WARREN, Mich., Oct. 23, 2014 /PRNewswire/ -- Universal Truckload Services, Inc. (NASDAQ: UACL) reported today third quarter net income of $13.1 million, or $0.44 per basic and diluted share on total operating revenue of $302.1 million. This compares to net income of $13.7 million, or $0.46 per basic and diluted share, on total operating revenues of $261.7 million during the third quarter of 2013. Total operating revenues increased 15.5% and earnings per share declined $0.02 compared to the prior year, reflecting a different mix of transportation and logistics segment business and corporate charges unrelated to operating activities.

Operating revenues from transportation services increased $15.9 million, or 8.8%, to $196.8 million in the quarter ended September 27, 2014, from the comparable period last year, due to a 6.2% year-over-year increase in loads and continuing strength in pricing. Value-added services revenues increased $21.2 million in the most recent quarter. However, revenues from subsidiaries delivering these services that have been included in consolidated financial results for more than one year declined 6.9%, or $3.3 million, due to the conclusion of certain customer operations. Revenues from intermodal services increased 10.0%, to $36.2 million from $32.9 million in the third quarter of 2013. The $3.3 million net increase in revenues from intermodal services includes a $4.1 million increase in our intermodal drayage services.

In the aggregate, income from operations increased 2.2% to $23.0 million, compared to $22.5 million in the third quarter of 2013. Income from operations in our transportation segment increased 23.7% to $10.2 million or 5.0% of segment operating revenues for the third quarter of 2014, which compares to $8.3 million or 4.5% of segment operating revenues for the third quarter of 2013. Income from operations in our logistics segment, which includes value-added services and dedicated transportation services, decreased 9.1% to $14.0 million or 14.3% of operating revenues for the third quarter of 2014. This compares to $15.4 million or 19.2% of operating revenues one year earlier.

"Universal's truckload and intermodal businesses met our revenue expectations in the third quarter, owing to favorable load count and pricing trends, and they achieved quarter-over-quarter margin improvements," according to Jeff Rogers, Executive Vice President. "In our logistics segment, we are focused on three priorities: enhancing and further penetrating existing customer relationships, improving the profitability of our dedicated transportation services, and continuing to develop domestic and international opportunities in our sales pipeline."

We calculate and report selected financial metrics in connection with lending arrangements, and also to isolate and separately identify the impact of corporate development activities, which can include non-operating transaction costs and amortization of intangible assets recognized as the result of prior acquisitions. These statistics are described in more detail below in the section captioned "Non-GAAP Financial Measures."

For the thirteen weeks ended September 27, 2014, our EBITDA increased 15.8% to $31.5 million, from $27.2 million for the thirteen weeks ended September 27, 2013. Expressed as a percentage of operating revenues, third quarter 2014 EBITDA remained unchanged at 10.4% compared the third quarter of 2013. Trends in EBITDA expressed as a percentage of operating revenues are substantially similar to trends in income from operations, excluding amortization of acquisition-related intangibles.

As of September 27, 2014, we held cash and cash equivalents totaling $10.0 million and marketable securities totaling $12.3 million. Outstanding debt totaled $238.4 million and obligations pursuant to capital leases were valued at $3.6 million.

Universal Truckload Services, Inc. also announced today that our Board of Directors has declared a quarterly cash dividend of $0.07 per share of common stock. The dividend is payable to shareholders of record at the close of business on November 3, 2014 and is expected to be paid on November 13, 2014.

Conference call:

We invite analysts and investors to participate in a conference call on Friday, October 24, 2014 at 10:00 AM ET. During the call, we will discuss Universal's third quarter 2014 financial performance, the current demand outlook in key markets we serve, and trends impacting our business.

Dial-in details:

Call Toll Free: (866) 622-0924
International Dial-in: +1 (660) 422-4956
Conference ID: 11057654

A replay of the conference will be available two hours after the call through November 20, 2014, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 11057654. Additionally, the call will be available on investors.goutsi.com.

About Universal:

Universal Truckload Services, Inc. is a leading asset-light provider of customized transportation and logistics solutions throughout the United States, Mexico and Canada. We provide our customers with supply chain solutions that can be scaled to meet their changing demands and volumes. We offer our customers a broad array of services across their entire supply chain, including transportation, value-added, and intermodal services.

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 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 the Company's reports and filings with the Securities and Exchange Commission. The Company 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 TRUCKLOAD SERVICES, INC.

