What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-05-13 compared with 2020-11-12 · 102 added, 176 removed, 401 unchanged (41% of the section changed)

11 unchanged sentences

Due from affiliates

Prepaid income taxes

Total current assets

8 unchanged sentences

Current portion of long-term debt

Insurance and claims

Accrued expenses and other current liabilities

Current portion of operating lease liabilities

Accrued expenses and other current liabilities

Insurance and claims

Due to affiliates

Income taxes payable

Total current liabilities

13 unchanged sentences

Treasury stock, at cost;

4,060,997 and 3,688,222 shares, respectively

4,067,247 shares

Retained earnings

9 unchanged sentences

Thirteen Weeks Ended

Thirty-nine Weeks Ended

September 28,

Operating revenues:

15 unchanged sentences

Total operating expenses

Income (loss) from operations

Income from operations

Interest income

1 unchanged sentence

Other non-operating income (expense)

Income (loss) before income taxes

Provision for income taxes

Net income (loss)

Income before income taxes

Income tax expense

Earnings per common share:

6 unchanged sentences

Thirteen Weeks Ended

Thirty-nine Weeks Ended

September 28,

Net Income (loss)

Other comprehensive income (loss):

Unrealized changes in fair value of interest rate swaps,

net of income taxes of $ 14 , $( 34 ), $( 132 ) and $( 155 ),

Unrealized changes in fair value of interest rate swaps, net of income taxes of

$ 33 and $( 135 ), respectively

Foreign currency translation adjustments

Total other comprehensive income (loss)

Total comprehensive income (loss)

Total comprehensive income

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(In thousands)

Thirty-nine Weeks Ended

September 28,

Thirteen Weeks Ended

Cash flows from operating activities:

3 unchanged sentences

Loss (gain) on marketable equity securities

Loss (gain) on disposal of property and equipment

Gain on disposal of property and equipment

Amortization of debt issuance costs

16 unchanged sentences

Proceeds from sale of marketable securities

Acquisition of business

Net cash used in investing activities

6 unchanged sentences

Repayments under margin account

Capitalized financing costs

Dividends paid

Purchases of treasury stock

Net cash used in financing activities

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

2 unchanged sentences

Cash and cash equivalents – end of period

See accompanying notes to consolidated financial statements.

UNIVERSAL LOGISTICS HOLDINGS , INC.

Unaudited Consolidated Statements of Cash Flows - Continued

(In thousands)

Thirty-nine Weeks Ended

September 28,

Supplemental cash flow information:

1 unchanged sentence

Cash paid for income taxes

Acquisition of business:

Fair value of assets acquired

Liabilities assumed

Payment of acquisition obligations

Net cash paid for acquisition of business

See accompanying notes to consolidated financial statements.

8 unchanged sentences

Stock based compensation

Balances - March 30, 2019

Comprehensive (loss)

Dividends paid ($ 0.105 per share)

Balances – June 29, 2019

Comprehensive income

Dividends paid ($ 0.105 per share)

Dividends payable ($ 0.105 per share)

Purchases of treasury stock

Balances – September 28, 2019

Balances – April 4, 2020

Balances – December 31, 2020

Comprehensive (loss)

Comprehensive income

Dividends paid ($0.105 per share)

Stock based compensation

Purchases of treasury stock

Balances – April 3, 2021

Comprehensive income

Purchases of treasury stock

Balances – July 4, 2020

Comprehensive (loss)

Balances – October 3, 2020

See accompanying notes to consolidated financial statements.

14 unchanged sentences

We will continue to adapt our operations as required to ensure safety while continuing to provide a high level of service to our customers.

To mitigate the impact to our business, we implemented numerous cost reduction efforts beginning in the second quarter including furloughing a portion of the direct labor force, requiring employees to take unpaid time-off, restricting travel, reducing discretionary spending, and various other measures.

Also during the second quarter we began taking advantage of the cash deferral programs available for payment of employer social security taxes and federal and state income taxes under the Coronavirus Aid, Relief, and Economic Security Act (“CARES” Act).

The Company makes estimates and assumptions that affect reported amounts and disclosures included in its financial statements and accompanying notes and assesses certain accounting matters that require consideration of forecasted financial information.

