ULH - Earnings call transcript Q2 2022 | Universal Logistics Holdings, Inc.

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Operator

Hello, and welcome to Universal Logistics Holdings Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] 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. Statements that are forward-looking relate to Universal business, objectives or expectations and can be identified by the use of the words such as believe, expect, anticipate and project. to from uncertainties those subject could actual are materially differ expectations. statements risks and and results Such

As a Mr. you Mr. reminder, Financial of is Executive now Finance this Mr. may Officer conference is pleasure Officer; Relations. Fitzpatrick, introduce begin. being and to and Mr. your Vice Beres, Investor Phillips, host Jude Tim Steven Chief my Phillips, Chief recorded. President It you. Thank

Tim Phillips

Call. Holdings morning, and thank for Second Well, Quarter you, Logistics Earnings Chad. Good thank joining you Universal

into I extremely working level details, express see on gratitude get to we hard Before continuous exceptional our for the emphasis Universal my want of with the all pleased an of improvement. service I'm associates. to

team on-board tirelessly to has shape new leadership a worked environment. and Our talent results-oriented work

shareholder good overall staffing existing execution improvement With a and like. to remains economy, satisfaction around among supply challenge. and a continuous customer operating kept than chain success industry remains much remain port our new operations, stride. uncertainty so constraints shortages, draped and us drive Universal other – Part the our we While we've on congestion periodic appeal full focused had have environment and fluid less hitting ports from value. Still, our would

re-instituted the Now due labor the have set we California, of on take will law to ABX on in to challenges new a front.

a and in years make to for However, to fashion a ABX that marketplace. is to operators our nothing transition potential for in been now potential grow current and owner our us several have seamless evaluating new, impact we have of plan a allows the customers the the multifaceted smooth

we a to and know-how, make have things equipment the We successful on to trajectory we happen. are have be the

half still in do, space. these be XXXX. that leader heavy to a of some will second Universal the course set I’m While logistics transportation navigate optimistic for continue will prove to the is to there challenges and we lifting and

share per of revenue $XXX.X reported release and million. second of quarter the $X.XX quarter. Universal yesterday's In for total Now earnings operating

they second new highest company record margin Our performance earnings reflects ago. quarter, surpassed and all-time represent Universal's not quarter set a second once one in and just highs reported only record operating the again share performance set quarter history. We results for per

We on reshaping are -- these the quarter expectations have to consistent our first on successfully built and exceptions organization a basis. these meet

I While see group beyond. I well of expect grow to contract normalization to rates believe logistics future, the transportation in positioned our XXXX a in is and

part on rationalizing operations first level serve. that the the position together to a and plants Light worked the production. at worked logistics of Universal's color to contract to some the found some for labor disruption. in the lines. production. of continue the trucks. SAAR six on of our half and has of contract legs with non-automotive XXXX the truck light automotive was as extremely tracking of for operations for Class successfully remained customers customers for chase The serve continues In of have while Those indications Now X consistent day each Class evolve. to show service rationalizing solid obvious have here the major X their production segment, demand less it the that business, while logistics the and All Demand close a had auto forecast are for and stretch with operations group customer launched -- I'm of utility hard we of a our it strong we markets autos, parts for Detroit and level recently with reshape a with most continued piece contract, lower have than comfortable truck the year. our very even consistency back in at asset

is ramped three plan the first was shifts June production. of fact, In up of since to the month profitability operating

the contributor contract and margin in bottom improvements a to the expect While full and report I’m large line. be company's this stretches logistics will for successes. business to facility internal opportunities for we to our diversification continued on excited production, at We few look plant continuously look

appliance Southwest. recently successfully a began with a have goal and efficiencies award flow program aerospace their new We work customer an operational a enhancing in provider in large with of July of launched for the

in Our operation dedicated fully transportation servicing group recently launched a second the and large quarter customer. staffed hit the full stride automotive with

customer additional add existing the capacity with Additionally, group accounts. to continue various

up from very existing excited very ramped recently I'm launched that OEM, dedicated operations about forward, will We small new operation excited allow Mexico customers. major about award the future a in service transportation and Looking a recently to I'm us but prospects.

