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8-K - FORM 8-K - XPO Logistics, Inc.d576506d8k.htm

Exhibit 99.1

XPO Logistics Announces Second Quarter 2013 Results

Reports 65% Organic Growth and Significant Margin Expansion in Freight Brokerage

Reaffirms Full Year Financial Outlook

GREENWICH, Conn. — July 30, 2013 — XPO Logistics, Inc. (NYSE: XPO) today announced financial results for the second quarter of 2013.

Total revenue was $137.1 million for the second quarter, a 151.4% increase from the same period in 2012. Gross margin dollars increased 128.4% year-over-year to $19.3 million, and gross margin percentage was 14.1%.

For the second quarter of 2013, the company reported a net loss of $17.4 million, compared with a net loss of $5.2 million for the same period in 2012. The net loss available to common shareholders was $18.1 million, or a loss of $1.00 per diluted share, compared with a net loss of $5.9 million, or a loss of $0.34 per diluted share, for the same period in 2012. The company’s second quarter results reflect the positive impact of acquisitions from prior periods and significant organic growth, offset by planned strategic investments in long-term value creation, transaction-related costs and litigation costs.

Earnings (loss) before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, was a loss of $12.4 million for the second quarter of 2013, compared with a loss of $3.0 million for the same period in 2012. EBITDA includes $1.1 million and $1.2 million of non-cash share-based compensation for the second quarters of 2013 and 2012, respectively. A reconciliation of EBITDA to net income is provided in the attached financial tables.

The company had $178.2 million of cash as of June 30, 2013.

Reaffirms Full Year 2013 Financial Outlook

The company has reaffirmed its full year outlook for an annual revenue run rate of more than $1 billion as of December 31, and positive EBITDA for the fourth quarter of 2013.

3PD Acquisition to Close in Third Quarter

On July 15, 2013, the company announced that it had entered into a definitive agreement to acquire all of the common stock of 3PD, Inc. (3PD) in a transaction valued at approximately $365 million. 3PD is the largest non-asset, third party provider of heavy goods, last-mile logistics in North America. The acquisition is expected to close in the third quarter of 2013, subject to customary conditions.

3PD, based in Atlanta, was founded in 2001 to capitalize on the rapid growth in last-mile logistics. 3PD provides blue chip retail shippers with customized solutions tailored to their supply chain needs, and serves small and mid-sized shippers by matching them to carriers on a transactional basis. The business has differentiated itself through its ability to assure a superb customer experience using proprietary technology and industry-leading process management.


CEO Comments

Bradley Jacobs, chairman and chief executive officer, said, “In the second quarter, we delivered a 151% increase in revenue year-over-year, and 128% more gross margin dollars. Our freight brokerage business achieved robust organic growth of 65%, driven in large part by the traction of our eight brokerage cold-starts. These locations are barely a year old on average, but they’re already generating a combined revenue run rate of over $90 million and sequential improvements in gross margin percentage. We’re in the process of opening a new mega-branch in Cincinnati with a highly experienced leader to scale it up. And our acquisition pipeline remains very active, with a current list of about 100 targets.

“Our expedited business saw pressure on margin throughout the quarter, as demand for expedited services remained soft. Capacity tightened somewhat in early July, however, and margins have expanded in recent weeks. Our freight forwarding business is outpacing industry growth by capturing more international business. Freight forwarding revenue increased 17% in the second quarter, gross margin was up 230 basis points, and EBITDA increased significantly by 157%.”

Jacobs continued, “We’ve entered the back half of the year with a lot of momentum. Our productivity per brokerage employee improved quarter-to-quarter, despite the addition of almost 100 net new hires. Our strategic and national account teams recently had major wins in truckload brokerage, as well as cross-border, less-than-truckload and expedite. And soon we’ll complete the XPO supply chain with the acquisition of 3PD’s heavy goods, last-mile capabilities. 3PD is the clear market leader in this space, with an impressive growth trajectory. We intend to scale up the business and capitalize on the rapidly growing demand for last-mile logistics. I’m pleased that we’re on track to meet our revenue outlook for a billion dollar run rate by year-end – that’s an exciting milestone in our plan to build XPO into a world-class company.”

