Workflow
Universal(ULH)
icon
Search documents
Universal(ULH) - 2024 Q4 - Annual Report
2025-03-17 20:15
PART I [Business](index=4&type=section&id=Item%201.%20Business) The company provides customized transportation and logistics solutions across North America and Colombia through its contract logistics, intermodal, and trucking segments - The company operates through three reportable segments: contract logistics, intermodal, and trucking[17](index=17&type=chunk) - As of December 31, 2024, the company operated **52 company-managed terminals** and serviced **90 value-added programs**[16](index=16&type=chunk) - On September 30, 2024, the company acquired Parsec, LLC, a provider of terminal management services to railroads, which is now part of the Contract Logistics segment[20](index=20&type=chunk) - The company's growth strategy includes making strategic acquisitions, capitalizing on outsourcing trends, penetrating the automotive industry, and expanding its agent and owner-operator network[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) Type of Equipment | Type of Equipment | Company owned or Leased | Owner Operator Provided | Total | | :--- | :--- | :--- | :--- | | Tractors | 2,603 | 1,598 | 4,201 | | Yard Tractors | 737 | — | 737 | | Trailers | 5,051 | 709 | 5,760 | | Chassis | 3,354 | — | 3,354 | | Containers | 107 | — | 107 | [Customers](index=8&type=section&id=Customers) The company's revenue is highly concentrated in the automotive industry, with General Motors and Ford as major customers and a growing reliance on its top 10 clients Customer/Industry Concentration | Customer/Industry Concentration | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Automotive Industry Revenue | 47% | 43% | 36% | | General Motors Revenue | 18% | 20% | 16% | | Ford Revenue | 17% | 6% | 6% | | Top 10 Customers Revenue | 56% | 48% | 42% | [Human Capital Resources](index=8&type=section&id=Human%20Capital%20Resources) The company employs over 10,000 people, with a significant unionized portion, and faces intense competition for qualified workers and drivers - As of December 31, 2024, the company employed **10,821 people**, with about **46% being members of unions**[33](index=33&type=chunk) - The company faces **significant competition** in recruiting and retaining qualified workers and drivers, which has led to increased expenses and periodic under-utilization[36](index=36&type=chunk) [Seasonality](index=11&type=section&id=Seasonality) The company's operations are subject to seasonal demand fluctuations tied to the automotive production cycle and post-holiday transportation slowdowns - Demand for value-added services increases in Q2 (automotive spring selling season) and decreases in Q3 (OEM shutdowns) and Q4 (holiday shutdowns)[55](index=55&type=chunk)[56](index=56&type=chunk) - Transportation services activity generally decreases during the post-holiday winter season[57](index=57&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its heavy reliance on the automotive sector, customer concentration, and a material weakness in its internal financial controls - The business is highly dependent on the North American automotive industry, which accounted for **47% of revenues in 2024**[73](index=73&type=chunk) - The top 10 customers accounted for approximately **56% of operating revenues in 2024**, posing a concentration risk[74](index=74&type=chunk) - As a **'controlled company'** under NASDAQ rules, the company is exempt from certain corporate governance standards, such as having a majority of independent directors[101](index=101&type=chunk) - A **material weakness was identified** in internal control over financial reporting for the year ended December 31, 2024, stemming from errors in financial statement preparation and accounting for non-routine transactions[107](index=107&type=chunk) [Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) None [Cybersecurity](index=25&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risks through a program based on the NIST framework, overseen by the Audit Committee, with no material impacts identified to date - The cybersecurity program is designed and assessed based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF)[110](index=110&type=chunk) - The Board's Audit Committee oversees the cybersecurity risk management program and receives quarterly updates from management[112](index=112&type=chunk) - The company has not identified any risks from known