Universal Truckload Services, Inc. Reports 2013 Financial Results

WARREN, Mich., Feb. 20, 2014

In the fourth quarter of 2013, demand for value-added services grew 9.5% to $48.2 million compared to the same period last year.  For the year, value-added services increased 11.5% over 2012.  However, fourth quarter operating income from our logistics segment was dampened by phasing out an aerospace operation due to reductions in military spending, by additional scheduled holiday downtime by selected automotive customers compared to one year earlier, by the late-year launch of a new automotive operation, and due to an industrial customer's in-sourcing of a value-added services operation.

Demand for flat bed and heavy haul transportation stabilized in recent quarters.  Operating revenues from transportation services totaled $179.8 million for the fourth quarter of 2013, compared to $180.2 million for the fourth quarter of 2012, which had included above-normal, high margin business in connection with specialized wind energy shipments and to support recovery operations on the Eastern Seaboard following Hurricane Sandy.

Revenues from intermodal services declined 9.7% in the fourth quarter of 2013, to $31.6 million, compared to $35.0 million one year earlier.  Revenues for all of 2013 increased 9.2% to $131.4 million.  However, the fourth quarter 2013 comparison to the prior year was challenging due to strong demand for intermodal services in late 2012 from an affiliated LTL carrier.

Based on reported net income, earnings per basic and diluted shares were $0.38 for the fourth quarter of 2013, and $1.68 per basic and diluted shares for the full year.  Income from operations increased 40.5% to $19.1 million or 7.4% of operating revenues for the fourth quarter of 2013, compared to $13.6 million or 5.3% of operating revenues for the fourth quarter of 2012.  Our income before the provision for income taxes reflects $0.7 million in transaction and other costs related to our acquisition of Westport Axle Corporation on December 19, 2013.  In 2012, we incurred $8.4 million in similar costs related to our acquisition of LINC Logistics Company on October 1, 2012.  Excluding costs related to these actions, our income from operations decreased 9.7% to $19.9 million or 7.7% of operating revenues for the fourth quarter of 2013, compared to $22.0 million or 8.5% of operating revenues during the fourth quarter of 2012.

Universal's Chief Executive Officer, Scott Wolfe commented, "Our largest customers performed well throughout 2013, and Universal's overall financial performance reflects their confidence in us.  However, a harsh winter presents challenges and disruptions to the trucking industry, generally, and to the supply chain operations of our key customers.  Our outlook for the next few quarters is decidedly mixed, and we are cautious about prospects for near-term growth.  We will continue to invest in our enterprise sales organization, taking advantage of customer opportunities as they arise."

We calculate and report selected financial metrics in connection with lending arrangements, or to isolate and exclude the impact of non-operating expenses related to our corporate development activities.  These statistics are described in more detail below in the section captioned "Non-GAAP Financial Measures."