Attached files
| file | filename |
|---|---|
| 8-K - Roadrunner Transportation Systems, Inc. | v192276_8k.htm |
FOR IMMEDIATE
RELEASE
ROADRUNNER
TRANSPORTATION SYSTEMS REPORTS
2010
SECOND QUARTER RESULTS
Cudahy,
WI – August 4, 2010 – Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a
leading non-asset based transportation and logistics services provider, today
reported financial results for the three and six months ended June 30,
2010.
Simultaneous
with the consummation of its May 2010 initial public offering (“IPO”), RRTS
merged with Group Transportation Services Holdings, Inc. (“GTS”), thereby adding
third-party logistics and transportation management solutions to RRTS’ suite of
services. The following table sets forth summary financial results for the three
and six months ended June 30 for RRTS and GTS on a combined basis assuming the
merger occurred at the beginning of each of the periods presented. The pro forma
data below assumes the IPO and sale of additional shares upon exercise of the
underwriters’ overallotment option occurred at the beginning of
2010.
|
(In
thousands, except per share data)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||
|
Pro
Forma
|
Actual
|
Actual
|
Pro
Forma
|
Actual
|
Actual
|
|||||||||||||||||||
|
Total
revenues
|
$ | 159,770 | $ | 159,770 | $ | 120,196 | $ | 302,532 | $ | 302,532 | $ | 230,720 | ||||||||||||
|
Net
revenues (total revenues less
|
||||||||||||||||||||||||
|
purchased
transportation costs)
|
$ | 35,334 | $ | 35,334 | $ | 26,569 | $ | 67,429 | $ | 67,429 | $ | 50,402 | ||||||||||||
|
Depreciation
and amortization
|
766 | 766 | 730 | 1,617 | 1,617 | 1,418 | ||||||||||||||||||
|
Other
operating expenses
|
25,077 | 25,077 | 21,095 | 48,809 | 48,809 | 42,175 | ||||||||||||||||||
|
Acquisition
transaction expenses
|
- | - | - | 332 | 332 | - | ||||||||||||||||||
|
IPO
related expenses
|
- | 1,500 | - | - | 1,500 | - | ||||||||||||||||||
|
Operating
income
|
$ | 9,491 | $ | 7,991 | $ | 4,744 | $ | 16,671 | $ | 15,171 | $ | 6,809 | ||||||||||||
|
Operating
income before acquisition transaction
|
||||||||||||||||||||||||
|
expenses
and IPO related expenses
|
$ | 9,491 | $ | 9,491 | $ | 4,744 | $ | 17,003 | $ | 17,003 | $ | 6,809 | ||||||||||||
|
Loss
on early extinguishment of debt
|
$ | - | $ | 15,916 | $ | - | $ | - | $ | 15,916 | $ | - | ||||||||||||
|
Net
(loss) income available to common
|
||||||||||||||||||||||||
|
stockholders
|
$ | 5,627 | $ | (6,377 | ) | $ | 381 | $ | 9,812 | $ | (5,435 | ) | $ | (829 | ) | |||||||||
|
Weighted
average diluted shares
|
||||||||||||||||||||||||
|
outstanding
|
31,191 | 25,497 | 17,481 | 30,871 | 21,906 | 17,469 | ||||||||||||||||||
|
Diluted
(loss) income per share available
|
||||||||||||||||||||||||
|
to
common stockholders
|
$ | 0.18 | $ | (0.25 | ) | $ | 0.02 | $ | 0.32 | $ | (0.25 | ) | $ | (0.05 | ) | |||||||||
2010
Second Quarter Results
Revenues
for the second quarter of 2010 increased 32.9% to $159.8 million compared to
revenues of $120.2 million for the second quarter of 2009. Operating income for
the second quarter of 2010 was $8.0 million compared to $4.7 million for the
second quarter of 2009. Excluding IPO related expenses of $1.5 million,
operating income for the second quarter of 2010 was $9.5 million. In connection
with its IPO, the Company also recorded a one-time loss on early extinguishment
of debt of $15.9 million during the second quarter of 2010 in accordance with
GAAP. These charges associated with the IPO contributed to a net loss available
to common stockholders of $6.4 million for the second quarter of 2010, or $0.25
per diluted share, compared to net income for the second quarter of 2009 of $0.4
million, or $0.02 per diluted share.
