Universal Logistics (NASDAQ: ULH) posts Q2 gain on property sale and dividend
Rhea-AI Filing Summary
Universal Logistics Holdings reported second quarter 2026 operating revenues of $379.3 million, income from operations of $45.1 million, net income of $26.2 million and GAAP earnings of $0.99 per basic and diluted share, compared with revenues of $393.8 million and earnings of $0.32 a year earlier. Results include a $45.3 million gain on the sale of Kearny, New Jersey real property, a $3.9 million non-cash tractor impairment and $12.3 million of legal charges, which in aggregate increased operating income by $29.1 million.
Excluding these items, adjusted income from operations was $16.0 million, with an adjusted operating margin of 4.2%, and adjusted diluted earnings were $0.16 per share. Adjusted EBITDA was $49.2 million, compared with $56.2 million one year earlier. Contract logistics revenues rose 4.2% to $271.4 million with a 9.1% margin. The intermodal segment generated revenues of $44.1 million and an operating loss of $10.4 million, while trucking revenues were $63.8 million with a 4.5% margin.
The board declared a quarterly cash dividend of $0.105 per share, payable October 1, 2026 to shareholders of record on September 1, 2026. As of July 4, 2026, the company held $20.3 million in cash and cash equivalents, had outstanding borrowings of $695.5 million with $238.8 million available under its $500 million revolving credit facility, and was in compliance with financial covenants.
Positive
- None.
Negative
- None.
Filing Explained
Reported capital expenditures include a $55.0 million non-cash property exchange, so the $67.7 million total is not a direct cash-use measure.
As a Form 8-K, this filing reports specified material events; the company furnishes its results for the twenty-six weeks ended
The property exchange is identified as non-cash, so the reported
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
operating margin financial
intermodal segment financial
non-GAAP financial measures financial
value-added services financial
Earnings Snapshot
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Universal Logistics (ULH) Q2 2026 revenue and GAAP earnings?
How did one-time items affect ULH’s Q2 2026 results?
What were ULH’s key non-GAAP metrics for Q2 2026?
How did Universal Logistics’ main segments perform in Q2 2026?
What dividend did ULH declare and when will it be paid?
What are Universal Logistics’ debt and liquidity positions as of July 4, 2026?
How did ULH’s intermodal and trucking volumes and pricing trend in Q2 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 31, 2026, the Company issued a press release announcing its financial and operating results for the thirteen weeks and twenty-six weeks ended July 4, 2026, a copy of which is furnished as Exhibit 99.1 to this Form 8-K.
Item 7.01 Regulation FD Disclosure.
On July 31, 2026, the Company issued a press release announcing that the Company’s board of directors declared a cash dividend of $0.105 per share of common stock. The dividend is payable on October 1, 2026 to shareholders of record on September 1, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 |
Press Release dated July 31, 2026. |
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104 |
Cover Page Interactive Data File (formatted as Inline XBRL) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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UNIVERSAL LOGISTICS HOLDINGS, INC. |
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Date: |
July 31, 2026 |
By: |
/s/ Steven Fitzpatrick |
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Steven Fitzpatrick |
Exhibit 99.1
Universal Logistics Holdings, Inc. Reports Second Quarter 2026 Financial Results; Declares Dividend
Warren, MI – July 31, 2026 — Universal Logistics Holdings, Inc. (NASDAQ: ULH) today reported consolidated operating revenues of $379.3 million, income from operations of $45.1 million, net income of $26.2 million, and $0.99 GAAP earnings per basic and diluted share for the second quarter 2026.
Universal’s operating results for the second quarter 2026 include a $45.3 million gain on the sale of certain real property located in Kearny, New Jersey, a $3.9 million non-cash impairment charge related to a group of tractors that are no longer expected to be utilized in operations and $12.3 million of charges related to developments in outstanding legal matters during the period. In the aggregate, these items increased operating income by $29.1 million and are included in our other non-reportable segment.
For comparative purposes, Universal reported total operating revenues of $393.8 million, income from operations of $19.9 million, net income of $8.3 million, and $0.32 earnings per basic and diluted share for the corresponding period last year.
