UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-Q





(Mark One)

|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended September 27, 2008

or



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to
.

Commission File Number: 0-120510





UNIVERSAL TRUCKLOAD SERVICES, INC.

(Exact Name of Registrant as Specified in
Its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Michigan                                                       |  | 38-3640097                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

12755 E. Nine Mile Road

Warren, Michigan 48089

(Address, including Zip Code of Principal Executive
Offices)

(586) 920-0100

(Registrants telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ̈

Indicate by check mark whether the registrant is
a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule
12b-2 of the Exchange Act.



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  | x
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  |  ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x

The number of shares of the registrants common stock, no par value, outstanding as of October 27, 2008, was 16,033,183.









---

PART I  FINANCIAL INFORMATION



|ITEM 1: | FINANCIAL STATEMENTS
|------- | --------------------

UNIVERSAL TRUCKLOAD
SERVICES, INC.

Consolidated Balance Sheets

September 27, 2008 and December 31, 2007

(In thousands, except share data)



|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------ | ------- | - | ----------------- | - | ------- | -
|                                                                                                                                                                                           |  | September 27, 2008 |         |   | December 31, 2007 |  
|                                                                                                                                                                                           |  | (Unaudited)        |         |   |                   |  
|Assets                                                                                                                                                                                     |  |                    |         |   |                   |   |         |  
|Current assets:                                                                                                                                                                            |  |                    |         |   |                   |   |         |  
|Cash and cash equivalents                                                                                                                                                                  |  | $                  | 5,768   |   |                   | $ | 5,416   |  
|Marketable securities                                                                                                                                                                      |  |                    | 13,074  |   |                   |   | 17,961  |  
|Accounts receivable  net of allowance for doubtful accounts of $4,388 and $3,874, respectively                                                                                            |  |                    | 103,493 |   |                   |   | 86,626  |  
|Due from CenTra and affiliates                                                                                                                                                             |  |                    |        |   |                   |   | 44      |  
|Prepaid income taxes                                                                                                                                                                       |  |                    | 1,428   |   |                   |   | 239     |  
|Prepaid expenses and other                                                                                                                                                                 |  |                    | 5,002   |   |                   |   | 4,768   |  
|Deferred income taxes                                                                                                                                                                      |  |                    | 4,233   |   |                   |   | 3,197   |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total current assets                                                                                                                                                                       |  |                    | 132,998 |   |                   |   | 118,251 |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Property and equipment                                                                                                                                                                     |  |                    | 83,231  |   |                   |   | 77,588  |  
|Less accumulated depreciation                                                                                                                                                              |  |                    | (24,447 | ) |                   |   | (20,439 | )
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Property and equipment  net                                                                                                                                                               |  |                    | 58,784  |   |                   |   | 57,149  |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Goodwill                                                                                                                                                                                   |  |                    | 11,826  |   |                   |   | 11,031  |  
|Intangible assets  net of accumulated amortization of $8,483 and $6,165, respectively                                                                                                     |  |                    | 17,459  |   |                   |   | 17,121  |  
|Other assets                                                                                                                                                                               |  |                    | 3,399   |   |                   |   | 3,636   |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total assets                                                                                                                                                                               |  | $                  | 224,466 |   |                   | $ | 207,188 |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Liabilities and Shareholders Equity                                                                                                                                                       |  |                    |         |   |                   |   |         |  
|Current liabilities:                                                                                                                                                                       |  |                    |         |   |                   |   |         |  
|Accounts payable                                                                                                                                                                           |  | $                  | 34,429  |   |                   | $ | 29,975  |  
|Accrued expenses and other current liabilities                                                                                                                                             |  |                    | 18,454  |   |                   |   | 18,468  |  
|Due to CenTra and affiliates                                                                                                                                                               |  |                    | 57      |   |                   |   |        |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total current liabilities                                                                                                                                                                  |  |                    | 52,940  |   |                   |   | 48,443  |  
|Long-term liabilities:                                                                                                                                                                     |  |                    |         |   |                   |   |         |  
|Long-term debt                                                                                                                                                                             |  |                    | 820     |   |                   |   | 910     |  
|Deferred income taxes                                                                                                                                                                      |  |                    | 5,350   |   |                   |   | 5,146   |  
|Other long-term liabilities                                                                                                                                                                |  |                    | 1,455   |   |                   |   | 1,247   |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total long-term liabilities                                                                                                                                                                |  |                    | 7,625   |   |                   |   | 7,303   |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Shareholders equity:                                                                                                                                                                      |  |                    |         |   |                   |   |         |  
|Common stock, no par value. Authorized 40,000,000 shares; 16,122,483 shares issued; 16,088,183 and 16,093,283 shares outstanding at
September 27, 2008 and December 31, 2007, respectively |  |                    | 16,122  |   |                   |   | 16,122  |  
|Paid-in capital                                                                                                                                                                            |  |                    | 79,914  |   |                   |   | 79,914  |  
|Treasury Stock, at cost; 34,300 and 29,200 shares at September 27, 2008 and December 31, 2007, respectively                                                                                |  |                    | (565    | ) |                   |   | (480    | )
|Retained earnings                                                                                                                                                                          |  |                    | 68,265  |   |                   |   | 56,012  |  
|Accumulated other comprehensive income (loss)                                                                                                                                              |  |                    | 165     |   |                   |   | (126    | )
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total shareholders equity                                                                                                                                                                 |  |                    | 163,901 |   |                   |   | 151,442 |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  
|Total liabilities and shareholders equity                                                                                                                                                 |  | $                  | 224,466 |   |                   | $ | 207,188 |  
|                                                                                                                                                                                           |  |                    |         |   |                   |   |         |  

See accompanying notes to unaudited consolidated financial statements.



2



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Consolidated Statements of Income

September 27, 2008 and
September 29, 2007

(In thousands, except per share data)



|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|---------------------------------------- |  | -------------------- | ------- | - | ----------------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                         |  | Thirteen Weeks Ended |         |   | Thirty-nine Weeks Ended |  
|                                         |  | 2008                 |         |   | 2007                    |   |         | 2008 |  |   | 2007    |  
|Operating revenues:                      |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Truckload                                |  | $                    | 122,053 |   |                         | $ | 101,578 |      |  | $ | 340,288 |   |  | $ | 302,095 |  
|Brokerage                                |  |                      | 60,190  |   |                         |   | 42,783  |      |  |   | 154,113 |   |  |   | 126,851 |  
|Intermodal                               |  |                      | 30,751  |   |                         |   | 27,415  |      |  |   | 88,148  |   |  |   | 79,885  |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Total operating revenues                 |  |                      | 212,994 |   |                         |   | 171,776 |      |  |   | 582,549 |   |  |   | 508,831 |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Operating expenses:                      |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Purchased transportation                 |  |                      | 168,219 |   |                         |   | 130,886 |      |  |   | 455,596 |   |  |   | 388,659 |  
|Commissions expense                      |  |                      | 12,637  |   |                         |   | 11,353  |      |  |   | 35,380  |   |  |   | 33,428  |  
|Other operating expense, net             |  |                      | 2,129   |   |                         |   | 2,248   |      |  |   | 7,006   |   |  |   | 7,611   |  
|Selling, general, and administrative     |  |                      | 13,223  |   |                         |   | 11,881  |      |  |   | 38,755  |   |  |   | 36,355  |  
|Insurance and claims                     |  |                      | 5,453   |   |                         |   | 5,146   |      |  |   | 16,916  |   |  |   | 15,942  |  
|Depreciation and amortization            |  |                      | 2,531   |   |                         |   | 2,027   |      |  |   | 7,122   |   |  |   | 5,965   |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Total operating expenses                 |  |                      | 204,192 |   |                         |   | 163,541 |      |  |   | 560,775 |   |  |   | 487,960 |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Income from operations                   |  |                      | 8,802   |   |                         |   | 8,235   |      |  |   | 21,774  |   |  |   | 20,871  |  
|                                         |  |                      |         |  
|Interest income                          |  |                      | 63      |   |                         |   | 102     |      |  |   | 129     |   |  |   | 269     |  
|                                         |  |                      |         |  
|Interest expense                         |  |                      | (16     | ) |                         |   | (12     | )    |  |   | (63     | ) |  |   | (38     | )
|                                         |  |                      |         |  
|Other non-operating income (expense)     |  |                      | 2       |   |                         |   | 101     |      |  |   | (1,779  | ) |  |   | 291     |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Income before provision for income taxes |  |                      | 8,851   |   |                         |   | 8,426   |      |  |   | 20,061  |   |  |   | 21,393  |  
|                                         |  |                      |         |  
|Provision for income taxes               |  |                      | 3,445   |   |                         |   | 3,295   |      |  |   | 7,808   |   |  |   | 8,361   |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Net income                               |  | $                    | 5,406   |   |                         | $ | 5,131   |      |  | $ | 12,253  |   |  | $ | 13,032  |  
|                                         |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Earnings per common share:               |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Basic                                    |  | $                    | 0.34    |   |                         | $ | 0.32    |      |  | $ | 0.76    |   |  | $ | 0.81    |  
|Diluted                                  |  | $                    | 0.34    |   |                         | $ | 0.32    |      |  | $ | 0.76    |   |  | $ | 0.81    |  
|                                         |  |                      |         |  
|Average common shares outstanding:       |  |                      |         |   |                         |   |         |      |  |   |         |   |  |   |         |  
|Basic                                    |  |                      | 16,088  |   |                         |   | 16,118  |      |  |   | 16,088  |   |  |   | 16,118  |  
|Diluted                                  |  |                      | 16,106  |   |                         |   | 16,118  |      |  |   | 16,088  |   |  |   | 16,118  |  

See accompanying notes to unaudited consolidated financial statements.



