XPO Logistics Announces Third Quarter 2014 Results
(Thomson Reuters ONE) -
Generates 48% organic revenue growth company-wide
Reaffirms year-end target run rates for $3 billion of revenue and $150 million
of EBITDA
Adds freight brokerage cold-start in Denver
GREENWICH, Conn. - November 5, 2014 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the third quarter of 2014. Total gross revenue
increased 241.5% year-over-year to $662.5 million, and net revenue increased
402.7% to $175.1 million.
The company reported a net loss of $11.7 million for the quarter, compared with
a net loss of $6.0 million for the same period in 2013. The net loss available
to common shareholders was $12.4 million, or a loss of $0.23 per diluted share,
compared with a net loss of $6.8 million, or a loss of $0.28 per diluted share,
for the same period in 2013.
On an adjusted basis, the net loss available to common shareholders, a non-GAAP
measure, was $7.3 million, or a loss of $0.13 per share for the quarter,
excluding the items detailed below. This compares to an adjusted net loss
available to common shareholders of $10.9 million, or a loss of $0.45 per share,
in the third quarter of 2013.
Adjusted net loss excludes a debt commitment fee of $9.8 million, or $6.1
million after-tax, related to the acquisition of New Breed, which closed on
September 2, 2014; $10.0 million, or $7.1 million after-tax, of transaction and
integration costs primarily related to the acquisitions of New Breed, Pacer and
ACL; $846,000, or $524,000 after-tax, of charges related to the rebranding of
the company's ground expedited and last mile businesses to XPO Express and XPO
Last Mile, respectively; and a $8.6 million tax benefit related to the release
of a valuation allowance against deferred tax assets. Reconciliations of
adjusted net loss to common shareholders and adjusted EPS are provided in the
attached financial tables.
Adjusted earnings (loss) before interest, taxes, depreciation and amortization
("adjusted EBITDA"), a non-GAAP financial measure, improved to a gain of $24.2
million for the quarter, compared with a loss of $7.1 million for the same
period in 2013. Adjusted EBITDA excludes $10.0 million of transaction and
integration costs primarily related to the acquisitions of New Breed, Pacer and
ACL, as well as $846,000 of rebranding costs; and includes 29 days of New Breed
results, as well as $1.8 million of non-cash share-based compensation. A
reconciliation of adjusted EBITDA to net income is provided in the attached
financial table.
The company had approximately $690 million of cash, including $10 million of
restricted cash, as of September 30, 2014.
Reaffirms Full Year 2014 Financial Outlook
The company has reaffirmed its full year 2014 outlook for an annual revenue run
rate of more than $3 billion by December 31, and an annual EBITDA run rate of at
least $150 million by December 31.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said,
"The third quarter was transformational for us on many fronts. We raised $1.2
billion of capital to fund our growth. We generated a net revenue increase of
more than 400%, reflecting the benefit of acquisitions and 48% organic growth.
And we turned in our strongest adjusted EBITDA performance to date - $24 million
- which reflects less than a month of owning New Breed, our largest acquisition
so far. We delivered 58% organic growth in our freight brokerage business, and
more than doubled the revenue run rate of our brokerage cold-starts in 12 months
to $250 million. Most important, our entire organization is gelling into one
integrated operation with a single-minded focus on customer service.
"All of our acquisitions are on track and thriving. In September, we gained
critical mass when we acquired New Breed. Our contract logistics business is off
to a great start, ahead of plan in its first month out of the gate. In July, we
acquired ACL, which recently had a big e-commerce customer win as part of XPO
Last Mile. And in intermodal, our team is doing a very good job of meeting
shipper requirements in a congested rail market. We've made significant gains in
intermodal customer satisfaction and proprietary IT development, including our
new Rail Optimizer system currently in beta test."
Jacobs continued, "We've built a range of technology-based supply chain services
that has grabbed the attention of shippers in North America. And we're currently
in discussions with a number of attractive acquisition prospects in a very
active pipeline. Our targets are primarily in our existing lines of business,
including contract logistics, last mile and freight brokerage."
Third Quarter 2014 Results by Business Unit
* Freight brokerage: The company's freight brokerage business generated total
gross revenue of $518.7 million for the quarter, a 239.8% increase from the
same period in 2013. Net revenue margin grew to 20.8%, from 18.1% in 2013,
an improvement of 270 basis points. The year-over-year increases in revenue
and margin were primarily due to the acquisitions of 3PD, Optima and Pacer,
and 58% organic revenue growth. Organic revenue growth included cold-starts,
which are on an annualized revenue run rate of approximately $250 million,
compared with $120 million a year ago. Excluding the margin benefit of the
last mile and intermodal operations, freight brokerage net revenue margin
improved year-over-year. Third quarter operating income improved to a gain
of $2.0 million, compared with a loss of $3.4 million a year ago.
