ULH - Earnings call transcript Q1 2020 | Universal Logistics Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello. And welcome to the Universal Logistics Holdings’ First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

During the course of this call, management may make forward-looking statements based on their best view of the business as seen today. and related identified business the uncertainties by as "expect," forward-looking and or words and are are "belief," be statements differ can the "anticipate" those actual that results to risks materially objectives Universal’s expectations such subject could Statements to Such from and expectations. "project." use of

a this conference reminder, is As being recorded.

Vice to Jude President Tim Phillips, Mr. Officer; Mr. Beres, It Relations. Financial Mr. Steve Finance is Chief of host, Fitzpatrick, now and Investor introduce your my and Chief pleasure Officer; Executive

you. begin. Thank Mr. Phillips, you may

Tim Phillips

Logistics you. first Thank Thank morning. you Good XXXX for joining call. Universal Holdings earnings quarter

the year We if online event off We this how a you we and different the plans need under started for operating created environment the incurred year, a drastically accept plan can quarter. first to adjustment. exited expectations high

were amazing an the we to pass challenge employees its into COVID-XX We and of associates, in pandemic. message condition founded looking the

resilience I changed Over associates operating the drastically weeks, company six environment. it as last to put of to and the our adjust quote true them

environment. and like moving First drivers of in our as call who extremely the answer the the an tough sacrifices I'd to and critical recognize kept off, contractors phase

the Our and line personnel remained warehouse cause the so have worker on and good. supporting committed and there find to right flow dock front the

extremely to I'm scenes, the line. customers value-added our in solution of a our the supporting Universal delivering front team. Behind office associates level personnel at continued the perform high our on entire to proud

in one on ability respond key contractor, outbreak. want customers, an United on Columbia, Canada a provide COVID-XX and of crisis into the tied overview to and communication we the our With this employee, realize and early to in quarter, details to vendors. are our be first would we moving of make the operation Mexico, the with I States, demanding located Before the to where mention length that

Disease customer evaluate trends people the of needs the with of leadership a safety, changing communication latest to I'm and safe provide the Control, local well information welfare, landscape. to some senior and react in of in World our with information by find best keep our latest We Health Organization, government providing Center only volume people as the practices guidelines to constant targeted are at quickly update the work them to as communities. real-time not up-to-date local but ensure state

quarter. to to rapidly to progresses. continue practices workforce began March best social the protection, prime production environment end The been. follow American personal clean at came We change for procedures from North that's system shock work and The overall biggest and the first Xth the distancing, of truck how auto with

the of implied quickly over to our workforce the buying. Representing leadership balance XX% reacted revenues, with

addition local shelter began the place continue that to expanded auto with limited operations pensions and order state issuing is In government there truck of set production, the a and of businesses.

are of fill volumes. and event personnel direct the March to the but preserve These larger in really the approximately the depending a began XX% model. the up We quarter late in typical process served We to on made further of positions business necessary fall administrative decision on by. integrity XX% impact business

steps Accelerate essential of our while list adjusted we capital reduction our and expenses all taking expenditure evaluated cost containment operating strategy, necessary deployment preserve our to liquidity.

when back to we normal. the are are continue raise like to return managing ensured the will We for business actively and situation success

$X.XX a to new losses record noncash quarter. some per which quarter for the operating high per highlights provide afternoon, now first remarkable first $XXX.X quarter turning million released charge topline first Yesterday portfolio. revenues. from to revenues. like share $X.XX its on A holding results would the And reporting I financial Universal included securities share to

of proud Universal results the climate rapidly into coronavirus business action March, and at maturing unfolded. of we I'm with late feel the event pleased team all pandemic to cap way as the the the jumped experienced Even quarter

allowing effect the a and New While headwind shutdown, end Year is normally on our auto in the of weeks and last change Which is just production well. XXXX month came the second outbreak. as due definitely aside truck at of early factories as the standing Chinese with work. XX souring longer when others in coronavirus and to half in instigate at stood own

U.S. rebounded never in imports, contracted quarter virus. the to Turning first of also demand the as the because in

also our quarter. to truck first in the some we experience time fractures that of Southern California Although work year was on the rate continued XX% much down operation, for