3



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Unaudited Consolidated Statements of Cash Flows

Thirty-nine Weeks ended
September 27, 2008 and September 29, 2007

(In thousands)



|                                                                                  |  |      |         |   |      |   |         |  
|--------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|                                                                                  |  | 2008 |         |   | 2007 |  
|Cash flows from operating activities:                                             |  |      |         |   |      |   |         |  
|Net income                                                                        |  | $    | 12,253  |   |      | $ | 13,032  |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |      |         |   |      |   |         |  
|Depreciation and amortization                                                     |  |      | 7,122   |   |      |   | 5,965   |  
|Other-than-temporary impairment of marketable securities                          |  |      | 2,717   |   |      |   |        |  
|Gains on disposal of property and equipment                                       |  |      | (50     | ) |      |   | (51     | )
|Gains on disposal of marketable securities                                        |  |      | (303    | ) |      |   | (19     | )
|Bad debt expense                                                                  |  |      | 1,012   |   |      |   | 1,132   |  
|Deferred income taxes                                                             |  |      | (1,018  | ) |      |   | 1,580   |  
|Change in assets and liabilities:                                                 |  |      |         |   |      |   |         |  
|Accounts receivable and due from CenTra and affiliates                            |  |      | (17,835 | ) |      |   | (6,509  | )
|Prepaid expenses and other                                                        |  |      | (1,186  | ) |      |   | (5,282  | )
|Accounts payable and accrued expenses                                             |  |      | 4,854   |   |      |   | (1,089  | )
|                                                                                  |  |      |         |   |      |   |         |  
|Net cash provided by operating activities                                         |  |      | 7,566   |   |      |   | 8,759   |  
|                                                                                  |  |      |         |   |      |   |         |  
|Cash flows from investing activities:                                             |  |      |         |   |      |   |         |  
|Capital expenditures                                                              |  |      | (5,639  | ) |      |   | (14,216 | )
|Proceeds from the sale of property and equipment                                  |  |      | 366     |   |      |   | 1,260   |  
|Purchases of marketable securities                                                |  |      | (12,480 | ) |      |   | (7,773  | )
|Proceeds from sale of marketable securities                                       |  |      | 15,428  |   |      |   | 12,061  |  
|Payment of earnout obligations related to acquisitions                            |  |      | (551    | ) |      |   | (928    | )
|Acquisition of businesses                                                         |  |      | (4,253  | ) |      |   |        |  
|                                                                                  |  |      |         |   |      |   |         |  
|Net cash used in investing activities                                             |  |      | (7,129  | ) |      |   | (9,596  | )
|                                                                                  |  |      |         |   |      |   |         |  
|Cash flows from financing activities:                                             |  |      |         |   |      |   |         |  
|Purchases of treasury stock                                                       |  |      | (85     | ) |      |   |        |  
|                                                                                  |  |      |         |   |      |   |         |  
|Net cash used in financing activities                                             |  |      | (85     | ) |      |   |        |  
|                                                                                  |  |      |         |   |      |   |         |  
|Net increase (decrease) in cash and cash equivalents                              |  |      | 352     |   |      |   | (837    | )
|Cash and cash equivalents  beginning of period                                   |  |      | 5,416   |   |      |   | 5,008   |  
|                                                                                  |  |      |         |   |      |   |         |  
|Cash and cash equivalents  end of period                                         |  | $    | 5,768   |   |      | $ | 4,171   |  
|                                                                                  |  |      |         |   |      |   |         |  
|Supplemental cash flow information:                                               |  |      |         |   |      |   |         |  
|Cash paid for interest                                                            |  | $    | 63      |   |      | $ | 38      |  
|                                                                                  |  |      |         |   |      |   |         |  
|Cash paid for taxes                                                               |  | $    | 10,107  |   |      | $ | 7,605   |  
|                                                                                  |  |      |         |   |      |   |         |  
|Fair value of assets acquired, including goodwill                                 |  | $    | 4,433   |   |      | $ |        |  
|Payment of acquisition obligations                                                |  |      | 500     |   |      |   |        |  
|Acquisition obligations                                                           |  |      | (680    | ) |      |   |        |  
|                                                                                  |  |      |         |   |      |   |         |  
|Acquisition of businesses                                                         |  | $    | 4,253   |   |      | $ |        |  
|                                                                                  |  |      |         |   |      |   |         |  

See accompanying notes to unaudited consolidated financial statements.



4



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements







|(1) | Basis of Presentation
|--- | ---------------------

Pursuant to the rules and
regulations of the Securities and Exchange Commission, the accompanying consolidated financial statements of Universal Truckload Services, Inc. and its wholly owned subsidiaries, or the Company or UTSI, have been prepared by UTSI, without audit by
an independent registered public accounting firm. In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary to present fairly the information required to be set forth therein.
Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted from these statements pursuant to such rules and regulations
and, accordingly, should be read in conjunction with the consolidated financial statements as of December 31, 2007 and 2006 and for each of the years in the three-year period ended December 31, 2007 in the Companys Form 10-K filed
with the Securities and Exchange Commission. The preparation of the consolidated financial statements requires the use of managements estimates. Actual results could differ from those estimates.

The Companys fiscal year ends on December 31. The Companys fiscal year consists of four quarters, each with thirteen weeks.

Certain reclassifications have been made to the prior financial statements in order for them to conform to the September 27, 2008
presentation.



|(2) | Transactions with CenTra and Affiliates
|--- | ---------------------------------------

Historically, UTSIs former parent, CenTra, Inc., or CenTra, provided management services to UTSI, including legal and human resources. The cost of these services was based on the estimated utilization of specific services and an
annual allocation charge was agreed upon at the beginning of each fiscal year. Management believed the allocation methods were reasonable. However, the costs of these services charged to UTSI were not necessarily indicative of the costs that would
have been incurred if UTSI had internally performed or acquired these services as a separate unaffiliated entity. Beginning in 2008, the Company has agreed to pay CenTra management service fees based on the actual use of services rendered to the
Company. The amounts charged to UTSI for the thirteen and thirty-nine weeks ended September 27, 2008 and September 29, 2007 are presented in the table below.



5



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(2) | Transactions with CenTra and Affiliatescontinued
|--- | -------------------------------------------------



In addition to the management services described above, UTSI purchases other services from CenTra. Following is a schedule of services provided and
amounts paid to CenTra (in thousands):



|                          |  |                      |     |                         |   |                   |  |                   |       |  |   |      
|------------------------- |  | -------------------- | --- | ----------------------- | - | ----------------- |  | ----------------- | ----- |  | - | -----
|                          |  | Thirteen weeks ended |     | Thirty-nine weeks ended
|                          |  | September 27,2008    |     | September 29,2007       |   | September 27,2008 |  | September 29,2007
|Management services       |  | $                    | 79  |                         | $ | 38                |  | $                 | 236   |  | $ | 116  
|Building & terminal rents |  |                      | 239 |                         |   | 126               |  |                   | 671   |  |   | 391  
|Maintenance services      |  |                      | 19  |                         |   | 1                 |  |                   | 19    |  |   | 364  
|Trailer rents             |  |                      |    |                         |   | 5                 |  |                   | 16    |  |   | 25   
|Health insurance          |  |                      | 460 |                         |   | 458               |  |                   | 1,461 |  |   | 1,458
|                          |  |                      |     |                         |   |                   |  |                   |       |  |   |      
|Total                     |  | $                    | 797 |                         | $ | 628               |  | $                 | 2,403 |  | $ | 2,354
|                          |  |                      |     |                         |   |                   |  |                   |       |  |   |      

An affiliate of CenTra charged UTSI $4,221,000 and $3,605,000 for personal liability and property
damage insurance for the thirteen weeks ended September 27, 2008 and September 29, 2007, respectively. Charges for the thirty-nine weeks ended September 27, 2008 and September 29, 2007 were $11,919,000 and $10,837,000,
respectively.

