WARREN, Mich. - Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported 2016 consolidated net income of $24.2 million, or $0.85 per basic and diluted share, on total operating revenue of $1.07 billion.  Net income in the fourth quarter of 2016 totaled $2.7 million, or $0.10 per basic and diluted share, on total operating revenue of $264.1 million.  This compares to $9.3 million of net income on total operating revenue of $286.0 million in the fourth quarter of 2015. Operating revenues from transportation services in the fourth quarter of 2016 decreased 13.8% to $153.0 million compared to the same period last year.  The $24.5 million decrease reflects a 6.1% year-over-year decline in average operating revenues per load, excluding fuel surcharges, a 3.1% decrease in the number of loads hauled, and $2.0 million of lower fuel surcharges.  Top line revenues in Universal’s value-added services increased 7.0% to $76.5 million; however, the increase was muted by a decline in operations supporting heavy-truck.  Value-added revenues in heavy-truck fell by 38.2% during the quarter, while revenues in other industries serviced by Universal grew by 13.7%. Revenues from intermodal services declined 6.5% to $34.6 million in the fourth quarter of 2016.  In addition to a $0.7 million decline in depot services, the decrease in intermodal services reflects a 3.0% decrease in the number of loads hauled during the quarter and a $1.0 million decrease in fuel surcharges.  Intermodal’s average operating revenues per load, excluding fuel surcharges, remained relatively flat.  Revenues from operations included in Universal’s transportation segment, which is primarily comprised of truckload and intermodal services, decreased $18.6 million, or 10.4%, to $160.0 million in the quarter from $178.6 million one year earlier.  Revenues in the logistics segment, which includes value-added and dedicated transportation services, decreased $3.2 million, or 3.0%, to $104.1 million in the quarter, and included a $10.8 million decline in heavy-truck.  Consolidated income from operations during the fourth quarter of 2016 decreased $12.7 million to $5.8 million, compared to $18.5 million one year earlier.  Persistent industry-wide headwinds negatively impacted results during the period, where Universal’s combined transportation and intermodal revenues fell by $26.9 million. Fourth quarter results were also compressed due to $2.7 million of lower operating income attributable to heavy-truck operations, a $1.2 million charge to bad debt expense for a customer-related bankruptcy and $0.5 million in losses on the sale of used revenue equipment.  Expressed as a percentage of operating revenue, income from operations decreased to 2.2% in the fourth quarter of 2016, compared to 6.5% in the same period last year. “Our model is strong,” stated Jeff Rogers, Universal’s Chief Executive Officer. “We endured a difficult environment all year, and the fourth quarter was no exception.  Our unique position servicing heavy industrial customers subjects us to volatility when those end-markets are depressed; however, it also provides us great upside potential when those markets recover.  Universal’s 2016 results did not meet our expectations, but our strategy remains the same: Simplify, Focus and Execute.  We have undergone quite a transformation over the past few years; streamlining and rebranding our operating subsidiaries, staying focused on margins and controlling costs. Now, it is time to execute.  I believe in Universal’s business model and remain confident that we are well positioned for the years ahead.” Universal calculates and reports selected financial metrics in connection with lending arrangements, in order to isolate and exclude the impact of non-operating expenses related to our corporate development activities.  These statistics are described in more detail below in the section captioned “Non-GAAP Financial Measures.” As of December 31, 2016, Universal held $1.8 million in cash and cash equivalents and marketable securities totaling $14.4 million.  Net outstanding debt at year end was $261.3 million and fourth quarter capital expenditures totaled $18.7 million.  Universal Logistics Holdings, Inc. also announced that its Board of Directors has declared a quarterly cash dividend of $0.07 per share of common stock.  The dividend is payable to shareholders of record at the close of business on March 6, 2017 and is expected to be paid on March 16, 2017.  Conference call: We invite investors and analysts to our quarterly earnings conference call.  During the call, Jeff Rogers, Chief Executive Officer,  Jude Beres, Chief Financial Officer, and Steven Fitzpatrick, Vice President of Finance and Investor Relations, will discuss Universal’s fourth quarter 2016 financial performance, the demand outlook in our key markets and other trends impacting our business. Quarterly Earnings Conference Call Dial-in Details:
Time: 10:00 AM EST
Date: Friday, February 24, 2017
Call Toll Free: (866) 622-0924
International Dial-in:  +1 (660) 422-4956
Conference ID:   54192791
A replay of the conference call will be available beginning two hours after the call through March 24, 2017, by calling (855) 859-2056 (toll free) or +1 (404) 537-3406 (toll) and using conference ID 54192791. The call will also be available on investors.universallogistics.com.    About Universal: Universal Logistics Holdings, Inc. is a leading asset-light provider of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia.  We provide our customers with supply chain solutions that can be scaled to meet their changing demands and volumes.  We offer our customers a broad array of services across their entire supply chain, including transportation, intermodal, and value-added services.  Forward Looking Statements Some of the statements contained in this press release might be considered forward-looking statements.  These statements identify prospective information.  Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  These forward-looking statements are subject to a number of factors that may cause actual results to differ materially from the expectations described.  Additional information about the factors that may adversely affect these forward-looking statements is contained in the Company’s reports and filings with the Securities and Exchange Commission.  The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.  
UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data)
Thirteen Weeks Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
Operating revenues:
Transportation services $ 152,957 $ 177,466 $ 629,192 $ 696,134
Value-added services 76,509 71,535 302,225 285,258
Intermodal services 34,585 36,990 141,334 147,381
Total operating revenues 264,051 285,991 1,072,751 1,128,773
Operating expenses:
Purchased transportation and equipment rent 124,266 139,706 509,775 567,558
Direct personnel and related benefits 68,044 61,279 262,659 220,653
Commission expense 7,682 9,832 32,350 37,844
Operating expense 24,147 26,899 96,612 108,523
Occupancy expense 8,151 6,831 31,923 27,004
Selling, general and administrative 11,850 9,786 38,426 37,510
Insurance and claims 4,117 4,770 17,724 21,413
Depreciation and amortization 9,945 8,424 36,702 34,873
Total operating expenses 258,202 267,527 1,026,171 1,055,378
Income from operations 5,849 18,464 46,580 73,395
Interest expense, net (1,953) (3,359) (8,109) (9,180)
Other non-operating income (expense) 514 (17) 934 790
Income before provision for income taxes 4,410 15,088 39,405 65,005
Provision for income taxes 1,687 5,782 15,161 25,004
Net income $ 2,723 $ 9,306 $ 24,244 $ 40,001
Earnings per common share:
Basic $ 0.10 $ 0.33 $ 0.85 $ 1.37
Diluted $ 0.10 $ 0.33 $ 0.85 $ 1.37
Weighted average number of common shares outstanding:
Basic 28,415 28,380 28,411 29,233
Diluted 28,415 28,382 28,411 29,235
Dividends declared per common share $ 0.07 $ 0.07 $ 0.28 $ 0.28
   
UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands)
December 31, 2016 December 31, 2015
Assets
Cash and cash equivalents $ 1,755 $ 12,930
Marketable securities 14,359 13,431
Accounts receivable - net 144,712 141,275
Other current assets 46,625 35,204
Total current assets 207,451 202,840
Property and equipment - net 246,277 177,189
Other long-term assets - net 116,729 123,126
Total assets $ 570,457 $ 503,155
Liabilities and shareholders’ equity
Current liabilities, excluding current maturities of capital lease obligations and debt $ 109,961 $ 91,700
Debt - net 261,267 233,414
Capital lease obligations 192 1,981
Other long-term liabilities 51,305 44,979
    Total liabilities 422,725 372,074
    Total shareholders’ equity 147,732 131,081
    Total liabilities and shareholders’ equity $ 570,457 $ 503,155
   
UNIVERSAL LOGISTICS HOLDINGS, INC. Unaudited Summary of Operating Data
Thirteen Weeks Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
Transportation Services:
Average operating revenues per loaded mile (a) $ 2.45 $ 2.61 $ 2.42 $ 2.69
Average operating revenues per loaded mile, excluding fuel surcharges, where separately identifiable (a) $ 2.29 $ 2.44 $ 2.27 $ 2.47
Average operating revenues per load (a) $ 935 $ 1,023 $ 916 $ 1,028
Average operating revenues per load, excluding fuel surcharges, where separately identifiable (a) $ 873 $ 956 $ 860 $ 945
Average length of haul (a) (b) 381 392 379 382
Number of loads (a) 144,704