Roadrunner Transportation Systems Reports 2013 Third Quarter Results and Announces Fourth Quarter 2013 Guidance

  Roadrunner Transportation Systems Reports 2013 Third Quarter Results and
  Announces Fourth Quarter 2013 Guidance

Business Wire

CUDAHY, Wis. -- October 30, 2013

Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading asset-light
transportation and logistics service provider, today reported financial
results for the three and nine months ended September30, 2013.

Roadrunner's summary financial results for the three and nine months ended
September30 are highlighted below. Third quarter 2013 net income available to
common stockholders increased 34.0% over the prior year quarter to $13.2
million. Third quarter diluted income per share available to common
stockholders increased 12.9% over the prior year to $0.35. Excluding
acquisition transaction expenses of $0.6 million related to the third quarter
acquisitions of Marisol International, TA Drayage, G.W. Palmer Logistics, and
Yes Trans, Inc., third quarter diluted income per share available to common
stockholders was $0.36.

Roadrunner's December 2012 and August 2013 stock offerings increased the
weighted averaged diluted shares outstanding for the three months ended
September 30, 2013 by 4.6 million shares and impacted diluted income per share
by $0.05 from the prior year quarter.

                       Three Months Ended          Nine Months Ended
(In thousands,
except per share         September 30,                 September 30,
data)
                         2013         2012            2013         2012
Total revenues           $ 363,156    $ 279,165      $ 994,444    $ 778,284
Net revenues (total
revenues less
purchased                $ 109,998     $ 83,123        $ 307,022     $ 229,337
transportation
costs)
Depreciation and         4,029         2,424           11,230        6,509
amortization
Other operating          81,749        62,214          227,747       170,922
expenses
Acquisition              561          480            851          688
transaction expenses
Operating income         $ 23,659     $ 18,005       $ 67,194     $ 51,218
Net income available
to common                13,230        9,872           37,782        28,003
stockholders
Weighted average
diluted shares           38,191        32,260          37,469        32,220
outstanding
Diluted income per
share available to       $ 0.35        $ 0.31          $ 1.01        $ 0.87
common stockholders
                                                                       

2013 Third Quarter Results

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

“The combination of strong organic and acquisition-related revenue growth led
to a 30.1% increase in third quarter revenues and a 32.3% increase in net
revenues over the third quarter of 2012. For the 2013 third quarter, our
operating income growth of 31.4% continued to outpace our revenue growth. Our
operating ratio improved 10 basis points to 93.5% from 93.6% in the third
quarter of 2012.

“LTL revenues grew by $11.7 million, or 8.9%, from the prior year third
quarter. Incremental revenues from our 2012 acquisition accounted for $3.1
million of the increase, with the remaining $8.6 million representing organic
growth of 6.5%. Our organic growth during this year's third quarter was
impacted by sluggish economic conditions in which many customers experienced a
decline in shipments compared to last year's quarter. Our LTL operating ratio
remained the same quarter-over-quarter at 92.4%. During the quarter, our LTL
segment experienced $1.8 million of additional sequential costs related to an
abnormal increase of insurance costs, temporary costs incurred to assist our
recently opened service centers, and increased employee costs due to one more
payroll day. The $1.8 million of increased costs were partially offset by a
$1.7 million contingent purchase price adjustment. The addition of Expedited
Freight Systems (EFS) in August 2012 and the implementation of certain
performance initiatives resulted in a net revenue margin improvement from
27.7% in the third quarter of 2012 to 28.5% in the third quarter of 2013.

“TL revenues grew by $45.9 million, or 36.9%, from the prior year third
quarter. Incremental revenues from our 2012 and 2013 acquisitions accounted
for $32.3 million of the increase, with the remaining $13.6 million
representing organic growth of 11.0% from our existing business. Our TL
operating ratio improved to 93.6% in the third quarter of 2013 from 94.1% in
the third quarter of 2012. TL revenues and operating costs in this year's
third quarter were also negatively affected by sluggish economic conditions,
increased costs associated with hours of service rules and a flat pricing
environment. During the quarter, our TL segment also experienced $1.3 million
of additional sequential costs related to an abnormal increase in insurance
costs, lost productivity in drayage and warehousing due to port strikes and
customer order system changes, and increased employee costs due to one more
payroll day. Offsetting these increased costs was a $1.6 million contingent
purchase price adjustment related to two acquisitions, whose revised
forecasted performance yields lower future earn-out payments. The positive
impact of the acquisitions and operating leverage associated with our revenue
growth led to a 48.1% increase in our TL operating income
quarter-over-quarter.

