XPO Logistics Announces Third Quarter 2016 Results
(Thomson Reuters ONE) -
Reports third quarter records for net income, cash flow from operations,
adjusted EBITDA and free cash flow
Raises 2016 full-year free cash flow target to at least $175 million
GREENWICH, Conn. - November 2, 2016 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the third quarter of 2016. Total revenue
increased 57.2% year-over-year to $3.7 billion. Net income attributable to
common shareholders was $13.8 million for the quarter, or earnings of $0.11 per
diluted share, compared with a net loss attributable to common shareholders of
$93.1 million, or a loss of $0.94 per diluted share, for the same period in
2015.
The adjusted net income attributable to common shareholders, a non-GAAP
financial measure, was $49.8 million, or adjusted earnings of $0.41 per diluted
share for the third quarter of 2016, excluding the items detailed below. This
compares with an adjusted net loss attributable to common shareholders of $15.2
million, or an adjusted loss of $0.15 per diluted share, for the third quarter
of 2015.
The adjusted net income attributable to common shareholders for the third
quarter of 2016 excludes: $53.2 million, or $32.7 million after-tax, of debt
extinguishment costs related to the previously announced August 2016 debt
refinancing; $19.8 million, or $12.6 million after-tax, of one-time transaction-
related and rebranding costs; $0.9 million, or $0.5 million after-tax, of
unrealized foreign exchange cost; and a $6.1 million acquisition-related tax
benefit. Reconciliations of adjusted net income attributable to common
shareholders and adjusted EPS, as well as reconciliations of other non-GAAP
financial 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 $352.7 million
for the quarter, compared with $166.1 million for the same period in 2015.
Adjusted EBITDA in the third quarter of 2016 excludes $19.8 million of one-time
transaction-related and rebranding costs.
In the third quarter, the company generated $137.0 million of cash flow from
operations and $64.8 million of free cash flow. In the first nine months of
2016, the company generated $404.6 million of cash flow from operations and
$144.0 million of free cash flow.
Sells Truckload Operation to TransForce
On October 27, 2016, as previously reported, the company completed the strategic
sale of its asset-based truckload operation in North America, the former Con-way
Truckload, to TransForce Inc. for approximately $558 million in cash, subject to
customary adjustments. The company continues to provide its customers with full
truckload services through its truck brokerage network, which includes
approximately 38,000 independent carriers representing over a million trucks.
The divestment furthered the company's strategy of focusing on the supply chain
services where it holds leadership positions: contract logistics, truck
brokerage, less-than-truckload, last mile, intermodal, drayage, expedite and
managed transportation. Additionally, the transaction is expected to improve the
company's return on capital, enhance its long-term growth rate, reduce its capex
requirement, and lessen the cyclicality of the business.
Updates Financial Targets
The company raised its full-year 2016 free cash flow target to at least $175
million, as compared with the prior target of at least $150 million.
The company issued a full-year 2017 adjusted EBITDA target of at least $1.350
billion. This target reflects a 17% increase over targeted full-year 2016
adjusted EBITDA of $1.150 billion, after excluding the North American truckload
operation for the full year.
Additionally, the company updated the following full-year financial targets:
* For 2016, at least $1.245 billion of adjusted EBITDA - status quo with the
prior target of $1.265 billion, after accounting for a $20 million impact
from the truckload divestment.
* For 2018, at least $1.575 billion of EBITDA - status quo with the prior
target of $1.7 billion, after accounting for the truckload divestment.
Reduces Annual Cash Interest Expense by $63 Million
The company reduced its expected cash interest expense by approximately $63
million a year by: using the proceeds from the previously reported sale of the
North American truckload operation to repay $550 million of its outstanding
debt, resulting in an annual cash interest savings of approximately $23 million;
and opportunistically refinancing $2.6 billion of debt on August 25, 2016, as
previously reported, reducing its expected cash interest expense by
approximately $40 million.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said,
"Today, we reported record third quarter results for net income, cash flow from
operations and adjusted EBITDA. Importantly, we generated free cash flow of $65
million in the quarter, and raised our 2016 target for free cash flow to at
least $175 million.