COVID-XX truck and shutdown on the the for of first effects any revenue highest the of have quarter record. been inclusive normalized Universals the and operate, Excluding auto would results quarter

revenue Our estimate, $X.X lower our million. amounts Southern on and topline in income COVID by losses operating million related to $X.X our operations estimates California in revenue

on and The impact reduce the to million. these by better acquire from and income million that $X.X share. $X.XX of was topline $X.X manufacturing effect We believe revenues auto truck did per shutdown EPS by cumulative operating

some accounted of increase XXXX. XX.X% for XXXX. decline quarter to was GAAP was service truckload Truckload compared period by Now, decrease was new. with which of revenue compared the each an The X.X% a Open to load for million same on with $XX.X color to the driven roughly topline which of finished the driver. X/Xrd the metric in primarily

get goods moving Brokerage inside could tail in consumer different local to progresses both On that. in quarter. a and a to over exiting vastly fueling beverage operating to quarter services but environment off the entering mitigate operating sharp and drop regional by the relate and was networks decline. now food, And the

number driven was coupled margins at small up quarter. very growth $XX.X flat million, with environment the the very show of beginning a Although rate aggressive revenue tail The XX.X%. was low

shop and Our beverage in weeks company change are and involved food last ratings in experienced drastic March. of heavily a it broker few the

began beverages lower industry transportation to of this as saw to the of food, experience towards an pandemic our stock year loosening gross quarter capacity a brokerage and Stock this outline our the rate. end and consumer and in for the truckload based food becomes margin we increase along

now consistent. million condition increased revenue year Legacy class services Offsetting a and was with XXXX. $XXX.X from Intermodal similar operation. our a was with attributed the California of momentum Southern for million. XX% homes count in to Load boon to biggest well $XX.X other performed relatively drag made load acquisitions on are XX.X% revenue or

this market, In drop towards heavily we experienced custom our significant in load weighted resale. count with a in in

most pleased forward intermodal rose with are looking integration of rate very services acquisition with intermodal year. quarter from by recent sector, the are the We our completing in the acquisition to the this integrations end we second

intermodal with combining the team with entity, and employee, happy extremely various contractors team's drivers. I'm

throughout employees again with realized the and restructure with and acquisition. We are extremely fast time counts

services and million. dedicated XX.X% revenue down was Our $XX.X

XXXX. Load closing, weeks load planned for the our similarly additional shop last severe American auto March. due was on owners North the slightly count few in up to quarter effect revenue the quarter of compared same a $XXX,XXX in In to

march. moves on of our XX.X% to a increased ongoing more our only January at compared truck handled and quarter the comparison, late X.X%. fleet February By down plant due dedicated XXXX to Auto Value same shutdown XXXX. revenue the the during in at $XX.X million effect $X.X shut to added and revenue negative up million. end in But period services

worked track value first piece service is quarter. at shut of we've followed XX% consumer added having hard end plants began XX%. Universals in group down auto on line the cylinders with by with to the a and is retail in launched Our and all record the still was on certified quarter before running tracks and large grid

it. robust about a Universal pipeline and Industrial a a aerospace continues to from trucks next support just first comprising heavy expecting booking X%. to second and XX% winter and well quarter

of the partnership is are in those some in COVID-XX and we'll got XXXX the on time of in the the that effect realize impact when second we half customer implementing XXXX. to While effect we have expected of those of confident

this and a add group this thus color, other year, added to $XX million in endpoints group grew To our $XX value million transportation services little went year. dedicated part our

very are fact XXXX. new got that in XX about the by first We the a our weeks also we XX agent to optimistic XX and

about still future we Our stand bullish the the combined will $XXX challenging now, long-term very and our the what bring seem future, in of times business. pipeline opportunity, outlook remains were million excited to

the we to respond adjust of these approximately insight a last To with thorough for the then to are provide down April. revenues XX% continued review To proportionately. undertook compared we we've April, and on seeing declines what went month expense of have operating our

We also to to either evaluated are able we this later capital expenditures our next. of number and make purchases or year a

acquisition a pay. for is will the by the cost our We also of related that quarter. the look large identify response for side one way Fore of Understanding continue end to to benefit direct second realize integration personnel our of cost completing savings

time are month off including executive second doing we're take the And the board a pay management having we both that month throughout quarter. team, across each

and effect and to family. United over I through safely, appreciation it Jude, to and local Whether the States. restrictions Universal turning gratitude entire to wanted Before government my stage operating dedication Jude? the of across to reiterate shutdown variety and a effectively

