Roadrunner Transportation Systems, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - Roadrunner Transportation Systems, Inc.	rrts-20188xkonnewsegments.htm

Exhibit 99.1



(In thousands, except for %'s)	Three Months Ended June 30, 2017
	TES		%		LTL			%		Ascent		%		Corporate/ Eliminations			Total
Revenues	$	262,797	49.5	%	$	121,968		23.0	%	$	148,088	27.9	%	$	(2,274	)	$	530,579
Operating expenses:
Purchased transportation costs	165,544		63.0	%	86,792			71.2	%	108,370		73.2	%	(2,274		)	358,432
Personnel and related benefits	38,029		14.5	%	17,922			14.7	%	15,635		10.6	%	4,086			75,672
Other operating expenses	49,571		18.9	%	19,565			16.0	%	15,235		10.3	%	10,387			94,758
Depreciation and amortization	6,197		2.4	%	953			0.8	%	1,631		1.1	%	429			9,210
Total operating expenses	259,341		98.7	%	125,232			102.7	%	140,871		95.1	%	12,628			538,072
Operating income (loss)	3,456		1.3	%	(3,264		)	(2.7	)%	7,217		4.9	%	(14,902		)	(7,493		)
Total interest expense																	28,355
Loss from debt extinguishment																	9,827
Loss before income taxes																	(45,675		)
Benefit from income taxes																	(7,812		)
Net loss																	$	(37,863	)

Total Assets	$	436,977			$	92,292				$	339,787			$	75,371		$	944,427

Capital expenditures	$	2,047			$	387				$	289			$	625		$	3,348



(In thousands)	Three Months Ended June 30, 2017
	TES			LTL			Ascent		Corporate/ Eliminations			Total			Less: Unitrans (2)		Total w/o Unitrans
Net (loss) income	$	3,475		$	(3,312	)	$	7,181	$	(45,207	)	$	(37,863	)	2,026		$	(39,889	)
Plus: Total interest expense	(19		)	48			36		28,290			28,355			—		28,355
Plus: Benefit from income taxes	—			—			—		(7,812		)	(7,812		)	—		(7,812		)
Plus: Depreciation and amortization	6,197			953			1,631		429			9,210			295		8,915
Plus: Long-term incentive compensation expenses	—			—			—		659			659			—		659
Plus: Loss on debt extinguishments	—								9,827			9,827					9,827
Plus: Restructuring and restatement costs	—			—			—		9,052			9,052			—		9,052
Adjusted EBITDA⁽¹⁾	$	9,653		$	(2,311	)	$	8,848	$	(4,762	)	$	11,428		$	2,321	$	9,107



(In thousands, except for %'s)	Three Months Ended September 30, 2017
	TES			%		LTL			%		Ascent		%		Corporate/ Eliminations			Total
Revenues	$	260,536		50.0	%	$	117,618		22.6	%	$	145,296	27.9	%	$	(2,017	)	$	521,433
Operating expenses:
Purchased transportation costs	169,103			64.9	%	84,249			71.6	%	107,156		73.8	%	(2,028		)	358,480
Personnel and related benefits	37,279			14.3	%	17,597			15.0	%	14,832		10.2	%	3,555			73,263
Other operating expenses	49,405			19.0	%	23,017			19.6	%	15,904		10.9	%	11,797			100,123
Depreciation and amortization	6,484			2.5	%	924			0.8	%	1,471		1.0	%	440			9,319
Gain from sale of Unitrans	—			—	%	—			—	%	—		—	%	(35,440		)	(35,440		)
Impairment charges	—			—	%	—			—	%	4,402		3.0	%	—			4,402
Total operating expenses	262,271			100.7	%	125,787			106.9	%	143,765		98.9	%	(21,676		)	510,147
Operating income (loss)	(1,735		)	(0.7	)%	(8,169		)	(6.9	)%	1,531		1.1	%	19,659			11,286
Total interest expense																		10,502
Loss from debt extinguishment																		6,049
Loss before income taxes																		(5,265		)
Benefit from income taxes																		4,788
Net loss																		$	(10,053	)

Total Assets	$	434,914				$	67,827				$	261,325			$	98,445		$	862,511

Capital expenditures	$	1,924				$	270				$	550			$	1,190		$	3,934



(In thousands)	Three Months Ended September 30, 2017
	TES			LTL			Ascent		Corporate/ Eliminations			Total			Less: Unitrans (2)		Total w/o Unitrans
Net (loss) income	$	(1,720	)	$	(8,206	)	$	1,496	$	(1,623	)	$	(10,053	)	1,339		$	(11,392	)
Plus: Total interest expense	(15		)	37			35		10,445			10,502			—		10,502
Plus: Benefit from income taxes	—			—			—		4,788			4,788			—		4,788
Plus: Depreciation and amortization	6,484			924			1,471		440			9,319			230		9,089
Plus: Impairment charges							4,402					4,402					4,402
Plus: Long-term incentive compensation expenses	—			—			—		541			541			—		541
Plus: Gain on sale of Unitrans									(35,440		)	(35,440		)			(35,440		)
Plus: Loss on debt extinguishments	—								6,049			6,049					6,049
Plus: Restructuring and restatement costs	—			—			—		6,841			6,841			—		6,841
Adjusted EBITDA⁽¹⁾	$	4,749		$	(7,245	)	$	7,404	$	(7,959	)	$	(3,051	)	$	1,569	$	(4,620	)



