Exhibit 99.1
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 Quarter & Year Ended
December 31, 2006
Warren, MI – February 21, 2007 — Universal Truckload Services, Inc. (NASDAQ: UACL) today announced financial results for the quarter and year ended December 31, 2006.
For the quarter ended December 31, 2006, operating revenues increased 11.3%, or $16.6 million, to $163.8 million from $147.2 million for the quarter ended December 31, 2005. Included in operating revenues are fuel surcharges of $15.4 million and $14.2 million for the fourth quarters of 2006 and 2005, respectively. Net income increased 13.6%, or $0.6 million, to $5.3 million, or $0.33 per share for the fourth quarter of 2006, from $4.7 million, or $0.29 per share, for the fourth quarter of 2005. Diluted earnings per share in the fourth quarter of 2006 is computed based upon weighted average diluted shares outstanding of 16,142,049 compared to 16,117,500 shares in the fourth quarter of 2005.
Universal’s truckload revenue in the fourth quarter of 2006 decreased by 1.6% to $92.5 million from $94.0 million in the corresponding period of 2005. Included in truckload revenue in the fourth quarter of 2006 is $5.6 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the fourth quarter of 2006 increased by 20.7% to $44.3 million from $36.7 million in the corresponding period of 2005. Included in brokerage revenue in the fourth quarter of 2006 is $2.8 million from an acquisition completed in the third quarter of 2006. Intermodal revenue in the fourth quarter of 2006 increased by 63.2% to $27.0 million from $16.5 million in the corresponding period of 2005. Included in intermodal revenue in the fourth quarter of 2006 is $7.0 million from acquisitions completed in the first three quarters of 2006.
For the year ended December 31, 2006, operating revenues increased 20.8%, or $110.3 million, to $641.6 million from $531.3 million for the year ended December 31, 2005. Included in operating revenues are fuel surcharges of $60.8 million and $36.7 million for 2006 and 2005, respectively. Net income increased 22.4%, or $3.8 million, to $21.0 million, or $1.30 per share for 2006, from $17.2 million, or $1.12 per share for 2005. Diluted earnings per share in 2006 is computed based upon weighted average diluted shares outstanding of 16,159,321 compared to 15,371,780 shares in 2005.
Universal’s truckload revenue increased by 12.9% to $375.2 million in 2006 from $332.2 million in 2005. Brokerage revenue increased by 15.9% to $170.6 million in 2006 from $147.1 million in 2005. Intermodal revenue increased by 84.2% to $95.9 million in 2006 from $52.0 million in 2005.
“Universal Truckload Services had a very good year in 2006 and despite a soft freight market in the fourth quarter we managed to produce solid numbers,” states Universal’s President and CEO, Don Cochran. “Consolidated revenue for the year improved 20.8%, while net income increased by 22.4%. This performance can be credited to staying true to our business model and the hard work of our Owner Operators, Fleet Owners, Agent Associates and employees.”
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)
| | | | | | | | | | | | |
| | | Quarter Ended
December 31, | | Year Ended
December 31, |
| | | 2006 | | 2005 | | 2006 | | 2005 |
Operating revenues: | | | | | | | | | | | | |
Truckload | | $ | 92,527 | | $ | 93,994 | | $ | 375,194 | | $ | 332,178 |
Brokerage | | | 44,338 | | | 36,726 | | | 170,576 | | | 147,132 |
Intermodal | | | 26,964 | | | 16,521 | | | 95,857 | | | 52,029 |
| | | | | | | | | | | | |
Total operating revenues | | | 163,829 | | | 147,241 | | | 641,627 | | | 531,339 |
| | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Purchased transportation | | | 125,615 | | | 113,469 | | | 491,840 | | | 406,367 |
Commissions expense | | | 10,131 | | | 10,017 | | | 40,360 | | | 34,678 |
Other operating expense, net | | | 2,090 | | | 1,508 | | | 8,642 | | | 6,596 |
Selling, general, and administrative | | | 12,312 | | | 9,388 | | | 46,137 | | | 37,354 |
Insurance and claims | | | 3,951 | | | 4,122 | | | 15,828 | | | 14,334 |
Depreciation and amortization | | | 1,477 | | | 1,178 | | | 5,730 | | | 4,344 |
