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Echo Global Logistics Announces Fourth Quarter and Full Year 2012 Results

Echo Global Logistics Announces Fourth Quarter and Full Year 2012 Results 
CHICAGO, IL -- (Marketwire) -- 02/07/13 --  Echo Global Logistics,
Inc. (NASDAQ: ECHO), a leading provider of technology-enabled
transportation and supply chain management services, reported today
financial results for the quarter and year ended December 31, 2012. 
Echo reported Non-GAAP net income of $3.5 million and Non-GAAP fully
diluted EPS of $0.15 per share in the fourth quarter of 2012.
Included in these results is the effect of a higher income tax rate
in the fourth quarter of 2012 of $0.01 per share; excluded are the
effects of changes in contingent consideration payable. 
"Echo posted total revenue of over $211 million in the fourth quarter
of 2012, an increase of almost 30% from the fourth quarter of 2011,"
said Doug Waggoner, Chief Executive Officer of Echo. Waggoner added,
"This growth was achieved despite a soft freight environment, and was
driven by the investments we are making in our business."  
Fourth Quarter Highlights 


 
--  Total revenue was $211.2 million, an increase of 29.7% from the fourth
    quarter of 2011.
--  Non-GAAP operating income totaled $6.1 million, an increase of 17.0%
    from the fourth quarter of 2011.*
--  Non-GAAP operating margin was 15.6%, down 79 bps from the fourth
    quarter of 2011.*
--  Non-GAAP net income was $3.5 million, a decrease of 0.8% from the
    fourth quarter of 2011.*
--  Non-GAAP fully diluted EPS was $0.15, a decrease of $0.01 from the
    fourth quarter of 2011.*

  
Full Year Highlights 


 
--  Total revenue increased 25.7% in 2012 to $757.7 million compared with
    $602.8 million in 2011.
--  Non-GAAP operating income increased 26.5% in 2012 to $23.6 million
    compared with $18.7 million in 2011.*
--  Non-GAAP operating margin increased 57 basis points to 16.5% in 2012
    from 15.9% in 2011.*
--  Non-GAAP net income increased 19.5% in 2012 to $14.2 million compared
    with $11.9 million in 2011.*
--  Non-GAAP fully diluted EPS was $0.62, increasing 17.9% from 2011.*

  
*All non-GAAP measures exclude the effects of changes in contingent
consideration payable, non-recurring settlement costs and a charge
for a loss related to the acquisition of Shipper Direct. For a
reconciliation of each non-GAAP financial measure to the nearest
comparable GAAP measure, see "Reconciliation to GAAP Operating
Income, Operating Margin, Net Income and Fully Diluted EPS" included
in this release. 
Summarized financial results and select operating metrics follow: 


 
                                                                            
                                                                            
       ---------------------------      -------------------------------     
       Three months ended                 Year ended December               
          December 31,                            31,                       
                              %                                    %        
         2012      2011     change         2012        2011      change     
Amount                                                                      
 s in                                                                       
 000,0                                                                      
 00s,                                                                       
 excep                                                                      
 t per                                                                      
 share                                                                      
 data      (unaudited)                        (unaudited)                   
       ---------------------------      -------------------------------     
Revenu                                                                      
 e:                                                                         
 Trans                                                                      
  acti                                                                      
  onal $  149.9  $  110.5     35.7%     $    526.8  $    409.0     28.8%    
 Enter                                                                      
  pris                                                                      
  e    $   61.3  $   52.4     16.9%     $    230.9  $    193.8     19.2%    
       --------  --------  -------      ----------  ----------  -------     
  Tota                                                                      
   l                                                                        
   Rev                                                                      
   enu                                                                      
   e      211.2     162.9     29.7%          757.7       602.8     25.7%    
                                                                            
Net                                                                         
 reven                                                                      
 ue        39.1      31.8     22.9%          143.1       117.2     22.1%    
                                                                            
