Exhibit 99.1
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For further information: Robert Sigler Vice President and Chief Financial Officer 586.920.0100 |
Universal Truckload Services, Inc. Reports Record Revenue and Net Income for the Thirteen and Twenty-six Weeks Ended July 1, 2006
Warren, MI – July 26, 2006 — Universal Truckload Services, Inc. (Nasdaq: UACL) today announced record financial results for the thirteen and twenty-six weeks ended July 1, 2006.
For the thirteen weeks ended July 1, 2006, operating revenues increased 25.5%, or $32.5 million, to $160.0 million from $127.5 million for the thirteen weeks ended July 2, 2005. Included in operating revenues are fuel surcharges of $15.6 million and $7.6 million for the second quarters of 2006 and 2005, respectively. Net income increased 23.1%, or $1.0 million, to $5.4 million, or $0.33 per share for the second quarter of 2006, from $4.4 million, or $0.27 per share, for the second quarter of 2005. Operating margin was 5.3% for the second quarter of 2006 compared to 5.4% for the second quarter of 2005.
Universal’s truckload revenue in the second quarter of 2006 increased by 19.9% to $95.8 million from $79.9 million in the corresponding period of 2005. Brokerage revenue in the second quarter of 2006 increased by 15.5% to $41.4 million from $35.8 million in the corresponding period of 2005. Intermodal revenue in the second quarter of 2006 increased by 93.8% to $22.8 million from $11.8 million in the corresponding period of 2005.
For the twenty-six weeks ended July 1, 2006, operating revenues increased 23.1%, or $57.4 million, to $305.9 million from $248.5 million for the twenty-six weeks ended July 2, 2005. Included in operating revenues are fuel surcharges of $27.6 million and $13.0 million for the first two quarters of 2006 and 2005, respectively. Net income increased 26.6%, or $2.1 million, to $10.0 million, or $0.62 per share for the first half of 2006, from $7.9 million, or $0.54 per share, for the first half of 2005.
Universal’s truckload revenue in the first half of 2006 increased by 18.9% to $183.2 million from $154.0 million in the corresponding period of 2005. Brokerage revenue in the first half of 2006 increased by 10.4% to $79.5 million from $72.0 million in the corresponding period of 2005. Intermodal revenue in the first half of 2006 increased by 92.4% to $43.2 million from $22.5 million in the corresponding period of 2005.
“We are very pleased with our operating results through the second quarter of 2006”, stated Universal’s President and CEO Don Cochran. “Our revenue and net income growth continues to be strong. We have been able to grow our operating revenues, both organically and through our intermodal acquisitions completed in the fourth quarter of 2005 and first quarter of 2006. These acquisitions generated $9.8 million and $6.0 million of intermodal revenue in the first half of 2006 and the second quarter of 2006, respectively. Excluding the effects of these acquisitions, intermodal revenue increased by 48.7% or $10.9 million in the first half of 2006 and 42.8% or $5.0 million in the second quarter of 2006.”
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 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.
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UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
| | | | | | | | | | | | | |
| | | Thirteen Weeks Ended | | Twenty-six Weeks
Ended | |
| | | July 1,
2006 | | July 2,
2005 | | July 1,
2006 | | July 2,
2005 | |
Operating revenues: | | | | | | | | | | | | | |
Truckload | | $ | 95,843 | | $ | 79,944 | | $ | 183,162 | | $ | 154,018 | |
Brokerage | | | 41,360 | | | 35,807 | | | 79,480 | | | 71,962 | |
Intermodal | | | 22,803 | | | 11,765 | | | 43,249 | | | 22,481 | |
| | | | | | | | | | | | | |
Total operating revenues | | | 160,006 | | | 127,516 | | | 305,891 | | | 248,461 | |
| | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | |
Purchased transportation | | | 122,907 | | | 97,146 | | | 233,782 | | | 188,671 | |
Commissions expense | | | 9,939 | | | 8,310 | | | 19,395 | | | 15,920 | |
Other operating expense, net | | | 2,469 | | | 1,587 | | | 4,430 | | | 3,420 | |
Selling, general, and administrative | | | 10,927 | | | 9,738 | | | 22,215 | | | 19,195 | |
Insurance and claims | | | 3,896 | | | 2,789 | | | 7,743 | | | 6,490 | |
