Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 10:00 am ET


Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q2 2020 Earnings Conference Call - Final Transcript


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Hello, and welcome to Universal Logistics Holdings Second Quarter 2020 Earnings Conference Call. [Operator Instructions].

During the course of this call, management may make forward-looking statements based on their best view of the business as seen today. Statements that are forward looking relate to Universal's business objectives or expectations and can be identified by the use of the words such as belief, expect, anticipate and project. Such statements are subject to risks and uncertainties and actual results could differ materially from those expectations. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Tim Phillips, Chief Executive Officer; Mr. Jude Beres, Chief Financial Officer; and Mr. Steven Fitzpatrick, Vice President of Finance and Investor Relations.

Thank you. Mr. Philips, you may begin.

Tim Phillips

Good morning. Thank you for joining Universal Logistics Holdings second quarter earnings call. Before we begin, I would like to acknowledge the passing of Universal's Founder and Former Chairman, Matty Moroun. Matty was not only a great innovator in transportation and logistics space, but also a teacher and friend to many of us over the years. His legacy continues to hover over Universal and will live on through all of us. We had the great pleasure of working for him throughout the years.

Now for the quarter, Universal -- yesterday afternoon, Universal released its first quarter financial results reporting $258 million in top line revenues and earnings of $0.23 a share, which included $0.02 per share for non-cash holding gain in a marketable securities portfolio. Considering the extremely tough operating environment that saw much of the automotive and retail idle for the better part of two months, we were very pleased with our operating results.

We entered the second quarter with substantial portion of the business influx or shut down because of the COVID-19 pandemic. We made some tough staffing and operational cost management decision early in the quarter, which proved beneficial as the business volumes constricted. We instituted a COVID-19 preparedness and response plan at the onset of the quarter and continue to update based on CDC, state and local requirements. We are extremely pleased with the focus, execution and performance of our leadership team across all of our service lines. Overall, our preparation and cooperation from all of our associates has allowed the company to operate safely and effectively over the past few months.

Despite the difficult sales environment, we secured new business in multiple vertical. Our truckload group experienced several good wins in food and beverage, and consumer goods. Our logistics pipeline remains filled with opportunities, building on our substantial first quarter wins. Our value-added and dedicated transportation service line have been awarded over $140 million in new business over the past six months. If production schedule stay on track in Q3, we are expecting $15 million in incremental revenue, then ramping up $25 million in Q4 and Q1 of 2021. At full run rate, the new business will provide $40 million per quarter by second quarter of