Universal Logistics Holdings Reports Fourth Quarter 2024 Financial Results; Declares Dividend

Fourth Quarter 2024 Operating Revenues: $465.1 million, 19.0% increase Fourth Quarter 2024 Operating Income: $38.3 million, 12.3% increase Fourth Quarter 2024 Earnings Per Share: $0.77 per share, 4.9% decrease Declares Quarterly Dividend: $0.105 per share , /PRNewswire/ -- Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated fourth quarter 2024 net income of $20.2 million, or $0.77 per diluted share, on total operating revenues of $465.1 million. This compares to net income of $21.4 million, or $0.81 per diluted share, during fourth quarter 2023 on total operating revenues of $390.9 million. For the full year 2024, Universal reported $4.93 per diluted share, on total operating revenues of $1.85 billion. This compares to $3.53 per diluted share, on total operating revenues of $1.66 billion for the full year 2023. In the fourth quarter 2024, Universal's operating income increased $4.2 million to $38.3 million, compared to $34.1 million in the fourth quarter one year earlier. As a percentage of operating revenue, operating margin for the fourth quarter 2024 was 8.2%, compared to 8.7% during the same period last year. EBITDA, a non-GAAP measure, increased $18.7 million during the fourth quarter 2024 to $73.5 million, compared to $54.8 million one year earlier. As a percentage of operating revenue, EBITDA margin for the fourth quarter 2024 was 15.8%, compared to 14.0% during the same period last year. "Universal notched another solid performance during the fourth quarter, making the full-year 2024 our second best financial performance in company history," stated Tim Phillips, Universal's CEO. "Our contract logistics segment continues to be the cornerstone of our success, and we remain committed to making smart investments in this space, such as our recent acquisition of Parsec. Strong demand for our specialized, heavy-haul services has also enabled our trucking segment to produce solid results during the quarter, and throughout all of 2024. While we are proud of our many successes, we remain focused on improving underperforming operations, gaining efficiencies and maintaining a high-level of cost control. 2024 was an exciting, and challenging year for Universal, and I am deeply thankful for the talented team who guided us through. We will keep pushing forward, delivering exceptional service to our customers while continuing to execute our long-term strategy." Segment Information: Contract Logistics Fourth Quarter 2024 Operating Revenues: $307.4 million, 52.7% increase Fourth Quarter 2024 Operating Income: $39.1 million, 12.7% operating margin In the contract logistics segment, which includes our value-added and dedicated services, fourth quarter 2024 operating revenues increased 52.7% to $307.4 million, compared to $201.3 million for the same period last year. Fourth quarter 2024 revenues included $51.3 million attributable to our specialty development project in Stanton, TN, which was completed during the period, and an additional $59.5 million from the fourth quarter acquisition of Parsec. Included in contract logistics segment revenues were also $8.3 million in separately identified fuel surcharges from dedicated transportation services, compared to $8.9 million during the same period last year. At the end of the fourth quarter 2024, we managed 90 value-added programs, including 20 new rail terminal operations compared to a total of 71 programs at the end of the fourth quarter 2023. Fourth quarter 2024 income from operations increased $7.0 million to $39.1 million, compared to $32.1 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment for the fourth quarter 2024 was 12.7%, compared to 15.9% during the same period last year. Included in contract logistics operating results was of $6.0 million of depreciation and amortization expense related to Parsec, which lowered the fourth quarter 2024 operating margin in this segment by 200 bps. Intermodal Fourth Quarter 2024 Operating Revenues: $73.1 million, 15.9% decrease Fourth Quarter 2024 Operating (Loss): $(9.7) million, (13.2)% operating margin Operating revenues in the intermodal segment decreased 15.9% to $73.1 million in the fourth quarter 2024, compared to $86.9 million for the same period last year. Included in intermodal segment revenues for the recently completed quarter were $9.1 million in separately identified fuel surcharges, compared to $13.0 million during the same period last year. Intermodal segment revenues also included other accessorial charges such as detention, demurrage and storage, which totaled $8.6 million during the fourth quarter 2024, compared to $8.7 million one year earlier. Load volumes declined 15.3%, while the average operating revenue per load, excluding fuel surcharges, declined by 2.2% on a year-over-year basis. Fourth quarter 2024 operating losses in the intermodal segment were $(9.7) million compared to an operating loss of $(1.0) million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the fourth quarter 2024 was (13.2)%, compared to (1.1)% one year earlier. Trucking Fourth Quarter 2024 Operating Revenues: $83.8 million, 11.5% increase Fourth Quarter 2024 Operating Income: $5.8 million, 6.9% operating margin In the trucking segment, fourth quarter 2024 operating revenues increased 11.5% to $83.8 million, compared to $75.2 million for the same period last year. Fourth quarter 2024 trucking segment revenues included $22.8 million of brokerage services, compared to $30.0 million during the same period last year. Also included in our trucking segment revenues were $4.1 million in separately identified fuel surcharges during the fourth quarter 2024, compared to $5.6 million in fuel surcharges one year earlier. On a year-over-year basis, load volumes declined 17.0%; however, the average