cybersecurity threats that have materially affected its operations, business strategy, or financial condition[111](index=111&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) The company owns its Michigan headquarters and 24 other properties while leasing 78 facilities and using 54 customer-provided locations for its operations - The company owns its corporate headquarters in Warren, Michigan, and 24 other properties[115](index=115&type=chunk) - As of year-end 2024, the company leased 78 operating facilities and utilized 54 customer-provided facilities[116](index=116&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation and believes current proceedings will not materially affect its financial position - The company is involved in claims and litigation from the ordinary course of business and accrues for claims within its self-insured retention amounts[117](index=117&type=chunk) - Management does not expect current legal proceedings to have a material effect on the company's financial position[117](index=117&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock (ULH) trades on NASDAQ, with a quarterly dividend policy and an active share repurchase program - The company's common stock is traded on The NASDAQ Global Market under the symbol ULH[121](index=121&type=chunk) - The company has a policy for a regular quarterly dividend of **$0.105 per share**, totaling $0.42 annually; the Board did not declare a special dividend in Q1 2025[123](index=123&type=chunk) - As of December 31, 2024, **513,251 shares remain available for repurchase** under the company's stock purchase authorization[128](index=128&type=chunk) [Reserved](index=29&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue and net income grew in 2024, driven by the contract logistics segment, despite challenges from inflation, labor shortages, and a material weakness in internal controls [Results of Operations](index=32&type=section&id=Results%20of%20Operations) In 2024, revenue and net income increased significantly due to a specialty project and an acquisition, reversing the declines experienced in 2023 Comparison of 2024 to 2023 | (In millions) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Operating revenues | $1,846.0 | $1,662.1 | 11.1% | | Income from operations | $203.1 | $145.4 | 39.6% | | Net income | $129.9 | $92.9 | 39.8% | Comparison of 2023 to 2022 | (In millions) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Operating revenues | $1,662.1 | $2,015.5 | (17.5)% | | Income from operations | $145.4 | $240.4 | (39.5)% | | Net income | $92.9 | $168.6 | (44.9)% | [Segment Financial Results](index=36&type=section&id=Segment%20Financial%20Results) In 2024, strong growth in Contract Logistics offset a significant operating loss in Intermodal and flat performance in Trucking Segment Operating Revenues | Segment Operating Revenues (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Contract logistics | $1,129,658 | $829,574 | $823,934 | | Intermodal | $308,744 | $382,610 | $622,615 | | Trucking | $331,982 | $333,211 | $392,639 | Segment Income from Operations | Segment Income from Operations (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Contract logistics | $219,084 | $127,752 | $118,437 | | Intermodal | $(27,741) | $1,604 | $85,037 | | Trucking | $20,963 | $17,258 | $27,564 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company funded significant acquisitions and capital expenditures in 2024 by increasing its total debt to $762.6 million, relying on cash from operations and its credit facility - Net cash provided by operating activities was **$112.4 million** in 2024[187](index=187&type=chunk)[188](index=188&type=chunk) - Net cash used in investing activities was **$462.9 million**, primarily for **$251.6 million** in capital expenditures and **$215.8 million** for acquisitions (Parsec and East Texas Heavy Haul)[189](index=189&type=chunk) - Net cash provided by financing activities was **$365.0 million**, reflecting a significant increase in borrowings[190](index=190&type=chunk) Financial Position | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $19,351 | $12,511 | | Outstanding debt | $762,641 | $386,445 | [Critical Accounting Policies](index=40&type=section&id=Critical%20Accounting%20Policies) Key accounting judgments include estimating insurance reserves and valuing long-lived assets, which led to a $3.5 million goodwill impairment charge in 2024 - Accruals for estimated insurance