Universal Logistics Holdings Reports Record Fourth Quarter 2022 Financial Results; Achieves Record Full-Year 2022 Financial Results; Declares Dividend

Rhea-AI Summary

Universal Logistics Holdings, Inc. (NASDAQ: ULH) reported its fourth quarter 2022 results, revealing consolidated net income of $33.4 million, or $1.27 per share, an increase from $16.2 million or $0.60 per share in Q4 2021. Total operating revenues for Q4 2022 were $458.7 million, down 1.9% year-over-year. The company achieved its highest operating income of $48.2 million, representing a 102.6% increase. For the full year 2022, earnings per share reached $6.37, with total revenues surpassing $2 billion. A quarterly dividend of $0.105 per share was declared, payable on April 3, 2023.

Positive

• Fourth quarter 2022 operating income increased 102.6% to $48.2 million.
• Fourth quarter 2022 earnings per share rose 111.7% to $1.27, setting a record for the company.
• Full-year 2022 revenues exceeded $2 billion, the first time in company history.
• Significant increase in contract logistics revenues by 27.9%.

Negative

• Fourth quarter 2022 operating revenues decreased by 1.9% year-over-year.
• Intermodal segment revenues fell 13.2% and trucking segment revenues decreased 12.3%.
• Company-managed brokerage revenues dropped 36.2% in Q4 2022.

-  Fourth Quarter 2022 Operating Revenues:  $458.7 million, 1.9% decrease

-  Fourth Quarter 2022 Operating Income:  $48.2 million, 102.6% increase

-  Fourth Quarter 2022 Earnings Per Share:  $1.27 per share, 111.7% increase

-  Declares Quarterly Dividend:  $0.105 per share

WARREN, Mich., Feb. 9, 2023 /PRNewswire/ -- Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated fourth quarter 2022 net income of $33.4 million, or $1.27 per basic and diluted share, on total operating revenues of $458.7 million. This compares to net income of $16.2 million, or $0.60 per basic and diluted share, during fourth quarter 2021 on total operating revenues of $467.4 million. Universal's fourth quarter 2022 operating income and earnings per share represent the best fourth quarter results in company history. For the full year 2022, Universal reported $6.37 per basic and diluted share, on total operating revenues of $2.02 billion, both all-time records in company history. This compares to $2.74 per basic and diluted share, on total operating revenues of $1.75 billion for the full year 2021. 

In the fourth quarter 2022, Universal's operating income increased $24.4 million to $48.2 million, compared to $23.8 million in the fourth quarter one year earlier.  Included in fourth quarter 2021 operating results were $11.0 million of pre-tax charges related to previously disclosed items. As a percentage of operating revenue, operating margin for the fourth quarter 2022 was 10.5%, compared to 5.1% during the same period last year. EBITDA, a non-GAAP measure, increased $28.3 million during the fourth quarter 2022 to $68.0 million, compared to $39.7 million one year earlier. As a percentage of operating revenue, EBITDA margin for the fourth quarter 2022 was 14.8%, compared to 8.5% during the same period last year. The previously disclosed pre-tax charges recorded in the fourth quarter 2021 adversely impacted Universal's operating margin and EBITDA margin in that period by 230 basis points. 

"2022 was a year of record setting financial performance for the company," stated Universal's CEO Tim Phillips. "And we closed out the year with yet another, reporting our best ever fourth quarter earnings in company history. In fact, for the full year 2022, Universal more than doubled its net income and reported top-line revenues in excess of $2.0 billion, a milestone we have worked so diligently to achieve."

"As we transition into a new year," Phillips continued, "we are navigating a much different transportation environment. Excess retail inventories, a slow-down in industrial production and loosening capacity have all put downward pressures on our trucking, company-managed brokerage and intermodal segments. While we expect near-term headwinds in transportation, stability in our contract logistics segment, supported by strong North American auto production, will provide a solid foundation for the year to come. Universal remains a results-oriented organization, and I believe the diversification of our service offerings and the talented teams we have assembled keep us well positioned for continued success."

Segment Information:

Contract Logistics

-  Fourth Quarter 2022 Operating Revenues:  $205.5 million, 27.9% increase
-  Fourth Quarter 2022 Operating Income:  $30.1 million, 14.7% operating margin

In the contract logistics segment, which includes our value-added and dedicated services, fourth quarter 2022 operating revenues increased 27.9% to $205.5 million, compared to $160.7 million for the same period last year.  We grew our fourth quarter 2022 dedicated transportation load volumes by 5.3% compared to the same period last year, and we managed 63 value-added programs at the end of both fourth quarters 2022 and 2021. Included in contract logistics segment revenues were $10.6 million in separately identified fuel surcharges from dedicated transportation services, compared to $5.9 million during the same period last year. Fourth quarter 2022 income from operations increased $24.0 million to $30.1 million, compared to $6.1 million during the same period last year. Included in fourth quarter 2021 results were $5.0 million of losses incurred in connection with a previously announced program launch. As a percentage of revenue, operating margin in the contract logistics segment for the fourth quarter 2022 was 14.7%, compared to 3.8% during the same period last year. Previously disclosed pre-tax launch losses recorded in the fourth quarter 2021 adversely impacted this segment's operating margin by 310 basis points. 