                                                                    Unaudited Condensed Consolidated Statements of Income

                                                                            (In thousands, except per share data)


                                                            Thirteen Weeks Ended                                Thirty-nine Weeks Ended
                                                            --------------------                                -----------------------

                                                                September 27,                                        September 28,               September 27,           September 28,

                                                                                      2014                                                  2013                    2014                     2013
                                                                                      ----                                                  ----                    ----                     ----

    Operating revenues:

    Transportation services                                                       $196,777                                              $180,847                $574,098                 $527,213

    Value-added services                                                            69,170                                                47,936                 214,659                  146,887

    Intermodal services                                                             36,181                                                32,880                 100,284                   99,844
                                                                                    ------                                                ------                 -------                   ------

    Total operating revenues                                                       302,128                                               261,663                 889,041                  773,944


    Operating expenses:

    Purchased transportation and equipment rent                                    160,269                                               143,436                 456,212                  419,590

    Direct personnel and related benefits                                           47,351                                                43,898                 155,269                  132,897

    Commission expense                                                              11,687                                                10,132                  32,440                   29,254

    Operating expense (exclusive of items shown separately)                         28,286                                                18,946                  89,565                   57,821

    Occupancy expense                                                                6,457                                                 4,661                  19,870                   14,923

    Selling, general and administrative                                             10,350                                                 7,904                  31,658                   24,445

    Insurance and claims                                                             6,259                                                 5,523                  17,853                   14,905

    Depreciation and amortization                                                    8,469                                                 4,683                  24,132                   14,749
                                                                                     -----                                                 -----                  ------                   ------

    Total operating expenses                                                       279,128                                               239,183                 826,999                  708,584
                                                                                   -------                                               -------                 -------                  -------

    Income from operations                                                          23,000                                                22,480                  62,042                   65,360

    Interest expense, net                                                          (2,049)                                              (1,094)                (6,087)                 (3,124)

    Other non-operating income                                                         101                                                   105                     315                      366
                                                                                       ---                                                   ---                     ---                      ---

    Income before provision for income taxes                                        21,052                                                21,491                  56,270                   62,602

    Provision for income taxes                                                       7,958                                                 7,749                  21,419                   23,332

    Net income                                                                     $13,094                                               $13,742                 $34,851                  $39,270
                                                                                   =======                                               =======                 =======                  =======


    Earnings per common share:

    Basic                                                                            $0.44                                                 $0.46                   $1.16                    $1.31

    Diluted                                                                          $0.44                                                 $0.46                   $1.16                    $1.30


    Weighted average number of common shares outstanding:

    Basic                                                                           29,947                                                30,065                  30,037                   30,058

    Diluted                                                                         29,982                                                30,118                  30,077                   30,099


    Dividends paid per common share:                                                 $0.07                                                 $0.07                   $0.21                    $0.07
                                                                                     =====                                                 =====                   =====                    =====


                                          UNIVERSAL TRUCKLOAD SERVICES, INC.

                                   Unaudited Condensed Consolidated Balance Sheets

                                                    (In thousands)



                                                      September 27, 2014           December 31, 2013
                                                      ------------------           -----------------

    Assets

    Cash and cash equivalents                                           $10,004                     $10,223

    Marketable securities                                                12,325                      11,626

    Accounts receivable - net                                           160,132                     132,001

    Other current assets                                                 39,816                      49,539
                                                                         ------                      ------

    Total current assets                                                222,277                     203,389

    Property and equipment - net                                        165,014                     142,656

    Other long-term assets - net                                        137,001                     144,091
                                                                        -------                     -------

    Total assets                                                       $524,292                    $490,136
                                                                       ========                    ========


    Liabilities and shareholders'
     equity

    Current liabilities, excluding
     current maturities of capital
     lease obligations and debt                                        $108,383                     $93,896

    Capital lease obligations                                             3,577                       4,643

    Debt                                                                238,421                     237,500

    Other long-term liabilities                                          44,707                      48,532
                                                                         ------                      ------

    Total liabilities                                                   395,088                     384,571

    Total shareholders' equity                                          129,204                     105,565
                                                                        -------                     -------

    Total liabilities and
     shareholders' equity                                              $524,292                    $490,136
                                                                       ========                    ========




                                                                                          UNIVERSAL TRUCKLOAD SERVICES, INC.

                                                                                          Unaudited Summary of Operating Data


                                                                                                                                  Thirteen Weeks Ended            Thirty-nine Weeks Ended
                                                                                                                                  --------------------            -----------------------

          September 27,                              September 28,                                   September 27,                         September 28,

                                                                                     2014                                    2013                            2014                              2013
                                                                                     ----                                    ----                            ----                              ----


    Transportation Services:

                              Average operating revenues per loaded mile
                              (a)                                                                                          $3.03                           $2.84                             $2.98    $2.76

                             Average operating revenues per loaded mile,

                             excluding fuel surcharges, where separately identifiable (a)                                  $2.65                           $2.47                             $2.58    $2.38

                             Average operating revenues per load (a)                                                      $1,081                          $1,030                            $1,053   $1,010

                              Average operating revenues per load,
                              excluding

                             fuel surcharges, where separately identifiable (a)                                             $944                            $894                              $914     $869

                             Average length of haul (a) (b)                                                                  357                             363                               354      366

                             Number of loads (a)                                                                         163,853                         154,358                           481,513  463,673


    Value Added Services:

                             Number of facilities (d)

                             Customer provided                                                                                15                              17                                15       17

                             Company leased                                                                                   30                              26                                30       26
                                                                                                                             ---                             ---                               ---      ---

                                  Total                                                                                       45                              43                                45       43


    Intermodal Services:

                             Drayage (in thousands)                                                                      $32,760                         $28,647                           $90,333  $81,280

