Universal Logistics Holdings Reports 1.3% Revenue Growth, 16% Increase in Income from Operations for Q3 2024

Universal Logistics Holdings, Inc. reported a solid performance for the thirteen and thirty-nine weeks ended September 28, 2024, with total operating revenues reaching $426.8 million and $1.38 billion, respectively. This marks a slight increase of 1.3% for the quarter and an 8.6% increase year-to-date compared to the same periods in 2023. The growth in revenue was primarily driven by the Contract Logistics segment, which saw revenues rise to $245.2 million for the quarter, up 17.8% from the previous year.

The company’s profitability also improved significantly, with income from operations for the quarter increasing to $42.6 million, a 16.0% rise from $36.8 million in Q3 2023. For the thirty-nine weeks, income from operations surged 48.0% to $164.8 million. Net income for the quarter was $26.5 million, up 15.2% from $23.0 million in the prior year, while year-to-date net income reached $109.7 million, a 53.5% increase from $71.5 million in 2023. Basic and diluted earnings per share for the quarter were both $1.01, compared to $0.88 in the same period last year.

Despite these positive results, the company faced challenges, including pre-tax losses of $8.6 million from the closure of brokerage operations in Nashville, TN, and goodwill impairment charges totaling $3.5 million. Additionally, the company incurred increased depreciation expenses due to revised equipment estimates, amounting to $11.3 million.

On the strategic front, Universal Logistics made significant acquisitions, including the purchase of East Texas Heavy Haul, Inc. for $10 million and the acquisition of Parsec, LLC and related entities for $193.6 million, aimed at enhancing its contract logistics segment. These acquisitions were financed through existing credit facilities, which saw total debt rise to $557.4 million as of September 28, 2024, up from $381.9 million at the end of 2023.

The company’s total current assets increased to $405.7 million, and total assets rose to $1.55 billion, reflecting a robust financial position. However, net cash provided by operating activities decreased to $52.6 million, down from $161.2 million in the previous year, primarily due to increased capital expenditures totaling $210.8 million.

Overall, Universal Logistics Holdings, Inc. demonstrated strong revenue growth and profitability improvements, despite facing operational challenges and increased debt levels.