Jude Beres

of of revenues first Holdings up quarter net in of morning, first or $XXX.X $X.XX per revenues This $XXX.X million net per million of on consolidated income Thanks, total the XXXX. income $X.XX $XX.X Tim. Good the and Universal the everyone. operating $XX.X operating in or Logistics XXXX. share compares reported quarter total share million million of

million, first one operating income XXXX. $XX.X a was million quarter to compared million which in the from quarter $X.X $X.X to decreased income earlier. million Consolidated first million operations of year $XX.X $XX.X decreased to million the compares $XX.X XXXX of in EBITDA of

total a margin the XX.X% XXXX for of of and XXXX. operating XX.X% of quarter X% These revenues. respectively Our to quarter first margin compared are metrics the in and and first EBITDA X.X% operating

Intermodal two a the of financial automotive losses of by loss reevaluation finally results during XX% California, impacted production pre-taxes were and the related negatively in to loads mark-to-market the last a of securities in portfolio. Southern our quarter reduction weeks Universal's

share. charge for or operating events by by loss estimated to for million or we quarter Below Combined, up $X.X million topline our impacted the $X.X million these accounted per $X.XX per and the line, $XX.X have on $X.XX income pretax share. have securities the revenues

Universal's On share by a by $X.XX. a earnings these pro and per basis factors forma XXX of basis, the reduce margin combination points operating

at $XXX last the XXXX, quarter $XXX.X businesses, performance our freight rose our transportation X.X% the to year. in operating Looking to for quarter of intermodal includes first and same segment revenues brokerage compared quarter the which in million million for our truckload segment

million a quarter our of is While $XXX $XX.X operations of heavy we on to income million truck $XXX,XXX serviced first value-added decreased from total to segment dedicated revenues. million logistics from of decreased to and business, $XX.X in where services our a our $XX.X A XXXX. income including million million transportation In $X.X class operations comprises which the market operating

cash have $XXX.X cost $X and cash $XX.X on first XXXX. totaled revenue operating million of income marketable million bearing our of Outstanding of million up sheet, total million at of to debt the million net operating quarter $X.X issuance period. of security. $XXX.X we debt the totaling the On of and equivalents debt, interest Compared million $X end balance in outstanding

At the we of under first facility. credit our existing revolving quarter, end $XX.X the million have available

ASC debts X.XX net are the Excluding quarter interest $XX.X expenditures to Capital lease XXX liabilities bearing for EBITDA times. CCM was million. related reported totaled

the For are year, $XX we expenditures of expecting $XX and to $XX million range remainder million the the $XX million. in expense between million and capital to interest be

to events, dividend As earlier measures to comments. cutting addition these in in during his temporarily quarterly our cost mentioned other discussed further decided release, the preserve we've liquidity in to Tim our suspend unprecedented

on and future so clarity goal trucking well Our to term volumes. was there cash is short and production as more preserve the import automotive in as

policy As dividend out yield of our year pay Universal's a the each allows the company X% of the with to up on stock. dividend income XX% target to reminder, net

allocation the $XXX an of capital is long-term out dividend part paid inception over important of policy. dividend in Universal quarterly since strategy this our had The as million

of for review the our half We expect in to reinstating dividend the year. back considerations the

we're Amy, take to ready questions. some that, With

Operator

[Operator comes first of from today Wetherbee the question Chris Instructions] Your of Citi. line

is Your line open.