Operating revenues for the thirteen weeks ended September 27, 2008 and September 29, 2007 include approximately
$62,000 and $137,000, respectively, of freight services provided to CenTra. Operating revenues for the thirty-nine weeks ended September 27, 2008 and September 29, 2007 include approximately $200,000 and $352,000, respectively, of freight
services provided to CenTra. Related accounts payable due to CenTra and affiliates were $57,000 as of September 27, 2008, and related accounts receivable due from CenTra and affiliates were $44,000 as of December 31, 2007.

Purchased transportation for the thirteen weeks ended September 27, 2008 and September 29, 2007 includes $1,769,000 and $2,705,000,
respectively, of transportation services provided by CenTra to CrossRoad Carriers. Purchased transportation for the thirty-nine weeks ended September 27, 2008 and September 29, 2007 includes $5,282,000 and $11,107,000, respectively, of
transportation services provided by CenTra to CrossRoad Carriers. Related accounts payable of $213,000 and $465,000 at September 27, 2008 and December 31, 2007, respectively, are included in accounts payable in the accompanying balance
sheet.



6



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(3) | Debt
|--- | ----

Universal Truckload Services, Inc. and
KeyBank National Association, or KeyBank, entered into a loan agreement dated October 29, 2007 for the period October 29, 2007 to October 28, 2008. Under the line of credit with KeyBank, our maximum permitted borrowings and letters of
credit in the aggregate may not exceed $20 million. The line of credit is unsecured, and bears interest at a rate equal to the lesser of the Prime Rate minus 1.75% or LIBOR plus 1.05% (effective rate of 3.25% at September 27, 2008). The
agreement governing our unsecured line of credit contains various financial and restrictive covenants to be maintained by us including requiring us to maintain a tangible net worth of at least $85.0 million, a debt to tangible net worth ratio not to
exceed 1 to 1, and quarterly net profits of at least one dollar. For purposes of this agreement, tangible net worth is defined as total assets, excluding all intangible assets, less total debt. The agreement also may, in certain circumstances, limit
our ability to pay dividends or distributions. The agreement also contains customary representations and warranties, affirmative and negative covenants and events of default. The Company did not have any amounts outstanding under its line of credit
at September 27, 2008 or December 31, 2007, and there were $839,000 and $6,400 letters of credit issued against the line, respectively.

On May 1, 2006, UTS Realty, LLC, or Realty, received a $1,000,000 loan from the County of Cuyahoga, Ohio, which we will refer to as the County for this section, to be used for improvements to its Cleveland, Ohio container storage
facility. The loan agreement requires quarterly interest payments at an annual rate of 5.0%. Through January 31, 2011, subject to certain conditions, the County will forgive $450,000 of the principal amount owed. On January 31, 2007, the
Company began recording the forgiveness as a reduction in the cost of the underlying improvements at a rate of $90,000 per annum. The remaining principal of $550,000 is due at maturity. As of September 27, 2008 and December 31, 2007, the
outstanding balance under the loan was $820,000 and $910,000, respectively. The loan matures on January 31, 2011; however, at Realtys option, the maturity date may be extended until January 31, 2021. In connection with this loan,
Realty and the Company entered into an environmental indemnity agreement with the County and the Company issued a $820,000 standby letter of credit that expires January 15, 2009. Under the terms of the environmental indemnity agreement, Realty
and the Company have agreed to indemnify the County, without limitation, against any loss attributable to the generation, storage, release or presence of Regulated Materials, as defined in the environmental indemnity agreement, at the container
storage facility. In connection with the acquisition of the Cleveland, Ohio property in August 2005, Realty received indemnity from the seller from any and all claims, which Realty may incur as a direct consequence of any environmental condition of
which the seller had actual knowledge as of the date of the acquisition of the property. The Company believes the fair value of this debt approximates the carrying value based on current rates available for similar issues.



7



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(4) | Earnings Per Share
|--- | ------------------

Basic earnings per common share
amounts are based on the weighted average number of common shares outstanding, and diluted earnings per share amounts are based on the weighted average number of common shares outstanding plus the incremental shares that would have been outstanding
upon the assumed exercise of all dilutive stock options.

The following table provides a reconciliation of the number of average common
shares outstanding used to calculate basic earnings per share to the weighted average number of common shares and common share equivalents outstanding used in calculating diluted earnings per share (in thousands):



|                                                                      |  |                      |  |                         |  |                   |  |                  
|--------------------------------------------------------------------- |  | -------------------- |  | ----------------------- |  | ----------------- |  | -----------------
|                                                                      |  | Thirteen Weeks Ended |  | Thirty-nine Weeks Ended
|                                                                      |  | September 27,2008    |  | September 29,2007       |  | September 27,2008 |  | September 29,2007
|Weighted average number of common shares                              |  | 16,088               |  | 16,118                  |  | 16,088            |  | 16,118           
|Incremental shares from assumed exercise of stock options             |  | 18                   |  |                        |  |                  |  |                 
|                                                                      |  |                      |  |                         |  |                   |  |                  
|Weighted average number of common shares and common share equivalents |  | 16,106               |  | 16,118                  |  | 16,088            |  | 16,118           
|                                                                      |  |                      |  |                         |  |                   |  |                  

For the thirty-nine weeks ended September 27, 2008, 190,000 options were outstanding to
purchase shares of common stock, which were excluded from the calculation of diluted earnings per share because such options were anti-dilutive. For both the thirteen and thirty-nine weeks ended September 29, 2007, 250,000 options were
outstanding to purchase shares of common stock, which were excluded from the calculation of diluted earnings per share because such options were anti-dilutive.



|(5) | Stock Based Compensation
|--- | ------------------------

In December 2004,
UTSIs board of directors adopted the 2004 Stock Incentive Plan, or the Plan, which became effective upon completion of the Companys initial public offering. The Plan allows for the issuance of a total of 500,000 shares. The grants may be
made in the form of restricted stock bonuses, restricted stock purchase rights, stock options, phantom stock units, restricted stock units, performance share bonuses, performance share units or stock appreciation rights. On February 11, 2005,
UTSI granted 260,000 options to certain of its employees. The stock options granted vested immediately, have a life of seven years and have an exercise price of $22.50 per share. Prior to January 1, 2006, the Company accounted for stock options
issued under the Plan pursuant to the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. No stock-based employee compensation was reflected in net
income prior to fiscal year 2006, as all options granted under the Plan had an exercise price equal to the fair market value of the underlying common stock on the date of grant. The intrinsic value of all outstanding options as of September 27,
2008 and September 29, 2007 was $378,000 and $0, respectively.



8



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(5) | Stock Based Compensationcontinued
|--- | ----------------------------------



The following table summarizes the stock option activity and related information for the period indicated:



|                              |  |         |  |                              |      
|----------------------------- |  | ------- |  | ---------------------------- | -----
|                              |  | Options |  | WeightedAverageExercisePrice
|Balance at January 1, 2008    |  | 245,017 |  | $                            | 22.50
|Granted                       |  |        |  |                              |     
|Exercised                     |  |        |  |                              |     
|Expired                       |  |        |  |                              |     
|Forfeited                     |  | 55,017  |  | $                            | 22.50
|                              |  |         |  |                              |      
|Balance at September 27, 2008 |  | 190,000 |  | $                            | 22.50
|                              |  |         |  |                              |      
|Exercisable                   |  | 190,000 |  | $                            | 22.50
|                              |  |         |  |                              |      



|(6) | Comprehensive Income
|--- | --------------------

Comprehensive income includes
the following (in thousands):



|                                                                                                                 |                   |                      |                   |  |                         |                   |   |  |                   |        |   |  |   |       
|---------------------------------------------------------------------------------------------------------------- | ----------------- | -------------------- | ----------------- |  | ----------------------- | ----------------- | - |  | ----------------- | ------ | - |  | - | ------
|                                                                                                                 |                   | Thirteen Weeks Ended |                   |  | Thirty-nine Weeks Ended
|                                                                                                                 | September 27,2008 |                      | September 29,2007 |  |                         | September 27,2008 |   |  | September 29,2007
|Net income                                                                                                       |                   | $                    | 5,406             |  | $                       | 5,131             |   |  | $                 | 12,253 |   |  | $ | 13,032
|                                                                                                                 |                   |                      |                   | 
|Other comprehensive income (loss):                                                                               |                   |                      |                   |  |                         |                   |   |  |                   |        |   |  |   |       
|Unrealized holding gains (losses) on Available-for-sale investments arising during the period, net of income tax |                   |                      | 65                |  |                         | (53               | ) |  |                   | (1,256 | ) |  |   | 7     
|Reclassification adjustment for losses on Available-for-sale investments reclassified into income, net of tax    |                   |                      | 192               |  |                         |                  |   |  |                   | 1,547  |   |  |   |      
|                                                                                                                 |                   |                      |                   |  |                         |                   |   |  |                   |        |   |  |   |       
|Net gain recognized in other comprehensive income (loss)                                                         |                   |                      | 257               |  |                         | (53               | ) |  |                   | 291    |   |  |   | 7     
|                                                                                                                 |                   |                      |                   |  |                         |                   |   |  |                   |        |   |  |   |       
|Total comprehensive income                                                                                       |                   | $                    | 5,663             |  | $                       | 5,078             |   |  | $                 | 12,544 |   |  | $ | 13,039
|                                                                                                                 |                   |                      |                   |  |                         |                   |   |  |                   |        |   |  |   |       

Accumulated other comprehensive income at September 27, 2008 of $165,000 represents the
unrealized holding gains on availablefor-sale investments of $267,000, net of related income tax expense of $102,000. At September 27, 2008, the gross unrealized holding gains and gross unrealized holding losses on available-for-sale
investments were $991,000 and $724,000, respectively.