Operat                                                                      
 ing                                                                        
 expen                                                                      
 ses                                                                        
 Commi                                                                      
  ssio                                                                      
  ns       10.6       9.9      6.7%           40.4        35.9     12.6%    
 Selli                                                                      
  ng,                                                                       
  gene                                                                      
  ral                                                                       
  and                                                                       
  admi                                                                      
  nist                                                                      
  rati                                                                      
  ve       19.7      14.5     36.2%           70.0        54.3     28.8%    
 Depre                                                                      
  ciat                                                                      
  ion                                                                       
  and                                                                       
  amor                                                                      
  tiza                                                                      
  tion      2.7       2.2     22.1%            9.1         8.3      9.7%    
       --------  --------  -------      ----------  ----------  -------     
  Tota                                                                      
   l                                                                        
   ope                                                                      
   rat                                                                      
   ing                                                                      
   exp                                                                      
   ens                                                                      
   es                                                                       
   (1)     33.0      26.6     24.1%          119.5        98.5     21.3%    
                                                                            
       --------  --------  -------      ----------  ----------  -------     
Non-                                                                        
 GAAP                                                                       
 Opera                                                                      
 ting                                                                       
 incom                                                                      
 e (1)      6.1       5.2     17.0%           23.6        18.7     26.5%    
       --------  --------  -------      ----------  ----------  -------     
                                                                            
Other                                                                       
 expen                                                                      
 se         0.1       0.1     35.4%            0.4         0.3     58.3%    
       --------  --------  -------      ----------  ----------  -------     
Non-                                                                        
 GAAP                                                                       
 Incom                                                                      
 e                                                                          
 befor                                                                      
 e                                                                          
 taxes                                                                      
 (1)        6.0       5.1     16.8%           23.2        18.4     26.0%    
       --------  --------  -------      ----------  ----------  -------     
                                                                            
Income                                                                      
 taxes                                                                      
 (1)        2.5       1.6     55.4%            9.0         6.5     37.8%    
                                                                            
       --------  --------  -------      ----------  ----------  -------     
Non                                                                         
 GAAP                                                                       
 net                                                                        
 incom                                                                      
 e (2)      3.5       3.5     -0.8%           14.2        11.9     19.5%    
       ========  ========  =======      ==========  ==========  =======     
                                                                            
       --------  --------  -------      ----------  ----------  -------     
Non                                                                         
 GAAP                                                                       
 EPS                                                                        
 (2)   $   0.15  $   0.16     -3.2%     $     0.62  $     0.53     17.9%    
       ========  ========  =======      ==========  ==========  =======     
Dilute                                                                      
 d                                                                          
 share                                                                      
 s         23.2      22.6                     22.9        22.6              
                                                                            
       --------  --------  -------      ----------  ----------  -------     
Reconc                                                                      
 iliat                                                                      
 ion                                                                        
 to                                                                         
 GAAP                                                                       
 Opera                                                                      
 ting                                                                       
 Incom                                                                      
 e,                                                                         
 Opera                                                                      
 ting                                                                       
 Margi                                                                      
 n,                                                                         
 Net                                                                        
 incom                                                                      
 e and                                                                      
 EPS                                                                        
       --------  --------  -------      ----------  ----------  -------     
Non-                                                                        
 GAAP                                                                       
 Opera                                                                      
 ting                                                                       
 Incom                                                                      
 e (1)      6.1       5.2     17.0%           23.6        18.7     26.5%    
 Chang                                                                      
  e in                                                                      
  cont                                                                      
  inge                                                                      
  nt                                                                        
  cons                                                                      
  ider                                                                      
  atio                                                                      
  n                                                                         
  paya                                                                      
  ble      (0.3)     (0.0) 80473.5%            0.1         0.2    -47.5%    
 Loss                                                                       
  asso                                                                      
  ciat                                                                      
  ed                                                                        
  with                                                                      
  Ship                                                                      
  per                                                                       
  Dire                                                                      
  ct                                                                        
  acqu                                                                      
  isit                                               
                       