* Contract logistics: The company's contract logistics business generated net
revenue of $50.1 million and operating income of $4.5 million. The New Breed
acquisition was completed on September 2, 2014.
* Expedited transportation: The company's expedited transportation business
generated total gross revenue of $36.5 million for the quarter, a 45.4%
increase from the same period in 2013. Net revenue margin grew to 30.2%,
compared with 18.1% in 2013, an improvement of 1,210 basis points. The
increase in net revenue margin is primarily attributable to the acquisition
of NLM, which recognizes revenue on a net basis. Third quarter operating
income increased to $2.9 million, from $1.7 million a year ago.
* Freight forwarding: The company's freight forwarding business generated
total gross revenue of $59.7 million for the quarter, a 212.2% increase from
the same period in 2013. Net revenue margin was 10.5%, compared with 13.8%
in 2013. The increase in total gross revenue and the decrease in net revenue
margin were due in part to the consolidation of the former Pacer freight
forwarding operations, which shifted the revenue mix toward higher-revenue,
lower-margin international transactions. Third quarter operating loss was
$20,000, compared with a loss of $2.6 million a year ago.
* Corporate: Corporate SG&A expense for the third quarter of 2014 was $23.0
million, compared with $14.2 million for the third quarter of 2013.
Corporate SG&A for the third quarter of 2014 includes: $10.0 million, or
$7.1 million after-tax, of transaction and integration costs related to
acquisitions; $1.8 million, or $1.1 million after-tax, of non-cash share-
based compensation; and $1.5 million, or $918,000 after-tax, of litigation
costs.
Nine Months 2014 Financial Results
For the nine months ended September 30, 2014, the company reported total revenue
of $1.5 billion, a 242.8% increase from the first nine months of 2013.
For the first nine months of 2014, net loss was $53.6 million, compared with net
loss of $37.9 million for the same period last year. The net loss available to
common shareholders was $55.8 million, or a loss of $1.13 per diluted share,
compared with a net loss of $40.2 million, or a loss of $1.99 per diluted share,
for the same period in 2013.
On an adjusted basis, the net loss available to common shareholders, a non-GAAP
measure, was $28.7 million, or a loss of $0.58 per share for the first nine
months of 2014, excluding the items detailed below. This compares to an adjusted
net loss available to common shareholders of $32.6 million, or a loss of $1.61
per share, for the first nine months of 2013.
Adjusted net loss for the first nine months of 2014 excludes $22.3 million, or
$15.4 million after-tax, of transaction and integration costs related primarily
to the acquisitions of New Breed, Pacer and ACL; debt commitment fees of $14.4
million, or $8.9 million after-tax, related to the acquisitions of New Breed and
Pacer; $3.3 million, or $2.1 after-tax, of accelerated amortization of trade
names; and $1.2 million, or $722,000 after-tax, of charges related to the
rebranding of the company's ground expedited and last mile businesses.
Reconciliations of adjusted net loss to common shareholders and adjusted EPS are
provided in the attached financial tables.
Adjusted EBITDA improved to a gain of $39.8 million for the first nine months of
2014, compared with a loss of $27.0 million for the same period in 2013.
Adjusted EBITDA for the first nine months of 2014 excludes $22.3 million of
transaction and integration costs related primarily to the acquisitions of New
Breed, Pacer and ACL; $1.2 million of charges related to the rebranding of the
company's ground expedited and last mile businesses; and includes $5.6 million
and $3.4 million of non-cash share-based compensation for 2014 and 2013,
respectively. A reconciliation of adjusted EBITDA to net income is provided in
the attached financial table.
Expands Freight Brokerage Network with Cold-start and State Incentives
The company announced the further expansion of its freight brokerage network
with the addition of a cold-start location in Denver, Colo., in the fourth
quarter. The company also announced that it has been approved for tax incentives
through the Kentucky Business Investment Program to create up to 88 jobs at its
Newport, Ky., brokerage location; and has been approved by the Missouri
Department of Economic Development for an economic incentive package to create
up to 125 new jobs at its Kansas City, Mo., brokerage location.
Conference Call
The company will hold a conference call on Thursday, November 6, 2014, at 8:30
a.m. Eastern Time. Participants can call toll-free (from U.S./Canada)
1-800-708-4540; international callers dial +1-847-619-6397. A live webcast of
the conference will be available on the investor relations area of the company's
website, www.xpo.com/investors. The conference will be archived until December
6, 2014. To access the replay by phone, call toll-free (from U.S./Canada)
1-888-843-7419; international callers dial +1-630-652-3042. Use participant
passcode 38176896.
