XPO Logistics Announces First Quarter 2017 Results
(Thomson Reuters ONE) -
Achieved significant margin improvement in both transportation and logistics
Closed a record $716 million of new business in the quarter
GREENWICH, Conn. - May 3, 2017 - XPO Logistics, Inc. (NYSE: XPO) today announced
financial results for the first quarter 2017. Revenue was $3.54 billion for the
quarter, compared with $3.55 billion for the same period in 2016. Revenue
increased year-over-year by $122.6 million excluding the first quarter 2016
revenue from the North American truckload unit divested in October 2016. Net
income attributable to common shareholders was $19.5 million for the quarter, or
earnings of $0.16 per diluted share, compared with a net loss attributable to
common shareholders of $23.2 million, or a loss of $0.21 per diluted share, for
the same period in 2016.
Adjusted net income attributable to common shareholders, a non-GAAP financial
measure, was $37.9 million, or adjusted earnings of $0.30 per diluted share for
the first quarter of 2017, excluding the items detailed below. This compares
with an adjusted net loss attributable to common shareholders of $9.3 million,
or an adjusted loss of $0.08 per diluted share, for the same period in 2016.
Reconciliations of non-GAAP financial measures used in this release are provided
in the attached financial tables.
The adjusted net income attributable to common shareholders for the quarter
excludes: $21.0 million, or $13.3 million after-tax, of integration and
rebranding costs; $11.9 million, or $7.4 million after-tax, from unrealized
losses on foreign currency contracts; and $9.0 million, or $5.6 million after-
tax, of debt extinguishment costs related to the refinancing of an existing term
loan; and a tax benefit of $5.8 million primarily related to state tax planning
initiatives.
Adjusted earnings before interest, taxes, depreciation and amortization
("adjusted EBITDA"), a non-GAAP financial measure, improved to $290.0 million
for the quarter, excluding $21.0 million of integration and rebranding costs.
This reflects a 16% increase over $249.3 million of adjusted EBITDA for the same
period in 2016.
For the first three months of 2017, cash flow from operations was $15.0 million,
and free cash flow, a non-GAAP financial measure, was cash usage of $86.9
million.
Reaffirms Financial Targets
The company reaffirmed its full year targets for adjusted EBITDA of at least
$1.35 billion for 2017 and at least $1.575 billion for 2018.
The company also reaffirmed its 2017-2018 cumulative free cash flow target of
approximately $900 million, including at least $350 million of free cash flow
generated in 2017.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, "We
started the year on a strong note by solidly beating our expectations for
earnings, and continuing to expand margins in both transportation and logistics.
In North American less-than-truckload, we increased operating income by a robust
49%, in part by running our line-haul, cross-dock and pickup-and-delivery
operations more efficiently. Our market-leading position in e-commerce continued
to drive growth in last mile and contract logistics, and our intermodal unit won
the largest contract in any business line in XPO history."
Jacobs continued, "We anticipate that our performance will remain on a
trajectory of high growth and high returns. We have a larger, more integrated
sales organization feeding active bids into our $3 billion pipeline. The $716
million of sales we closed through March was a first quarter record for our
company, up significantly from $429 million a year ago. Our global procurement
team has already achieved $80 million of annual savings, and we're using our
technology to better utilize our labor and capacity - all while helping our
customers manage their supply chains more efficiently."
First Quarter 2017 Results by Segment
* Transportation: The company's transportation segment generated revenue
of $2.28 billion for the quarter, compared with $2.30 billion for the same
period in 2016, reflecting the divestiture of the North American truckload
unit on October 27, 2016. The divested operations contributed $128.8 million
of revenue in the first quarter of 2016. Organic revenue growth for the
segment was led by last mile and truck brokerage, partially offset by lower
revenue in expedited and global forwarding, and unfavorable foreign exchange
rates.
Operating income for the transportation segment increased to $100.8 million,
compared with operating income of $75.4 million a year ago. Adjusted EBITDA for
the segment improved by 13.4%, after absorbing the negative impact of EBITDA
divested with the truckload unit. The increases in operating income and adjusted
EBITDA were primarily due to a 390 basis point improvement in adjusted operating
margin in the North American less-than-truckload unit, as well as growth in
North American last mile and European transportation.
