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Oct 03, 2020
Universal Logistics Q3 2020 Earnings Report
Reported a net income of $13.6 million on total operating revenues of $365.0 million.
Key Takeaways
Universal Logistics Holdings reported a consolidated net income of $13.6 million, or $0.50 per basic and diluted share, on total operating revenues of $365.0 million for the third quarter of 2020. This is compared to a net loss of $8.4 million during the third quarter of 2019 on total operating revenues of $375.5 million. The rapid recovery of North American automotive production was a primary driver behind Universal’s solid performance.
Operating revenues for the third quarter 2020 were $365.0 million, a 2.8% decrease compared to the same period last year.
Operating income for the third quarter 2020 was $22.1 million, resulting in a 6.0% operating margin.
Earnings per share for the third quarter 2020 were $0.50 per share.
The company has reinstated a quarterly dividend of $0.105 per share.
Revenue by Segment
Forward Guidance
Company expects to build upon its success by launching several new logistics wins over the next few quarters and is well under way on the road to economic recovery.
Positive Outlook
- Rapid recovery of North American automotive production.
- Rebound has quite a bit of runway, particularly in the light-truck and SUV markets.
- Continued strength in dedicated transportation and value-added service businesses.
- Robust intermodal activity during the quarter and are most recently seeing a resurgence of imports on the West coast.
- Favorable truckload rate environment and disciplined cost control.
Challenges Ahead
- Port congestion and a slower-than-anticipated rate of trucks returning to work has caused some pockets to underperform.
- Tight truckload capacity adversely impacted company-managed brokerage business in the third quarter.
- Persistent margin pressure throughout the quarter led to underperformance in brokerage service line.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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