Universal Logistics Holdings Reports Fourth Quarter 2024 Financial Results; Declares Dividend
Rhea-AI Summary
Universal Logistics Holdings (ULH) reported Q4 2024 financial results with operating revenues of $465.1 million, a 19.0% increase year-over-year. Operating income rose 12.3% to $38.3 million, while earnings per share decreased 4.9% to $0.77.
The company's contract logistics segment showed strong performance with a 52.7% revenue increase to $307.4 million, including $51.3 million from the Stanton, TN project and $59.5 million from the Parsec acquisition. However, the intermodal segment experienced a 15.9% revenue decline to $73.1 million with an operating loss of $9.7 million.
The trucking segment saw an 11.5% revenue increase to $83.8 million with improved operating margins. The company declared a quarterly dividend of $0.105 per share, payable on April 1, 2025.
Positive
- Operating revenues increased 19.0% YoY to $465.1 million
- Operating income grew 12.3% to $38.3 million
- Contract logistics segment revenue up 52.7% to $307.4 million
- Trucking segment operating margin improved to 6.9% from 3.3%
- EBITDA increased by $18.7 million to $73.5 million
Negative
- Earnings per share decreased 4.9% to $0.77
- Intermodal segment reported $9.7 million operating loss
- Intermodal load volumes declined 15.3%
- Outstanding debt of $762.6 million as of Q4 2024
News Market Reaction
On the day this news was published, ULH declined 19.60%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Fourth Quarter 2024 Operating Revenues:
$465.1 million 19.0% increase - Fourth Quarter 2024 Operating Income:
$38.3 million 12.3% increase - Fourth Quarter 2024 Earnings Per Share:
$0.77 4.9% decrease - Declares Quarterly Dividend:
$0.10 5
In the fourth quarter 2024, Universal's operating income increased
"Universal notched another solid performance during the fourth quarter, making the full-year 2024 our second best financial performance in company history," stated Tim Phillips, Universal's CEO. "Our contract logistics segment continues to be the cornerstone of our success, and we remain committed to making smart investments in this space, such as our recent acquisition of Parsec. Strong demand for our specialized, heavy-haul services has also enabled our trucking segment to produce solid results during the quarter, and throughout all of 2024. While we are proud of our many successes, we remain focused on improving underperforming operations, gaining efficiencies and maintaining a high-level of cost control. 2024 was an exciting, and challenging year for Universal, and I am deeply thankful for the talented team who guided us through. We will keep pushing forward, delivering exceptional service to our customers while continuing to execute our long-term strategy."
Segment Information:
Contract Logistics
- Fourth Quarter 2024 Operating Revenues:
$307.4 million 52.7% increase - Fourth Quarter 2024 Operating Income:
$39.1 million 12.7% operating margin
In the contract logistics segment, which includes our value-added and dedicated services, fourth quarter 2024 operating revenues increased
Intermodal
- Fourth Quarter 2024 Operating Revenues:
$73.1 million 15.9% decrease - Fourth Quarter 2024 Operating (Loss):
$(9.7) million
Operating revenues in the intermodal segment decreased
Trucking
- Fourth Quarter 2024 Operating Revenues:
$83.8 million 11.5% increase - Fourth Quarter 2024 Operating Income:
$5.8 million 6.9% operating margin
In the trucking segment, fourth quarter 2024 operating revenues increased
Cash Dividend
Universal Logistics Holdings, Inc. also announced today that its Board of Directors has declared a cash dividend of
Other Matters
As of December 31, 2024, Universal held cash and cash equivalents totaling
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, February 7, 2025 |
Call Toll Free: | (800) 836-8184 |
International Dial-in: | +1 (646) 357-8785 |
A replay of the conference call will be available through February 14, 2025, by calling (888) 660-6345 (toll free) or +1 (646) 517-4150 (toll) and using encore replay code 40331#. 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
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 | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Operating revenues: | ||||||||||||||||
Truckload services | $ | 61,850 | $ | 46,015 | $ | 234,397 | $ | 213,874 | ||||||||
Brokerage services | 25,545 | 58,132 | 181,259 | 244,024 | ||||||||||||
Intermodal services | 70,379 | 85,426 | 300,721 | 374,667 | ||||||||||||
Dedicated services | 77,821 | 85,541 | 344,210 | 343,543 | ||||||||||||
Value-added services | 229,536 | 115,806 | 785,448 | 486,031 | ||||||||||||
Total operating revenues | 465,131 | 390,920 | 1,846,035 | 1,662,139 | ||||||||||||
Operating expenses: | ||||||||||||||||
Purchased transportation and equipment rent | 100,320 | 127,779 | 482,948 | 571,213 | ||||||||||||
Direct personnel and related benefits | 174,871 | 130,775 | 583,251 | 542,779 | ||||||||||||
Operating supplies and expenses | 78,644 | 40,643 | 295,558 | 170,994 | ||||||||||||
Commission expense | 4,800 | 7,221 | 27,285 | 31,370 | ||||||||||||
Occupancy expense | 12,020 | 11,195 | 44,209 | 44,301 | ||||||||||||
General and administrative | 14,081 | 12,872 | 55,323 | 51,839 | ||||||||||||