* Logistics: The company's logistics segment generated total revenue of $1.30
billion for the quarter, compared with $1.26 billion for the same period in
2016. The year-over-year increase in revenue was primarily due to growth in
contract logistics in Europe, notably e-commerce and cold chain contracts in
the United Kingdom, the Netherlands and Italy. This was partially offset by
the unfavorable impact of currency fluctuations, particularly with the
British pound sterling. In North America, growth was largely driven by gains
in the e-commerce, food and beverage, and industrial sectors, partially
offset by a decline in managed transportation revenue.
Operating income for the logistics segment increased to $47.2 million, compared
with $31.9 million a year ago. Adjusted EBITDA for the segment improved to $98.8
million, compared with $87.8 million a year ago. The increases in operating
income and adjusted EBITDA were primarily due to revenue growth, productivity
improvements in European contract logistics and SG&A cost reduction in North
American contract logistics.
* Corporate: Corporate SG&A expense was $34.4 million for the quarter,
compared with $44.9 million for the same period in 2016. The decrease in
corporate expense primarily reflects lower integration costs year-over-year.
Conference Call
The company will hold a conference call on Thursday, May 4, 2017, 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 June
4, 2017. 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 13659138.
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 89,000 employees and 1,431
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
the rules of the Securities and Exchange Commission ("SEC"), including earnings
before interest, taxes, depreciation and amortization ("EBITDA") and adjusted
EBITDA for the three-month periods ended March 31, 2016, and March 31, 2017, on
a consolidated basis and for our transportation and logistics segments; free
cash flow for the three-month periods ended March 31, 2016 and March 31, 2017;
adjusted net income (loss) attributable to common shareholders and adjusted
earnings (loss) per share (basic and diluted) ("adjusted EPS") for the three-
month periods ended March 31, 2016, and March 31, 2017; net revenue for the
three-month periods ended March 31, 2016 and March 31, 2017 for our
transportation and logistics segments; and adjusted operating income for our
North American less-than-truckload business for the three-month periods ended
March 31, 2016 and March 31, 2017.
We believe that the above adjusted financial measures facilitate analysis of our
ongoing business operations because they exclude items that may not be
reflective of, or are unrelated to, XPO and its business segments' core
operating performance, and may assist investors with comparisons to prior
periods and assessing trends in our underlying businesses. These adjustments are
consistent with how management views our businesses. Management uses these non-
GAAP financial measures in making financial, operating and planning decisions
and evaluating XPO's and each business segment's ongoing performance.
Accordingly, 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 and financing expenses), asset base (depreciation
and amortization), tax impacts and other adjustments as set out in the attached
tables that management has determined are not reflective of normalized operating
activities. Adjusted EBITDA includes adjustments for acquisition costs and
related integration and rebranding initiatives. Transaction and integration
adjustments are generally incremental costs that result from an acquisition and
include transaction costs, restructuring costs, acquisition and integration
consulting fees, internal salaries and wages (to the extent the individuals are
assigned full-time to integration activities) and certain costs related to
integrating and converting IT systems. Rebranding adjustments relate primarily
to the rebranding of the XPO Logistics name on our truck fleet and buildings. 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 certain costs and gains incurred in the
reporting period as set out in the attached tables. We believe that net revenue
improves the comparability of our operating results from period to period by
removing the cost of transportation and services, in particular the cost of
fuel, incurred in the reporting period as set out in the attached tables. We
believe that adjusted operating income for our North American less-than-
truckload business improves the comparability of our operating results from
period to period by removing the impact of certain transaction, integration and
rebranding costs and amortization and depreciation expenses incurred in the
reporting period as set out in the attached tables.
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, adjusted EPS, net revenue and
adjusted operating income for our North American less-than-truckload business
are not measures of financial performance or liquidity under GAAP and should not
be considered in isolation or as an alternative to revenue, net income,
operating income for our North American less-than-truckload business, cash flows
provided (used) by 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.
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 2017 and 2018 financial
targets of adjusted EBITDA and our 2017 and 2017-2018 cumulative targets for
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 reconciling
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.
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.
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," "trajectory" 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
integrate and realize anticipated synergies, cost savings and profit improvement
opportunities with respect to acquired companies; our ability to develop and
implement suitable information technology systems; our substantial indebtedness;
our ability to raise debt and equity capital; 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; issues related to our
intellectual property rights; governmental regulation, including trade
compliance laws; 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.
Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)
Three Months Ended
March 31,
--------------------------
2017 2016
------------- ------------
Revenue $ 3,539.5 $ 3,545.7
Operating expenses
Cost of transportation and services 1,887.3 1,945.1
Direct operating expense 1,137.7 1,106.2
Sales, general and administrative expense 400.9 432.0
------------- ------------
Total operating expenses 3,425.9 3,483.3
------------- ------------
Operating income 113.6 62.4
------------- ------------
Other expense (income) 3.3 (1.2)
Foreign currency loss 10.6 5.5
Debt extinguishment loss 9.0 -
Interest expense 75.6 93.1
------------- ------------
Income (loss) before income tax benefit 15.1 (35.0)
Income tax benefit (9.8) (15.7)
------------- ------------
Net income (loss) 24.9 (19.3)
Net income attributable to noncontrolling
interests (3.6) (3.2)
------------- ------------
Net income (loss) attributable to XPO $ 21.3 $ (22.5)
------------- ------------
Net income (loss) attributable to common
shareholders * $ 19.5 $ (23.2)
Basic earnings (loss) per share $ 0.18 $ (0.21)
Diluted earnings (loss) per share $ 0.16 $ (0.21)
Weighted-average common shares outstanding
Basic weighted-average common shares outstanding 111.4 109.6
Diluted weighted-average common shares outstanding 124.4 109.6
* Includes $1.1 million non-cash allocation of undistributed earnings for the
three months ended March 31, 2017. Includes $0.7 million preferred dividends for
the three months ended March 31, 2017 and 2016.
XPO Logistics, Inc.
Consolidated Balance Sheets
(In millions, except share and per share data)
March 31, December 31,
2017 2016
-------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 342.0 $ 373.4
Accounts receivable, net of allowances of $24.3
and $26.3, respectively 2,338.0 2,313.3
Other current assets 416.1 386.9
-------------- -------------
Total current assets 3,096.1 3,073.6
-------------- -------------
Property and equipment, net of $705.1 and $589.9
in accumulated depreciation, respectively 2,531.2 2,537.4
Goodwill 4,352.7 4,325.8
Identifiable intangible assets, net of $418.7
and $377.1 in accumulated amortization,
respectively 1,501.0 1,534.7
Deferred tax asset 3.0 2.7
Other long-term assets 204.3 224.2
-------------- -------------
Total long-term assets 8,592.2 8,624.8
-------------- -------------
Total assets $ 11,688.3 $ 11,698.4
-------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 990.7 $ 1,056.3
Accrued expenses 1,346.5 1,382.1
Current maturities of long-term debt 135.0 136.5
Other current liabilities 125.1 156.7
-------------- -------------
Total current liabilities 2,597.3 2,731.6
-------------- -------------
Long-term debt 4,810.9 4,731.5
Deferred tax liability 569.0 572.4
Employee benefit obligations 247.8 251.4
Other long-term liabilities 375.4 373.9
-------------- -------------
Total long-term liabilities 6,003.1 5,929.2
-------------- -------------
Stockholders' equity:
Convertible perpetual preferred stock, $.001 par
value; 10,000,000 shares authorized;
71,510 and 72,235 of Series A shares issued and
outstanding at March 31, 2017 and
December 31, 2016, respectively 41.2 41.6
Common stock, $.001 par value; 300,000,000
shares authorized; 111,622,997
and 111,087,027 shares issued and outstanding at
March 31, 2017 and
December 31, 2016, respectively 0.1 0.1
Additional paid-in capital 3,239.8 3,244.9
Accumulated deficit (372.4) (392.9)
Accumulated other comprehensive loss (167.5) (193.7)
-------------- -------------
Total stockholders' equity before noncontrolling
interest 2,741.2 2,700.0
-------------- -------------
Noncontrolling interests 346.7 337.6
-------------- -------------
Total equity 3,087.9 3,037.6
-------------- -------------
Total liabilities and equity $ 11,688.3 $ 11,698.4
-------------- -------------
XPO Logistics, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
Three Months Ended March
31,
--------------------------
2017 2016
------------- ------------
Operating activities
Net income (loss) $ 24.9 $ (19.3)
Adjustments to reconcile net income (loss) to net
cash from operating activities
Depreciation and amortization 157.4 162.1
Stock compensation expense 15.3 11.9
Accretion of debt 4.6 3.9
Deferred tax benefit (4.5) (22.7)
Loss on extinguishment of debt 9.0 -
Unrealized loss on foreign currency option and
forward contracts 11.9 2.2
Other 6.4 (2.1)
Changes in assets and liabilities:
Accounts receivable (15.2) 30.9
Other assets (53.1) (65.8)
