel surcharges,      $       $       $       $     
 where separately              313      232      286      238
 identifiable (c)
 Number of loads (c)       71,744       80,038       307,116      317,837
 Number of container yards  11           10           11           10
(a) Excludes operating data from Universal Logistics Solutions, Inc.,
Universal Logistics Solutions International, Inc.,

 and Central Global 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.
(c) Excludes operating data from Universal Logistics Solutions, Inc. in order
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.



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data - Continued
                                Thirteen Weeks Ended  Year Ended
                                December 31,          December 31,
                                2013       2012       2013         2012
Average Headcount
     Employees                  3,741      2,492      3,449        2,484
     Full time equivalents      1,764      2,273      1,786        2,182
     Total                      5,505      4,765      5,235        4,666
Average number of tractors
     Provided by                3,335      3,363      3,343        3,314
     owner-operators
     Owned                      721        665        701          640
     Third party lease          127        45         80           45
     Total                      4,183      4,073      4,123        3,999
Operating Revenues by Segment:
     Transportation             $ 176,182  $ 187,746  $ 705,557    $ 747,313
     Logistics                  83,254     71,282     327,498      289,268
     Other                      112        120        437          425
                                $ 259,548  $ 259,148  $ 1,033,492  $ 1,037,006
Income from Operations by
Segment:
     Transportation             $ 7,056    $ 8,329    $ 28,537     $ 30,623
     Logistics                  12,692     14,621     58,724       49,497
     Other                      (615)      (9,329)    (2,768)      (10,963)
                                $ 19,133   $ 13,621   $ 84,493     $ 69,157

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 and other costs
related to our acquisitions of Westport and LINC and 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 transaction and other costs related to our
acquisitions of Westport and 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,
                              2013        2012        2013         2012
                              ( in thousands)         ( in thousands)
Adjusted income from
operations
 Income from operations      $       $       $       $     
                                19,133    13,621   84,493      69,157
 Transaction and other       723         8,369       723          8,369
costs (a)
 Suspended capital markets   -           -           -            1,882
activity (b)
  Adjusted income from    $       $       $       $     
operations                      19,856    21,990   85,216      79,408
 Operating margin (c)        7.4%        5.3%        8.2%         6.7%
 Adjusted operating margin   7.7%        8.5%        8.2%         7.7%
(c)
Adjusted EBITDA
                              $       $       $       $     
 Net income                    11,302            50,572      47,688
                                          2,452
 Provision for income taxes  7,012       9,915       30,344       20,264
 Interest expense, net       912         1,674       4,036        3,983
 Depreciation and            4,937       4,854       19,686       18,237
amortization
 Other non-operating income  (93)        (420)       (459)        (2,778)
  EBITDA                   24,070      18,475      104,179      87,394
 Transaction and other       723         8,369       723          8,369
costs (a)
 Suspended capital markets   -           -           -            1,882
activity (b)
 Adjusted EBITDA          $       $       $       $     
                                24,793    26,844  104,902       97,645
 EBITDA margin (c)           9.3%        7.1%        10.1%        8.4%
 Adjusted EBITDA margin (c)  9.6%        10.4%       10.2%        9.4%
(a) Represents transaction and other costs incurred that were directly
related to the acquisitions of Westport in

 December 2013 and LINC in October 2012.
(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:

  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
 
Press spacebar to pause and continue. Press esc to stop.