XPO Logistics Announces Second Quarter 2016 Results
(Thomson Reuters ONE) -
Reports record levels of net income, EBITDA, cash flow from operations and free
cash flow
Raises 2016 financial targets
GREENWICH, Conn. - August 3, 2016 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the second quarter of 2016. Total gross revenue
increased 202.9% year-over-year to $3.7 billion. Net income attributable to
common shareholders was $42.6 million for the quarter, or earnings of $0.35 per
diluted share, compared with a net loss attributable to common shareholders of
$75.1 million, or a loss of $0.89 per diluted share, for the same period in
2015.
The adjusted net income attributable to common shareholders, a non-GAAP measure,
was $50.4 million, or earnings of $0.42 per diluted share for the second quarter
of 2016, excluding the items detailed below. This compares with an adjusted net
loss attributable to common shareholders of $13.6 million, or a loss of $0.16
per diluted share, for the second quarter of 2015.
The adjusted net income attributable to common shareholders for the second
quarter of 2016 excludes: $21.5 million, or $13.9 million after-tax, of one-time
transaction-related and rebranding costs net of noncontrolling interests; and a
$6.1 million, or $4.1 million after-tax, benefit related to unrealized foreign
exchange cost. Reconciliations of adjusted net income attributable to common
shareholders and adjusted EPS, as well as reconciliations of other non-GAAP
measures used throughout this release, are provided in the attached financial
tables.
Adjusted earnings before interest, taxes, depreciation and amortization
("adjusted EBITDA"), a non-GAAP financial measure, improved to $354.9 million
for the quarter, compared with $79.7 million for the same period in 2015.
Adjusted EBITDA in the second quarter of 2016 excludes $21.5 million of one-time
transaction-related and rebranding costs.
The company generated $260.7 million of cash flow from operations and $169.5
million of free cash flow in the quarter.
Raises 2016 Financial Targets
For 2016, the company has:
* Increased its target for adjusted EBITDA to at least $1.265 billion, from
$1.25 billion; and
* Increased its target for free cash flow to at least $150 million, from a
range of $100 million to $150 million.
In addition, the company has reaffirmed its full year 2018 target of
approximately $1.7 billion of EBITDA.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, "In
the second quarter, we generated $355 million of adjusted EBITDA, $261 million
of cash flow from operations, and $170 million of free cash flow - all records
for our company. We're at an inflection point in the evolution of our business,
accelerating our EBITDA and cash generation while continuing to invest in
technology, our sales force and other levers of future growth.
"Our strong performance in the quarter was led by our North American operations
for last mile and less-than-truckload, and by our European supply chain
operations. While market conditions were sluggish overall, e-commerce was a
major tailwind - driving margin expansion in last mile, and resulting in major
contract wins in contract logistics on both sides of the Atlantic. In LTL, we
increased operating income by 66% from last year's second quarter, pre-
acquisition."
Jacobs continued, "We've raised our 2016 target for adjusted EBITDA to at least
$1.265 billion, up from $1.25 billion. We also raised our free cash flow target
to at least $150 million, up from a range of $100 million to $150 million. From
here, we have a well-defined path to our target of $1.7 billion of EBITDA for
2018. More than $300 million of our profit improvement opportunities are
company-specific and independent of macro conditions, including the global
optimization of our network and the rationalization of $14 billion of
addressable spend."
Second Quarter 2016 Results by Segment
* Transportation: The company's transportation segment generated total gross
revenue of $2.4 billion for the quarter, a 180.9% increase from the same
period in 2015. The year-over-year increase in revenue was primarily due to
2015 acquisitions, with contributions from growth in last mile and truck
brokerage.
Net revenue margin for the second quarter improved to 29.1%, compared with
22.5% in 2015. The increase in margin was primarily due to the acquisition of
the less-than-truckload business in October 2015, as well as margin improvements
in last mile and global forwarding, partially offset by lower intermodal and
expedite margins.
Second quarter operating income for the transportation segment increased to
$153.2 million, compared with operating income of $23.0 million a year ago.
Second quarter adjusted EBITDA improved to $275.7 million, compared with $59.3
million a year ago. The increases in operating income and adjusted EBITDA were
primarily due to 2015 acquisitions.
In the North American LTL business, the company improved operating income to
$115.5 million, a 66% increase from the same period a year ago, pre-acquisition.
On an adjusted basis, LTL operating income increased 81%, excluding transaction-
related costs and amortization related to the acquisition. The increase in LTL
operating income was primarily driven by yield improvement and SG&A cost
reductions.
