On July 25, 2024, Universal Logistics Holdings Inc (ULH, Financial) released its 8-K filing reporting robust financial results for the second quarter of 2024. The company, an asset-light provider of customized transportation and logistics solutions across the United States, Mexico, Canada, and Colombia, demonstrated significant growth in both revenue and earnings, surpassing analyst estimates.
Financial Highlights
Universal Logistics Holdings Inc (ULH, Financial) reported second quarter 2024 operating revenues of $462.2 million, a 12.0% increase from the same period last year, exceeding the analyst estimate of $461.60 million. The company's earnings per share (EPS) for the quarter stood at $1.17, a 30.0% increase year-over-year, surpassing the analyst estimate of $1.14.
Segment Performance
Universal Logistics Holdings Inc (ULH, Financial) operates through four segments: Contract Logistics, Intermodal, Trucking, and Company-managed Brokerage. The Contract Logistics segment led the performance with a 26.2% increase in operating revenues to $263.6 million and a 20.1% operating margin. This segment's growth was driven by a recently awarded specialty development project contributing $44.6 million in revenues.
However, the Intermodal segment faced challenges, with operating revenues decreasing by 14.8% to $78.1 million and an operating loss of $(8.3) million. The Trucking segment saw a 12.6% increase in operating revenues to $91.4 million, supported by the specialized, heavy-haul wind business, while the Company-managed Brokerage segment experienced a 4.9% decline in operating revenues to $28.1 million.
Income Statement and Key Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Revenues | $462.2 million | $412.6 million |
| Operating Income | $47.1 million | $36.4 million |
| Net Income | $30.7 million | $23.6 million |
| Earnings Per Share | $1.17 | $0.90 |
Universal Logistics Holdings Inc (ULH, Financial) reported an EBITDA of $84.8 million for Q2 2024, a significant increase from $55.8 million in Q2 2023. The EBITDA margin improved to 18.4% from 13.5% in the previous year, indicating enhanced operational efficiency.
Balance Sheet and Cash Flow
As of June 29, 2024, Universal Logistics Holdings Inc (ULH, Financial) held cash and cash equivalents totaling $7.5 million and $11.6 million in marketable securities. The company's outstanding debt stood at $487.8 million, with capital expenditures amounting to $77.1 million for the quarter.
Dividend Declaration
The Board of Directors declared a quarterly cash dividend of $0.105 per share, payable on October 1, 2024, to shareholders of record as of September 2, 2024.
CEO Commentary
"Once again Universal delivered exceptional results in an otherwise turbulent transportation and logistics environment," stated Universal’s CEO Tim Phillips. "Our diverse service offering across the entire supply chain continues to differentiate our business and deliver stand-out results in the space. Contract logistics led the way delivering double-digit operating margins for the past ten consecutive quarters, and this segment continues to have a robust pipeline of new opportunities."
Conclusion
Universal Logistics Holdings Inc (ULH, Financial) has demonstrated strong financial performance in Q2 2024, surpassing analyst estimates and showcasing resilience amidst industry challenges. The company's strategic focus on diverse service offerings and operational efficiency has positioned it well for sustained growth. Investors and analysts are encouraged to review the detailed financial results and participate in the upcoming earnings conference call for further insights.
Explore the complete 8-K earnings release (here) from Universal Logistics Holdings Inc for further details.