Accounts payable (56.2) (90.5)
Accrued expenses and other liabilities (85.5) (3.7)
------------- ------------
Cash flows provided by operating activities 15.0 6.9
------------- ------------
Investing activities
Payment for purchases of property and equipment (122.4) (114.7)
Proceeds from sale of assets 20.5 17.5
------------- ------------
Cash flows used by investing activities (101.9) (97.2)
------------- ------------
Financing activities
Proceeds from borrowings on term loan facility 523.5 -
Payment for debt issuance costs (8.9) -
Repayment of borrowings on term loan facility (511.4) -
Repayment of long-term debt and capital leases (29.2) (41.8)
Proceeds from borrowings on ABL facility 180.0 200.0
Repayment of borrowings on ABL facility (110.0) (100.0)
Bank overdrafts 20.4 18.3
Payment for tax withholdings for restricted shares (10.4) -
Dividends paid (0.7) (0.7)
Other 0.3 -
------------- ------------
Cash flows provided by financing activities 53.6 75.8
------------- ------------
Effect of exchange rates on cash 1.9 3.7
Net decrease in cash (31.4) (10.8)
Cash and cash equivalents, beginning of period 373.4 289.8
------------- ------------
Cash and cash equivalents, end of period $ 342.0 $ 279.0
------------- ------------
Transportation
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended March 31,
--------------------------------------------------
2017 2016 $ Variance Change %
------------- ------------- ------------ ---------
Revenue $ 2,277.2 $ 2,297.4 $ (20.2) -0.9%
Cost of transportation and
services 1,641.2 1,647.1 (5.9) -0.4%
------------- ------------- ------------ ---------
Net revenue [a] 636.0 650.3 (14.3) -2.2%
------------- ------------- ------------ ---------
Direct operating expense 290.4 312.4 (22.0) -7.0%
SG&A expense
Salaries & benefits 130.2 147.3 (17.1) -11.6%
Other SG&A expense 42.1 37.0 5.1 13.8%
Purchased services 32.1 39.9 (7.8) -19.5%
Depreciation &
amortization 40.4 38.3 2.1 5.5%
------------- ------------- ------------ ---------
Total SG&A expense 244.8 262.5 (17.7) -6.7%
------------- ------------- ------------ ---------
Operating income $ 100.8 $ 75.4 $ 25.4 33.7%
------------- ------------- ------------ ---------
Total depreciation &
amortization 106.2 114.6 (8.4) -7.3%
------------- ------------- ------------ ---------
EBITDA [a] $ 207.0 $ 190.0 $ 17.0 8.9%
------------- ------------- ------------ ---------
Transaction & integration
costs 4.6 2.7 1.9 70.4%
Rebranding costs 10.7 3.3 7.4 224.2%
------------- ------------- ------------ ---------
Adjusted EBITDA [a] * $ 222.3 $ 196.0 $ 26.3 13.4%
------------- ------------- ------------ ---------
[a] See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP
Financial Measures" sections of this Press Release.
* For purposes of the summary financial table, adjusted EBITDA is reconciled to
operating income and excludes gains and losses below operating income in the
consolidated statements of operations.
Transportation
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended March
31,
--------------------------
2017 2016
------------- ------------
Revenue by Service Offering
North America
Freight Brokerage $ 548.0 $ 512.7
Less-Than-Truckload 879.2 830.5
Last Mile 207.0 178.9
Full Truckload - 128.8
Europe
Full Truckload 387.0 392.9
Less-Than-Truckload 212.1 202.5
Global Forwarding 71.6 82.7
Eliminations (27.7) (31.6)
------------- ------------
Total Revenue $ 2,277.2 $ 2,297.4
------------- ------------
Net Revenue by Service Offering
North America
Freight Brokerage $ 85.9 $ 91.6
Less-Than-Truckload 338.8 324.3
Last Mile 61.5 53.4
Full Truckload - 27.7
Europe 137.5 138.9
Global Forwarding 12.3 14.4
------------- ------------
Total Net Revenue [a] $ 636.0 $ 650.3
------------- ------------
Net Revenue % by Service Offering
North America
Freight Brokerage 15.7% 17.9%
Less-Than-Truckload 38.5% 39.0%
Last Mile 29.7% 29.8%
Full Truckload - 21.5%
Europe 23.0% 23.3%
Global Forwarding 17.2% 17.4%
------------- ------------
Overall Net Revenue % 27.9% 28.3%
------------- ------------
Direct Operating Expense by Service Offering
North America
Freight Brokerage $ 21.5 $ 23.9
Less-Than-Truckload 167.3 183.0
Last Mile 15.1 14.0
Europe 82.6 86.9
Global Forwarding 3.9 4.6
------------- ------------
Total Direct Operating Expense $ 290.4 $ 312.4
------------- ------------
[a] See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP
Financial Measures" sections of this Press Release.