9



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(7) | Acquisitions
|--- | ------------

In 2008, UTSI acquired the following
companies for a total cost of $3,753,000.



| |  |  | On January 14, 2008, the Company acquired certain assets of Trimodal, Inc., or Trimodal, for $1,777,000 through an Asset Purchase Agreement. Trimodal is a
regional provider of intermodal services in the Midwestern United States. The Company used cash and marketable securities on hand to finance the acquisition. Trimodal operates as part of Mason Dixon Intermodal, Inc.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | On June 13, 2008, the Company acquired certain assets of Overnite Express, Inc., or Overnite, for $1,976,000 through an Asset Purchase Agreement. Additionally,
the Company is required to pay cash consideration to the former owners of Overnite based on a percentage of revenues generated during the period from July 1, 2008 to June 30, 2010. Overnite is a regional provider of van trucking services
in the Midwestern United States. Overnite operates as part of Universal Am-Can, Ltd.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The pro forma effect of these
acquisitions has been omitted, as the effect is immaterial to the Companys results of operations, financial position and cash flows. The allocation of the purchase price of these companies is as follows (in thousands):



|                          |  |   |       |  
|------------------------- |  | - | ----- | -
|Equipment                 |  | $ | 1,226 |  
|Intangible assets         |  |   | 2,656 |  
|Goodwill (tax deductible) |  |   | 551   |  
|Accrued Liabilities       |  |   | (680  | )
|                          |  |   |       |  
|                          |  | $ | 3,753 |  
|                          |  |   |       |  

The intangible assets acquired represent the acquired companys customer relationships and
are amortized over a period of seven years.



|(8) | Fair Value Measurements
|--- | -----------------------

Effective January 1,
2008, the Company adopted SFAS No. 157, Fair Value Measurements, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market
for the asset or liability in an orderly transaction between market participants at the measurement date. SFAS No. 157 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy
requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:



| |  |  | Level 1  Quoted prices in active markets for identical assets or liabilities.
| | - |  | ------------------------------------------------------------------------------



| |  |  | Level 2  Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active
markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3  Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or
liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



10



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(8) | Fair Value Measurementscontinued
|--- | ---------------------------------



The Companys adoption of SFAS No. 157 did not have a material impact on our financial position, results of operations, or cash flows. The
Company has segregated all financial assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the
table below. FASB Staff Position FAS 157-2 delayed the effective date for all non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis until January 1, 2009.

Effective January 1, 2008, the Company adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities
 Including an amendment of FASB Statement No. 115, which provides entities the option to measure many financial instruments and certain other items at fair value. Entities that choose the fair value option will recognize
unrealized gains and losses on items for which the fair value option was elected in earnings at each subsequent reporting date. The Company has currently chosen not to elect the fair value option for any items that are not already required to be
measured at fair value in accordance with U.S. generally accepted accounting principles.

The following table summarizes the Companys
assets measured at fair value on a recurring basis (in thousands):



|                              |  |                    |        |         |   |         |  |                       |   |  |   |       
|----------------------------- |  | ------------------ | ------ | ------- | - | ------- |  | --------------------- | - |  | - | ------
|                              |  | September 27, 2008
|                              |  | Level 1            |        | Level 2 |   | Level 3 |  | Fair ValueMeasurement
|Assets                        |  |                    |        |         |   |         |  |                       |   |  |   |       
|Cash Equivalents              |  | $                  | 5,188  |         | $ |        |  | $                     |  |  | $ | 5,188 
|Available-for-sale securities |  |                    | 11,224 |         |   | 1,850   |  |                       |  |  |   | 13,074
|                              |  |                    |        |         |   |         |  |                       |   |  |   |       
|Total Assets                  |  | $                  | 16,412 |         | $ | 1,850   |  | $                     |  |  | $ | 18,262
|                              |  |                    |        |         |   |         |  |                       |   |  |   |       

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



| |  |  | Cash EquivalentsThis category consists of money market funds which are listed as Level 1 assets and measured at fair value based on quoted prices for
identical instruments in active markets.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Available-for-sale securitiesIncluded within this asset category are both equity and debt securities. Equity securities consisting of stocks which are
actively traded on public exchanges are listed as Level 1 assets. Fair value was measured based on quoted prices for identical securities in active markets. Debt securities, classified as Level 2 assets, consist of auction rate securities. Fair
value was determined using dealer quoted prices for similar assets.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



11



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(9) | Marketable Securities
|--- | ---------------------

Marketable securities are
carried at fair value, with the unrealized gains and losses, net of tax, included as a component of accumulated other comprehensive income. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale
securities, if any, are included in the determination of net income and are included in non-operating income (expense).

The cost, gross
unrealized holding gains, gross unrealized holding losses, and fair value of available-for-sale securities by type as of September 27, 2008 is as follows (in thousands):



|                        |  |               |        |                             |   |                                |  |   |           |   |  |   |       
|----------------------- |  | ------------- | ------ | --------------------------- | - | ------------------------------ |  | - | --------- | - |  | - | ------
|                        |  | AmortizedCost |        | Grossunrealizedholdinggains |   | Grossunrealizedholding(losses) |  |   | FairValue
|Auction Rate Securities |  | $             | 1,850  |                             | $ |                               |  | $ |          |   |  | $ | 1,850 
|Equity Securities       |  |               | 10,957 |                             |   | 991                            |  |   | (724      | ) |  |   | 11,224
|                        |  |               |        |                             |   |                                |  |   |           |   |  |   |       
|                        |  | $             | 12,807 |                             | $ | 991                            |  | $ | (724      | ) |  | $ | 13,074
|                        |  |               |        |                             |   |                                |  |   |           |   |  |   |       

Included in equity securities at September 27, 2008 are $5.7 million of securities with a
cumulative loss position of $724 thousand, the impairment of which the Company considers to be temporary. The Company considers several factors in its determination as to whether declines in value are judged to be temporary or other-than-temporary,
including the severity and duration of the decline, the financial condition and near-term prospects of the specific issuer, and our intent and ability to hold these securities.

There were no equity securities in a cumulative loss position for a period of 12 months or greater; however, during the thirteen and thirty-nine weeks
ended September 27, 2008, the Company recorded pre-tax other-than-temporary impairment charges of $495 thousand and $2.7 million, respectively, for marketable equity securities classified as available-for-sale. These charges resulted primarily
from our equity holdings in the financial sector and were driven mainly by the declines in the value caused by current credit market conditions. As such, the amortized cost basis of these securities has been adjusted to fair value, and the charges
have been included in the statements of income for the thirteen and thirty-nine weeks ended September 27, 2008.



|(10) | Contingencies
|---- | -------------

The Company is involved in claims
and litigation arising in the ordinary course of business. These matters primarily involve claims for personal injury and property damage incurred in the transportation of freight. Management believes all such claims and litigation are adequately
covered by insurance or otherwise reserved for and that adverse results in one or more of those cases would not have a materially adverse effect on the Companys financial condition. However, if the ultimate outcome of these matters, after
provisions thereof, is materially different from the Companys estimates, they could have a material effect on the Companys operating results and cash flows in any given quarter or year.



12



---

UNIVERSAL TRUCKLOAD SERVICES, INC.