(In thousands, except for %'s)	Three Months Ended December 31, 2017
	TES		%		LTL			%		Ascent		%		Corporate/ Eliminations			Total
Revenues	$	316,325	56.5	%	$	115,157		20.6	%	$	131,367	23.4	%	$	(2,490	)	$	560,359
Operating expenses:
Purchased transportation costs	219,039		69.2	%	84,217			73.1	%	96,419		73.4	%	(2,494		)	397,181
Personnel and related benefits	37,218		11.8	%	18,187			15.8	%	12,355		9.4	%	5,820			73,580
Other operating expenses	47,501		15.0	%	23,467			20.4	%	15,276		11.6	%	15,776			102,020
Depreciation and amortization	6,578		2.1	%	1,515			1.3	%	1,207		0.9	%	613			9,913
Total operating expenses	310,336		98.1	%	127,386			110.6	%	125,257		95.3	%	19,715			582,694
Operating income (loss)	5,989		1.9	%	(12,229		)	(10.6	)%	6,110		4.7	%	(22,205		)	(22,335		)
Total interest expense																	18,667
Loss before income taxes																	(41,002		)
Benefit from income taxes																	(17,675		)
Net loss																	$	(23,327	)

Total Assets	$	458,945			$	79,065				$	271,400			$	66,633		$	876,043

Capital expenditures	$	4,518			$	740				$	276			$	4,964		$	10,498



(In thousands)	Three Months Ended December 31, 2017
	TES		LTL			Ascent		Corporate/ Eliminations			Total
Net (loss) income	$	5,982	$	(12,261	)	$	6,077	$	(23,125	)	$	(23,327	)
Plus: Total interest expense	7		32			33		18,595			18,667
Plus: Benefit from income taxes	—		—			—		(17,675		)	(17,675		)
Plus: Depreciation and amortization	6,578		1,515			1,207		613			9,913
Plus: Long-term incentive compensation expenses	—		—			—		640			640
Plus: Restructuring and restatement costs	—		—			—		8,730			8,730
Adjusted EBITDA⁽¹⁾	$	12,567	$	(10,714	)	$	7,317	$	(12,222	)	$	(3,052	)



(In thousands, except for %'s)	Twelve Months Ended December 31, 2017
	TES		%		LTL			%		Ascent		%		Corporate/ Eliminations			Total
Revenues	$	1,067,145	51.0	%	$	463,519		22.2	%	$	570,223	27.3	%	$	(9,596	)	$	2,091,291
Operating expenses:
Purchased transportation costs	690,620		64.7	%	331,177			71.4	%	418,170		73.3	%	(9,589		)	1,430,378
Personnel and related benefits	150,581		14.1	%	70,521			15.2	%	58,196		10.2	%	17,627			296,925
Other operating expenses	194,420		18.2	%	83,851			18.1	%	60,997		10.7	%	54,463			393,731
Depreciation and amortization	25,535		2.4	%	4,353			0.9	%	5,965		1.0	%	1,894			37,747
Gain from sale of Unitrans	—		—	%	—			—	%	—		—	%	(35,440		)	(35,440		)
Impairment charges	—		—	%	—			—	%	4,402		0.8	%	—			4,402
Total operating expenses	1,061,156		99.4	%	489,902			105.7	%	547,730		96.1	%	28,955			2,127,743
Operating income (loss)	5,989		0.6	%	(26,383		)	(5.7	)%	22,493		3.9	%	(38,551		)	(36,452		)
Total interest expense																	64,049
Loss from debt extinguishment																	15,876
Loss before income taxes																	(116,377		)
Benefit from income taxes																	(25,191		)
Net loss																	$	(91,186	)

Total Assets	$	458,945			$	79,065				$	271,400			$	66,633		$	876,043

Capital expenditures	$	11,833			$	1,641				$	1,397			$	6,839		$	21,710



(In thousands)	Twelve Months Ended December 31, 2017
	TES			LTL			Ascent		Corporate/ Eliminations			Total			Less: Unitrans (2)		Total w/o Unitrans
Net (loss) income	$	6,033		$	(26,578	)	$	22,350	$	(92,991	)	$	(91,186	)	5,792		$	(96,978	)
Plus: Total interest expense	(44		)	195			143		63,755			64,049			—		64,049
Plus: Benefit from income taxes	—			—			—		(25,191		)	(25,191		)	—		(25,191		)
Plus: Depreciation and amortization	25,535			4,353			5,965		1,894			37,747			819		36,928
Plus: Impairment charges	—			—			4,402		—			4,402			—		4,402
Plus: Long-term incentive compensation expenses	—			—			—		2,450			2,450			—		2,450
Plus: Gain on sale of Unitrans	—			—			—		(35,440		)	(35,440		)	—		(35,440		)
Plus: Loss on debt extinguishments	—			—			—		15,876			15,876			—		15,876
Plus: Restructuring and restatement costs	—			—			—		32,321			32,321			—		32,321
Adjusted EBITDA⁽¹⁾	$	31,524		$	(22,030	)	$	32,860	$	(37,326	)	$	5,028		$	6,611	$	(1,583	)