claims, net of receivables, were **$13.3 million** at year-end 2024, up from $11.2 million in 2023[197](index=197&type=chunk) - Goodwill is tested for impairment annually in the third quarter; in Q3 2024, the company recorded goodwill impairment charges of **$3.5 million** related to the closure of its company-managed brokerage operations[200](index=200&type=chunk)[265](index=265&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from variable-rate debt, diesel fuel prices, equity investments, and foreign currency fluctuations - As of December 31, 2024, the company had **$484.5 million in variable interest rate debt**; a 100 basis point increase in rates would increase annual interest expense by approximately **$4.8 million**[204](index=204&type=chunk) - A **10% increase** in the average annual price of diesel fuel would increase the company's annual fuel expense by approximately **$5.2 million**[208](index=208&type=chunk) - The company holds a portfolio of marketable equity securities valued at **$11.6 million** as of December 31, 2024[209](index=209&type=chunk) - Foreign operations in Mexico, Canada, and Colombia accounted for **3.0% of revenues in 2024**, exposing the company to foreign currency exchange risk[210](index=210&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited financial statements, notes, and the auditor's report, which gave an unqualified opinion on financials but an adverse opinion on internal controls [Report of Independent Registered Public Accounting Firm](index=43&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued an unqualified opinion on the financial statements but an adverse opinion on internal controls due to a material weakness - The auditor, Grant Thornton LLP, issued an **unqualified opinion** on the consolidated financial statements[214](index=214&type=chunk) - An **adverse opinion** was issued on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[215](index=215&type=chunk) - **Critical Audit Matters** included the goodwill impairment assessment for the Contract Logistics and Intermodal units and the fair value of customer relationships from the Parsec acquisition[219](index=219&type=chunk)[221](index=221&type=chunk) [Consolidated Financial Statements](index=46&type=section&id=Consolidated%20Financial%20Statements) The company's total assets reached $1.79 billion in 2024, with revenues of $1.85 billion and net income of $129.9 million Consolidated Balance Sheet | Consolidated Balance Sheet (In thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total current assets | $409,813 | $365,472 | | Total assets | $1,786,837 | $1,253,523 | | Total current liabilities | $304,568 | $260,416 | | Total liabilities | $1,139,814 | $721,325 | | Total shareholders' equity | $647,023 | $532,198 | Consolidated Statement of Income | Consolidated Statement of Income (In thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total operating revenues | $1,846,035 | $1,662,139 | $2,015,456 | | Income from operations | $203,112 | $145,444 | $240,435 | | Net income | $129,907 | $92,901 | $168,632 | | Diluted EPS | $4.93 | $3.53 | $6.37 | [Notes to Consolidated Financial Statements](index=52&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the closure of brokerage operations, two major acquisitions, a significant increase in debt, and substantial related-party transactions - In August 2024, the company closed its company-managed brokerage operations, incurring pre-tax losses of approximately **$8.6 million**[245](index=245&type=chunk) - The company acquired Parsec for a cash purchase price of **$208.4 million** and ETHH for **$7.5 million** in 2024[302](index=302&type=chunk)[303](index=303&type=chunk) - Total debt outstanding was **$762.6 million** at December 31, 2024, a significant increase from $386.4 million at year-end 2023[311](index=311&type=chunk) - Transactions with affiliated companies, controlled by the majority shareholder, totaled **$126.8 million** in expenses for services like insurance, rent, and administrative support in 2024[326](index=326&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=80&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) None [Controls and Procedures](index=80&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that disclosure controls were ineffective due to a material weakness in internal control over financial reporting - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2024, due to a material weakness in