11 unchanged sentences

The Company has evaluated the new guidance and does not expect it to have a material impact on its financial condition, results of operations, or cash flows.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740):

“Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.

The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities.

This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that reporting period;

however, early adoption is permitted.

We are currently evaluating the impact of this standard on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 (“ASU 2016-13”), Accounting for Credit Losses (Topic 326).

1 unchanged sentence

The standard also amends the impairment model for available-for-sale debt securities and requires estimated credit losses to be recorded as allowances instead of reductions to amortized cost of the securities.

The new standard will become effective for us beginning with the first quarter 2023, and is not expected to have a material impact on our consolidated financial statements.

The new standard will become effective for us beginning with the first quarter 2023.

The Company is evaluating the new guidance, but does not expect it to have a material impact on our consolidated financial statements.

UNIVERSAL LOGISTICS HOLDINGS, INC.

46 unchanged sentences

Net unrealized gains (losses)

The following table shows the Company’s net realized gains (loss) on marketable equity securities (in thousands):

The following table shows the Company’s net realized gains on marketable equity securities (in thousands):

Thirteen weeks ended

Thirty-nine weeks ended

September 28,

Realized gain:

3 unchanged sentences

Realized gain, net of taxes

During the thirteen-week and thirty-nine week periods ended October 3, 2020, our marketable equity securities portfolio experienced a net unrealized pre-tax (loss) in market value of approximately $( 497,000 ) and $( 3,031,000 ), respectively, which was reported in other non-operating income (expense) for the period.

During the thirteen-week and thirty-nine week periods ended September 28, 2019, our marketable equity securities portfolio experienced a net unrealized pre-tax gain in market value of approximately $ 21,000 and $ 735,000 , respectively, which was reported in other non-operating income (expense) for the period.

The Company did no t sell marketable equity securities during the thirteen-week period April 4, 2020.

During the thirteen-week periods ended April 3, 2021 and April 4, 2020, our marketable equity securities portfolio experienced a net unrealized pre-tax gain (loss) in market value of approximately $ 974,000 and $( 3,400,000 ), respectively, which was reported in other non-operating income (expense) for the period.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

The changes in the carrying amount of goodwill during the thirty-nine weeks ended October 3, 2020 are as follows:

Balance as of January 1, 2020

Purchase accounting adjustments

Balance as of October 3, 2020

During the thirty-nine weeks ended October 3, 2020, the Company made purchase accounting adjustments to the preliminary purchase price allocations of the Company’s April 22, 2019 acquisition of Michael’s Cartage and November 5, 2019 acquisition of Roadrunner Intermodal Services, Inc.

The adjustments resulted in increases of $ 2.3 million in goodwill and $ 1.3 million in intangible assets, as well as decreases of $ 3.3 million in property and equipment, $ 1.5 million in other assets, $ 2.3 million in current liabilities, and $ 0.2 million in deferred tax liabilities.

At October 3, 2020 and December 31, 2019, $ 114.4 million and $ 112.2 million of goodwill was recorded in our transportation segment, respectively.

At both October 3, 2020 and December 31, 2019, $ 56.3 million of goodwill was recorded in our logistics segment.

During the third quarter we performed our annual goodwill impairment test using a quantitative assessment and found there to be no impairment of goodwill.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities are comprised of the following (in thousands):

Payroll related items

Accrued payroll

Accrued payroll taxes

Driver escrow liabilities

Legal settlements and claims

Commissions, taxes and other

Legal settlements

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

Debt is comprised of the following (in thousands):

Interest Rates

at October 3, 2020

at April 3, 2021

Outstanding Debt:

12 unchanged sentences

Borrowings under the revolving credit facility may be made until and mature on November 26, 2023 .

Borrowings under the Credit Agreement bear interest at LIBOR or a base rate plus an applicable margin for each based the Company’s leverage ratio.

Borrowings under the Credit Agreement bear interest at LIBOR or a base rate, plus an applicable margin for each based on the Company’s leverage ratio.

The Credit Agreement is secured by a first priority pledge of the capital stock of applicable subsidiaries, as well as first priority perfected security interest in cash, deposits, accounts receivable, and selected other assets of the applicable borrowers.

The Credit Agreement includes customary affirmative and negative covenants and events of default, as well as financial covenants requiring minimum fixed charge coverage and leverage ratios, and customary mandatory prepayments provisions.

