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Universal Logistics Holdings, Inc. (NASDAQ: ULH) is a leading provider of customized transportation and logistics solutions across the United States, Mexico, Canada, and Colombia. With an asset-light model, Universal offers a broad array of services including truckload, brokerage, intermodal, dedicated services, and value-added logistics. The company operates through four main segments: trucking, intermodal, company-managed brokerage, and contract logistics, with the majority of revenue generated from contract logistics.
Universal prides itself on delivering flexible supply chain solutions tailored to meet the dynamic demands of its customers. The company's recent performance highlights its resilience in a challenging market environment. In the second quarter of 2023, Universal reported total operating revenues of $412.6 million, with a net income of $23.6 million. Although there was a decline from the previous year, the contract logistics segment remained robust, contributing significantly to the company's overall performance.
The contract logistics segment, which includes value-added and dedicated services, saw a slight increase in revenue to $208.8 million, with an improved operating margin of 15.7%. Universal continues to expand its contract logistics footprint, recently securing a significant warehouse logistics program for an all-electric vehicle assembly plant in Detroit.
The intermodal segment faced challenges with a 41.6% revenue drop year-over-year, attributed to decreased load volumes and lower fuel surcharges. Despite these setbacks, Universal remains committed to optimizing its operations and exploring new opportunities for growth.
The trucking segment experienced a 23.7% decrease in revenue to $81.2 million, impacted by lower brokerage services and fuel surcharges. The company-managed brokerage segment also saw a decline in revenues, emphasizing the need for strategic adjustments to counter market pressures.
Universal's financial strength is underscored by its cash and cash equivalents totaling $65.0 million as of July 1, 2023, and ongoing investments in infrastructure and technology to enhance service delivery. The company declared a cash dividend of $0.105 per share, reflecting its commitment to returning value to shareholders.
Looking ahead, Universal is set to expand its operations with a new industrial facility in Roanoke, Virginia, dedicated to bolstering its heavy truck division. This $50 million investment is projected to create 45 new jobs, underscoring the company's growth strategy and dedication to local economic development.
For more detailed financial metrics, including EBITDA and EBITDA margin, Universal provides non-GAAP measures to offer a clearer picture of its operational performance. These metrics are valuable for investors seeking to understand the company's financial health and future prospects.
Universal Logistics Holdings (NASDAQ: ULH) announced that it will release its first quarter 2023 financial results on April 27, 2023, after market close. Subsequently, a quarterly earnings conference call is scheduled for April 28, 2023, at 10:00 a.m. ET. Investors can dial in for the call or access a replay available until May 5, 2023, using provided toll-free and international numbers. The company provides a range of customized transportation and logistics solutions across the US, Canada, Mexico, and Colombia, covering services like truckload, brokerage, intermodal, dedicated, and value-added solutions. The announcement includes forward-looking statements subject to risks and uncertainties that could impact actual results.
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