Universal’s operating margin, calculated using GAAP income from operations, was 11.9% for the second quarter of 2026, compared with 5.1% during the same period last year. Excluding the gain recognized in connection with the Kearny sale, non-cash impairment charge and legal charges, the Company’s adjusted income from operations in the second quarter 2026, a non-GAAP measure, was $16.0 million. As a percentage of total operating revenue, Universal’s adjusted operating margin, a non-GAAP measure, for the second quarter 2026 was 4.2%, compared to an adjusted operating margin of 5.1% during the same period last year. The Company's second quarter 2026 adjusted earnings, a non-GAAP measure, was $0.16 per diluted share.
The Company’s adjusted EBITDA, a non-GAAP measure, during the second quarter 2026 was $49.2 million, compared to adjusted EBITDA of $56.2 million one year earlier. As a percentage of total operating revenue, Universal's adjusted EBITDA margin, a non-GAAP measure, for the second quarter 2026 was 13.0%, compared to adjusted EBITDA margin of 14.3% during the same period last year.
The Company provides reconciliations of each non-GAAP financial measure used in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP. These quantitative reconciliations, together with management’s explanation of the purposes for which the non-GAAP measures are presented in the accompanying tables and related disclosures.
“Our second quarter results reflect improved execution within our portfolio of transportation and logistics services,” stated Tim Phillips, Universal’s CEO. “Our contract logistics and trucking segments delivered solid results, reflecting our disciplined operating approach and commitment to providing best-in-class service. We also made meaningful progress within our intermodal segment, positioning the business to benefit from a continued recovery in freight markets. While we recognize that the recovery remains in its early stages and market conditions continue to evolve, we believe the freight cycle is moving in a favorable direction. We remain committed to executing our long-term strategy, investing in our people and operations, and creating sustainable value for our customers and stockholders.”
Contract Logistics
In the contract logistics segment, which includes our value-added and dedicated services, second quarter 2026 operating revenues increased 4.2% to $271.4 million, compared to $260.6 million for the same period last year.
Contract logistics segment revenues included $10.5 million in separately identified fuel surcharges from dedicated transportation services, compared to $7.3 million during the same period last year. At the end of the second quarter 2026, we managed 79 value-added programs, compared to 87 programs at the end of the second quarter 2025.
Income from operations in the contract logistics segment during the second quarter 2026 was $24.6 million, compared to $21.8 million during the same period last year. As a percentage of revenue, operating margin in the contract logistics segment for the quarter was 9.1%, compared to 8.4% during the same period last year.
Intermodal
Operating revenues in the intermodal segment decreased 36.0% to $44.1 million in the second quarter, compared to $68.9 million for the same period last year. The year-over-year decline reflects lower load volumes and continued softness in demand and pricing pressures.
Intermodal segment revenues included $7.1 million in separately identified fuel surcharges, compared to $8.2 million during the same period last year. Intermodal segment revenues also include other accessorial charges such as detention, demurrage and storage, which totaled $5.2 million during the quarter, compared to $9.2 million one year earlier.
Load volumes declined 34.0%, and the average operating revenue per load, excluding fuel surcharges, declined an additional 6.3% on a year-over-year basis. In the second quarter 2026, the intermodal segment incurred an operating loss of $(10.4) million compared to an operating loss of $(5.7) million during the same period last year. As a percentage of revenue, operating margin in the intermodal segment for the second quarter 2026 was (23.7)%, compared to (8.2)% one year earlier.
Trucking
Operating revenues in the trucking segment decreased slightly to $63.8 million, compared to $64.1 million during the same period last year.
Trucking segment revenues included $18.8 million from brokerage services, compared to $18.4 million during the same period last year. Also included in our trucking segment revenues for the quarter were $5.6 million in separately identified fuel surcharges, compared to $3.4 million in fuel surcharges during the same period last year.
