Roadrunner Transportation Systems Reports 2012 Fourth Quarter and Year-End Results and Announces First Quarter 2013 Guidance

  Roadrunner Transportation Systems Reports 2012 Fourth Quarter and Year-End
  Results and Announces First Quarter 2013 Guidance

Business Wire

CUDAHY, Wis. -- February 6, 2013

Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading asset-light
transportation and logistics service provider, today reported financial
results for the three and twelve months ended December31, 2012.

Roadrunner's summary financial results for the three and twelve months ended
December31 are highlighted below. Fourth quarter 2012 net income available to
common stockholders increased 38.8% over the prior year quarter to $9.5
million. Fourth quarter 2012 diluted income per share available to common
stockholders increased 31.8% over the prior year quarter to $0.29.

                                                  
                         Three Months Ended          Twelve Months Ended
(In thousands, except    December 31,                December 31,
per share data)
                         2012         2011          2012           2011
Total revenues           $ 295,069    $ 238,005    $ 1,073,354    $ 843,627
Net revenues (total
revenues less            $ 90,558      $ 69,948      $ 319,895       $ 223,284
purchased
transportation costs)
Depreciation and         2,990         1,597         9,499           4,978
amortization
Other operating          69,751        54,646        240,673         170,803
expenses
Acquisition              85           430          773            1,368
transaction expenses
Operating income         $ 17,732     $ 13,275     $ 68,950       $ 46,135
Net income available     9,527         6,865         37,530          25,871
to common stockholders
Weighted average
diluted shares           33,101        31,765        32,425          31,545
outstanding
Diluted income per
share available to       $ 0.29        $ 0.22        $ 1.16          $ 0.82
common stockholders
                                                                       

2012 Fourth Quarter and Year-end Results

In discussing the company's fourth quarter performance, Mark DiBlasi,
President and CEO of Roadrunner, said,

“Strong performance across all of our business segments generated fourth
quarter revenue growth of 24.0% and net revenue growth of 29.5%. Due to sales
and operational initiatives, our operating income growth of 33.6% outpaced
revenue. Our operating ratio improved 40 basis points to 94.0% compared to
94.4% in the fourth quarter of 2011, despite additional costs incurred related
to Hurricane Sandy. The impact of additional shares related to our December
common stock offering, lost revenue and additional costs incurred related to
Hurricane Sandy, and transaction costs related to the fourth quarter
acquisitions of Central Cal Transportation (Central Cal), A&A Express (A&A)
and Direct Connection Transportation (DCT) negatively impacted our fourth
quarter diluted earnings per share by approximately $0.02.

“Our LTL operating ratio improved to 94.9% in the fourth quarter of 2012 from
95.5% in the fourth quarter of 2011. Our continued initiatives to expand into
new geographic regions, build density, improve pricing and enhance
productivity, as well as the addition of Expedited Freight Systems (EFS) in
August 2012, resulted in a net revenue margin improvement from 24.8% in the
fourth quarter of 2011 to 28.1% in the fourth quarter of 2012. We are pleased
with the improvement in our operating ratio over last year, despite
experiencing load inefficiencies due to Hurricane Sandy and incurring
integration costs on a non-recurring basis associated with the consolidation
of certain EFS operations.

“Our continued performance initiatives, as well as improvement in our
insurance claims experience led to our TL operating ratio improving
sequentially to 92.8% in the fourth quarter 2012 from 94.1% in the third
quarter of 2012. TL revenues grew by $44.7 million, or 45.3%, from the prior
year quarter. Incremental revenues from our 2012 acquisitions accounted for
$34.3 million of the increase, with the balance of $10.4 million representing
organic growth of 10.5%. The positive impact of the acquisitions and operating
leverage associated with our revenue growth led to a 33.9% increase in our TL
operating income quarter-over-quarter.

“TMS revenue grew $1.8 million, or 8.3%, in the fourth quarter of 2012 from
the prior year quarter. Organic growth, pricing and our late February 2012
acquisition of Capital Transportation Logistics accounted for the 8.3%
increase. The operating leverage associated with this growth led to a 29.6%
increase in TMS operating income quarter-over-quarter. Our TMS operating ratio
improved to 88.2% compared to 90.1% in the fourth quarter of 2011.

"Overall, we are extremely pleased with our 2012 performance. In 2012, total
company revenue increased 27.2% to $1,073.4 million from $843.6 million in
2011. This revenue growth was a combination of both organic- and
acquisition-related growth. Our total company operating income increased 49.5%
to $69.0 million in 2012 from $46.1 million in 2011. Our total company
operating ratio improved to 93.6% in 2012 from 94.5% in 2011. Finally, our
diluted income per share available to common stockholders increased 41.5% to
$1.16 in 2012 from $0.82 in 2011."