About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) facilitates more than 33,000 deliveries a day as
one of the fastest growing providers of transportation logistics services in
North America. XPO is the fourth largest freight brokerage firm, the third
largest provider of intermodal services, the largest provider of last mile
logistics for heavy goods, the largest manager of expedited shipments, and the
leading provider of highly engineered, technology-enabled contract logistics.
Additionally, the company has growing positions in managed transportation,
global freight forwarding and less-than-truckload brokerage.
XPO has 199 locations and approximately 10,700 employees. Its four business
segments - freight brokerage, contract logistics, expedited transportation and
freight forwarding - utilize relationships with ground, rail, sea and air
carriers and other suppliers to serve over 15,000 customers in the
manufacturing, industrial, retail, technology, aerospace, commercial, life
sciences and governmental sectors. The company has more than 4,000 trucks under
contract to its drayage, expedited and last mile subsidiaries, and has access to
additional capacity through its relationships with over 28,000 other carriers.
For more information: www.xpo.com
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined under
Securities and Exchange Commission ("SEC") rules, such as adjusted net loss
available to common shareholders, adjusted EPS, adjusted earnings (loss) before
interest, taxes, depreciation and amortization ("EBITDA"), in each case for the
quarters and nine-month periods ended September 30, 2014 and 2013. As required
by SEC rules, we provide reconciliations of these measures to the most directly
comparable measure under United States generally accepted accounting principles
("GAAP"), which are set forth in the attachments to this release. We believe
that adjusted net loss available to common shareholders improves comparability
from period to period by removing the impact of nonrecurring expense items,
including items related to our rebranding of Express-1 to XPO Express and our
acquisition of Pacer, which we completed on March 31, 2014, and our acquisitions
of ACL and New Breed, which we completed during the third quarter. We believe
that adjusted EBITDA improves comparability from period to period by removing
the impact of our capital structure (interest expense from our outstanding
debt), asset base (depreciation and amortization), tax consequences and
transaction and integration costs related to the acquisitions of New Breed,
Pacer and ACL. In addition to its use by management, we believe that adjusted
EBITDA is a measure widely used by securities analysts, investors and others to
evaluate the financial performance of companies in our industry. Other companies
may calculate adjusted EBITDA differently, and therefore our measure may not be
comparable to similarly titled measures of other companies. Adjusted EBITDA is
not a measure of financial performance or liquidity under GAAP and should not be
considered in isolation or as an alternative to net income, cash flows from
operating activities and other measures determined in accordance with GAAP.
Items excluded from adjusted EBITDA are significant and necessary components of
the operations of our business, and, therefore, adjusted EBITDA should only be
used as a supplemental measure of our operating performance.
Forward-looking Statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including the company's full year
2014 financial targets and the receipt of tax incentives from the Kentucky
Business Investment Program. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking statements. In some cases,
forward-looking statements can be identified by the use of forward-looking terms
such as "anticipate," "estimate," "believe," "continue," "could," "intend,"
"may," "plan," "potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or
the negative of these terms or other comparable terms. However, the absence of
these words does not mean that the statements are not forward-looking. These
forward-looking statements are based on certain assumptions and analyses made by
us in light of our experience and our perception of historical trends, current
conditions and expected future developments, as well as other factors we believe
are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute to a material
difference include those discussed in XPO's filings with the SEC and the
following: economic conditions generally; competition; XPO's ability to find
suitable acquisition candidates and execute its acquisition strategy; the
expected impact of the acquisitions, including the expected impact on XPO's
results of operations; the ability to realize anticipated synergies and cost
savings with respect to acquired companies; XPO's ability to raise debt and
equity capital; XPO's ability to attract and retain key employees to execute its
growth strategy, including management teams; litigation, including litigation
related to alleged misclassification of independent contractors; the ability to
develop and implement a suitable information technology system; the ability to
maintain positive relationships with XPO's networks of third-party
transportation providers; the ability to retain XPO's and acquired companies'
largest customers; XPO's ability to successfully integrate New Breed, ACL and
other acquired businesses; rail and other network changes; weather and other
service disruptions; and governmental regulation. All forward-looking statements
set forth in this press release are qualified by these cautionary statements and
there can be no assurance that the actual results or developments anticipated
will be realized or, even if substantially realized, that they will have the
expected consequences to, or effects on, XPO or its businesses or operations.
Forward-looking statements set forth in this document speak only as of the date
hereof, and XPO undertakes no obligation to update forward-looking statements to
reflect subsequent events or circumstances, changes in expectations or the
occurrence of unanticipated events except to the extent required by law.