space. see to logistics in opportunity continue solid contract the We

of near-term pipeline several to in -- our growth will this grow. we in we continues on and fuel opportunity believe We space position front-runner remains value-added XXXX. that Universal's Our are the robust opportunities into are

have volumes favorable. chassis Our of remain continue and contractor continues Drayage congestion, Top experience pricing Intermodal haul volumes of length with declined in availability. line choppy revenue Group remain availability, to consistent flow. independent as because Year-over-year QX to

charges, continue totaled the of XXXX. quarter in and as We second assessorial storage million heightened such demurrage, $XX.X see to which per diem,

remain Assessorials and line in availability. strange with network congested chassis

of X,XXX. work buying to to continue current chassis We to on our add fleet

handle we XX.X% counts have capacity solid continue environment. a In remain as initiatives rates, rail recruit demand our port navigate a addition to major revenue focus led to year-over-year a and the congested to to and Load continued increase. improvement

count capacity. legacy been by and conversations In continued dedicated continue customer on I'm and sales is and believe and to load our trucks softening contractors market independent and noise in in their see as operation the from encouraged grow, coming the authority. truckload deployed for count and truckload to those division. into to independent great need our segment, chose the expand the continue Trucking contractor company-run driver of in individuals suggesting spot drivers months opportunity obtain going return a for who to you're our a I pipeline there have some pipeline intermodal our Our to own

leveraging and agent-based this spirit structured, more in segment entrepreneurial variable business are continue than agent our we see to We shine. the our of comfortable

held rates increased, a half elevated was point increase All declined, have XXXX. of load. While indications second was and to van XX.X% of remain spot per which or opportunities result favorable a in X.X%, a revenue have flatbed even specialized and

truckload profile well Our the on continue van remaining market positioned consistent contractual work. our to specialized within while is and opportunities, to flatbed capitalize on the

agent stable. As surely who uncertainty set pulling the second mentioned, The obtained of opportunities remaining and we return a capacity half own we in the and sector our has the see fleet XXXX. table independent for with of flatbed XX% the good will landscape our feel about flatbed, and contractors of wind economic their current And conversions small authority.

canvas to to development for our continued expand coverage have new group US agent better contiguous opportunities. We as business we gain

We to new future of opportunity. XX have of pleased the brought are in second quarter agents full very remains and pipeline on our

in with accelerated brokerage best operating margin the company. the the history margin continued end in revenue the part, experienced second operation opportunities, our first company the Our out into first the at We've the quarter. opportunities managed rationalize of the to profile of relation margin quarter

customer We per with utilization pleased in a down per our remain load continues have negotiations, on portfolio, increased remain to load, ILWU are the keeping number our work market. remain on logistics transportation was $X,XXX inventories. on the softening margin. sharp close our spot pricing We're although along many XX.X%, spot rail base hauled decelerated to eye contract in as inflation opportunities of XXXX. contractual facing loads rates. second diversify focused well revenue while the space of the and Coast the West uncertainties we to talks, market a and capacity expanding in with strong, eye Operating our customer a X.X% While half There keeping worker discipline as

growth to deliveries of labor labor challenge of supply is we availability with this have continues confident space fill and and unrest. to improving and/or replacement the market labor The needs. we are equipment our Our

high view to in as this our satisfaction. will we While which jobs, tensions are drive provide an model California, and customer excellent ultimately opportunity reshape

talent. will and by Universal's model improve refining rationalizing operating continue processes customers, to We leveraging

and of to the best Universal's of to Universal the Finally, the the company. drive our momentum the in and two margin call associated them company to extremely the XXXX. to I to for the the capitalizing appreciate turn Jude. collaborated I practices attributed Jude? team continue great best history of now success will in of service. but the like open of performance will of we on results ‘XX resilient second efforts of The customer as over associates. remains hardworking I'm change, thank a With deliver quarters additional optimistic said, isn't first just opportunities that and person, all team that one the to half find and a superior

