Roadrunner Transportation Reports Improved Results for 2018 Q1
Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, announced improved results for the first quarter of this year — the period ended March 31, 2018.
The company changed its reporting segments beginning with the first quarter of 2018 to reflect the impact of the Ascent Global Logistics integration announced on March 15, 2018. The company’s three reporting segments are: Truckload & Express Services (TES), Less-than-Truckload (LTL) and Ascent Global Logistics (Ascent).
First Quarter Financial Results
- Revenues for the quarter ended March 31, 2018 were $570.0 million, a 19.0% increase from revenues of $478.9 million for the quarter ended March 31, 2017. The increase was due to higher revenues in the company’s TES and LTL segments, partially offset by lower revenues in the Ascent segment due to the divestiture of Unitrans in September 2017.
- Operating loss was $13.4 million for the first quarter of 2018, compared to an operating loss of $17.9 million for the first quarter of 2017. Improved operating results in the TES segment were offset by higher operating losses in the LTL segment.
- Net loss increased to $23.6 million for the first quarter of 2018, compared to a net loss of $19.9 million for the first quarter of 2017, due primarily to higher interest costs related to the company’s preferred stock issued in May 2017.
- Diluted loss per share available to common stockholders was $0.61 for the first quarter of 2018, compared to diluted loss per share of $0.52 for the first quarter of 2017.
- Adjusted EBITDA, excluding the impact of Unitrans in 2017, improved by $6.1 million to $3.1 million for the first quarter of 2018. Adjusted EBITDA for the quarters ended March 31, 2018 and 2017 is calculated as follows:
Segment results for the quarter ended March 31, 2018 compared to the same period in 2017 are highlighted below:
- TES revenues of $326.1 million in 2018 increased 43.3% from $227.5 million in 2017 due to an increase in ground and air expedited freight business as a strong demand environment for expedited freight drove higher volumes and rates. Operating income was $4.4 million in 2018, compared to an operating loss of $1.7 million in 2017. Adjusted EBITDA increased 134.8% to $10.7 million in 2018 from $4.6 million in the prior year. The increase in Adjusted EBITDA was the result of improved results in ground and air expedited freight business, partially offset by increased equipment lease, maintenance and IT costs.
- LTL revenues of $113.1 million in 2018 increased 4.0% from $108.8 million in 2017 due to higher fuel surcharges and rates, partially offset by lower shipments. Operating loss was $8.7 million in 2018, compared to $2.7 million in 2017. Adjusted EBITDA declined to a loss of $7.8 million in 2018 from a loss of $1.8 million in the prior year. The decrease in Adjusted EBITDA was the result of higher purchased transportation costs driven by higher purchased power spot prices and increased IC costs which negatively impacted linehaul expense, increased equipment lease costs, higher claims expense and increased bad debt expense.
- Ascent revenues of $134.9 million in 2018 decreased from $145.5 million in 2017 due to the divestiture of Unitrans, which generated $25.2 million of revenue in 2017. Excluding Unitrans in the first quarter of 2017, revenue increased by 12.2% in 2018 due to higher revenue from domestic freight management (truckload and LTL brokerage) and retail consolidation (growth from existing and new customers). Operating income decreased to $6.7 million in 2018 from $7.6 million in 2017 which included $2.4 million from Unitrans. Adjusted EBITDA (excluding Unitrans in 2017) increased 20.2% to $7.9 million in 2018 from $6.6 million in the prior year. The increase in Adjusted EBITDA was the result of improved results driven by growth in retail consolidation, partially offset by increased personnel costs and other operating expenses.
Category: Featured, General Update, News
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