                             Domestic Intermodal (in thousands)                                                            1,103                           1,718                             2,650   10,886

                             Depot (in thousands)                                                                          2,318                           2,515                             7,301    7,678

                                  Total (in thousands)                                                                   $36,181                         $32,880                          $100,284  $99,844



                              Average operating revenues per loaded mile
                              (c)                                                                                          $5.49                           $4.78                             $5.31    $4.57

                             Average operating revenues per loaded mile,

                             excluding fuel surcharges, where separately identifiable (c)                                  $4.41                           $3.87                             $4.27    $3.68

                             Average operating revenues per load (c)                                                        $406                            $378                              $400     $345

                              Average operating revenues per load,
                              excluding

                             fuel surcharges, where separately identifiable (c)                                             $326                            $307                              $322     $278

                             Number of loads (c)                                                                          80,598                          75,715                           225,679  235,372

                             Number of container yards                                                                        11                              11                                11       11


             (a)     Excludes
                     operating
                     data from
                     Universal
                     Logistics
                     Solutions,
                     Inc., and
                     Universal
                     Logistics
                     Solutions
                     International,
                     Inc., in
                     order to
                     improve the
                     relevance of
                     the
                     statistical
                     data related
                     to our
                     brokerage
                     services and
                     improve the
                     comparability
                     to our peer
                     companies.
                     Also
                     excludes
                     final mile
                     delivery and
                     shuttle
                     service
                     loads.

    (b)              Average
                     length of
                     haul is
                     computed
                     using loaded
                     miles,
                     excluding
                     final mile
                     delivery and
                     shuttle
                     service
                     loads.

    (c)              Excludes
                     operating
                     data from
                     Universal
                     Logistics
                     Solutions,
                     Inc. in
                     order to
                     improve the
                     relevance of
                     the
                     statistical
                     data related
                     to our
                     intermodal
                     services and
                     improve the
                     comparability
                     to our peer
                     companies.

    (d)              Excludes
                     storage
                     yards,
                     terminals
                     and office
                     facilities.


                                                                                  UNIVERSAL TRUCKLOAD SERVICES, INC.

                                                                            Unaudited Summary of Operating Data - Continued


                                                                    Thirteen Weeks Ended                                Twenty-six Weeks Ended
                                                                    --------------------                                ----------------------

                          September 27,            September 28,       September 27,                                         September 28,

                                                                                           2014                                                 2013      2014       2013
                                                                                           ----                                                 ----      ----       ----


    Average Headcount:

                                        Employees                                            4,228                                                3,636     4,217      3,354

                                        Full time equivalents                                1,541                                                1,794     1,580      1,829


                                             Total                                           5,769                                                5,430     5,797      5,183


    Average number of tractors:

                                        Provided by owner-operators                          3,365                                                3,324     3,327      3,345

                                        Owned                                                  836                                                  707       797        694

                                        Third party lease                                       41                                                   82        65         64


                                             Total                                           4,242                                                4,113     4,189      4,103


    Operating Revenues by Segment:

                                        Transportation                                    $203,944                                             $181,572  $574,667   $529,375

                                        Logistics                                           98,081                                               79,977   314,049    244,244

                                        Other                                                  103                                                  114       325        325

                                                                                          $302,128                                             $261,663  $889,041   $773,944
                                                                                          ========                                             ========  ========   ========


    Income from Operations by Segment:

                                        Transportation                                     $10,218                                               $8,261   $25,347    $21,481

                                        Logistics                                           13,992                                               15,388    39,754     46,032

                                        Other                                              (1,210)                                             (1,169)  (3,059)   (2,153)

                                                                                           $23,000                                              $22,480   $62,042    $65,360
                                                                                           =======                                              =======   =======    =======

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 as supplemental measures of our performance. We define EBITDA as net income plus (i) interest expense, net, (ii) provision for income taxes and (iii) depreciation and amortization, and less other non-operating income, or EBITDA. 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                         Thirty-nine Weeks Ended
                                                --------------------                         -----------------------

                                  September 27,               September 28,         September 27,                       September 28,

                                                       2014                    2013                                2014                   2013
                                                       ----                    ----                                ----                   ----

                                                  ( in thousands)                                ( in thousands)

    EBITDA

    Net income                                      $13,094                 $13,742                             $34,851                $39,270

    Provision for income taxes                        7,958                   7,749                              21,419                 23,332

    Interest expense, net                             2,049                   1,094                               6,087                  3,124

    Depreciation and amortization                     8,469                   4,683                              24,132                 14,749

    Other non-operating income                        (101)                  (105)                              (315)                 (366)
                                                       ----                    ----                                ----                   ----

    EBITDA                                          $31,469                 $27,163                             $86,174                $80,109
                                                    =======                 =======                             =======                =======


    EBITDA margin (a)                                 10.4%                  10.4%                               9.7%                 10.4%


    (a)              EBITDA margin is computed
                     by dividing EBITDA by
                     total operating revenues
                     for each of the periods
                     indicated.

We present EBITDA because we believe it assists 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 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 EBITDA only supplementally.

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SOURCE Universal Truckload Services, Inc.