Roadrunner Transportation swings to Q2 earnings of US$7.4M versus year-ago loss of US$6.4M, as sales jump 30% to US$208.3MM on strong performance across all business sectors, new customer growth, pricing initiatives, acquisition of Morgan Southern
Liling Tan
CUDAHY, Wisconsin
,
August 3, 2011
(press release)
–
Roadrunner Transportation Systems, Inc. (NYSE: RRTS - News), a leading asset-light transportation and logistics services provider, today reported financial results for the three and six months ended June 30, 2011.
Roadrunner's summary financial results for the three and six months ended June 30 are highlighted below. Results for the periods ended June 30, 2010 include a one-time loss on early extinguishment of debt of $15.9 million and $1.5 million of expenses related to our initial public offering in May 2010.
(In thousands, except per share Three Months Ended Six Months Ended
data) June 30, June 30,
-------------------- --------------------
2011 2010 2011 2010
---------- --------- ---------- ---------
Total revenues $ 208,271 $ 159,770 $ 379,429 $ 302,532
========== ========= ========== =========
Net revenues (total revenues
less purchased transportation
costs) $ 51,873 $ 35,334 $ 92,664 $ 67,429
Depreciation and amortization 1,053 766 1,882 1,617
Other operating expenses 38,333 25,077 70,716 49,141
IPO related expenses 1,500 1,500
---------- --------- ---------- ---------
Operating income $ 12,487 $ 7,991 $ 20,066 $ 15,171
========== ========= ========== =========
Net income (loss) available to
common stockholders $ 7,431 $ (6,377) $ 11,831 $ (5,435)
Weighted average diluted shares
outstanding 31,522 25,497 31,457 21,906
Diluted income (loss) per share
available to common
stockholders $ 0.24 $ (0.25) $ 0.38 $ (0.25)
2011 Second Quarter Results
In discussing second quarter performance, Mark DiBlasi, President and CEO of Roadrunner, said,
"Strong performance across each of our business segments contributed to record quarterly operating income and earnings per share. Revenues increased 30.4% and net revenues expanded 46.8% from the prior year, resulting primarily from new customer growth, pricing initiatives, fuel increases, and the inclusion of our February 2011 acquisition of Morgan Southern. Excluding $1.5 million in IPO related costs that impacted our second quarter 2010 results, our operating income growth of 31.6% outpaced revenue growth despite the effects of higher fuel prices on revenues and operating costs.
LTL revenues increased $15.1 million, or 14.2%, from the prior year as the success of our yield and pricing initiatives drove an 11.3% improvement in revenue per hundredweight including fuel and 5.0% excluding fuel. New customer growth resulted in a tonnage increase of 2.7% over the prior year. Tonnage growth was flat mid-quarter as a result of sluggish freight demand, but rebounded slightly in the month of June to 4.6%. While we do not anticipate that overall economic conditions will improve significantly in the near term, we expect that our initiatives to penetrate new customers and expand into new geographic regions will continue to drive positive tonnage growth. Our LTL operating ratio improved sequentially to 93.7% in the second quarter from 95.2% in the first quarter, reflecting continued progress in mitigating the effects of rising truckload rates on linehaul costs. Excluding the impact of higher fuel costs on revenues and operating costs, our operating ratio in the second quarter of 2011 was equal with the prior year's quarter, despite a 2.5% increase in linehaul cost per mile between the two quarters.
Truckload revenues grew by $31.1 million, or 82.7%, from the prior year. Revenues from Morgan Southern (acquired in early February) and Bruenger Trucking (acquired at the end of May) accounted for $19.5 million of the increase, with the balance of $11.6 million representing organic growth of 30.9%. The impact of these acquisitions and operating leverage associated with our revenue growth led to nearly a three-fold increase in our TL operating income and an improvement in our TL operating ratio to 93.8% from 96.1% in the second quarter of 2010.
For our TMS business, continued organic growth generated a $2.5 million, or a 15.2%, increase in revenues during the quarter and a 31.7% increase in operating income from the prior year. Operating income increased at a substantially greater rate as certain new customer growth was recorded on a net revenue basis since we did not take title to that freight.
Overall, our second quarter performance was very solid and we are optimistic about the opportunities we see for the balance of the year."
2011 Second Quarter Segment Information
Roadrunner has three operating segments: less-than-truckload (LTL), truckload brokerage (TL) and transportation management solutions (TMS). The following highlights exclude intercompany eliminations and corporate expenses.