2013 First Quarter Guidance

In commenting on guidance for the first quarter of 2013, Peter Armbruster, CFO
of Roadrunner, said, “We anticipate our revenues for the first quarter to be
in the range of $285 million to $310 million, representing an increase of 20%
to 31% from the first quarter of 2012. Further, we expect diluted income per
share available to common stockholders to be between $0.27 and $0.29, compared
to diluted income per share available to common stockholders of $0.25 in the
prior year quarter. The impact on diluted income per share from our December
2012 stock offering of 3,925,000 shares will be approximately $0.03 between
years. On an adjusted basis, our diluted income per share guidance of $0.27 to
$0.29 represents an increase of 23% to 32% from the first quarter of 2012
diluted income per share of $0.22.

2012 Fourth Quarter Segment Information

Roadrunner has three operating segments: less-than-truckload (LTL), truckload
and logistics (TL) and transportation management solutions (TMS). The
following highlights exclude intercompany eliminations and corporate expenses.

LTL revenues, including fuel, increased 9.6% to $129.9 million for the fourth
quarter of 2012 from $118.5 million for the fourth quarter of 2011. LTL net
revenues for the fourth quarter of 2012 were $36.4 million, or 28.1% of LTL
revenues, compared to $29.4 million, or 24.8% of LTL revenues, for the fourth
quarter of 2011. LTL operating income was $6.6 million, or 5.1% of LTL
revenues, for the fourth quarter of 2012 compared to $5.3 million, or 4.5% of
LTL revenues, for the fourth quarter of 2011.

Summary LTL operating statistics for the three and twelve months ended
December31 are shown below.

                                              
                 Three Months Ended              Twelve Months Ended
                 December 31,                    December 31,
                 2012      2011      %         2012      2011      %
                                       Change                          Change
Operating        94.9       95.5                 93.1       94.8
ratio
Tonnage (in
thousands of     354.3      306.8      15.5 %    1,368.0    1,256.3    8.9  %
tons)
Shipments (in    540.4      471.4      14.6 %    2,090.4    1,905.9    9.7  %
thousands)
Revenue per
hundredweight    $ 17.92    $ 18.81    (4.7 %)   $ 18.46    $ 18.27    1.0  %
(incl. fuel)
Revenue per
hundredweight    $ 14.61    $ 15.42    (5.3 %)   $ 15.08    $ 15.00    0.5  %
(excl. fuel)
Weight per
shipment         1,311      1,302      0.7  %    1,309      1,318      (0.7 %)
(lbs.)
Linehaul cost
per mile         $ 1.24     $ 1.24     0.0  %    $ 1.24     $ 1.24     0.0  %
(excl. fuel)
                                                                       
Note: Other than operating ratio, the statistics above do not include (i)
adjustments for undelivered freight required for financial statement purposes
in accordance with Roadrunner's revenue recognition policy; and (ii) non-LTL
related business captured within the LTL segment. Operating statistics include
EFS beginning as of the date of acquisition, August 10, 2012.


TL revenues increased 45.3% to $143.4 million for the fourth quarter of 2012
from $98.7 million for the fourth quarter of 2011. The improvement was
primarily due to increases in market pricing and load growth, increased
utilization of Roadrunner's TL brokerage agent network, and the acquisitions
of D&E Transport, CTW Transport, R&M/Sortino, Central Cal, A&A and DCT. For
the fourth quarter, these acquisitions collectively contributed incremental TL
revenues of $34.3 million. Overall, TL net revenues for the fourth quarter of
2012 were $47.2 million, or 32.9% of TL revenues, compared to $34.8 million,
or 35.3% of TL revenues, for the fourth quarter of 2011. TL operating income
was $10.3 million, or 7.2% of TL revenues, for the fourth quarter of 2012
compared to $7.7 million, or 7.8% of TL revenues, for the fourth quarter of
2011.

TMS revenues for the fourth quarter of 2012 increased 8.3% to $23.8 million
from $22.0 million for the fourth quarter of 2011. TMS net revenues for the
fourth quarter of 2012 were $6.9 million, or 29.1% of TMS revenues, compared
to $5.7 million, or 26.0% of TMS revenues, for the fourth quarter of 2011. TMS
revenue growth during the quarter was primarily attributable to new and
existing customer growth and the acquisition of Capital Transportation
Logistics. TMS operating income was $2.8 million, or 11.8% of TMS revenues,
for the fourth quarter of 2012, compared to $2.2 million, or 9.9% of TMS
revenues, for the fourth quarter of 2011.

Conference Call

A conference call is scheduled for Wednesday, February6, 2013 at 4:30 p.m.
Eastern Time. To access the conference call, please dial 866-383-8003 (U.S.)
or 617-597-5330 (International) approximately 10 minutes prior to the start of
the call. Callers will be prompted for passcode 64552489. The conference call
will also be available via live webcast under the Investor Relations section
of Roadrunner's website, www.rrts.com.