Depreciation and amortization | | | 1,372 | | | 1,025 | | | 2,642 | | | 2,060 | |
| | | | | | | | | | | | | |
Total operating expenses | | | 151,510 | | | 120,595 | | | 290,207 | | | 235,756 | |
| | | | | | | | | | | | | |
Income from operations | | | 8,496 | | | 6,921 | | | 15,684 | | | 12,705 | |
Interest income (expense), net | | | 302 | | | 150 | | | 552 | | | (15 | ) |
| | | | | | | | | | | | | |
Income before income taxes | | | 8,798 | | | 7,071 | | | 16,236 | | | 12,690 | |
Provision for income taxes | | | 3,402 | | | 2,687 | | | 6,278 | | | 4,822 | |
| | | | | | | | | | | | | |
Net income | | $ | 5,396 | | $ | 4,384 | | $ | 9,958 | | $ | 7,868 | |
| | | | | | | | | | | | | |
Earnings per common share: | | | | | | | | | | | | | |
Basic | | $ | 0.33 | | $ | 0.27 | | $ | 0.62 | | $ | 0.54 | |
Diluted | | $ | 0.33 | | $ | 0.27 | | $ | 0.62 | | $ | 0.54 | |
Average common shares outstanding: | | | | | | | | | | | | | |
Basic | | | 16,118 | | | 16,118 | | | 16,118 | | | 14,630 | |
Diluted | | | 16,184 | | | 16,118 | | | 16,160 | | | 14,630 | |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | |
| | | July 1,
2006 | | December 31,
2005 |
Assets | | | | | | |
Cash and cash equivalents | | $ | 5,941 | | $ | 5,342 |
Marketable securities | | | 22,618 | | | 19,456 |
Accounts receivable - net | | | 79,274 | | | 72,032 |
Other current assets | | | 9,775 | | | 11,109 |
| | | | | | |
Total current assets | | | 117,608 | | | 107,939 |
Property and equipment - net | | | 40,079 | | | 34,800 |
Other long-term assets - net | | | 17,219 | | | 15,339 |
| | | | | | |
Total assets | | $ | 174,906 | | $ | 158,078 |
| | | | | | |
Liabilities and shareholders’ equity | | | | | | |
Total current liabilities | | $ | 46,496 | | $ | 41,134 |
Long-term debt | | | 1,000 | | | — |
Other long-term liabilities | | | 4,186 | | | 3,772 |
| | | | | | |
Total liabilities | | | 51,682 | | | 44,906 |
Total shareholders’ equity | | | 123,224 | | | 113,172 |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 174,906 | | $ | 158,078 |
| | | | | | |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| | | | | | | | | | | | |
| | | Thirteen Weeks
Ended | | Twenty-six Weeks
Ended |
| | | July 1,
2006 | | July 2,
2005 | | July 1,
2006 | | July 2,
2005 |
Average number of tractors provided by owner-operators | | | | | | | | | | | | |
Truckload | | | 2,551 | | | 2,329 | | | 2,520 | | | 2,340 |
Intermodal | | | 626 | | | 321 | | | 609 | | | 313 |
| | | | |
Truckload Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.51 | | $ | 2.18 | | $ | 2.49 | | $ | 2.15 |
Average operating revenues per loaded mile, excluding fuel surcharges (1) | | $ | 2.17 | | | 2.01 | | $ | 2.18 | | $ | 1.99 |
Average operating revenues per load (1) | | $ | 961 | | $ | 861 | | $ | 952 | | $ | 835 |
Average operating revenues per load, excluding fuel surcharges (1) | | $ | 832 | | | 792 | | $ | 834 | | $ | 773 |
Average length of haul (1)(2) | | | 383 | | | 395 | | | 383 | | | 389 |
Number of loads (1) | | | 99,710 | | | 92,876 | | | 192,351 | | | 184,075 |
| | | | |
Brokerage Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.07 | | $ | 1.90 | | $ | 2.04 | | $ | 1.83 |
Average operating revenues per load (1) | | $ | 1,242 | | $ | 1,185 | | $ | 1,234 | | $ | 1,132 |
Average length of haul (1)(2) | | | 601 | | | 623 | | | 605 | | | 617 |
Number of loads (1) | | | 25,289 | | | 22,292 | | | 48,997 | | | 45,645 |
Intermodal Revenues: | | | | | | | | | | | | |
Drayage (in thousands) | | $ | 20,814 | | $ | 10,355 | | $ | 39,106 | | $ | 19,822 |
Depot (in thousands) | | $ | 1,989 | | $ | 1,410 | | $ | 4,143 | | $ | 2,659 |
| | | | | | | | | | | | |
Total (in thousands) | | $ | 22,803 | | $ | 11,765 | | $ | 43,249 | | $ | 22,481 |
| | | | | | | | | | | | |
Average operating revenues per loaded mile | | $ | 4.38 | | $ | 4.06 | | $ | 4.25 | | $ | 4.03 |
Average operating revenues per loaded mile, excluding fuel surcharges | | $ | 3.80 | | $ | 3.74 | | $ | 3.72 | | $ | 3.74 |
Average operating revenues per load | | $ | 265 | | $ | 269 | | $ | 267 | | $ | 270 |
Average operating revenues per load, excluding fuel surcharges | | $ | 231 | | $ | 248 | | $ | 233 | | $ | 250 |
Number of loads | | | 78,402 | | | 38,477 | | | 146,732 | | | 73,481 |
| (1) | Excludes operating data from CrossRoad Carriers, Inc. 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. |
| (2) | Average length of haul is computed using loaded miles. |