At October 3, 2020, we were in compliance with all covenants under the facility, and $ 50.2 million was available for borrowing on the revolver .

At April 3, 2021, we were in compliance with all covenants under the facility, and $ 67.5 million was available for borrowing on the revolver .

(2) Our Equipment Financing consists of a series of promissory notes issued by a wholly owned subsidiary.

3 unchanged sentences

Each of the notes bears interest at a variable rate ranging from LIBOR plus 1.85 % to LIBOR plus 2.25 % .

At October 3, 2020, we were in compliance with all covenants.

At April 3, 2021, we were in compliance with all covenants.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

Debt – continued

(4) Our Margin Facility is a short-term line of credit secured by our portfolio of marketable securities.

1 unchanged sentence

The amount available under the line of credit is based on a percentage of the market value of the underlying securities.

At October 3, 2020, the maximum available borrowings under the line of credit were $ 4.7 million.

At April 3, 2021, the maximum available borrowings under the line of credit were $ 4.2 million.

The Company is also party to two interest rate swap agreements that qualify for hedge accounting.

The Company executed the swap agreements to fix a portion of the interest rates on its variable rate debt that have a combined notional amount of $ 13.7 million at October 3, 2020.

The Company executed the swap agreements to fix a portion of the interest rates on its variable rate debt that have a combined notional amount of $ 12.6 million at April 3, 2021.

Under the swap agreements, the Company receives interest at the one-month LIBOR rate plus 2.25 % and pays a fixed rate.

1 unchanged sentence

The second swap became effective in October 2016 , has a rate of 3.83 % (amortizing notional amount of $ 2.6 million) and expires in May 2022 .

At October 3, 2020, the fair value of the swap agreements was a liability of $ 0.7 million.

At April 3, 2021, the fair value of the swap agreements was a liability of $ 0.5 million.

Since these swap agreements qualify for hedge accounting, the changes in fair value are recorded in other comprehensive income (loss), net of tax.

See Note 7 for additional information pertaining to interest rate swaps.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

Fair Value Measurements and Disclosures

13 unchanged sentences

Interest rate swaps

Cash equivalents

Marketable securities

Interest rate swaps

Total liabilities

UNIVERSAL LOGISTICS HOLDINGS, INC.

1 unchanged sentence

Fair Value Measurements and Disclosures – continued

Cash equivalents

Marketable securities

Interest rate swaps

Total liabilities

The valuation techniques used to measure fair value for the items in the tables above are as follows:

10 unchanged sentences

We categorize these borrowings as Level 2 in the fair value hierarchy.

The carrying value and estimated fair value of these promissory notes at October 3, 2020 is summarized as follows:

The carrying value and estimated fair value of these promissory notes at April 3, 2021 is summarized as follows:

Carrying Value

2 unchanged sentences

We have not elected the fair value option for any of our financial instruments.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

On January 1, 2019, we adopted ASU 2016-02, Leases , which required us to recognize a right-of-use asset and a corresponding lease liability on our balance sheet for most leases classified as operating leases under previous guidance.

1 unchanged sentence

We recognize a right-of-use asset and a lease liability on the effective date of a lease agreement.

As of October 3, 2020, our obligations under operating lease arrangements primarily related to the rental of office space, warehouses, freight distribution centers, terminal yards and equipment.

As of April 3, 2021, our obligations under operating lease arrangements primarily related to the rental of office space, warehouses, freight distribution centers, terminal yards and equipment .

Our lease obligations typically do not include options to purchase the leased property, nor do they contain residual value guarantees or material restrictive covenants.

Options to extend or terminate an agreement are included in the lease term when it becomes reasonably certain the option will be exercised.

As of October 3, 2020, we were not reasonably certain of exercising any renewal or termination options, and as such, no adjustments were made to the right-of-use lease assets or corresponding liabilities.

As of April 3, 2021, we were not reasonably certain of exercising any renewal or termination options, and as such, no adjustments were made to the right-of-use lease assets or corresponding liabilities.

We did not separate lease and nonlease components of contracts for purposes of determining the right-of use lease asset and corresponding liability.

