Universal Logistics Holdings’ (NASDAQ: ULH) earnings bounced back in the third quarter after pandemic-induced lows during the prior three-month period.
The Warren, Michigan-based truckload and logistics company’s net income rose to $13.6 million for the third quarter and earnings per share of 50 cents. Second-quarter net income was $6.2 million, down 69% from the same period last year, and 23 cents per share.
The third-quarter results were a 261% turnaround compared to the same quarter in 2019, when Universal Logistics reported a net loss of $8.4 million and 30 cents per share.
“Universal had a great quarter, we saw a strong rebound from the second quarter, increasing top-line revenues over 40% and more than doubling our earnings per share,” Tim Phillips, CEO of Universal Logistics, said during a Friday earnings call.
Universal Logistics Holdings is an asset-light truckload transportation, brokerage, intermodal and logistics provider throughout the United States, Mexico, Canada and Colombia. The company reports into two segments, transportation and logistics.
Universal Logistics has more than 6,000 employees across North America.
Phillips credited the company’s third-quarter turnaround to the resurgence of the North American automotive production industry, particularly in the light-truck and SUV markets.
“The quarterly results included $2.5 million in losses at our company’s managed brokerage operation, which cost us 70 basis points in operating margin and 7 cents per share in the quarter,” Phillips said. “The rest of our operations we’re firing on all cylinders, led by our robust rebounding automotive production, massive imports and record rates in our truckload van operation.”
The transportation segment, which is primarily comprised of truckload, brokerage and intermodal services operations, reported operating income of $10.4 million on total operating revenues of $237.1 million during the third quarter.
During the quarter, Universal Logistics moved 46,712 loads compared to 56,510 during the same period last year, while its average operating revenue per load, excluding fuel surcharges, increased by 6.2%.
“We expect robust volumes to continue through mid-November, tapering off during the normal automotive holiday slowdowns around Thanksgiving and Christmas,” Phillips said.
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