Chris Wetherbee

great. Good Thanks, Tim. guys. Yes, morning,

Tim Phillips

Chris. morning, Good

Chris Wetherbee

guess, was the as some you helpful revenue I within April the guys to it of as for vertical on concentrations as well. well get update the

currently to exposure end have sort that that amount down. are a you market decent customer of Given shut of

maybe June of quarter? about April that kind move give event. a the think maybe can to type cadence in might to us you of as of that give we does the sense you of XQ, how is and sense give for restart, sort color of a happen it of Any XX throughout negative be May us Can what sort a

Tim Phillips

Well Chris, is with get of equities can you this say is talking, many from Tim. you, And ton uncertainty. there I the a customers of in done day-to-day. can our well

government the uncertainty play the of suffered their on some whole a in based the there's think lot mind world I on of this just pandemic.

conversations what of in what late can an it word the here. auto the hopeful kick in space, what we to had that things hopeful I try start if where We're gets say see But the our to use down never start finally approved relisting back actually and mission some we the road, can that on up bill, is you redone May.

thing that for. hopeful But we're

the well as California hiring with is some sort to conversations think we into the Southern of go of placed intermodal in know I the as heavily can't mentioned Southern some not, we retail retail space the what you retail closing side, of on it count. of had we've California, downfalls and many to

And the live, me. to we we and of up because a our in season can sure been of be freights buying stream are there States. But this we've what going we little orders. we're do make bit place into do how the states what Excuse in to contrary to unsure flowing the are going shelter say United a so

That of uncertainty through you beverage been phase to great a that it flavor such also is purchased of have one the is and there. us with do some good bought food is relatively we work to there's on some going be then, them, consumer continues give -- stayed to that and projected. deal and we And recently seems the

there? You

Chris Wetherbee

the within. background here, I'm is

Tim Phillips

just our Yes. It's been dead, of something, the one not lines line.

they consumer backing lines. off but the real QX it's my is we're that then little and we'll the projections finish on We to What of try correct the not bit are side a on that should seeing One drastic. regional quick. comment

to XX% forecast that, less anywhere customer in and to their or X% be And a than beverage type our even Food's to from we're of little going within maybe still us. they're and seeing goods still XX%. stay less X% to consumer regional been to X% than X%

short-term One deck a got come up that lot some a steel is that to areas things until our and expect has of metal some haven’t industrial be know the of And hit. we of other running. big open clarity hit like taken a and pretty but we stuff we trailing

Operator

from Stifel. line And Chan of your next question comes Bruce with the

open. Your line is

Bruce Chan

gentlemen. wins if million value-added morning, echo thanks Yes But question. And apologies to dedicated the were missed and the $XX good and had for some $XX about my I line or interference. this million and you Tim, respectively. talking

understand that far the And those effect how to of what is wins the are want of bankable a end just type. better, maybe situation as and from And little those current is bit market and much on as customer where numbers. then coming also,

Tim Phillips

projects up you. tone coming that are in and there to out are on of expect The start back initial those the thank of the interference. Yeah, wins end and The push automotive autos the some we markets the launches caller based dial again. sector those just from when to going be uncertainty

in the we're year the optimistic pushed What conversation, in and later be very is still they're into we launches We XXXX. constant of that place. some and these take half think realize second and we revenues going several would back the through probably to will months. But expect that experience will that of

figure And I out isn't industrial can are within seems rules out state all work. things lot because course of and and we're every one, say we what of straits trying when because safely to go a if week of like individual it back get place our that should pushed the it to because shelter around and communication

Bruce Chan

those about late given on in March of going and color. weeks additions a trended How great the have on what's first sense. the year. follow-up April. been then now And agent makes That in maybe into your comments that's the Okay, just few

maybe decelerating, a expectations Are trends more low than are your as at accelerating and system so bigger a flying joining of network they looks onto bigger for those attractive the future? in kind those are what

Tim Phillips

are in their we've and how rising I here companies streamline phenomenon. made guess want other opportunities that of Yes processes. to early quarter some couple by yes. they a There seen because of different second unique of the decisions are

in we here interest very to The they we that level really thing make their that that Our good ones as group. high they is getting, remains have transitions there's from have of feel base pipeline only of that board the chance we holding them customer want that's a there and bullish back that. sure a on agent is make with

of, that in pretty do it. with of measuring with they customers ready it. kind We'll business their a transitioning quick they out make in just time. as become So to are we haven't their they're they feet, drudged to make and roll of comfortable for can And sure comfortable amount kind this it

look end I'm quarter the a in optimistic. very of back if So, traction. good our have at still still I the pipeline, We

I done face-to-face those is your a lot the So, don't types. see thing remotely The only phone. changed on really conversations that now atmosphere. A with decelerating that's of and

and So, with you good making headway. still lose pretty some a good little we're that

