Universal Logistics Holdings, Inc. (UACL) has reported 70.74 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2.72 million, or $0.10 a share in the quarter, compared with $9.31 million, or $0.33 a share for the same period last year. Revenue during the quarter dropped 7.67 percent to $264.05 million from $285.99 million in the previous year period. Total expenses were 97.78 percent of quarterly revenues, up from 93.54 percent for the same period last year. That has resulted in a contraction of 424 basis points in operating margin to 2.22 percent.
Operating income for the quarter was $5.85 million, compared with $18.46 million in the previous year period.
"Our model is strong," stated Jeff Rogers, Universals chief executive officer. "We endured a difficult environment all year, and the fourth quarter was no exception. Our unique position servicing heavy industrial customers subjects us to volatility when those end-markets are depressed; however, it also provides us great upside potential when those markets recover. Universals 2016 results did not meet our expectations, but our strategy remains the same: Simplify, Focus and Execute. We have undergone quite a transformation over the past few years; streamlining and rebranding our operating subsidiaries, staying focused on margins and controlling costs. Now, it is time to execute. I believe in Universals business model and remain confident that we are well positioned for the years ahead."
Debt moves up
Universal Logistics Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $261.46 million as on Dec. 31, 2016, up 11.07 percent or $26.06 million from $235.40 million on Dec. 31, 2015. Total debt was 45.83 percent of total assets as on Dec. 31, 2016, compared with 46.07 percent on Dec. 31, 2015. Debt to equity ratio was at 1.77 as on Dec. 31, 2016, down from 1.80 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.99 for the quarter from 5.50 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