"We achieved this strong performance in a mixed operating environment. In North
America, vigorous demand from e-commerce drove growth in our contract logistics
and last mile operations, while brokerage and intermodal were generally soft.
Our less-than-truckload business in North America had another outstanding
quarter, with higher yield and lower SG&A. This propelled a 40% increase in LTL
operating income versus a year ago, pre-acquisition. In Europe, where XPO is the
market leader in e-fulfillment, we continued to win new business from major
retailers based on our e-commerce expertise."
Jacobs continued, "Our business model gives us substantial autonomy from macro
cycles, due to the diversity of our service offering and the company-specific
nature of our profit improvement opportunities. We have a well-defined bridge
from where we stand today to our target of $1.575 billion of EBITDA in 2018.
Every component of that bridge is underway - including the optimization of over
$13 billion of spend, a dual focus on cross-selling and market penetration, and
the adoption of global best practices that benefit our employees as well as our
customers."
Third Quarter 2016 Results by Segment
* Transportation: The company's transportation segment generated total revenue
of $2.4 billion for the quarter, a 72.5% increase from the same period in
2015. The year-over-year increase in revenue was primarily due to the
acquisition of Con-way on October 30, 2015, and to organic growth, partially
offset by lower fuel-related revenue. Organic growth was led by last mile,
primarily driven by an increase in e-commerce business.
Net revenue margin for the transportation segment improved to 28.1%, compared
with 22.6% in 2015. The increase in margin was primarily due to the acquisition
of the less-than-truckload (LTL) business, as well as margin improvement in last
mile, partially offset by a lower freight brokerage margin.
Operating income for the transportation segment increased to $125.4 million,
compared with operating income of $30.9 million a year ago. Adjusted EBITDA for
the segment improved to $253.3 million for the quarter, compared with $93.1
million a year ago. The increases in operating income and adjusted EBITDA were
primarily due to the Con-way acquisition and to organic EBITDA growth led by
last mile.
* Logistics: The company's logistics segment generated total revenue of $1.3
billion for the quarter, a 35.6% increase from the same period in 2015. The
year-over-year increase was primarily due to the Con-way acquisition and to
organic growth. In Europe, sales growth was largely driven by new contract
starts with e-commerce and cold-chain customers, but was more than offset by
the adverse impact of unfavorable foreign exchange rates. In North America,
growth was largely driven by e-commerce and technology contracts, while
traditional retail was weaker.
Operating income for the logistics segment was $75.3 million, up from $36.0
million a year ago. Adjusted EBITDA was $125.7 million, up from $88.1 million a
year ago. The increases in operating income and adjusted EBITDA were primarily
due to the Con-way acquisition and organic growth, as well as improved site
productivity and initiatives to address underperforming locations.
* Corporate: Corporate SG&A expense was $31.9 million, compared with $22.8
million for the third quarter of 2015. The increase in corporate expense
reflects investments in technology and transformation functions to drive
profit improvement and growth initiatives, and an increase in equity-based
compensation.
Nine Months 2016 Financial Results
For the nine months ended September 30, 2016, the company reported total revenue
of $10.9 billion, a 155.6% increase from the same period in 2015. Net income
attributable to common shareholders was $35.8 million, or $0.30 per diluted
share, compared with a net loss of $183.5 million, or a loss of $2.10 per
diluted share, for the same period in 2015.
The adjusted net income attributable to common shareholders for the first nine
months was $92.6 million, or adjusted earnings of $0.76 per diluted share,
excluding the items detailed below. This compares with an adjusted net loss
attributable to common shareholders of $38.4 million, or an adjusted loss of
$0.44 per diluted share, for the same period in 2015.
Adjusted net income for the first nine months of 2016 excludes $68.3 million, or
$43.4 million after-tax, of one-time transaction, integration and rebranding
costs net of noncontrolling interests; $53.2 million, or $32.7 million after-
tax, of debt extinguishment costs related to the previously announced August
2016 debt refinancing; a $5.8 million, or $3.6 million after-tax, benefit to
depreciation and amortization related to the purchase price allocation of
acquired assets; a $3.0 million, or $1.9 million after-tax, benefit related to
unrealized foreign exchange positions; a $6.1 million acquisition-related tax
benefit; and a loss on conversion of convertible notes of $0.2 million, or $0.1
million net of tax.