Bruce Chan

Okay, last then maybe one here. that's just one helpful. And

you fleet seeing both of numbers some then what's with retention some as and then are what that capacity sort going the On on retention? are far doing And as and what you protect side, outside. capacity pool those Universal to within of maybe of the and

Tim Phillips

business that environment. would capacity both contractors from of a be normal being it that the the different of less look things things of we is down, here. end, in Yes, being utilized at can amount on or and transportation We active couple are a know caught side drivers with drivers a than

is contractors minimal. the April last numbers the the specifically them other busy eight day. the and little been drivers we've last at stretch actually very or numbers we've a loss at In of bit. the weeks has turnover though over the and looked large even our I We a of tried had of group workout to it funny looked know thing keep to

percentage. I to say want its XXX

So, constant are basically prior and were meter contractors to and the right now staying our we'll those in as start active back and ramp things to loop we're communication in they with and contractors slowdown. that put up drivers and back And them. into things the drivers

Bruce Chan

it appreciate Well, the always. I'll over, I turn Great. time as

Tim Phillips

Thanks Bruce, thank you.

Operator

again, have there. we interfering And open Mr. have did we Wetherbee line some

I'll question. he continue can Wetherbee, join with Mr. So, so

Tim Phillips

Perfect.

Chris Wetherbee

can Hey, you thanks guys, Great. me? hear

Tim Phillips

can. we Yes,

Steve Fitzpatrick

We can.

Chris Wetherbee

going for must line been letting there. something back the with have There thanks me Great, in. on

of But the sort about in that. question was sorry be my on to of So, guess of variability. I follow-up flipside terms going revenue

When the Can of a labor. sort you talk of you side? side, this you the direct in cost about bit downside little variable think mentioned How the we given positioning how of think about sort the as the business much are truly some of decline the of cost sort about you're model on revenue. costs

Jude Beres

it's Chris, Jude. Hey

we high on line our $XXX the and revenue million. mean, on QX the the I at at delta when could automotive, end look be based low So, at the end top a $XXX of at ramp-up million

about the middle of companies So, we delta a they've to have couple schedules production over restart in and to automotive if $XX when past that of weeks. based the the can on laid million May us commit out the

costs, of of it's at total between nature revenues, mean XX% service When is you anywhere the business our so a across our material our those I of cost structure. amount look a variable is most of variable cost of XX% lines, those the to of the

we in the don't to fixed is pay cost have our still that competitors reason and the space. down do we're we're bills, the just our many paying able debt, Which of why still

continue independent and the and around we do to of get this in business these continued model, So, businesses to benefit of the M&A reason strategy related why once we'll that's our our businesses that out contractor rut. we've invest

Chris Wetherbee

Yes, okay.

come sort there. of potential beyond understand trying you kind the And of obviously, we picture the when I super of sort of maybe was dream that out guess guess terms and in this helpful. to opportunities I some and bigger this, we there. think your the quarter think that's the first highlighted strong, dynamics performance upside about to of excluding about start positioning of Now, quite when

then shape think maybe the approaching that. pipeline how and 'XX, get maybe is at of kind they has yourself of are recovery. to as more you had the opportunities the I guess quickly kind run about of maybe sort you convert before where a you with do you revenues least think around could where rate this the business those. basis can of a And question of But, been scenario on in new

leverage pieces So, lot sense in of a of that expansion. to but to sort of question there's some a you're there show operating beginning want get because in clearly margin that

how business ramping sense to business want you're the new and business up of Just get wins. back pipeline maybe thinking about existing a of

Jude Beres

then pipeline start the answer I'll questions the Tim and can and Yes, conversion. on the

business of margins. over So and be as have saying the years, Chris, should our X% I mean the currently past volumes mean operating believe we that I operating that have pre-COVID-XX, been couple we business between we X% the