Less-Than-Truckload revenue is before intercompany eliminations and includes
revenue from the Company's trailer manufacturing business.
Full Truckload revenue is before intercompany eliminations.
XPO Logistics North American Less-Than-Truckload
Summary Data Table
(Unaudited)
Three Months Ended March
31,
-------------------------
2017 2016
------------ ------------
Number of Working Days 64.0 63.5
Lbs. per Day (Thousands) 75,221 71,801
% Change in Lbs. per Day** 4.8% -5.4%
Shipments per Day 54,004 53,507
% Change in Shipments per Day** 0.9% -4.9%
Avg. Weight per Shipment (in pounds) 1,393 1,342
% Change in Weight per Shipment** 3.8% -0.5%
Gross Revenue per Shipment $ 263.47 $ 250.85
Gross Revenue per CWT (including fuel surcharges) $ 18.92 $ 18.69
Gross Revenue per CWT (excluding fuel surcharges) $ 16.70 $ 16.90
% Change in Gross Revenue per CWT**
Including fuel surcharges 1.2% 0.2%
Excluding fuel surcharges -1.1% 4.2%
Average Length of Haul 807.2 803.1
Total Average Load Factor 23,074 22,365
Average Age of Tractor Fleet (Years) 5.26 5.58
**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
March 31,
----------------------
2017 2016
----------- ----------
Revenue (excluding fuel surcharge revenue) $ 762.8 $ 738.1
Fuel surcharge revenue 106.4 81.9
----------- ----------
Revenue 869.2 820.0
Salaries, wages and employee benefits 411.8 411.8
Purchased transportation 106.5 109.7
Fuel and fuel-related taxes 57.8 42.6
Depreciation and amortization 56.8 49.1
Other operating expenses 114.2 118.3
Maintenance 29.9 22.7
Rents and leases 10.9 10.6
Purchased labor 3.1 2.7
----------- ----------
Operating income 78.2 52.5
----------- ----------
Operating ratio 91.0% 93.6%
----------- ----------
Transaction, integration and rebranding costs 8.9 1.8
Amortization expense 8.4 5.8
Depreciation adjustment from updated purchase price
allocation of acquired assets - (1.8)
----------- ----------
Adjusted operating income $ 95.5 $ 58.3
----------- ----------
Adjusted operating ratio 89.0% 92.9%
----------- ----------
Logistics
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended March 31,
--------------------------------------------------
2017 2016 $ Variance Change %
------------- ------------- ------------ ---------
Revenue $ 1,300.1 $ 1,260.7 $ 39.4 3.1%
Cost of transportation and
services 282.5 310.2 (27.7) -8.9%
------------- ------------- ------------ ---------
Net revenue [a] 1,017.6 950.5 67.1 7.1%
------------- ------------- ------------ ---------
Direct operating expense 854.6 793.8 60.8 7.7%
SG&A expense
Salaries & benefits 60.2 69.2 (9.0) -13.0%
Other SG&A expense 16.5 12.2 4.3 35.2%
Purchased services 18.5 21.7 (3.2) -14.7%
Depreciation &
amortization 20.6 21.7 (1.1) -5.1%
------------- ------------- ------------ ---------
Total SG&A expense 115.8 124.8 (9.0) -7.2%
------------- ------------- ------------ ---------
Operating income $ 47.2 $ 31.9 $ 15.3 48.0%
------------- ------------- ------------ ---------
Total depreciation &
amortization 48.7 47.1 1.6 3.4%
------------- ------------- ------------ ---------
EBITDA [a] $ 95.9 $ 79.0 $ 16.9 21.4%
------------- ------------- ------------ ---------
Transaction & integration
costs 2.5 8.6 (6.1) -70.9%
Rebranding costs 0.4 0.2 0.2 100.0%
------------- ------------- ------------ ---------
Adjusted EBITDA [a] * $ 98.8 $ 87.8 $ 11.0 12.5%
------------- ------------- ------------ ---------
[a] See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP
Financial Measures" sections of this Press Release.