On a year-over-year basis, load volumes declined 15.7%; however, the average operating revenue per load, excluding fuel surcharges, increased 15.5%. Income from operations in the trucking segment was to $2.9 million compared to $3.3 million during the same period last year. As a percentage of revenue, the segment’s operating margin was 4.5% compared to 5.2% during the same period last year.
Cash Dividend
Universal Logistics Holdings, Inc. also announced today that its Board of Directors has declared a cash dividend of $0.105 per share of common stock. The dividend is payable to stockholders of record at the close of business on September 1, 2026 and is expected to be paid on October 1, 2026.
Other Matters
As of July 4, 2026, Universal held cash and cash equivalents totaling $20.3 million and had total outstanding borrowings of $695.5 million, a decrease of $59.2 million during the quarter and $106.8 million since December 31, 2025. At July 4, 2026, the Company had approximately $238.8 million available under its $500 million revolving credit facility and was in compliance with its financial covenants. Capital expenditures during the quarter totaled $67.7 million, including a $55.0 million non-cash expenditure related to the previously disclosed property exchange.
Universal also reports selected non-GAAP financial measures to supplement its financial results presented in accordance with GAAP. These measures and the corresponding reconciliations to GAAP are described in more detail below in the section captioned “Non-GAAP Financial Measures.”
Source: Universal Logistics Holdings, Inc.
For Further Information:
Steven Fitzpatrick, Investor Relations
SFitzpatrick@UniversalLogistics.com
About Universal:
Universal Logistics Holdings, Inc. (“Universal”) is a holding company whose subsidiaries provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico and Canada. Our operating subsidiaries provide our customers with supply chain solutions that can be scaled to meet their changing demands. We offer our customers a broad array of services across their entire supply chain, including value-added, dedicated, intermodal and trucking services. In this press release, the terms “us,” “we,” “our,” or the “Company” refer to Universal and its consolidated subsidiaries.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements identify prospective information. Forward-looking statements can be identified by words such as: “expect,” “anticipate,” “intend,” “plan,” “goal,” “prospect,” “seek,” “believe,” “targets,” “project,” “estimate,” “future,” “likely,” “may,” “should” and similar references to future periods. Statements regarding freight-market conditions and recovery, future demand and pricing, operating initiatives and the Company’s strategies and objectives are forward-looking statements.
Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. These risks and uncertainties include, but are not limited to, market conditions; customer demand; pricing and competitive pressures; the timing, execution, and effectiveness of cost-reduction, efficiency, or restructuring initiatives; operating costs; labor availability; and other factors affecting operating income and margins.
Additional information about the factors that may adversely affect these forward-looking statements is contained in Universal’s reports and filings with the Securities and Exchange Commission. Universal assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.
UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
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Thirteen Weeks Ended |
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Twenty-six Weeks Ended |
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July 4, |
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June 28, |
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July 4, |
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June 28, |
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2026 |
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2025 |
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2026 |
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2025 |
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Operating revenues: |
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Truckload services |
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$ |
45,039 |
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$ |
45,922 |
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$ |
79,017 |
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$ |
83,700 |
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Brokerage services |
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19,449 |
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19,571 |
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36,201 |
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39,836 |
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Intermodal services |
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43,411 |
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67,745 |
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90,723 |
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136,199 |
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Dedicated services |
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88,106 |
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81,828 |
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172,224 |
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166,835 |
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Value-added services |
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183,318 |
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178,728 |
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368,733 |
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349,613 |
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Total operating revenues |
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379,323 |
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393,794 |
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746,898 |
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776,183 |
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Operating expenses: |
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Purchased transportation and equipment rent |
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67,014 |
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81,508 |
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127,692 |
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161,251 |
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Direct personnel and related benefits |
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164,798 |
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168,032 |
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341,002 |
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332,533 |
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Operating supplies and expenses |
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56,287 |
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50,358 |
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104,614 |
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101,669 |
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Commission expense |
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4,468 |
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4,395 |
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8,653 |
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8,651 |
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Occupancy expense |
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16,264 |
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11,803 |
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31,823 |
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23,056 |
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General and administrative |
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16,019 |
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14,026 |
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31,088 |
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27,203 |
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Insurance and claims |
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17,523 |
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7,599 |
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25,121 |
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14,563 |
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Depreciation and amortization |
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33,184 |
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36,203 |
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68,827 |
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71,691 |
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(Gain) on disposal of property and equipment |
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(45,257 |
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(23 |
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(45,722 |
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(7 |
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Impairment expense |
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3,886 |
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— |
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3,886 |
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— |
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Total operating expenses |
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334,186 |
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373,901 |
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696,984 |
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740,610 |
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Income from operations |
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45,137 |
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19,893 |
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49,914 |
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35,573 |
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Interest expense, net |
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(10,560 |
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(8,852 |
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(20,266 |
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(17,075 |
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Other non-operating income (expense) |
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(2 |
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149 |
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293 |
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727 |
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Income before income taxes |