Second Quarter 2013 Results by Business Unit

 

   

Freight brokerage: The company’s freight brokerage business generated total revenue of $95.4 million for the quarter, a 587.2% increase from the same period in 2012. Gross margin percentage was 13.2% for the quarter, compared with 11.0% for the same period in 2012, an improvement of 220 basis points. The year-over-year increases in revenue and gross margin were primarily driven by acquisitions and the expansion of the company’s brokerage cold-start locations. The operating loss was $5.0 million, compared with a loss of $825,000 a year ago, primarily reflecting an increase in SG&A costs for sales force expansion, technology and training.

 

   

Expedited transportation: The company’s expedited transportation business generated total revenue of $26.4 million for the quarter, a 2.8% increase from the same period in 2012. Gross margin percentage was 15.9% for the quarter, compared with 20.0% for the same period in 2012. The decrease in gross margin percentage primarily reflects a soft expedite environment, as well as the addition of revenue from air charter, which generates lower margins than the company’s over-the-road expedited business. Second quarter operating income was $1.2 million, compared with $2.6 million a year ago, primarily reflecting the impact of a lower gross margin percentage.

 

   

Freight forwarding: The company’s freight forwarding business generated total revenue of $19.3 million for the quarter, a 17.4% increase from the same period in 2012. The increase in revenue was primarily driven by the growth of company-owned locations and a higher volume of international shipments. Gross margin percentage was 13.3% for the quarter, an improvement of 230 basis points, compared with 11.0% for the same period in 2012. The increase in gross margin percentage was primarily driven by investments in company-owned locations. Second quarter operating income was $478,000, a 119.3% increase year-over-year. The increase in operating income reflected a higher gross margin partially offset by SG&A expenses related to cold-starts opened in prior periods.


   

Corporate: Corporate SG&A expense for the second quarter of 2013 was $10.7 million, compared with $5.4 million for the second quarter of 2012. The increase in SG&A expense was primarily driven by a larger headcount in corporate shared services and an increase in purchased services, including $1.8 million, or $0.10 per diluted share, of transaction-related costs; and $1.5 million, or $0.08 per diluted share, of litigation costs.

Six Months 2013 Financial Results

For the six months ended June 30, 2013, the company reported total revenue of $251.1 million, a 153.4% increase from the first six months of 2012.

Net loss was $31.9 million for the first six months of 2013, compared with net loss of $7.9 million for the same period last year. The company reported a six-month net loss available to common shareholders of $33.4 million, or a loss of $1.84 per diluted share, compared with a net loss of $9.4 million, or a loss of $0.56 per diluted share, for the same period in 2012.

EBITDA, a non-GAAP financial measure, was a loss of $22.1 million for the first six months of 2013, compared with a loss of $6.9 million for the same period in 2012, primarily reflecting planned investments in future value creation, including a significant increase in sales headcount year-over-year. EBITDA for the first six months of 2013 included $2.6 million, or $0.14 per diluted share, of litigation costs; $2.1 million, or $0.12 per diluted share, of transaction-related costs; and $2.1 million, or $0.12 per diluted share, in non-cash share-based compensation.

Conference Call

The company will hold a conference call on Wednesday, July 31, 2013, at 8:30 a.m. Eastern Time. Participants can call toll-free (from U.S./Canada) 1-888-895-5271; international callers dial +1-847-619-6547. A live webcast of the conference will be available on the investor relations area of the company’s website, www.xpologistics.com/investors. The conference call will be archived until August 31, 2013. To access the replay by phone, call toll-free (from U.S./Canada) 1-888-843-7419; international callers dial +1-630-652-3042. Use participant passcode 35253664.

About XPO Logistics, Inc.

XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providers of transportation logistics services in North America. The company’s three business units – freight brokerage, expedited transportation and freight forwarding – use relationships with more than 22,000 ground, sea and air carriers to serve over 8,500 customers in the manufacturing, industrial, retail, commercial, life sciences and government sectors. XPO is built to deliver constant growth in truck capacity, passionate service and technological innovation through 62 locations in the United States and Canada. www.xpologistics.com

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under Securities and Exchange Commission (“SEC”) rules, such as earnings (loss) before interest, taxes, depreciation and amortization (“EBITDA”) for the quarters ended June 30, 2013, and June 30, 2012. As required by SEC rules, we provide reconciliations of these measures to the most directly comparable measure under United States generally accepted accounting principles (“GAAP”), which are set forth in the attachments to this release. We believe that EBITDA improves comparability from period to period by removing the impact of our capital structure (interest expense from our outstanding debt), asset base (depreciation and amortization) and tax consequences. In addition to its use by management, we believe that EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of companies in our industry.


Other companies may calculate EBITDA differently, and therefore our EBITDA may not be comparable to similarly titled measures of other companies. EBITDA is not a measure of financial performance or liquidity under GAAP and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from EBITDA are significant and necessary components of the operations of our business, and, therefore, EBITDA should only be used as a supplemental measure of our operating performance.

Forward-Looking Statements

This press release includes 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, including, without limitation, our 2013 outlook with respect to annual revenue and fourth quarter 2013 EBITDA, the anticipated closing date of the acquisition of 3PD and the related financing (the “3PD Transaction”), the expected impact of the 3PD Transaction and 3PD’s anticipated growth. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, those discussed in our filings with the SEC and the following: economic conditions generally; competition; our ability to find suitable acquisition candidates and execute our acquisition strategy; the projected satisfaction of closing conditions for the 3PD Transaction; the expected closing date for the 3PD Transaction; the expected impact of the 3PD Transaction, including the expected impact on the Company’s results of operations and EBITDA; our ability to raise debt and equity capital; our ability to attract and retain key employees to execute our growth strategy, including retention of 3PD’s management team; litigation, including litigation related to misclassification of independent contractors; our ability to develop and implement a suitable information technology system; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to retain our and 3PD’s largest customers; our ability to successfully integrate 3PD and other acquired businesses; and governmental regulation. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, including our 2013 outlook, except to the extent required by law.

Investor Contact:

XPO Logistics, Inc.

Dana Gibson, +1-203-930-1470

dana.gibson@xpologistics.com

Media Contact:

Brunswick Group

Steve Lipin / Gemma Hart, +1-212-333-3810


XPO Logistics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2013     2012     2013     2012  

Revenues

   $ 137,091      $ 54,540      $ 251,090      $ 99,100   

Expenses

        

Direct expense

     117,751        46,074        215,490        83,861   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     19,340        8,466        35,600        15,239   

Sales general and administrative expense

     33,355        11,834        60,982        22,831   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (14,015     (3,368     (25,382     (7,592
  

 

 

   

 

 

   

 

 

   

 

 

 

Other expense

     167        26        58        5   

Interest expense

     3,106        3        6,170        15   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax provision

     (17,288     (3,397     (31,610     (7,612

Income tax benefit

     74        1,780        296        259   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (17,362     (5,177     (31,906     (7,871

Cumulative preferred dividends

     (743     (750     (1,486     (1,500
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss available to common shareholders

   $ (18,105   $ (5,927   $ (33,392   $ (9,371
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic loss per share

        

Net loss

   $ (1.00   $ (0.34   $ (1.84   $ (0.56

Diluted loss per share

        

Net loss

   $ (1.00   $ (0.34   $ (1.84   $ (0.56

Weighted average common shares outstanding

        

Basic weighted average common shares outstanding

     18,180        17,637        18,107        16,629   

Diluted weighted average common shares outstanding

     18,180        17,637        18,107        16,629   


XPO Logistics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

 

     June 30,     December 31,  
     2013     2012  
     (Unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 178,155      $ 252,293   

Accounts receivable, net of allowances of $1,318 and $603, respectively

     89,740        61,245   

Prepaid expenses

     2,095        1,555   

Deferred tax asset, current

     938        1,406   

Income tax receivable

     2,840        2,569   

Other current assets

     4,203        1,866   
  

 

 

   

 

 

 