Investor Contact:
XPO Logistics, Inc.
Tavio Headley, +1-203-930-1602
tavio.headley(at)xpo.com
Media Contacts:
Brunswick Group
Darren McDermott, +1-212-333-3810
XPO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2014 2013 2014 2013
------------ ------------ ------------- -----------
Revenue $ 662,470 $ 193,982 $ 1,525,882 $ 445,071
Operating expenses
Cost of purchased
transportation and services 487,365 159,147 1,170,509 374,636
Direct operating expense 71,026 2,077 102,118 2,077
Sales, general and
administrative expense 117,717 51,177 300,148 112,159
------------ ------------ ------------- -----------
Total operating expenses 676,108 212,401 1,572,775 488,872
------------ ------------ ------------- -----------
Operating loss (13,638) (18,419) (46,893) (43,801)
------------ ------------ ------------- -----------
Other expense 296 235 546 294
Interest expense 17,842 6,415 31,303 12,585
------------ ------------ ------------- -----------
Loss before income tax
provision (31,776) (25,069) (78,742) (56,680)
Income tax benefit (20,077) (19,044) (25,147) (18,748)
------------ ------------ ------------- -----------
Net loss (11,699) (6,025) (53,595) (37,932)
Cumulative preferred
dividends (733) (743) (2,208) (2,229)
------------ ------------ ------------- -----------
Net loss available to
common shareholders $ (12,432) $ (6,768) $ (55,803) $ (40,161)
------------ ------------ ------------- -----------
Basic loss per share
Net loss $ (0.23) $ (0.28) $ (1.13) $ (1.99)
Diluted loss per share
Net loss $ (0.23) $ (0.28) $ (1.13) $ (1.99)
Weighted average common
shares outstanding
Basic weighted average
common shares outstanding 54,470 24,222 49,497 20,167
Diluted weighted average
common shares outstanding 54,470 24,222 49,497 20,167
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
September 30, December 31,
2014 2013
---------------- --------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 680,101 $ 21,524
Accounts receivable, net of allowances of
$8,148 and $3,539, respectively 475,323 134,227
Prepaid expenses 16,682 3,935
Deferred tax asset, current 8,581 3,041
Income tax receivable 13,217 -
Other current assets 9,875 7,304
---------------- --------------
Total current assets 1,203,779 170,031
---------------- --------------
Property and equipment, net of $33,392 and
$11,803
in accumulated depreciation, respectively 224,138 56,571
Goodwill 918,485 363,448
Identifiable intangible assets, net of
$54,560 and $15,411
in accumulated amortization, respectively 363,004 185,179
Deferred tax asset, long-term 76 72
Restricted cash 10,315 2,141
Other long-term assets 26,496 2,799
---------------- --------------
Total long-term assets 1,542,514 610,210
---------------- --------------
Total assets $ 2,746,293 $ 780,241
---------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 241,354 $ 71,391
Accrued salaries and wages 45,577 11,741
Accrued expenses, other 47,772 9,489
Current maturities of long-term debt 2,907 2,028
Other current liabilities 7,960 4,684
---------------- --------------
Total current liabilities 345,570 99,333
---------------- --------------
Senior notes due 2019 500,000 -
Convertible senior notes 102,339 106,268
Revolving credit facility and other long-term
debt, net of current maturities 229 75,373
Deferred tax liability, long-term 83,813 15,200
Other long-term liabilities 61,854 28,224
---------------- --------------
Total long-term liabilities 748,235 225,065
---------------- --------------
Commitments and contingencies
Stockholders' equity:
Series A convertible perpetual preferred
stock, $.001 par value; 10,000,000 shares;
73,335 and 74,175 shares issued and
outstanding at September 30, 2014 and
December 31, 2013, respectively 42,258 42,737
Series B convertible perpetual preferred
stock, $.001 par value; 371,848 shares;
371,848 and 0 shares issued and outstanding
at September 30, 2014 and
December 31, 2013, respectively 363,898 -
Common stock, $.001 par value; 150,000,000
shares authorized;
64,486,445 issued and outstanding at
September 30, 2014 and 30,583,073 and
30,538,073 shares issued and outstanding,
respectively, at December 31, 2013 64 30
Additional paid-in capital 1,413,860 524,972
Treasury stock, at cost, 0 and 45,000 shares