On a pro
forma basis, assuming both the IPO and the subsequent exercise of the
underwriters’ overallotment option had occurred at the beginning of the second
quarter of 2010 (giving effect to the sale of a total of 9,403,286 primary
shares), net income available to common stockholders for the quarter would have
been $5.6 million, or $0.18 per diluted share, based on 31,191,482 weighted
average diluted shares outstanding. Pro forma net income reflects the
elimination of (i) $1.5 million of IPO related expenses, (ii) $2.2 million in
interest expense, (iii) $15.9 million of loss on early extinguishment of debt,
and (iv) $0.3 million of accretion of the Series B preferred stock for the
quarter assuming the conversion of the shares of Series B preferred stock into
shares of common stock; adjusted for the net tax impact of $7.9 million for such
items.
Mark
DiBlasi, President and CEO of RRTS, said, “We generated continued growth in
revenue and net revenue during the second quarter, primarily driven by positive
new business trends resulting in market share gains in our LTL and TMS business
units as well as the effects of our acquisitions made in the second half of last
year. We also maintained strong margins during the quarter, despite tightened
capacity in the truckload market that impacted our LTL linehaul costs. The
positive trends are continuing into the third quarter related to further tonnage
growth and yield improvement. We are taking measures to minimize the impact of
the increased truckload rates on our LTL linehaul costs by leveraging our
independent contractor base, maximizing density throughout our network, and
through continued improvement in yields.”
2010
Second Quarter Segment Information
RRTS has
three operating segments: less-than-truckload (“LTL”), truckload brokerage
(“TL”) and transportation management solutions (“TMS”). Set forth below is
selected segment financial information excluding intercompany eliminations and
corporate expenses:
For the
LTL segment, revenues for the second quarter of 2010 were $106.3 million,
compared to $80.7 million for the second quarter of 2009. This reflects
quarter-over-quarter tonnage growth of 25.5% and growth in revenue
per hundredweight, including fuel surcharges, of 5.3%. LTL net revenues for the
second quarter of 2010 were $26.8 million, compared to $21.2 million for the
second quarter of 2009. LTL operating income was $7.1 million for the second
quarter of 2010, compared to $3.5 million for the second quarter of
2009.
The
following table sets forth summary LTL operating statistics for the three and
six months ended June 30.
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||
|
%
|
%
|
|||||||||||||||||||||||
|
2010
|
2009
|
Change
|
2010
|
2009
|
Change
|
|||||||||||||||||||
|
Operating
ratio
|
93.3 | % | 95.6 | % | 93.8 | % | 96.8 | % | ||||||||||||||||
|
Tonnage
|
666.6 | 531.3 | 25.5 | % | 1,253.7 | 984.2 | 27.4 | % | ||||||||||||||||
|
Shipments
(in thousands)
|
475.8 | 392.2 | 21.3 | % | 895.5 | 720.7 | 24.3 | % | ||||||||||||||||
|
Revenue
per hundredweight (incl. fuel)
|
$ | 16.04 | $ | 15.23 | 5.3 | % | $ | 15.92 | $ | 15.26 | 4.3 | % | ||||||||||||
|
Weight
per shipment (lbs.)
|
1,401 | 1,354 | 3.4 | % | 1,400 | 1,366 | 2.5 | % | ||||||||||||||||
Note:
Other than operating ratio, the statistics above do not include adjustments for
undelivered freight required for financial statement purposes in accordance with
RRTS' revenue recognition policy.
For the
TL segment, revenues for the second quarter of 2010 were $37.6 million, compared
to $33.3 million for the second quarter of 2009. TL net revenues for the second
quarter of 2010 were $4.3 million, compared to $4.0 million for the second
quarter of 2009. TL operating income was $1.5 million for the second quarter of
2010, compared to $1.2 million for the second quarter of 2009.
