Exhibit 99.1
For further information:
Robert Sigler
Vice President and Chief Financial Officer
586.920.0100
Universal Truckload Services, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2004
Warren, MI — March 21, 2005 — Universal Truckload Services, Inc. (Nasdaq: UACL) announced today its financial results for the quarter and year ended December 31, 2004.
For the quarter ended December 31, 2004, operating revenues increased 51.5%, or $38.8 million, to $114.1 million from $75.3 million for the quarter ended December 31, 2003. Included in operating revenues are fuel surcharges of $5.6 million and $1.3 million for the fourth quarters of 2004 and 2003, respectively. Net income increased 32.7%, or $859,000, to $3.5 million, or $0.35 per share, from $2.6 million, or $0.26 per share, for the quarter ended December 31, 2003. Included in the 2004 fourth quarter operating revenues was $25.2 million from our subsidiaries Great American Lines, Inc. and CrossRoad Carriers, Inc., which were acquired in August and November 2004, respectively.
Universal’s truckload revenue in the fourth quarter of 2004 increased by 35.5% to $73.8 million from $54.4 million in the corresponding period of 2003. Brokerage revenue in the fourth quarter of 2004 increased by 130.9% to $31.0 million from $13.4 million in the corresponding period of 2003. Intermodal revenue in the fourth quarter of 2004 increased by 25.0% to $9.2 million from $7.4 million in the corresponding period of 2003.
For the year ended December 31, 2004, operating revenues increased 30.4%, or $84.3 million, to $362.0 million from $277.7 million for the year ended December 31, 2003. Included in operating revenues are fuel surcharges of $12.4 million and $5.4 million for 2004 and 2003, respectively. Net income increased 27.5%, or $2.4 million, to $11.1 million, or $1.11 per share, from $8.7 million, or $0.87 per share, for the year ended December 31, 2003. Included in 2004 operating revenues was $37.8 million from Great American Lines, Inc. and CrossRoad Carriers, Inc.
“We are very pleased with our results and accomplishments in 2004,” stated Universal’s President and CEO Don Cochran. “The increase in our operating revenues of 30.4% over 2003 combined with the successful completion of two acquisitions gives us a lot to be proud of and demonstrates the strength of our organization.”
Cochran added, “Freight demand remained strong through the end of 2004. We were successful in meeting our customer’s freight needs through the expansion of our network of owner-operators, which has increased by approximately 30% since December of 2003, and through the use of approved third party carriers (brokering). Revenues generated through third party carriers increased by $34.7 million in 2004, representing an 80.8% increase over 2003.”
Management has not scheduled a conference call with this earnings release. The Company will have a conference call following its first quarter of 2005 earnings release.
Universal Truckload Services, Inc. is primarily a non-asset based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The Company’s trucking services include both flatbed and dry van operations and the Company provides rail-truck and steamship-truck intermodal support services. The Company also offers truck brokerage services.
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 are 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.
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UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
| Quarter Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Truckload | $ | 73,834 | $ | 54,472 | $ | 249,114 | $ | 205,807 | ||||||||
| Brokerage | 31,036 | 13,442 | 77,726 | 43,000 | ||||||||||||
| Intermodal | 9,239 | 7,390 | 35,176 | 28,891 | ||||||||||||
| Total operating revenues | 114,109 | 75,304 | 362,016 | 277,698 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Purchased transportation | 85,285 | 55,595 | 269,687 | 204,947 | ||||||||||||
| Commissions expense | 7,974 | 6,272 | 27,354 | 22,228 | ||||||||||||
| Other operating expense, net | 1,679 | 932 | 5,268 | 4,069 | ||||||||||||
| Selling, general, and administrative | 8,974 | 5,742 | 27,640 | 22,570 | ||||||||||||
| Insurance and claims | 3,024 | 1,790 | 9,602 | 6,954 | ||||||||||||
| Depreciation and amortization | 1,200 | 751 | 3,913 | 2,863 | ||||||||||||
| Total operating expenses | 108,136 | 71,082 | 343,464 | 263,631 | ||||||||||||
| Income from operations | 5,973 | 4,222 | 18,552 | 14,067 | ||||||||||||
| Interest expense, net | 378 | 62 | 777 | 246 | ||||||||||||
| Income before provision for income taxes | 5,595 | 4,160 | 17,775 | 13,821 | ||||||||||||
| Provision for income taxes | 2,112 | 1,536 | 6,657 | 5,103 | ||||||||||||
| Net income | $ | 3,483 | $ | 2,624 | $ | 11,118 | $ | 8,718 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic and diluted | $ | 0.35 | $ | 0.26 | $ | 1.11 | $ | 0.87 | ||||||||
| Average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 10,023 | 10,023 | 10,023 | 10,023 | ||||||||||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| December 31, | ||||||||
| 2004 | 2003 | |||||||
| Assets | ||||||||
| Cash | $ | 904 | $ | 423 | ||||
| Accounts receivable — net | 59,441 | 43,216 | ||||||
| Other current assets | 8,257 | 3,055 | ||||||
| Total current assets | 68,602 | 46,694 | ||||||
| Property and equipment — net | 23,831 | 17,189 | ||||||
| Other long-term assets — net | 12,851 | 2,957 | ||||||
| Total assets | $ | 105,284 | $ | 66,840 | ||||
| Liabilities and shareholders’ equity (deficit) | ||||||||
| Total current liabilities | $ | 117,520 | $ | 33,745 | ||||
| Total long-term liabilities | 4,589 | 1,609 | ||||||
| Total liabilities | 122,109 | 35,354 | ||||||
| Total shareholders’ equity (deficit) | (16,825 | ) | 31,486 | |||||
| Total liabilities and shareholders’ equity (deficit) | $ | 105,284 | $ | 66,840 | ||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Number of agents (1) | 359 | 327 | 359 | 327 | ||||||||||||
| Average number of tractors provided by owner-operators | 2,574 | 2,049 | 2,306 | 2,114 | ||||||||||||
| Average operating revenues per loaded mile (2) | $ | 2.07 | $ | 1.75 | $ | 1.90 | $ | 1.66 | ||||||||
| Average operating revenues per loaded mile, excluding fuel surcharges (2) | $ | 1.95 | $ | 1.71 | $ | 1.83 | $ | 1.62 | ||||||||
| Average operating revenues per load (2) | $ | 959 | $ | 952 | $ | 922 | $ | 907 | ||||||||
| Average operating revenues per load, excluding fuel surcharges (2) | $ | 906 | $ | 933 | $ | 886 | $ | 887 | ||||||||
| Average length of haul (2) | 463 | 544 | 484 | 547 | ||||||||||||
| Number of loads (2) | 104,442 | 71,353 | 349,453 | 274,213 | ||||||||||||
| (1) | Includes only those agents who generated at least $100,000 in operating revenues, on an annualized basis, during the periods indicated | |
| (2) | Excludes operating data from our intermodal support services in order to improve the relevance of the statistical data related to our truckload and brokerage services and improve the comparability to our peer companies. Additionally, excludes the operating results of CrossRoad Carriers, which was acquired on November 1, 2004. CrossRoad Carriers did not track this statistical data for the periods presented. |