Adjusted EBITDA for the first nine months of 2016 improved to $957.1 million,
compared with $274.7 million for the same period in 2015. Adjusted EBITDA for
the first nine months of 2016 excludes $68.3 million of one-time transaction,
integration and rebranding costs.
Conference Call
The company will hold a conference call on Thursday, November 3, 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 December
3, 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 13646916.
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 86,000 employees and 1,425
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 and adjusted earnings per
share ("adjusted EPS") for the three- and nine-month periods ended September
30, 2016; earnings and adjusted earnings before interest, taxes, depreciation
and amortization ("EBITDA" and "adjusted EBITDA", respectively) for the three-
and nine-month periods ended September 30, 2016 and 2015, on a consolidated
basis and for the company's transportation and logistics segments; and free cash
flow for the three- and nine-month periods ended September 30, 2016. 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, 2017 and 2018 financial
targets of adjusted EBITDA and EBITDA and our 2016 target of free cash flow,
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 and, as
a result, we are unable to prepare the forward-looking balance sheet, statement
of income and statement of cash flow, prepared in accordance with GAAP, that
would be required to produce such a reconciliation. 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
net income (loss) attributable to common shareholders and adjusted EPS improve
the comparability of our operating results 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, adjusted EBITDA, adjusted net income (loss) attributable to common
shareholders and adjusted EPS 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 financial targets,
the expected reduction in our capital expenditures, the expected reduction in
the cyclicality of our business, the expected reduction in our annual cash
interest expense, our expected ability to generate 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 the risks discussed in our 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, including our ability to manage our subcontractors, and risks
associated with labor disputes at our customers and efforts by labor
organizations to organize our employees; 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 by us will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on us or
our business or operations. Forward-looking statements set forth in this press
release speak only as of the date hereof, and we do not undertake any 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:
XPO Logistics, Inc.
Erin Kurtz, +1-203-489-1586
erin.kurtz(at)xpo.com
XPO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2016 2015 2016 2015
------------- ------------- -------------- ------------
Revenue $ 3,713.8 $ 2,362.1 $ 10,942.8 $ 4,281.0
Operating expenses
Cost of
transportation and
services 2,008.4 1,237.3 5,926.8 2,385.4
Direct operating
expense 1,153.4 798.1 3,389.8 1,267.5
Sales, general and
administrative expense 383.2 282.6 1,224.7 618.7
------------- ------------- -------------- ------------
Total operating
expenses 3,545.0 2,318.0 10,541.3 4,271.6
------------- ------------- -------------- ------------
Operating income 168.8 44.1 401.5 9.4
------------- ------------- -------------- ------------
Other (income)
expense (2.7) 1.6 (9.4) 3.9
Foreign currency loss 1.3 14.5 4.5 34.6
Debt extinguishment
loss 53.2 - 53.2 -
Interest expense 93.0 61.5 280.8 120.9
------------- ------------- -------------- ------------
Income (loss) before
income tax provision
(benefit) 24.0 (33.5) 72.4 (150.0)
Income tax provision
(benefit) 2.7 1.9 20.0 (21.3)
------------- ------------- -------------- ------------
Net income (loss) 21.3 (35.4) 52.4 (128.7)
Net income
attributable to
noncontrolling
interests (6.2) (5.0) (13.2) (0.6)
------------- ------------- -------------- ------------
Net income (loss)
attributable to XPO $ 15.1 $ (40.4) $ 39.2 $ (129.3)
------------- ------------- -------------- ------------
Net income (loss)
attributable to common
shareholders * $ 13.8 $ (93.1) $ 35.8 $ (183.5)
Basic earnings (loss)
per share $ 0.13 $ (0.94) $ 0.33 $ (2.10)
Diluted earnings (loss)
per share $ 0.11 $ (0.94) $ 0.30 $ (2.10)
Weighted-average common
shares outstanding
Basic weighted-
average common shares
outstanding 110.3 98.6 110.0 87.3
Diluted weighted-
average common shares
outstanding 122.9 98.6 119.2 87.3
* Includes $0.6 million and $1.2 million non-cash allocation of undistributed
earnings for the three and nine months ended September 30, 2016, respectively.
