Exhibit 99.1
For further information:
Robert Sigler
Vice President and Chief Financial Officer
586.920.0100
Universal Truckload Services, Inc. Reports Revenue and Net Income for the Thirteen and Thirty-nine Weeks Ended September 29, 2007
Warren, MI – October 25, 2007 — Universal Truckload Services, Inc. (NASDAQ: UACL) announced today financial results for the thirteen and thirty-nine weeks ended September 29, 2007.
For the thirteen weeks ended September 29, 2007, operating revenues decreased 0.1%, or $0.1 million, to $171.8 million from $171.9 million for the thirteen weeks ended September 30, 2006. Included in operating revenues are fuel surcharges of $16.0 million and $17.8 million for the third quarters of 2007 and 2006, respectively. Net income decreased 11.0%, or $0.6 million, to $5.1 million, or $0.32 per diluted share for the third quarter of 2007, from $5.8 million, or $0.36 per diluted share, for the third quarter of 2006. Operating margin was 4.8% for the third quarter of 2007 compared to 5.3% for the third quarter of 2006.
Universal’s truckload revenue in the third quarter of 2007 increased by 2.1% to $101.6 million from $99.5 million in the corresponding period of 2006. Included in truckload revenue growth in the third quarter of 2007 is $2.1 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the third quarter of 2007 decreased by 8.5% to $42.8 million from $46.8 million in the corresponding period of 2006. Intermodal revenue in the third quarter of 2007 increased by 6.9% to $27.4 million from $25.6 million in the corresponding period of 2006. Included in intermodal revenue growth in the third quarter of 2007 is $0.7 million from our acquisitions completed in the third quarter of 2006.
For the thirty-nine weeks ended September 29, 2007, operating revenues increased 6.5%, or $31.0 million, to $508.8 million from $477.8 million for the thirty-nine weeks ended September 30, 2006. Included in operating revenues are fuel surcharges of $47.6 million and $45.4 million for the first three quarters of 2007 and 2006, respectively. Net income decreased 17.1%, or $2.7 million, to $13.0 million, or $0.81 per diluted share through the third quarter of 2007, from $15.7 million, or $0.97 per diluted share through the third quarter of 2006.
Universal’s truckload revenue in the first three quarters of 2007 increased by 6.9% to $302.1 million from $282.7 million in the corresponding period of 2006. Included in truckload revenue growth in the first three quarters of 2007 is $16.5 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the first three quarters of 2007 increased by 0.5% to $126.9 million from $126.2 million in the corresponding period of 2006. Included in brokerage revenue growth in the first three quarters of 2007 is $3.1 million from our acquisitions completed in the third quarter of 2006. Intermodal revenue in the first three quarters of 2007 increased by 16.0% to $79.9 million from $68.9 million in the corresponding period of 2006. Included in Intermodal revenue growth in the first three quarters of 2007 is $5.9 million from our acquisitions completed in the third quarter of 2006.
“While growth in the 3rd quarter proved difficult in a challenging freight environment, our asset light model continues to demonstrate its value” stated Universal’s President and CEO Don Cochran. “In this sluggish economy it’s important that we continue to watch costs while seeking growth opportunities through acquisitions and new agents.”
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 | | Thirty-nine Weeks Ended |
| | | September 29,
2007 | | September 30,
2006 | | September 29,
2007 | | September 30,
2006 |
Operating revenues: | | | | | | | | | | | | |
Truckload | | $ | 101,578 | | $ | 99,505 | | $ | 302,095 | | $ | 282,667 |
Brokerage | | | 42,783 | | | 46,758 | | | 126,851 | | | 126,238 |
Intermodal | | | 27,415 | | | 25,644 | | | 79,885 | | | 68,893 |
| | | | | | | | | | | | |
Total operating revenues | | | 171,776 | | | 171,907 | | | 508,831 | | | 477,798 |
| | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Purchased transportation | | | 130,886 | | | 132,443 | | | 388,659 | | | 366,225 |
Commissions expense | | | 11,353 | | | 10,834 | | | 33,428 | | | 30,229 |
Other operating expense, net | | | 2,248 | | | 2,122 | | | 7,611 | | | 6,552 |
Selling, general, and administrative | | | 11,881 | | | 11,610 | | | 36,355 | | | 33,825 |
