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 firstname.lastname@example.org
Roadrunner Transportation Systems Reports 2013 First Quarter Results and Announces Second Quarter 2013 Guidance
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