Includes $0.7 million and $2.2 million preferred dividends for the three and
nine months ended September 30, 2016 and 2015, respectively. Includes $52.0
million preferred stock beneficial conversion charge for the three and nine
months ended September 30, 2015.
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(In millions, except share and per share data)
September
30, December 31,
2016 2015
-------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 360.3 $ 289.8
Accounts receivable, net of allowances of $26.2
and $16.9, respectively 2,338.4 2,266.4
Other current assets 473.0 401.0
-------------- -------------
Total current assets 3,171.7 2,957.2
-------------- -------------
Property and equipment, net of $543.7 and $209.3
in accumulated depreciation, respectively 2,711.3 2,852.2
Goodwill 4,734.1 4,610.6
Identifiable intangible assets, net of $353.6
and $224.5 in accumulated amortization,
respectively 1,591.4 1,876.5
Deferred tax asset 2.1 113.6
Other long-term assets 208.7 233.1
-------------- -------------
Total long-term assets 9,247.6 9,686.0
-------------- -------------
Total assets $ 12,419.3 $ 12,643.2
-------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 912.0 $ 1,063.7
Accrued expenses 1,476.5 1,291.8
Current maturities of long-term debt 117.1 135.3
Other current liabilities 188.3 203.6
-------------- -------------
Total current liabilities 2,693.9 2,694.4
-------------- -------------
Long-term debt 5,297.3 5,272.6
Deferred tax liability 703.1 933.3
Employee benefit obligations 278.2 312.6
Other long-term liabilities 370.9 369.5
-------------- -------------
Total long-term liabilities 6,649.5 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 September 30, 2016 and
December 31, 2015 42.0 42.0
Common stock, $.001 par value; 300,000,000
shares authorized; 110,739,400
and 109,523,493 shares issued and outstanding at
September 30, 2016 and
December 31, 2015, respectively 0.1 0.1
Additional paid-in capital 3,233.9 3,212.3
Accumulated deficit (428.9) (465.0)
Accumulated other comprehensive loss (125.1) (72.3)
-------------- -------------
Total stockholders' equity before noncontrolling
interest 2,722.0 2,717.1
-------------- -------------
Noncontrolling interests 353.9 343.7
-------------- -------------
Total equity 3,075.9 3,060.8
-------------- -------------
Total liabilities and equity $ 12,419.3 $ 12,643.2
-------------- -------------
XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
Nine Months Ended September
30,
------------------------------
2016 2015
--------------- --------------
Operating activities
Net income (loss) $ 52.4 $ (128.7)
Adjustments to reconcile net income (loss) to
net cash from operating activities
Depreciation and amortization 485.4 191.9
Deferred tax benefit (2.3) (41.9)
Stock compensation expense 34.2 19.7
Accretion of debt 12.3 4.7
Loss on extinguishment of debt 53.2 -
Other 5.9 8.9
Changes in assets and liabilities, net of
effects of acquisitions:
Accounts receivable (79.0) (2.3)
Prepaid expense and other assets (72.5) 32.5
Accounts payable (150.7) (59.9)
Accrued expenses and other liabilities 65.7 14.5
--------------- --------------
Cash flows provided by operating activities 404.6 39.4
--------------- --------------
Investing activities
Payment for purchases of property and
equipment (318.5) (114.4)
Proceeds from sale of assets 57.9 38.7
Acquisition of businesses, net of cash
acquired - (1,609.8)
Loss on forward contract related to
acquisition - (9.7)
