Third Quarter 2024 Operating Revenues: $426.8 million, 1.3% increase
Third Quarter 2024 Operating Income: $42.6 million, 16.0% increase
Third Quarter 2024 Earnings Per Share: $1.01 per share, 14.7% increase
Declares Quarterly Dividend: $0.105 per share

WARREN, Mich., Oct. 24, 2024 /PRNewswire/ -- Universal Logistics Holdings, Inc. (NASDAQ:ULH) today reported consolidated third quarter 2024 net income of $26.5 million, or $1.01 per basic and diluted share, on total operating revenues of $426.8 million. This compares to net income of $23.0 million, or $0.88 per basic and diluted share, during third quarter 2023 on total operating revenues of $421.3 million.

In the third quarter 2024, Universal's operating income increased $5.8 million to $42.6 million, compared to $36.8 million in the third quarter one year earlier. As a percentage of operating revenue, operating margin for the third quarter 2024 was 10.0%, compared to 8.7% during the same period last year. EBITDA, a non-GAAP measure, increased $16.2 million during the third quarter 2024 to $72.9 million, compared to $56.7 million one year earlier. As a percentage of operating revenue, EBITDA margin for the third quarter 2024 was 17.1%, compared to 13.5% during the same period last year. In August 2024, Universal ceased operations of its company-managed brokerage business. During the third quarter of 2024, this business unit reported pre-tax losses of approximately $8.6 million, including $2.8 million of non-cash impairment charges. These losses adversely impacted the Company's operating margin by 200 bps and net income by $6.4 million, or $0.24 per basic and diluted share. Excluding the impact of these charges, the Company's adjusted earnings during the third quarter of 2024 were $1.25 per basic and diluted share. During the third quarter of 2024, the Company recorded total impairment charges of $3.7 million.

"Universal's diverse service offerings continue to be a strategic advantage, consistently driving stand-out results in our space," commented Tim Phillips, Universal's CEO. "Our contract logistics segment once again delivered outstanding results and remains the key to our success. I am also excited to have recently acquired Parsec, a market-leading provider of rail terminal management services, which allows our contract logistics segment to penetrate new verticals and grow our core logistics service offerings. Our trucking segment also performed well during the quarter and continues to show strong demand for our specialized, heavy-haul solution. While I am pleased with Universal's overall performance, the third quarter wasn't without its challenges. We continue to navigate a deeply depressed freight environment, and we also made the difficult but necessary decision to close our company-managed brokerage operation. We remain committed to making sound business decisions and executing on our strategy to ensure Universal's continued, long-term success."

Segment Information:

Contract Logistics

Third Quarter 2024 Operating Revenues: $245.2 million, 17.8% increase
Third Quarter 2024 Operating Income: $45.6 million, 18.6% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, third quarter 2024 operating revenues increased 17.8% to $245.2 million, compared to $208.1 million for the same period last year. Third quarter 2024 revenues included $36.8 million attributable to our specialty development project in Stanton, TN. At the end of the third quarter 2024, we managed 70 value-added programs compared to 73 at the end of the third quarter 2023. Included this segment's revenues were $7.0 million in separately identified fuel surcharges from dedicated transportation services, compared to $9.1 million during the same period last year. Third quarter 2024 income from operations increased $10.5 million to $45.6 million, compared to $35.1 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment for the third quarter 2024 was 18.6%, compared to 16.9% during the same period last year.

Intermodal

Third Quarter 2024 Operating Revenues: $77.6 million, 11.8% decrease
Third Quarter 2024 Operating (Loss): $(1.1) million, (1.5)% operating margin

Operating revenues in the intermodal segment decreased 11.8% to $77.6 million in the third quarter 2024, compared to $88.0 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $10.0 million in separately identified fuel surcharges, compared to $12.7 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage, which totaled $8.9 million during the third quarter 2024, compared to $9.9 million one year earlier. Load volumes declined 13.2%, while the average operating revenue per load, excluding fuel surcharges, increased 1.8% on a year-over-year basis. In the third quarter 2023, the intermodal segment experienced an operating loss of $(1.1) million compared to an operating loss of $(4.5) million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the third quarter 2023 was (1.5)%, compared to (5.1)% one year earlier.

