Universal Truckload reports 1Q net income down 30%

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Universal Truckload Services announced Thursday, April 26, its financial results for the quarter ended March 31. Operating revenues increased 8.9 percent, or $13.0 million, to $158.9 million from $145.9 million for the quarter ended April 1, 2006. Included in operating revenues are fuel surcharges of $13.8 million and $12.0 million for the first quarters of 2007 and 2006, respectively. Net income decreased 30.2 percent, or $1.4 million, to $3.2 million, from $4.6 million for the first quarter of 2006. Operating margin was 3.2 percent for the first quarter of 2007 compared to 4.9 percent for the first quarter of 2006.

The company also said:

  • Truckload revenue in the first quarter of 2007 increased by 6.6 percent to $93.1 million from $87.3 million in the corresponding period of 2006. Included in truckload revenue in the first quarter of 2007 is $6.8 million from acquisitions completed in the third quarter of 2006;
  • Brokerage revenue in the first quarter of 2007 increased by 7.5 percent to $41.0 million from $38.1 million in the corresponding period of 2006. Included in brokerage revenue in the first quarter of 2007 is $1.5 million from the acquisition completed in the third quarter of 2006; and
  • Intermodal revenue in the first quarter of 2007 increased by 21.4 percent to $24.8 million from $20.4 million in the corresponding period of 2006. Included in intermodal revenue in the first quarter of 2007 is $2.9 million from acquisitions completed through third quarter of 2006.
  • “The first quarter of 2007 proved to be very challenging for us,” said Don Cochran, president and chief executive officer of Warren, Mich.-based Universal Truckload Services. “A weak domestic freight market, along with pricing pressures due to excess truckload capacity, caused our organic operating revenues to remain flat compared to first-quarter 2006. The lack of organic growth, coupled with a higher level of operating expenses, caused our earnings per share to slip compared to the first quarter of 2006. We continue to believe that our variable cost model and diverse service offerings keep us favorably positioned to navigate through these difficult economic times. As freight demand and capacity both find their new levels, we will continue to focus our efforts to find positive growth.”

    Universal Truckload Services is primarily a nonasset-based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The company’s trucking services include both flatbed and dry van operations, and the company also provides rail-truck and steamship-truck intermodal support services. The company also offers truck brokerage services.