4 unchanged sentences

Lease expense for short-term and long-term operating leases is recognized on a straight-line basis over the lease term.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

Leases – continued

The following table summarizes our lease costs for the thirteen weeks and thirty-nine weeks ended October 3, 2020 and September 28, 2019, and related information (in thousands):

Thirteen weeks ended October 3, 2020

With Affiliates

Operating lease cost

Short-term lease cost

Variable lease cost

Sublease income

Total lease cost

Thirteen weeks ended September 28, 2019

With Affiliates

Operating lease cost

Short-term lease cost

Variable lease cost

Sublease income

Total lease cost

Thirty-nine weeks ended October 3, 2020

With Affiliates

The following table summarizes our lease costs for the thirteen week periods ended April 3, 2021 and April 4, 2020 (in thousands):

April 3, 2021

Operating lease cost

3 unchanged sentences

Total lease cost

Thirty-nine weeks ended September 28, 2019

With Affiliates

April 4, 2020

Operating lease cost

6 unchanged sentences

Leases – continued

The following table summarizes other lease related information as of and for the thirty-nine week period ended October 3, 2020 and September 28, 2019 (in thousands):

October 3, 2020

With Affiliates

The following table summarizes other lease related information as of and for the thirteen week periods ended April 3, 2021 and April 4, 2020 (in thousands):

April 3, 2021

Other information

Cash paid for amounts included in the measurement of operating

Right-of-use asset change due to lease termination

Cash paid for amounts included in the measurement of

operating leases

Future right-of-use asset change due to lease signed with a future

commencement date

Right-of-use assets obtained in exchange for new operating

2 unchanged sentences

Weighted-average discount rate

September 28, 2019

With Affiliates

April 4, 2020

Other information

Cash paid for amounts included in the measurement of operating

Cash paid for amounts included in the measurement of

operating leases

Right-of-use asset change due to lease termination

Right-of-use assets obtained in exchange for new operating lease

Right-of-use assets obtained in exchange for new operating

lease liabilities

Weighted-average remaining lease term (in years)

Weighted-average discount rate

Future minimum lease payments under operating leases as of October 3, 2020, are as follows (in thousands):

Future minimum lease payments under operating leases as of April 3, 2021, are as follows (in thousands):

With Affiliates

5 unchanged sentences

Transactions with Affiliates

(“CenTra”), an affiliate of the Company that is owned by our controlling shareholders, provides administrative support services to Universal in the ordinary course of business, including legal, human resources, tax, IT infrastructure and other requested services.

The cost of these services is based on the actual or estimated utilization of the specific service.

Universal also purchases other services from affiliates controlled by CenTra.

Following is a schedule of costs incurred and included in operating expenses for services provided by affiliates for the thirteen weeks and thirty-nine weeks ended October 3, 2020 and September 28, 2019, respectively (in thousands):

Following is a schedule of costs incurred and included in operating expenses for services provided by affiliates for the thirteen weeks ended April 3, 2021 and April 4, 2020 (in thousands):

Thirteen weeks ended

Thirty-nine weeks ended

September 28,

Administrative support services

14 unchanged sentences

Other services from affiliates, including contracted transportation services, are delivered to us on a per-transaction basis or pursuant to separate contractual arrangements provided in the ordinary course of business.

At October 3, 2020 and December 31, 2019, amounts due to affiliates were $ 16.1 million and $ 14.8 million, respectively.

At April 3, 2021 and December 31, 2020, amounts due to affiliates were $ 17.3 million and $ 17.1 million, respectively.

In our Consolidated Balance Sheets, we record our insured claims liability and the related recovery from an affiliate insurance provider in insurance and claims, and other receivables.

At October 3, 2020 and December 31, 2019, there were $ 12.5 million and $ 9.9 million, respectively, included in each of these accounts for insured claims.

We purchased wheels and tires from an affiliate during the thirty-nine weeks ended October 3, 2020 totaling $ 618,000 .

There were no such purchases made during the thirty-nine weeks ended September 28, 2019.

At April 3, 2021 and December 31, 2020, there were $ 15.1 million and $ 13.3 million, respectively, included in each of these accounts for insured claims.

Services provided by Universal to Affiliates

We periodically assist our affiliates by providing selected transportation and logistics services in connection with their specific customer contracts or purchase orders.