“TMS revenue grew $27.0 million, or 112.6%, in the third quarter of 2013 from
the prior year quarter, primarily due to our 2013 acquisitions of Adrian
Carriers and Marisol International. This growth led to a 68.8% increase in TMS
operating income quarter-over-quarter."

2013 Fourth Quarter Guidance

In commenting on guidance for the fourth quarter of 2013, Peter Armbruster,
CFO of Roadrunner, said, “We anticipate our revenues for the fourth quarter to
be in the range of $345 million to $370 million, representing an increase of
17% to 25% from the fourth quarter of 2012. We expect diluted income per share
available to common stockholders to be between $0.31 and $0.35, compared to
diluted income per share available to common stockholders of $0.29 in the
prior year quarter. Our diluted per share guidance represents an increase of
7% to 21% from the fourth quarter of 2012 diluted income per share of $0.29
and reflects our December 2012 and August 2013 stock offerings, which will
increase the weighted average diluted shares outstanding in the three months
ending December 31, 2013 by approximately 2.8 million shares and will impact
diluted income per share by $0.03 from the prior year period."

2013 Third 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 8.9% to $144.2 million for the third
quarter of 2013 from $132.5 million for the third quarter of 2012. LTL net
revenues for the third quarter of 2013 were $41.1 million, or 28.5% of LTL
revenues, compared to $36.7 million, or 27.7% of LTL revenues, for the third
quarter of 2012. LTL operating income was $10.9 million, or 7.6% of LTL
revenues, for the third quarter of 2013 compared to $10.0 million, or 7.6% of
LTL revenues, for the third quarter of 2012.

Summary LTL operating statistics for the three and nine months ended
September30 are shown below.

                Three Months Ended September    Nine Months Ended September
                  30,                               30,
                                                    
                  2013      2012      %           2013      2012      %
                                        Change                            Change
Operating         92.4       92.4                   92.5       92.4
ratio
Tonnage (in
thousands of      406.3      359.4      13.0 %      1,180.6    1,013.7    16.5 %
tons)
Shipments (in     628.5      547.6      14.8 %      1,828.7    1,550.1    18.0 %
thousands)
Revenue per
hundredweight     $ 17.93    $ 18.26    (1.8 %)     $ 17.91    $ 18.65    (4.0 )%
(incl. fuel)
Revenue per
hundredweight     $ 14.73    $ 14.97    (1.6 %)     $ 14.68    $ 15.25    (3.7 )%
(excl. fuel)
Weight per
shipment          1,293      1,313      (1.5 %)     1,291      1,308      (1.3 %)
(lbs.)
Linehaul cost
per mile          $ 1.23     $ 1.24     (0.8 %)     $ 1.23     $ 1.24     (0.8 )%
(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 36.9% to $170.1 million for the third quarter of 2013
from $124.2 million for the third quarter of 2012. The improvement was
primarily due to increased load growth, increased utilization of Roadrunner's
TL brokerage agent network, and the acquisitions of R&M/Sortino, Central Cal,
A&A, DCT, Wando Trucking, TA Drayage, G.W. Palmer Logistics, and Yes Trans,
Inc. For the third quarter, these acquisitions collectively contributed
incremental TL revenues of $41.4 million. Overall, TL net revenues for the
third quarter of 2013 were $54.6 million, or 32.1% of TL revenues, compared to
$39.6 million, or 31.9% of TL revenues, for the third quarter of 2012. TL
operating income was $10.8 million, or 6.4% of TL revenues, for the third
quarter of 2013 compared to $7.3 million, or 5.9% of TL revenues, for the
third quarter of 2012.

TMS revenues for the third quarter of 2013 increased 112.6% to $50.9 million
from $24.0 million for the third quarter of 2012. The improvement in revenue
was primarily due to the Adrian Carriers and Marisol International
acquisitions. TMS net revenues for the third quarter of 2013 were $14.3
million, or 28.2% of TMS revenues, compared to $6.8 million, or 28.4% of TMS
revenues, for the third quarter of 2012. TMS operating income was $4.6
million, or 9.1% of TMS revenues, for the third quarter of 2013, compared to
$2.7 million, or 11.5% of TMS revenues, for the third quarter of 2012.