held, respectively - (107)
Accumulated deficit (167,592) (111,789)
---------------- --------------
Total stockholders' equity 1,652,488 455,843
---------------- --------------
Total liabilities and stockholders' equity $ 2,746,293 $ 780,241
---------------- --------------
XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Nine Months Ended
September 30,
2014 2013
------------- ------------
Operating activities
Net loss $ (53,595) $ (37,932)
Adjustments to reconcile net loss to net cash from
operating activities
Provisions for allowance for doubtful accounts 5,108 1,855
Depreciation and amortization 63,790 11,743
Stock compensation expense 5,636 3,374
Accretion of debt 4,199 4,437
Deferred tax expense (28,686) (18,882)
Other 2,147 (201)
Changes in assets and liabilities, net of effects of
acquisitions:
Accounts receivable (73,472) (28,096)
Income tax payable (receivable) 2,889 (662)
Prepaid expense and other current assets 3,027 (2,373)
Other long-term assets (1,688) (97)
Accounts payable 39,714 (1,725)
Accrued expenses and other liabilities 17,674 7,014
------------- ------------
Cash flows used by operating activities (13,257) (61,545)
------------- ------------
Investing activities
Acquisition of businesses, net of cash acquired (813,657) (352,266)
Payment for purchases of property and equipment (21,600) (6,535)
Other 339 125
------------- ------------
Cash flows used by investing activities (834,918) (358,676)
------------- ------------
Financing activities
Proceeds from common stock offerings, net 733,954 239,660
Proceeds from issuance of preferred stock, net 363,898 -
Proceeds from issuance of senior notes, net 489,641 -
Proceeds from borrowing on revolving credit
facility 130,000 -
Repayment of borrowings on revolving credit
facility (205,000) -
Dividends paid to preferred stockholders (2,208) (2,229)
Payments of tax withholdings for restricted shares (2,501) (1,585)
Other (1,032) (659)
------------- ------------
Cash flows provided by financing activities 1,506,752 235,187
------------- ------------
Net increase (decrease) in cash 658,577 (185,034)
Cash and cash equivalents, beginning of period 21,524 252,293
------------- ------------
Cash and cash equivalents, end of period $ 680,101 $ 67,259
------------- ------------
Supplemental disclosure of cash flow information:
Cash paid for interest $ 15,282 $ 6,611
Cash (received) paid for income taxes $ (1,091) $ 907
Equity portion of acquisition purchase price $ 138,252 $ 10,446
Freight Brokerage
Summary Financial Table
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------------- -----------------------------------------------
$ Change $ Change
2014 2013 Variance % 2014 2013 Variance %
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Revenue $ 518,656 $ 152,616 $ 366,040 239.8% $ 1,243,734 $ 326,206 $ 917,528 281.3%
Cost of
purchased
transportation
and services 410,977 124,966 286,011 228.9% 986,631 275,923 710,708 257.6%
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Net revenue 107,679 27,650 80,029 289.4% 257,103 50,283 206,820 411.3%
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Direct
operating
expense 29,090 2,077 27,013 1300.6% 60,182 2,077 58,105 2797.5%
SG&A expense
Salaries &
benefits 39,608 17,442 22,166 127.1% 103,928 39,972 63,956 160.0%
Other SG&A
expense 13,209 5,172 8,037 155.4% 32,389 10,097 22,292 220.8%
Purchased
services 4,641 1,763 2,878 163.2% 11,449 3,556 7,893 222.0%
Depreciation
& amortization 19,158 4,611 14,547 315.5% 46,747 6,805 39,942 587.0%
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Total SG&A
expense 76,616 28,988 47,628 164.3% 194,513 60,430 134,083 221.9%
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Operating
income (loss) $ 1,973 $ (3,415) $ 5,388 -157.8% $ 2,408 $ (12,224) $ 14,632 -119.7%
----------- ----------- ----------- --------- ------------- ------------ ----------- --------
Note: Total depreciation and amortization for the Freight Brokerage reportable
segment included in both direct operating expense and SG&A, was $21,090,000 and
$4,611,000 for the three-months ended September 30, 2014 and 2013, respectively,
and $49,354,000 and $6,805,000 for the nine-months ended September 30, 2014 and
2013, respectively.