* Logistics: The company's logistics segment generated gross revenue of $1.3
billion for the quarter, up 270.4% from $359.6 million for the same period
in 2015. Operating income was $51.1 million, up from $4.3 million a year
ago. Adjusted EBITDA was $106.9 million, up from $35.8 million a year ago.
The increases in gross revenue, gross margin, operating income and adjusted
EBITDA were primarily due to 2015 acquisitions.
Adjusted EBITDA for the logistics segment was higher than expected in the
quarter, led by volume increases from e-commerce and high tech and the strong
performance of the European business overall.
* Corporate: Corporate SG&A expense was $34.0 million, compared with $57.4
million for the second quarter of 2015. The year-over-year decrease in
corporate expense was primarily due to lower one-time transaction-related
costs in the second quarter of 2016 than in the comparable 2015 period. The
second quarter 2016 corporate expense included approximately $4.8 million of
non-cash compensation; and $4.3 million of transaction-related costs.
Six Months 2016 Financial Results
For the six months ended June 30, 2016, the company reported total revenue of
$7.2 billion, a 276.7% increase from the same period in 2015.
The company reported net income attributable to common shareholders of $22.0
million, or $0.19 per diluted share, for the first six months of 2016, compared
with a net loss of $90.3 million, or a loss of $1.11 per diluted share, for the
same period in 2015.
The adjusted net income attributable to common shareholders, a non-GAAP measure,
was $42.1 million, or $0.35 per diluted share for the first six months,
excluding the items detailed below. This compares with an adjusted net loss
attributable to common shareholders of $22.7 million, or a loss of $0.28 per
diluted share, for the same period in 2015.
Adjusted net income for the first six months of 2016 excludes $48.5 million, or
$30.7 million after-tax, of one-time transaction, integration and rebranding
costs net of noncontrolling interests; a $5.8 million, or $3.6 million after-
tax, benefit to depreciation and amortization related to the updated purchase
price allocation of acquired assets; and a $4.1 million, or $3.5 million after-
tax, benefit related to unrealized foreign exchange positions.
Adjusted EBITDA for the first six months of 2016, a non-GAAP measure, improved
to $604.2 million, compared with $109.3 million for the same period in 2015.
Adjusted EBITDA for the first six months of 2016 excludes $48.5 million of one-
time transaction, integration and rebranding costs.
Launches Next Generation Website
The company announced the next generation of its website at www.xpo.com and its
new tagline Results Matter(SM). The site's enhanced functionality connects
customers with transportation and logistics experts and provides more
information about ways in which XPO helps customers manage their goods more
efficiently throughout their supply chains.
Conference Call
The company will hold a conference call on Thursday, August 4, 2016, at 8:30
a.m. Eastern Time. Participants can call toll-free (from U.S./Canada)
1-877-269-7756; international callers dial +1-201-689-7817. 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
4, 2016. To access the replay by phone, call toll-free (from U.S./Canada)
1-877-660-6853; international callers dial +1-201-612-7415. Use participant
passcode 13640360.
About XPO Logistics
XPO Logistics, Inc. (NYSE: XPO) is a top ten global logistics provider of
cutting-edge supply chain solutions to the most successful companies in the
world. The company operates as a highly integrated network of people, technology
and physical assets in 34 countries, with over 88,000 employees and 1,440
locations. XPO uses its network to help more than 50,000 customers manage their
goods more efficiently throughout their supply chains. The company has two
reporting segments: transportation and logistics, and within these segments, its
business is well diversified by geographies, verticals and types of service.
XPO's corporate headquarters is in Greenwich, Conn., USA, and its European
headquarters is in Lyon, France. www.xpo.com
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined under
rules of the Securities and Exchange Commission ("SEC"), including adjusted net
income (loss) attributable to common shareholders for the three- and six-month
periods ended June 30, 2016; adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") for the three- and six-month periods
ended June 30, 2016 and 2015, on a consolidated basis and for the company's
transportation and logistics segments; free cash flow for the three-month period
ended June 30, 2016; and adjusted operating income for the North American LTL
business for the three-month periods ended June 30, 2016 and 2015. As required
by SEC rules, we provide reconciliations of these historical measures to the
most directly comparable measure under United States generally accepted
accounting principles ("GAAP"), which are set forth in the financial tables
attached to this document. With respect to our 2016 financial targets of
adjusted EBITDA and free cash flow, and our 2018 financial target of EBITDA,
each of which is a non-GAAP measure, a reconciliation of the non-GAAP measure to
the corresponding GAAP measure is not available without unreasonable effort due
to the variability and complexity of the non-cash and other items described
below that we exclude from the non-GAAP target measure. The variability of these
items may have a significant impact on our future GAAP financial results. We
believe that free cash flow is an important measure of our ability to repay
maturing debt or fund other uses of capital that we believe will enhance
stockholder value. 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) tax consequences, and the nonrecurring items noted in the
reconciliation. We believe that adjusted operating income (loss) improves
comparability from period to period by removing the impact of nonrecurring
expense items such as one-time transaction-related costs. 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. Free cash flow, 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 our 2016 and 2018
financial targets, our expected ability to generate organic revenue growth and
profit improvement opportunities, including through cost rationalization, global
procurement and the cross-fertilization of best practices. 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 and pricing pressures; our
ability to align our investments in capital assets, including equipment, service
centers and warehouses, to our customers' demands; our ability to successfully
manage our growth, including by maintaining effective internal controls; our
ability to successfully integrate and realize anticipated synergies, cost
savings and profit improvement opportunities with respect to acquired companies;
our ability to retain our and our acquired businesses' largest customers; our
ability to develop and implement suitable information technology systems; our
substantial indebtedness; our ability to raise debt and equity capital; our
ability to attract and retain key employees to execute our strategy, including
retention of acquired companies' key employees; our ability to maintain positive
relationships with our network of third-party transportation providers; our
ability to attract and retain qualified drivers; litigation, including
litigation related to alleged misclassification of independent contractors;
labor matters; risks associated with our self-insured claims; risks associated
with defined benefit plans for our current and former employees; fluctuations in
currency exchange rates; fluctuations in fixed and floating interest rates; our
ability to execute our growth strategy through acquisitions; fuel price and fuel
surcharge changes; weather and other service disruptions; governmental
regulation; and governmental or political actions, including the United
Kingdom's likely exit from the European Union. 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 press release 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
Darren McDermott, +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,
--------------------------- --------------------------
2016 2015 2016 2015
------------- ------------- ------------- ------------
Revenue $ 3,683.3 $ 1,215.9 $ 7,229.0 $ 1,918.9
Operating expenses
Cost of transportation
and services 1,973.3 707.3 3,918.4 1,148.0
Direct operating
expense 1,130.2 318.3 2,236.4 469.5
Sales, general and
administrative expense 409.5 220.4 841.5 336.0
------------- ------------- ------------- ------------
Total operating
expenses 3,513.0 1,246.0 6,996.3 1,953.5
------------- ------------- ------------- ------------
Operating income (loss) 170.3 (30.1) 232.7 (34.6)
------------- ------------- ------------- ------------
Other (income) expense (7.9) 2.1 (6.7) 2.4
Foreign currency loss 0.1 19.8 3.2 20.0
Interest expense 94.7 36.3 187.8 59.4
------------- ------------- ------------- ------------
Income (loss) before
income tax provision
(benefit) 83.4 (88.3) 48.4 (116.4)
Income tax provision
(benefit) 33.0 (9.5) 17.3 (23.2)
------------- ------------- ------------- ------------
Net income (loss) 50.4 (78.8) 31.1 (93.2)
Net (income) loss
attributable to
noncontrolling interests (3.8) 4.4 (7.0) 4.4
------------- ------------- ------------- ------------
Net income (loss)
attributable to XPO $ 46.6 $ (74.4) $ 24.1 $ (88.8)
------------- ------------- ------------- ------------
Net income (loss)
attributable to common
shareholders * $ 42.6 $ (75.1) $ 22.0 $ (90.3)
Basic earnings (loss)
per share $ 0.39 $ (0.89) $ 0.20 $ (1.11)
Diluted earnings (loss)
per share $ 0.35 $ (0.89) $ 0.19 $ (1.11)
Weighted-average common
shares outstanding
Basic weighted-average
common shares
outstanding 110.0 84.3 109.8 81.6
Diluted weighted-
average common shares
outstanding 122.3 84.3 118.9 81.6
* Includes $3.3 million and $0.6 million non-cash allocation of undistributed
earnings for the three and six months ended June 30, 2016, respectively.
Includes $0.7 million and $1.5 million preferred dividends for the three and six
months ended June 30, 2016 and 2015, respectively.
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(In millions, except share and per share data)
June 30, December 31,
2016 2015
-------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 377.8 $ 289.8
Accounts receivable, net of allowances of $21.3
and $16.9, respectively 2,266.4 2,266.4
Other current assets 461.8 401.0
-------------- -------------
Total current assets 3,106.0 2,957.2
-------------- -------------
Property and equipment, net of $464.1 and $209.3
in accumulated depreciation, respectively 2,754.5 2,852.2
Goodwill 4,732.0 4,610.6
Identifiable intangible assets, net of $310.6
and $224.5 in accumulated amortization,
respectively 1,637.5 1,876.5
Deferred tax asset 2.6 113.6
Other long-term assets 197.7 233.1
-------------- -------------
Total long-term assets 9,324.3 9,686.0
-------------- -------------
Total assets $ 12,430.3 $ 12,643.2
-------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 986.1 $ 1,063.7
Accrued expenses 1,391.2 1,291.8
Current maturities of long-term debt 121.1 135.3
Other current liabilities 141.8 203.6
-------------- -------------
Total current liabilities 2,640.2 2,694.4
-------------- -------------
Long-term debt 5,342.7 5,272.6
Deferred tax liability 712.6 933.3
Employee benefit obligations 284.0 312.6
Other long-term liabilities 373.6 369.5
-------------- -------------
Total long-term liabilities 6,712.9 6,888.0
-------------- -------------
Stockholders' equity:
Convertible perpetual preferred stock, $.001 par
value; 10,000,000 shares authorized;
72,885 of Series A shares issued and outstanding
at June 30, 2016 and
December 31, 2015 42.0 42.0
Common stock, $.001 par value; 300,000,000
shares authorized; 110,146,754
and 109,523,493 shares issued and outstanding at
June 30, 2016 and
December 31, 2015, respectively 0.1 0.1
Additional paid-in capital 3,229.8 3,212.3
Accumulated deficit (443.0) (465.0)
Accumulated other comprehensive loss (100.5) (72.3)
-------------- -------------
Total stockholders' equity before noncontrolling
interest 2,728.4 2,717.1
-------------- -------------
Noncontrolling interests 348.8 343.7
-------------- -------------
Total equity 3,077.2 3,060.8
-------------- -------------
Total liabilities and equity $ 12,430.3 $ 12,643.2
-------------- -------------
XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
Six Months Ended June 30,
--------------------------
2016 2015
------------- ------------
Operating activities
Net income (loss) $ 31.1 $ (93.2)
Adjustments to reconcile net income (loss) to net
cash from operating activities
Depreciation and amortization 323.6 89.9
Deferred tax expense (benefit) 2.7 (29.4)
Stock compensation expense 20.5 16.9
Other 6.2 23.0
Changes in assets and liabilities, net of effects of
acquisitions:
Accounts receivable 5.5 (10.7)
Prepaid expense and other assets (52.8) 2.2
Accounts payable (78.4) (22.8)
Accrued expenses and other liabilities 9.2 0.9
------------- ------------
Cash flows provided (used) by operating activities 267.6 (23.2)
------------- ------------
Investing activities
Payment for purchases of property and equipment (224.0) (41.9)
Proceeds from sale of assets 35.6 24.3
Acquisition of businesses, net of cash acquired - (1,610.7)
Loss on forward contract related to acquisition - (6.9)
Other 8.3 -
------------- ------------
Cash flows used by investing activities (180.1) (1,635.2)
------------- ------------
Financing activities
Repayment of long-term debt and capital leases (90.0) (759.2)
Proceeds from borrowing on revolving credit
facility 260.0 -
Repayment of borrowing on revolving credit
facility (160.0) -
Bank overdrafts (10.9) (19.3)
Proceeds from preferred stock and common stock
offerings - 1,260.0
Payment for equity issuances costs - (31.9)
Proceeds from issuance of long-term debt - 2,555.2
Payment for debt issuance costs - (7.9)
Transfer of restricted cash for tender offer - (809.3)
Dividends paid to preferred stockholders (1.5) (1.5)
Other 2.2 3.6
------------- ------------
Cash flows (used) provided by financing activities (0.2) 2,189.7
------------- ------------
Effect of exchange rates on cash 0.7 0.4
Net increase in cash 88.0 531.7
Cash and cash equivalents, beginning of period 289.8 644.1
------------- ------------
Cash and cash equivalents, end of period $ 377.8 $ 1,175.8
------------- ------------
Transportation
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------- --------------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Revenue $ 2,418.9 $ 861.2 $ 1,557.7 180.9% $ 4,716.3 $ 1,423.5 $ 3,292.8 231.3%
Cost of
transportation
and services 1,715.9 667.4 1,048.5 157.1% 3,363.0 1,108.2 2,254.8 203.5%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Net revenue 703.0 193.8 509.2 262.7% 1,353.3 315.3 1,038.0 329.2%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Direct
operating
expense 297.8 57.9 239.9 414.3% 610.2 88.2 522.0 591.8%
SG&A expense
Salaries &
benefits 142.7 66.5 76.2 114.6% 290.0 114.9 175.1 152.4%
Other SG&A
expense 30.6 16.3 14.3 87.7% 67.6 30.5 37.1 121.6%
Purchased
services 37.1 7.5 29.6 394.7% 77.0 13.3 63.7 478.9%
Depreciation
& amortization 41.6 22.6 19.0 84.1% 79.9 41.7 38.2 91.6%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Total SG&A
expense 252.0 112.9 139.1 123.2% 514.5 200.4 314.1 156.7%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Operating
income $ 153.2 $ 23.0 $ 130.2 566.1% $ 228.6 $ 26.7 $ 201.9 756.2%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Accelerated
amortization
of trade names - 0.3 (0.3) -100.0% - 0.4 (0.4) -100.0%
Other
depreciation &
amortization 112.5 28.8 83.7 290.6% 227.1 48.4 178.7 369.2%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
EBITDA $ 265.7 $ 52.1 $ 213.6 410.0% $ 455.7 $ 75.5 $ 380.2 503.6%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Transaction &
integration
costs 7.5 6.9 0.6 8.7% 10.3 6.9 3.4 49.3%
Rebranding
costs 2.5 0.3 2.2 733.3% 5.9 0.3 5.6 1866.7%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
Adjusted
EBITDA* $ 275.7 $ 59.3 $ 216.4 364.9% $ 471.9 $ 82.7 $ 389.2 470.6%
----------- --------- ----------- --------- ----------- ----------- ----------- --------
* Adjusted EBITDA does not include gain on sale of assets, unrealized gain/loss
and other expense
Transportation
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended June
30, Six Months Ended June 30,
------------------------- --------------------------
2016 2015 2016 2015
------------- ----------- ------------- ------------
Revenue by Service
Offering
North America
Freight Brokerage $ 519.1 $ 465.3 $ 1,031.8 $ 852.5
Less-Than-Truckload 877.5 - 1,708.0 -
Last Mile 200.7 169.8 379.6 303.8
Full Truckload 133.4 - 262.2 -
Europe
Full Truckload 427.5 117.6 820.4 117.6
Less-Than-Truckload 220.2 54.0 422.6 54.0
Global Forwarding 79.2 58.0 162.0 101.4
Eliminations (38.7) (3.5) (70.3) (5.8)
------------- ----------- ------------- ------------
Total Revenue by Service
Offering $ 2,418.9 $ 861.2 $ 4,716.3 $ 1,423.5
------------- ----------- ------------- ------------
Net Revenue by Service
Offering
North America
Freight Brokerage $ 88.1 $ 93.7 $ 179.6 $ 171.3
Less-Than-Truckload 370.9 - 695.1 -
Last Mile 62.5 51.5 115.9 90.4
Full Truckload 16.0 - 43.7 -
Europe 151.1 40.0 290.1 40.0
Global Forwarding 14.4 8.6 28.9 13.6
------------- ----------- ------------- ------------
Total Net Revenue by
Service Offering $ 703.0 $ 193.8 $ 1,353.3 $ 315.3
------------- ----------- ------------- ------------
Net Revenue % by Service
Offering
North America
Freight Brokerage 17.0% 20.1% 17.4% 20.1%
Less-Than-Truckload 42.3% 0.0% 40.7% 0.0%
Last Mile 31.1% 30.3% 30.5% 29.8%
Full Truckload 12.0% 0.0% 16.7% 0.0%
Europe 23.3% 23.3% 23.3% 23.3%
Global Forwarding 18.2% 14.8% 17.8% 13.4%
------------- ----------- ------------- ------------
Overall Net Revenue % by
Service Offering 29.1% 22.5% 28.7% 22.1%
------------- ----------- ------------- ------------
Direct Operating Expense
by Service Offering
North America
Freight Brokerage $ 22.4 $ 24.4 $ 46.3 $ 46.6
Less-Than-Truckload 168.0 - 351.0 -
Last Mile 13.4 9.7 27.3 17.8
Europe 89.3 22.3 176.3 22.3
Global Forwarding 4.7 1.5 9.3 1.5
------------- ----------- ------------- ------------
Total Direct Operating
Expense by Service
Offering $ 297.8 $ 57.9 $ 610.2 $ 88.2
------------- ----------- ------------- ------------
Less-Than-Truckload revenue is before intercompany eliminations and includes
revenue from the Company's trailer manufacturing business.
XPO Logistics North American Less-Than-Truckload
Summary Data Table
(Unaudited)
Three Months Ended June
30,
-------------------------
2016 2015
------------ ------------
Number of Working Days 64.0 63.5
Lbs. per Day (Thousands) 73,448 79,344
% Change in Lbs. per Day** -7.4% -3.0%
Shipments per Day 55,166 58,689
% Change in Shipments per Day** -6.0% -1.7%
Avg. Weight per Shipment (in pounds) 1,331 1,352
% Change in Weight per Shipment** -1.5% -1.3%
Gross Revenue per Shipment $ 254.91 $ 252.32
Gross Revenue per CWT (including fuel surcharges) $ 19.15 $ 18.66
Gross Revenue per CWT (excluding fuel surcharges) $ 17.15 $ 16.25
% Change in Gross Revenue per CWT**
Including fuel surcharges 2.6% 0.4%
Excluding fuel surcharges 5.5% 5.5%
Average Length of Haul 805.0 787.2
Total Average Load Factor 22,521 22,074
Average Age of Tractor Fleet (Years) 5.71 5.44
**Compared with the same quarter of the previous year
XPO Logistics North American Less-Than-Truckload
Adjusted Operating Ratio
(Unaudited)
(In millions)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- --------------------------
2016 2015 2016 2015
----------- ----------- ------------- ------------
Revenue (excluding fuel
surcharge revenue) $ 772.5 $ 795.3 $ 1,510.5 $ 1,534.9
Fuel surcharge revenue 94.0 121.6 175.9 237.6
----------- ----------- ------------- ------------
Revenue 866.5 916.9 1,686.4 1,772.5
Salaries, wages and employee
benefits 412.0 433.5 823.8 848.6
Purchased transportation 111.3 132.2 221.1 262.5
Fuel and fuel-related taxes 47.2 63.5 89.7 126.0
Depreciation and
amortization 49.3 36.7 98.4 74.0
Other operating expenses 95.6 135.1 213.9 260.6
Maintenance 23.8 26.0 46.5 51.8
Rents and leases 10.2 13.4 20.8 26.2
Purchased labor 1.6 6.8 4.2 15.2
----------- ----------- ------------- ------------
Operating income 115.5 69.7 168.0 107.6
----------- ----------- ------------- ------------
Operating ratio 86.7% 92.4% 90.0% 93.9%
----------- ----------- ------------- ------------
Transaction, integration and
rebranding costs 1.5 - 3.3 -
Amortization expense 8.9 - 14.7 -
Depreciation adjustment from
updated purchase price
allocation of acquired
assets - - (1.8) -
----------- ----------- ------------- ------------
Adjusted operating income $ 125.9 $ 69.7 $ 184.2 $ 107.6
----------- ----------- ------------- ------------
Adjusted operating ratio 85.5% 92.4% 89.1% 93.9%
----------- ----------- ------------- ------------
Logistics
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------- ------------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Revenue $ 1,332.0 $ 359.6 $ 972.4 270.4% $ 2,592.7 $ 500.4 $ 2,092.3 418.1%
Cost of
transportation
and services 323.2 45.6 277.6 608.8% 633.4 45.6 587.8 1289.0%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Net revenue 1,008.8 314.0 694.8 221.3% 1,959.3 454.8 1,504.5 330.8%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Direct
operating
expense 832.8 260.3 572.5 219.9% 1,626.6 381.3 1,245.3 326.6%
SG&A expense
Salaries &
benefits 54.6 24.9 29.7 119.3% 123.8 30.0 93.8 312.7%
Other SG&A
expense 24.5 6.2 18.3 295.2% 36.7 7.9 28.8 364.6%
Purchased
services 23.5 3.5 20.0 571.4% 45.2 4.1 41.1 1002.4%
Depreciation
& amortization 22.3 14.8 7.5 50.7% 44.0 20.8 23.2 111.5%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Total SG&A
expense 124.9 49.4 75.5 152.8% 249.7 62.8 186.9 297.6%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Operating
income $ 51.1 $ 4.3 $ 46.8 1088.4% $ 83.0 $ 10.7 $ 72.3 675.7%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Accelerated
amortization
of trade names - 1.6 (1.6) -100.0% - 2.0 (2.0) -100.0%
Other
depreciation &
amortization 48.6 25.0 23.6 94.4% 95.7 38.3 57.4 149.9%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
EBITDA $ 99.7 $ 30.9 $ 68.8 222.7% $ 178.7 $ 51.0 $ 127.7 250.4%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Transaction &
integration
costs 7.0 4.8 2.2 45.8% 15.6 4.8 10.8 225.0%
Rebranding
costs 0.2 0.1 0.1 100.0% 0.4 0.1 0.3 300.0%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
Adjusted
EBITDA* $ 106.9 $ 35.8 $ 71.1 198.6% $ 194.7 $ 55.9 $ 138.8 248.3%
----------- ---------- ---------- --------- ----------- --------- ----------- --------
* Adjusted EBITDA does not include gain on sale of assets, unrealized gain/loss
and other expense
Logistics
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended June
30, Six Months Ended June 30,
------------------------- --------------------------
2016 2015 2016 2015
------------- ----------- -------------- -----------
Revenue by Service
Offering
North America $ 633.3 $ 182.2 $ 1,252.1 $ 323.0
Europe 698.7 177.4 1,340.6 177.4
------------- ----------- -------------- -----------
Total Revenue by Service
Offering $ 1,332.0 $ 359.6 $ 2,592.7 $ 500.4
------------- ----------- -------------- -----------
Net Revenue by Service
Offering
North America $ 484.6 $ 181.0 $ 954.9 $ 321.8
Europe 524.2 133.0 1,004.4 133.0
------------- ----------- -------------- -----------
Total Net Revenue by
Service Offering $ 1,008.8 $ 314.0 $ 1,959.3 $ 454.8
------------- ----------- -------------- -----------
Direct Operating Expense
by Service Offering
North America $ 406.0 $ 153.6 $ 806.0 $ 274.6
Europe 426.8 106.7 820.6 106.7
------------- ----------- -------------- -----------
Total Direct Operating
Expense by Service
Offering $ 832.8 $ 260.3 $ 1,626.6 $ 381.3
------------- ----------- -------------- -----------
Gross Margin by Service
Offering
North America $ 78.6 $ 27.4 $ 148.9 $ 47.2
Europe 97.4 26.3 183.8 26.3
------------- ----------- -------------- -----------
Total Gross Margin by
Service Offering $ 176.0 $ 53.7 $ 332.7 $ 73.5
------------- ----------- -------------- -----------
Gross Margin % by Service
Offering
North America 12.4% 15.0% 11.9% 14.6%
Europe 13.9% 14.8% 13.7% 14.8%
------------- ----------- -------------- -----------
Total Gross Margin % by
Service Offering 13.2% 14.9% 12.8% 14.7%
------------- ----------- -------------- -----------
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------- ------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
-------- -------- ---------- -------- -------- -------- ---------- -------
SG&A expense
Salaries &
benefits $ 15.9 $ 17.0 $ (1.1) -6.5% $ 32.0 $ 24.4 $ 7.6 31.1%
Other SG&A
expense 3.8 8.5 (4.7) -55.3% 13.7 10.7 3.0 28.0%
Purchased
services 13.9 31.5 (17.6) -55.9% 32.4 36.1 (3.7) -10.2%
Depreciation
&
amortization 0.4 0.4 - 0.0% 0.8 0.8 - 0.0%
-------- -------- ---------- -------- -------- -------- ---------- -------
Total SG&A
expense $ 34.0 $ 57.4 $ (23.4) -40.8% $ 78.9 $ 72.0 $ 6.9 9.6%
-------- -------- ---------- -------- -------- -------- ---------- -------
Intersegment Eliminations
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------ -----------------------------------------
$ $
2016 2015 Variance Change % 2016 2015 Variance Change %
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Revenue $ (67.6) $ (4.9) $ (62.7) 1279.6% $ (80.0) $ (5.0) $ (75.0) 1500.0%
Cost of
transportation
and services (65.8) (5.7) (60.1) 1054.4% (78.0) (5.8) (72.2) 1244.8%
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Net revenue (1.8) 0.8 (2.6) -325.0% (2.0) 0.8 (2.8) -350.0%
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Direct
operating
expense (0.4) 0.1 (0.5) -500.0% (0.4) - (0.4) 100.0%
SG&A expense
Salaries &
benefits (7.1) 0.4 (7.5) -1875.0% (6.9) 0.3 (7.2) -2400.0%
Other SG&A
expense 5.8 0.3 5.5 1833.3% 5.6 0.4 5.2 1300.0%
Purchased
services (0.2) - (0.2) 100.0% (0.3) 0.1 (0.4) -400.0%
Depreciation
& amortization 0.1 - 0.1 100.0% - - - 0.0%
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Total SG&A
expense (1.4) 0.7 (2.1) -300.0% (1.6) 0.8 (2.4) -300.0%
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Operating
income $ - $ - $ - 0.0% $ - $ - $ - 0.0%