Following is a schedule of services provided to affiliates for the thirteen weeks and thirty-nine weeks ended October 3, 2020 and September 28, 2019 (in thousands):

Following is a schedule of services provided to affiliates for the thirteen weeks ended April 3, 2021 and April 4, 2020 (in thousands):

Thirteen weeks ended

Thirty-nine weeks ended

September 28,

Purchased transportation and equipment rent

At October 3, 2020 and December 31, 2019, amounts due from affiliates were $ 1.5 million and $ 1.7 million, respectively

At April 3, 2021 and December 31, 2020, amounts due from affiliates were $ 1.3 million and $ 1.2 million, respectively.

UNIVERSAL LOGISTICS HOLDINGS, INC.

11 unchanged sentences

The shares will vest in installments of 20,000 shares on January 10, 2024 and January 10, 2026, and installments of 10,000 shares on January 10, 2027 and January 10, 2028, subject to his continued employment with the Company.

On February 20, 2019, the Company granted 44,500 shares of restricted stock to certain of its employees, including 12,000 shares to our then Chief Executive Officer and 10,000 shares to our Chief Financial Officer.

On February 20, 2019, the Company granted 44,500 shares of restricted stock to certain of its employees, including 10,000 shares to our Chief Financial Officer.

The restricted stock awards have a grant date fair value of $ 23.56 per share, based on the closing price of the Company’s stock, and any non-vested shares under the awards will vest in four equal increments on each February 20 in 2020, 2021, 2022 and 2023.

The non-vested shares granted to our former Chief Executive Officer on February 20, 2019 were forfeited upon his separation from service with the Company on January 10, 2020.

A grantee’s vesting of restricted stock awards may be accelerated under certain conditions, including retirement.

3 unchanged sentences

Non-vested at January 1, 2021

Balance at June October 3, 2020

In the thirty-nine week periods ended October 3, 2020 and September 28, 2019, the total grant date fair value of vested shares recognized as compensation costs was $ 0.2 million and $ 0.1 million, respectively.

As of October 3, 2020, there was approximately $ 1.7 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements.

Balance at April 3, 2021

In each of the thirteen-week periods ended April 3, 2021 and April 4, 2020, the total grant date fair value of vested shares recognized as compensation costs was $ 0.2 million.

As of April 3, 2021, there was approximately $ 1.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements.

That cost is expected to be recognized on a straight-line basis over the remaining vesting period.

3 unchanged sentences

Diluted earnings per common share include dilutive common stock equivalents determined by the treasury stock method.

For the thirteen weeks ended October 3, 2020, there were 2,957 weighted average non-vested shares of restricted stock in the denominator for the calculation of diluted earnings per share.

For the thirty-nine weeks ended October 3, 2020, no shares of non-vested restricted stock were included in the denominator for the calculation of diluted earnings per share.

For the thirteen weeks and thirty-nine weeks ended September 28, 2019, there were 943 and 917 weighted average non-vested shares of restricted stock, respectively, in the denominator for the calculation of diluted earnings per share

In the thirteen weeks and thirty-nine weeks ended October 3, 2020, we excluded 20,625 and 85,625 shares of non-vested restricted stock from the calculation of diluted earnings per share because such shares were anti-dilutive.

In each of the thirteen weeks and thirty-nine weeks ended September 28, 2019, we excluded 44,500 shares from the calculation of diluted earnings per share because such shares were anti-dilutive.

For the thirteen weeks ended April 3, 2021 and April 4, 2020, we included 14,613 and 0 weighted average non-vested shares of restricted stock, respectively, in the denominator for the calculation of diluted earnings per share.

For the thirteen weeks ended April 3, 2021 and April 4, 2020, we excluded 0 and 85,625 shares of non-vested restricted stock, respectively, from the calculation of diluted earnings per share because such shares were anti-dilutive.

On February 4, 2021 , our Board of Directors declared a cash dividend of $ 0.105 per share of common stock, payable on April 5, 2021 to shareholders of record at the close of business on March 1, 2021 .

Declaration of future cash dividends is subject to final determination by the Board of Directors each quarter after its review of our financial condition, results of operations, capital requirements, any legal or contractual restrictions on the payment of dividends and other factors the Board of Directors deems relevant.

UNIVERSAL LOGISTICS HOLDINGS, INC.