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34,575 |
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11,190 |
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29,941 |
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19,225 |
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Provision for income taxes |
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8,389 |
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2,874 |
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7,266 |
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4,895 |
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Net income |
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$ |
26,186 |
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$ |
8,316 |
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$ |
22,675 |
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$ |
14,330 |
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Earnings per common share: |
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Basic |
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$ |
0.99 |
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$ |
0.32 |
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$ |
0.86 |
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$ |
0.54 |
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Diluted |
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$ |
0.99 |
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$ |
0.32 |
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$ |
0.86 |
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$ |
0.54 |
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Weighted average number of common shares outstanding: |
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Basic |
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26,370 |
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26,331 |
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26,361 |
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26,325 |
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Diluted |
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26,370 |
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26,341 |
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26,361 |
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26,341 |
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Dividends declared per common share: |
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$ |
0.105 |
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$ |
0.105 |
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$ |
0.210 |
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$ |
0.210 |
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UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
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July 4, |
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December 31, |
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Assets |
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Cash and cash equivalents |
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$ |
20,311 |
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$ |
26,846 |
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Marketable securities |
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— |
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10,351 |
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Accounts receivable - net |
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267,374 |
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261,337 |
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Other current assets |
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90,052 |
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84,308 |
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Total current assets |
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377,737 |
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382,842 |
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Property and equipment - net |
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779,747 |
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819,495 |
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Other long-term assets - net |
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525,530 |
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569,651 |
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Total assets |
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$ |
1,683,014 |
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$ |
1,771,988 |
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Liabilities and stockholders' equity |
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Current liabilities, excluding current maturities of debt |
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$ |
217,482 |
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$ |
203,245 |
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Debt - net |
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692,582 |
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797,571 |
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Other long-term liabilities |
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211,904 |
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230,817 |
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Total liabilities |
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1,121,968 |
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1,231,633 |
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Total stockholders' equity |
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561,046 |
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540,355 |
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Total liabilities and stockholders' equity |
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$ |
1,683,014 |
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$ |
1,771,988 |
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UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Summary of Operating Data
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Thirteen Weeks Ended |
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Twenty-six Weeks Ended |
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July 4, |
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June 28, |
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July 4, |
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June 28, |
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2026 |
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2025 |
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2026 |
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2025 |
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Contract Logistics Segment: |
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Average number of value-added direct employees |
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6,792 |
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7,407 |
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7,028 |
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7,329 |
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Average number of value-added full-time equivalents |
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43 |
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48 |
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46 |
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42 |
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Number of active value-added programs |
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79 |
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87 |
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79 |
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87 |
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Intermodal Segment: |
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Number of loads (a) |
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62,291 |
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94,327 |
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140,121 |
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195,797 |
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Average operating revenue per load, excluding fuel surcharges (a) |
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$ |
521 |
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$ |
556 |
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$ |
489 |
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$ |
540 |
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Average number of tractors |
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1,017 |
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1,392 |
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1,079 |
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1,396 |
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Number of depots |
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8 |
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8 |
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8 |
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8 |
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Trucking Segment: |
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Number of loads |
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26,519 |
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31,451 |
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52,595 |
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60,073 |
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Average operating revenue per load, excluding fuel surcharges |
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$ |
2,226 |
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$ |
1,927 |
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$ |
1,996 |
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$ |
1,902 |
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Average number of tractors |
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520 |
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|
|
602 |
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|
|
533 |
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|
617 |
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Average length of haul |
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402 |
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|
369 |
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|
392 |
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|
381 |
|
(a) Excludes operating data from freight forwarding division in order to improve the relevance of the statistical data related to our brokerage services and improve the comparability to our peer companies.