Trucking

Third Quarter 2024 Operating Revenues: $87.0 million, 10.3% decrease
Third Quarter 2024 Operating Income: $7.1 million, 8.2% operating margin

In the trucking segment, third quarter 2024 operating revenues decreased 10.3% to $87.0 million, compared to $97.1 million for the same period last year. Third quarter 2024 revenues in this segment included $24.3 million of brokerage services, compared to $28.8 million during the same period last year. Also included in our trucking segment revenues were $4.8 million in separately identified fuel surcharges during the third quarter 2024, compared to $6.3 million in fuel surcharges during the same period last year. On a year-over-year basis, load volumes declined 16.1%; however, the average operating revenue per load, excluding fuel surcharges, increased 9.3%, driven by our specialty, heavy-haul wind business. Income from operations in the third quarter 2024 increased $0.5 million to $7.1 million compared to $6.6 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the third quarter 2024 was 8.2% compared to 6.8% during the same period last year.

Cash Dividend

Universal Logistics Holdings, Inc. also announced today that its Board of Directors declared a cash dividend of $0.105 per share of common stock. The dividend is payable to shareholders of record at the close of business on December 2, 2024 and is expected to be paid on January 2, 2025.

Other Matters

As of September 28, 2024, Universal held cash and cash equivalents totaling $11.8 million, and $11.7 million in marketable securities. Outstanding debt at the end of the third quarter 2024 was $561.2 million, and capital expenditures totaled $65.1 million.

Universal calculates and reports selected financial metrics not only for purposes of our lending arrangements but also in an effort 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."

Conference call:

We invite investors and analysts to our quarterly earnings conference call.

Quarterly Earnings Conference Call Dial-in Details:

Time:	10:00 a.m. Eastern Time
Date:	Friday, October 25, 2024
Call Toll Free:	(800) 836-8184
International Dial-in:	+1 (646) 357-8785

A replay of the conference call will be available through November 1, 2024, by calling (888) 660-6345 (toll free) or +1 (646) 517-4150 (toll) and using encore replay code 34027#. The call will also be available on investors.universallogistics.com.

About Universal:

Universal Logistics Holdings, Inc. ("Universal") is a holding company whose subsidiaries provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia. Our operating subsidiaries provide our customers with supply chain solutions that can be scaled to meet their changing demands. We offer our customers a broad array of services across their entire supply chain, including value-added, dedicated, intermodal and trucking services. In this press release, the terms "us," "we," "our," or the "Company" refer to Universal and its consolidated subsidiaries.

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 can be identified by words such as: "expect," "anticipate," "intend," "plan," "goal," "prospect," "seek," "believe," "targets," "project," "estimate," "future," "likely," "may," "should" and similar references to future periods. 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 Universal's reports and filings with the Securities and Exchange Commission. Universal 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 LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data)

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating revenues:
Truckload services	$	63,641	$	69,598	$	172,547	$	167,858
Brokerage services		42,440		56,894		155,714		185,892
Intermodal services		75,558		86,630		230,342		289,241
Dedicated services		87,357		86,701		266,389		258,003
Value-added services		157,837		121,428		555,912		370,225
Total operating revenues		426,833		421,251		1,380,904		1,271,219

Operating expenses:
Purchased transportation and equipment rent		120,700		147,470		382,628		443,434
Direct personnel and related benefits		132,081		134,866		408,381		412,004
Operating supplies and expenses		60,532		43,060		216,914		130,351
Commission expense		6,985		8,334		22,485		24,149
Occupancy expense		11,179		10,913		32,189		33,106
General and administrative		13,037		13,633		41,242		38,967
Insurance and claims		5,681		6,828		20,722		20,795
Depreciation and amortization		30,284		19,386		87,795		57,061
Impairment expense		3,720		—		3,720		—
Total operating expenses		384,199		384,490		1,216,076		1,159,867
Income from operations		42,634		36,761		164,828		111,352
Interest expense, net		(7,416)		(6,495)		(20,378)		(16,590)
Other non-operating income		4		588		2,007		885
Income before income taxes		35,222		30,854		146,457		95,647
Provision for income taxes		8,682		7,807		36,726		24,159
Net income	$	26,540	$	23,047	$	109,731	$	71,488