Total current assets

     277,971        320,934   
  

 

 

   

 

 

 

Property and equipment, net of $6,954 and $5,323 in accumulated depreciation, respectively

     15,554        13,090   

Goodwill

     69,927        55,947   

Identifiable intangible assets, net of $6,295 and $4,592 in accumulated amortization, respectively

     30,121        22,473   

Deferred tax asset, long-term

     72        0   

Other long-term assets

     834        764   
  

 

 

   

 

 

 

Total long-term assets

     116,508        92,274   
  

 

 

   

 

 

 

Total assets

   $ 394,479      $ 413,208   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 23,591      $ 22,108   

Accrued salaries and wages

     5,570        3,516   

Accrued expenses, other

     23,733        21,123   

Current maturities of notes payable and capital leases

     850        491   

Other current liabilities

     1,548        1,789   
  

 

 

   

 

 

 

Total current liabilities

     55,292        49,027   
  

 

 

   

 

 

 

Convertible senior notes

     111,197        108,280   

Notes payable and capital leases, net of current maturities

     767        676   

Deferred tax liability, long term

     6,553        6,781   

Other long-term liabilities

     3,838        3,385   
  

 

 

   

 

 

 

Total long-term liabilities

     122,355        119,122   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred stock, $.001 par value; 10,000,000 shares; 74,275 shares issued and outstanding

     42,794        42,794   

Common stock, $.001 par value; 150,000,000 shares authorized; 18,241,217 and 18,002,985 shares issued, respectively; and 18,196,217 and 17,957,985 shares outstanding, respectively

     18        18   

Additional paid-in capital

     267,806        262,641   

Treasury stock, at cost, 45,000 shares held

     (107     (107

Accumulated deficit

     (93,679     (60,287
  

 

 

   

 

 

 

Total stockholders’ equity

     216,832        245,059   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 394,479      $ 413,208   
  

 

 

   

 

 

 


XPO Logistics, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

     Six Months Ended  
     June 30,  
     2013     2012  

Operating activities

    

Net loss

   $ (31,906   $ (7,871

Adjustments to reconcile net loss to net cash from operating activities

    

Provisions for allowance for doubtful accounts

     627        84   

Depreciation & amortization expense

     3,349        741   

Stock compensation expense

     2,147        2,266   

Gain on sale of affiliate

     (176     —     

Accretion of debt

     2,916        —     

Exchange loss

     46        —     

Changes in assets and liabilities, net of effects of acquisitions:

    

Accounts receivable

     (24,134     (5,496

Deferred tax expense

     167        1,537   

Income tax receivable

     (732     (1,388

Prepaid expenses and other current assets

     (275     (495

Other long-term assets

     (28     (18

Accounts payable

     (5,973     (1,313

Accrued expenses and other liabilities

     4,899        1,816   
  

 

 

   

 

 

 

Cash provided used by operating activities

     (49,073     (10,137
  

 

 

   

 

 

 

Investing activities

    

Acquisition of businesses, net of cash acquired

     (19,660     (3,713

Proceeds from sale of business interests

     125        —     

Payment of acquisition earn-out

     —          (450

Payment for purchases of property and equipment

     (3,864     (2,569
  

 

 

   

 

 

 

Cash Flows used by investing activities

     (23,399     (6,732
  

 

 

   

 

 

 

Financing Activities

    

Credit line, net activity

     (150     —     

Payments of notes payable and capital leases

     16        (2,018

Proceeds from stock offering, net

     —          136,961   

Proceeds from exercise of options, net

     (56     131   

Proceeds from exercise of warrants

     10        —     

Dividends paid to preferred stockholders

     (1,486     (1,500
  

 

 

   

 

 

 

Cash flows (used) provided by financing activities

     (1,666     133,574   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     —          —     

Net (decrease) increase in cash

     (74,138     116,705   

Cash and cash equivalents, beginning of period

     252,293        74,007   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 178,155      $ 190,712   
  

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

    

Cash paid during the period for interest

     3,337        15   

Cash paid during the period for income taxes

     906        159   


Freight Brokerage

Summary Financial Table

(Unaudited)