Intermodal

-  Fourth Quarter 2022 Operating Revenues:  $123.1 million, 13.2% decrease
-  Fourth Quarter 2022 Operating Income:  $11.1 million, 9.0% operating margin

Operating revenues in the intermodal segment decreased 13.2% to $123.1 million in the fourth quarter 2022, compared to $141.7 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $22.4 million in separately identified fuel surcharges, compared to $16.1 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage which totaled $22.5 million during the fourth quarter 2022, compared to $35.7 million one year earlier. The average operating revenue per load, excluding fuel surcharges, increased 15.1%; however, load volumes decreased 25.7% year-over-year. Fourth quarter 2022 income from operations decreased $2.7 million to $11.1 million, compared to $13.8 million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the fourth quarter 2022 was 9.0%, compared to 9.7% one year earlier.

Trucking

-  Fourth Quarter 2022 Operating Revenues:  $89.0 million, 12.3% decrease
-  Fourth Quarter 2022 Operating Income:  $5.7 million, 6.5% operating margin

In the trucking segment, fourth quarter 2022 operating revenues decreased 12.3% to $89.0 million, compared to $101.5 million for the same period last year. Fourth quarter 2022 trucking segment revenues included $36.5 million of brokerage services, compared to $38.1 million during the same period last year. Also included in our trucking segment revenues were $8.1 million in separately identified fuel surcharges during the fourth quarter 2022, compared to $6.8 million in fuel surcharges during the same period last year. On a year-over-year basis, the average operating revenue per load, excluding fuel surcharges, increased 24.1%; however, load volumes declined 32.9% as we rationalized certain underperforming operations in this segment. Income from operations in the fourth quarter 2022 increased $4.6 million to $5.7 million compared to $1.1 million during the same period last year. Fourth quarter 2021 trucking segment results included an additional $6.0 million in previously disclosed pre-tax charges. As a percentage of revenue, operating margin in the trucking segment for the fourth quarter 2022 was 6.5% compared to 1.1% during the same period last year. The additional previously disclosed pre-tax charges recorded in the fourth quarter 2021 adversely impacted the trucking segment's operating margin by 590 basis points. 

Company-managed Brokerage

-  Fourth Quarter 2022 Operating Revenues:  $39.6 million, 36.2% decrease
-  Fourth Quarter 2022 Operating Income:  $0.9 million, 2.3% operating margin

Fourth quarter 2022 operating revenues in the company-managed brokerage segment decreased 36.2% to $39.6 million compared to $62.0 million for the same period last year. Company-managed brokerage segment average operating revenue per load, excluding fuel surcharges, decreased 14.8% and load volumes declined 19.9% on a year-over-year basis. Fourth quarter 2022 income from operations in the company-managed brokerage segment was $0.9 million which compares to $2.5 million one year earlier.  As a percentage of revenue, operating margin for the fourth quarter 2022 was 2.3% compared to 4.0% during the same period last year.

Cash Dividend

Universal Logistics Holdings, Inc. also announced today that its Board of Directors has 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 March 6, 2023 and is expected to be paid on April 3, 2023.

Other Matters 

As of December 31, 2022, Universal held cash and cash equivalents totaling $47.2 million, and $10.0 million in marketable securities. Outstanding debt at the end of the fourth quarter 2022 was $382.9 million and capital expenditures totaled $31.3 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, February 10, 2023
Call Toll Free:	(877) 270-2148
International Dial-in:	+1 (412) 902-6510
Conference ID:	10175013

A replay of the conference call will be available through February 17, 2023, by calling (877) 344-7529 (toll free) or +1 (412) 317-0088 (toll) and using encore replay code 3803897. The call will also be available on investors.universallogistics.com.

About Universal:

Universal Logistics Holdings, Inc. ("Universal") is a holding company that owns subsidiaries engaged in providing a variety of customized transportation and logistics solutions throughout the United States, and in Mexico, Canada and Colombia.  Our operating subsidiaries provide customers with supply chain solutions that can be scaled to meet their changing demands and volumes. Universal's consolidated subsidiaries offer customers a broad array of services across the entire supply chain, including truckload, brokerage, intermodal, dedicated, and value-added 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								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Operating revenues:
Truckload services		$	54,044			$	64,838			$	230,696			$	248,878
Brokerage services			76,092				100,143				368,880				401,823
Intermodal services			123,077				141,723				591,946				473,059
Dedicated services			83,039				54,003				324,589				204,102
Value-added services			122,470				106,665				499,345				423,118
Total operating revenues			458,722				467,372				2,015,456				1,750,980
Operating expenses:
Purchased transportation and equipment rent			179,197				224,516				847,414				824,789
Direct personnel and related benefits			130,936				119,720				522,659				456,643
Operating supplies and expenses			44,554				35,779				177,440				149,394
Commission expense			8,876				8,914				40,288				33,894
Occupancy expense			10,941				10,380				41,286				37,286
General and administrative			11,903				9,783				46,528				39,648
Insurance and claims			5,825				18,847				22,749				38,829
Depreciation and amortization			18,324				15,657				76,657				67,537
Total operating expenses			410,556				443,596				1,775,021				1,648,020
Income from operations			48,166				23,776				240,435				102,960
Interest expense, net			(5,313)				(2,510)				(16,156)				(11,599)
Other non-operating income			1,467				247				1,143				7,220
Income before income taxes			44,320				21,513				225,422				98,581
Provision for income taxes			10,874				5,314				56,790				24,848
Net income		$	33,446			$	16,199			$	168,632			$	73,733
Earnings per common share:
Basic		$	1.27			$	0.60			$	6.37			$	2.74
Diluted		$	1.27			$	0.60			$	6.37			$	2.74
Weighted average number of common shares outstanding:
Basic			26,278				26,919				26,469				26,919
Diluted			26,311				26,923				26,489				26,929
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, 2022				December 31, 2021
Assets
Cash and cash equivalents		$	47,181			$	13,932
Marketable securities			10,000				8,031
Accounts receivable - net			350,720				341,398
Other current assets			51,751				57,334
Total current assets			459,652				420,695
Property and equipment - net			391,154				345,583
Other long-term assets - net			352,872				371,213
Total assets		$	1,203,678			$	1,137,491
Liabilities and shareholders' equity
Current liabilities, excluding current maturities of debt		$	221,598			$	251,550
Debt - net			378,500				427,348
Other long-term liabilities			156,650				156,383
Total liabilities			756,748				835,281
Total shareholders' equity			446,930				302,210
Total liabilities and shareholders' equity		$	1,203,678			$	1,137,491

 

UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data
		Thirteen Weeks Ended								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Contract Logistics Segment:
Number of dedicated transportation loads (a)			152,821				145,127				619,673				594,748
Average number of value-added direct employees			5,121				5,005				5,079				4,534
Average number of value-added full-time equivalents			1,153				1,322				1,323				1,448
Number of active value-added programs			63				63				63				63
Intermodal Segment:
Number of loads			116,475				156,736				552,398				665,088
Average operating revenue per load, excluding fuel surcharges		$	685			$	595			$	702			$	522
Average number of tractors			2,333				2,056				2,223				2,042
Number of depots			9				12				9				12
Trucking Segment:
Number of loads			45,233				67,440				199,712				288,378
Average operating revenue per load, excluding fuel surcharges		$	1,831			$	1,475			$	1,807			$	1,356
Average number of tractors			898				1,234				899				1,299
Average length of haul			422				374				403				372
Company-Managed Brokerage Segment:
Number of loads (b)			21,979				27,434				90,432				121,944
Average operating revenue per load (b)		$	1,684			$	1,976			$	1,893			$	1,845
Average length of haul (b)			613				533				598				553
(a)   Includes shuttle moves.
(b)  Excludes operating data from freight forwarding division in order to improve the relevance of the statistical data        related to our brokerage services 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,
		2022				2021				2022				2021
Operating Revenues by Segment:
Contract logistics		$	205,509			$	160,668			$	823,934			$	627,220
Intermodal			123,077				141,723				591,946				473,059
Trucking			88,991				101,474				392,639				403,312
Company-managed brokerage			39,596				62,035				200,536				242,794
Other			1,549				1,472				6,401				4,595
Total		$	458,722			$	467,372			$	2,015,456			$	1,750,980
Income from Operations by Segment:
Contract logistics		$	30,137			$	6,067			$	118,437			$	44,809
Intermodal			11,114				13,799				83,640				30,379
Trucking			5,743				1,105				27,564				19,607
Company-managed brokerage			897				2,466				9,993				7,122
Other			275				339				801				1,043
Total		$	48,166			$	23,776			$	240,435			$	102,960

 

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								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
		( in thousands)								( in thousands)
EBITDA
Net income		$	33,446			$	16,199			$	168,632			$	73,733
Income tax expense			10,874				5,314				56,790				24,848
Interest expense, net			5,313				2,510				16,156				11,599
Depreciation			14,617				12,248				62,275				53,650
Amortization			3,707				3,409				14,382				13,887
EBITDA		$	67,957			$	39,680			$	318,235			$	177,717
EBITDA margin (a)			14.8	%			8.5	%			15.8	%			10.1	%
(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 the earnings per share for ULH in Q4 2022?

The earnings per share for Universal Logistics Holdings (ULH) in Q4 2022 were $1.27.

How much did total operating revenues decline for ULH in Q4 2022?

Total operating revenues for Universal Logistics Holdings (ULH) declined by 1.9% to $458.7 million in Q4 2022.

What is the declared dividend for ULH shareholders in 2023?

Universal Logistics Holdings (ULH) declared a quarterly dividend of $0.105 per share, payable on April 3, 2023.

How did ULH's full-year 2022 performance compare to 2021?

For full-year 2022, Universal Logistics Holdings (ULH) reported earnings per share of $6.37 and revenues over $2 billion, compared to $2.74 per share and $1.75 billion in 2021.