Universal Truckload reports 2Q revenue up, income down

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Universal Truckload Services on Thursday, July 26, announced financial results for the 13 and 26 weeks ended June 30.

For the 13 weeks ended June 30, 2007, operating revenues increased 11.4 percent, or $18.2 million, to $178.2 million from $160.0 million for the 13 weeks ended July 1. Included in operating revenues are fuel surcharges of $17.8 million and $15.6 million for the second quarters of 2007 and 2006, respectively. Net income decreased 12.6 percent, or $0.7 million, to $4.7 million for the second quarter of 2007, from $5.4 million for the second quarter of 2006. Included in operating expenses for the 13 weeks ended June 30 was a $0.7 million charge to settle certain accident claims in the second quarter of 2007. Net of related income taxes, this charge reduced second-quarter 2007 net income by $0.4 million. Operating margin was 4.2 percent for the second quarter of 2007 compared to 5.3 percent for the second quarter of 2006.

Universal’s truckload revenue in the second quarter of 2007 increased by 12.1 percent to $107.4 million from $95.8 million in the corresponding period of 2006. Included in truckload revenue in the second quarter of 2007 is $7.5 million from acquisitions completed in the third quarter of 2006. Brokerage revenue in the second quarter of 2007 increased by 4.2 percent to $43.1 million from $41.4 million in the corresponding period of 2006. Included in brokerage revenue in the second quarter of 2007 is $1.4 million from the acquisition completed in the third quarter of 2006. Intermodal revenue in the second quarter of 2007 increased by 21.3 percent to $27.7 million from $22.8 million in the corresponding period of 2006. Included in intermodal revenue in the second quarter of 2007 is $2.3 million from acquisitions completed through the third quarter of 2006.

For the 26 weeks ended June 30, operating revenues increased 10.2 percent, or $31.2 million, to $337.1 million from $305.9 million for the 26 weeks ended July 1, 2006. Included in operating revenues are fuel surcharges of $31.6 million and $27.6 million for the first two quarters of 2007 and 2006, respectively. Net income decreased 20.6 percent, or $2.1 million, to $7.9 million for the first half of 2007, from $10.0 million for the first half of 2006.

Universal’s truckload revenue in the first half of 2007 increased by 9.5 percent to $200.5 million from $183.2 million in the corresponding period of 2006. Included in truckload revenue in the first half of 2007 is $14.4 million from acquisitions completed in the third quarter of 2006. Brokerage revenue in the first half of 2007 increased by 5.8 percent to $84.1 million from $79.5 million in the corresponding period of 2006. Included in brokerage revenue in the first half of 2007 is $2.9 million from acquisitions completed in the third quarter of 2006. Intermodal revenue in the first half of 2007 increased by 21.3 percent to $52.5 million from $43.2 million in the corresponding period of 2006. Included in intermodal revenue in the first half of 2007 is $5.2 million from acquisitions completed through third quarter of 2006.

“Despite the effects of an inconsistent freight environment, our revenue continues to grow both organically and through the acquisitions we completed in the third quarter of 2006,” said Don Cochran, president and chief executive officer of Warren, Mich.-based Universal Truckload. “In addition, we have made positive improvements in our operating ratio in the second quarter of 2007 compared to the first quarter of 2007. Our operating ratio for the 13 weeks ended June 30, 2007, was 95.8 percent compared to an operating ratio for the 13 weeks ended March 31, 2007, of 96.8 percent.”