Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q2 2024 Earnings Call July 26, 2024 10:00 AM ET

Company Participants

Steven Fitzpatrick - Vice President, Finance and Investor Relations
Tim Phillips - Chief Executive Officer
Jude Beres - Chief Financial Officer

Conference Call Participants

Bruce Chan - Stifel

Operator

Hello and welcome to Universal Logistics Holdings Second Quarter 2024 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 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.

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. Phillips, you may begin.

Tim Phillips

Thank you, Ludy. Good morning, everyone. Thank you for joining Universal’s 2024 second quarter earnings call. Once again, the theme of the quarter can be summed up in four words: diversity is our strength. Universal’s diversity service offerings are what differentiates us from our competitors in the transportation and logistics space and is what allows us to deliver outstanding results even during this prolonged transportation down cycle.

But before I dig into the results, I would also like to take the moment to thank the entire Universal team. The tremendous work and effort of our 10,000 plus employees and contractors are what make these results possible. This is what allows us to deliver outstanding service to our customers and continue to be the best-of-breed transportation and logistics provider.

Now, let’s move on to the quarter. Overall, Universal once again delivered outstanding results in the second quarter of 2024. We grew top line revenue by 12%, delivered double-digit operating margin, increased our earnings per share by 30% compared to the same period last year. We did all this during one of the longest and deepest freight recessions I’ve experienced. Universal’s second quarter results, however, were mixed and varied considerably amongst our different business segments.

Our contract logistics business continues to outperform and deliver excellent results, while our intermodal and company-managed brokerage segments continue to perform below our expectations. The trucking segment performed well despite softness in the overall truckload market on the back of our specialized, heavy-haul wind business. Q2 was another challenging environment to navigate in the transportation market. However, Universal’s diversified business model is working as designed and I am very happy with the outcome.