And we that. believe

leverage As launches X% you had that kind in the and making we've headwinds, the business properties the past, to we had On additional all our we're believe strategy. and on rate to gain a X% well where with real-estate continue some legal basis a the run investments we we've know with that as drama long-term But scale stuff. today. basis, and gain of M&A as as is stands

in And for have expand business dedicated our then that to them that as take add get long-term, our weighting those our lines our we there. margins grow upon margin target were the to with a the we grow, the firmly long-term we and margin. start X% But, service are scale. intermodal, us going to of Universal XX% that ranges within to believe We particularly XX%. already, value get get can It'll they we operating as focusing while because those we lines as is

pipeline. the on discussion for Tim to over it turn I'll And

Tim Phillips

Yes, thank you.

perspective, remains customer still a I've feels like robust. from mentioned pipeline Our

has responded pipeline But we the everything contact weeks. have a has on last darker little and sides them communication bit the all the with in that over business been Our well. four of

chance other we strongly win pipeline on the in As there's add that we're points to activity in that price right just pretty pretty we that spoke to things execute a can some now sure matter that feel what had large And at. the number. the logistic a we truly on on it. the we we It's side, of are in about that the have comes onset that

trucking and side the more so the at we hard agent pipeline good. be redirecting mentioned look we'll and things local services some it, the perspective, beverage to a the regional we're of really of in food, and on taking From of that a more new our bringing a local consumers at

out heavily taking we're some swings additional at out at actively build there to type that So, looking that of freight continue to network.

So, we're that pretty on pipeline. optimistic positive and

And back. side, the the pipeline of tell is just to they for customers is come intermodal can't then going stuff when on us can't the sure bold, this some

working have trade. pretty pipeline things international the what going cadence just to the to We be substantial see waiting is some in of

sooner take of area where later. that's see automotive. kind on of our another you heavily And right hard the then customer, around we'll hopefully, some dedicated then involved or that pretty now that at. we'll customer And a lives base And can our look were

not we're that book, looking customers to also we conversions do in after. only go And can current our in that of at but some transition,

we healthy. it of of now. out drag pipeline's confident would that year that we a as later long be to half result in how from unsure we're pretty in continuing second this results that the right stretch But, the we're of the our legs We're come COVID in the So, pipeline. of as takes

Chris Wetherbee

guys. time. the Thanks, appreciate really that's helpful. Okay, I

Jude Beres

Thanks, Chris.

Operator

Markets. next Loop Instructions] question Jeff line comes the from Capital Kauffman Your of [Operator of

open. Your line is

Jeff Kauffman

Good Thank morning, much. everyone. very you,

Tim Phillips

Jeff. morning, Good

Jude Beres

Good morning.

Jeff Kauffman

and correct. and spent back sure your CapEx I make go is to assuming not to on $XX in some we're year year-to-date you'd million? gross want million $XX range? you just say Did I'm million I to million about $XX of commentary net interpreted to of to $XX was be total $XX something going that million and So, the this going the rest

Tim Phillips

But in Yes. the being $XX $XX Probably ballpark. to more in it'll range. end million yes, you're million the up

Jeff Kauffman

Okay, decision I has dividend your again, got guidance And yield. been to and about your a you. the always goal the is X% that postpone

worry and not about used if we spend that you reinstating right pay am income? think goal what X% to a we're net XX% reconsider to to is can to the So, it I yield up of that we about going

Jude Beres

Yes.

want tried just is have what out and So, so we that dividend, right? that ourselves dividend And in. of a we the the situation to to find that per dividends grow grew share to once that to $XX.XX job we steady we we'll we with quarterly now do continue get

happened had It's zero. and We just value of month in to going million to business of what million from a month on March abrupt make our $XX week the of Universal going the and the to add third a nature course from dedicated some difficult business that to zero $XX volumes our just very position.

addition particular future. And prudent have people us related course, in the just do the and to Tim, to to conversations with myself, the in Board, uncertainty conjunction with number was in that with of the felt it for of that we laid off

the on to policy we'll little we was comments, strategy. once that huge part future. number of it's our shareholders allocation have part of capital what years I million Like mean mentioned ago of $XXX do, a the clarity a a continue I since we've returned policy my huge more dividend is we But and a the implemented a in

Jeff Kauffman

on your rid requirement. based for a yield stock So, I the have million is, language. or guess abolishing of by not for a time, million range savings $X $X the would you're yield question an understanding away to my own that Why dividend since about talking in and it investors getting driving my unknown we're of basically period the

a the at dividend reduce we yield think our to not Why flows signal X% are and least that send okay. the we're cash fine and