If you are unable to listen to the live call, a replay will be available
through February13, 2013, and can be accessed by dialing 888-286-8010 (U.S.)
or 617-801-6888 (International). Callers will be prompted for passcode
66287729. An archived version of the webcast will also be available under the
Investor Relations section of Roadrunner's website, www.rrts.com.

About Roadrunner Transportation Systems, Inc.

Roadrunner is a leading asset-light transportation and logistics service
provider offering a full suite of solutions, including customized and
expedited less-than-truckload, truckload and logistics, transportation
management solutions, intermodal solutions, and domestic and international
air. For more information, please visit Roadrunner's website, www.rrts.com.

Safe Harbor Statement

This release contains forward-looking statements that relate to future events
or performance, including statements regarding Roadrunner's performance,
Roadrunner's sales and operational initiatives, Roadrunner's initiatives to
expand into new geographic regions, build density, improve pricing and enhance
productivity, the impact of Roadrunner's December 2012 stock offering, the
impact of Hurricane Sandy, Roadrunner's acquisitions, and Roadrunner's
expected revenues and diluted earnings per share available to common
stockholders for the first quarter of 2013. These statements reflect
Roadrunner's current expectations, and Roadrunner 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 Roadrunner's 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, Roadrunner's dependence upon purchased power,
the unpredictability of and potential fluctuation in the price and
availability of fuel, the effects of governmental and environmental
regulations, insurance in excess of prior experience levels, and other "Risk
Factors" set forth in Roadrunner's most recent SEC filings.

                               (Tables Follow)


ROADRUNNER TRANSPORTATION SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

                        Three Months Ended         Twelve Months Ended
                         December 31,                December 31,
                         2012         2011          2012           2011
Revenues                 $ 295,069     $ 238,005     $ 1,073,354     $ 843,627
Operating expenses:
Purchased                204,511       168,057       753,459         620,343
transportation costs
Personnel and related    33,928        25,522        119,955         87,178
benefits
Other operating          35,823        29,124        120,718         83,625
expenses
Depreciation and         2,990         1,597         9,499           4,978
amortization
Acquisition              85           430          773            1,368
transaction expenses
Total operating          277,337      224,730      1,004,404      797,492
expenses
Operating income         17,732        13,275        68,950          46,135
Interest expense:
Interest on long-term    2,169         2,079         7,981           4,135
debt
Dividends on preferred
stock subject to         —            50           49             200
mandatory redemption
Total interest expense   2,169        2,129        8,030          4,335
Income before
provision for income     15,563        11,146        60,920          41,800
taxes
Provision for income     6,036        4,281        23,390         15,929
taxes
Net income available     $ 9,527      $ 6,865      $ 37,530       $ 25,871
to common stockholders
Earnings per share
available to common
stockholders:
Basic                    $ 0.30       $ 0.22       $ 1.21         $ 0.85
Diluted                  $ 0.29       $ 0.22       $ 1.16         $ 0.82
Weighted average
common stock
outstanding:
Basic                    31,732       30,706       31,040         30,432
Diluted                  33,101       31,765       32,425         31,545
                                                                     

ROADRUNNER TRANSPORTATION SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)

                                                  December 31,  December 31,
                                                   2012           2011
ASSETS
Current assets:
Cash and cash equivalents                          $  11,908      $   3,315
Accounts receivable, net of allowances of $1,490   122,947        102,358
and $1,461, respectively
Deferred income taxes                              3,800          9,497
Prepaid expenses and other current assets          26,461        16,400
Total current assets                               165,116       131,570
Property and equipment, net of accumulated
depreciation of $20,100 and $13,303,               68,576         28,447
respectively
Other assets:
Goodwill                                           442,143        364,687
Intangible assets, net                             12,710         10,381
Other noncurrent assets                            12,263        8,633
Total other assets                                 467,116       383,701
Total assets                                       $  700,808    $   543,718
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Current maturities of long-term debt               $  17,000      $   14,000
Accounts payable                                   54,887         50,245
Accrued expenses and other liabilities             29,132         19,480
Preferred stock subject to mandatory redemption    —             5,000
Total current liabilities                          101,019        88,725
Long-term debt, net of current maturities          144,500        122,500
Other long-term liabilities                        63,210        36,540
Total liabilities                                  308,729       247,765
Stockholders’ investment:
Common stock $.01 par value; 100,000 shares
authorized; 34,371 and 30,707 shares issued and    344            307
outstanding
Additional paid-in capital                         325,034        266,475
Retained earnings                                  66,701        29,171
Total stockholders’ investment                     392,079       295,953
Total liabilities and stockholders’ investment     $  700,808    $   543,718
                                                                      

Contact:

Roadrunner Transportation Systems, Inc.
Peter Armbruster, 414-615-1648
Chief Financial Officer
or
Vollrath Associates, Inc.
Marilyn Vollrath, 414-221-0210
ir@rrts.com
 
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