* For purposes of the summary financial table, adjusted EBITDA is reconciled to
operating income and excludes gains and losses below operating income in the
consolidated statements of operations.
Logistics
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended March
31,
--------------------------
2017 2016
------------- ------------
Revenue by Service Offering
North America $ 626.8 $ 618.8
Europe 673.3 641.9
------------- ------------
Total Revenue $ 1,300.1 $ 1,260.7
------------- ------------
Net Revenue by Service Offering
North America $ 511.8 $ 470.3
Europe 505.8 480.2
------------- ------------
Total Net Revenue [a] $ 1,017.6 $ 950.5
------------- ------------
Direct Operating Expense by Service Offering
North America $ 440.7 $ 400.0
Europe 413.9 393.8
------------- ------------
Total Direct Operating Expense $ 854.6 $ 793.8
------------- ------------
Gross Margin by Service Offering
North America $ 71.1 $ 70.3
Europe 91.9 86.4
------------- ------------
Total Gross Margin $ 163.0 $ 156.7
------------- ------------
Gross Margin % by Service Offering
North America 11.3% 11.4%
Europe 13.6% 13.5%
------------- ------------
Total Gross Margin % 12.5% 12.4%
------------- ------------
[a] See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP
Financial Measures" sections of this Press Release.
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In millions)
Three Months Ended March 31,
---------------------------------------
$
2017 2016 Variance Change %
--------- -------- ---------- ---------
SG&A expense
Salaries & benefits $ 16.0 $ 16.1 $ (0.1) -0.6%
Other SG&A expense 0.5 9.9 (9.4) -94.9%
Purchased services 15.4 18.5 (3.1) -16.8%
Depreciation & amortization 2.5 0.4 2.1 525.0%
--------- -------- ---------- ---------
Total SG&A expense $ 34.4 $ 44.9 $ (10.5) -23.4%
--------- -------- ---------- ---------
Intersegment Eliminations
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended March 31,
------------------------------------------------
2017 2016 $ Variance Change %
------------ ------------ ------------ ---------
Revenue $ (37.8) $ (12.4) $ (25.4) 204.8%
Cost of transportation and
services (36.4) (12.2) (24.2) 198.4%
------------ ------------ ------------ ---------
Net revenue [a] (1.4) (0.2) (1.2) 600.0%
------------ ------------ ------------ ---------
Direct operating expense (7.3) - (7.3) 100.0%
SG&A expense
Salaries & benefits 4.0 0.2 3.8 1900.0%
Other SG&A expense 1.0 (0.2) 1.2 -600.0%
Purchased services 0.9 (0.1) 1.0 -1000.0%
Depreciation & amortization - (0.1) 0.1 -100.0%
------------ ------------ ------------ ---------
Total SG&A expense 5.9 (0.2) 6.1 -3050.0%
------------ ------------ ------------ ---------
Operating income $ - $ - $ - -
------------ ------------ ------------ ---------
Note: Intersegment eliminations represent intercompany activity between the
Company's reportable segments that is eliminated upon consolidation. The
difference between operating income 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.