Freight Brokerage
Key Data
(In thousands, except personnel data)
3 Mos Ended 3 Mos Ended 9 Mos Ended 9 Mos Ended
September September September September
30, 30, 30, 30,
2014 2013 2014 2013
---------------- ---------------- ---------------- --------------
Revenue
Truckload,
LTL, and
Intermodal $ 395,246 $ 106,081 $ 927,322 $ 279,671
Last Mile 123,410 46,535 316,412 46,535
---------------- ---------------- ---------------- --------------
Total Revenue $ 518,656 $ 152,616 $ 1,243,734 $ 326,206
---------------- ---------------- ---------------- --------------
Net Revenue
Truckload
and LTL $ 25,387 $ 14,063 $ 69,438 $ 36,404
Intermodal 47,198 380 97,110 672
---------------- ---------------- ---------------- --------------
Total
Truckload,
LTL, and
Intermodal 72,585 14,443 166,548 37,076
Last Mile 35,094 13,207 90,555 13,207
---------------- ---------------- ---------------- --------------
Total Net
Revenue $ 107,679 $ 27,650 $ 257,103 $ 50,283
---------------- ---------------- ---------------- --------------
Net Revenue %
Truckload,
LTL, and
Intermodal 18.4% 13.6% 18.0% 13.3%
Last Mile 28.4% 28.4% 28.6% 28.4%
---------------- ---------------- ---------------- --------------
Overall Net
Revenue % 20.8% 18.1% 20.7% 15.4%
---------------- ---------------- ---------------- --------------
Direct
Operating
Expense
Intermodal $ 23,361 $ - $ 46,233 $ -
Last Mile 5,729 2,077 13,949 2,077
---------------- ---------------- ---------------- --------------
Total Direct
Operating
Expense $ 29,090 $ 2,077 $ 60,182 $ 2,077
---------------- ---------------- ---------------- --------------
Freight
Brokerage
personnel
(end of
period) 2,411 1,489
Note: Employee totals are as of period end, and primarily include the positions
of shipper sales, carrier procurement and brokerage operations, and reflect the
impact of recruitment and acquisitions.
Expedited Transportation
Summary Financial Table
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------- ------------------------------------------
$ Change $ Change
2014 2013 Variance % 2014 2013 Variance %
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Revenue $ 36,489 $ 25,101 $ 11,388 45.4% $ 106,530 $ 75,421 $ 31,109 41.2%
Cost of
purchased
transportation
and services 25,479 20,563 4,916 23.9% 72,988 62,866 10,122 16.1%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Net revenue 11,010 4,538 6,472 142.6% 33,542 12,555 20,987 167.2%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
SG&A expense
Salaries &
benefits 4,341 1,893 2,448 129.3% 12,871 5,854 7,017 119.9%
Other SG&A
expense 1,607 470 1,137 241.9% 4,734 1,587 3,147 198.3%
Purchased
services 608 212 396 186.8% 1,604 747 857 114.7%
Depreciation
& amortization 1,580 224 1,356 605.4% 8,077 689 7,388 1072.3%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Total SG&A
expense 8,136 2,799 5,337 190.7% 27,286 8,877 18,409 207.4%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Operating
income 2,874 1,739 1,135 65.3% 6,256 3,678 2,578 70.1%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Accelerated
amortization
of Express-1
trade name - - - 0.0% 3,346 - 3,346 100.0%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Adjusted
operating
income $ 2,874 $ 1,739 $ 1,135 65.3% $ 9,602 $ 3,678 $ 5,924 161.1%
---------- ---------- ---------- -------- ----------- ---------- ---------- --------
Note: Total depreciation and amortization for the Expedited Transportation
reportable segment included in both cost of purchased transportation and
services and SG&A, was $1,615,000 and $262,000 for the three-months ended
September 30, 2014 and 2013, respectively, and $8,181,000 and $821,000 for the
nine-months ended September 30, 2014 and 2013, respectively.
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release.
Freight Forwarding
Summary Financial Table
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------- -------------------------------------------
$ Change $ Change
2014 2013 Variance % 2014 2013 Variance %
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
Revenue $ 59,721 $ 19,129 $ 40,592 212.2% $ 133,405 $ 54,700 $ 78,705 143.9%
Cost of
purchased
transportation
and services 53,424 16,481 36,943 224.2% 118,797 47,103 71,694 152.2%
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
Net revenue 6,297 2,648 3,649 137.8% 14,608 7,597 7,011 92.3%
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
SG&A expense
Salaries &
benefits 3,674 1,618 2,056 127.1% 9,180 4,569 4,611 100.9%
Other SG&A
expense 1,610 328 1,282 390.9% 3,578 1,048 2,530 241.4%
Purchased
services 524 63 461 731.7% 1,108 311 797 256.3%
Depreciation
& amortization 509 3,227 (2,718) -84.2% 1,110 3,407 (2,297) -67.4%
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
Total SG&A
expense 6,317 5,236 1,081 20.6% 14,976 9,335 5,641 60.4%
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
Operating loss $ (20) $ (2,588) $ 2,568 -99.2% $ (368) $ (1,738) $ 1,370 -78.8%
---------- ----------- ----------- -------- ----------- ----------- ----------- -------
Contract Logistics
Summary Financial Table
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------- ------------------------------------
$ Change $ Change
2014 2013 Variance % 2014 2013 Variance %
---------- ------ ---------- -------- ---------- ------ ---------- -------
Net revenue $ 50,120 $ - $ 50,120 100.0% $ 50,120 $ - $ 50,120 100.0%
Direct
operating
expense 41,936 - 41,936 100.0% 41,936 - 41,936 100.0%
SG&A expense
Salaries &
benefits 1,582 - 1,582 100.0% 1,582 - 1,582 100.0%
Other SG&A
expense 516 - 516 100.0% 516 - 516 100.0%
Purchased
services 358 - 358 100.0% 358 - 358 100.0%
Depreciation
&
amortization 1,224 - 1,224 100.0% 1,224 - 1,224 100.0%
---------- ------ ---------- -------- ---------- ------ ---------- -------
Total SG&A
expense 3,680 - 3,680 100.0% 3,680 - 3,680 100.0%
---------- ------ ---------- -------- ---------- ------ ---------- -------
Operating
income $ 4,504 $ - $ 4,504 100.0% $ 4,504 $ - $ 4,504 100.0%
---------- ------ ---------- -------- ---------- ------ ---------- -------
Note: Total depreciation and amortization for the Contract Logistics reportable
segment included in both direct operating expense and SG&A, was $3,450,000 for
the three- and nine-months ended September 30, 2014.
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------- ----------------------------------------
$ Change $ Change
2014 2013 Variance % 2014 2013 Variance %
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
SG&A expense
Salaries &
benefits $ 7,127 $ 5,995 $ 1,132 18.9% $ 23,922 $ 15,095 $ 8,827 58.5%
Other SG&A
expense 4,660 2,097 2,563 122.2% 10,153 4,791 5,362 111.9%
Purchased
services 10,599 5,767 4,832 83.8% 23,923 12,921 11,002 85.1%
Depreciation
&
amortization 583 296 287 97.0% 1,695 710 985 138.7%
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
Total SG&A
expense $ 22,969 $ 14,155 $ 8,814 62.3% $ 59,693 $ 33,517 $ 26,176 78.1%
---------- ---------- ---------- -------- ---------- ---------- ---------- -------
Note: Intercompany eliminations included revenue of $2.5 million and $2.9
million for the three-months ended September 30, 2014 and 2013, respectively,
and $7.9 million and $11.3 million for the nine-months ended September 30, 2014
and 2013, respectively.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of EBITDA to Net Loss
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
Change Change
2014 2013 % 2014 2013 %
------------ ------------ --------- ------------ ------------ --------
Net loss
available to
common
shareholders $ (12,432) $ (6,768) 83.7% $ (55,803) $ (40,161) 38.9%
Preferred
dividends (733) (743) -1.3% (2,208) (2,229) -0.9%
------------ ------------ --------- ------------ ------------ --------
Net loss (11,699) (6,025) 94.2% (53,595) (37,932) 41.3%
------------ ------------ --------- ------------ ------------ --------
Debt
commitment
fees((1)) 9,772 3,018 223.8% 14,396 3,018 377.0%
Other
interest
expense 8,070 3,397 137.6% 16,907 9,567 76.7%
Income tax
benefit (20,077) (19,044) 5.4% (25,147) (18,748) 34.1%
Accelerated
amortization
of trade
names - 3,070 -100.0% 3,346 3,070 9.0%
Other
depreciation
and
amortization 27,247 5,326 411.6% 60,444 8,673 596.9%
------------ ------------ --------- ------------ ------------ --------
EBITDA $ 13,313 $ (10,258) -229.8% $ 16,351 $ (32,352) -150.5%
------------ ------------ --------- ------------ ------------ --------
Transaction
and
integration
costs 10,004 3,150 217.6% 22,290 5,307 320.0%
XPO Express
and XPO Last
Mile
rebranding
costs 846 - 100.0% 1,166 - 100.0%
------------ ------------ --------- ------------ ------------ --------
Adjusted
EBITDA $ 24,163 $ (7,108) -439.9% $ 39,807 $ (27,045) -247.2%
------------ ------------ --------- ------------ ------------ --------
(1)Debt commitment fees are recorded in interest expense.
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of GAAP Net Loss and Net Loss Per Share to
Adjusted Net Loss and Net Loss Per Share
Three Months Ended Nine Months Ended
September 30, September 30,
2014 2013 2014 2013
-------------- -------------- -------------- -------------
GAAP net loss
available to common
shareholders $ (12,432) $ (6,768) $ (55,803) $ (40,161)
Accelerated
amortization of
trade names - 3,070 3,346 3,070
XPO Express and
XPO Last Mile
rebranding costs 846 - 1,166 -
Transaction and
integration costs 10,004 3,150 22,290 5,307
Debt commitment
fees((1)) 9,772 3,018 14,396 3,018
Tax impact of
above adjustments (6,902) (2,964) (14,110) (3,788)
Release of tax
valuation allowance (8,592) (10,437) - -
-------------- -------------- -------------- -------------
Adjusted net loss
available to common
shareholders $ (7,304) $ (10,931) $ (28,715) $ (32,554)
-------------- -------------- -------------- -------------
Adjusted basic loss
per share
Adjusted net loss $ (0.13) $ (0.45) $ (0.58) $ (1.61)
Adjusted diluted
loss per share
Adjusted net loss $ (0.13) $ (0.45) $ (0.58) $ (1.61)
Weighted average
common shares
outstanding
Basic weighted
average common
shares outstanding 54,470 24,222 49,497 20,167
Diluted weighted
average common
shares outstanding 54,470 24,222 49,497 20,167
(1)Debt commitment fees are recorded in interest expense.
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release.
XPO Logistics, Inc.
Consolidated Calculation of Diluted Weighted Shares Outstanding
Three Months Ended Nine Months Ended
-------------------------------- ------------------------------
September September September September
30, 2014 30, 2013 30, 2014 30, 2013
---------------- --------------- --------------- --------------
Basic common
stock
outstanding 54,469,943 24,221,987 49,497,353 20,167,436
---------------- --------------- --------------- --------------
Potentially
Dilutive
Securities:
Shares
underlying the
conversion 10,476,430 10,604,891 10,485,283 10,608,752
of preferred
stock to common
stock
Shares
underlying the
conversion 7,341,490 8,749,239 7,473,420 8,749,239
of the
convertible
senior notes
Shares
underlying
warrants to 8,222,305 7,348,157 8,011,371 6,721,704
purchase
common stock
Shares
underlying
stock options 557,973 424,122 529,072 347,356
to purchase
common stock
Shares
underlying
restricted
stock units 821,892 432,888 713,498 332,488
---------------- --------------- --------------- --------------
27,420,090 27,559,297 27,212,644 26,759,539
---------------- --------------- --------------- --------------
---------------- --------------- --------------- --------------
Diluted
weighted shares
outstanding 81,890,033 51,781,284 76,709,997 46,926,975
---------------- --------------- --------------- --------------
Note: For dilution purposes, GAAP requires diluted shares to be reflected on a
weighted average basis, which takes into account the portion of the period in
which the diluted shares were outstanding. The table above reflects the weighted
average diluted shares for the periods presented. Due to the contingent
stockholder approval necessary to convert the Series B Convertible Perpetual
Preferred Stock into common stock, the Series B Convertible Perpetual Preferred
Stock will not be included in the denominator used to calculate diluted earnings
per common share until the contingency has been satisfied. The impact of this
dilution was not reflected in the earnings per share calculations on the
Condensed Consolidated Statements of Operations because the impact was anti-
dilutive. The treasury method was used to determine the shares underlying the
warrants to purchase common stock with an average closing market price of common
stock of $31.57 per share and $22.31 per share for the three months ended
September 30, 2014 and 2013, respectively, and $28.96 per share and $18.81 per
share for the nine months ended September 30, 2014 and 2013, respectively.
For informational purposes, the following table represents fully diluted shares
as of September 30, 2014, calculated on a non-weighted basis without giving
effect to the portion of any period in which the diluted shares were
outstanding. The Series B Convertible Perpetual Preferred Stock conversion into
common stock has been included for informational purposes although conversion is
contingent upon obtaining shareholder approval. The dilutive effect of the
warrants, options and RSUs in the table was calculated using the closing market
price of common stock on September 30, 2014. A non-weighted basis for
calculating fully diluted shares is a non-GAAP financial measure as defined
under SEC rules.
XPO Logistics, Inc.
Diluted Shares as of September 30, 2014
------------------------------------------
Common stock outstanding 64,486,445
Series A preferred stock 10,476,430
Series B preferred stock 12,128,115
Convertible senior notes 7,341,341
Warrants 8,602,026
Outstanding stock options 681,468
Restricted stock units 1,959,906
------------------------------------------
Total 105,675,731
------------------------------------------
XPO 3Q 14 Press Release:
http://hugin.info/155059/R/1869050/657043.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: XPO Logistics, Inc. via GlobeNewswire
[HUG#1869050]
Unternehmensinformation / Kurzprofil:
Datum: 05.11.2014 - 22:03 Uhr
Sprache: Deutsch
News-ID 350152
Anzahl Zeichen: 62710
contact information:
Town:
Greenwich
Kategorie:
Business News
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"XPO Logistics Announces Third Quarter 2014 Results"
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