| | | | | | | | | | | | |
Total operating expenses | | | 155,576 | | | 139,682 | | | 608,537 | | | 503,673 |
| | | | | | | | | | | | |
Income from operations | | | 8,253 | | | 7,559 | | | 33,090 | | | 27,666 |
Interest income (expense), net | | | 243 | | | 242 | | | 1,043 | | | 425 |
| | | | | | | | | | | | |
Income before income taxes | | | 8,496 | | | 7,801 | | | 34,133 | | | 28,091 |
Provision for income taxes | | | 3,210 | | | 3,147 | | | 13,124 | | | 10,924 |
| | | | | | | | | | | | |
Net income | | $ | 5,286 | | $ | 4,654 | | $ | 21,009 | | $ | 17,167 |
| | | | | | | | | | | | |
Earnings per common share: | | | | | | | | | | | | |
Basic | | $ | 0.33 | | $ | 0.29 | | $ | 1.30 | | $ | 1.12 |
Diluted | | $ | 0.33 | | $ | 0.29 | | $ | 1.30 | | $ | 1.12 |
Average common shares outstanding: | | | | | | | | | | | | |
Basic | | | 16,118 | | | 16,118 | | | 16,118 | | | 15,372 |
Diluted | | | 16,142 | | | 16,118 | | | 16,159 | | | 15,372 |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | |
| | | December 31, |
| | | 2006 | | 2005 |
Assets | | | | | | |
Cash and cash equivalents | | $ | 5,008 | | $ | 5,342 |
Marketable securities | | | 15,330 | | | 19,456 |
Accounts receivable – net | | | 82,259 | | | 72,032 |
Other current assets | | | 8,971 | | | 11,109 |
| | | | | | |
Total current assets | | | 111,568 | | | 107,939 |
Property and equipment – net | | | 51,286 | | | 34,800 |
Other long-term assets – net | | | 28,046 | | | 15,339 |
| | | | | | |
Total assets | | $ | 190,900 | | $ | 158,078 |
| | | | | | |
| | |
Liabilities and shareholders’ equity | | | | | | |
Total current liabilities | | $ | 50,105 | | $ | 41,134 |
Total long-term liabilities | | | 6,342 | | | 3,772 |
| | | | | | |
Total liabilities | | | 56,447 | | | 44,906 |
Total shareholders’ equity | | | 134,453 | | | 113,172 |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 190,900 | | $ | 158,078 |
| | | | | | |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| | | | | | | | | | | | |
| | | Quarter Ended
December 31, | | Year Ended
December 31, |
| | | 2006 | | 2005 | | 2006 | | 2005 |
Average number of tractors provided by owner-operators | | | | | | | | | | | | |
Truckload | | | 2,975 | | | 2,424 | | | 2,723 | | | 2,375 |
Intermodal | | | 830 | | | 516 | | | 694 | | | 379 |
| | | | |
Truckload Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.40 | | $ | 2.63 | | $ | 2.49 | | $ | 2.32 |
Average operating revenues per loaded mile, excluding fuel surcharges (1) | | $ | 2.09 | | $ | 2.29 | | $ | 2.16 | | $ | 2.10 |
Average operating revenues per load (1) | | $ | 968 | | $ | 1,017 | | $ | 968 | | $ | 908 |
Average operating revenues per load, excluding fuel surcharges (1) | | $ | 842 | | $ | 886 | | $ | 841 | | $ | 821 |
Average length of haul (1)(2) | | | 404 | | | 387 | | | 389 | | | 392 |
Number of loads (1) | | | 95,593 | | | 92,394 | | | 387,627 | | | 365,441 |
| | | | |
Brokerage Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.03 | | $ | 2.15 | | $ | 2.07 | | $ | 1.94 |
Average operating revenues per load (1) | | $ | 1,277 | | $ | 1,333 | | $ | 1,267 | | $ | 1,206 |
Average length of haul (1)(2) | | | 628 | | | 619 | | | 613 | | | 622 |
Number of loads (1) | | | 27,320 | | | 20,544 | | | 104,678 | | | 88,235 |
| | | | |
Intermodal Revenues: | | | | | | | | | | | | |
Drayage (in thousands) | | $ | 24,873 | | $ | 15,188 | | $ | 87,731 | | $ | 46,695 |
Depot (in thousands) | | $ | 2,091 | | $ | 1,333 | | $ | 8,126 | | $ | 5,334 |
| | | | | | | | | | | | |
Total (in thousands) | | $ | 26,964 | | $ | 16,521 | | $ | 95,857 | | $ | 52,029 |
| | | | | | | | | | | | |
Average operating revenues per loaded mile | | $ | 4.04 | | $ | 4.41 | | $ | 4.16 | | $ | 4.17 |
Average operating revenues per loaded mile, excluding fuel surcharges | | $ | 3.50 | | $ | 3.81 | | $ | 3.61 | | $ | 3.76 |
Average operating revenues per load | | $ | 286 | | $ | 284 | | $ | 276 | | $ | 274 |
Average operating revenues per load, excluding fuel surcharges | | $ | 248 | | $ | 246 | | $ | 239 | | $ | 247 |
Number of loads | | | 86,858 | | | 53,458 | | | 318,339 | | | 170,382 |
| (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. |
