Universal Logistics Holdings, Inc. · NASDAQ:ULH
Universal Logistics — Investor Presentation (August 2020)
28 slides from Universal Logistics's investor presentation, Aug 24, 2020
Slide 1: Universal Logistics Holdings, Inc. Fall 2020
UNIVERSAL LOGISTICS HOLDINGS, INC. FALL 2020 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation and any other written or oral statements made by us or on our behalf to analysts, investors, the media, and others may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Th
Slide 3: About Us
eee, V Universal | es ABOUT US
Slide 4: Business Overview
BUSINESS OVERVIEW Highlights Suite of transportation and logistics solutions Diversified, complementary service offerings Variable cost model protects margin Focused on sales growth and managing costs Favorable long-term outlook across service lines 4
Slide 5: Our History
OUR HISTORY Universal Founded 1981 1981 - 2005 Strategic Acquisitions Initial Public Offering 2005 LINC & Westport Acquisitions Six Strategic Intermodal Acquisitions Corporate Streamline Universal Logistics Holdings (NASDAQ: ULH) 2015 - 2016 2012 - 2013 2018 - 2019 5
Slide 6: Service Lines
eee, V Universal | es SERVICE LINES
Slide 7: Service Lines
SERVICE LINES Truckload transportation Uses a mix of owner-operated and company owned equipment to haul commodities in various end markets. Services include dry van, flatbed, heavy haul, refrigerated, and specialized equipment Specialized truckload Provides transportation services of customer goods
Slide 8: Intermodal Services
INTERMODAL SERVICES Asset-right variable cost model Local and regional drayage 50+ terminals, 14 full service container yards and 2,550 total tractors Diversified customer base BCO’s Steamship lines Railroads Target revenue: $500 million Target margins: 10% - 12% Business strategy Operate a national
Slide 9: Truckload Services
TRUCKLOAD SERVICES Asset-light variable cost model A national network of 196 agents and company terminals in the U.S. and Canada 1,290 total tractors Mix of spot and contractual rates Expertise and specialization in end markets served Steel & metals Oil & gas Industrials Retail & consumer goods Targ
Slide 10: Brokerage Services
BROKERAGE SERVICES Asset-light variable cost model Nationwide network broker carriers Mix of spot and contractual rates Expert 3PL offerings Retail & consumer goods Steel & metals Industrials Target revenue: $300 million Target margins: 4% - 6% Business strategy Aggregate freight for large national
Slide 11: Value-Added Services
VALUE-ADDED SERVICES Customized customer solutions: in-plant or offsite using proprietary technology 5 – 10 year contracts with high renewal rate; 55 active programs 4,025 full-time equivalents Long-tenured customer base Retail & consumer goods Automotive Class 8 Aerospace Target revenue: $450 milli
Slide 12: Dedicated Services
DEDICATED SERVICES Asset-based model Custom tailored service offerings in the U.S. and Canada Multi-year contracts Serving industrial markets 770 total tractors Target revenue: $175 million - $200 million Target margins: 10% - 12% Business strategy Own the plant: Supporting inbound manufacturing for
Slide 13: Shift in Business Mix
SHIFT IN BUSINESS MIX Strategic shift to more profitable services lines: $140 million in VAS and Dedicated wins at full run rate in first half 2020 6 strategic intermodal acquisitions in key markets: Southern California, Chicago, and 26 locations east of the Mississippi Transforming brokerage to ass
Slide 14: Who We Serve
eee, V Universal | es WHO WE SERVE
Slide 15: Customer Relationships
CUSTOMER RELATIONSHIPS ynivers31 DRESS FOR LESS ED SD Crear. niagara &xge_Walmart >< aM mane MICHELIN Vans fe) FCA ~ €€ Hapag-Lloyd <> PeELARiIs m €&> Q SaEING KraftHeinz “neste P&LARIS 15 PEOPLE DRIVEN SOLUTIONS
Slide 16: Customer Relationships
CUSTOMER RELATIONSHIPS ynivers31 | commer | ances aia | oes | neemcs | v v v v v General Motors Walmart v v v v Ford v v v v v General Electric v Fiat Chrysler v v v v Mack v Ross Stores v Kraft Heinz v v Niagara Bottling v v Boeing v v v
Slide 17: Diversification of Industries Served
DIVERSIFICATION OF INDUSTRIES SERVED Reduced exposure to automotive sector from 40% of revenue in 2017 to 34% of revenue in the first half of 2020 17
Slide 18: Financial Overview
eee, V Universal | es FINANCIAL OVERVIEW
Slide 19: Financial Results
FINANCIAL RESULTS Q4 2018 is adjusted to exclude the impact of $7.0 million or $0.19 per share in litigation charges; Q3 2019 is adjusted to exclude the impact of $27.0 million or $0.72 per share in litigation charges; Q4 2019 is adjusted to exclude the impact of $2.9 million or $0.08 per share in l
Slide 20: Debt and Liquidity
DEBT AND LIQUIDITY Flexible balance sheet with ability to raise capital: $350 million shelf offering $110 million available on revolver $100 million accordion feature on existing credit facility Can leverage up to 3.5x debt to adjusted EBITDA Q3 2017 is adjusted to exclude the impact of $17.4 millio
Slide 21: Current Outlook
eee, V Universal | es CURRENT OUTLOOK
Slide 22: Full Year 2020 Outlook
FULL YEAR 2020 OUTLOOK Near-Term Targets Target revenue: $2.0 billion Reduce back-office expenses by 50-100 bps Operating ratio target: 90.0% 22
Slide 23: Proven Business Model
Proven business model built ona highly variable cost structure PEOPLE DRIVEN SOLUTIONS Highly experienced leadership team, with deep industry knowledge Ingrained customer relationships with some of the most recognizable companies in the world Well positioned to deliver long- term shareholder value 2
Slide 24: Universal
‘Universal
Slide 25: Non-GAAP Financial Measures
This presentation includes certain non-U.S. generally accepted accounting principles (GAAP) financial measures and adjustments. Presented are EBITDA, adjusted EBITDA, debt to EBITDA, adjusted operating margin, adjusted net margin and adjusted diluted earnings per share. The Company defines EBITDA as
Slide 26: Appendix
APPENDIX a Universal Cc Yearei December 31, Year End YearEnded Ive Months Ended uly 4 December 31, 2017 Revenue S$ LoRwL $ 21665 $ 1,461,708 $ 4s1998 $ 12158 is Income from ope! s 73,305 $ 45580 $ 3794 $ 65,380 $ 42.998 aia - = 7,000 29,282) 23.992 Agjusted income from operations 733% $ 45580 $ 9079
Slide 27: Appendix
APPENDIX es a3 as ai a an 2018 2018 2019 2019 2020 {in thousands) (in thousands) (in thousands) (ind (in thousands) _(in thousands] Revenue $ 374292 $ 38378 $ 377,407 $ $ 375931 $ 382,16: ‘Adjusted Income from Operations Income from Operations 22530 $ 17,907 $ 26,513 $ 30.716 $ (7,353) $15,504 $ 23,
Slide 28: Contact Us
CONTACT US Steve Fitzpatrick Investor Relations sfitzpatrick@universallogistics.com 28
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