UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 26, 2007
Universal Truckload Services, Inc.
(Exact name of registrant as specified in its charter)
| Michigan | 120510 | 38-3640097 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
12755 E. Nine Mile Road, Warren, Michigan
(Address of principal executive offices)
48089
(Zip Code)
(586) 920-0100
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On April 26, 2007, Universal Services Truckload, Inc. (the “Company”) issued a press release announcing the Company’s financial and operating results for thirteen weeks ended March 31, 2007, a copy of which is furnished as Exhibit 99.1 to this Form 8-K.
| Item 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
| (d) | Exhibits. |
| Exhibit No. |
Description | |
| 99.1 |
Press Release dated April 26, 2007 announcing the Company’s financial and operating results for the thirteen weeks ended March 31, 2007. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| UNIVERSAL TRUCKLOAD SERVICES, INC. | ||
| Date: April 27, 2007 | /s/ Robert E. Sigler | |
| Robert E. Sigler | ||
| Vice President, Chief Financial Officer, Secretary and Treasurer | ||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 |
Press Release dated April 26, 2007 announcing the Company’s financial and operating results for the thirteen weeks ended March 31, 2007. |
Exhibit 99.1
For further information:
Robert Sigler
Vice President and Chief Financial Officer
586.920.0100
Universal Truckload Services, Inc. Announces Financial Results for the First Quarter Ended March 31, 2007
Warren, MI – April 26, 2007 — Universal Truckload Services, Inc. (NASDAQ: UACL) announced today its financial results for the quarter ended March 31, 2007.
For the quarter ended March 31, 2007, operating revenues increased 8.9%, or $13.0 million, to $158.9 million from $145.9 million for the quarter ended April 1, 2006. Included in operating revenues are fuel surcharges of $13.8 million and $12.0 million for the first quarters of 2007 and 2006, respectively. Net income decreased 30.2%, or $1.4 million, to $3.2 million, or $0.20 per share for the first quarter of 2007, from $4.6 million, or $0.28 per share, for the first quarter of 2006. Operating margin was 3.2% for the first quarter of 2007 compared to 4.9% for the first quarter of 2006.
Universal’s truckload revenue in the first quarter of 2007 increased by 6.6% to $93.1 million from $87.3 million in the corresponding period of 2006. Included in truckload revenue in the first quarter of 2007 is $6.8 million from our acquisitions completed in the third quarter of 2006. Brokerage revenue in the first quarter of 2007 increased by 7.5% to $41.0 million from $38.1 million in the corresponding period of 2006. Included in brokerage revenue in the first quarter of 2007 is $1.5 million from our acquisition completed in the third quarter of 2006. Intermodal revenue in the first quarter of 2007 increased by 21.4% to $24.8 million from $20.4 million in the corresponding period of 2006. Included in intermodal revenue in the first quarter of 2007 is $2.9 million from our acquisitions completed through third quarter of 2006.
“The first quarter of 2007 proved to be very challenging for us,” stated Don Cochran, President and CEO of Universal Truckload Services, Inc. “A weak domestic freight market, along with pricing pressures due to excess truckload capacity, caused our organic operating revenues to remain flat compared to first quarter 2006. The lack of organic growth, coupled with a higher level of operating expenses, caused our earnings per share to slip compared to the first quarter of 2006. We continue to believe that our variable cost model and diverse service offerings keep us favorably positioned to navigate through these difficult economic times. As freight demand and capacity both find their new levels, we will continue to focus our efforts to find positive growth.”
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.