Our LTL revenues including fuel increased 14.2% to $121.4 million for the second quarter of 2011 from $106.3 million for the second quarter of 2010. LTL net revenues for the second quarter of 2011 were $29.4 million, or 24.2% of LTL revenues, compared to $26.8 million, or 25.2% of LTL revenues, for the second quarter of 2010. The decline in net revenue margin was a result of rising fuel prices while ongoing pricing initiatives more than offset a 2.5% increase in linehaul cost per mile from the second quarter of 2010. Collectively, the objective of our continuing yield and operating initiatives is to offset the impact of rising truckload rates on linehaul cost. LTL operating income was $7.7 million, or 6.3% of LTL revenues, for the second quarter of 2011 compared to $7.1 million, or 6.7% of revenues, for the second quarter of 2010.
Summary LTL operating statistics for the three and six months ended June 30 are shown below.
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
% %
2011 2010 Change 2011 2010 Change
------ ------ ------ ------ ------ ------
Operating ratio 93.7% 93.3% 0.4% 94.4% 93.8% 0.6%
Tonnage (in thousands of
tons) 327.6 318.9 2.7% 612.4 599.5 2.1%
Shipments (in thousands) 490.2 473.9 3.4% 922.0 891.9 3.4%
Revenue per hundredweight
(incl. fuel) $18.18 $16.34 11.3% $17.96 $16.23 10.7%
Revenue per hundredweight
(excl. fuel) $14.79 $14.09 5.0% $14.79 $14.06 5.2%
Weight per shipment (lbs.) 1,337 1,346 (0.7%) 1,328 1,344 (1.2%)
Linehaul cost per mile
(excl. fuel) $ 1.24 $ 1.21 2.5% $ 1.23 $ 1.19 3.4%
Note: Other than operating ratio, the statistics above do not include (i)
adjustments for undelivered freight required for financial statement
purposes in accordance with RRTS' revenue recognition policy; and (ii)
non-LTL related business captured within the LTL segment.
Roadrunner Transportation Systems Reports 2011 Second Quarter Results
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Press Release Source: Roadrunner Transportation Systems On Wednesday August 3, 2011, 4:00 pm
CUDAHY, WI--(Marketwire -08/03/11)- Roadrunner Transportation Systems, Inc. (NYSE: RRTS - News), a leading asset-light transportation and logistics services provider, today reported financial results for the three and six months ended June 30, 2011.
Roadrunner's summary financial results for the three and six months ended June 30 are highlighted below. Results for the periods ended June 30, 2010 include a one-time loss on early extinguishment of debt of $15.9 million and $1.5 million of expenses related to our initial public offering in May 2010.
(In thousands, except per share Three Months Ended Six Months Ended
data) June 30, June 30,
-------------------- --------------------
2011 2010 2011 2010
---------- --------- ---------- ---------
Total revenues $ 208,271 $ 159,770 $ 379,429 $ 302,532
========== ========= ========== =========
Net revenues (total revenues
less purchased transportation
costs) $ 51,873 $ 35,334 $ 92,664 $ 67,429
Depreciation and amortization 1,053 766 1,882 1,617
Other operating expenses 38,333 25,077 70,716 49,141
IPO related expenses 1,500 1,500
---------- --------- ---------- ---------
Operating income $ 12,487 $ 7,991 $ 20,066 $ 15,171
========== ========= ========== =========
Net income (loss) available to
common stockholders $ 7,431 $ (6,377) $ 11,831 $ (5,435)
Weighted average diluted shares
outstanding 31,522 25,497 31,457 21,906
Diluted income (loss) per share
available to common
stockholders $ 0.24 $ (0.25) $ 0.38 $ (0.25)
2011 Second Quarter Results
In discussing second quarter performance, Mark DiBlasi, President and CEO of Roadrunner, said,
"Strong performance across each of our business segments contributed to record quarterly operating income and earnings per share. Revenues increased 30.4% and net revenues expanded 46.8% from the prior year, resulting primarily from new customer growth, pricing initiatives, fuel increases, and the inclusion of our February 2011 acquisition of Morgan Southern. Excluding $1.5 million in IPO related costs that impacted our second quarter 2010 results, our operating income growth of 31.6% outpaced revenue growth despite the effects of higher fuel prices on revenues and operating costs.
LTL revenues increased $15.1 million, or 14.2%, from the prior year as the success of our yield and pricing initiatives drove an 11.3% improvement in revenue per hundredweight including fuel and 5.0% excluding fuel. New customer growth resulted in a tonnage increase of 2.7% over the prior year. Tonnage growth was flat mid-quarter as a result of sluggish freight demand, but rebounded slightly in the month of June to 4.6%. While we do not anticipate that overall economic conditions will improve significantly in the near term, we expect that our initiatives to penetrate new customers and expand into new geographic regions will continue to drive positive tonnage growth. Our LTL operating ratio improved sequentially to 93.7% in the second quarter from 95.2% in the first quarter, reflecting continued progress in mitigating the effects of rising truckload rates on linehaul costs. Excluding the impact of higher fuel costs on revenues and operating costs, our operating ratio in the second quarter of 2011 was equal with the prior year's quarter, despite a 2.5% increase in linehaul cost per mile between the two quarters.
Truckload revenues grew by $31.1 million, or 82.7%, from the prior year. Revenues from Morgan Southern (acquired in early February) and Bruenger Trucking (acquired at the end of May) accounted for $19.5 million of the increase, with the balance of $11.6 million representing organic growth of 30.9%. The impact of these acquisitions and operating leverage associated with our revenue growth led to nearly a three-fold increase in our TL operating income and an improvement in our TL operating ratio to 93.8% from 96.1% in the second quarter of 2010.
For our TMS business, continued organic growth generated a $2.5 million, or a 15.2%, increase in revenues during the quarter and a 31.7% increase in operating income from the prior year. Operating income increased at a substantially greater rate as certain new customer growth was recorded on a net revenue basis since we did not take title to that freight.
Overall, our second quarter performance was very solid and we are optimistic about the opportunities we see for the balance of the year."
2011 Second Quarter Segment Information
Roadrunner has three operating segments: less-than-truckload (LTL), truckload brokerage (TL) and transportation management solutions (TMS). The following highlights exclude intercompany eliminations and corporate expenses.
Our LTL revenues including fuel increased 14.2% to $121.4 million for the second quarter of 2011 from $106.3 million for the second quarter of 2010. LTL net revenues for the second quarter of 2011 were $29.4 million, or 24.2% of LTL revenues, compared to $26.8 million, or 25.2% of LTL revenues, for the second quarter of 2010. The decline in net revenue margin was a result of rising fuel prices while ongoing pricing initiatives more than offset a 2.5% increase in linehaul cost per mile from the second quarter of 2010. Collectively, the objective of our continuing yield and operating initiatives is to offset the impact of rising truckload rates on linehaul cost. LTL operating income was $7.7 million, or 6.3% of LTL revenues, for the second quarter of 2011 compared to $7.1 million, or 6.7% of revenues, for the second quarter of 2010.
Summary LTL operating statistics for the three and six months ended June 30 are shown below.
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
% %
2011 2010 Change 2011 2010 Change
------ ------ ------ ------ ------ ------
Operating ratio 93.7% 93.3% 0.4% 94.4% 93.8% 0.6%
Tonnage (in thousands of
tons) 327.6 318.9 2.7% 612.4 599.5 2.1%
Shipments (in thousands) 490.2 473.9 3.4% 922.0 891.9 3.4%
Revenue per hundredweight
(incl. fuel) $18.18 $16.34 11.3% $17.96 $16.23 10.7%
Revenue per hundredweight
(excl. fuel) $14.79 $14.09 5.0% $14.79 $14.06 5.2%
Weight per shipment (lbs.) 1,337 1,346 (0.7%) 1,328 1,344 (1.2%)
Linehaul cost per mile
(excl. fuel) $ 1.24 $ 1.21 2.5% $ 1.23 $ 1.19 3.4%
Note: Other than operating ratio, the statistics above do not include (i)
adjustments for undelivered freight required for financial statement
purposes in accordance with RRTS' revenue recognition policy; and (ii)
non-LTL related business captured within the LTL segment.
For the TL segment, revenues increased 82.7% to $68.7 million for the second quarter of 2011 from $37.6 million for the second quarter of 2010. The improvement was primarily due to increases in market pricing and load growth, the expansion of the company's TL brokerage agent network, and the acquisitions of Morgan Southern and Bruenger Trucking. For the second quarter, Morgan Southern and Bruenger Trucking together contributed revenues of $19.5 million to the TL segment. Overall, TL net revenues for the second quarter of 2011 were $17.6 million, or 25.5% of TL revenues, compared to $4.3 million, or 11.4% of TL revenues, for the second quarter of 2010. TL operating income was $4.2 million, or 6.2% of TL revenues, for the second quarter of 2011 compared to $1.5 million, or 3.9% of revenues, for the second quarter of 2010.
For the TMS segment, revenues for the second quarter of 2011 increased 15.2% to $19.0 million from $16.5 million for the second quarter of 2010. TMS net revenues for the second quarter of 2011 were $4.9 million, or 25.8% of TMS revenues, compared to $4.3 million, or 25.9% of TMS revenues, for the second quarter of 2010. The improvement in TMS operating performance during the quarter was primarily attributable to new and existing customer growth. TMS operating income was $1.7 million, or 9.1% of TMS revenues, for the second quarter of 2011, compared to $1.3 million, or 7.9% of TMS revenues, for the second quarter of 2010.
