Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET

Company Representatives

Tim Phillips - Chief Executive Officer

Jude Beres - Chief Financial Officer

Steven Fitzpatrick - Vice President of Finance, Investor Relations

Conference Call Participants

Bruce Chan - Stifel

Operator

Hello, and welcome to Universal Logistics Holdings, Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]. A brief question-and-answer session will follow the formal presentation.

And 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 business objectives or expectations and can be identified by the use of the words such as believe, 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 today.

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. Mr. Phillips, you may begin.

Tim Phillips

Thank you, Joe and good morning. Thank you for joining Universal Logistics Holdings 2022 third quarter earnings call. Our Q3, 2022 numbers are not only a reflection of our continued commitment to expanding shareholder value, they are also a testament to the cohesive team of associates at Universal who share the same goal of being the best. I’m extremely satisfied with our progress over the first three quarters of 2022.

Our focus on operations and customer service are at the center of our commitment to continuous improvement across all of our operating groups. We continue to keep the pulse of the economy close as we are transitioning into the last quarter of the year, with particular attention on our transportation portfolio.

Spot market rates have slid rapidly over the course of the last six months and will put pressure on upcoming customer contract negotiations. While both automotive and Class 8 production remained steady at most plants operated or serviced by Universal, Part and ship shortages continue to keep the auto sector from obtaining increased production.

Poor fluidity has continued to improve because of decreased import shipments, but chassis remained tight in many markets. We are pleased with our progress in California. We successfully entered into an agreement with the Teamsters, which has helped bolster our port Drayage fleet with quality drivers.