UNIVERSAL LOGISTICS HOLDINGS, INC. Q3 FY2023 earnings call

• Contract Logistics: 73 active value-added programs, continued new opportunity flow, and customer-centric programs growing. • Intermodal: Navigated restricted import environment, load volumes down, accessorial charges decreased. • Trucking: Van and flatbed headwinds but wind transportation had 15.6% load uptick. • Brokerage: Brokerage loads down, company-managed brokerage revenue drop due to depressed pricing. • Investments: Continued in EV space with auto manufacturers, pipeline of new customers, cross-selling initiatives. • UAW Strike: Contracts have fixed/variable pricing to absorb impact, hope for near-term resolution.

In the Contract Logistics segment, income from operations decreased $300,000 to $35.1 million on $208.1 million in total operating revenues, with an operating margin of 16.9%. The Intermodal segment had operating revenues decrease to $86.6 million, income from operations was a loss of $4.3 million, and operating ratio was 105%. The Trucking segment had operating revenues decrease to $97.1 million, income from operations increased to $6.6 million, and operating margin 6.8%. The Company-Managed Brokerage segment had operating revenues decrease to $28.1 million, income from operations was a loss of $1.1 million, and operating margin negative 3.8%.

• Fourth quarter 2023 top line revenues expected between $350 million and $375 million, operating margins in 7% to 9% range. • If UAW strike continues longer than anticipated or expands, guidance will be updated during the quarter. • Board declared $0.105 per share regular quarterly dividend, payable Jan 2, 2024.

• UAW strike impact on operations, potential extension affecting results. • Sluggish import environment negatively impacting intermodal segment. • Depressed pricing and margin compression in brokerage and trucking segments.

Q: Please provide more color on volume attrition from UAW late in Q3 and if rate of disruption might change meaningfully into next quarter.

A: Tim mentioned disruption in Q3 tailing into Q4, hope for near-term resolution of UAW strike.

Q: General outlook for industrial economy moving into next year.

A: Tim said industrial space to see slower environment, Q4 and Q1 expected to have headwinds.

Q: New normalized earnings power bogey for the company.

A: Jude said historically ~$1 per share in normal operating environment, but current conditions affect.