---------- --------- ---------- ---------- ---------- --------- ---------- ---------
Note: Intersegment eliminations represent intercompany activity between the
Company's reportable segments that is eliminated upon consolidation. The
difference between operating income (loss) component line items in the
Consolidated Statements of Operations and the sum of the respective line items
from the Transportation and Logistics Summary Financial Tables and Corporate
Summary of Sales, General & Administrative Expense above represents intercompany
eliminations between our reportable segments. The table above summarizes the
intersegment eliminations by line item.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Unaudited)
(In millions)
Category Three Months Ended June 30, Six Months Ended June 30,
------------------------------ -----------------------------
Change Change
2016 2015 % 2016 2015 %
--------- ---------- --------- --------- ---------- --------
Net income Net income
(loss) (loss)
attributable attributable
to common to common
shareholders shareholders $ 42.6 $ (75.1) -156.7% $ 22.0 $ (90.3) -124.4%
Cumulative
preferred
dividends and
non-cash
Distributed income
and allocated to
undistributed participating
net income securities (4.0) (0.7) 471.4% (2.1) (1.5) 40.0%
Net (income)
loss
attributable
to
Noncontrolling noncontrolling
interests interests (3.8) 4.4 -186.4% (7.0) 4.4 -259.1%
--------- ---------- --------- --------- ---------- --------
Net income
(loss)
attributable
to common Net income
shareholders (loss) 50.4 (78.8) -164.0% 31.1 (93.2) -133.4%
--------- ---------- --------- --------- ---------- --------
Debt
commitment Interest
fees expense - 8.6 -100.0% - 8.6 -100.0%
Loss on
conversion of
convertible Interest
senior notes expense 0.2 0.4 -50.0% 0.2 6.9 -97.1%
Other interest Interest
expense expense 94.5 27.3 246.2% 187.6 43.9 327.3%
Income tax Income tax
provision provision
(benefit) (benefit) 33.0 (9.5) -447.4% 17.3 (23.2) -174.6%
Sales, general
Accelerated and
amortization administrative
of trade names expense - 1.9 -100.0% - 2.4 -100.0%
Other Cost of
depreciation transportation
expense and services 53.5 5.2 928.8% 114.3 5.3 2056.6%
Other
depreciation & Direct
amortization operating
expense expense 43.5 13.1 232.1% 84.6 21.3 297.2%
Other Sales, general
depreciation & and
amortization administrative
expense expense 64.4 35.9 79.4% 124.7 60.9 104.8%
Unrealized
gains on
foreign
currency
option and
forward
contracts Other expense (6.1) - 100.0% (4.1) - 100.0%
--------- ---------- --------- --------- ---------- --------
EBITDA $ 333.4 $ 4.1 8031.7% $ 555.7 $ 32.9 1589.1%
--------- ---------- --------- --------- ---------- --------
Sales, general
Transaction & and
integration administrative
costs expense 18.6 78.8 -76.4% 41.8 79.6 -47.5%
Sales, general
and
Rebranding administrative
costs expense 2.9 2.5 16.0% 6.7 2.5 168.0%
Sales, general
Gain on sale and
of intermodal administrative
equipment expense - (5.7) -100.0% - (5.7) -100.0%
--------- ---------- --------- --------- ---------- --------
Adjusted
EBITDA $ 354.9 $ 79.7 345.3% $ 604.2 $ 109.3 452.8%
--------- ---------- --------- --------- ---------- --------
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release. Adjusted EBITDA was prepared assuming 100% ownership of XPO Logistics
Europe.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of GAAP Net Income (Loss) and Net Income (Loss)
Per Share to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per
Share
(Unaudited)
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
Unternehmensinformation / Kurzprofil:
Datum: 03.08.2016 - 22:15 Uhr
Sprache: Deutsch
News-ID 487212
Anzahl Zeichen: 65596
contact information:
Town:
Greenwich
Kategorie:
Business News
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"XPO Logistics Announces Second Quarter 2016 Results"
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