Universal Truckload Services Inc. (UACL) filed Quarterly Report for the period ended 2009-09-26.
Universal Truckload is a primarily non-asset based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. Their over-the-road trucking services include both flatbed and dry van operations and they provide rail-truck and steamship-truck intermodal support services. They also offer truck brokerage services which allow them to supplement their capacity and provide their customers with transportation of freight not handled by their owner-operators. Universal Truckload Services Inc. has a market cap of $255.7 million; its shares were traded at around $16 with a P/E ratio of 35.6 and P/S ratio of 0.3.
Highlight of Business Operations:
Operating revenues. Operating revenues for the thirty-nine weeks ended September 26, 2009 decreased by $219.1 million, or 37.6%, to $363.4 million from $582.5 million for the thirty-nine weeks ended September 27, 2008. The decrease in operating revenues is primarily attributable to a decrease in the number of loads in our truckload, brokerage and intermodal operations attributable to the current economic recession, a decrease in fuel surcharges, and a decrease in operating revenues per loaded mile. The number of loads from our combined truckload, brokerage, and intermodal operations was 480,000 for the thirty-nine weeks ended September 26, 2009 compared to 649,000 for the thirty-nine weeks ended September 27, 2008. Included in operating revenues are fuel surcharges of $24.8 million for the thirty-nine weeks ended September 26, 2009 compared to $81.1 million for the thirty-nine weeks ended September 27, 2008. For the thirty-nine weeks ended September 26, 2009, our operating revenue per loaded mile, excluding fuel surcharges, from our combined truckload and brokerage operations decreased to $2.04 from $2.37 for the thirty-nine weeks ended September 27, 2008. These decreases in our operating revenues were partially offset by increases in revenue attributable to acquisitions made since the first half of 2008. Included in operating revenues is approximately $8.2 million attributable to these acquisitions, consisting of $6.3 million in truckload operations, $1.1 million in brokerage operations, and $0.8 million in intermodal operations. Excluding the effects of acquisitions made since the first half of 2008, revenue from our truckload operations decreased by $121.0 million, or 35.6%, to $219.3 million for the thirty-nine weeks ended September 26, 2009 from $340.3 million for the thirty-nine weeks ended September 27, 2008. Excluding the effects of acquisitions made since the first half of 2008, revenue from our brokerage operations decreased by $73.4 million, or 47.6%, to $80.7 million for the thirty-nine weeks ended September 26, 2009 compared to $154.1 million for the thirty-nine weeks ended September 27, 2008. Excluding the effects of acquisitions made since the first half of 2008, revenue from our intermodal support services decreased by $33.0 million, or 37.4%, to $55.1 million for the thirty-nine weeks ended September 26, 2009 from $88.1 million for the thirty-nine weeks ended September 27, 2008.
Selling, general and administrative. Selling, general and administrative expense for the thirty-nine weeks ended September 26, 2009 decreased by $5.4 million, or 13.9%, to $33.4 million from $38.8 million for the thirty-nine weeks ended September 27, 2008. As a percentage of operating revenues, selling, general and administrative expense increased to 9.2% for the thirty-nine weeks ended September 26, 2009 compared to 6.7% for thirty-nine weeks ended September 27, 2008. The absolute decrease in selling, general and administrative expense was primarily the result of a $4.0 million decrease in compensation expense due to reductions in employee headcounts and several cost savings measures that include company wide pay decreases and the implementation of unpaid time-off in the second quarter of 2009. Other cost saving initiatives resulted in decreases in travel and entertainment expenditures of $625 thousand, a decrease in legal and professional fees and other selling, general, and administrative costs of $1.1 million, and decreases in building rents and office supplies of $725 thousand. These decreases were partially offset by an increase in our allowance for doubtful accounts and uncollectible agent loans of $815 thousand.
Operating revenues. Operating revenues for the thirteen weeks ended September 26, 2009 decreased by $84.5 million, or 39.7%, to $128.5 million from $213.0 million for the thirteen weeks ended September 27, 2008. The decrease in operating revenues is primarily attributable to a decrease in the number of loads in our truckload, brokerage and intermodal operations attributable to the current economic recession, a decrease in fuel surcharges, and a decrease in operating revenues per loaded mile. The number of loads from our combined truckload, brokerage, and intermodal operations was 166,000 for the thirteen weeks ended September 26, 2009 compared to 214,000 for the thirteen weeks ended September 27, 2008. Included in operating revenues are fuel surcharges of $9.5 million for the thirteen weeks ended September 26, 2009 compared to $32.2 million for the thirteen weeks ended September 27, 2008. For the thirteen weeks ended September 26, 2009, our operating revenue per loaded mile, excluding fuel surcharges, from our combined truckload and brokerage operations decreased to $2.01 from $2.52 for the thirteen weeks ended September 27, 2008. These decreases in our operating revenues were partially offset by increases in revenue attributable to our acquisitions made in the third quarter of 2009. Included in operating revenues is approximately $4.1 million attributable to these acquisitions, consisting of $3.6 million in truckload operations and $0.5 million in brokerage operations. Excluding the effects of the acquisitions made in the third quarter of 2009, revenue from our truckload operations decreased by $43.8 million, or 35.9%, to $78.2 million for the thirteen weeks ended September 26, 2009 from $122.0 million for the thirteen weeks ended September 27, 2008. Excluding the effects of the acquisitions made in the third quarter of 2009, revenue from our brokerage operations decreased by $32.7 million, or 54.4%, to $27.5 million for the for the thirteen weeks ended September 26, 2009 compared to $60.2 million for the thirteen weeks ended September 27, 2008.
Insurance and claims. Insurance and claims expense for the thirteen weeks ended September 26, 2009 decreased by $1.3 million, or 25.1%, to $4.1 million from $5.4 million for the thirteen weeks ended September 27, 2008. As a percentage of operating revenues, insurance and claims increased to 3.2% for the thirteen weeks ended September 26, 2009 from 2.6% for the thirteen weeks ended September 27, 2008. The absolute decrease is the result of a $1.9 million decrease in auto liability insurance premiums and claims expense for the thirteen weeks ended September 26, 2009 compared to the thirteen weeks ended September 27, 2008. This decrease was partially offset by a $0.6 million increase in other contractor insurance, cargo and safety costs.
At September 26, 2009, we had cash and cash equivalents of $1.3 million compared to $28.8 million at December 31, 2008. The decrease in cash and cash equivalents of $27.5 million for the thirty-nine weeks ended September 26, 2009 resulted from $28.6 million in cash used in investing activities and an additional $16.4 million used in financing activities, which was offset by $17.5 million in cash generated from operations.
The $17.5 million in cash provided by operations was primarily attributed to $3.1 million of net income adjusted for $7.7 million of non-cash charges for depreciation and amortization, $1.3 million of other-than-temporary impairment charges on marketable securities classified as available–for-sale, $1.6 million of non-cash charges for bad debt expense, and a decrease in the working capital position of the Company of $3.8 million. The decrease in the working capital position is primarily the result of a decrease in accounts receivable due to decreased revenue. The Company also increased its cash provided by operating activities due to a change in payment terms with
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