Universal Logistics Reports Earnings Growth on Revenue Decline for Q4
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Universal Logistics Holdings’ earnings grew on a slight decline in revenue during the fourth quarter of 2022, the company reported Feb. 9.
The Warren, Mich.-based asset-light transportation and logistics company posted net income of $33.4 million, or $1.27 a diluted share, for the three months ending Dec. 31. That compared with $16.2 million, 60 cents, during the same time the previous year. The total revenue decreased 1.9% to $458.7 million from $467.4 million.
The results were mixed as Wall Street investment analysts had been looking for $1.31 per share and quarterly revenue of $461.2 million, according to Zacks Consensus Estimate.
For the year, Universal Logistics reported net income of $168.6 million, $6.37, on revenue of $2.02 billion, compared with a profit of $73.7 million, $2.74, on revenue of $1.75 billion in 2021.
“2022 was a year of record-setting financial performance for the company,” CEO Tim Phillips said in a statement. “And we closed out the year with yet another, reporting our best-ever fourth-quarter earnings in company history. In fact, for the full year 2022, Universal more than doubled its net income and reported top-line revenues in excess of $2 billion, a milestone we have worked so diligently to achieve.”
Phillips added that the company is navigating a much different transportation environment in the new year. He noted excess retail inventories, a slowdown in industrial production and loosening capacity have put downward pressures on the trucking, company-managed brokerage and intermodal segments.
“While we expect near-term headwinds in transportation, stability in our contract logistics segment, supported by strong North American auto production, will provide a solid foundation for the year to come,” Phillips said. “Universal remains a results-oriented organization, and I believe the diversification of our service offerings and the talented teams we have assembled keep us well-positioned for continued success.”
- Trucking revenue for Q4 decreased 12.3% to $89 million from $101.5 million during the 2021 period. Average operating revenue per load increased 24.1%, but load volumes declined 32.9% because of changes in underperforming operations. Income from operations increased 418% to $5.7 million compared with $1.1 million.
- Contract logistics revenue increased 27.9% to $205.5 million from $160.7 million in the prior-year period. The company grew dedicated transportation load volumes and managed 63 value-added programs. The segment includes value-added and dedicated services. Income from operations increased 393% to $30.1 million from $6.1 million.
- Intermodal revenue decreased 13.2% to $123.1 million from $141.7 million in 2021. Segment revenues include fuel costs and accessorial charges such as detention, demurrage and storage. Average operating revenue per load increased 15.1%, but load volumes decreased 25.7% year-over-year. Income from operations decreased 19.5% to $11.1 million from $13.8 million.
- Company-managed brokerage revenue decreased 36.2% to $39.6 million from $62 million for the same period last year. Average operating revenue per load and load volumes declined year-over-year, and income from operations decreased to $900,000 from $2.5 million.
Universal Logistics Holdings ranks No. 26 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 43 on the TT Top 100 list of the largest logistics companies.
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