Conference Call
A conference call is scheduled for Wednesday, August 3, 2011 at 4:15 p.m. Eastern Time. To access the conference call, please dial 866-203-3206 (U.S.) or 617-213-8848 (International) approximately 10 minutes prior to the start of the call. Callers will be prompted for passcode 27753651. The conference call will also be available via live webcast under the Investor Relations section of the Company's website, www.rrts.com.
If you are unable to listen to the live call, a replay will be available through August 10, 2011, and can be accessed by dialing 888-286-8010 (U.S.) or 617-801-6888 (International). Callers will be prompted for passcode 62785307. 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.
Roadrunner is a leading asset-light transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload, transportation management solutions, intermodal solutions, and domestic and international air. For more information, please visit RRTS' website, 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, risks related to the integration of acquired companies, competition in the transportation industry, the impact of the current economic environment, 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,
-------------------- --------------------
2011 2010 2011 2010
---------- --------- ---------- ---------
Revenues $ 208,271 $ 159,770 $ 379,429 $ 302,532
Operating expenses:
Purchased transportation costs 156,398 124,436 286,765 235,103
Personnel and related benefits 20,323 15,420 38,058 29,688
Other operating expenses 17,904 9,657 32,338 19,121
Depreciation and amortization 1,053 766 1,882 1,617
Acquisition transaction
expenses 106 - 320 332
IPO related expenses - 1,500 - 1,500
---------- --------- ---------- ---------
Total operating expenses 195,784 151,779 359,363 287,361
---------- --------- ---------- ---------
Operating income 12,487 7,991 20,066 15,171
Interest expense:
Interest on long-term debt 451 2,606 884 7,248
Dividends on preferred stock
subject to mandatory
redemption 50 50 100 100
---------- --------- ---------- ---------
Total interest expense 501 2,656 984 7,348
---------- --------- ---------- ---------
Loss on early extinguishment of
debt - 15,916 - 15,916
---------- --------- ---------- ---------
Income (loss) before provision
for income taxes 11,986 (10,581) 19,082 (8,093)
Provision (benefit) for income
taxes 4,555 (4,454) 7,251 (3,423)
---------- --------- ---------- ---------
Net income (loss) 7,431 (6,127) 11,831 (4,670)
Accretion of Series B preferred
stock - 250 - 765
---------- --------- ---------- ---------
Net income (loss) available to
common stockholders $ 7,431 $ (6,377) $ 11,831 $ (5,435)
========== ========= ========== =========
Earnings (loss) per share
available to common
stockholders:
Basic $ 0.25 $ (0.25) $ 0.39 $ (0.25)
========== ========= ========== =========
Diluted $ 0.24 $ (0.25) $ 0.38 $ (0.25)
========== ========= ========== =========
Weighted average common stock
outstanding:
Basic 30,285 25,497 30,227 21,906
========== ========= ========== =========
Diluted 31,522 25,497 31,457 21,906
========== ========= ========== =========
ROADRUNNER TRANSPORTATION SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share amounts)
June 30, December 31,
2011 2010
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,417 $ 996
Accounts receivable, net 94,778 73,222
Deferred income taxes 6,367 6,367
Prepaid expenses and other current assets 13,308 10,414
-------------- --------------
Total current assets 115,870 90,999
-------------- --------------
PROPERTY AND EQUIPMENT, NET 19,997 6,894
OTHER ASSETS:
Goodwill 266,618 246,888
Other noncurrent assets 4,373 3,516
-------------- --------------
Total other assets 270,991 250,404
-------------- --------------
TOTAL ASSETS $ 406,858 $ 348,297
============== ==============
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $ 7,500 $ -
Accounts payable 43,413 37,241
Accrued expenses and other liabilities 14,676 11,375
-------------- --------------
Total current liabilities 65,589 48,616
LONG-TERM DEBT, net of current maturities 36,500 20,500
OTHER LONG-TERM LIABILITIES 21,248 8,492
PREFERRED STOCK SUBJECT TO MANDATORY
REDEMPTION 5,000 5,000
-------------- --------------
Total liabilities 128,337 82,608
-------------- --------------
STOCKHOLDERS' INVESTMENT:
Common stock $.01 par value; 100,000 shares
authorized; 30,480 and 30,147 shares issued
and outstanding 305 301
Additional paid-in capital 263,085 262,088
Retained earnings 15,131 3,300
-------------- --------------
Total stockholders' investment 278,521 265,689
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
INVESTMENT $ 406,858 $ 348,297
============== ==============
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