Universal Logistics Holdings, Inc. (NASDAQ:ULH) Files An 8-K Other Events
Item 8.01 Other Events.
As previously disclosed, a predecessor to a subsidiary of Universal Logistics Holdings, Inc. (the “Company”) has been a party to a legal proceeding captioned Denton v. UACL, et al. (the “Denton Litigation”). The Company resolved the Denton Litigation on September 24, 2019 (the “Final Denton Settlement”). Under the terms of the Final Denton Settlement, the Company has agreed to pay plaintiffs $36 million in cash, exclusive of amounts previously paid, based on an opinion issued by the Appellate Court of Illinois First Judicial District on September 24, 2019 affirming the trial court judgment. In connection with the matter, the Company had previously recorded an accrued liability of $18.2 million, net of insurance coverage and before advances made to plaintiffs. In September 2018, the Company paid plaintiffs $7.0 million in order to stay enforcement of the trial court judgment. Because of this payment, the Company recorded this amount as a reduction of its accrued liability. After the September 2018 payment and before entering into the Final Denton Settlement, the Company’s accrued liability was $11.2 million. In connection with the Final Denton Settlement, the Company expects to record in the third quarter of 2019 an additional pre-tax charge to net income of $24.8 million, and the Company expects to use its available cash and borrowings under its revolving credit facility to fund the cash payment. The Company’s participation in the Final Denton Settlement does not constitute an admission by the Company of any fault or liability, and the Company does not admit any fault or liability.
About Universal Logistics Holdings, Inc. (NASDAQ:ULH)
Universal Logistics Holdings, Inc., formerly Universal Truckload Services, Inc., is an asset-light provider of transportation and logistics solutions across the United States, Mexico, Canada and Colombia. The Company operates through two segments: the transportation segment and the logistics segment. The Company’s operations aggregated in the transportation segment are associated with individual freight shipments coordinated by its agents, company-managed terminals and specialized services operations. The Company’s operations aggregated in the logistics segment delivers value-added services and transportation services to specific customers, pursuant to contract terms of approximately one year or longer. Other operating segments consist of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing. The Company owns approximately 20 terminal yards and other properties.