Jude Beres

$X.XX on per $XXX.X operating of million compares the compared same on income quarter million everyone. morning to million consolidated Holdings during second million of million, operations net of operating one compares the income period $XX.X of income XXXX. $XX.X or last year. net to $XX.X Good from quarter, total was increased revenues Tim. to $XX.X Consolidated for earlier. $XX.X million. million reported year Universal Thanks, $X.XX million $XX.X $XXX dollars or EBITDA total Logistics This per share in million to $XX.X which revenues of the share,

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

of for XXXX. the of to of year, operating increased from the the from while of $XX.X value operating $XX.X versus X.X% operations $XXX.X managed last our to $XX.X revenues increased for in to million versus operating versus of $X.X million income to million our year. quarter from X% operating total X.X% for Operating $X.X Looking equivalents This $X.X to I'm last quarter quarter $XXX.X we in net last to $X.X XXXX. totaling last logistics $XX.X increased In quarter the last million in issuance debt the XX.X% of while quarter $X.X and operating million million. securities. cash margins quarter segment year. million period. the operating to year. from second operating $XX.X income our in to year, includes This to million costs income XX.X% marketable the same brokerage last year. at income the quarter XXXX. compares to million increased This the and $XX.X quarter compares same of our sorry, $X.X $XXX.X compared million were second in Operating income to segment, operating total million of our segment, Trucking cash $XXX.X compared end the $XX.X the X.X% X.X% balance for million This the second interest-bearing X.X% the the of our to XXXX. revenues. million of segment, performance million operations million million. million Outstanding In million second revenues versus million operations contract $X.X million. transportation for held quarter were quarter same And quarter in on our Operating -- $XXX.X add decreased of increased In income last XXXX. the company of year. million segment for which of operating and In were margins on compares sheet margins in totaled dedicated debt businesses, to of $X.X In the $XX.X $X.X margins $X increased million operations income Operating at million compares for $XXX.X quarter $XX.X were revenues X% of income second to million compared period revenue XX.X% Intermodal million quarter $XX.X million

bearing for lease expenditures interest X.XX net liabilities to XXX, to $XX.X ASC was $XX.X times. the debt our trailing million year-to-date. related EBITDA and Capital XX-month quarter reported million totaled Excluding

$XX we For $XX with the range the million XX% margins we environment expecting between $XXX for year, current the XX% Based in and and million expenditures between operating the top $XXX capital to be and on interest to million the are come quarter, million. are full line $XXX in revenues third expense operating range. in expecting million to

guidance margin our updating well. are we year as full the For

revenues operating in XX% margins come $X.X $X.X expect XX% with to to and well. billion We in operating total billion between range the as

of additional of in shares at acquired auction its mentioned stock shares release, and at share, and in XXX,XXX an the stock shares end $XX a purchases the through of per of Dutch shares. open share. market $XX.XXper Year-to-date XXX,XXX additional quarter modified common As purchase to the authorized average ULH common price an XXX,XXX remains in XXX,XXX has an Universal acquired its

quarterly Finally, Directors per Wednesday declared XX.X our Board Universal's cent share of regular dividend.

X, September to of record payable quarter's business and be XXXX paid of of This ready XXXX. close that, October to we at With are shareholders take some is the Chad, on is dividend on questions. to expected Xrd

Operator

you. Thank

Instructions] first begin from Bruce ahead. question session. will today Stifel. go And Please [Operator question-and-answer the Chan be now We will the from

Bruce Chan

nice another print everyone, Hi, for you here.

congratulations. So

Tim Phillips

Bruce. Thanks,

Bruce Chan

just a clarification to maybe Tim, start. of point

in about water this earlier the big talked others rationalized on same kind contract you year? underwater, was then that that one You any the loss that are logistics, site above still that the generating portfolio? of are was whole And back

Tim Phillips

done far job one, opened of our That's working to to comfortable feel we that additional even efficiencies and nuts that roll bolts some diligently been the of is our can forward To now. same with places that big there it's through get that We've continuous an additional it initiatives with in operating one more as rest there. one gain efficiently. where as for comfortable, yes, the look the question up operate customer continue to at it excellent improvement we to that and even well. go we feel Yeah. we the is comment. strength with layer have it's I is operating there -- it's and and the operation can well -- some referencing And We those now into -- portfolio, and to

Bruce Chan

know news. of been That's follow-up. their these maybe how maybe about down call macro it, business economic logistics a that of kind of I you in that good in what cycle felt business, into cycle? mentioned contract talk on confident generally few for And it sort but that great. have I And years think does Okay, just pretty you impact just can then unique terms normal or you a more, that performs earnings in XXXX, contemplates? comment past assumptions

Tim Phillips

Yeah.

the in like you months with worked at our I around that We're next insulated. what eight the what and look on we're think pricing. really operating looks the is contracts I at level we contract renegotiations last think, only SAAR economy I'm to look good what XX,XXX. very right hard like, exact pretty on an year, give over at I -- a overall, reviewing six really now but comfortable and can't

we space. this think position in I logistics well So very contract the

we variable that covering not environment variable I at a operate only to think we look our in think working from make want in comfortable in environment. helps And combination a with. still in a demand statements I a also going from we that I automotive, think comfortable of competency still I on continuous totally a we've really taken those sure improvement, we making that working us pent-up us not how rationale we're and contracts, XXXX. we're consumer think core some feel and lot fixed a that costs in of there's And and into our supports feel we on

Bruce Chan

can your you work might you gave That's great. affect there convert comment some that And have quarter? what And and of here that last on California protests stoppages volumes on how on impact maybe then question ABX, of thoughts you detail OR segment Any on to already. some then just a maybe strikes business? good these next also might some and start as

Tim Phillips

Yes.

down Oklahoma the shutdown shut a the Let's how and in the the did didn't the stoppage did to more get its is The order successful news. first start to with of first you with little port. anything to and or do ports. in in the part environment out the workflow harder of and much not a not It's LA whole access current protest there work complex. -- because

going be experience that, per couple did in behind canceled same So news but us shipments a as what that is week, to read result to of has to se there days you any a not everybody the of and a what puts thing. the

to will put push in what a operations into customers' and of up It stress do? So will those little it our quicker a to orders fashion. on backfill some the facilities

for at this, -- approach and to then, that. any to California. question we're it We've not So way ABX in the drivers trucks level, any wants not a assumptions. and long-term looking I'm high looked be the on OR looking going for company loss on company revenue Universal your I'm And at

there we'll bit percentage could not little be you we can't As that, the with going a costs, it associated of some I cost is fluidity to into our because the have call but going to I'm that, but by margins exact transition. maybe the environment, transition consistent of percent escalation serious. to will that too remain say bridge. we're couple There give elevated of a that's to a

Bruce Chan

congrats Okay. That's Thanks again. and helpful.

Tim Phillips

Bruce. Thanks,

Jude Beres

Bruce. Thanks,

Operator

the concludes Tim would remarks. to [Operator Instructions] turn I any to back question-and-answer like gentlemen, closing session. Ladies and conference over for this Phillips our

Tim Phillips

Thanks, our agents, at contractors our first off, Well, servicing our to doing independent again for such I thank all in job Chad. want customers. employees, operating superb a our

everybody Secondly, and everybody from the how and talking to a to in forward a listen being I'd think again perspective company next supports like Universal quarter. positive dialed we thank the call forward. that direction to look moving company a shareholder that as into pointed of you to we we Thank With to the you. said, course,

Operator

Thank for now you, Thank sir. attending conference presentation. The you concluded. has today's

disconnect. now may You

Universal Logistics (ULH) 29 Jul 222022 Q2 Earnings call transcript