* * * * * * * * * * * * * * * *
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
| Quarter Ended | ||||||
| March 31, 2007 |
April 1, 2006 | |||||
| Operating revenues: |
||||||
| Truckload |
$ | 93,068 | $ | 87,319 | ||
| Brokerage |
40,989 | 38,120 | ||||
| Intermodal |
24,820 | 20,446 | ||||
| Total operating revenues |
158,877 | 145,885 | ||||
| Operating expenses: |
||||||
| Purchased transportation |
121,648 | 110,875 | ||||
| Commissions expense |
10,599 | 9,456 | ||||
| Other operating expense, net |
2,560 | 1,961 | ||||
| Selling, general, and administrative |
12,193 | 11,288 | ||||
| Insurance and claims |
4,872 | 3,847 | ||||
| Depreciation and amortization |
1,907 | 1,270 | ||||
| Total operating expenses |
153,779 | 138,697 | ||||
| Income from operations |
5,098 | 7,188 | ||||
| Interest income (expense), net |
194 | 250 | ||||
| Income before provision for income taxes |
5,292 | 7,438 | ||||
| Provision for income taxes |
2,108 | 2,876 | ||||
| Net income |
$ | 3,184 | $ | 4,562 | ||
| Earnings per common share: |
||||||
| Basic |
$ | 0.20 | $ | 0.28 | ||
| Diluted |
$ | 0.20 | $ | 0.28 | ||
| Average common shares outstanding: |
||||||
| Basic |
16,118 | 16,118 | ||||
| Diluted |
16,140 | 16,129 | ||||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| March 31, 2007 |
December 31, 2006 | |||||
| Assets |
||||||
| Cash and cash equivalents |
$ | 978 | $ | 5,008 | ||
| Marketable securities |
4,185 | 15,330 | ||||
| Accounts receivable - net |
87,774 | 82,259 | ||||
| Other current assets |
14,962 | 8,971 | ||||
| Total current assets |
107,899 | 111,568 | ||||
| Property and equipment - net |
58,880 | 51,286 | ||||
| Other long-term assets - net |
30,374 | 28,046 | ||||
| Total assets |
$ | 197,153 | $ | 190,900 | ||
| Liabilities and shareholders’ equity |
||||||
| Total current liabilities |
$ | 53,442 | $ | 49,717 | ||
| Total long-term liabilities |
6,058 | 6,730 | ||||
| Total liabilities |
59,500 | 56,447 | ||||
| Total shareholders’ equity |
137,653 | 134,453 | ||||
| Total liabilities and shareholders’ equity |
$ | 197,153 | $ | 190,900 | ||
UNIVERSAL TRUCKLOAD SERVICES, INC.
Summary of Operating Data
(Unaudited)
| Quarter Ended | ||||||
| March 31, 2007 |
April 1, 2006 | |||||
| Average number of tractors provided by owner-operators |
||||||
| Truckload |
2,964 | 2,488 | ||||
| Intermodal |
859 | 591 | ||||
| Truckload Revenues: |
||||||
| Average operating revenues per loaded mile (1) |
$ | 2.37 | $ | 2.46 | ||
| Average operating revenues per loaded mile, excluding fuel surcharges (1) |
$ | 2.09 | $ | 2.18 | ||
| Average operating revenues per load (1) |
$ | 940 | $ | 943 | ||
| Average operating revenues per load, excluding fuel surcharges (1) |
$ | 829 | $ | 836 | ||
| Average length of haul (1)(2) |
396 | 383 | ||||
| Number of loads (1) |
99,004 | 92,641 | ||||
| Brokerage Revenues: |
||||||
| Average operating revenues per loaded mile (1) |
$ | 1.97 | $ | 2.01 | ||
| Average operating revenues per load (1) |
$ | 1,237 | $ | 1,226 | ||
| Average length of haul (1)(2) |
629 | 609 | ||||
| Number of loads (1) |
26,501 | 23,708 | ||||
| Intermodal Revenues: |
||||||
| Drayage (in thousands) |
$ | 22,801 | $ | 18,292 | ||
| Depot (in thousands) |
$ | 2,019 | $ | 2,154 | ||
| Total (in thousands) |
$ | 24,820 | $ | 20,446 | ||
| Average operating revenues per loaded mile |
$ | 4.40 | $ | 4.10 | ||
| Average operating revenues per loaded mile, excluding fuel surcharges |
$ | 3.85 | $ | 3.63 | ||
| Average operating revenues per load |
$ | 272 | $ | 268 | ||
| Average operating revenues per load, excluding fuel surcharges |
$ | 238 | $ | 237 | ||
| Number of loads |
83,716 | 68,330 | ||||
| (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. |