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8-K - FORM 8-K - Roadrunner Transportation Systems, Inc. | c20919e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
ROADRUNNER TRANSPORTATION SYSTEMS REPORTS
2011 SECOND QUARTER RESULTS
2011 SECOND QUARTER RESULTS
Cudahy, WI August, 3 2011 Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading
asset-light transportation and logistics services provider, today reported financial results for
the three and six months ended June 30, 2011.
Roadrunners 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.
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands, except per share data) | 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 years 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 June 30, | Six Months Ended 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 companys 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
Companys 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 Companys 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 companys 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 companys 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 companys 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 companys most recent SEC filings.
(Tables Follow)
ROADRUNNER TRANSPORTATION SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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)
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 | ||||
Contact
Roadrunner Transportation Systems, Inc.
Peter Armbruster
Chief Financial Officer
414-615-1648
Peter Armbruster
Chief Financial Officer
414-615-1648
Vollrath Associates, Inc.
Marilyn Vollrath
414-221-0210
ir@rrts.com
Marilyn Vollrath
414-221-0210
ir@rrts.com