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8-K - FORM 8-K - XPO Logistics, Inc.d534330d8k.htm
EX-99.2 - EX-99.2 - XPO Logistics, Inc.d534330dex992.htm
Management Presentation
May 7, 2013
Exhibit 99.1

This presentation contains, and XPO Logistics, Inc. (the “Company”) may from time to time make, written or oral “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than statements of historical facts, made in this presentation that address
activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as
future capital expenditures (including the amount and nature thereof), finding suitable merger or acquisition candidates, expansion
and growth of the Company’s business and operations, the Company’s 2013 outlook, and other such matters, are forward-looking
statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and
its perception of historical trends, current conditions and expected future developments as well as other factors it believes are
appropriate in the circumstances. In some cases, forward-looking statements can be identified by the use of forward-looking terms
such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the
negative of these terms or other comparable terms. Investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements. Factors that could adversely affect actual results and performance include, among
others, economic conditions generally; competition; the Company’s ability to find suitable acquisition candidates and execute its
acquisition strategy; the Company’s ability to raise capital; the Company’s ability to attract and retain key employees to execute its
growth strategy; the Company’s ability to develop and implement a suitable information technology system; the Company’s ability to
maintain positive relationships with its network of third-party transportation providers; litigation; and governmental regulation.
Additional factors that could cause actual results to differ materially from those projected in the forward-looking statements can be
found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and in the Company’s other
filings with the Securities and Exchange Commission (the “SEC”). This presentation should be read in conjunction with the
Company’s filings with the SEC, which are available to the public over the Internet at and the Company’s website All forward-looking statements made in this presentation speak only as of the date of this presentation. All
forward-looking statements made in this presentation are qualified by these cautionary statements and there can be no assurance
that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will
have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligation to
update any such forward-looking statements, including its 2013 outlook.

A Large Market Opportunity
Sources: American Trucking Association, Armstrong & Associates, EVE Partners LLC
Worldwide logistics:
>$3 trillion
U.S. logistics:
>$1 trillion
U.S. trucking:
~$350 billion
U.S. truck brokerage
~$50 billion

Long-term outsourcing trend
Brokers add efficiency to both shippers and carriers
Shippers gain access to thousands of carriers
Carriers gain access to millions of loads
85% of shipments are not presently handled by brokers
$300 billion untapped opportunity
Truck Brokerage Growing at 2x to 3x GDP
Sources: American Trucking Association, Armstrong & Associates
We expect 15% penetration to increase

More than 10,000 licensed brokers in the U.S.
Only about 25 brokers with more than $200 million in revenue
Large potential acquisition universe
Lack of working capital can motivate sellers
Brokerage Is a Highly Fragmented Market
Source: Armstrong & Associates

The XPO Growth Strategy
On track or ahead of plan with all parts of the strategy
Build a multi-billion dollar transportation and logistics
service provider
Acquire attractive companies that are highly scalable
Open cold-starts in prime recruitment areas
Significantly scale up and optimize operations
Instill a passionate, world-class culture of customer service

Major Accomplishments in 17 Months
Grew footprint to 62 locations
Completed seven strategic acquisitions
Opened 18 cold-starts, eight of them in freight brokerage
Established national operations center
Increased overall headcount from 208 to more than 1,000
Over 790 customer-facing employees
Targeting 1,600 total employees by year-end 2013

Major Accomplishments in 17 Months
Foundation in place for a much larger company
Implemented leading edge training programs
Introduced scalable IT platform and three major upgrades
Established strategic accounts program
Raised $289 million in common stock and convertible debt
Dynamic team culture, hungry for growth

Capitalize on attractive acquisition universe
Aggressively expand sales force
Connect to entire organization via XPO technology
Draw on shared capacity
Cross-sell services company-wide
Gain customers, carriers, lane and pricing histories with
each acquisition
Strategy Part One: Acquisitions

Acquired May 2013
Highly scalable freight brokerage business
TTM revenue of $28 million (3/31/13)
Retained owner Sean Snow to grow the operation
Former president of England Logistics
Three locations serve diversified customer base
Salt Lake City will become a mega-branch
Scale up Minneapolis and Louisville
Acquired Interide Logistics

Acquired October 2012
28-year-old freight brokerage business
TTM revenue of $124 million (9/30/12)
Specializes in Fortune 500 customers
Locations in Gainesville (Georgia); Reno; Chicago; Dallas
Fast growth, led by industry veterans
Retained experienced management
Acquired Turbo Logistics