(In thousands)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2012     $ Variance     Change %     2013     2012     $ Variance     Change %  

Revenue

  $ 95,360      $ 13,877      $ 81,483        587.2   $ 173,590      $ 21,805      $ 151,785        696.1

Direct expense

               

Transportation services

    82,705        12,255        70,450        574.9     150,662        19,160        131,502        686.3

Other direct expense

    88        101        (13     -12.9     295        95        200        210.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct expense

    82,793        12,356        70,437        570.1     150,957        19,255        131,702        684.0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

    12,567        1,521        11,046        726.2     22,633        2,550        20,083        787.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expense

               

Salaries & benefits

    12,367        1,572        10,795        686.7     22,530        2,431        20,099        826.8

Purchased services

    979        266        713        268.0     1,793        328        1,465        446.6

Other SG&A expense

    3,031        432        2,599        601.6     4,926        606        4,320        712.9

Depreciation & amortization

    1,180        76        1,104        1452.6     2,194        96        2,098        2185.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expense

    17,557        2,346        15,211        648.4     31,443        3,461        27,982        808.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

  $ (4,990   $ (825   $ (4,165     504.8   $ (8,810   $ (911   $ (7,899     867.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Freight Brokerage

Key Employee Data

 

     June 30,     June 30,  
     2013     2012  

Freight Brokerage personnel

     788        92   
Note: Totals are as of period end, and primarily include the positions of shipper sales, carrier procurement and brokerage operations, and reflect the impact of recruitment and acquisitions.    

Expedited Transportation

Summary Financial Table

(Unaudited)

(In thousands)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2012     $ Variance     Change %     2013     2012     $ Variance     Change %  

Revenue

  $ 26,445      $ 25,731      $ 714        2.8   $ 50,320      $ 48,151      $ 2,169        4.5

Direct expense

               

Transportation services

    21,528        19,830        1,698        8.6     40,680        37,192        3,488        9.4

Other direct expense

    707        766        (59     -7.7     1,622        1,665        (43     -2.6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct expense

    22,235        20,596        1,639        8.0     42,302        38,857        3,445        8.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

    4,210        5,135        (925     -18.0     8,018        9,294        (1,276     -13.7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expense

               

Salaries & benefits

    2,016        1,665        351        21.1     3,961        3,325        636        19.1

Purchased services

    246        251        (5     -2.0     535        448        87        19.4

Other SG&A expense

    513        506        7        1.4     1,117        935        182        19.5

Depreciation & amortization

    248        79        169        213.9     465        164        301        183.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expense

    3,023        2,501        522        20.9     6,078        4,872        1,206        24.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  $ 1,187      $ 2,634      $ (1,447     -54.9   $ 1,940      $ 4,422      $ (2,482     -56.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note: Total depreciation and amortization for the Expedited Transportation operating segment included in both direct expense and SG&A, was $291 and $129 for the three-months ended June 30, 2013 and 2012, respectively, and $559 and $266 for the six-month periods ended June 30, 2013 and 2012, respectively.


Freight Forwarding

Summary Financial Table

(Unaudited)

(In thousands)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2012     $ Variance     Change %     2013     2012     $ Variance     Change %  

Revenue

  $ 19,338      $ 16,468      $ 2,870        17.4   $ 35,571      $ 31,925      $ 3,646        11.4

Direct expense

               

Transportation services

    14,743        12,150        2,593        21.3     26,853        23,663        3,190        13.5

Station commissions

    1,992        2,457        (465     -18.9     3,700        4,773        (1,073     -22.5

Other direct expense

    40        52        (12     -23.1     69        95        (26     -27.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct expense

    16,775        14,659        2,116        14.4     30,622        28,531        2,091        7.3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

    2,563        1,809        754        41.7     4,949        3,394        1,555        45.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expense

               

Salaries & benefits

    1,518        924        594        64.3     2,951        1,711        1,240        72.5

Purchased services

    157        146        11        7.5     247        187        60        32.1

Other SG&A expense

    317        376        (59     -15.7     720        748        (28     -3.7

Depreciation & amortization

    93        145        (52     -35.9     181        289        (108     -37.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expense