1 unchanged sentence

Segment Reporting

We report our financial results in two reportable segments, the transportation segment and the logistics segment, based on the nature of the underlying customer commitment and the types of investments required to support these commitments.

In December 2020, we changed the way we aggregate our business units and adopted a new segment reporting structure.

As part of the new structure, we separated our previous transportation segment into three reportable segments:

trucking, intermodal, and company-managed brokerage.

In addition, we changed the name of our previous logistics segment to contract logistics.

As a result, we now report our financial results in four distinct reportable segments:

contract logistics, intermodal, trucking, and company-managed brokerage, which are based primarily on the services each segment provides.

This presentation reflects the manner in which management evaluates our operating segments, including an evaluation of economic characteristics and applicable aggregation criteria.

Operations aggregated in our transportation segment are associated with individual freight shipments coordinated by our agents, company-managed terminals and specialized services operations.

In contrast, operations aggregated in our logistics segment deliver value-added services or transportation services to specific customers on a dedicated basis, generally pursuant to contract terms of one year or longer.

Other non-reportable operating segments are comprised of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing.

The following tables summarize information about our reportable segments as of and for the thirteen week and thirty-nine week periods ended October 3, 2020 and September 28, 2019 (in thousands):

Thirteen weeks ended October 3, 2020

Transportation

Operating revenues

Eliminated inter-segment revenues

Income from operations

Thirteen weeks ended September 28, 2019

Transportation

Operating revenues

Eliminated inter-segment revenues

Income from operations

Thirty-nine weeks ended October 3, 2020

Transportation

Operating revenues

Eliminated inter-segment revenues

Income from operations

Thirty-nine weeks ended September 28, 2019

Transportation

Operations aggregated in our contract logistics segment deliver value-added and/or dedicated transportation services to support in-bound logistics to original equipment manufacturers (OEMs) and major retailers on a contractual basis, generally pursuant to terms of one year or longer.

Our intermodal segment is associated with local and regional drayage moves coordinated by company-managed terminals using a mix of owner-operators, company equipment and third-party capacity providers (broker carriers).

Operations aggregated in our trucking segment are associated with individual freight shipments coordinated by our agents and company-managed terminals using a mix of owner-operators, company equipment and broker carriers.

Our company-managed brokerage segment provides for the pick-up and delivery of individual freight shipments using broker carriers, coordinated by our company-managed operations.

Other non-reportable segments are comprised of the Company’s subsidiaries that provide support services to other subsidiaries.

Separate balance sheets are not prepared by segment, and we do not provide asset information by segment to the chief operating decision maker.

The following tables summarize information about our reportable segments for the thirteen week period ended April 3, 2021 and April 4, 2020 (in thousands):

Operating Revenues

Thirteen weeks ended

Contract logistics

Company-managed brokerage

Total operating revenues

Eliminated Inter-segment Revenues

Thirteen weeks ended

Contract logistics

Company-managed brokerage

Total eliminated inter-segment revenues

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

Segment Reporting - continued

Income from Operations

Thirteen weeks ended

Contract logistics

Company-managed brokerage

Total income from operations

Commitments and Contingencies

4 unchanged sentences

However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.

At October 3, 2020, approximately 32 % of our employees in the United States, Canada and Colombia, and 87 % of our employees in Mexico were subject to collective bargaining agreements that are renegotiated periodically, none of which are subject to contracts that expire in 2020.

UNIVERSAL LOGISTICS HOLDINGS, INC.

Notes to Unaudited Consolidated Financial Statements - Continued

At April 3, 2021, approximately 35 % of our employees in the United States, Canada and Colombia, and approximately 86 % of our employees in Mexico were subject to collective bargaining agreements that are renegotiated periodically, 40 % of which are subject to contracts that expire in 2021.

Subsequent Events

Our Board of Directors reinstated Universal’s cash dividend policy, and on October 29, 2020 , declared a cash dividend of $ 0.105 per share of common stock.

The dividend is payable to shareholders of record at the close of business on December 7, 2020 and is expected to be paid on January 4, 2021 .

On April 29, 2021 , our Board of Directors declared the regular quarterly cash dividend of $ 0.105 per share of common stock, payable to shareholders of record at the close of business on June 7, 2021 and is expected to be paid on July 6, 2021 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements