XPO Logistics Announces Second Quarter 2015 Results
(Thomson Reuters ONE) -
Reports $80 million of adjusted EBITDA
Achieves significant margin improvement in transportation and logistics
Issues 2019 targets for $23 billion of revenue and $1.5 billion of EBITDA
GREENWICH, Conn. - August 5, 2015 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the second quarter of 2015, including 22 days of
financial performance from the operations of Norbert Dentressangle SA. Total
gross revenue increased 109.3% year-over-year to $1.2 billion, and net revenue
increased 317.2% to $508.6 million.
On a GAAP basis, the company reported a net loss of $78.8 million for the
quarter, compared with a net loss of $13.8 million for the same period in 2014.
The net loss available to common shareholders was $75.1 million, or a loss of
$0.89 per diluted share, compared with a net loss available to common
shareholders of $14.5 million, or a loss of $0.28 per diluted share, for the
same period in 2014.
On an adjusted basis, the net loss available to common shareholders, a non-GAAP
measure, was $13.6 million, or a loss of $0.16 per share for the quarter,
excluding the items detailed below. This compares with an adjusted net loss
available to common shareholders of $11.6 million, or a loss of $0.22 per share,
for the second quarter of 2014.
Adjusted net loss available to common shareholders for the second quarter of
2015 excludes: $78.8 million, or $62.6 million after-tax, of transaction and
integration costs; $8.6 million, or $6.1 million after-tax, of debt commitment
fees; $4.4 million, or $3.2 million after-tax, of rebranding costs; $0.4
million, or $0.3 million after-tax, of costs related to the conversion of the
company's convertible senior notes; a $6.6 million benefit from reversing the
non-controlling interests related to the adjustments; and a $5.7 million
benefit, or $4.1 million after-tax, related to the gain on sale of intermodal
equipment. Reconciliations of adjusted net loss available to common shareholders
and adjusted EPS are provided in the attached financial tables.
Adjusted earnings before interest, taxes, depreciation and amortization
("adjusted EBITDA"), a non-GAAP financial measure, improved to $79.7 million for
the quarter, compared with $14.1 million for the same period in 2014. The
acquisitions of Norbert Dentressangle and Bridge Terminal Transport accounted
for $34.3 million of adjusted EBITDA. Adjusted EBITDA in the second quarter of
2015 excludes $78.8 million of transaction and integration costs; $4.4 million
of non-controlling interests; $2.5 million of rebranding costs; and a $5.7
million benefit related to the gain on sale of intermodal equipment assets.
Adjusted EBITDA in the quarter includes $4.6 million of non-cash share-based
compensation. A reconciliation of adjusted EBITDA to net loss is provided in the
attached financial tables.
The company had $1.2 billion of cash as of July 31, 2015.
Issues New Long-Term Targets
The company issued new long-term financial targets to reflect its expanded
platform for global growth. For the full year 2019, the targets are:
* Revenue of approximately $23 billion; and
* EBITDA of approximately $1.5 billion.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said,
"We're continuing to grow the company at a rapid pace, well ahead of plan. In
the second quarter, we more than doubled our gross revenue year-over-year, grew
our net revenue four-fold, and increased adjusted EBITDA more than five-fold.
These results included just 22 days of the Norbert Dentressangle acquisition and
one month of Bridge Terminal Transport. The most notable organic contributions
to EBITDA came from our businesses in truck brokerage, expedite and last mile,
where we recently won a coveted e-commerce contract.
"The integration of Norbert Dentressangle is exceeding expectations, and the
rebranding to XPO Logistics is moving along quickly. We've already begun to
realize synergies between our operations. Next month, for example, we'll open a
contract logistics facility in Pennsylvania to support a Spain-based retailer in
expanding its U.S. footprint. Our European operations have served this customer
for years - now it's an important new relationship for us in North America as
well. And with last mile, our customers have been asking us to bring this
expertise to Europe."
Jacobs continued, "We're in a strong position to act on acquisition
opportunities on both sides of the Atlantic, with more than $1.2 billion in
cash, an untapped ABL facility, and a highly integrated global platform. Our new
trajectory puts us on track to nearly triple the size of our company in four
years. We're now targeting approximately $23 billion of revenue and $1.5 billion
of EBITDA in 2019."
Second Quarter 2015 Results by Segment
* Transportation: The company's transportation segment, which includes truck
brokerage and intermodal, last mile, expedite, less than truckload,
truckload, and global forwarding, generated total gross revenue of $861.2
million for the quarter, a 48.2% increase from the same period in 2014. The
year-over-year increase in segment revenue was primarily due to the
acquisition of Norbert Dentressangle, and to 4% organic growth, or an
estimated 10% organic growth excluding the impact of lower fuel prices. Net
revenue margin for the second quarter was 22.5%, compared with 21.0% in
2014. The increase in net revenue margin was primarily due to organic margin
improvements in the truck brokerage, last mile and expedite businesses, and
to the acquisitions of Norbert Dentressangle and Bridge Terminal Transport.
Second quarter EBITDA for the segment improved to $52.1 million, compared
with $27.9 million a year ago. Operating income improved to $23.0 million,
compared with $3.2 million a year ago. The increases in EBITDA and operating
income were largely due to improved performance by the company's truck
brokerage, last mile and expedite businesses, and to the acquisition of
Norbert Dentressangle. Transportation EBITDA and operating income reflect
$5.9 million of transaction and integration costs. The company's European
business contributed transportation gross revenue of $171.6 million, EBITDA
of $8.4 million, and operating income of $1.9 million. A reconciliation of
EBITDA to operating income for the transportation segment is provided in the
attached financial tables.
* Logistics: The company's logistics segment, which provides contract
logistics and related supply chain services, generated gross revenue of
$359.6 million, net revenue of $314.0 million, EBITDA of $30.9 million and
operating income of $4.3 million. Logistics EBITDA and operating income
reflect $5.5 million of transaction and integration costs. The company's
European business contributed logistics gross revenue of $177.4 million, net
revenue of $133.0 million, EBITDA of $6.2 million and operating loss of $3.8
million. A reconciliation of EBITDA to operating income for the logistics
segment is provided in the attached financial tables.
* Corporate: Corporate SG&A expense was $57.4 million, compared with $15.1
million for the second quarter of 2014. The increase was primarily due to an
increase in restructuring, legal and acquisition-related transaction costs.
Expense for the quarter includes: $39.8 million, or $33.8 million after-tax,
of transaction and integration costs related to acquisitions; $1.9 million,
or $1.3 million after-tax, of non-cash share-based compensation; and $1.4
million, or $1.1 million after-tax, of litigation costs.
Six Months 2015 Financial Results
For the six months ended June 30, 2015, the company reported total revenue of
$1.9 billion, a 122.2% increase from the same period in 2014.
On a GAAP basis, the company reported a net loss of $93.2 million for the first
six months, compared with a net loss of $42.1 million for the same period last
year. The net loss available to common shareholders was $90.3 million, or a loss
of $1.11 per diluted share, compared with a net loss of $43.6 million, or a loss
of $0.92 per diluted share, for the same period in 2014.
On an adjusted basis, the net loss available to common shareholders, a non-GAAP
measure, was $22.7 million, or a loss of $0.28 per share for the first six
months, excluding the items detailed below. This compares with an adjusted net
loss available to common shareholders of $25.3 million, or a loss of $0.54 per
share, for the same period in 2014.
Adjusted net loss for the first six months of 2015 excludes $79.6 million, or
$63.2 million after-tax, of transaction and integration costs; $8.6 million, or
$6.1 million after-tax, of debt commitment fees; $6.9 million, or $5.5 million
after-tax, of costs related to the conversion of the company's convertible
senior notes; $4.9 million, or $3.5 million after-tax, of rebranding costs; a
$6.6 million benefit from reversing the non-controlling interests related to the
adjustments; and a $5.7 million benefit, or $4.1 million after-tax, related to
the gain on sale of intermodal equipment assets. Reconciliations of adjusted net
loss to common shareholders and adjusted EPS are provided in the attached
financial tables.
Adjusted EBITDA for the first six months of 2015 improved to a gain of $109.3
million, compared with a gain of $14.8 million for the same period in 2014.
Adjusted EBITDA for the first six months of 2015 excludes $79.6 million of
transaction and integration costs; $4.4 million of non-controlling interests;
$2.5 million of rebranding costs; and a $5.7 million benefit related to the gain
on sale of intermodal equipment assets. Adjusted EBITDA for the first six months
of 2015 includes $6.9 million of non-cash share-based compensation. A
reconciliation of adjusted EBITDA to net loss is provided in the attached
financial table.
Conference Call
The company will hold a conference call on Thursday, August 6, 2015, at 8:30
a.m. Eastern Time. Participants can call toll-free (from U.S./Canada)
1-800-708-4539; international callers dial +1-847-619-6396. 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 September
5, 2015. 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 40169457.
About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) is a top ten global provider of cutting-edge
supply chain solutions to the most successful companies in the world. The
company provides high-value-added services for surface transportation, including
freight brokerage, intermodal, last mile and expedite; highly engineered
contract logistics; warehousing and distribution; and global forwarding by
ground, air and sea. XPO serves more than 30,000 customers with a highly
integrated network of over 54,000 employees and 887 locations in 27 countries.
www.xpo.com
XPO's corporate headquarters is in Greenwich, Conn., USA, and its European
headquarters is in Lyon, France. The company holds an 86.25% controlling
interest in Norbert Dentressangle SA. The remaining ND stock is traded as GND on
Euronext Paris / Euronext London - Isin FR0000052870. www.norbert-
dentressangle.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 and adjusted EBITDA, in each case for the
three- and six-month periods ended June 30, 2015 and 2014, and EBITDA for the
Transportation and Logistics segments for the quarters ended June 30, 2015 and
2014. 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 acquisition-related transaction and
integration costs; debt commitment fees; costs related to the rebranding to XPO
Logistics (including accelerated amortization of trade names); loss on the
conversion of the company's convertible senior notes; impact of non-controlling
interests; and gain on sale of intermodal equipment. We believe that EBITDA and
adjusted EBITDA improve comparability from period to period by removing the
impact of our capital structure (interest expense from our outstanding debt),
asset base (depreciation and amortization) and tax consequences, and the
nonrecurring expense items noted above. In addition to its use by management, we
believe that EBITDA and adjusted EBITDA are measures widely used by securities
analysts, investors and others to evaluate the financial performance of
companies in our industry. Other companies may calculate EBITDA and adjusted
EBITDA differently, and therefore our measure may not be comparable to similarly
titled measures of other companies. EBITDA and adjusted EBITDA are not measures
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 EBITDA and adjusted EBITDA are significant and necessary components of the
operations of our business, and, therefore, EBITDA and 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
2019 financial targets. 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," "trajectory," "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 Norbert Dentressangle acquisition and other acquisitions,
including the expected impact on XPO's results of operations; the ability to
successfully integrate and realize anticipated synergies and cost savings with
respect to Norbert Dentressangle and other 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 retention of Norbert Dentressangle's
and other acquired companies' 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, Norbert Dentressangle's and other
acquired companies' networks of third-party transportation providers; the
ability to retain XPO's, Norbert Dentressangle's and other acquired companies'
largest customers; rail and other network changes; weather, strikes,
unionization efforts 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 Contact:
Brunswick Group
Gemma Hart, +1-212-333-3810
XPO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2015 2014 2015 2014
------------- ------------ ------------- -----------
Revenue $ 1,215.9 $ 581.0 $ 1,918.9 $ 863.4
Operating expenses
Cost of transportation
and services 707.3 459.1 1,148.0 683.1
Direct operating expense 318.3 27.2 469.5 31.2
Sales, general and
administrative expense 220.4 106.6 336.0 182.4
------------- ------------ ------------- -----------
Total operating expenses 1,246.0 592.9 1,953.5 896.7
------------- ------------ ------------- -----------
Operating loss (30.1) (11.9) (34.6) (33.3)
------------- ------------ ------------- -----------
Other expense 21.9 0.3 22.4 0.4
Interest expense 36.3 3.4 59.4 13.5
------------- ------------ ------------- -----------
Loss before income tax
benefit (88.3) (15.6) (116.4) (47.2)
Income tax benefit (9.5) (1.8) (23.2) (5.1)
------------- ------------ ------------- -----------
Net loss (78.8) (13.8) (93.2) (42.1)
Cumulative preferred
dividends (0.7) (0.7) (1.5) (1.5)
Net loss attributable to
noncontrolling interests
and
redeemable
noncontrolling interests 4.4 - 4.4 -
------------- ------------ ------------- -----------
Net loss available to
common shareholders $ (75.1) $ (14.5) $ (90.3) $ (43.6)
------------- ------------ ------------- -----------
Basic loss per share
Net loss $ (0.89) $ (0.28) $ (1.11) $ (0.92)
Diluted loss per share
Net loss $ (0.89) $ (0.28) $ (1.11) $ (0.92)
Weighted average common
shares outstanding
Basic weighted average
common shares outstanding 84.3 52.6 81.6 47.0
Diluted weighted average
common shares outstanding 84.3 52.6 81.6 47.0
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(In millions, except share and per share data)
June 30, December 31,
2015 2014
-------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 1,175.8 $ 644.1
Restricted cash, current 690.5 -
Accounts receivable, net of allowances of $10.1
and $9.8, respectively 1,673.2 543.8
Prepaid expenses 109.1 13.2
Deferred tax asset, current 22.3 9.2
Income tax receivable 29.0 15.4
Other current assets 194.4 7.4
-------------- -------------
Total current assets 3,894.3 1,233.1
-------------- -------------
Property and equipment, net of $88.1 and $47.3 in
accumulated depreciation,
respectively 958.5 221.9
Goodwill 3,391.8 929.3
Identifiable intangible assets, net of $113.4
and $74.6 in accumulated amortization,
respectively 1,230.4 341.5
Deferred tax asset, long-term 94.7 -
Restricted cash, long-term 11.3 9.1
Other long-term assets 121.7 26.3
-------------- -------------
Total long-term assets 5,808.4 1,528.1
-------------- -------------
Total assets $ 9,702.7 $ 2,761.2
-------------- -------------
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS
AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,030.0 $ 252.7
Accrued salaries and wages 304.8 50.1
Accrued expenses, other 325.4 69.8
Current maturities of long-term debt 365.2 1.8
Other current liabilities 104.0 6.7
-------------- -------------
Total current liabilities 2,129.4 381.1
-------------- -------------
Senior notes 3,074.2 500.0
Convertible senior notes 64.1 91.9
Revolving credit facility and other long-term
debt, net of current maturities 267.4 0.2
Deferred tax liability, long-term 388.6 74.5
Employee benefit obligations 127.5 -
Other long-term liabilities 159.9 58.4
-------------- -------------
Total long-term liabilities 4,081.7 725.0
-------------- -------------
Commitments and contingencies
Redeemable noncontrolling interests 665.1 -
Stockholders' equity:
Series A convertible perpetual preferred stock,
$.001 par value; 10,000,000 shares;
73,035 and 73,335 shares issued and outstanding
at June 30, 2015 and December 31,
2014, respectively 42.1 42.2
Series C convertible perpetual preferred stock,
$.001 par value; 562,525 shares;
562,525 and 0 shares issued and outstanding at
June 30, 2015 and December 31,
2014, respectively 548.5 -
Common stock, $.001 par value; 150,000,000
shares authorized; 95,332,765
and 77,421,683 shares issued and outstanding at
June 30, 2015 and
December 31, 2014, respectively 0.1 0.1
Additional paid-in capital 2,551.8 1,831.9
Accumulated deficit (309.5) (219.1)
Accumulated other comprehensive loss (14.8) -
Noncontrolling interests 8.3 -
-------------- -------------
Total stockholders' equity 2,826.5 1,655.1
-------------- -------------
Total liabilities, redeemable noncontrolling
interests and stockholders' equity $ 9,702.7 $ 2,761.2
-------------- -------------
XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
Six Months Ended June 30,
--------------------------
2015 2014
------------- ------------
Operating activities
Net loss $ (93.2) $ (42.1)
Adjustments to reconcile net loss to net cash from
operating activities
Provisions for allowance for doubtful accounts 2.5 3.2
Depreciation and amortization 89.9 36.5
Stock compensation expense 16.9 3.8
Accretion of debt 3.0 2.7
Deferred tax expense (31.2) (7.1)
Loss on conversion of debt 6.9 2.3
Gain on sale of assets (6.0) -
Loss on foreign currency transactions 11.1 0.1
Other 5.3 (0.1)
Changes in assets and liabilities, net of effects of
acquisitions:
Accounts receivable (10.7) (57.3)
Income tax receivable 17.1 2.4
Prepaid expense and other current assets (11.9) (3.6)
Other long-term assets (1.0) (7.1)
Accounts payable (22.8) 37.8
Accrued expenses and other liabilities 0.9 1.8
------------- ------------
Cash flows provided (used) by operating activities (23.2) (26.7)
------------- ------------
Investing activities
Acquisition of businesses, net of cash acquired (1,610.7) (201.0)
Loss on forward contract related to acquisition (6.9) -
Payment for purchases of property and equipment (41.9) (9.8)
Proceeds from sale of assets 24.3 0.3
------------- ------------
Cash flows used by investing activities (1,635.2) (210.5)
------------- ------------
Financing activities
Proceeds from common stock offerings 697.5 414.0
Proceeds from preferred stock offerings 562.5 -
Payment for equity issuance costs (31.9) (0.8)
Proceeds from issuance of senior notes 2,544.0 -
Payment for debt issuance costs (7.9) -
Repayment of borrowings on revolving credit
facility - (75.0)
Repayment of acquired debt (712.6) -
Proceeds from asset financing debt 11.2 -
Payments of asset financing debt (28.0) -
Payment for cash held as collateral in lending
arrangement - (8.5)
Receipt of cash held as collateral in lending
arrangement 4.8 -
Payments of notes payable and capital leases (18.6) -
Bank overdrafts (19.3) -
Transfer to restricted cash for tender offer (809.3) -
Dividends paid to preferred stockholders (1.5) (1.5)
Other (1.2) (0.9)
------------- ------------
Cash flows provided by financing activities 2,189.7 327.3
------------- ------------
Effect of exchange rates on cash 0.4 -
Net increase in cash 531.7 90.1
Cash and cash equivalents, beginning of period 644.1 21.5
------------- ------------
Cash and cash equivalents, end of period $ 1,175.8 $ 111.6
------------- ------------
Supplemental disclosure of cash flow information:
Cash paid for interest $ 48.9 $ 4.7
Cash received from income taxes $ (12.1) $ (0.3)
Equity portion of acquisition purchase price $ 1.5 $ 108.2
Equity issued upon conversion of debt $ 33.5 $ 10.5
Transportation
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------------- ----------------------------------------
$ Change $ Change
2015 2014 Variance % 2015 2014 Variance %
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Revenue $ 861.2 $ 581.0 $ 280.2 48.2% $ 1,423.5 $ 863.4 $ 560.1 64.9%
Cost of
transportation
and services 667.4 459.1 208.3 45.4% 1,108.2 683.1 425.1 62.2%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Net revenue 193.8 121.9 71.9 59.0% 315.3 180.3 135.0 74.9%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Direct
operating
expense 57.9 27.2 30.7 112.9% 88.2 31.2 57.0 182.7%
SG&A expense
Salaries &
benefits 66.5 44.8 21.7 48.4% 114.9 76.1 38.8 51.0%
Other SG&A
expense 16.3 17.2 (0.9) -5.2% 30.5 26.9 3.6 13.4%
Purchased
services 7.5 5.5 2.0 36.4% 13.3 8.1 5.2 64.2%
Depreciation
& amortization 22.6 24.0 (1.4) -5.8% 41.7 34.7 7.0 20.2%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Total SG&A
expense 112.9 91.5 21.4 23.4% 200.4 145.8 54.6 37.4%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Operating
income $ 23.0 $ 3.2 $ 19.8 618.8% $ 26.7 $ 3.3 $ 23.4 709.1%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Accelerated
amortization
of trade names 0.3 - 0.3 100.0% 0.4 - 0.4 100.0%
Other
depreciation &
amortization 28.8 24.7 4.1 16.6% 48.4 35.4 13.0 36.7%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
EBITDA $ 52.1 $ 27.9 $ 24.2 86.7% $ 75.5 $ 38.7 $ 36.8 95.1%
--------- ---------- ---------- -------- ----------- --------- ---------- -------
Transportation
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended Six Months Ended June
June 30, 30,
----------------------- ------------------------
2015 2014 2015 2014
----------- ----------- ------------- ----------
Revenue by Service Offering
North America
Brokerage and Intermodal $ 423.5 $ 388.4 $ 773.2 $ 533.0
Last Mile 169.8 105.9 303.8 193.0
Expedite 41.8 36.2 79.3 69.8
Europe
Full Truckload 117.6 - 117.6 -
Less than Truckload 54.0 - 54.0 -
Global Forwarding 58.0 53.8 101.4 73.3
Eliminations (3.5) (3.3) (5.8) (5.7)
----------- ----------- ------------- ----------
Total Revenue by Service
Offering $ 861.2 $ 581.0 $ 1,423.5 $ 863.4
----------- ----------- ------------- ----------
Net Revenue by Service
Offering
North America
Brokerage and Intermodal $ 80.2 $ 74.0 $ 145.1 $ 94.0
Last Mile 51.5 31.1 90.4 55.5
Expedite 13.5 11.2 26.2 22.5
Europe 40.0 - 40.0 -
Global Forwarding 8.6 5.6 13.6 8.3
----------- ----------- ------------- ----------
Total Net Revenue by Service
Offering $ 193.8 $ 121.9 $ 315.3 $ 180.3
----------- ----------- ------------- ----------
Net Revenue % by Service
Offering
North America
Brokerage and Intermodal 18.9% 19.1% 18.8% 17.6%
Last Mile 30.3% 29.4% 29.8% 28.8%
Expedite 32.3% 30.9% 33.0% 32.2%
Europe 23.3% 0.0% 23.3% 0.0%
Global Forwarding 14.8% 10.4% 13.4% 11.3%
----------- ----------- ------------- ----------
Overall Net Revenue % by
Service Offering 22.5% 21.0% 22.1% 20.9%
----------- ----------- ------------- ----------
Direct Operating Expense by Service
Offering
North America
Brokerage and Intermodal $ 24.4 $ 22.9 $ 46.6 $ 23.0
Last Mile 9.7 4.3 17.8 8.2
Europe 22.3 - 22.3 -
Global Forwarding 1.5 - 1.5 -
----------- ----------- ------------- ----------
Total Direct Operating Expense
by Service Offering $ 57.9 $ 27.2 $ 88.2 $ 31.2
----------- ----------- ------------- ----------
Logistics
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------ -----------------------------------
$ Change $ Change
2015 2014 Variance % 2015 2014 Variance %
--------- ------ ---------- -------- --------- ------ ---------- -------
Revenue $ 359.6 $ - $ 359.6 100.0% $ 500.4 $ - $ 500.4 100.0%
Cost of
transportation
and services 45.6 - 45.6 100.0% 45.6 - 45.6 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Net revenue 314.0 - 314.0 100.0% 454.8 - 454.8 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Direct
operating
expense 260.3 - 260.3 100.0% 381.3 - 381.3 100.0%
SG&A expense
Salaries &
benefits 24.9 - 24.9 100.0% 30.0 - 30.0 100.0%
Other SG&A
expense 6.2 - 6.2 100.0% 7.9 - 7.9 100.0%
Purchased
services 3.5 - 3.5 100.0% 4.1 - 4.1 100.0%
Depreciation
& amortization 14.8 - 14.8 100.0% 20.8 - 20.8 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Total SG&A
expense 49.4 - 49.4 100.0% 62.8 - 62.8 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Operating
income $ 4.3 $ - $ 4.3 100.0% $ 10.7 $ - $ 10.7 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Accelerated
amortization
of trade names 1.6 - 1.6 100.0% 2.0 - 2.0 100.0%
Other
depreciation &
amortization 25.0 - 25.0 100.0% 38.3 - 38.3 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
EBITDA $ 30.9 $ - $ 30.9 100.0% $ 51.0 $ - $ 51.0 100.0%
--------- ------ ---------- -------- --------- ------ ---------- -------
Logistics
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
2015 2014 2015 2014
----------- --------- ------------ -------
Revenue by Service Offering
North America $ 182.2 $ - $ 323.0 $ -
Europe 177.4 - 177.4 -
----------- --------- ------------ -------
Total Revenue by Service Offering $ 359.6 $ - $ 500.4 $ -
----------- --------- ------------ -------
Net Revenue by Service Offering
North America $ 181.0 $ - $ 321.8 $ -
Europe 133.0 - 133.0 -
----------- --------- ------------ -------
Total Net Revenue by Service
Offering $ 314.0 $ - $ 454.8 $ -
----------- --------- ------------ -------
Net Revenue % by Service Offering
North America 99.3% 0.0% 99.6% 0.0%
Europe 75.0% 0.0% 75.0% 0.0%
----------- --------- ------------ -------
Overall Net Revenue % by Service
Offering 87.3% 0.0% 90.9% 0.0%
----------- --------- ------------ -------
Direct Operating Expense by Service
Offering
North America $ 153.6 $ - $ 274.6 $ -
Europe 106.7 - 106.7 -
----------- --------- ------------ -------
Total Direct Operating Expense by
Service Offering $ 260.3 $ - $ 381.3 $ -
----------- --------- ------------ -------
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------- ------------------------------------
$ Change $ Change
2015 2014 Variance % 2015 2014 Variance %
-------- -------- ---------- -------- -------- -------- ---------- -------
SG&A expense
Salaries &
benefits $ 17.0 $ 7.0 $ 10.0 142.9% $ 24.4 $ 16.8 $ 7.6 45.2%
Other SG&A
expense 8.5 1.8 6.7 372.2% 10.7 5.4 5.3 98.1%
Purchased
services 31.5 5.7 25.8 452.6% 36.1 13.3 22.8 171.4%
Depreciation
&
amortization 0.4 0.6 (0.2) -33.3% 0.8 1.1 (0.3) -27.3%
-------- -------- ---------- -------- -------- -------- ---------- -------
Total SG&A
expense $ 57.4 $ 15.1 $ 42.3 280.1% $ 72.0 $ 36.6 $ 35.4 96.7%
-------- -------- ---------- -------- -------- -------- ---------- -------
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of Net Loss to EBITDA
(Unaudited)
(In millions)
Category Three Months Ended June 30, Six Months Ended June 30,
------------------------------- ------------------------------
Change Change
2015 2014 % 2015 2014 %
---------- ---------- --------- ---------- ---------- --------
Net loss Net loss
available to available to
common common
shareholders shareholders $ (75.1) $ (14.5) 417.9% $ (90.3) $ (43.6) 107.1%
Cumulative
Preferred preferred
dividends dividends (0.7) (0.7) 0.0% (1.5) (1.5) 0.0%
---------- ---------- --------- ---------- ---------- --------
Net loss Net loss (74.4) (13.8) 439.1% (88.8) (42.1) 110.9%
---------- ---------- --------- ---------- ---------- --------
Debt
commitment Interest
fees expense 8.6 0.1 8500.0% 8.6 4.6 87.0%
Loss on
conversion of
convertible Interest
senior notes expense 0.4 - 100.0% 6.9 2.3 200.0%
Other interest Interest
expense expense 27.3 3.3 727.3% 43.9 6.6 565.2%
Income tax Income tax
benefit benefit (9.5) (1.8) 427.8% (23.2) (5.1) 354.9%
Sales, general
Accelerated and
amortization administrative
of trade names expense 1.9 3.3 -42.4% 2.4 3.3 -27.3%
Other Cost of
depreciation transportation
expense and services 5.2 - 100.0% 5.3 - 100.0%
Other Direct
depreciation operating
expense expense 13.1 0.8 1537.5% 21.3 0.8 2562.5%
Other Sales, general
depreciation & and
amortization administrative
expense expense 35.9 21.2 69.3% 60.9 32.4 88.0%
---------- ---------- --------- ---------- ---------- --------
EBITDA $ 8.5 $ 13.1 -35.1% $ 37.3 $ 2.8 1232.1%
---------- ---------- --------- ---------- ---------- --------
Net loss
attributable
to
noncontrolling
interests and
redeemable
Noncontrolling noncontrolling
interests interests (4.4) - 100.0% (4.4) - 100.0%
Transaction &
integration
costs Other expense 27.6 - 100.0% 27.8 - 100.0%
Sales, general
Transaction & and
integration administrative
costs expense 51.2 0.7 7214.3% 51.8 11.7 342.7%
Gain on sale
of intermodal
equipment Other expense (5.7) - 100.0% (5.7) - 100.0%
Sales, general
and
Rebranding administrative
costs expense 2.5 0.3 733.3% 2.5 0.3 733.3%
---------- ---------- --------- ---------- ---------- --------
Adjusted
EBITDA $ 79.7 $ 14.1 465.2% $ 109.3 $ 14.8 638.5%
---------- ---------- --------- ---------- ---------- --------
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release. Adjusted EBITDA was prepared assuming 100% ownership of Norbert
Dentressangle.
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
(Unaudited)
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- -------------------------
2015 2014 2015 2014
------------- ------------- ------------ ------------
GAAP net loss available
to common shareholders $ (75.1) $ (14.5) $ (90.3) $ (43.6)
Transaction &
integration costs 78.8 0.7 79.6 11.7
Debt commitment
fees((1)) 8.6 0.1 8.6 4.6
Loss on conversion of
convertible senior
notes((1)) 0.4 - 6.9 2.3
Accelerated
amortization of trade
names 1.9 3.3 2.4 3.3
Gain on sale of
intermodal equipment (5.7) - (5.7) -
Rebranding costs 2.5 0.3 2.5 0.3
Impact of
noncontrolling interests
on above adjustments (6.6) - (6.6) -
Tax impact of above
adjustments (18.4) (1.5) (20.1) (3.9)
------------- ------------- ------------ ------------
Adjusted net loss
available to common
shareholders $ (13.6) $ (11.6) $ (22.7) $ (25.3)
------------- ------------- ------------ ------------
Adjusted basic loss per
share
Adjusted net loss $ (0.16) $ (0.22) $ (0.28) $ (0.54)
Adjusted diluted loss per
share
Adjusted net loss $ (0.16) $ (0.22) $ (0.28) $ (0.54)
Weighted average common
shares outstanding
Basic weighted average
common shares outstanding 84.3 52.6 81.6 47.0
Diluted weighted
average common shares
outstanding 84.3 52.6 81.6 47.0
((1))Debt commitment fees and loss on conversion of convertible senior notes 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
(Unaudited)
Three Months Ended June
30, Six Months Ended June 30,
--------------------------- --------------------------
2015 2014 2015 2014
------------- ------------- ------------- ------------
Basic weighted-average
common
shares outstanding 84,335,406 52,564,636 81,595,744 46,969,847
------------- ------------- ------------- ------------
Potentially Dilutive
Securities:
Shares underlying the
conversion
of preferred stock to
common stock 10,451,861 10,476,430 10,464,078 10,489,784
Shares underlying the
conversion
of the convertible
senior notes 4,384,077 7,341,524 4,775,541 7,540,478
Shares underlying
warrants to
purchase common stock 8,902,930 7,765,457 8,816,428 7,886,891
Shares underlying stock
options
to purchase common
stock 650,244 497,716 642,925 513,254
Shares underlying
restricted stock units
and performance-based
restricted stock units 1,177,131 714,896 1,103,458 657,583
------------- ------------- ------------- ------------
25,566,243 26,796,023 25,802,430 27,087,990
------------- ------------- ------------- ------------
Diluted weighted-average
common
shares outstanding 109,901,649 79,360,659 107,398,174 74,057,837
------------- ------------- ------------- ------------
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. 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, stock
options, RSUs and PRSUs with an average closing market price of common stock of
$46.89 per share and $26.41 per share for the three-months ended June 30, 2015
and 2014, respectively, and $44.43 per share and $27.61 per share for the six
months ended June 30, 2015 and 2014, respectively.
For informational purposes, the following table represents fully diluted shares
as of June 30, 2015, calculated on a non-weighted basis without giving effect to
the portion of any period in which the diluted shares were outstanding. The
Series C Convertible Perpetual Preferred Stock conversion into common stock has
been included for informational purposes although conversion is contingent upon
obtaining shareholder approval. The treasury method was used to determine the
shares underlying the warrants, stock options, RSUs and PRSUs with a closing
market price of common stock of $45.18 per share as of June 30, 2015. 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 June 30, 2015
-----------------------------------
Common stock outstanding 95,332,765
Series A preferred stock 10,440,715
Series C preferred stock 12,500,546
Convertible senior notes 4,384,017
Warrants 8,904,160
Outstanding stock options 671,810
Restricted stock units and performance-
based restricted stock units 2,011,264
-----------------------------------
Total 134,245,278
-----------------------------------
XPO 2Q15 Press Release FINAL:
http://hugin.info/155059/R/1943946/704129.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#1943946]
Unternehmensinformation / Kurzprofil:
Datum: 05.08.2015 - 22:20 Uhr
Sprache: Deutsch
News-ID 411866
Anzahl Zeichen: 63981
contact information:
Town:
Greenwich
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"XPO Logistics Announces Second Quarter 2015 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
XPO Logistics, Inc. (Nachricht senden)
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