    2,085        1,591        494        31.0     4,099        2,935        1,164        39.7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  $ 478      $ 218      $ 260        119.3   $ 850      $ 459      $ 391        85.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

XPO Corporate

Summary of Selling, General & Administrative Expense

(Unaudited)

(In thousands)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2012     $ Variance     Change %     2013     2012     $ Variance     Change %  

SG&A expense

               

Salaries & benefits

  $ 4,590      $ 3,101      $ 1,489        48.0   $ 9,097      $ 6,144      $ 2,953        48.1

Purchased services

    4,532        1,207        3,325        275.5     7,154        3,643        3,511        96.4

Other SG&A expense

    1,337        1,014        323        31.9     2,696        1,685        1,011        60.0

Depreciation & amortization

    231        73        158        216.4     415        90        325        361.1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expense

  $ 10,690      $ 5,395      $ 5,295        98.1   $ 19,362      $ 11,562      $ 7,800        67.5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note: Intercompany eliminations included revenue of $4.1 million and $1.5 million for the three-months ended June 30, 2013 and 2012, respectively, as well as revenues of $8.4 million and $2.8 million for the year to date periods ended June 30, 2013 and 2012, respectively, that eliminate upon consolidation.

XPO Logistics, Inc.

Consolidated Reconciliation of EBITDA to Net Loss

(In thousands)

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2013     2012     Change %     2013     2012     Change %  

Net loss available to common shareholders

  $ (18,105   $ (5,927     205.5   $ (33,392   $ (9,371     256.3

Preferred dividends

    (743     (750     -0.9     (1,486     (1,500     -0.9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

    (17,362     (5,177     235.4     (31,906     (7,871     305.4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

    3,106        3        103433.3     6,170        15        41033.3

Income tax provision

    74        1,780        -95.8     296        259        14.3

Depreciation and amortization

    1,795        423        324.3     3,349        741        352.0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ (12,387   $ (2,971     316.9   $ (22,091   $ (6,856     222.2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note: Please refer to the “Non-GAAP Financial Measures” section of the press release.


XPO Logistics, Inc.

Consolidated Calculation of Diluted Weighted Shares Outstanding

 

     Three Months Ended     Six Months Ended  
     June 30, 2013      June 30, 2012     June 30, 2013      June 30, 2012  

Basic common stock outstanding

     18,179,570         17,636,834        18,106,564         16,629,420   
  

 

 

    

 

 

   

 

 

    

 

 

 

Potentially Dilutive Securities:

          

Shares underlying the conversion of preferred stock to common stock

     10,610,714         10,714,286        10,610,714         10,714,286   

Shares underlying the conversion of the convertible senior notes

     8,749,239         —          8,749,239         —     

Shares underlying warrants to purchase common stock

     6,262,380         6,282,659        6,302,668         6,282,659   

Shares underlying stock options to purchase common stock

     526,813         401,793        533,977         348,682   

Shares underlying restricted stock units

     436,275         559,381        418,898         613,139   
  

 

 

    

 

 

   

 

 

    

 

 

 
     26,585,421         17,958,119        26,615,496         17,958,766   
  

 

 

    

 

 

   

 

 

    

 

 

 

Diluted weighted shares outstanding

     44,764,991         35,594,953        44,722,060         34,588,186   
  

 

 

    

 

 

   

 

 

    

 

 

 

Note: For dilution purposes, GAAP requires diluted shares to be reflected on a weighted average basis, which takes into account the portion of the period in which the diluted shares were outstanding. The table above reflects the weighted average diluted shares for the periods presented. The impact of this dilution was not reflected in the earnings per share calculations on the Condensed Consolidated Statements of Operations because the impact was anti-dilutive. The treasury method was used to determine the shares underlying the warrants to purchase common stock with an average closing market price of $16.85 per share and $16.92 per share for the three-month periods ended June 30, 2013 and 2012, respectively, and $17.00 per share and $15.44 per share for the six-month periods ended June 30, 2013 and 2012, respectively.