internal control over financial reporting[377](index=377&type=chunk) - The material weakness was caused by errors in financial statement preparation and accounting for non-routine transactions, stemming from a **need for additional technical accounting resources**[381](index=381&type=chunk) - The independent registered public accounting firm, Grant Thornton LLP, issued an **adverse opinion** on the effectiveness of the company's internal control over financial reporting[382](index=382&type=chunk)[389](index=389&type=chunk) - Remediation plans include enhancing internal accounting staff with employees having requisite technical knowledge and expanding the use of external consulting firms[384](index=384&type=chunk) [Other Information](index=86&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q4 2024 [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=86&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) None PART III [Directors, Executive Officers and Corporate Governance](index=87&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the 2025 Proxy Statement; the company has adopted a Code of Business Conduct - The required information is incorporated by reference from the definitive proxy statement for the 2025 Annual Meeting of Shareholders[403](index=403&type=chunk) [Executive Compensation](index=87&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - The required information will be included in the 2025 Proxy Statement and is incorporated by reference[405](index=405&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=87&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership details are incorporated by reference from the 2025 Proxy Statement, with over 748,000 securities available for future issuance under equity plans Equity Compensation Plan Information | Plan Category | Securities to be issued | Securities available for future issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 85,538 | 748,455 | | Total | 85,538 | 748,455 | [Certain Relationships and Related Transactions, and Director Independence](index=87&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - The required information will be included in the 2025 Proxy Statement and is incorporated by reference[408](index=408&type=chunk) [Principal Accounting Fees and Services](index=87&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - The required information will be included in the 2025 Proxy Statement and is incorporated by reference[409](index=409&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=88&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the Form 10-K, with schedules omitted as permitted [Form 10-K Summary](index=89&type=section&id=Item%2016.%20Form%2010-K%20Summary) None
Universal Truckload (ULH) Loses -16.13% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner
ZACKS· 2025-02-10 15:36
Core Viewpoint - Universal Logistics (ULH) has experienced a significant downtrend, with a 16.1% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - ULH's current RSI reading is 20.39, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding ULH, with a 0.2% increase in the consensus EPS estimate over the last 30 days, indicating a positive trend in earnings estimates [6]. - ULH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].
Universal(ULH) - 2024 Q4 - Earnings Call Transcript
2025-02-07 19:23
Financial Data and Key Metrics Changes - In Q4 2024, the company reported consolidated net income of $20.2 million or $0.77 per share on total operating revenues of $465.1 million, compared to net income of $21.4 million or $0.81 per share on total operating revenues of $390.9 million in Q4 2023 [25] - EBITDA increased by $18.7 million to $73.5 million, compared to $54.8 million during the same period last year [26] - Operating margin for Q4 2024 was 8.2%, down from 8.7% in Q4 2023, while EBITDA margin improved to 15.8% from 14% [26] Business Segment Performance - Contract logistics segment revenues increased by 52.7% to $307.4 million, with income from operations rising to $39.1 million from $32.1 million in Q4 2023 [10][27] - The trucking segment saw revenues increase by 11.5% to $83.8 million, with income from operations rising to $5.8 million from $2.5 million in Q4 2023 [16][31] - The intermodal segment experienced a revenue decrease of 15.9% year over year to $73.1 million, with an operating loss of $9.7 million compared to a loss of $1 million in Q4 2023 [20][30] Market Data and Key Metrics