  ion         -         -      n/a            (2.5)          -      n/a     
 Non-                                                                       
  recu                                                                      
  rrin                                                                      
  g                                                                         
  sett                                                                      
  leme                                                                      
  nt                                                                        
  cost                                                                      
  s           -         -      n/a            (0.7)          -      n/a     
       --------  --------  -------      ----------  ----------  -------     
Operat                                                                      
 ing                                                                        
 Incom                                                                      
 e          5.8       5.2     11.0%           20.5        18.9      8.4%    
       --------  --------  -------      ----------  ----------  -------     
                                                                            
Non-                                                                        
 GAAP                                                                       
 Opera                                                                      
 ting                                                                       
 Margi                                                                      
 n (1)     15.6%     16.3%     (79) bps       16.5%       15.9%      57  bps
 Effec                                                                      
  t of                                                                      
  chan                                                                      
  ge                                                                        
  in                                                                        
  cont                                                                      
  inge                                                                      
  nt                                                                        
  cons                                                                      
  ider                                                                      
  atio                                                                      
  n                                                                         
  paya                                                                      
  ble,                                                                      
  loss                                                                      
  asso                                                                      
  ciat                                                                      
  ed                                                                        
  with                                                                      
  Ship                                                                      
  per                                                                       
  Dire                                                                      
  ct                                                                        
  acqu                                                                      
  isit                                                                      
  ion,                                                                      
  and                                                                       
  non-                                                                      
  recu                                                                      
  rrin                                                                      
  g                                                                         
  sett                                                                      
  leme                                                                      
  nt                                                                        
  cost                                                                      
  s        -0.8%      0.0%     (80) bps       -2.2%        0.3%    (238) bps
       --------  --------  -------      ----------  ----------  -------     
Operat                                                                      
 ing                                                                        
 Margi                                                                      
 n (%                                                                       
 of                                                                         
 Net                                                                        
 Reven                                                                      
 ue)       14.8%     16.3%    (159) bps       14.3%       16.2%    (181) bps
       --------  --------  -------      ----------  ----------  -------     
                                                                            
Non-                                                                        
 GAAP                                                                       
 Net                                                                        
 Incom                                                                      
 e (2)      3.5       3.5     -0.8%           14.2        11.9     19.5%    
 Chang                                                                      
  e in                                                                      
  cont                                                                      
  inge                                                                      
  nt                                                                        
  cons                                                                      
  ider                                                                      
  atio                                                                      
  n                                                                         
  paya                                                                      
  ble,                                                                      
  loss                                                                      
  asso                                                                      
  ciat                                                                      
  ed                                                                        
  with                                                                      
  Ship                                                                      
  per                                                                       
  Dire                                                                      
  ct                                                                        
  acqu                                                                      
  isit                                                                      
  ion,                                                                      
  and                                                                       
  non-                                                                      
  recu                                                                      
  rrin                                                                      
  g                                                                         
  sett                                                                      
  leme                                                                      
  nt                                                                        
  cost                                                                      
  s,                                                                        
  net                                                                       
  of                                                                        
  tax                                                                       
  effe                                                                      
  ct       (0.2)     (0.0) 74517.4%           (1.9)        0.1  -1318.8%    
       --------  --------  -------      ----------  ----------  -------     
Net                                                                         
 Incom                                                                      
 e          3.3       3.5     -6.0%           12.3        12.0      2.3%    
       ========  ========  =======      ==========  ==========  =======     
                                                                            
