Universal Logistics Holdings Q4 net income $9.0 million
Staff Writer |
Universal Logistics Holdings reported fourth quarter 2018 net income of $9.0 million, or $0.32 per basic and diluted share, on record-high operating revenues of $386.4 million.
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Universal has reported eight consecutive quarters of revenue growth.
Included in the results was a $7.0 million pre-tax charge, or approximately $0.19 per share, for the settlement of a previously disclosed legal matter.
Fourth quarter 2018 results also include $1.6 million of pre-tax holding losses, or $0.04 per share, on marketable securities due to changes in fair value recognized in income.
These results compare to fourth quarter 2017 net income of $24.4 million, or $0.86 per basic and diluted share, on total operating revenue of $314.0 million.
Fourth quarter 2017 net income included $18.1 million, or $0.64 per basic and diluted share, of tax benefit from the impact of the Tax Cuts and Jobs Act enacted on December 22, 2017.
Consolidated net income for the full year 2018 was $52.2 million, or $1.84 per basic and diluted share, on total operating revenue of $1.46 billion.
Both operating revenues and earnings per share for the full year 2018 were the highest ever reported in Universal's history.
Included in the full year results were $9.0 million of pre-tax charges, or approximately $0.24 per share, for the settlement of a previously disclosed legal matter.
This compares to net income of $28.2 million, or $0.99 per basic and diluted share, and $1.22 billion of total operating revenues in 2017.
Operating revenues from truckload services in the fourth quarter 2018 increased $1.9 million, or 2.6% to $73.8 million, compared to $71.9 million for the same period last year.
Included in truckload revenues during the period were $8.1 million of separately identified fuel surcharges, compared to $7.6 million in the same period last year.
Universal's average revenue per mile, excluding fuel charges, increased 15.4% during the period, while the number of loads hauled decreased 11.3% during the same period.
During the fourth quarter of 2018, Universal moved 66,821 loads, compared to 75,309 loads during the same period last year.
Revenues from brokerage services in the fourth quarter 2018 increased $15.9 million, or 19.3% to $98.1 million, compared to $82.2 million one year earlier.
The growth is primarily due to an increase in the number of brokerage loads moved.
During the fourth quarter of 2018, Universal brokered 53,467 loads, compared to 45,896 loads during the same period last year.
Intermodal services revenues increased $43.9 million to $83.9 million in the fourth quarter of 2018, up from $40.0 million one year earlier.
Intermodal revenues for the recently completed quarter included $37.2 million of revenues attributable to Fore Transportation, Southern Counties Express, Specialized Rail Service, and Container Connection, each of which Universal acquired in 2018.
Fuel surcharges included in intermodal revenues in the fourth quarter 2018 totaled $11.1 million compared to $4.5 million during the same period last year.
During the fourth quarter 2018, Universal moved 143,845 intermodal loads, compared to 88,208 loads one year earlier, an increase of 63.1%, while also increasing its average operating revenue per load, excluding fuel surcharges, by 26.6%.
Fourth quarter 2018 operating revenues from dedicated services increased 50.7% to $33.3 million compared to $22.1 million one year earlier.
Dedicated services revenues included $4.7 million of separately identified fuel surcharges, compared to $3.2 million during the same period last year.
The increase was primarily attributable to increases in both shuttle moves and in the number of over-the-road loads hauled.
Overall, revenues from value-added services decreased slightly during the fourth quarter 2018 to $97.3 million.
This compares to $97.8 million from value-added services one year earlier.
Operations supporting passenger vehicle programs declined during the period, while those supporting heavy-truck production continued to record strong growth.
Value-added operations supporting heavy-truck grew $4.0 million, or 18.2% on a year-over-year basis.
Consolidated income from operations for the fourth quarter 2018 increased $4.8 million, or 36.6% to $17.9 million.
Included in fourth quarter 2018 results was a $7.0 million charge for the settlement of a previously disclosed legal matter attributed to Universal's logistics segment.
Universal's transportation and logistics segments both outperformed the same period last year.
During the fourth quarter 2018, income from operations in Universal's transportation segment, which is primarily comprised of truckload, brokerage and intermodal services operations, increased to $19.4 million compared to $7.3 million during the same period last year, and income (loss) from operations in Universal's logistics segment, which includes value-added and dedicated services, decreased to $(1.8) million compared to $4.2 million during the same period last year.
However, the operating loss for the logistics segment during the fourth quarter of 2018 includes the $7.0 million of pre-tax charge for the settlement of pending litigation. ■