Notes to Unaudited Consolidated Financial Statements  Continued







|(11) | Recent Accounting Pronouncements
|---- | --------------------------------

In December 2007,
the FASB issued SFAS No. 141 (revised 2007), Business Combinations, or SFAS 141R, which replaces SFAS No. 141. This Statement establishes principles and requirements for how an acquirer recognizes and measures in its
financial statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquiree and the goodwill acquired. SFAS 141R also establishes disclosure requirements which will enable users to evaluate the nature
and financial effects of the business combination, measures contingent consideration at the acquisition-date fair value and requires transaction costs to be recognized as expense in the period in which they are incurred. SFAS 141R is effective for
the Company January 1, 2009, and will be applicable prospectively for business combinations with an acquisition date on or after January 1, 2009.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements  an Amendment of Accounting Research Bulletin No. 51, or SFAS 160. This
Statement establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a
parents ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS 160 also establishes reporting requirements to provide disclosures to clearly identify and distinguish between
the interest of the parent and the interests of the noncontrolling owner. SFAS 160 is effective for the Company as of January 1, 2009. The Company believes once adopted, SFAS 160 will not have a significant impact on the Companys
financial statements.



|(12) | Subsequent Events
|---- | -----------------

In light of the recent
tightening of available credit from lending institutions, on September 29, 2008, the Company drew down $19.0 million on its unsecured line of credit with KeyBank. These funds were immediately invested in a highly liquid money market fund
consisting primarily of commercial paper, US government issuances, bank obligations, and corporate notes. On November 3, 2008, the Company fully repaid the $19.0 million on its unsecured line of credit.

The Company and KeyBank entered into a First Amendment to Loan Agreement and First Amendment to Promissory Note, or the Agreement, dated October 28,
2008 for the period October 28, 2008 to October 27, 2009, amending the previous loan agreement dated October 29, 2007 for the period October 29, 2007 to October 28, 2008, which terminated due to the expiration of its term.
Under the new Agreement with KeyBank, our maximum permitted borrowings and letters of credit in the aggregate may not exceed $20 million. The line of credit is unsecured, and bears interest at a rate equal to the lesser of the Prime Rate minus 1.75%
or LIBOR plus 1.05%. The agreement governing our unsecured line of credit contains various financial and restrictive covenants to be maintained by us including requiring us to maintain a tangible net worth of at least $100 million, a debt to
tangible net worth ratio not to exceed 1 to 1, and quarterly net profits of at least one dollar. For purposes of this agreement, tangible net worth is defined as total assets, excluding all intangible assets, less total debt. The agreement also may,
in certain circumstances, limit our ability to pay dividends or distributions. The agreement also contains customary representations and warranties, affirmative and negative covenants and events of default.



13



---

|ITEM 2: | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- | -------------------------------------------------------------------------------------

Some of the statements and assumptions in this Form 10-Q are forward-looking statements. These statements identify prospective information. Important factors could cause actual results to differ, possibly
materially, from those in the forward-looking statements. In some cases you can identify forward-looking statements by words such as anticipate, believe, could, estimate, plan,
intend, may, should, will and would or other similar words. You should read statements that contain these words carefully because they discuss our future expectations, contain projections
of our future results of operations or of our financial position or state other forward-looking information. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be
accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information available at the time and/or managements good faith belief with respect to future events, and
is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. The factors listed in the section captioned Risk Factors in Item 1A in our Form 10-K
for the year ended December 31, 2007, as well as any other cautionary language in that Form 10-K, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in
our forward-looking statements.

Forward-looking statements speak only as of the date the statements are made. We assume 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. If we do update one or more forward-looking
statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.

Overview

We are a primarily non-asset based provider of transportation services to shippers throughout the United States and in the
Canadian provinces of Ontario and Quebec. We offer flatbed and dry van trucking services, as well as rail-truck and steamship-truck intermodal and truck brokerage services. We primarily operate through a contractor network of independent sales
agents and owner-operators of tractors and trailers. In return for their services, we pay our agents and owner-operators a percentage of the revenue they generate for us.

Our use of agents and owner-operators reduces our need to provide non-driver facilities and tractor and trailer fleets. The primary physical assets we provide to our agents and owner-operators include a portion of our
trailer fleet, our headquarters facility, our management information systems and our intermodal depot facilities. Our business model provides us with a highly variable cost structure, allows us to grow organically using relatively small amounts of
cash, gives us a higher return on assets compared to many of our asset-based competitors and preserves an entrepreneurial spirit among our agents and owner-operators that we believe leads to improved operating performance. For the thirteen and
thirty-nine weeks ended September 27, 2008, approximately 88.6% and 87.6%, respectively, of our total operating expenses were variable in nature and our capital expenditures were $1.3 million and $5.6 million, respectively.



14



---

Results of Operations

The following table sets forth items derived from our consolidated statements of income for the thirteen and thirty-nine weeks ended September 27, 2008 and September 29, 2007, as a percentage of operating revenues:



|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|---------------------------------------- |  | -------------------- | - |  | ----------------------- | - |  | ----------------- | - |  | ----------------- | -
|                                         |  | Thirteen Weeks Ended |   |  | Thirty-nine Weeks Ended |  
|                                         |  | September 27,2008    |   |  | September 29,2007       |   |  | September 27,2008 |   |  | September 29,2007 |  
|Operating revenues                       |  | 100                  | % |  | 100                     | % |  | 100               | % |  | 100               | %
|Operating expenses:                      |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|Purchased transportation                 |  | 79.0                 |   |  | 76.2                    |   |  | 78.2              |   |  | 76.4              |  
|Commissions expense                      |  | 5.9                  |   |  | 6.6                     |   |  | 6.1               |   |  | 6.6               |  
|Other operating expenses                 |  | 1.0                  |   |  | 1.3                     |   |  | 1.2               |   |  | 1.5               |  
|Selling, general and administrative      |  | 6.2                  |   |  | 6.9                     |   |  | 6.7               |   |  | 7.1               |  
|Insurance and claims                     |  | 2.6                  |   |  | 3.0                     |   |  | 2.9               |   |  | 3.1               |  
|Depreciation and amortization            |  | 1.2                  |   |  | 1.2                     |   |  | 1.2               |   |  | 1.2               |  
|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|Total operating expenses                 |  | 95.9                 |   |  | 95.2                    |   |  | 96.3              |   |  | 95.9              |  
|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|Operating income                         |  | 4.1                  |   |  | 4.8                     |   |  | 3.7               |   |  | 4.1               |  
|Interest income, net                     |  |                     |   |  | 0.1                     |   |  |                  |   |  | 0.1               |  
|Other non-operating income (expense)     |  |                     |   |  |                        |   |  | (0.3              | ) |  |                  |  
|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|Income before provision for income taxes |  | 4.1                  |   |  | 4.9                     |   |  | 3.4               |   |  | 4.2               |  
|Provision for income taxes               |  | 1.6                  |   |  | 1.9                     |   |  | 1.3               |   |  | 1.6               |  
|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  
|Net income                               |  | 2.5                  | % |  | 3.0                     | % |  | 2.1               | % |  | 2.6               | %
|                                         |  |                      |   |  |                         |   |  |                   |   |  |                   |  

Thirty-nine Weeks Ended September 27, 2008 Compared to Thirty-nine Weeks Ended September 29, 2007

Operating revenues.Operating revenues for the thirty-nine weeks ended September 27, 2008 increased by $73.7 million, or 14.5%, to
$582.5 million from $508.8 million for the thirty-nine weeks ended September 29, 2007. Approximately $29.2 million of the increase in operating revenues is attributable to acquisitions made since the fourth quarter of 2007. The increase in
operating revenues relating to these acquisitions consisted of a $19.8 million increase in truckload operations, a $2.8 million increase in brokerage operations, and a $6.6 million increase in intermodal operations. For the thirty-nine weeks ended
September 27, 2008, our operating revenue per loaded mile, excluding fuel surcharges, from our combined truckload and brokerage operations increased to $2.37 from $2.10 for the thirty-nine weeks ended September 29, 2007. Excluding the
effects of acquisitions made since the fourth quarter of 2007, revenue from our truckload operations increased by $18.4 million, or 6.1%, to $320.5 million for the thirty-nine weeks ended September 27, 2008 from $302.1 million for the
thirty-nine weeks ended September 29, 2007. Excluding the effects of acquisitions made since the fourth quarter of 2007, revenue from our brokerage operations increased by $24.5 million, or 19.3%, to $151.4 million for the for the thirty-nine
weeks ended September 27, 2008 compared to $126.9 million for the thirty-nine weeks ended September 29, 2007. Excluding the effects of acquisitions made in the first half of 2008, revenue from our intermodal support services increased by
$1.6 million, or 2.0%, to $81.5 million for the thirty-nine weeks ended September 27, 2008 from $79.9 million for the thirty-nine weeks ended September 29, 2007.