Changes - The contract logistics segment remains the most consistent and profitable, achieving double-digit operating margins for twelve consecutive quarters [12] - The intermodal segment faced challenges with a 15.3% decrease in volume and a 2.2% drop in rates, indicating a tough market environment [20] - Specialized revenue in the trucking segment made up 32.1% of total trucking revenue in 2024, up from 18.9% in the previous year [19] Company Strategy and Industry Competition - The company is focused on transforming the intermodal segment into a leaner, more efficient operation, with new leadership and technology initiatives planned for 2025 [54][56] - The acquisition of Parsec is viewed as transformational, bringing the contract logistics segment's annual revenue run rate to over $1.1 billion [14] - The company aims to maintain a customer-centric approach, integrating deeply into customer supply chains to enhance long-term value [78] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, expecting total operating revenues between $1.7 billion to $1.8 billion and operating margins in the 7% to 9% range [33] - The company anticipates that the intermodal segment has reached its bottom and is positioned for a turnaround as market conditions improve [20][62] - Management highlighted a strong sales pipeline of over $800 million, indicating promising opportunities for growth [21] Other Important Information - The board declared a quarterly dividend of $0.105 per share, payable on April 1, 2025 [38] - Capital expenditures for 2024 totaled $148.3 million, with expectations for 2025 to be between $125 million to $150 million [33] Q&A Session Summary Question: Impact of tariffs on Canadian and Mexican operations - Management indicated that Canadian sales are about $10.5 million and Mexican sales are just under $50 million, representing a small portion of total sales, thus limiting exposure to tariffs [43][44] Question: Seasonal margin degradation in contract logistics - Management explained that the margin impact was due to the acquisition of Parsec and operational challenges in dedicated transportation, which affected fixed cost utilization [48][51] Question: Challenges in the intermodal segment - Management discussed new leadership and technology initiatives aimed at improving profitability and efficiency in the intermodal segment, particularly in Southern California [54][56] Question: Demand environment for trucking - Management noted that demand in Q4 was primarily driven by the wind division, with expectations for continued opportunities in the first quarter of 2025 [67][68] Question: Operating expenses related to Parsec - Management confirmed that increased personnel costs were tied to the acquisition of Parsec, which added approximately 2,100 new employees [74]
Universal Logistics (ULH) Lags Q4 Earnings Estimates
ZACKS· 2025-02-06 23:36
Core Viewpoint - Universal Logistics (ULH) reported quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.93 per share, and showing a decline from $0.81 per share a year ago, resulting in an earnings surprise of -17.20% [1] Financial Performance - The company posted revenues of $465.13 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 8.85%, compared to $390.92 million in the same quarter last year [2] - Over the last four quarters, Universal Logistics has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Universal Truckload shares have declined approximately 5% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $454.1 million, and for the current fiscal year, it is $4.64 on revenues of $1.82 billion [7] - The estimate revisions trend for Universal Truckload is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Transportation - Services industry, to which Universal Truckload belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8]
Universal(ULH) - 2024 Q4 - Annual Results
2025-02-06 21:21