Conference Call

A conference call is scheduled for Wednesday, October30, 2013 at 4:30 p.m.
Eastern Time. To access the conference call, please dial 877-703-6106 (U.S.)
or 857-244-7305 (International) approximately 10 minutes prior to the start of
the call. Callers will be prompted for passcode 41669066. 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 November6, 2013, and can be accessed by dialing 888-286-8010 (U.S.)
or 617-801-6888 (International). Callers will be prompted for passcode
40018570. 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 (“LTL”), truckload logistics (“TL”),
transportation management solutions (“TMS”), intermodal solutions, freight
consolidation, inventory management, expedited services, international freight
forwarding, customs brokerage, and comprehensive global supply chain
solutions. 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 organic and acquisition related growth; the impact of
Roadrunner's December 2012 and August 2013 stock offerings; the impact of
Roadrunner's acquisitions; and Roadrunner's expected revenues, diluted income
per share available to common stockholders, net income available to common
stockholders, and weighted average diluted shares outstanding for the fourth
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          Nine Months Ended
                         September 30,                 September 30,
                         2013         2012            2013         2012
Revenues                 $ 363,156     $ 279,165       $ 994,444     $ 778,284
Operating expenses:
Purchased                253,158       196,042         687,422       548,947
transportation costs
Personnel and            39,816        30,331          111,342       86,027
related benefits
Other operating          41,933        31,883          116,405       84,895
expenses
Depreciation and         4,029         2,424           11,230        6,509
amortization
Acquisition              561          480            851          688
transaction expenses
Total operating          339,497      261,160        927,250      727,066
expenses
Operating income         23,659        18,005          67,194        51,218
Interest expense:
Interest on              2,078         1,943           5,563         5,812
long-term debt
Dividends on
preferred stock          —            —              —            49
subject to mandatory
redemption
Total interest           2,078        1,943          5,563        5,861
expense
Income before
provision for income     21,581        16,062          61,631        45,357
taxes
Provision for income     8,351        6,190          23,849       17,354
taxes
Net income available
to common                $ 13,230     $ 9,872        $ 37,782     $ 28,003
stockholders
Earnings per share
available to common
stockholders:
Basic                    $ 0.36       $ 0.32         $ 1.06       $ 0.91
Diluted                  $ 0.35       $ 0.31         $ 1.01       $ 0.87
Weighted average
common stock
outstanding:
Basic                    36,407       30,859         35,666       30,808
Diluted                  38,191       32,260         37,469       32,220
                                                                     

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

                                              September 30,   December 31,
                                                2013              2012
ASSETS
Current assets:
Cash and cash equivalents                       $  8,757          $   11,908
Accounts receivable, net of allowances of       170,792           122,947
$2,403 and $1,476, respectively
Deferred income taxes                           2,774             3,800
Prepaid expenses and other current assets       23,525           26,461
Total current assets                            205,848          165,116
Property and equipment, net of accumulated
depreciation of $29,141 and $20,108,            96,234            68,576
respectively
Other assets:
Goodwill                                        515,862           442,143
Intangible assets, net                          24,607            12,710
Other noncurrent assets                         11,690           12,263
Total other assets                              552,159          467,116
Total assets                                    $  854,241       $   700,808
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Current maturities of long-term debt            $  9,844          $   17,000
Accounts payable                                68,184            54,887
Accrued expenses and other liabilities          29,908           29,132
Total current liabilities                       107,936          101,019
Long-term debt, net of current maturities       195,969           144,500
Other long-term liabilities                     62,591           63,210
Total liabilities                               366,496          308,729
Stockholders’ investment:
Common stock $.01 par value; 100,000 shares
authorized; 37,480 and 34,371 shares issued     375               344
and outstanding
Additional paid-in capital                      382,887           325,034
Retained earnings                               104,483          66,701
Total stockholders’ investment                  487,745          392,079
Total liabilities and stockholders’             $  854,241       $   700,808
investment
                                                                      

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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