Interide Logistics, freight brokerage (May 2013)
Covered Logistics, freight brokerage (Feb. 2013)
East Coast Air Charter, air expedited (Feb. 2013)
Turbo Logistics, freight brokerage (Oct. 2012)
BirdDog Logistics, freight brokerage (Oct. 2012)
Kelron Logistics, freight brokerage (Aug. 2012)
Continental Freight Services, freight brokerage (May 2012)
On Track With Acquisitions

Opened 18 cold-starts to date
Eight in freight brokerage
Nine in freight forwarding
One in expedite
Open branches with strong leaders from the industry
Position in prime recruitment areas
Scale up rapidly by adding salespeople
Strategy Part Two: Cold-starts

Rapidly expand sales force with aggressive recruiting and
on-boarding, including off-site training
Identify branches capable of mega-growth:
Charlotte, North Carolina
Chicago, Illinois
Gainesville, Georgia
Salt Lake City, Utah
Drive operational efficiency through shared services
Accelerate sales and marketing
Strategy Part Three: Scale and Optimization

Customers Will Drive Growth
$50 billion addressable market and growing
Diversified customer base of manufacturing, industrial, retail,
commercial, life sciences, government-related
Divisional cross-sell to new and existing customers
Differentiate as a world-class customer service organization
Single point of contact for each prospect in our database
Source: EVE Partners LLC

Differentiate XPO through superior technology
Purchase transportation more efficiently as data pool grows
Introduced proprietary freight optimizer software in 2012
2012 enhancements: advanced load-covering and pricing tools
2013 enhancements to date: new carrier rating engine and
LTL upgrades
2013 agenda: new customer and carrier portals
Scalable Technology Platform

Founded and led four highly successful companies
United Waste stock outperformed S&P 500 by 5.6x from 1992 to 1997
United Rentals stock outperformed S&P 500 by 2.2x from 1997 to 2007
CEO Bradley S. Jacobs

Highly Skilled Management Team
Partial list below
NCR, Avery Dennison, Arrow Electronics
AutoNation, Skadden Arps
Oakleaf Waste Management
Echo Global Logistics
Electrolux, Union Pacific, Odyssey Logistics
United Rentals, United Waste
Compass Group
Goldman Sachs, UBS, JPMorgan Chase
C.H. Robinson, Knight Brokerage
Stifel Nicolaus, Alex. Brown
C.H. Robinson, American Backhaulers
Sean Fernandez
Chief Operating Officer
Gordon Devens
General Counsel
Mario Harik
Chief Information Officer
David Rowe
Chief Technology Officer
Lou Amo
VP, Carrier Procurement
Troy Cooper
SVP, Operations
John Tuomala
VP, Talent Management
Scott Malat
Chief Strategy Officer
Greg Ritter
SVP, Strategic Accounts
John Hardig
Chief Financial Officer
Marie Fields
Director of Training
The full management team can be found on

Financial Overview

2011 revenue of $177 million
2012 revenue of $279 million
Currently in excess of $500 million annual revenue run rate
Q1 2013 total revenue: $114 million* –
up 156% YOY
Freight brokerage: $78.2 million –
up 887%
Expedited transportation: $23.9 million –
up 6.5%
Freight forwarding: $16.2 million –
up 5%
Approximately $206 million cash as of March 31, 2013
Key Financial Statistics
* Net of intercompany eliminations
Source: Company data

Annual revenue run rate of more than $1 billion as of
December 31
At least $300 million of acquired historical annual revenue
Positive EBITDA in Q4 2013
2013 Financial Outlook

Incentivized Management
Equity ownership aligns management team with shareholders
Management and directors own 54% of the company
Common Stock Equivalent Capitalization (as of 3/31/13)
Common Shares
18.0 million
Preferred Shares
10.6 million
Warrants (Strike Price $7 per share)
10.7 million (6.3 million dilutive)
Convertible senior notes
8.7 million shares
Stock options and RSUs
1.0 million shares dilutive
Fully Diluted Shares Outstanding
44.6 million shares
Based on SEC beneficial ownership calculation
Dilutive effect of warrants calculated using treasury method (avg. market close price of $17.15 for Q1 2013); total warrant proceeds of $75 million
Assumes conversion in full of $143.75 million in aggregate principal amount of convertible senior notes issued in September and October 2012
Dilutive effect of Q1 2013 weighted average outstanding RSUs and stock options calculated using treasury method (avg. market close price of
$17.15 for Q1 2013)


Large, growing, fragmented industry
Robust acquisition pipeline
Significant growth potential through cold-starts
Well-defined process to scale up operations
Passionate, world-class culture of customer service
Strong Fundamentals for Value Creation