UNIVERSAL LOGISTICS HOLDINGS, INC.
Unaudited Summary of Operating Data - Continued
(Dollars in thousands)
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Thirteen Weeks Ended |
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Twenty-six Weeks Ended |
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July 4, |
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June 28, |
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July 4, |
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June 28, |
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2026 |
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2025 |
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2026 |
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2025 |
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Operating Revenues by Segment: |
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Contract logistics |
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$ |
271,424 |
|
|
$ |
260,556 |
|
|
$ |
540,957 |
|
|
$ |
516,448 |
|
Intermodal |
|
|
44,077 |
|
|
|
68,914 |
|
|
|
91,931 |
|
|
|
139,610 |
|
Trucking |
|
|
63,822 |
|
|
|
64,069 |
|
|
|
114,010 |
|
|
|
119,652 |
|
Other |
|
|
— |
|
|
|
255 |
|
|
|
— |
|
|
|
473 |
|
Total |
|
$ |
379,323 |
|
|
$ |
393,794 |
|
|
$ |
746,898 |
|
|
$ |
776,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from Operations by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Contract logistics |
|
$ |
24,599 |
|
|
$ |
21,770 |
|
|
$ |
42,071 |
|
|
$ |
45,629 |
|
Intermodal |
|
|
(10,450 |
) |
|
|
(5,676 |
) |
|
|
(23,566 |
) |
|
|
(16,385 |
) |
Trucking |
|
|
2,855 |
|
|
|
3,340 |
|
|
|
3,421 |
|
|
|
5,530 |
|
Other |
|
|
28,133 |
|
|
|
459 |
|
|
|
27,988 |
|
|
|
799 |
|
Total |
|
$ |
45,137 |
|
|
$ |
19,893 |
|
|
$ |
49,914 |
|
|
$ |
35,573 |
|
Non-GAAP Financial Measures
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures include adjusted income from operations, adjusted net income, adjusted earnings per diluted share, adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), and adjusted EBITDA margin.
The Company believes these non-GAAP financial measures provide useful supplemental information to investors by facilitating comparisons of operating performance across periods and by excluding certain items and impairment charges that may not be indicative of our core operating results. These measures are used internally by management to analyze operating performance, develop budgets, and forecast future periods. However, these non-GAAP measures should not be considered in isolation or as a substitute for GAAP financial measures, and other companies may calculate similarly titled measures differently.
Reconciliation to GAAP Measures
Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure are included in the accompanying tables in this press release. Set forth below is a reconciliation of income from operations, the most comparable GAAP measure, to adjusted income from operations; and of net income, the most comparable GAAP measure, to adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA for each of the periods indicated. The Company encourages investors to review these reconciliations in conjunction with our GAAP results.