Other 8.6 -
--------------- --------------
Cash flows used by investing activities (252.0) (1,695.2)
--------------- --------------
Financing activities
Repayment of long-term debt and capital leases (126.4) (1,067.4)
Repurchase of debt (1,334.2) -
Proceeds from borrowing on revolving credit
facility 260.0 -
Repayment of borrowing on revolving credit
facility (260.0) -
Bank overdrafts 24.9 14.4
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 1,377.8 2,596.7
Payment for debt issuance costs (24.9) (7.9)
Purchase of noncontrolling interests - (459.7)
Dividends paid (2.5) (2.2)
Other 2.0 0.2
--------------- --------------
Cash flows (used) provided by financing
activities (83.3) 2,302.2
--------------- --------------
Effect of exchange rates on cash 1.2 (5.2)
Net increase in cash 70.5 641.2
Cash and cash equivalents, beginning of period 289.8 644.1
--------------- --------------
Cash and cash equivalents, end of period $ 360.3 $ 1,285.3
--------------- --------------
Transportation
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------------------- --------------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Revenue $ 2,409.1 $ 1,396.8 $ 1,012.3 72.5% $ 7,125.4 $ 2,820.4 $ 4,305.0 152.6%
Cost of
transportation
and services 1,733.0 1,081.7 651.3 60.2% 5,096.0 2,190.0 2,906.0 132.7%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Net revenue 676.1 315.1 361.0 114.6% 2,029.4 630.4 1,399.0 221.9%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Direct
operating
expense 294.4 135.4 159.0 117.4% 904.6 223.5 681.1 304.7%
SG&A expense
Salaries &
benefits 138.3 85.1 53.2 62.5% 428.3 199.9 228.4 114.3%
Other SG&A
expense 43.3 22.4 20.9 93.3% 110.9 53.0 57.9 109.2%
Purchased
services 34.5 9.9 24.6 248.5% 111.5 23.2 88.3 380.6%
Depreciation
& amortization 40.2 31.4 8.8 28.0% 120.1 73.1 47.0 64.3%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Total SG&A
expense 256.3 148.8 107.5 72.2% 770.8 349.2 421.6 120.7%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Operating
income $ 125.4 $ 30.9 $ 94.5 305.8% $ 354.0 $ 57.7 $ 296.3 513.5%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Accelerated
amortization
of trade names - - - 0.0% - 0.4 (0.4) -100.0%
Total
Depreciation &
amortization 114.8 54.8 60.0 109.5% 341.9 103.2 238.7 231.3%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
EBITDA $ 240.2 $ 85.7 $ 154.5 180.3% $ 695.9 $ 161.3 $ 534.6 331.4%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Transaction
& integration
costs 8.1 7.4 0.7 9.5% 18.4 14.5 3.9 26.9%
Rebranding
costs 5.0 - 5.0 100.0% 10.9 - 10.9 100.0%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
Adjusted
EBITDA* $ 253.3 $ 93.1 $ 160.2 172.1% $ 725.2 $ 175.8 $ 549.4 312.5%
----------- ----------- ----------- -------- ----------- ----------- ----------- --------
* 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 Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
2016 2015 2016 2015
------------- ------------- ------------- ------------
Revenue by Service
Offering
North America
Freight Brokerage $ 544.4 $ 511.2 $ 1,576.2 $ 1,363.8
Less-Than-Truckload 883.5 - 2,591.5 -
Last Mile 212.5 185.6 592.1 489.4
Full Truckload 131.8 - 394.0 -
Europe
Full Truckload 392.8 412.5 1,209.8 530.1
Less-Than-Truckload 200.3 193.7 626.3 247.7
Global Forwarding 84.5 96.2 246.5 197.7
Eliminations (40.7) (2.4) (111.0) (8.3)
------------- ------------- ------------- ------------
Total Revenue by Service
Offering $ 2,409.1 $ 1,396.8 $ 7,125.4 $ 2,820.4
------------- ------------- ------------- ------------
Net Revenue by Service
Offering
North America
Freight Brokerage $ 88.7 $ 105.1 $ 268.4 $ 276.3
Less-Than-Truckload 355.4 - 1,050.4 -
Last Mile 64.8 55.7 180.7 146.2
Full Truckload 17.3 - 61.0 -
Europe 135.4 137.2 425.5 177.2
Global Forwarding 14.5 17.1 43.4 30.7
------------- ------------- ------------- ------------
Total Net Revenue by
Service Offering $ 676.1 $ 315.1 $ 2,029.4 $ 630.4
------------- ------------- ------------- ------------
Net Revenue % by Service
Offering
North America
Freight Brokerage 16.3% 20.6% 17.0% 20.3%
Less-Than-Truckload 40.2% 0.0% 40.5% 0.0%
Last Mile 30.5% 30.0% 30.5% 29.9%
Full Truckload 13.1% 0.0% 15.5% 0.0%
Europe 22.8% 22.6% 23.2% 22.8%
Global Forwarding 17.2% 17.8% 17.6% 15.5%
------------- ------------- ------------- ------------
Overall Net Revenue % by
Service Offering 28.1% 22.6% 28.5% 22.4%
------------- ------------- ------------- ------------
Direct Operating Expense
by Service Offering
North America
Freight Brokerage $ 22.8 $ 31.0 $ 68.8 $ 77.6
Less-Than-Truckload 169.1 - 520.3 -
Last Mile 14.1 11.5 41.4 29.2
Europe 84.3 84.6 260.6 106.9
Global Forwarding 4.1 8.3 13.5 9.8
------------- ------------- ------------- ------------
Total Direct Operating
Expense by Service
Offering $ 294.4 $ 135.4 $ 904.6 $ 223.5
------------- ------------- ------------- ------------
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
September 30,
-------------------------
2016 2015
------------ ------------
Number of Working Days 64.0 64.0
Lbs. per Day (Thousands) 72,439 76,514
% Change in Lbs. per Day** -5.3% -3.1%
Shipments per Day 54,803 57,795
% Change in Shipments per Day** -5.2% -2.5%
Avg. Weight per Shipment (in pounds) 1,322 1,324
% Change in Weight per Shipment** -0.2% -0.6%
Gross Revenue per Shipment $ 258.06 $ 251.03
Gross Revenue per CWT (including fuel surcharges) $ 19.52 $ 18.96
Gross Revenue per CWT (excluding fuel surcharges) $ 17.40 $ 16.65
% Change in Gross Revenue per CWT**
Including fuel surcharges 3.0% -1.4%
Excluding fuel surcharges 4.5% 4.2%
Average Length of Haul 818.8 801.5
Total Average Load Factor 21,957 21,846
Average Age of Tractor Fleet (Years) 5.79 5.42
**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 Nine Months Ended
September 30, September 30,
------------------------ --------------------------
2016 2015 2016 2015
------------ ----------- ------------- ------------
Revenue (excluding fuel
surcharge revenue) $ 775.2 $ 792.2 $ 2,285.8 $ 2,327.3
Fuel surcharge revenue 98.3 113.4 274.2 350.9
------------ ----------- ------------- ------------
Revenue 873.5 905.6 2,560.0 2,678.2
Salaries, wages and
employee benefits 426.1 443.2 1,249.9 1,291.8
Purchased transportation 110.9 126.3 332.0 388.8
Fuel and fuel-related taxes 49.7 56.3 139.4 182.3
Depreciation and
amortization 49.5 37.1 147.9 111.1
Other operating expenses 104.0 131.5 317.9 392.2
Maintenance 25.6 25.6 72.1 77.4
Rents and leases 9.8 12.1 30.6 38.3
Purchased labor 2.4 5.5 6.7 20.7
------------ ----------- ------------- ------------
Operating income 95.5 68.0 263.5 175.6
------------ ----------- ------------- ------------
Operating ratio 89.1% 92.5% 89.7% 93.4%
------------ ----------- ------------- ------------
Transaction, integration
and rebranding costs 5.8 - 9.1 -
Amortization expense 9.0 - 23.7 -
Depreciation adjustment
from updated purchase price
allocation of acquired
assets - - (1.8) -
------------ ----------- ------------- ------------