[a] See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP
Financial Measures" sections of this Press Release.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Unaudited)
(In millions)
Three Months Ended March 31,
------------------------------------
2017 2016 Change %
----------- ------------ -----------
Net income (loss) attributable to common
shareholders $ 19.5 $ (23.2) 184.1%
Distributed and undistributed net income (1.8) (0.7) 157.1%
Noncontrolling interests (3.6) (3.2) 12.5%
----------- ------------ -----------
Net income (loss) 24.9 (19.3) 229.0%
----------- ------------ -----------
Loss on debt extinguishment 9.0 - 100.0%
Interest expense 75.6 93.1 -18.8%
Income tax benefit (9.8) (15.7) -37.6%
Depreciation & amortization expense 157.4 162.1 -2.9%
Unrealized loss on foreign currency option
and forward contracts 11.9 2.0 495.0%
----------- ------------ -----------
EBITDA $ 269.0 $ 222.2 21.1%
----------- ------------ -----------
Transaction & integration costs 9.7 23.2 -58.2%
Rebranding costs 11.3 3.9 189.7%
----------- ------------ -----------
Adjusted EBITDA $ 290.0 $ 249.3 16.3%
----------- ------------ -----------
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
March 31,
---------------------------------
2017 2016
------------ --------------------
GAAP net income (loss) attributable to common
shareholders $ 19.5 $ (23.2)
Loss on debt extinguishment (tax benefit
$3.4 and $0.0) 9.0 -
Unrealized loss on foreign currency option
and forward contracts (tax benefit $4.5 and
$1.3) 11.9 2.0
Depreciation & amortization from updated
purchase price allocation of acquired
assets (tax expense $0.0 and $2.2) - (5.8)
Transaction & integration costs (tax
benefit $3.5 and $8.6) 9.7 23.2
Rebranding costs (tax benefit $4.2 and
$1.4) 11.3 3.9
Income tax associated with the adjustments
above ([1]) (15.6) (9.1)
Discrete and other tax-related adjustments
([2]) (5.8) -
Impact of noncontrolling interests on above
adjustments (0.5) (0.3)
Allocation of undistributed earnings (1.6) -
------------ --------------------
Adjusted net income (loss) attributable to
common shareholders $ 37.9 $ (9.3)
------------ --------------------
Adjusted basic earnings (loss) per share $ 0.34 $ (0.08)
Adjusted diluted earnings (loss) per share $ 0.30 $ (0.08)
Weighted-average common shares outstanding
Basic weighted-average common shares
outstanding 111.4 109.6
Diluted weighted-average common shares
outstanding 124.4 109.6
[1] This line item reflects the aggregate tax effect of all non-tax related
adjustments reflected in the table above. The tax rate applied to these
adjustments was 37.2% and 39.1% for the three months ended March 31, 2017 and
2016, respectively.
[2] Adjustments consist of $2.5 million release of reserves related to uncertain
tax positions and $3.3 million release of a valuation allowance related to state
tax matters.
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release.
The Company has evaluated the guidance in accordance with Compliance and
Disclosure Interpretations (C&DI) of the U.S. Securities and Exchange Commission
table to calculate the non-GAAP Adjusted Net Income (Loss) and Adjusted Net
Income (Loss) Per Share. The table above includes the U.S. GAAP financial
statement items that have been reconciled to arrive at Adjusted Net Income
(Loss) and Adjusted Net Income (Loss) per share. The Company has applied the
jurisdictional statutory tax rate to the performance measures in the above table
to calculate the adjusted performance metrics. A corresponding noncontrolling
interest has been calculated for those reconciling items reported within the
acquired Norbert Dentressangle SA legal entities.
XPO Logistics, Inc.
Free Cash Flow
(Unaudited)
(In millions)
Three Months Ended
March 31,
--------------------------
2017 2016
------------- ----------
Cash flows provided by operating activities $ 15.0 $ 6.9
Payment for purchases of property and equipment (122.4) (114.7)
Proceeds from sales of assets 20.5 17.5
------------- ------------
Free Cash Flow $ (86.9) $ (90.3)
------------- ------------
XPO Logistics, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(In millions)
Net revenue is a non-GAAP measure calculated as total revenue less the cost of
transportation and services. Net revenue is one of the primary operational and
financial measures used by management to evaluate the business. The following
tables present a reconciliation of net revenue to revenue, the most comparable
GAAP measure. Also see the "Non-GAAP Financial Measures" section of this Press
Release.
Three Months Ended
March 31,
-------------------------------------
2017 2016
----------------- -----------------
Transportation
Revenue $ 2,277.2 $ 2,297.4
Cost of transportation and services 1,641.2 1,647.1
Unternehmensinformation / Kurzprofil:
Datum: 03.05.2017 - 22:16 Uhr
Sprache: Deutsch
News-ID 540155
Anzahl Zeichen: 65626
contact information:
Town:
Greenwich
Kategorie:
Business News
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"XPO Logistics Announces First Quarter 2017 Results"
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XPO Logistics, Inc. (Nachricht senden)
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