Universal Truckload Services, Inc. Reports First Quarter 2014 Financial Results

   Universal Truckload Services, Inc. Reports First Quarter 2014 Financial
                                   Results

PR Newswire

WARREN, Mich., April 24, 2014

WARREN, Mich., April 24, 2014 /PRNewswire/ --Universal Truckload Services,
Inc. (NASDAQ: UACL) today reported first quarter 2014 netincome of $8.1
million, or $0.27 per basic and diluted share, on total operating revenues of
$279.4 million. This compares to $11.4 million, or $0.38 per basic and
diluted share, during the first quarter of 2013 on total operating revenues of
$248.1 million.

Included in first quarter 2014 results are $25.3 million of revenues from
Westport Axle Corporation, which we acquired on December 19, 2013. Excluding
results from this acquisition, Universal's operating revenues grew a composite
2.4% in the first quarter of 2014 to $254.1 million, compared to $248.1
million in the first quarter of 2013. Revenues from transportation services
increased to $179.8 million in the fiscal quarter ended March 29, 2014, a 7.7%
increase from the comparable period last year. Revenues from value-added
services, excluding Westport's results, declined $3.5 million in the first
quarter of 2014 compared to the first quarter of 2013. A general increase in
demand for Universal's logistics services and the expansion of services for an
automotive OEM was offset by the wind downs of two value-added operations that
delivered services to industrial and aerospace customers. Our revenues from
intermodal services declined 10.0%, to $30.1 million from $33.4 million in the
first quarter of 2013, primarily due to an anticipated reduction in domestic
intermodal services to a single customer, which had a $5.1 million adverse
impact.

Income from operations declined 24.0%, to $14.6 million or 5.2% of operating
revenues, compared to $19.3 million or 7.8% of operating revenues for the
first quarter of 2013. Income from operations in our transportation segment
decreased 7.1% to $5.3 million or 3.0% of segment operating revenues for the
first quarter of 2014, which compares to $5.7 million or 3.4% of segment
operating revenues for the first quarter of 2013. Income from operations in
our logistics segment, which includes value-added services and dedicated
transportation services, decreased 29.6% to $9.7 million or 9.3% of operating
revenues for the first quarter of 2014. This compares to $13.8 million or
17.5% of operating revenues one year earlier. First quarter 2014 income from
operations in our logistics segment includes $3.0 million from Westport.

Scott Wolfe, Chief Executive Officer, commented, "Universal's first quarter
financial results reflect anticipated top line demand across our business
units, including from Westport, which is benefiting from solid demand for
heavy truck manufacturing. Our truckload transportation business and
intermodal drayage business, in particular, also benefited from good demand in
certain markets throughout the first quarter and improved pricing as the
quarter proceeded.

"Universal's profitability, though, reflects the cost impact and service
performance challenges caused by harsh weather conditions that endured through
February, which especially affected our continuing logistics operations.

"Looking ahead, we anticipate stable demand and a good pricing environment for
our transportation services, particularly in the energy and steel industries,
and a return to normalized margins from the operations that we include and
report in our logistics segment. Revenue growth in value-added services,
which moderated in recent quarters, will depend on conversion of opportunities
in our sales pipeline."

We calculate and report selected financial metrics in connection with lending
arrangements, and also to isolate and separately identify the impact of
corporate development activities, which can include non-operating transaction
costs and amortization of intangible assets recognized as the result of prior
acquisitions. These statistics are described in more detail below in the
section captioned "Non-GAAP Financial Measures."

For the thirteen weeks ended March 29, 2014, our EBITDA decreased 8.4% to
$22.3 million, from $24.3 million for the thirteen weeks ended March 30, 2013.
Expressed as a percentage of operating revenues, first quarter 2014 EBITDA
was 8.0%, compared to 9.8% for the first quarter of 2013. Trends in EBITDA
expressed as a percentage of operating revenues are substantially similar to
trends in income from operations.

As of March 29, 2014, we held cash and cash equivalents totaling $7.3 million
and marketable securities totaling $11.8 million. Outstanding debt totaled
$235.4 million and obligations pursuant to capital leases were valued at $4.3
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 May 5, 2014 and is expected to be paid on May 15, 2014.

Conference call:

We invite analysts and investors to participate in a conference call on
Friday, April 25, 2014 at 10:00 AM ET. During the call, we will discuss
Universal's first quarter 2014 financial performance, the current demand
outlook in key markets we serve, 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: 18551769

A replay of the conference will be available two hours after the call through
May 23, 2014, by calling (855) 859-2056 (toll free) or +1 (800) 585-8367
(toll) and using conference ID 18551769. Additionally, the call will be
available on 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
                                          March 29,           March 30,
                                          2014                2013
Operating revenues:
Transportation services                   $    179,816     $  166,927
Value-added services                      69,480              47,770
Intermodal services                       30,068              33,412
Total operating revenues                  279,364             248,109
Operating expenses:
Purchased transportation and equipment    140,425             134,514
rent
Direct personnel and related benefits     52,901              43,347
Commission expense                        9,731               9,335
Operating expense (exclusive of items     30,490              19,160
shown separately)
Occupancy expense                         6,835               4,962
Selling, general and administrative       10,091              7,802
Insurance and claims                      6,621               4,678
Depreciation and amortization             7,641               5,060
Total operating expenses                  264,735             228,858
Income from operations                    14,629              19,251
Interest expense, net                     (1,575)             (1,102)
Other non-operating income                89                  134
Income before provision for income taxes  13,143              18,283
Provision for income taxes                5,019               6,909
Net income                                $      8,124   $   11,374
Earnings per common share:
Basic                                     $       0.27  $     0.38
Diluted                                   $       0.27  $     0.38
Weighted average number of common shares
outstanding:
Basic                                     30,112              30,054
Diluted                                   30,158              30,196
Dividends paid per common share           $       0.07  $       -



