Universal Logistics Holdings, Inc. reported first quarter 2017 net income of $4.3m, on total operating revenues of $284.4m. This compares to $7.5m during first quarter 2016 on total operating revenues of $260.4m.
During the first quarter 2017, income from operations in Universal’s logistics segment, which includes value-added and dedicated services, declined to $4.2m compared to $8.5m in the same period last year. Income from operations in Universal’s transportation segment, which is primarily comprised of truckload, brokerage and intermodal services operations, increased to $6.4m from $5.9m during the same period last year. During the first quarter of 2017, EBITDA decreased $3.0m to $19.6m, compared to $22.6m in the same period last year. As a percentage of total operating revenues, operating income and EBITDA margins for the first quarter 2017 were 3.2% and 6.9%, respectively. These profitability metrics compare to 5.3% and 8.7%, respectively, in first quarter 2016.
“We are very excited to see top-line revenue growth in every one of our service categories,” stated Jeff Rogers, Universal’s Chief Executive Officer, “and even more so, to see double-digit growth in several of them. We are also pleased to see the year-over-year improvement in the operating results from our transportation segment. I believe those businesses are well positioned to provide solid results throughout the year. Despite numerous positive signs, we are still facing real challenges at a few of our large value-added programs. We have experienced certain production issues and ongoing launch costs that have depressed the performance of these operations. Although we are making progress, additional improvement is required in order to reach the level of profitability that we expect. There exists a substantial opportunity for improved results right in front of us, and we remain committed to achieving profitable growth.”
Source: Universal Logistics Holdings
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