Attached files

file filename
8-K - 8-K - Jack Cooper Holdings Corp.a16-16922_18k.htm

Exhibit 99.1

7 Jack Cooper Holdings Corp. Second Quarter 2016 Earnings Call August 17, 2016 R: 11 G: 63 B: 111 R: 165 G: 181 B: 146 R: 243 G: 154 B: 71 R: 127 G: 169 B: 207 R: 255 G: 215 B: 0 0

GRAPHIC

 


This presentation has been prepared by Jack Cooper Holdings Corp. (“JCHC” or the “Company”) and no representation or warranty, either express or implied, is being made by JCHC or any person acting on its behalf as to the accuracy or completeness of the information which is furnished to you in connection with JCHC’s presentation, whether orally or in writing, and no liability to JCHC or its affiliates shall result from the use of the information or any inaccuracies or errors therein or omissions therefrom; and nothing related to JCHC’s presentation may be relied upon as a promise or representation, whether as to the past or the future. The statements in this presentation that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," “should” and other similar expressions. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, we caution you that any of these assumptions may be inaccurate and, therefore, the Company’s actual results could differ materially from those contained herein. Additional detailed information concerning a number of factors that could cause actual results to differ from the information that management may give you is detailed in the Company’s annual report and quarterly report, which are available on our investor website. Forward-looking statements speak only as of today’s date and we do not undertake any obligation to update publicly any such statement. Non-GAAP Financial Measures EBITDA, adjusted EBITDA and margins thereon are “non-GAAP financial measures” presented as supplemental measures of the Company’s performance. They are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating its performance over time. However, EBITDA, adjusted EBITDA and margins thereon have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP. In addition, in evaluating EBITDA, adjusted EBITDA and margins thereon, you should be aware that the adjustments may vary from period to period. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. This presentation provides a reconciliation of net loss to EBITDA and adjusted EBITDA. Adjusted EBITDA for each of our segments is reconciled to segment operating income (loss), the most directly comparable GAAP performance measure. Safe Harbor Statement 1

GRAPHIC

 


Q2-2016 Operating Results Highlights 2 (a) See appendix (page 8) for a reconciliation of segment operating income (loss) to segment AEBITDA. QTD QTD YTD YTD (000's) 6/30/2016 6/30/2015 Change 6/30/2016 6/30/2015 Change JCT Revenues $ 150,485 $ 171,133 $ (20,648) $ 305,430 $ 309,055 $ (3,625) JCL Revenues 16,084 16,913 (829) 33,917 26,970 6,947 Intercompany eliminations (1,728) (921) (807) (3,389) (1,628) (1,761) Consolidated JCHC Revenues (before FSC) 164,841 187,125 (22,284) 335,958 334,397 1,561 JCT Fuel surcharge 4,348 11,168 (6,820) 9,002 21,779 (12,777) Consolidated JCHC Revenues (including FSC) $ 169,189 $ 198,293 $ (29,104) $ 344,960 $ 356,176 $ (11,216) Net loss $ (4,659) $ (17,298) $ 12,639 $ (12,272) $ (42,143) $ 29,871 Provision for income taxes 183 395 (212) 438 663 (225) Interest expense, net 10,948 11,494 (546) 22,486 21,359 1,127 Depreciation and amortization 12,547 12,826 (279) 25,451 25,522 (71) EBITDA $ 19,019 $ 7,417 $ 11,602 $ 36,103 $ 5,401 $ 30,702 EBITDA $ 19,019 $ 7,417 $ 11,602 $ 36,103 $ 5,401 $ 30,702 Other, net 447 (749) 1,196 (2,359) 2,411 (4,770) Legacy workers compensation - 226 (226) - (83) 83 (Gain) loss on disposal of property and equipment 769 689 80 1,428 1,301 127 Professional fees 16 106 (90) 74 424 (350) Stock based compensation 211 213 (2) 421 494 (73) Severance and employment agreement charges 104 33 71 732 179 553 Pension withdrawal liability 2,863 237 2,626 2,863 237 2,626 Goodwill and intangible asset impairment - 15,352 (15,352) - 15,352 (15,352) Adjusted EBITDA $ 23,429 $ 23,524 $ (95) $ 39,262 $ 25,716 $ 13,546 JCT AEBITDA (a) $ 22,621 $ 22,940 $ (319) $ 37,098 $ 25,883 $ 11,215 JCL AEBITDA (a) 1,147 781 366 2,910 298 2,612 Unallocated adjusted corporate operating expenses (339) (197) (142) (746) (465) (281) Adjusted EBITDA $ 23,429 $ 23,524 $ (95) $ 39,262 $ 25,716 $ 13,546 JCHC Net Earnings Margin (before FSC) -2.8% -9.2% 642 bp -3.7% -12.6% 895 bp JCT AEBITDA Margin (before FSC) 15.0% 13.4% 163 bp 12.1% 8.4% 377 bp JCL AEBITDA Margin 7.1% 4.6% 251 bp 8.6% 1.1% 747 bp JCHC AEBITDA Margin (before FSC) 14.2% 12.6% 164 bp 11.7% 7.7% 400 bp

GRAPHIC

 


3 Revenue decrease of $29.1 million quarter-over-quarter primarily associated with three items: Fuel surcharge reduction of $6.8 million related to declining fuel prices from 2015 to 2016 Customer plant shut-downs and other disruptions, such as the April 2016 Japanese earthquake, resulted in an estimated revenue impact of ~$9.9 million Terminal closures during Q2-2016 resulted in decreases to revenue of $7.1 million Q2-2016 vs. Q2-2015 Revenue Discussion Revenue impacts as discussed above account for $23.8 million or 82% of the quarter-over-quarter revenue variance.

