Universal Logistics Holdings saw revenue and earnings gains during the second quarter of 2021, the company reported.
The Warren, Mich.-based asset-light transportation and logistics company posted net income of $25.6 million, or 95 cents per diluted share, for the three months ending June 30. That compared with $6.2 million, 23 cents, during Q2 of the previous year. Total operating revenue increased by 63.9% to $422.8 million from $258 million.
“Universal’s momentum carried into the second quarter as we continue to report solid financial results,” Universal CEO Tim Phillips said. “Our second-quarter success is directly attributable to the incredible efforts of our people. While there is still room for improvement in our financial performance, I’d be remiss without congratulating Team Universal on a job well done.”
The results beat expectations on Wall Street. Analysts had been looking for EPS of 81 cents and quarterly revenue of $410.6 million, according to Zacks Consensus Estimate.
Phillips noted that challenges remain going forward.
“While I am bullish on North American auto production over the longer term, the persistent chip shortage and an extremely tight labor market continue to adversely impact our contract logistics operations,” he said. “And although there remains an incredible amount of freight opportunities across the country, the lack of fluidity in the supply chain and constraints on the availability of equipment and drivers remains a headwind.”
The trucking segment saw Q2 operating revenue increase 58.4% to $99.8 million from $63 million last year. The segment includes both agent-based and company-managed trucking operations. Trucking segment load volumes increased 47.7% over Q2 2020, and average operating revenue per load increased 3.5% compared with last year. Income from operations for the segment increased 80.4% to $6.5 million from $3.6 million last year.
The company’s contract logistics segment saw Q2 operating revenue jump 115.6% to $154.8 million from $71.8 million last year. The segment includes value-added and dedicated services. Income from operations in the segment rose to $15.9 million from $800,000 during the same period last year.
Universal said recent program awards and a more stable operating environment led to improved performance for the contract logistics segment. During Q2 2020, the segment was adversely impacted by the shutdown of automotive and heavy-duty truck manufacturing amid the coronavirus pandemic. Last quarter, dedicated transportation load volumes increased 170.6% year-over-year as automotive production resumed.
The intermodal segment saw operating revenue increase 28.6% to $106.6 million from $82.9 million last year. Load volumes increased 8.1% and average operating revenue per load increased an additional 5.8%. Income from operations in the segment rose to $6.2 million from $4.7 million last year.
The company-managed brokerage segment saw operating revenue increase 51.3% to $60.4 million from $39.9 million last year. Average operating revenue per load for the segment increased 71.4%, but load volumes decreased 6.1% on a year-over-year basis. Income from operations increased to $2.4 million from $1.7 million last year.
Source: www.ttnews.com