For the
TMS segment, revenues for the second quarter of 2010 were $16.5 million,
compared to $6.8 million for the second quarter of 2009. TMS net revenues for
the second quarter of 2010 were $4.3 million, compared to $1.4 million for the
second quarter of 2009. TMS operating income was $1.3 million for the second
quarter of 2010, compared to $0.3 million for the second quarter of 2009. The
growth in TMS revenues, net revenues, and operating income primarily resulted
from the acquisitions made in the second half of 2009 coupled with new customer
growth exceeding 20% quarter-over-quarter.
Conference
Call
A
conference call is scheduled for Wednesday, August 4, 2010 at 4:30 p.m. Eastern
Time. To access the conference call, please dial 877-869-3847 (U.S.) or
201-689-8261 (international) approximately 10 minutes
prior to the start of the call. The conference call will also be available via
live webcast under the Investor Relations section of RRTS website,
www.rrts.com.
If you
are unable to listen to the live call, a replay will be available through August
11, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415
(international). Callers will be prompted for replay account number 238#
followed by conference ID number 354431#. An archived version of
the webcast will also be available under the Investor Relations section of the
Company's website, www.rrts.com.
About
Roadrunner Transportation Systems, Inc.
RRTS is a
leading non-asset based transportation and logistics services provider offering
a full suite of solutions, including customized and expedited
less-than-truckload, truckload, transportation management solutions and
intermodal brokerage, and domestic and international air. For more information,
please visit: www.rrts.com.
Safe
Harbor Statement
This
release contains forward-looking statements that relate to future events or
performance. These statements reflect the company's current expectations, and
the company does not undertake to update or revise these forward-looking
statements, even if experience or future changes make it clear that any
projected results expressed or implied in this or other company statements will
not be realized. Furthermore, readers are cautioned that these statements
involve risks and uncertainties, many of which are beyond the company's control,
which could cause actual results to differ materially from the forward-looking
statements. These risks and uncertainties include, but are not limited to,
competition in the transportation industry, the impact of the current
economic crisis, the company's dependence upon purchased power, the
unpredictability of and potential fluctuation in the price and availability
of fuel, the effects of governmental and environmental regulations, and other
"Risk Factors" set forth in the company's most recent SEC filings.
(Tables
Follow)
|
ROADRUNNER
TRANSPORTATION SYSTEMS, INC.
|
||||||||||||||||
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
(In
thousands, except per share amounts)
|
||||||||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Revenues
|
$ | 159,770 | $ | 120,196 | $ | 302,532 | $ | 230,720 | ||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Purchased
transportation costs
|
124,436 | 93,627 | 235,103 | 180,318 | ||||||||||||
|
Personnel
and related benefits
|
15,420 | 12,793 | 29,688 | 25,724 | ||||||||||||
|
Other
operating expenses
|
9,657 | 8,302 | 19,121 | 16,451 | ||||||||||||
|
Depreciation
and amortization
|
766 | 730 | 1,617 | 1,418 | ||||||||||||