Jude Beres

just that we did. the what decision that think feel I very Jeff, mean, we I with Yes was comfortable,

integrity sure mentioned Tim and we launches can we earlier make that our for the fund comments. that today, business in we have to business expenditures balance the of capital wins preserve fund have that We we the that can his the sheet can that the

bills, a But chasing there's it you of that away problems that someone decision And about a be on our worrying than your was we can't pushed there a strategy. than are that's yield. as yes, some if made And can pay may capital you result investors that. bigger have lot allocation

just and where it the half And the look we'll year are reality make the said, at today. It's of decision of in we the time. like that back I at

Jeff Kauffman

Okay, I I the market understand was Can you securities the given for adjustment talk that on the and a marketable mark-to-market substantially. And understand, thank down little bit you. about going to June. change we say pack in as didn't a on based the the market, today of the adjustment is upward potential end mark-to-market quarter, let's are just have where to markets

yes? want I –- just to

Jude Beres

Jeff. Absolutely,

much cause normally drama doesn't this the in as QX. it portfolio So, did

heavily Our portfolio banks pay weighted towards companies dividends. and oil is that

And as our that of against expense of interest kind we and little cash. bit generate a a so, mitigation used

you think zero. And of barrel. war obviously margin their result, time, as net the a interest QX in what and was about to one Russia happened rates taxed of course, going Saudi between And So, to course, interest Arabia negative. a or the zero price basically pushed at that's going with banks, the XX negative with oil

some a We've already on portfolio It's those experienced QX. real gains back just in in of impact detrimental had that QX.

up should finished hopefully is So QX gains on about that even in will least that which that million at expect until we crawl And is yes, slowly thing year seen yesterday. with. we've expectation yes, the what we our based back $X.X some to

Jeff Kauffman

When And $XX thought I does giving just sound million that we million, $XX expense, thought interest guidance right? to question with then your the rest had. line of and I a Okay. hear you you because heard interference were couldn't say on that I you one detailed question

Jude Beres

million $XX the So, its $XX believe to I commentary. million in

Jeff Kauffman

correct? For the not year rest of full-year,

Jude Beres

full year. That's

Jeff Kauffman

Okay year, alright. full

got and to become you've you're generally in acquisition there last in, looking a is conserving So, company an picture opportunities distressed I given And we're have of couple of lot mode this not unusual cash. over been weeks. a at only environment that be you're the the

you're off Given what doing assume point? this doing cash decisions to given with with you're fair conservation, strategic the is the it at dividend, table flow what are

Jude Beres

and returning down all. capital No. it laid evaluating of at shareholders. mean, No, acquisition a number mentioned our we've to say I not I a what is company. mean, we've This we're times I opportunities is Jude. as that out think paying debt, focus would I

changing We're over opportunities. is no the the we fly is right acquisition difficult not looking is There's management like phone always is strategy that's way mentioned to pipeline that that for company. or email. Tim or The just Universal strategy, what visit someplace. at the thing the everything believe via with

fruition, So, more we're if have to of if there I able to and up be get comes think back any deal to information. people and to any these if later when open it'll things talk just

that so do As they well when have of are don't many working home, the all things them, necessarily they're their of probably job. at aware people there's to access they from you guys

at the our to looking isn't and policy half look change. year. the M&A that. in if at going still to we'll of right, course, We're it So, opportunity do is And of we'll the continue back

Jeff Kauffman

Its you results the thank good difficult terrific Well, very answers. for in you. Alright. a luck. Thank environment and

Jude Beres

you. Thank

Tim Phillips

Thank you.

Operator

in [Operator I call Instructions]. And the at questions remarks. this no time, any further to presenters are for there turn closing queue. back the

Tim Phillips

that interference for again any apologize had. we Once the Yes, of thank you.

second the some at There's I we're of the questions, clarity things answered looking the think sums right ability. you this indication but now to up in best hopefully we what gave of our the a lot no quarter.

dialing-in and everybody to you soon. Appreciate Thank you. we'll talk

Operator

conference does you And call. and participation. this Thank gentlemen, today's for conclude ladies your

You may disconnect. now

Universal Logistics (ULH) 1 May 202020 Q1 Earnings call transcript