Purchased transportation.Purchased transportation expense for the thirty-nine weeks ended September 27, 2008 increased by $66.9 million, or 17.2%, to $455.6 million from $388.7 million for the thirty-nine
weeks ended September 29, 2007. As a percentage of operating revenues, purchased transportation expense increased to 78.2% for the thirty-nine weeks ended September 27, 2008 from 76.4% for the thirty-nine weeks ended September 29,
2007. The absolute increase was primarily due to the growth in our operating revenues. Purchased transportation expense generally increases or decreases in proportion to the revenues generated through owner-operators and other third party providers.
The increase in purchased transportation as a percent of operating revenues is primarily due to an increase in fuel surcharges, which are passed through to owner-operators. Fuel surcharges for the thirty-nine weeks ended September 27, 2008 were
$81.1 million compared to $47.6 million for the thirty-nine weeks ended September 29, 2007.



15



---

Commissions expense.Commissions expense for the thirty-nine weeks ended September 27, 2008 increased by $2.0
million, or 5.8%, to $35.4 million from $33.4 million for the thirty-nine weeks ended September 29, 2007. As a percentage of operating revenues, commissions expense decreased to 6.1% for the thirty-nine weeks ended September 27, 2008
compared to 6.6% for thirty-nine weeks ended September 29, 2007. The absolute increase was primarily due to the growth in our operating revenues. As a percentage of revenues, commissions expense decreased primarily due to $33.4 million of the
increase in operating revenues being attributable to an increase in fuel surcharges, which are passed on through to our owner operators and, as such, no commissions are paid.

Other operating expense.Other operating expense for the thirty-nine weeks ended September 27, 2008 decreased by $0.6 million, or 7.9%, to $7.0 million from $7.6 million for the thirty-nine weeks ended
September 29, 2007. As a percentage of operating revenues, other operating expense decreased to 1.2% for the thirty-nine weeks ended September 27, 2008 compared to 1.5% for thirty-nine weeks ended September 29, 2007. The decrease was
primarily due to a decrease in repairs and maintenance cost.

Selling, general and administrative.Selling, general and administrative expense for
the thirty-nine weeks ended September 27, 2008 increased by $2.4 million, or 6.6%, to $38.8 million from $36.4 million for the thirty-nine weeks ended September 29, 2007. As a percentage of operating revenues, selling, general and
administrative expense remained decreased to 6.7% for the thirty-nine weeks ended September 27, 2008 compared to 7.1% for thirty-nine weeks ended September 29, 2007. The absolute increase in selling, general and administrative expense was
primarily the result of a $1.5 million increase in salaries, wages and benefit costs primarily attributable to a higher average headcount and acquisitions made in the first half of 2008, a $0.7 million increase in building rents primarily due to
rental costs related to acquisitions made in the first half of 2008 and various other rental increases, and $0.3 million in additional travel costs for training and acquisition related travel costs. These increases were partially offset by a
decrease in legal and professional fees of $0.5 million.

Insurance and claims.Insurance and claims expense for the thirty-nine weeks ended
September 27, 2008 increased by $1.0 million, or 6.1%, to $16.9 million from $15.9 million for the thirty-nine weeks ended September 29, 2007. As a percentage of operating revenues, insurance and claims decreased to 2.9% for the
thirty-nine weeks ended September 27, 2008 from 3.1% for the thirty-nine weeks ended September 29, 2007. The absolute increase is the result of a $0.7 million increase in auto liability insurance premiums and claims expense and a $0.3
million increase in cargo claims expense.

Depreciation and amortization.Depreciation and amortization for the thirty-nine weeks ended
September 27, 2008 increased by $1.1 million, or 19.4%, to $7.1 million from $6.0 million for the thirty-nine weeks ended September 29, 2007. As a percent of operating revenues, depreciation and amortization remained consistent at 1.2% for
the thirty-nine weeks ended September 27, 2008 compared to the thirty-nine weeks ended September 29, 2007. The absolute increase is primarily a result of a $0.7 million increase in depreciation expense relating to the $5.6 million in
capital expenditures made during the thirty-nine weeks ended September 27, 2008 and equipment acquired in connection with the acquisitions made in the first half of 2008 and a $0.4 million increase in amortization expense primarily attributable
to the acquisitions made since the fourth quarter of 2007.

Interest expense (income), net.Net interest income for the thirty-nine weeks ended
September 27, 2008 was $66 thousand compared to net interest income of $231 thousand for the thirty-nine weeks ended September 29, 2007. The decrease in net interest income of $165 thousand or 71.4% is the result of lower average invested
balances in interest bearing accounts.

Other non-operating income (expense). Other non-operating expense for the thirty-nine weeks ended
September 27, 2008 was $1.8 million compared to other non-operating income of $291 thousand for the thirty-nine weeks ended September 29, 2007. Included in other non-operating expense for the thirty-nine weeks ended September 27, 2008
were $2.7 million of pre-tax charges for other-than-temporary impairments of marketable equity securities classified as available-for-sale. Excluding these charges, there was an increase in other non-operating income of $647 thousand or 222% which
was primarily the result of increased dividends on available-for-sale investments.



16



---

Provision for income taxes.Provision for income taxes for the thirty-nine weeks ended September 27, 2008
decreased by $0.6 million, or 6.6%, to $7.8 million from $8.4 million for the thirty-nine weeks ended September 29, 2007. For the thirty-nine weeks ended September 27, 2008 and September 29, 2007, we had an effective income tax rate
of 38.9% and 39.1%, respectively, based upon our income before provision for income taxes.

Thirteen Weeks Ended September 27, 2008 Compared to
Thirteen Weeks Ended September 29, 2007

Operating revenues.Operating revenues for the thirteen weeks ended September 27, 2008
increased by $41.2 million, or 24.0%, to $213.0 million from $171.8 million for the thirteen weeks ended September 29, 2007. Approximately $14.1 million of the increase in operating revenues is attributable to acquisitions made since the fourth
quarter of 2007. The increase in operating revenues relating to these acquisitions consisted of a $9.8 million increase in truckload operations, a $1.4 million increase in brokerage operations, and a $2.9 million increase in intermodal operations.
For the thirteen weeks ended September 27, 2008, our operating revenue per loaded mile, excluding fuel surcharges, from our combined truckload and brokerage operations increased to $2.52 from $2.17 for the thirteen weeks ended
September 29, 2007. Excluding the effects of acquisitions made since the fourth quarter of 2007, revenue from our truckload operations increased by $10.7 million, or 10.6%, to $112.3 million for the thirteen weeks ended September 27, 2008
compared to $101.6 million for the thirteen weeks ended September 29, 2007. Excluding the effects of acquisitions made since the fourth quarter of 2007, revenue from our brokerage operations increased by $16.0 million, or 37.4%, to $58.8
million for the thirteen weeks ended September 27, 2008 compared to $42.8 million for the thirteen weeks ended September 29, 2007. Excluding the effects of acquisitions made in the first half of 2008, revenue from our intermodal support
services increased by $0.4 million, or 1.5%, to $27.8 million for the thirteen weeks ended September 27, 2008 from $27.4 million for the thirteen weeks ended September 29, 2007.

Purchased transportation.Purchased transportation expense for the thirteen weeks ended September 27, 2008 increased by $37.3 million, or 28.5%, to $168.2
million from $130.9 million for the thirteen weeks ended September 29, 2007. As a percentage of operating revenues, purchased transportation expense increased to 79.0% for the thirteen weeks ended September 27, 2008 from 76.2% for the
thirteen weeks ended September 29, 2007. Purchased transportation expense generally increases or decreases in proportion to the revenues generated through owner-operators and other third-party providers. The increase in purchased transportation
as a percent of operating revenues is primarily due to an increase in fuel surcharges, which are passed through to owner-operators. Fuel surcharges for the thirteen weeks ended September 27, 2008 were $32.2 million compared to $16.0 million for
the thirteen weeks ended September 29, 2007.

Commissions expense.Commissions expense for the thirteen weeks ended September 27, 2008
increased by $1.3 million, or 11.3%, to $12.6 million from $11.3 million for the thirteen weeks ended September 29, 2007. As a percentage of operating revenues, commissions expense decreased to 5.9% for the thirteen weeks ended
September 27, 2008 compared to 6.6% for thirteen weeks ended September 29, 2007. As a percentage of revenues, commissions expense decreased primarily due to $16.2 million of the increase in operating revenues being attributable to an
increase in fuel surcharges, which are passed on through to our owner operators and as such, no commissions are paid.

Other operating expense.Other operating expense for the thirteen weeks ended September 27, 2008 decreased by $0.1 million, or 5.3%, to $2.1 million from $2.2 million for the thirteen weeks ended September 29, 2007. As a percentage of operating revenues, other
operating expense decreased to 1.0% for the thirteen weeks ended September 27, 2008 compared to 1.3% for the thirteen weeks ended September 29, 2007.

