The following is a summary of the Universal Logistics Holdings, Inc. (ULH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Universal Logistics reported Q1 2024 revenue of $491.9 million, along with an earnings per share of $1.99, the best in the company's history.
The company's operating margin increased to 15.3%.
Revenue in their contract logistics sector increased by 48.4% to $313.5 million, mainly due to a recent program award.
The trucking segment revenues decreased by 12.6% to $69.7 million caused by fewer loads hauled and reduced revenue per load.
Intermodal segment experienced a drop in revenue of 30.9% to $76.7 million, and company-managed brokerage segment revenues saw a decrease of 8.7% to $31 million.
Business Progress:
By the end of Q1 2024, Universal plans to manage 71 value-added programs, up from 65 programs at the end of Q1 2023.
Growth is expected in the contract logistics segment due to the solid performance of the auto industry and the potential for increased outsourcing due to wage inflation in the auto sector.
Several new contract logistics programs are set to launch at the end of 2024 and the start of 2025.
Universal is seeking to enhance operations efficiency, heighten asset utilization, and expand their network in the Port of Savannah through new leadership and processes.
The company is exploring market expansion in Mexico and acquisition opportunities, especially in the contract logistics sector with potential sales pipeline reaching nearly $1 billion.
More details: Universal Logistics Holdings IR
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