Adjusted operating income $ 110.3 $ 68.0 $ 294.5 $ 175.6
------------ ----------- ------------- ------------
Adjusted operating ratio 87.4% 92.5% 88.5% 93.4%
------------ ----------- ------------- ------------
Logistics
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------- --------------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Revenue $ 1,347.0 $ 993.3 $ 353.7 35.6% $ 3,939.7 $ 1,493.7 $ 2,446.0 163.8%
Cost of
transportation
and services 316.7 183.3 133.4 72.8% 950.1 228.8 721.3 315.3%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Net revenue 1,030.3 810.0 220.3 27.2% 2,989.6 1,264.9 1,724.7 136.4%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Direct
operating
expense 859.2 662.8 196.4 29.6% 2,485.8 1,044.0 1,441.8 138.1%
SG&A expense
Salaries &
benefits 50.8 62.0 (11.2) -18.1% 174.6 91.9 82.7 90.0%
Other SG&A
expense 6.4 11.3 (4.9) -43.4% 43.1 19.2 23.9 124.5%
Purchased
services 17.8 13.5 4.3 31.9% 63.0 17.6 45.4 258.0%
Depreciation
& amortization 20.8 24.4 (3.6) -14.8% 64.8 45.3 19.5 43.0%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Total SG&A
expense 95.8 111.2 (15.4) -13.8% 345.5 174.0 171.5 98.6%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Operating
income $ 75.3 $ 36.0 $ 39.3 109.2% $ 158.3 $ 46.9 $ 111.4 237.5%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Accelerated
amortization
of trade names - - - 0.0% - 2.0 (2.0) -100.0%
Total
Depreciation &
amortization 46.5 46.9 (0.4) -0.9% 142.2 85.2 57.0 66.9%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
EBITDA $ 121.8 $ 82.9 $ 38.9 46.9% $ 300.5 $ 134.1 $ 166.4 124.1%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Transaction
& integration
costs 3.4 5.2 (1.8) -34.6% 19.0 10.0 9.0 90.0%
Rebranding
costs 0.5 - 0.5 100.0% 0.9 - 0.9 100.0%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
Adjusted
EBITDA* $ 125.7 $ 88.1 $ 37.6 42.7% $ 320.4 $ 144.1 $ 176.3 122.3%
----------- --------- ---------- -------- ----------- ----------- ----------- --------
* 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 Nine Months Ended September
September 30, 30,
-------------------------- ----------------------------
2016 2015 2016 2015
------------- ------------ -------------- -------------
Revenue by Service
Offering
North America $ 649.4 $ 292.1 $ 1,901.5 $ 615.1
Europe 697.6 701.2 2,038.2 878.6
------------- ------------ -------------- -------------
Total Revenue by
Service Offering $ 1,347.0 $ 993.3 $ 3,939.7 $ 1,493.7
------------- ------------ -------------- -------------
Net Revenue by Service
Offering
North America $ 512.3 $ 287.1 $ 1,467.1 $ 609.0
Europe 518.0 522.9 1,522.5 655.9
------------- ------------ -------------- -------------
Total Net Revenue by
Service Offering $ 1,030.3 $ 810.0 $ 2,989.6 $ 1,264.9
------------- ------------ -------------- -------------
Direct Operating
Expense by Service
Offering
North America $ 437.7 $ 244.4 $ 1,243.7 $ 519.0
Europe 421.5 418.4 1,242.1 525.0
------------- ------------ -------------- -------------
Total Direct Operating
Expense by Service
Offering $ 859.2 $ 662.8 $ 2,485.8 $ 1,044.0
------------- ------------ -------------- -------------
Gross Margin by Service
Offering
North America $ 74.6 $ 42.7 $ 223.4 $ 90.0
Europe 96.5 104.5 280.4 130.9
------------- ------------ -------------- -------------
Total Gross Margin by
Service Offering $ 171.1 $ 147.2 $ 503.8 $ 220.9
------------- ------------ -------------- -------------
Gross Margin % by