Non-                                                                        
 GAAP                                                                       
 Fully                                                                      
 Dilut                                                                      
 ed                                                                         
 EPS                                                                        
 (2)   $   0.15  $   0.16     -3.2%     $     0.62  $     0.53     17.9%    
 Chang                                                                      
  e in                                                                      
  cont                                                                      
  inge                                                                      
  nt                                                                        
  cons                                                                      
  ider                                                                      
  atio                                                                      
  n                                                                         
  paya                                                                      
  ble,                                                                      
  loss                                                                      
  asso                                                                      
  ciat                                                                      
  ed                                                                        
  with                                                                      
  Ship                                                                      
  per                                                                       
  Dire                                                                      
  ct                                                                        
  acqu                                                                      
  isit                                                                      
  ion,                                                                      
  and                                                                       
  non-                                                                      
  recu                                                                      
  rrin                                                                      
  g                                                                         
  sett                                                                      
  leme                                                                      
  nt                                                                        
  cost                                                                      
  s,                                                                        
  net                                                                       
  of                                                                        
  tax                                                                       
  effe                                                                      
  ct      (0.01)    (0.00) 72737.6%          (0.08)       0.00  -1301.6%    
       --------  --------  -------      ----------  ----------  -------     
Fully                                                                       
 dilut                                                                      
 ed                                                                         
 EPS   $   0.14  $   0.16     -8.2%     $     0.54  $     0.53      0.8%    
       ========  ========  =======      ==========  ==========  =======     
                                                                            
       --------  --------  -------      ----------  ----------  -------     
Operat                                                                      
 ing                                                                        
 Metri                                                                      
 cs                                                                         
       --------  --------  -------      ----------  ----------  -------     
 Net                                                                        
  reve                                                                      
  nue                                                                       
  marg                                                                      
  in       18.5%     19.5%    (102) bps       18.9%       19.4%     (56) bps
 Opera                                                                      
  ting                                                                      
  marg                                                                      
  in                                                                        
  (%                                                                        
  of                                                                        
  net                                                                       
  reve                                                                      
  nue)                                                                      
  (1)      15.6%     16.3%     (79) bps       16.5%       15.9%      57  bps
                                                                            
 Shipm                                                                      
  ent                                                                       
  volu                                                                      
  me    426,095   354,595     20.2%      1,649,338   1,376,006     19.9%    
 Numbe                                                                      
  r of                                                                      
  ente                                                                      
  rpri                                                                      
  se                                                                        
  clie                                                                      
  nts       203       177     14.7%            203         177     14.7%    
 Total                                                                      
  empl                                                                      
  oyee                                                                      
  s       1,364     1,157     17.9%          1,364       1,157     17.9%    
 Sales                                                                      
  empl                                                   
                   
  oyee                                                                      
  s                                                                         
  and                                                                       
  agen                                                                      
  ts        873       757     15.3%            873         757     15.3%    
 Less                                                                       
  Than                                                                      
  Truc                                                                      
  kloa                                                                      
  d                                                                         
  (LTL                                                                      
  )                                                                         
  Reve                                                                      
  nue                                                                       
  %        40.8%     45.7%    (481) bps       44.5%       47.5%    (297) bps
 Truck                                                                      
  load                                                                      
  (TL)                                                                      
  Reve                                                                      
  nue                                                                       
  %        43.1%     44.3%    (119) bps       43.6%       43.6%      (5) bps
 Inter                                                                      
  moda                                                                      
  l                                                                         
  Reve                                                                      
  nue                                                                       
  %         8.6%      2.7%     592  bps        4.9%        1.9%     299  bps
                                                                            
(1) Amounts shown exclude the effects of changes in contingent consideration
 payable, non-recurring settlement costs, and the loss associated with the  
 Shipper Direct acquisition                                                 
(2) Amounts shown exclude the tax effected changes in contingent            
 consideration payable, non-recurring settlement costs, and the loss        
 associated with the Shipper Direct acquisition                             