|
|
Thirteen Weeks Ended |
|
|
Twenty-six Weeks Ended |
|
||||||||||
|
July 4, |
|
|
June 28, |
|
July 4, |
|
|
June 28, |
|
||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||||
|
|
( in thousands, except percentages) |
|
|
( in thousands, except percentages) |
|
||||||||||
Adjusted income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from operations |
|
$ |
45,137 |
|
|
$ |
19,893 |
|
|
$ |
49,914 |
|
|
$ |
35,573 |
|
(Gain) on Kearny sale |
|
|
(45,274 |
) |
|
|
— |
|
|
|
(45,274 |
) |
|
|
— |
|
Legal charges |
|
|
12,250 |
|
|
|
— |
|
|
|
12,250 |
|
|
|
— |
|
Impairment expense |
|
|
3,886 |
|
|
|
— |
|
|
|
3,886 |
|
|
|
— |
|
Adjusted income from operations |
|
$ |
15,999 |
|
|
$ |
19,893 |
|
|
$ |
20,776 |
|
|
$ |
35,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted operating margin (a) |
|
|
4.2 |
% |
|
|
5.1 |
% |
|
|
2.8 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income and adjusted diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
26,186 |
|
|
$ |
8,316 |
|
|
$ |
22,675 |
|
|
$ |
14,330 |
|
(Gain) on Kearny sale, net of income taxes (b) |
|
|
(34,289 |
) |
|
|
— |
|
|
|
(34,287 |
) |
|
|
— |
|
Legal charges, net of income taxes (b) |
|
|
9,278 |
|
|
|
— |
|
|
|
9,277 |
|
|
|
— |
|
Impairment expense, net of income taxes (b) |
|
|
2,943 |
|
|
|
— |
|
|
|
2,943 |
|
|
|
— |
|
Adjusted net income |
|
$ |
4,118 |
|
|
$ |
8,316 |
|
|
$ |
608 |
|
|
$ |
14,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted diluted earnings per share (c) |
|
$ |
0.16 |
|
|
$ |
0.32 |
|
|
$ |
0.02 |
|
|
$ |
0.54 |
|
(a) Adjusted operating margin is computed by dividing adjusted income from operations by total operating revenues for each of the periods indicated.
(b) For both the thirteen and twenty-six week periods ended July 4, 2026, the Company utilized an effective tax rate of 24.3%.
(c) Adjusted diluted earnings per share is computed by dividing adjusted net income by the weighted average number of diluted common shares outstanding for each of the periods indicated.
|
|
Thirteen Weeks Ended |
|
|
Twenty-six Weeks Ended |
|
||||||||||
|
July 4, |
|
|
June 28, |
|
July 4, |
|
|
June 28, |
|
||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||||
|
|
( in thousands, except percentages) |
|
|
( in thousands, except percentages) |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
26,186 |
|
|
$ |
8,316 |
|
|
$ |
22,675 |
|
|
$ |
14,330 |
|
Income tax expense |
|
|
8,389 |
|
|
|
2,874 |
|
|
|
7,266 |
|
|
|
4,895 |
|
Interest expense, net |
|
|
10,560 |
|
|
|
8,852 |
|
|
|
20,266 |
|
|
|
17,075 |
|
Depreciation |
|
|
30,359 |
|
|
|
30,596 |
|
|
|
63,164 |
|
|
|
60,585 |
|
Amortization |
|
|
2,825 |
|
|
|
5,607 |
|
|
|
5,663 |
|
|
|
11,106 |
|
EBITDA |
|
|
78,319 |
|
|
|
56,245 |
|
|
|
119,034 |
|
|
|
107,991 |
|
(Gain) on Kearny sale |
|
|
(45,274 |
) |
|
|
— |
|
|
|
(45,274 |
) |
|
|
— |
|
Legal charges |
|
|
12,250 |
|
|
|
— |
|
|
|
12,250 |
|
|
|
— |
|
Impairment expense |
|
|
3,886 |
|
|
|
— |
|
|
|
3,886 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
49,181 |
|
|
$ |
56,245 |
|
|
$ |
89,896 |
|
|
$ |
107,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA margin (d) |
|
|
13.0 |
% |
|
|
14.3 |
% |
|
|
12.0 |
% |
|
|
13.9 |
% |
(d) Adjusted EBITDA margin is computed by dividing adjusted EBITDA by total operating revenues for each of the periods indicated.
We present adjusted income from operations, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and adjusted EBITDA margin because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
Adjusted income from operations, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA have limitations as an analytical tool. Some of these limitations are:
• Adjusted income from operations, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
• Adjusted income from operations, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
• Adjusted income from operations, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; and
• Other companies in our industry may calculate adjusted income from operations, adjusted net income and adjusted diluted earnings per share, and adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, adjusted income from operations, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and adjusted EBITDA margin should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and only supplementally on adjusted income from operations, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and adjusted EBITDA margin.