operating revenue per load, excluding fuel surcharges, increased 30.5%, which was driven primarily by our specialty, heavy-haul wind business. Income from operations in the fourth quarter 2024 was $5.8 million compared to $2.5 million during the same period last year. As a percentage of revenue, operating margin in the trucking segment for the fourth quarter 2024 was 6.9% compared to 3.3% 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 3, 2025 and is expected to be paid on April 1, 2025. Other Matters As of December 31, 2024, Universal held cash and cash equivalents totaling $19.4 million and $11.6 million in marketable securities. Outstanding debt at the end of the fourth quarter 2024 was $762.6 million and capital expenditures totaled $37.4 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 7, 2025 Call Toll Free: (800) 836-8184 International Dial-in: +1 (646) 357-8785 A replay of the conference call will be available through February 14, 2025, by calling (888) 660-6345 (toll free) or +1 (646) 517-4150 (toll) and using encore replay code 40331#. The call will also be available on investors.universallogistics.com. About Universal: Universal Logistics Holdings, Inc. ("Universal") is a holding company whose subsidiaries provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia. Our operating subsidiaries provide our customers with supply chain solutions that can be scaled to meet their changing demands. We offer our customers a broad array of services across their entire supply chain, including value-added, dedicated, intermodal and trucking 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, 2024 2023 2024 2023 Operating revenues: Truckload services $ 61,850 $ 46,015 $ 234,397 $ 213,874 Brokerage services 25,545 58,132 181,259 244,024 Intermodal services 70,379 85,426 300,721 374,667 Dedicated services 77,821 85,541 344,210 343,543 Value-added services 229,536 115,806 785,448 486,031 Total operating revenues 465,131 390,920 1,846,035 1,662,139 Operating expenses: Purchased transportation and equipment rent 100,320 127,779 482,948 571,213 Direct personnel and related benefits 174,871 130,775 583,251 542,779 Operating supplies and expenses 78,644 40,643 295,558 170,994 Commission expense 4,800 7,221 27,285 31,370 Occupancy expense 12,020 11,195 44,209 44,301 General and administrative 14,081 12,872 55,323 51,839 Insurance and claims 5,719 6,368 26,441 27,163 Depreciation and amortization 36,393 19,975 124,188 77,036 Impairment expense — — 3,720 — Total operating expenses 426,848 356,828 1,642,923 1,516,695 Income from operations 38,283 34,092 203,112 145,444 Interest expense, net (9,828) (6,163) (30,207) (22,753) Other non-operating income (expense) (1,171) 722 837 1,608 Income before income taxes 27,284 28,651 173,742 124,299 Provision for income taxes 7,109 7,239 43,835 31,398 Net income $ 20,175 $ 21,412 $ 129,907 $ 92,901 Earnings per common share: Basic $ 0.77 $ 0.81 $ 4.94 $ 3.53 Diluted $ 0.77 $ 0.81 $ 4.93 $ 3.53 Weighted average number of common shares outstanding: Basic 26,318 26,284 26,315 26,284 Diluted 26,358 26,301 26,348 26,308 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, 2024 December 31, 2023 Assets Cash and cash equivalents $ 19,351 $ 12,511 Marketable securities 11,590 10,772 Accounts receivable - net 293,646 287,947 Other current assets 85,226 54,243 Total current assets 409,813 365,473 Property and equipment - net 742,366 561,088 Other long-term assets - net 635,553 326,962 Total assets $ 1,787,732 $ 1,253,523 Liabilities and shareholders' equity Current liabilities, excluding current maturities of debt $ 215,756 $ 189,727 Debt - net 759,085 381,924 Other long-term liabilities 165,868 149,674 Total liabilities 1,140,709 721,325 Total shareholders' equity 647,023 532,198 Total liabilities and shareholders' equity $ 1,787,732 $ 1,253,523 UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data Thirteen Weeks Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Contract Logistics Segment: Average number of value-added direct employees 7,337 5,582 5,809 5,521 Average number of value-added full-time equivalents 57 205 88 450 Number of active value-added programs 90 71 90 71 Intermodal Segment: Number of loads (a) 100,457 118,553 417,790 473,569 Average operating revenue per load, excluding fuel surcharges (a) $ 537 $ 549 $ 554 $ 563 Average number of tractors 1,451 1,830 1,585 2,034 Number of depots 8 9 8 9 Trucking Segment: Number of loads 36,068 43,468 155,288 178,036 Average operating revenue per load, excluding fuel surcharges $ 2,183 $ 1,673 $ 1,993 $ 1,738 Average number of tractors 699 828 767 877 Average length of haul 394 399 334 390 (a) Excludes operating data from freight forwarding division in order to improve the relevance of the statistical data related to our intermodal segment 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, 2024 2023 2024 2023 Operating Revenues by Segment: Contract logistics $ 307,357 $ 201,347 $ 1,129,658 $ 829,574 Intermodal 73,095 86,874 308,744 382,610 Trucking 83,840 75,168 331,982 333,211 Other 839 27,531 75,651 116,744 Total $ 465,131 $ 390,920 $ 1,846,035 $ 1,662,139 Income from Operations by Segment: Contract logistics $ 39,094 $ 32,079 $ 219,084 $ 127,752 Intermodal (9,683) (964) (27,741) 1,604 Trucking 5,788 2,488 20,963 17,258 Other 3,084 489 (9,194) (1,170) Total $ 38,283 $ 34,092 $ 203,112 $ 145,444 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, 2024 2023 2024 2023 ( in thousands) ( in thousands) EBITDA 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 (a) 15.8 % 14.0 % 17.8 % 13.5 % (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. SOURCE Universal Logistics Holdings, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Universal Logistics Holdings Reports Fourth Quarter 2024 Financial Results; Declares Dividend

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