 
Included in our full year results is a $0.07 charge for an acquisition
related loss on the acquisition of Shipper Direct. We have filed a
Form 8-K reflecting the impact on our third quarter results. We
intend to file a Form 10QA as soon as practically possible.  
"Our fourth quarter results reflect the resiliency of our market
strategy in all phases of the economic cycle," said Dave Menzel,
Chief Financial Officer of Echo. He added, "Our Sharp acquisition
supplemented our organic growth strategy with $18.5 million of
revenue during the quarter, while our Enterprise business
complemented our transactional client base in the fourth quarter,
growing by 16.9% compared to the fourth quarter of 2011. As we made
investments in our sales force and technology to support our long
term growth objectives, our diversified sales strategy continued to
deliver double digit total revenue growth."  
Business Outlook
 Waggoner stated, "Our investments in our people and
our service capabilities during 2012 position us well for continued
growth and improving profitability in 2013. We are focused on
generating returns from these investments while continuing to execute
our long term strategy." 
"In 2013, we anticipate delivering total revenue in the range of $940
million to $980 million and earnings per share in the range of $0.82
to $0.90," Mr. Waggoner continued. "We anticipate operating margin
increases in the second half of the year." 
Conference Call
 A conference call, with accompanying presentation
slides, will be broadcast live on February 7, 2013 at 4:00 p.m.
Central Time (5:00 p.m. Eastern Time). Doug Waggoner, Chief Executive
Officer, and Dave Menzel, Chief Financial Officer, will host the
call. To participate in the call, dial (877) 303-6235 (toll free) or
(631) 291-4837 (toll) and provide conference ID "Echo Global
Logistics." To listen to a live webcast of the call, visit the Echo
website at http://ir.echo.com. A replay of the webcast will be
available for one year following the live webcast in the Investor
Relations section of the Echo website.  
Non-GAAP Financial Measures
 This release includes the following
financial measures defined as "non-GAAP financial measures" by the
Securities and Exchange Commission: Non-GAAP Operating Income,
Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully
Diluted EPS. We refer to Non-GAAP Operating Income, Non-GAAP
Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS
to describe earnings and earnings per share excluding the effects of
changes in contingent consideration payable, non-recurring settlement
costs and the charge for a loss related to the acquisition of Shipper
Direct. We believe that Non-GAAP Operating Income, Non-GAAP Operating
Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS provide
useful information to investors because they provide information
about the financial performance of the Company's ongoing business. 
Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net
Income and Non-GAAP Fully Diluted EPS are used by management in its
financial and operational decision-making and evaluation of overall
operating performance. Non-GAAP Operating Income, Non-GAAP Operating
Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS may be
different from similar measures used by other companies. The
presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
generally accepted accounting principles. For a reconciliation of
each non-GAAP financial measure to the nearest comparable GAAP
measure, see "Reconciliation to GAAP Operating Income, Operating
Margin, Net Income and Fully Diluted EPS" included in this release. 
Forward-Looking Statements
 This release contains statements relating
to future results. These statements are forward-looking statements
under the federal securities laws. We can give no assurance that any
future results discussed in these statements will be achieved. Any
forward-looking statements represent our views only as of today and
should not be relied upon as representing our views as of any
subsequent date. These statements are subject to a variety of risks
and uncertainties that could cause our actual results to differ
materially from the statements contained in this release. For a
discussion of important factors that could affect our actual results,
please refer to our SEC filings, including the "Risk Factors" section
of the most recent Form 10-K we filed with the SEC. 


 
                        Echo Global Logistics, Inc.                         
              Condensed Consolidated Statements of Operations               
                                                                            
                                                                            
                         Three Months Ended          Twelve Months Ended    
                            December 31,                December 31,        
                         2012          2011          2012          2011     
                             (Unaudited)          (Unaudited)               
                     --------------------------  -------------------------- 
REVENUE              $211,150,018  $162,857,428  $757,687,585  $602,763,471 
                                                                            
