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Universal Logistics Holdings experienced higher earnings and revenue during a historic first quarter, the company reported May 5.
The Warren, Mich.-based asset-light transportation and logistics company posted a profit of $42 million, or $1.56 a diluted share, for the three months ending March 31. That compares with $21.7 million, 80 cents, year-over-year.
Total revenue for Q1 was $523.9 million compared with $415.2 million for the 2021 period.
“The first quarter of 2022 set a series of new all-time highs,” Universal CEO Tim Phillips said. “During the first 13 weeks of the year, Universal experienced its highest operating revenues, largest operating income and best earnings per share, not just for a first quarter, but in all of Universal’s history.”
Phillips added the quarterly gains were the result of ongoing efforts to evaluate operating cost structures, negotiate rate increases with customers and address underperforming business across the service lines.
“I also remain mindful of the challenges facing our industry today,” Phillips said. “We continue to see supply chain disruptions, a competitive market for equipment and talent, as well as some more recent intermittent shutdowns of our customers’ operations as they are seeking to secure parts to build cars and trucks.”
Phillips believes it is the job of his company to navigate these challenges while continuing to deliver service and results. He is confident that Universal will find additional execution improvement opportunities as the year unfolds.
“I am extremely pleased with the talented group of people we have assembled at Universal,” Phillips said. “I am confident we will continue to exceed the goals we have set for the year, which includes $2 billion in top-line revenue.”
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• Contract logistics revenue for Q1 increased 30.1% to $201.6 million from $154.9 million for the same period last year. Income from operations increased 39.9% to $23.5 million from $16.8 million last year. The segment was managing 63 value-added programs from 60 last year. Dedicated transportation load volumes grew by 1.2%. New business wins and repricing of existing customer contracts were significant contributing factors to the overall growth in dedicated transportation.
• Intermodal revenue rose 52% to $157.6 million from $103.7 million. Income from operations increased 170% to $23 million from $8.5 million. The average operating revenue per load increased 51.2%. But load volumes fell 14.3% year-over-year. The segment revenue also included accessorial charges such as detention, demurrage and storage.
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• Trucking revenue gained 2.7% to $97.5 million from $94.9 million in the 2021 period. That included $42 million of brokerage services and $7.5 million in separately identified fuel surcharges. Average operating revenue per load increased 41.4% year-over-year. But load volumes fell 30.1% as the company rationalized some underperforming operations.
• Company-managed brokerage revenue increased 6.7% to $65.2 million from $61.1 million last year. Income from operations increased to $3.9 million from $400,000. Load volumes decreased 25.2%, but average operating revenue per load increased 25.3% on a year-over-year basis.
Universal Logistics Holdings ranks No. 29 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.