Earnings per common share:
Basic	$	1.01	$	0.88	$	4.17	$	2.72
Diluted	$	1.01	$	0.88	$	4.17	$	2.72

Weighted average number of common shares outstanding:
Basic		26,318		26,286		26,314		26,284
Diluted		26,353		26,310		26,345		26,311

Dividends declared per common share:	$	0.105	$	0.105	$	0.315	$	0.315

UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands)

	September 28, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	11,834	$	12,511
Marketable securities		11,689		10,772
Accounts receivable - net		300,150		287,947
Other current assets		82,073		54,243
Total current assets		405,746		365,473
Property and equipment - net		697,939		561,088
Other long-term assets - net		451,209		326,962
Total assets	$	1,554,894	$	1,253,523

Liabilities and shareholders' equity
Current liabilities, excluding current maturities of debt	$	211,614	$	189,727
Debt - net		557,450		381,924
Other long-term liabilities		154,848		149,674
Total liabilities		923,912		721,325
Total shareholders' equity		630,982		532,198
Total liabilities and shareholders' equity	$	1,554,894	$	1,253,523

UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Contract Logistics Segment:
Average number of value-added direct employees		5,189		5,439		5,300		5,501
Average number of value-added full-time equivalents		76		300		118		631
Number of active value-added programs		70		73		70		73

Intermodal Segment:
Number of loads (a)		103,970		119,792		317,333		355,016
Average operating revenue per load, excluding fuel surcharges (a)	$	557	$	547	$	559	$	567
Average number of tractors		1,596		2,027		1,629		2,102
Number of depots		8		9		8		9

Trucking Segment:
Number of loads		36,909		43,996		119,220		134,568
Average operating revenue per load, excluding fuel surcharges	$	2,222	$	2,033	$	1,936	$	1,759
Average number of tractors		755		879		790		893
Average length of haul		395		382		373		388

(a) Excludes operating data from freight forwarding division in order to improve the relevance of the statistical data related to our intermodal segment and improve the comparability to our peer companies.

UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data - Continued (Dollars in thousands)

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating Revenues by Segment:
Contract logistics	$	245,194	$	208,129	$	822,301	$	628,228
Intermodal		77,632		87,974		235,649		295,736
Trucking		87,047		97,085		248,142		258,043
Other		16,960		28,063		74,812		89,212
Total	$	426,833	$	421,251	$	1,380,904	$	1,271,219

Income from Operations by Segment:
Contract logistics	$	45,623	$	35,103	$	179,990	$	95,673
Intermodal		(1,127)		(4,470)		(18,058)		2,568
Trucking		7,122		6,558		15,175		14,770
Other		(8,984)		(430)		(12,279)		(1,659)
Total	$	42,634	$	36,761	$	164,828	$	111,352

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 and EBITDA margin, each a non-GAAP measure, as supplemental measures of our performance. We define EBITDA as net income plus (i) interest expense, net, (ii) income taxes, (iii) depreciation, and (iv) amortization. We define EBITDA margin as EBITDA as a percentage of total operating revenues. 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						Thirty-nine Weeks Ended
	September 28, 2024			September 30, 2023			September 28, 2024			September 30, 2023
	( in thousands)						( in thousands)
EBITDA
Net income	$	26,540		$	23,047		$	109,731		$	71,488
Income tax expense		8,682			7,807			36,726			24,159
Interest expense, net		7,416			6,495			20,378			16,590
Depreciation		25,536			16,208			73,490			47,521
Amortization		4,748			3,178			14,305			9,540
EBITDA	$	72,922		$	56,735		$	254,630		$	169,298

EBITDA margin (a)		17.1	%		13.5	%		18.4	%		13.3	%

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

We present EBITDA and EBITDA margin because we believe they assist 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:

EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts;
Although 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
Other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA and EBITDA margin 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 only supplementally on EBITDA and EBITDA margin.

View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-logistics-holdings-reports-third-quarter-2024-financial-results-declares-dividend-302286545.html

SOURCE Universal Logistics Holdings, Inc.

Universal Logistics Holdings Reports Third Quarter 2024 Financial Results; Declares Dividend