COSTS AND EXPENSES                                                          
 Transportation                                                             
  costs               172,087,274   131,072,715   614,562,437   485,546,842 
 Selling, general,                                                          
  and administrative                                                        
  expenses             30,639,074    24,412,069   113,454,258    89,952,126 
 Depreciation and                                                           
  amortization          2,658,971     2,177,074     9,139,232     8,329,836 
                     ------------  ------------  ------------  ------------ 
INCOME FROM                                                                 
 OPERATIONS             5,764,699     5,195,570    20,531,658    18,934,667 
OTHER EXPENSE             (73,570)      (53,885)     (433,401)     (273,176)
                     ------------  ------------  ------------  ------------ 
INCOME BEFORE                                                               
 PROVISION FOR                                                              
 INCOME TAXES           5,691,129     5,141,685    20,098,257    18,661,491 
INCOME TAX EXPENSE     (2,370,645)   (1,609,727)   (7,776,843)   (6,613,319)
                     ------------  ------------  ------------  ------------ 
NET INCOME           $  3,320,484  $  3,531,958  $ 12,321,414  $ 12,048,172 
                     ============  ============  ============  ============ 
                                                                            
Basic net income per                                                        
 share               $       0.15  $       0.16  $       0.55  $       0.54 
Diluted net income                                                          
 per share           $       0.14  $       0.16  $       0.54  $       0.53 
                                                                            
                                                                            
                                                                            
                         Echo Global Logistics, Inc.                        
                    Condensed Consolidated Balance Sheets                   
                                                                            
                                               December 31,    December 31, 
                                                   2012            2011     
                                               (Unaudited)                  
                                             --------------- ---------------
  Cash and cash equivalents                  $    41,780,984 $    47,007,309
  Accounts receivable, net of allowance for                                 
   doubtful accounts                              96,623,553      89,191,456
  Prepaid expenses                                 2,491,955       4,634,612
  Other current assets                               843,009         800,648
  Total long term assets                          77,743,563      58,864,061
                                             --------------- ---------------
Total assets                                 $   219,483,064 $   200,498,086
                                             =============== ===============
                                                                            
  Accounts payable - trade                   $    58,889,437 $    59,949,927
  Current maturities of capital lease                                       
   obligations                                        24,086         175,166
  Other liabilites                                12,074,645      10,474,434
  Deferred income taxes                            1,915,847       2,979,483
  Long term liabilities                            5,593,639       7,597,478
  Stockholders' equity                           140,985,410     119,321,598
                                             --------------- ---------------
Total liabilities and stockholders' equity   $   219,483,064 $   200,498,086
                                             =============== ===============
                                                                            
                                                           -               -
                                                                            
                                                                            
                        Echo Global Logistics, Inc.                         
              Condensed Consolidated Statements of Cash Flows               
                                                                            
                                          Twelve Months Ended December 31,  
                                               2012              2011       
                                            (Unaudited)                     
                                         ----------------  ---------------- 
Net cash provided by operating                                              
 activities                              $     22,787,967  $     15,749,580 
                                                                            
Net cash used in investing activities         (25,285,290)      (11,344,927)
                                                                            
Net cash provided by (used in) financing                                    
 activities                                    (2,729,002)         (615,508)
                                         ----------------  ---------------- 
                                                                            
Increase/(decrease) in cash and cash                                        
 equivalents                                   (5,226,325)        3,789,145 
Cash and cash equivalents, beginning of                                     
 period                                        47,007,309        43,218,164 
                                         ----------------  ---------------- 
Cash and cash equivalents, end of period $     41,780,984  $     47,007,309 
                                         ================  ================ 

 
About Echo Global Logistics
 Echo Global Logistics, based in Chicago,
is a leading provider of technology-enabled transportation and supply
chain management services. Echo maintains a proprietary web-based
technology platform that compiles and analyzes data from its network
of over 24,000 transportation providers to serve its clients'
transportation and supply chain management needs. Echo services
clients across a wide range of industries, such as manufacturing,
construction, consumer products and retail. For more information on
Echo, visit: www.echo.com.  
INVESTOR RELATIONS CONTACT:
Suzanne Karpick
Echo Global Logistics
(312) 784-7414 
MEDIA CONTACT:
Hanni Itah
SSPR
(847) 415-9324 
 
 
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