Universal(ULH) - 2024 Q4 - Annual Results

Financial Highlights & CEO Commentary Financial Highlights 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 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] - The contract logistics segment is considered the cornerstone of the company's success, with continued strategic investments like the recent acquisition of Parsec[3] - Strong demand for specialized, heavy-haul services contributed to solid results in the trucking segment[3] - Future focus is on improving underperforming operations, increasing efficiency, and maintaining cost control[3] Segment Performance Analysis 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 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] - The number of managed value-added programs increased to 90 from 71 in the prior year, including 20 new rail terminal operations[5] - Operating margin was negatively impacted by 200 bps due to $6.0 million of depreciation and amortization expense related to the Parsec acquisition[5] 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] - The average operating revenue per load, excluding fuel surcharges, decreased by 2.2% year-over-year[6] 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] Shareholder Information Cash Dividend and Financial Position 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 $0.105 per share has been declared, payable on April 1, 2025, to shareholders of record on March 3, 2025[11] Financial Position as of Dec 31, 2024 ($) | 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] Financial Statements Unaudited Condensed Consolidated Statements of Income 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 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 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 EBITDA Reconciliation 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][27] 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% |