Universal(ULH) - 2025 Q1 - Quarterly Results

Q1 2025 Financial and Operational Overview Q1 2025 Financial Highlights Universal Logistics experienced a significant decline in Q1 2025 financial performance, marked by substantial drops in net income and operating revenues Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $382.4M | $491.9M | -22.3% | | Net Income | $6.0M | $52.5M | -88.6% | | Diluted EPS | $0.23 | $1.99 | -$1.76 | | Operating Income | $15.7M | $75.1M | -$59.4M | | Operating Margin | 4.1% | 15.3% | -11.2 p.p. | | EBITDA | $51.7M | $96.9M | -$45.2M | | EBITDA Margin | 13.5% | 19.7% | -6.2 p.p. | CEO Commentary CEO Tim Phillips attributed the weak Q1 performance to a sluggish start, lower auto production, and persistent freight market weakness - The CEO identified several factors for the poor Q1 results: - A sluggish start to 2025 - Lower auto production - Sustained weakness in the freight market[3] - The company is implementing corrective measures, including improving underperforming operations and focusing on strategic customer acquisition to drive profitable growth[3] Segment Performance Contract Logistics The Contract Logistics segment saw an 18.4% revenue decrease and a sharp decline in operating income, primarily due to a completed high-margin project Contract Logistics Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $255.9M | $313.5M | | Income from Operations | $23.9M | $81.5M | | Operating Margin | 9.3% | 26.0% | - The recent acquisition of Parsec contributed $56.4 million to Q1 2025 revenues[4] - The decrease in operating income and margin is primarily attributed to the completion of a high-margin specialty development project in Stanton, TN, which contributed $95.3 million in revenue in Q1 2024[4] Intermodal The Intermodal segment experienced a 9.8% revenue decline and a wider operating loss, driven by reduced load volumes and lower average revenue per load Intermodal Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $70.7M | $78.4M | | Operating (Loss) | $(10.7)M | $(8.3)M | | Operating Margin | (15.1)% | (10.6)% | - Performance was negatively impacted by a 3.4% decline in load volumes and an 8.7% decrease in average operating revenue per load (excluding fuel)[7] Trucking The Trucking segment's operating revenues decreased by 20.2%, largely due to a significant drop in brokerage services revenue and lower load volumes Trucking Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $55.6M | $69.7M | | Income from Operations | $2.2M | $3.7M | | Operating Margin | 3.9% | 5.3% | - Brokerage services revenue, included in this segment, decreased to $18.0 million from $28.6 million in the prior year[8] - Load volumes declined by 31.3%, while average operating revenue per load (excluding fuel) increased by 24.3%[8] Shareholder Returns and Financial Position Cash Dividend The Board of Directors declared a quarterly cash dividend of $0.105 per share, consistent with the prior year - A cash dividend of $0.105 per share was declared[9] - The dividend is payable on July 1, 2025, to shareholders of record at the close of business on June 2, 2025[9] Financial Position As of March 29, 2025, Universal Logistics maintained $20.6 million in cash and $740.0 million in outstanding debt Financial Position as of March 29, 2025 | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $20.6M | | Marketable securities | $12.0M | | Outstanding debt | $740.0M | | Capital expenditures (Q1) | $52.6M | Financial Statements Unaudited Condensed Consolidated Statements of Income The income statement for Q1 2025 shows a significant drop in total operating revenues and net income compared to the prior year Q1 2025 Condensed Income Statement (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $382,390 | $491,907 | | Total operating expenses | $366,710 | $416,815 | | Income from operations | $15,680 | $75,092 | | Net income | $6,014 | $52,457 | | Diluted EPS | $0.23 | $1.99 | Unaudited Condensed Consolidated Balance Sheets The balance sheet as of March 29, 2025, indicates a slight increase in total assets, with total liabilities rising and shareholders' equity remaining stable Condensed Balance Sheet (in thousands) | Line Item | March 29, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $389,093 | $409,813 | | Total assets | $1,800,205 | $1,786,837 | | Total liabilities | $1,153,803 | $1,139,814 | | Total shareholders' equity | $646,402 | $647,023 | Unaudited Summary of Operating Data This section details key operational metrics, including increased active programs in Contract Logistics and decreased load volumes in Intermodal and Trucking Q1 2025 vs Q1 2024 Key Operating Metrics | Segment & Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Contract Logistics | | | | Number of active value-added programs | 87 | 71 | | Intermodal | | | | Number of loads | 101,470 | 105,037 | | Avg. revenue per load (ex-fuel) | $517 | $566 | | Trucking | | | | Number of loads | 28,622 | 41,691 | | Avg. revenue per load (ex-fuel) | $1,874 | $1,508 | Non-GAAP Financial Measures EBITDA Reconciliation The EBITDA reconciliation shows a significant decrease in Q1 2025 EBITDA and margin compared to Q1 2024, reflecting core operational performance EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $6,014 | $52,457 | | Income tax expense | $2,020 | $17,660 | | Interest expense, net | $8,224 | $6,079 | | Depreciation | $29,989 | $15,902 | | Amortization | $5,499 | $4,799 | | EBITDA | $51,746 | $96,897 | | EBITDA margin | 13.5% | 19.7% | - The company states that it presents EBITDA because it believes the measure helps investors and analysts compare performance on a consistent basis by excluding items not indicative of core operating performance[26] Other Information Conference Call Information The company will host a conference call on April 25, 2025, to discuss the quarterly results, with dial-in details provided for participation - An earnings conference call is scheduled for 10:00 a.m. ET on Friday, April 25, 2025[13] About Universal & Forward-Looking Statements Universal Logistics Holdings provides customized transportation and logistics solutions, with the report including standard forward-looking statement disclaimers - Universal provides a variety of customized transportation and logistics solutions, including value-added, dedicated, intermodal, and trucking services throughout the United States, Mexico, Canada, and Colombia[14] - The press release includes forward-looking statements that are subject to risks and uncertainties, and the company assumes no obligation to update them[15]