Universal Logistics Holdings Inc (ULH) Reports Q3 2023 Financial Results
Universal Logistics Holdings Inc (NASDAQ:ULH) reported a 16.7% decrease in Q3 2023 operating revenues, amounting to $421.3 million.
Operating income for the same period decreased by 47.3% to $36.8 million.
Earnings per share also decreased by 52.2% to $0.88 per share.
The company declared a quarterly dividend of $0.105 per share.
Universal Logistics Holdings Inc (NASDAQ:ULH) released its Q3 2023 earnings report on October 26, 2023. The company reported a net income of $23.0 million, or $0.88 per basic and diluted share, on total operating revenues of $421.3 million. This is a significant decrease compared to the net income of $48.5 million, or $1.84 per basic and diluted share, during Q3 2022 on total operating revenues of $505.7 million.
Company Performance and Challenges
Universal's operating income decreased by $33.0 million to $36.8 million in Q3 2023, compared to $69.8 million in the same quarter the previous year. The operating margin for Q3 2023 was 8.7%, compared to 13.8% during the same period last year. EBITDA, a non-GAAP measure, decreased $27.6 million during Q3 2023 to $56.7 million, compared to $84.4 million one year earlier.
Although our individual operating segments experienced varied results, Universal as a whole delivered a solid financial performance for the third quarter of 2023, stated Universals CEO Tim Phillips.
Segment Information
The Contract Logistics segment reported a slight decrease in operating revenues by 0.7% to $208.1 million, with an operating margin of 16.9%. The Intermodal segment reported a significant decrease in operating revenues by 43.9% to $86.6 million, with an operating loss of $(4.3) million. The Trucking segment reported a slight decrease in operating revenues by 2.5% to $97.1 million, with an operating margin of 6.8%. The Company-managed Brokerage segment reported a decrease in operating revenues by 30.8% to $28.1 million, with an operating loss of $(1.1) million.
Dividend Declaration and Other Matters
The Board of Directors declared a cash dividend of $0.105 per share of common stock. The dividend is payable to shareholders of record at the close of business on December 4, 2023, and is expected to be paid on January 2, 2024. As of September 30, 2023, Universal held cash and cash equivalents totaling $16.8 million, and $10.5 million in marketable securities. Outstanding debt at the end of Q3 2023 was $392.0 million, and capital expenditures totaled $112.3 million.
Financial Tables Summary
Universal Logistics Holdings Inc (NASDAQ:ULH) provided detailed financial tables, including Unaudited Condensed Consolidated Statements of Income, Unaudited Condensed Consolidated Balance Sheets, and Unaudited Summary of Operating Data. These tables provide a comprehensive overview of the company's financial performance during the third quarter of 2023, including details on operating revenues, operating expenses, income from operations, net income, earnings per common share, and dividends declared per common share.
Conclusion
Despite the challenging freight environment and decreased volumes, Universal Logistics Holdings Inc (NASDAQ:ULH) remains committed to delivering long-term value to its customers and shareholders. The company's diversified service offerings continue to differentiate it in the market, and it is grateful for the thousands of Universal employees who get the job done.
Explore the complete 8-K earnings release (here) from Universal Logistics Holdings Inc for further details.
This article first appeared on GuruFocus.