⁽¹⁾EBITDA represents earnings before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, losses from debt extinguishments, restructuring and restatement costs associated with legal matters (including our internal investigation, SEC compliance and debt restructuring costs), and adjustments to contingent purchase obligations. We use Adjusted EBITDA as a supplemental measure in evaluating our operating performance and when determining executive incentive compensation. We believe Adjusted EBITDA is useful to investors in evaluating our performance compared to other companies in our industry because it assists in analyzing and benchmarking the performance and value of a business. The calculation of Adjusted EBITDA eliminates the effects of financing, income taxes, and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. Although our management uses Adjusted EBITDA as a financial measure to assess the performance of our business compared to that of others in our industry, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:


•	Adjusted EBITDA does not reflect our cash expenditures, future requirements for capital expenditures, or contractual commitments;


•	Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;


•	Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt or dividend payments on our preferred stock;


•	Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and


•	Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our results of operations under GAAP.

⁽²⁾On September 15, 2017, the Company completed the sale of its wholly-owned Subsidiary Unitrans, Inc. ("Unitrans"). Adjusted EBITDA without Unitrans is being shown for comparability purposes with future periods.



(Dollars in thousands)
	2016					2015
Revenues:
TES	$	990,665		48.7	%	$	833,430		41.8	%
LTL	461,540			22.7	%	515,328			25.9	%
Ascent	597,159			29.4	%	673,574			33.8	%
Eliminations	(16,164		)	(0.8	)%	(30,166		)	(1.5	)%
Total	2,033,200			100.0	%	1,992,166			100.0	%
Purchased transportation costs:
TES	613,847			62.0	%	474,526			56.9	%
LTL	320,439			69.4	%	357,124			69.3	%
Ascent	445,935			74.7	%	508,912			75.6	%
Eliminations	(16,166		)	(0.8	)%	(30,166		)	(1.5	)%
Total	1,364,055			67.1	%	1,310,396			65.8	%
Other operating expenses ⁽¹⁾:
TES	333,503			33.7	%	289,973			34.8	%
LTL	143,337			31.1	%	139,965			27.2	%
Ascent	130,323			21.8	%	125,799			18.7	%
Corporate	53,950			2.7	%	32,036			1.6	%
Total	661,113			32.5	%	587,773			29.5	%
Depreciation and amortization:
TES	25,872			2.6	%	21,040			2.5	%
LTL	4,052			0.9	%	2,801			0.5	%
Ascent	6,688			1.1	%	6,449			1.0	%
Corporate	1,533			0.1	%	1,336			0.1	%
Total	38,145			1.9	%	31,626			1.6	%
Impairment charges:
TES	133,988			13.5	%	—			—	%
LTL	197,312			42.8	%	—			—	%
Ascent	42,361			7.1	%	—			—	%
Corporate	—			—	%	—			—	%
Total	373,661			18.4	%	—			—	%
Operating (loss) income:
TES	(116,545		)	(11.8	)%	47,891			5.8	%
LTL	(203,600		)	(44.1	)%	15,438			3.0	%
Ascent	(28,148		)	(4.7	)%	32,414			4.8	%
Corporate	(55,481		)	(2.7	)%	(33,372		)	(1.7	)%
Total	(403,774		)	(19.9	)%	62,371			3.1	%
Total interest expense	22,827			1.1	%	19,439			1.0	%
Loss on early extinguishment of debt	—			—	%	—			—	%
(Loss) income before income taxes	(426,601		)	(21.0	)%	42,932			2.2	%
(Benefit from) provision for income taxes	(66,281		)	(3.3	)%	17,312			0.9	%
Net (loss) income	$	(360,320	)	(17.7	)%	$	25,620		1.3	%

Capital expenditures:
TES	$	7,978				$	44,606
LTL	4,051					11,367
Ascent	5,465					4,350
Corporate	79					2,078
Total	$	17,573				$	62,401

1) Reflects the sum of personnel and related benefits, other operating expenses, and acquisition and transaction expenses.




	2016			2015
Total assets:
TES	$	436,237		$	559,716
LTL	129,899			330,203
Ascent	366,894			414,740
Corporate	3,488			8,056
Eliminations ⁽¹⁾	(2,964		)	(4,962		)
Total	$	933,554		$	1,307,753

(1) Eliminations represents intercompany trade receivable balances between the three segments.

Roadrunner Transportation Systems, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 3, 2018

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Roadrunner Transportation Systems, Inc. Reports