Roadrunner Transportation Systems Reports 2013 First Quarter Results and Announces Second Quarter 2013 Guidance

  Roadrunner Transportation Systems Reports 2013 First Quarter Results and
  Announces Second Quarter 2013 Guidance

Business Wire

CUDAHY, Wis. -- May 01, 2013

Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading asset-light
transportation and logistics service provider, today reported financial
results for the three months ended March31, 2013.

Roadrunner's summary financial results for the three months ended March31 are
highlighted below. First quarter 2013 net income available to common
stockholders increased 33.4% over the prior year quarter to $10.6 million.
Roadrunner's diluted income per share of $0.29 represents an increase of 16.0%
from the first quarter 2012 diluted income per share of $0.25. The impact on
diluted income per share from Roadrunner's December 2012 stock offering of 3.9
million shares was $0.03 per share. Excluding the impact of the December 2012
stock offering, Roadrunner's diluted income per share would have increased
$0.07 per share over the first quarter 2012, an increase of 28.0%.

                                               
                                                   Three Months Ended
(In thousands, except per share data)              March 31,
                                                   2013           2012
Total revenues                                     $ 299,380        $ 236,574
Net revenues (total revenues less purchased        $ 93,038          $ 69,543
transportation costs)
Depreciation and amortization                      3,355             1,960
Other operating expenses                           70,546            52,805
Acquisition transaction expenses                   —                138
Operating income                                   $ 19,137         $ 14,640
Net income available to common stockholders        10,582            7,931
Weighted average diluted shares outstanding        36,743            32,129
Diluted income per share available to common       $ 0.29            $ 0.25
stockholders
                                                                       

2013 First Quarter Results

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

“We achieved record revenues and operating income in the first quarter of
2013. These records were achieved in the lowest seasonal quarter of the year
and in a quarter with fewer business days than normal. Strong performance
across all of our business segments generated first quarter revenue growth of
26.5% and net revenue growth of 33.8%. Due to sales and operational
initiatives, our operating income growth of 30.7% outpaced revenue. Our
operating ratio improved 20 basis points to 93.6%, compared to 93.8% in the
first quarter of 2012, despite additional costs incurred for service
initiatives implemented in our LTL segment due to adverse weather conditions.
Additional costs incurred in our LTL segment for the weather-related service
initiatives negatively impacted our first quarter diluted earnings per share
by approximately $0.02.

“Our LTL operating ratio improved sequentially to 93.2% in the first quarter
of 2013 from 94.9% in the fourth quarter of 2012. 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 25.8%
in the first quarter of 2012 to 28.5% in the first quarter of 2013. We are
pleased with the first quarter operating ratio, despite experiencing load
inefficiencies due to the inclement weather.

“Our continued performance initiatives led to our TL operating ratio improving
to 93.4% in the first quarter of 2013 from 94.2% in the first quarter of 2012.
TL revenues grew by $48.5 million, or 49.5%, from the prior year quarter.
Incremental revenues from our 2012 acquisitions accounted for $42.4 million of
the increase, with the remaining $6.1 million representing organic growth of
6.2%. The positive impact of the acquisitions and operating leverage
associated with our revenue growth led to a 70.8% increase in our TL operating
income quarter-over-quarter.

“TMS revenue grew $0.8 million, or 3.7%, in the first quarter of 2013 from the
prior year quarter. Organic growth, pricing, and our late February 2012
acquisition of Capital Transportation Logistics accounted for the 3.7%
increase. The operating leverage associated with this growth led to a 5.0%
increase in TMS operating income quarter-over-quarter. Our TMS operating ratio
improved to 89.2% compared to 89.3% in the first quarter of 2012."

2013 Second Quarter Guidance

In commenting on guidance for the second quarter of 2013, Peter Armbruster,
CFO of Roadrunner, said, “We anticipate our revenues for the second quarter to
be in the range of $315 million to $340 million, representing an increase of
20% to 30% from the second quarter of 2012. Further, we expect diluted income
per share available to common stockholders to be between $0.35 and $0.38,
compared to diluted income per share available to common stockholders of $0.32
in the prior year quarter. Our diluted per share guidance represents an
increase of 9% to 19% from the second quarter of 2012 diluted income per share
of $0.32. The impact on diluted income per share from our December 2012 stock
offering of 3.9 million shares will be approximately $0.04 between years.
Excluding the impact of the December 2012 stock offering, our guidance would
have increased $0.07 to $0.10 per share over the second quarter 2012, an
increase of 22% to 31%."

2013 First 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 11.5% to $132.7 million for the first
quarter of 2013 from $119.0 million for the first quarter of 2012. LTL net
revenues for the first quarter of 2013 were $37.8 million, or 28.5% of LTL
revenues, compared to $30.7 million, or 25.8% of LTL revenues, for the first
quarter of 2012. LTL operating income was $9.0 million, or 6.8% of LTL
revenues, for the first quarter of 2013 compared to $8.5 million, or 7.1% of
LTL revenues, for the first quarter of 2012.