Insurance and claims | 5,719 | 6,368 | 26,441 | 27,163 | ||||||||||||
Depreciation and amortization | 36,393 | 19,975 | 124,188 | 77,036 | ||||||||||||
Impairment expense | — | — | 3,720 | — | ||||||||||||
Total operating expenses | 426,848 | 356,828 | 1,642,923 | 1,516,695 | ||||||||||||
Income from operations | 38,283 | 34,092 | 203,112 | 145,444 | ||||||||||||
Interest expense, net | (9,828) | (6,163) | (30,207) | (22,753) | ||||||||||||
Other non-operating income (expense) | (1,171) | 722 | 837 | 1,608 | ||||||||||||
Income before income taxes | 27,284 | 28,651 | 173,742 | 124,299 | ||||||||||||
Provision for income taxes | 7,109 | 7,239 | 43,835 | 31,398 | ||||||||||||
Net income | $ | 20,175 | $ | 21,412 | $ | 129,907 | $ | 92,901 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.77 | $ | 0.81 | $ | 4.94 | $ | 3.53 | ||||||||
Diluted | $ | 0.77 | $ | 0.81 | $ | 4.93 | $ | 3.53 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 26,318 | 26,284 | 26,315 | 26,284 | ||||||||||||
Diluted | 26,358 | 26,301 | 26,348 | 26,308 | ||||||||||||
Dividends declared per common share: | $ | 0.105 | $ | 0.105 | $ | 0.420 | $ | 0.420 | ||||||||
UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands) | ||||||||
December 31, | December 31, | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 19,351 | $ | 12,511 | ||||
Marketable securities | 11,590 | 10,772 | ||||||
Accounts receivable - net | 293,646 | 287,947 | ||||||
Other current assets | 85,226 | 54,243 | ||||||
Total current assets | 409,813 | 365,473 | ||||||
Property and equipment - net | 742,366 | 561,088 | ||||||
Other long-term assets - net | 635,553 | 326,962 | ||||||
Total assets | $ | 1,787,732 | $ | 1,253,523 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities, excluding current maturities of debt | $ | 215,756 | $ | 189,727 | ||||
Debt - net | 759,085 | 381,924 | ||||||
Other long-term liabilities | 165,868 | 149,674 | ||||||
Total liabilities | 1,140,709 | 721,325 | ||||||
Total shareholders' equity | 647,023 | 532,198 | ||||||
Total liabilities and shareholders' equity | $ | 1,787,732 | $ | 1,253,523 | ||||
UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data | ||||||||||||||||
Thirteen Weeks Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Contract Logistics Segment: | ||||||||||||||||
Average number of value-added direct employees | 7,337 | 5,582 | 5,809 | 5,521 | ||||||||||||
Average number of value-added full-time equivalents | 57 | 205 | 88 | 450 | ||||||||||||
Number of active value-added programs | 90 | 71 | 90 | 71 | ||||||||||||
Intermodal Segment: | ||||||||||||||||
Number of loads (a) | 100,457 | 118,553 | 417,790 | 473,569 | ||||||||||||
Average operating revenue per load, excluding fuel surcharges (a) | $ | 537 | $ | 549 | $ | 554 | $ | 563 | ||||||||
Average number of tractors | 1,451 | 1,830 | 1,585 | 2,034 | ||||||||||||
Number of depots | 8 | 9 | 8 | 9 | ||||||||||||
Trucking Segment: | ||||||||||||||||
Number of loads | 36,068 | 43,468 | 155,288 | 178,036 | ||||||||||||
Average operating revenue per load, excluding fuel surcharges | $ | 2,183 | $ | 1,673 | $ | 1,993 | $ | 1,738 | ||||||||
Average number of tractors | 699 | 828 | 767 | 877 | ||||||||||||
Average length of haul | 394 | 399 | 334 | 390 | ||||||||||||
(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 | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Operating Revenues by Segment: | ||||||||||||||||
Contract logistics | $ | 307,357 | $ | 201,347 | $ | 1,129,658 | $ | 829,574 | ||||||||
Intermodal | 73,095 | 86,874 | 308,744 | 382,610 | ||||||||||||
Trucking | 83,840 | 75,168 | 331,982 | 333,211 | ||||||||||||
Other | 839 | 27,531 | 75,651 | 116,744 | ||||||||||||
Total | $ | 465,131 | $ | 390,920 | $ | 1,846,035 | $ | 1,662,139 | ||||||||
Income from Operations by Segment: | ||||||||||||||||
Contract logistics | $ | 39,094 | $ | 32,079 | $ | 219,084 | $ | 127,752 | ||||||||
Intermodal | (9,683) | (964) | (27,741) | 1,604 | ||||||||||||
Trucking | 5,788 | 2,488 | 20,963 | 17,258 | ||||||||||||
Other | 3,084 | 489 | (9,194) | (1,170) | ||||||||||||
Total | $ | 38,283 | $ | 34,092 | $ | 203,112 | $ | 145,444 | ||||||||
Non-GAAP Financial Measures
In addition to providing consolidated financial statements based on generally accepted accounting principles in
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 | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
( in thousands) | ( in thousands) | |||||||||||||||
EBITDA | ||||||||||||||||
Net income | $ | 20,175 | $ | 21,412 | $ | 129,907 | $ | 92,901 | ||||||||
Income tax expense | 7,109 | 7,239 | 43,835 | 31,398 | ||||||||||||
Interest expense, net | 9,828 | 6,163 | 30,207 | 22,753 | ||||||||||||
Depreciation | 29,198 | 16,844 | 102,688 | 64,365 | ||||||||||||
Amortization | 7,195 | 3,131 | 21,500 | 12,671 | ||||||||||||
EBITDA | $ | 73,505 | $ | 54,789 | $ | 328,137 | $ | 224,088 | ||||||||
EBITDA margin (a) | 15.8 | % | 14.0 | % | 17.8 | % | 13.5 | % | ||||||||
(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.
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SOURCE Universal Logistics Holdings, Inc.
FAQ
What were ULH's Q4 2024 earnings per share compared to Q4 2023?
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How did ULH's intermodal segment perform in Q4 2024?
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