[Financial Highlights & CEO Commentary](index=1&type=section&id=Universal%20Logistics%20Holdings%20Reports%20Fourth%20Quarter%202024%20Financial%20Results%3B%20Declares%20Dividend) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Universal Logistics achieved its second-best financial performance in 2024, with Q4 operating revenues increasing **19.0%** to **$465.1 million** and full-year revenue and EPS showing significant growth Q4 & Full-Year 2024 vs 2023 Performance ($) | Metric | Q4 2024 | Q4 2023 | Change | Full Year 2024 | Full Year 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $465.1M | $390.9M | +19.0% | $1.85B | $1.66B | +11.4% | | Net Income | $20.2M | $21.4M | -5.6% | $129.9M | $92.9M | +39.8% | | Diluted EPS | $0.77 | $0.81 | -4.9% | $4.93 | $3.53 | +39.7% | Q4 2024 Key Operational Metrics (vs Q4 2023, $) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Income | $38.3M | $34.1M | +12.3% | | Operating Margin | 8.2% | 8.7% | -50 bps | | EBITDA (Non-GAAP) | $73.5M | $54.8M | +34.1% | | EBITDA Margin (Non-GAAP) | 15.8% | 14.0% | +180 bps | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Tim Phillips emphasized 2024 as the **second-best financial year**, driven by contract logistics and strong heavy-haul demand, with future focus on operational efficiency and cost control - The full-year 2024 marked the company's **second-best financial performance** in its history[3](index=3&type=chunk) - The **contract logistics segment** is considered the cornerstone of the company's success, with continued strategic investments like the recent **acquisition of Parsec**[3](index=3&type=chunk) - **Strong demand** for specialized, **heavy-haul services** contributed to solid results in the trucking segment[3](index=3&type=chunk) - Future focus is on **improving underperforming operations**, **increasing efficiency**, and **maintaining cost control**[3](index=3&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Information%3A) Q4 2024 saw strong revenue and operating income growth in Contract Logistics and Trucking, while Intermodal experienced significant declines and increased operating losses [Contract Logistics](index=2&type=section&id=Contract%20Logistics) Contract Logistics revenue surged **52.7%** to **$307.4 million** driven by acquisitions and projects, despite a margin decrease to **12.7%** due to Parsec-related depreciation Q4 2024 Contract Logistics Performance (vs Q4 2023, $) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $307.4M | $201.3M | +52.7% | | Operating Income | $39.1M | $32.1M | +21.8% | | Operating Margin | 12.7% | 15.9% | -320 bps | - Revenue growth was significantly impacted by a **$51.3 million** specialty development project in Stanton, TN, and **$59.5 million** from the acquisition of Parsec[5](index=5&type=chunk) - The number of managed value-added programs increased to **90** from **71** in the prior year, including **20 new rail terminal operations**[5](index=5&type=chunk) - Operating margin was negatively impacted by **200 bps** due to **$6.0 million** of depreciation and amortization expense related to the Parsec acquisition[5](index=5&type=chunk) [Intermodal](index=2&type=section&id=Intermodal) Intermodal revenue declined **15.9%** to **$73.1 million** due to **15.3%** lower load volumes, resulting in a **$9.7 million** operating loss and **(13.2)%** negative margin Q4 2024 Intermodal Performance (vs Q4 2023, $) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $73.1M | $86.9M | -15.9% | | Operating Loss | $(9.7)M | $(1.0)M | -870% | | Operating Margin | (13.2)% | (1.1)% | -1210 bps | - Load volumes declined by **15.3%** year-over-year[6](index=6&type=chunk) - The average operating revenue per load, excluding fuel surcharges, decreased by **2.2%** year-over-year[6](index=6&type=chunk) [Trucking](index=2&type=section&id=Trucking) Trucking revenue rose **11.5%** to **$83.8 million** despite lower volumes, driven by a **30.5%** increase in heavy-haul revenue per load, boosting operating income to **$5.8 million** Q4 2024 Trucking Performance (vs Q4 2023, $) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $83.8M | $75.2M | +11.5% | | Operating Income | $5.8M | $2.5M | +132% | | Operating Margin | 6.9% | 3.3% | +360 bps | - Despite a **17.0% decline** in load volumes, the average operating revenue per load (excluding fuel) increased by **30.5%**, primarily driven by the **specialty, heavy-haul wind business**[7](index=7&type=chunk) [Shareholder Information](index=3&type=section&id=Shareholder%20Information) [Cash Dividend and Financial Position](index=3&type=section&id=Cash%20Dividend%20and%20Financial%20Position) The Board declared a **$0.105** per share cash dividend, with the company holding **$19.4 million** in cash and **$762.6 million** in debt as of December 31, 2024 - A cash dividend of **$0.105 per share** has been declared, payable on April 1, 2025, to shareholders of record on March 3, 2025[11](index=11&type=chunk) Financial Position as of Dec 31, 2024 ($) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $19.4M | | Marketable securities | $11.6M | | Outstanding debt | $762.6M | | Capital expenditures (Q4) | $37.4M | - An earnings conference call is scheduled for 10:00 a.m. Eastern Time on Friday, **February 7, 2025**[14](index=14&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) Full-year 2024 operating revenues reached **$1.85 billion** with net income at **$129.9 million**, while Q4 revenues rose to **$465.1 million** despite a slight net income decrease Full Year Income Statement Highlights (in thousands, $) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total operating revenues | $1,846,035 | $1,662,139 | | Income from operations | $203,112 | $145,444 | | Net income | $129,907 | $92,901 | | Diluted EPS | $4.93 | $3.53 | Q4 Income Statement Highlights (in thousands, $) | Account | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Total operating revenues | $465,131 | $390,920 | | Income from operations | $38,283 | $34,092 | | Net income | $20,175 | $21,412 | | Diluted EPS | $0.77 | $0.81 | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$1.79 billion** as of December 31, 2024, from **$1.25 billion** in 2023, with total liabilities increasing to **$1.14 billion** due to higher debt Consolidated Balance Sheet Highlights (in thousands, $) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total current assets | $409,813 | $365,473 | | Property and equipment - net | $742,366 | $561,088 | | **Total assets** | **$1,787,732** | **$1,253,523** | | Debt - net | $759,085 | $381,924 | | **Total liabilities** | **$1,140,709** | **$721,325** | | **Total shareholders' equity** | **$647,023** | **$532,198** | [Unaudited Summary of Operating Data](index=7&type=section&id=Unaudited%20Summary%20of%20Operating%20Data) Full-year 2024 saw Contract Logistics revenue reach **$1.13 billion** and operating income **$219.1 million**, while Intermodal incurred a **$27.7 million** loss and Trucking operating income grew to **$21.0 million** Full Year Operating Income by Segment (in thousands, $) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Contract logistics | $219,084 | $127,752 | | Intermodal | $(27,741) | $1,604 | | Trucking | $20,963 | $17,258 | Q4 Key Operational Metrics by Segment (2024 vs 2023) | Metric | Segment | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Number of loads | Intermodal | 100,457 | 118,553 | | Avg. revenue per load (ex-fuel) | Intermodal | $537 | $549 | | Number of loads | Trucking | 36,068 | 43,468 | | Avg. revenue per load (ex-fuel) | Trucking | $2,183 | $1,673 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [EBITDA Reconciliation](index=9&type=section&id=EBITDA%20Reconciliation) EBITDA, a non-GAAP measure, increased to **$73.5 million** in Q4 2024 with a **15.8%** margin, and reached **$328.1 million** for the full year 2024 - The company presents **EBITDA** and **EBITDA margin** to assist investors in comparing performance across reporting periods by excluding items not indicative of core operating performance, such as interest, taxes, depreciation, and amortization[25](index=25&type=chunk)[27](index=27&type=chunk) Reconciliation of Net Income to EBITDA (in thousands, $) | Line Item | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 | | :--- | :--- | :--- | :--- | :--- | | 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** | **15.8%** | **14.0%** | **17.8%** | **13.5%** |
Is Universal Logistics (ULH) Stock Undervalued Right Now?
ZACKS· 2025-01-27 15:41
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are ...
Universal(ULH) - 2024 Q3 - Earnings Call Transcript
2024-10-25 18:57
Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q3 2024 Earnings Conference Call October 25, 2024 10:00 AM ET Company Participants Steven Fitzpatrick - VP, Finance and IR Tim Phillips - CEO Jude Beres - CFO Conference Call Participants Andrew Cox - Stifel Operator Hello and welcome to Universal Logistics Holdings' Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] During the course of this call, management may make forward-looking s ...
Universal Logistics (ULH) Q3 Earnings and Revenues Miss Estimates
ZACKS· 2024-10-24 22:50
Universal Logistics (ULH) came out with quarterly earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.41%. A quarter ago, it was expected that this trucking and logistics company would post earnings of $1.14 per share when it actually produced earnings of $1.17, delivering a surprise of 2.63%.Over the last f ...