Selling, general and administrative.Selling, general and administrative expense for the thirteen weeks ended September 27, 2008 increased by $1.3 million, or 11.3%, to $13.2 million from $11.9 million for the thirteen weeks
ended September 29, 2007. As a percentage of operating revenues, selling, general and administrative expense decreased to 6.2% for the thirteen weeks ended September 27, 2008 from 6.9% for



17



---

the thirteen weeks ended September 29, 2007. The absolute increase in selling, general and administrative expense was primarily the result of a $1.1
million increase in salaries, wages and benefit costs primarily attributable to a higher average headcount and acquisitions made in the first half of 2008, a $0.3 million increase in building rents primarily due to rental costs related to
acquisitions made in the first half of 2008 and various other rental increases, and $0.1 million in additional travel costs for training and acquisition related travel costs. These increases were partially offset by a decrease in legal and
professional fees of $0.4 million.

Insurance and claims.Insurance and claims expense for the thirteen weeks ended September 27, 2008
increased by $0.3 million or 6.0%, to $5.4 million from $5.1 million for the thirteen weeks ended September 29, 2007. As a percentage of operating revenues, insurance and claims decreased to 2.6% for the thirteen weeks ended September 27,
2008 from 3.0% for the thirteen weeks ended September 29, 2007. The absolute increase is the result of a $0.6 million increase in auto liability insurance premiums and claims expense, which was partially offset by a $0.3 million decrease in
cargo claims expense.

Depreciation and amortization.Depreciation and amortization for the thirteen weeks ended September 27, 2008 increased
by $0.5 million, or 24.8%, to $2.5 million from $2.0 million for the thirteen weeks ended September 29, 2007. As a percent of operating revenues, depreciation and amortization remained consistent at 1.2% for the thirteen weeks ended
September 27, 2008 compared to the thirteen weeks ended September 29, 2007. The absolute increase is primarily the result of a $0.3 million increase in depreciation expense relating to the $5.6 million in capital expenditures made during
the thirty-nine weeks ended September 27, 2008 and equipment acquired in connection with the acquisitions made in the first half of 2008 and a $0.2 million increase in amortization expense primarily attributable to the acquisitions made since
the fourth quarter of 2007.

Interest income, net.Net interest income for the thirteen weeks ended September 27, 2008 was $47 thousand
compared to $90 thousand for the thirteen weeks ended September 29, 2007. The decrease in net interest income of $43 thousand or 48.0% is the result of lower average invested balances in interest bearing accounts.

Other non-operating income (expense). Other non-operating income for the thirteen weeks ended September 27, 2008 was $2 thousand compared to other
non-operating income of $101 thousand for the thirteen weeks ended September 29, 2007. Included in other non-operating income for the thirteen weeks ended September 27, 2008 was a $495 thousand pre-tax charge for other-than-temporary
impairments of marketable equity securities classified as availablefor-sale. Excluding this charge, there was an increase in other non-operating income of $396 thousand or 392% which was primarily the result of increased dividends on
available-for-sale investments.

Provision for income taxes.Provision for income taxes for the thirteen weeks ended September 27, 2008
increased by $0.1 million or 4.5%, to $3.4 million from $3.3 million for the thirteen weeks ended September 29, 2007. For the thirteen weeks ended September 27, 2008 and September 29, 2007, we had an effective income tax rate of 38.9%
and 39.1%, respectively, based upon our income before provision for income taxes.

Liquidity and Capital Resources

Our primary sources of liquidity are funds generated by operations and our revolving unsecured line of credit with KeyBank.

We employ a primarily non-asset based operating strategy. Substantially all of the tractors and more than 50% of the trailers utilized in our business are provided by
our owner-operators and we have no capital expenditure requirements relating to this equipment. As a result, our capital expenditure requirements are limited in comparison to most large trucking companies which maintain sizable fleets of owned
tractors and trailers, requiring significant capital expenditures.

During the thirteen and thirty-nine weeks ended September 27, 2008, we made
capital expenditures totaling $1.3 million and $5.6 million, respectively. These expenditures primarily consisted of land improvements, building improvements, and tractors and trailers.



18



---

Through the end of 2008, exclusive of acquisitions, we expect to incur additional capital expenditures of $1.5 million to
$2.0 million for tractors, trailers and other equipment.

We expect that our working capital and available borrowings will be sufficient to meet our
capital commitments and fund our operational needs for at least the next twelve months. Based on the availability under our line of credit and assuming the continuation of our current level of profitability, we do not expect that we will experience
any liquidity constraints in the foreseeable future.

We continue to evaluate business development opportunities, including potential acquisitions that fit
our strategic plans. There can be no assurance that we will identify any opportunities that fit our strategic plans or that we will be able to execute any such opportunities on terms acceptable to us. Any such opportunities will be financed from
available cash on hand and our unsecured line of credit.

We currently intend to retain our future earnings to finance our growth and do not anticipate
paying cash dividends in the foreseeable future.

Unsecured Lines of Credit

The Company and KeyBank National Association entered into a loan agreement dated October 29, 2007 for the period October 29, 2007 to October 28, 2008. Under the line of credit with KeyBank, our maximum
permitted borrowings and letters of credit in the aggregate may not exceed $20 million. The line of credit is unsecured, and bears interest at a rate equal to the lesser of the Prime Rate minus 1.75% or LIBOR plus 1.05% (effective rate of 3.25% at
September 27, 2008). The agreement governing our unsecured line of credit contains various financial and restrictive covenants to be maintained by us including requiring us to maintain a tangible net worth of at least $85.0 million, a debt to
tangible net worth ratio not to exceed 1 to 1, and quarterly net profits of at least one dollar. For purposes of this agreement, tangible net worth is defined as total assets, excluding all intangible assets, less total debt. The agreement also may,
in certain circumstances, limit our ability to pay dividends or distributions. The agreement also contains customary representations and warranties, affirmative and negative covenants and events of default. The Company did not have any amounts
outstanding under its line of credit at September 27, 2008 or December 31, 2007, and there were $839,000 and $6,400 letters of credit issued against the line, respectively. However, in light of the recent tightening of available credit
from lending institutions, on September 29, 2008, the Company drew down $19.0 million on its unsecured line of credit with KeyBank. These funds were immediately invested in a highly liquid money market fund consisting primarily of commercial
paper, US government issuances, bank obligations, and corporate notes. On November 3, 2008, the Company fully repaid the $19.0 million on its unsecured line of credit.

Discussion of Cash Flows

At September 27, 2008, we had cash and cash equivalents of $5.8 million
compared to $5.4 million at December 31, 2007. The increase in cash and cash equivalents of $0.4 million for the thirty-nine weeks ended September 27, 2008 resulted from $7.5 million in cash generated from operations offset by $7.1 million
used in investing activities.

The $7.5 million in cash provided by operations was primarily attributed to $12.3 million of net income and $7.1 million of
non-cash charges for depreciation and amortization, $2.7 million of impairment charges on marketable securities classified as availablefor-sale, $1.0 million of non-cash charges for bad debt expense, and an increase in the working capital
position of the Company of $14.2 million. The increase in the working capital position is primarily the result of an increase in accounts receivable due to increased revenue, and an increase in prepaid expenses and other, consisting primarily of
prepaid auto liability insurance premiums. The increase is partially offset by an increase in accounts payable and accrued expenses.

The $7.1 million in
net cash used in investing activities for the thirty-nine weeks ended September 27, 2008 consisted of capital expenditures of $5.6 million, $4.3 million for the acquisition of businesses, purchases of marketable securities totaling $12.5
million, and sales of marketable securities totaling $15.4 million.



19



---

Off Balance Sheet Arrangements

In connection with the 2005 acquisition of Diamond Logistics of Houston, Inc., or Diamond, we are required to pay cash consideration to the former owners of Diamond based on a percentage of revenues generated through
November 2008.

In connection with the 2006 acquisition of Assure Intermodal, LLC, or Assure, we are required to pay cash consideration to the former
owners of Assure based on a percentage of revenues generated through January 2009.

In connection with the 2006 acquisition of Djewels, Inc., or Djewels,
we are required to pay cash consideration to the former owner of Djewels based on a percentage of revenues generated through February 2009.

In connection
with the 2006 acquisition of TriStar Express N.C., Inc., or TriStar, we are required to pay cash consideration to the former owners of TriStar based on a percentage of revenues generated through July 2009.

In connection with the 2007 acquisition of Glenn National Carriers, Inc., or Glenn, we are required to pay cash consideration to the former owners of Glenn based on a
percentage of revenues generated through November 2010.

In connection with the 2008 acquisition of Overnite, we are required to pay cash consideration to
the former owners of Overnite based on a percentage of revenues generated through June 2010.

Critical Accounting Policies

A summary of critical accounting policies is presented in Item 7, Managements Discussion and Analysis of Financial Condition and Results of
OperationsCritical Accounting Policies of our Form 10-K for the year ended December 31, 2007. There have been no changes in the accounting policies followed by us during the thirty-nine weeks ended September 27, 2008.