Service Offering
North America 11.5% 14.6% 11.8% 14.6%
Europe 13.8% 14.9% 13.8% 14.9%
------------- ------------ -------------- -------------
Total Gross Margin % by
Service Offering 12.7% 14.8% 12.8% 14.8%
------------- ------------ -------------- -------------
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------- -------------------------------------
$ Change $ Change
2016 2015 Variance % 2016 2015 Variance %
-------- -------- ---------- -------- --------- -------- ---------- -------
SG&A expense
Salaries &
benefits $ 18.8 $ 9.5 $ 9.3 97.9% $ 50.8 $ 33.9 $ 16.9 49.9%
Other SG&A
expense 6.5 4.3 2.2 51.2% 20.2 15.5 4.7 30.3%
Purchased
services 6.2 8.6 (2.4) -27.9% 38.6 44.7 (6.1) -13.6%
Depreciation
&
amortization 0.4 0.4 - 0.0% 1.2 1.1 0.1 9.1%
-------- -------- ---------- -------- --------- -------- ---------- -------
Total SG&A
expense $ 31.9 $ 22.8 $ 9.1 39.9% $ 110.8 $ 95.2 $ 15.6 16.4%
-------- -------- ---------- -------- --------- -------- ---------- -------
Intersegment Eliminations
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------ -------------------------------------------
$ Change $
2016 2015 Variance % 2016 2015 Variance Change %
---------- ---------- ---------- --------- ----------- ---------- ---------- ---------
Revenue $ (42.3) $ (28.0) $ (14.3) 51.1% $ (122.3) $ (33.1) $ (89.2) 269.5%
Cost of
transportation
and services (41.3) (27.7) (13.6) 49.1% (119.3) (33.4) (85.9) 257.2%
---------- ---------- ---------- --------- ----------- ---------- ---------- ---------
Net revenue (1.0) (0.3) (0.7) 233.3% (3.0) 0.3 (3.3) -1100.0%
---------- ---------- ---------- --------- ----------- ---------- ---------- ---------
Direct
operating
expense (0.2) (0.1) (0.1) 100.0% (0.6) - (0.6) 100.0%
SG&A expense
Salaries &
benefits 3.4 0.1 3.3 3300.0% (3.5) 0.5 (4.0) -800.0%
Other SG&A
expense (6.4) (0.3) (6.1) 2033.3% (0.8) (0.3) (0.5) 166.7%
Purchased
services 2.1 - 2.1 100.0% 1.8 0.1 1.7 1700.0%
Depreciation
& amortization 0.1 - 0.1 100.0% 0.1 - 0.1 100.0%
---------- ---------- ---------- --------- ----------- ---------- ---------- ---------
Total SG&A
expense (0.8) (0.2) (0.6) 300.0% (2.4) 0.3 (2.7) -900.0%
---------- ---------- ---------- --------- ----------- ---------- ---------- ---------
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)
Three Months Ended September
30, Nine Months Ended September 30,
------------------------------ --------------------------------
Change Change
2016 2015 % 2016 2015 %
--------- ---------- --------- ----------- ----------- --------
Net income
(loss)
attributable to
common
shareholders $ 13.8 $ (93.1) -114.8% $ 35.8 $ (183.5) -119.5%
Preferred stock
beneficial
conversion
charge - (52.0) -100.0% - (52.0) -100.0%
Distributed and
undistributed
net income (1.3) (0.7) 85.7% (3.4) (2.2) 54.5%
Noncontrolling
interests (6.2) (5.0) 24.0% (13.2) (0.6) 2100.0%
--------- ---------- --------- ----------- ----------- --------
Net income
(loss) 21.3 (35.4) -160.2% 52.4 (128.7) -140.7%
--------- ---------- --------- ----------- ----------- --------
Debt commitment
fees -
Unternehmensinformation / Kurzprofil:
Datum: 02.11.2016 - 21:15 Uhr
Sprache: Deutsch
News-ID 504628
Anzahl Zeichen: 65608
contact information:
Town:
Greenwich
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"XPO Logistics Announces Third Quarter 2016 Results"
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XPO Logistics, Inc. (Nachricht senden)
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