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
                                        March 29, 2014     December 31, 2013
Assets
Cash and cash equivalents               $      7,333  $      10,223
Marketable securities                   11,828             11,626
Accounts receivable - net               154,133            132,001
Other current assets                    48,095             49,539
Total current assets                    221,389            203,389
Property and equipment - net            147,990            142,656
Other long-term assets - net            141,965            144,091
Total assets                            $    511,344    $     490,136
Liabilities and shareholders' equity
Current liabilities, excluding current
maturities of capital lease             $    114,420    $      93,896
obligations and debt
Capital lease obligations               4,295              4,643
Debt                                    235,357            237,500
Other long-term liabilities             46,009             48,532
Total liabilities                       400,081            384,571
Total shareholders' equity              111,263            105,565
Total liabilities and shareholders'     $    511,344    $     490,136
equity



UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data
                                      Thirteen Weeks Ended
                                      March 29,             March 30,
                                      2014                  2013
Transportation Services:
    Average operating revenues per    $       2.96   $      
    loaded mile (a)                                         2.69
    Average operating revenues per
    loaded mile,
            excluding fuel
            surcharges, where         $       2.56   $      
            separately identifiable                         2.31
            (a)
    Average operating revenues per    $      1,049    $       
    load (a)                                                997
    Average operating revenues per
    load, excluding
            fuel surcharges, where                          $       
            separately identifiable   $        905   855
            (a)
    Average length of haul (a) (b)    354                   370
    Number of loads (a)               150,361               151,041
Value Added Services:
    Number of facilities (d)
            Customer provided         18                    16
            Company leased            28                    28
             Total                46                    44
Intermodal Services:
    Drayage (in thousands)            $     26,944     $     24,862
    Domestic Intermodal (in           804                   5,948
    thousands)
    Depot (in thousands)              2,320                 2,602
     Total (in thousands)         $     30,068     $     33,412
    Average operating revenues per    $       5.10   $      
    loaded mile (c)                                         4.44
    Average operating revenues per
    loaded mile,
            excluding fuel
            surcharges, where         $       4.12   $      
            separately identifiable                         3.55
            (c)
    Average operating revenues per    $        398   $       
    load (c)                                                320
    Average operating revenues per
    load, excluding
            fuel surcharges, where                          $       
            separately identifiable   $        322   256
            (c)
    Number of loads (c)              67,621                77,657
    Number of container yards         11                    11
    Excludes operating data from Universal Logistics Solutions, Inc., and
    Universal Logistics Solutions International, Inc., in order to improve the
(a) 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.
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Summary of Operating Data - Continued
                                      Thirteen Weeks Ended
                                      March 29,             March 30,
                                      2014                  2013
Average Headcount
    Employees                         4,208                 2,876
    Full time equivalents             1,619                 2,083
     Total                        5,827                 4,959
Average number of tractors
    Provided by owner-operators       3,294                 3,372
    Owned                             757                   685
    Third party lease                 86                    45
     Total                        4,137                 4,102
Operating Revenues by Segment:
    Transportation                    $    175,349      $    169,542
    Logistics                         103,906               78,462
    Other                             109                   105
                                      $    279,364      $    248,109
Income from Operations by Segment:
    Transportation                    $      5,310    $      5,716
    Logistics                         9,681                 13,754
    Other                             (362)                 (219)
                                      $     14,629     $     19,251



Non-GAAP Financial Measures

In addition to providing consolidated financial statements based on generally
accepted accounting principles in the United States of America (GAAP), we are
providing additional financial measures that are not required by or prepared
in accordance with GAAP (non-GAAP). We present EBITDA as supplemental measures
of our performance. We define 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. You are encouraged to evaluate
these adjustments and the reasons we consider them appropriate for
supplemental analysis.

In accordance with the requirements of Regulation G issued by the Securities
and Exchange Commission, we are presenting the most directly comparable GAAP
financial measure and reconciling the non-GAAP financial measure to the
comparable GAAP measure. Set forth below is a reconciliation of net income,
the most comparable GAAP measure, to EBITDA for each of the periods indicated:



                               Thirteen Weeks Ended
                               March 29,          March 30,
                               2014               2013
                               ( in thousands)
EBITDA
Net income                     $      8,124  $    11,374
Provision for income taxes     5,019              6,909
Interest expense, net          1,575              1,102
Depreciation and amortization  7,641              5,060
Other non-operating income     (89)               (134)
EBITDA                         $     22,270   $    24,311
EBITDA margin (a)              8.0%               9.8%



(a) EBITDA margin is computed by dividing EBITDA by total operating revenues
    for each of the periods indicated.

We present 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.

EBITDA has limitations as an analytical tool. Some of these limitations are:

  oEBITDA does not reflect our cash expenditures, or future requirements, for
    capital expenditures or contractual commitments;
  oEBITDA does not reflect changes in, or cash requirements for, our working
    capital needs;
  oEBITDA does 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 EBITDA does not reflect any cash requirements for such
    replacements; and
  oOther companies in our industry may calculate EBITDA differently than we
    do, limiting its usefulness as a comparative measure.

Because of these limitations, 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 EBITDA only supplementally.



SOURCE Universal Truckload Services, Inc.

Website: http://investors.goutsi.com
Contact: David A. Crittenden, Chief Financial Officer, dcrittenden@goutsi.com,
(586) 467-1427
 
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