Insurance and claims | | | 5,146 | | | 4,134 | | | 15,942 | | | 11,877 |
Depreciation and amortization | | | 2,027 | | | 1,611 | | | 5,965 | | | 4,253 |
| | | | | | | | | | | | |
Total operating expenses | | | 163,541 | | | 162,754 | | | 487,960 | | | 452,961 |
| | | | | | | | | | | | |
Income from operations | | | 8,235 | | | 9,153 | | | 20,871 | | | 24,837 |
Interest income, net | | | 191 | | | 248 | | | 522 | | | 800 |
| | | | | | | | | | | | |
Income before income taxes | | | 8,426 | | | 9,401 | | | 21,393 | | �� | 25,637 |
Provision for income taxes | | | 3,295 | | | 3,636 | | | 8,361 | | | 9,914 |
| | | | | | | | | | | | |
Net income | | $ | 5,131 | | $ | 5,765 | | $ | 13,032 | | $ | 15,723 |
| | | | | | | | | | | | |
Earnings per common share: | | | | | | | | | | | | |
Basic | | $ | 0.32 | | $ | 0.36 | | $ | 0.81 | | $ | 0.98 |
Diluted | | $ | 0.32 | | $ | 0.36 | | $ | 0.81 | | $ | 0.97 |
Average common shares outstanding: | | | | | | | | | | | | |
Basic | | | 16,118 | | | 16,118 | | | 16,118 | | | 16,118 |
Diluted | | | 16,118 | | | 16,182 | | | 16,118 | | | 16,168 |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | |
| | | September 29,
2007 | | December 31,
2006 |
Assets | | | | | | |
Cash and cash equivalents | | $ | 4,171 | | $ | 5,008 |
Marketable securities | | | 11,079 | | | 15,330 |
Accounts receivable—net | | | 87,772 | | | 82,259 |
Other current assets | | | 10,766 | | | 8,971 |
| | | | | | |
Total current assets | | | 113,788 | | | 111,568 |
Property and equipment—net | | | 58,263 | | | 51,286 |
Other long-term assets—net | | | 29,456 | | | 28,046 |
| | | | | | |
Total assets | | $ | 201,507 | | $ | 190,900 |
| | | | | | |
Liabilities and shareholders’ equity | | | | | | |
Total current liabilities | | $ | 47,238 | | $ | 49,717 |
Other long-term liabilities | | | 6,777 | | | 6,730 |
| | | | | | |
Total liabilities | | | 54,015 | | | 56,447 |
Total shareholders’ equity | | | 147,492 | | | 134,453 |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 201,507 | | $ | 190,900 |
| | | | | | |
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| | | | | | | | | | | | |
| | | Thirteen Weeks Ended | | Thirty-nine Weeks Ended |
| | | September 29,
2007 | | September 30,
2006 | | September 29,
2007 | | September 30,
2006 |
Average number of tractors provided by owner-operators | | | | | | | | | | | | |
Truckload | | | 2,907 | | | 2,878 | | | 2,959 | | | 2,639 |
Intermodal | | | 841 | | | 730 | | | 845 | | | 649 |
| | | | |
Truckload Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.51 | | $ | 2.59 | | $ | 2.43 | | $ | 2.52 |
Average operating revenues per loaded mile, excluding fuel surcharges (1) | | $ | 2.20 | | $ | 2.21 | | $ | 2.13 | | $ | 2.19 |
Average operating revenues per load (1) | | $ | 957 | | $ | 998 | | | 954 | | $ | 968 |
Average operating revenues per load, excluding fuel surcharges (1) | | $ | 840 | | $ | 853 | | $ | 834 | | $ | 841 |
Average length of haul (1)(2) | | | 382 | | | 386 | | | 392 | | | 384 |
Number of loads (1) | | | 106,149 | | | 99,683 | | | 316,743 | | | 292,034 |
| | | | |
Brokerage Revenues: | | | | | | | | | | | | |
Average operating revenues per loaded mile (1) | | $ | 2.09 | | $ | 2.14 | | $ | 2.03 | | $ | 2.08 |
Average operating revenues per load (1) | | $ | 1,341 | | $ | 1,316 | | $ | 1,284 | | $ | 1,264 |
Average length of haul (1)(2) | | | 642 | | | 614 | | | 634 | | | 608 |
Number of loads (1) | | | 27,502 | | | 28,361 | | | 81,513 | | | 77,358 |
| | | | |
Intermodal Revenues: | | | | | | | | | | | | |
Drayage (in thousands) | | $ | 25,200 | | $ | 23,752 | | $ | 73,257 | | $ | 62,858 |
Depot (in thousands) | | $ | 2,215 | | $ | 1,892 | | $ | 6,628 | | $ | 6,035 |
| | | | | | | | | | | | |
Total (in thousands) | | $ | 27,415 | | $ | 25,644 | | $ | 79,885 | | $ | 68,893 |
| | | | | | | | | | | | |
Average operating revenues per loaded mile | | $ | 4.69 | | $ | 4.14 | | $ | 4.54 | | $ | 4.21 |
Average operating revenues per loaded mile, excluding fuel surcharges | | $ | 4.02 | | $ | 3.55 | | $ | 3.93 | | $ | 3.65 |
Average operating revenues per load | | $ | 290 | | $ | 280 | | $ | 284 | | $ | 272 |
Average operating revenues per load, excluding fuel surcharges | | $ | 249 | | $ | 240 | | $ | 246 | | $ | 236 |
Number of loads | | | 86,824 | | | 84,749 | | | 257,685 | | | 231,481 |
| (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. |