Summary LTL operating statistics for the three months ended March31 are shown
below.

                                    
                                        Three Months Ended March 31,
                                        2013        2012        % Change
Operating ratio                         93.2           92.9
Tonnage (in thousands of tons)          370.1          316.1          17.1  %
Shipments (in thousands)                572.0          486.9          17.5  %
Revenue per hundredweight (incl.        $ 17.93        $ 18.82        (4.7  %)
fuel)
Revenue per hundredweight (excl.        $ 14.63        $ 15.37        (4.8  %)
fuel)
Weight per shipment (lbs.)              1,294          1,298          (0.3  %)
Linehaul cost per mile (excl.           $ 1.24         $ 1.24         0.0   %
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 49.5% to $146.5 million for the first quarter of 2013
from $98.0 million for the first quarter of 2012. 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 first quarter, these acquisitions collectively contributed incremental TL
revenues of $42.4 million. Overall, TL net revenues for the first quarter of
2013 were $49.0 million, or 33.5% of TL revenues, compared to $33.1 million,
or 33.8% of TL revenues, for the first quarter of 2012. TL operating income
was $9.7 million, or 6.6% of TL revenues, for the first quarter of 2013
compared to $5.7 million, or 5.8% of TL revenues, for the first quarter of
2012.

TMS revenues for the first quarter of 2013 increased 3.7% to $21.4 million
from $20.7 million for the first quarter of 2012. TMS net revenues for the
first quarter of 2013 were $6.2 million, or 28.9% of TMS revenues, compared to
$5.7 million, or 27.7% of TMS revenues, for the first quarter of 2012. 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 $2.3 million, or 10.8% of TMS revenues,
for the first quarter of 2013, compared to $2.2 million, or 10.7% of TMS
revenues, for the first quarter of 2012.

Conference Call

A conference call is scheduled for Wednesday, May1, 2013 at 4:30 p.m. Eastern
Time. To access the conference call, please dial 866-318-8618 (U.S.) or
617-399-5137 (International) approximately 10 minutes prior to the start of
the call. Callers will be prompted for passcode 37507154. 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 May8, 2013, and can be accessed by dialing 888-286-8010 (U.S.) or
617-801-6888 (International). Callers will be prompted for passcode 22844511.
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; the impact of adverse weather
conditions and Roadrunner's weather-related service 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 Roadrunner's acquisitions; and Roadrunner's
expected revenues and diluted earnings per share available to common
stockholders for the second 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
                                                       March 31,
                                                       2013         2012
Revenues                                               $ 299,380     $ 236,574
Operating expenses:
Purchased transportation costs                         206,342       167,031
Personnel and related benefits                         34,856        26,733
Other operating expenses                               35,690        26,072
Depreciation and amortization                          3,355         1,960
Acquisition transaction expenses                       —            138
Total operating expenses                               280,243      221,934
Operating income                                       19,137        14,640
Interest expense:
Interest on long-term debt                             1,875         1,798
Dividends on preferred stock subject to mandatory      —            49
redemption
Total interest expense                                 1,875        1,847
Income before provision for income taxes               17,262        12,793
Provision for income taxes                             6,680        4,862
Net income available to common stockholders            $ 10,582     $ 7,931
Earnings per share available to common stockholders:
Basic                                                  $ 0.30       $ 0.26
Diluted                                                $ 0.29       $ 0.25
Weighted average common stock outstanding:
Basic                                                  34,990       30,742
Diluted                                                36,743       32,129
                                                                     
                                                                     
                                                                     

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)
                                                               
                                                    March 31,     December 31,
                                                    2013          2012
ASSETS
Current assets:
Cash and cash equivalents                           $ 16,164      $   11,908
Accounts receivable, net of allowances of $1,229    139,082       122,947
and $1,476, respectively
Deferred income taxes                               3,595         3,800
Prepaid expenses and other current assets           24,006       26,461
Total current assets                                182,847      165,116
Property and equipment, net of accumulated          74,211        68,576
depreciation of $22,576 and $20,108, respectively
Other assets:
Goodwill                                            441,667       442,143
Intangible assets, net                              13,059        12,710
Other noncurrent assets                             11,906       12,263
Total other assets                                  466,632      467,116
Total assets                                        $ 723,690    $   700,808
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Current maturities of long-term debt                $ 17,000      $   17,000
Accounts payable                                    59,879        54,887
Accrued expenses and other liabilities              26,814       29,132
Total current liabilities                           103,693      101,019
Long-term debt, net of current maturities           140,250       144,500
Other long-term liabilities                         67,520       63,210
Total liabilities                                   311,463      308,729
Stockholders’ investment:
Common stock $.01 par value; 100,000 shares
authorized; 35,427 and 34,371 shares issued and     354           344
outstanding
Additional paid-in capital                          334,590       325,034
Retained earnings                                   77,283       66,701
Total stockholders’ investment                      412,227      392,079
Total liabilities and stockholders’ investment      $ 723,690    $   700,808
                                                                      
                                                                      
                                                                      

Contact:

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