Universal(ULH) - 2024 Q3 - Quarterly Results
2024-10-24 20:21
Financial Performance - Third Quarter 2024 Operating Revenues increased to $426.8 million, a 1.3% increase year-over-year[1] - Third Quarter 2024 Operating Income rose to $42.6 million, reflecting a 16.0% increase compared to the previous year[1] - Third Quarter 2024 Earnings Per Share reached $1.01, a 14.7% increase from $0.88 in the same quarter last year[1] - Net income for the thirteen weeks ended September 28, 2024, was $26.5 million, compared to $23.0 million for the same period in 2023, reflecting a 10.8% increase[11] - Net income for the thirteen weeks ended September 28, 2024, was $26,540 thousand, an increase from $23,047 thousand for the same period in 2023, representing a growth of approximately 10.8%[17] - For the thirty-nine weeks ended September 28, 2024, net income was $109,731 thousand, up from $71,488 thousand in the prior year, representing a growth of approximately 53.5%[17] Segment Performance - Contract Logistics segment Operating Revenues increased by 17.8% to $245.2 million, with an Operating Income of $45.6 million and an operating margin of 18.6%[4] - Intermodal segment Operating Revenues decreased by 11.8% to $77.6 million, resulting in an Operating Loss of $(1.1) million[5] - Trucking segment Operating Revenues decreased by 10.3% to $87.0 million, with Operating Income of $7.1 million and an operating margin of 8.2%[6] - The average operating revenue per load in the trucking segment increased to $2,222, up from $2,033 in the prior year, indicating a 9.3% improvement[13] - The company reported a total of 103,970 loads in the intermodal segment for the thirteen weeks ended September 28, 2024, down from 119,792 loads in the same period last year, a decrease of 13.3%[13] Cash and Debt Management - As of September 28, 2024, the company held cash and cash equivalents of $11.8 million and outstanding debt of $561.2 million[8] - The company’s debt increased to $557.5 million as of September 28, 2024, compared to $381.9 million at the end of 2023, representing a 46.1% rise[12] Operational Metrics - Total operating revenues for the thirteen weeks ended September 28, 2024, were $426.8 million, a slight increase from $421.3 million for the same period in 2023, representing a 1.4% growth[14] - Operating expenses for the thirteen weeks ended September 28, 2024, were $384.2 million, nearly unchanged from $384.5 million in the same period last year[11] - EBITDA for the thirteen weeks ended September 28, 2024, was $72,922 thousand, compared to $56,735 thousand for the same period in 2023, reflecting an increase of about 28.5%[17] - EBITDA for the thirty-nine weeks ended September 28, 2024, was $254,630 thousand, compared to $169,298 thousand for the same period in 2023, reflecting an increase of about 50.4%[17] - EBITDA margin for the thirteen weeks ended September 28, 2024, was 17.1%, compared to 13.5% for the same period in 2023, showing a significant improvement[15] Dividend Information - The company declared a quarterly dividend of $0.105 per share, payable on January 2, 2025[7] - The company declared dividends of $0.105 per common share for both the current and prior year periods, maintaining consistency[11] Business Developments - The company ceased operations of its company-managed brokerage business, which reported pre-tax losses of approximately $8.6 million during the quarter[2] - Universal acquired Parsec, enhancing its contract logistics segment and allowing penetration into new verticals[3] Employee Metrics - The average number of value-added direct employees decreased to 5,189 from 5,439 year-over-year, a decline of 4.6%[13] Depreciation and Interest Expenses - Depreciation expense for the thirteen weeks ended September 28, 2024, was $25,536 thousand, up from $16,208 thousand in the prior year, showing a rise of approximately 57.7%[17] - Interest expense, net, increased to $7,416 thousand for the thirteen weeks ended September 28, 2024, from $6,495 thousand in the same period last year, marking a growth of about 14.2%[17] Tax Expenses - The company reported an income tax expense of $8,682 thousand for the thirteen weeks ended September 28, 2024, compared to $7,807 thousand for the same period in 2023, an increase of approximately 11.2%[17] EBITDA Limitations - The company emphasizes that EBITDA has limitations and should not be considered in isolation from GAAP measures, as it does not reflect cash expenditures or working capital needs[18] - The company will continue to rely primarily on GAAP results while using EBITDA and EBITDA margin as supplemental measures for performance evaluation[18]
Universal Logistics Holdings, Inc. Unveils Electric Vehicles into its Intermodal Fleet for Sustainable Logistics in Southern California
Prnewswire· 2024-08-02 21:04
WARREN, Mich., Aug. 2, 2024 /PRNewswire/ -- Universal Logistics Holdings, Inc. (NASDAQ: ULH) announces the integration of the 2025 Peterbilt 579EV into its fleet as a part of our ongoing sustainability initiatives. Universal Intermodal Services, Inc., a subsidiary of Universal Logistics Holdings, Inc., is poised to use these electric vehicles to reduce its carbon footprint throughout Southern California. Universal's 2025 Peterbilt 579EVUniversal's 2025 Peterbilt 579EV John Wroby, President of Universal Inte ...