GRAPHIC

 


4 We estimate that customer plant shut-downs and other disruptions, such as the April 2016 Japanese earthquake, impacted revenues by ~$9.9 million, segment operating earnings and terminal-level EBITDA by ~$3.0 million. Terminal shut-downs during the second quarter are unusual. Terminal closures resulted in quarter-over-quarter decreased revenue of $7.1 million, decreased segment operating earnings of $0.6 million net of pension withdrawal and severance, and decreased terminal-level EBITDA of $1.1 million net of pension withdrawal and severance. Pension withdrawal liability of $2.9 million associated with one terminal closure. No additional terminal closures currently planned. Q2-2016 Operating Performance Discussion Customer plant shut-downs/other disruptions and terminal closures resulted in a quarter-over-quarter revenue reduction of ~$17.0 million, an ~$3.6 million reduction to segment operating earnings and an ~$4.1 million reduction in terminal-level EBITDA.

GRAPHIC

 


5 We estimate that customer plant shut-downs and other disruptions, such as the April 2016 Japanese earthquake, impacted revenues by ~$9.9 million, segment operating earnings and terminal-level EBITDA by ~$3.0 million. Terminals closed during Q2-2016 reported year-to-date revenue of $3.3 million, year-to-date segment operating losses of $(2.6) million net of related pension withdrawal and severance, and terminal-level EBITDA of $(2.1) million, net of related pension withdrawal and severance. 2016 Year-to-Date Operating Performance Discussion Customer plant shut-downs/other disruptions and terminal closures resulted in a negative impact to segment operating earnings of ~$5.6 million and terminal-level EBITDA of ~$5.1 million, net of related pension withdrawal and severance.

GRAPHIC

 


6 Operational initiatives update The Company reached a tentative national master freight carhaul agreement with the Teamsters, which is expected to be voted upon during September 2016. Jack Cooper Holdings Corp. became an SEC registrant upon completion of Exchange Offer for 2020 notes on June 13, 2016. Liquidity: $64.0 million and $62.0 million drawn on the Credit Facility at June 30, 2016 and August 12, 2016, respectively. Other Updates

GRAPHIC

 


Appendix 7

GRAPHIC

 


Appendix: Segment Reconciliations 8 Transport Segment QTD QTD YTD YTD (000's) 6/30/2016 6/30/2015 Change 6/30/2016 6/30/2015 Change Operating income (loss) $ 6,450 $ 9,216 $ (2,766) $ 6,854 $ (976) $ 7,830 Less: Other, net 71 785 (714) 2,872 (2,181) 5,053 Plus: Depreciation and amortization 12,208 12,220 -12 24,773 24,307 466 EBITDA $ 18,729 $ 22,221 $ (3,492) $ 34,499 $ 21,150 $ 13,349 Plus (less): Other, net (71) (785) 714 (2,872) 2,181 (5,053) Loss on disposal of assets 769 689 80 1,428 1,301 127 Legacy workers’ compensation charge - 226 (226) - (83) 83 Pension withdrawal liability 2,863 237 2,626 2,863 237 2,626 Professional fees 16 106 (90) 74 424 (350) Severance and employment agreement charges 104 33 71 685 179 506 Stock based compensation 211 213 (2) 421 494 (73) Acquisition integration costs - - - - - - Transport AEBITDA $ 22,621 $ 22,940 $ (319) $ 37,098 $ 25,883 $ 11,215 Logistics Segment QTD QTD YTD YTD 6/30/2016 6/30/2015 Change 6/30/2016 6/30/2015 Change Operating income (loss) $ 869 $ (15,119) $ 15,988 $ 2,305 $ (16,152) $ 18,457 Less: Other, net (518) (36) (482) (513) (230) (283) Plus: Depreciation and amortization 278 548 -270 558 1,098 -540 EBITDA $ 629 $ (14,607) $ 15,236 $ 2,350 $ (15,284) $ 17,634 Plus (less): Other, net 518 36 482 513 230 283 Severance and employment agreement charges - - - 47 - 47 Goodwill and intangible asset impairment - 15,352 (15,352) - 15,352 (15,352) Logistics AEBITDA $ 1,147 $ 781 $ 366 $ 2,910 $ 298 $ 2,612 AEBITDA by Segment Transport AEBITDA $ 22,621 $ 22,940 (319) $ 37,098 $ 25,883 11,215 $11,215 Logistics AEBITDA 1,147 781 366 2,910 298 2,612 2,612 Unallocated adjusted corporate operating expenses (339) (197) (142) (746) (465) (281) -281 Consolidated AEBITDA $ 23,429 $ 23,524 $ (95) $ 39,262 $ 25,716 $ 13,546 $13,546 Transport Operating Earnings (Loss) Margin (before FSC) 4.3% 6.1% (184) bp 4.6% -0.6% 520 bp Logistics Operating Earnings (Loss) Margin (before FSC) 5.4% -94.0% 9,940 bp 14.3% -100.4% 11,475 bp Transport AEBITDA Margin (before FSC) 15.0% 13.4% 163 bp 12.1% 8.4% 377 bp Logistics AEBITDA Margin 7.1% 4.6% 251 bp 8.6% 1.1% 747 bp

GRAPHIC