|
Acquisition
transaction expenses
|
- | - | 332 | - | ||||||||||||
|
IPO
related expenses
|
1,500 | - | 1,500 | - | ||||||||||||
|
Total operating expenses
|
151,779 | 115,452 | 287,361 | 223,911 | ||||||||||||
|
Operating
income
|
7,991 | 4,744 | 15,171 | 6,809 | ||||||||||||
|
Interest
expense:
|
||||||||||||||||
|
Interest
on long-term debt
|
2,606 | 3,133 | 7,248 | 6,145 | ||||||||||||
|
Dividends
on preferred stock subject to mandatory redemption
|
50 | 50 | 100 | 100 | ||||||||||||
|
Total interest expense
|
2,656 | 3,183 | 7,348 | 6,245 | ||||||||||||
|
Loss
on early extinquishment of debt
|
15,916 | - | 15,916 | - | ||||||||||||
|
(Loss)
income before (benefit) provision for income taxes
|
(10,581 | ) | 1,561 | (8,093 | ) | 564 | ||||||||||
|
(Benefit)
provision for income taxes
|
(4,454 | ) | 673 | (3,423 | ) | 441 | ||||||||||
|
Net
(loss) income
|
(6,127 | ) | 888 | (4,670 | ) | 123 | ||||||||||
|
Accretion
of Series B preferred stock
|
250 | 507 | 765 | 952 | ||||||||||||
|
Net
(loss) income available to common stockholders
|
$ | (6,377 | ) | $ | 381 | $ | (5,435 | ) | $ | (829 | ) | |||||
|
(Loss)
earnings per share available to common stockholders:
|
||||||||||||||||
|
Basic
|
$ | (0.25 | ) | $ | 0.02 | $ | (0.25 | ) | $ | (0.05 | ) | |||||
|
Diluted
|
$ | (0.25 | ) | $ | 0.02 | $ | (0.25 | ) | $ | (0.05 | ) | |||||
|
Weighted
average common stock outstanding:
|
||||||||||||||||
|
Basic
|
25,497 | 17,469 | 21,906 | 17,469 | ||||||||||||
|
Diluted
|
25,497 | 17,481 | 21,906 | 17,469 | ||||||||||||
|
ROADRUNNER
TRANSPORTATION SYSTEMS, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(Unaudited)
|
||||||||
|
(In
thousands)
|
||||||||
|
June
30,
|
December
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 3,112 | $ | 2,176 | ||||
|
Accounts
receivable, net
|
69,631 | 57,887 | ||||||
|
Deferred
income taxes
|
1,578 | 1,578 | ||||||
|
Prepaid
expenses and other current assets
|
9,215 | 8,501 | ||||||
|
Total
current assets
|
83,536 | 70,142 | ||||||
|
PROPERTY
AND EQUIPMENT, NET
|
6,968 | 7,518 | ||||||
|
OTHER
ASSETS:
|
||||||||
|
Goodwill
|
246,889 | 244,671 | ||||||
|
Other
noncurrent assets
|
8,547 | 10,950 | ||||||
|
Total
other assets
|
255,436 | 255,621 | ||||||
|
TOTAL
ASSETS
|
$ | 345,940 | $ | 333,281 | ||||
|
LIABILITIES
AND STOCKHOLDERS' INVESTMENT
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Current
maturities of long-term debt
|
$ | - | $ | 8,768 | ||||
|
Accounts
payable
|
35,769 | 31,184 | ||||||
|
Accrued
expenses and other liabilities
|
9,210 | 12,152 | ||||||
|
Total
current liabilities
|
44,979 | 52,104 | ||||||
|
LONG-TERM
DEBT, net of current maturities
|
33,950 | 130,167 | ||||||
|
OTHER
LONG-TERM LIABILITIES
|
5,211 | 4,627 | ||||||
|
PREFERRED
STOCK SUBJECT TO MANDATORY REDEMPTION
|
5,000 | 5,000 | ||||||
|
Total
liabilities
|
89,140 | 191,898 | ||||||
|
STOCKHOLDERS'
INVESTMENT:
|
||||||||
|
Common
stock $.01 par value; 100,000,000 shares authorized;
|
||||||||
|
29,945,849
and 20,284,110 shares issued and outstanding
|
299 | 203 | ||||||
|
Additional
paid-in capital
|
261,462 | 141,471 | ||||||
|
Retained
deficit
|
(4,961 | ) | (291 | ) | ||||
|
Total
stockholders' investment
|
256,800 | 141,383 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' INVESTMENT
|
$ | 345,940 | $ | 333,281 | ||||
Contact
Roadrunner
Transportation Systems, Inc.
Peter
Armbruster
Chief
Financial Officer
414-615-1648
ir@rrts.com
The
Blueshirt Group
Jonathan
Schaffer
212-551-1452