Effect of Recent Accounting Pronouncements

In
February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an amendment of FASB Statement No. 115 (SFAS 159).
This Statement permits entities to choose to measure many financial instruments and certain other items at fair value and report unrealized gains and losses on these instruments in earnings. SFAS 159 also establishes presentation and disclosure
requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. SFAS 159 was effective for us on January 1, 2008. The adoption of SFAS 159 did not
have an impact on our financial position, results of operations, or cash flows.

In September 2006, the FASB issued SFAS No. 157, Fair Value
Measurements. This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The Statement applies under other
accounting pronouncements that require or permit fair value measurements and, accordingly, does not require any new fair value measurements. SFAS 157 was effective for us on January 1, 2008. The adoption of SFAS 157 did not have an impact on
our financial position, results of operations, or cash flows.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business
Combinations, or SFAS 141R, which replaces SFAS No. 141. For information on this Statement, see Part I, Item 1, Note (11) to the Notes to Unaudited Consolidated Financial Statements in this report.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements  an Amendment of Accounting Research
Bulletin No. 51, or SFAS 160. For information on this Statement, see Part I, Item 1, Note (11) to the Notes to Unaudited Consolidated Financial Statements in this report.



20



---

Seasonality

Our
operations are subject to seasonal trends common to the trucking industry. Results of operations in the first quarter are typically lower than the second, third and fourth quarters.



|ITEM 3: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

Interest Rate Risk

Our market risk is affected by changes in interest rates. Our unsecured line of credit bears interest at a floating rate
equal to the lesser of the Prime Rate minus 1.75% or LIBOR plus 1.05%. Accordingly, changes in the Prime Rate or LIBOR would affect the interest rate on and therefore our cost under the line of credit. As of September 27, 2008 we did not have a
balance outstanding under the line of credit, however see Part I, Item 1, Note (12) of the Notes to Unaudited Consolidated Financial Statements.

Included in cash and cash equivalents is $5.2 million in short-term investment grade instruments. The interest rates on these instruments are adjusted to market rates at least monthly. In addition, we have the ability
to put these instruments back to the issuer at any time. Accordingly, any future interest rate risk on these short-term investments would not be material.

We did not have any interest rate swap agreements as of September 27, 2008.

Commodity Price Risk

Fluctuations in fuel prices can affect our profitability by affecting our ability to retain or recruit owner-operators. Our owner-operators bear the costs of operating
their tractors, including the cost of fuel. The tractors operated by our owner-operators consume large amounts of diesel fuel. Diesel fuel prices fluctuate greatly due to economic, political and other factors beyond our control. To address
fluctuations in fuel prices, we seek to impose fuel surcharges on our customers and pass these surcharges on to our owner-operators. Historically, these arrangements have not fully protected our owner-operators from fuel price increases. If costs
for fuel escalate significantly it could make it more difficult to attract additional qualified owner-operators and retain our current owner-operators. If we lose the services of a significant number of owner-operators or are unable to attract
additional owner-operators, it could have a materially adverse effect on our financial condition and results of operations.

Short Term Investments

The Company from time to time invests cash in excess of its current needs in marketable securities, much of which is held in equity securities, which are
actively traded on public exchanges. Holding equity securities subjects the Company to fluctuations in the market value of its investment portfolio based on current market prices. A drop in market prices or other unstable market conditions could
cause a loss in the value of the Companys short term investments.

Marketable securities are carried at fair value and are marked to market at the
end of each quarter, with the unrealized gains and losses, net of tax, included as a component of accumulated other comprehensive income, unless the declines in value are judged to be other-than-temporary, in which case an impairment charge would be
included in the determination of net income. See Part I, Item 1, Note (9) of Notes to Unaudited Consolidated Financial Statements.

As of September 27, 2008 the value of equity securities held as short term investments was $11.2 million compared to $8.6 million at December 31, 2007. The increase during the thirty-nine weeks ended September 27, 2008
represents additional purchases of $5.7 million, partially offset by other-than-temporary charges of $2.5 million on our remaining holdings, sales of $0.9 million, and other net unrealized holding gains of $0.3 million.



21



---

|ITEM 4: | CONTROLS AND PROCEDURES
|------- | -----------------------

Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as amended (or the Exchange Act). Based upon that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that, as of September 27, 2008, our disclosure controls and procedures were effective in causing the material information required to be disclosed in the reports that it files or submits under the
Exchange Act to be recorded, processed, summarized and reported, to the extent applicable, within the time periods required for us to meet the Securities and Exchange Commissions (or SEC) filing deadlines for these reports specified in the
SECs rules and forms.

Internal Controls

There
have been no changes in our internal controls over financial reporting during the thirty-nine weeks ended September 27, 2008 identified in connection with our evaluation that has materially affected, or are reasonably likely to materially
affect, our internal controls over financial reporting.



22



---

PART II  OTHER INFORMATION



|ITEM 1: | LEGAL PROCEEDINGS
|------- | -----------------

Information with respect to legal proceedings
and other exposures appears in Part I, Item 1, Note (10) of the Notes to Unaudited Consolidated Financial Statements, and in the Companys Annual Report on Form 10-K for the year ending December 31, 2007.



|ITEM 1A: | RISK FACTORS
|-------- | ------------

There have been no material changes to our risk
factors as previously disclosed in Item 1A to Part 1 of our Form 10-K for the fiscal year ended December 31, 2007.



|ITEM 2: | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|------- | -----------------------------------------------------------

None.



|ITEM 3: | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------

None.



|ITEM 4: | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|------- | ---------------------------------------------------

None.



|ITEM 5: | OTHER INFORMATION
|------- | -----------------

None.



23



---

|ITEM 6: | EXHIBITS
|------- | --------

The exhibits listed on the Exhibit Index are
furnished as part of this quarterly report on Form 10-Q.



|            |  |                                                                                                                                                                                                                                                                                                                                          
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                              
|3.1         |  | Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Registrants Registration Statement on Form S-1 filed on November 15, 2004 (Commission
File No. 333-120510))                                                                                                                             
|            | 
|3.2         |  | Amended and Restated Bylaws, as amended effective November 1, 2007 (Incorporated by reference to Exhibit 3.1 to the Registrants Current Report on Form 8-K filed on November 30, 2007
(Commission File No. 000-51142))                                                                                                                  
|            | 
|4.1         |  | Registration Rights Agreement, dated as of December 31, 2004, among the Registrant, Matthew T. Moroun and The Manuel J. Moroun Trust (Incorporated by reference to Exhibit 4.1 to the
Registrants Registration Statement on Form S-1 filed on January 7, 2005 (Commission File No. 333-120510))                                         
|            | 
|10.1+       |  | Employment Agreement, dated as of September 13, 2008, by and between Universal Truckload Services, Inc. and Don Cochran (Incorporated by reference to Exhibit 10.1 to the Registrants
Current Report on Form 8-K filed on September 16, 2008 (Commission File No. 000-51142))                                                           
|            | 
|10.2+       |  | Employment Agreement, dated as of September 13, 2008, by and between Universal Truckload Services, Inc. and Bob Sigler (Incorporated by reference to Exhibit 10.2 to the Registrants
Current Report on Form 8-K filed on September 16, 2008 (Commission File No. 000-51142))                                                            
|            | 
|10.3        |  | First Amendment to Loan Agreement and First Amendment to Promissory Note, dated as of October 28, 2008, between Universal Truckload Services, Inc. and KeyBank National Association.
(Incorporated by reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K filed on October 29, 2008 (Commission File No. 000-51142))
|            | 
|31.1*       |  | Chief Executive Officer certification, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                              
|            | 
|31.2*       |  | Chief Financial Officer certification, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                              
|            | 
|32.1**      |  | Chief Executive Officer and Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                               



|* | Filed herewith.
|- | ---------------

|** | Furnished herewith
|-- | ------------------

|+ | Indicates a management contract, compensatory plan or arrangement.
|- | ------------------------------------------------------------------



24



---

SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.



|                       |  |  |  |                                    |  |                                                                                   
|---------------------- |  |  |  | ---------------------------------- |  | ----------------------------------------------------------------------------------
|                       |  |  |  | Universal Truckload Services, Inc.
|                       |  |  |  | (Registrant)                      
|                       |  |  | 
|Date: November 3, 2008 |  |  |  | By:                                |  | /s/ Robert E. Sigler                                                              
|                       |  |  |  |                                    |  | Robert E. Sigler, Vice President, Chief Financial
Officer, Secretary and Treasurer
|                       |  |  | 
|Date: November 3, 2008 |  |  |  | By:                                |  | /s/ Donald B. Cochran                                                             
|                       |  |  |  |                                    |  | Donald B. Cochran, President and Chief Executive
Officer                          



25