XPO Logistics Announces Third Quarter 2017 Results
(Thomson Reuters ONE) -
Reports record quarterly revenue, net income and adjusted EBITDA
Generates $294 million of cash flow from operations and $183 million of free
cash flow in the quarter
GREENWICH, Conn. - November 1, 2017 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the third quarter 2017. Revenue was $3.89
billion for the quarter, compared with $3.71 billion for the same period in
2016. Revenue increased year-over-year by $305.1 million, excluding third
quarter 2016 revenue of $131.8 million from the North American truckload unit
divested in October 2016. Net income attributable to common shareholders was
$57.5 million for the quarter, or earnings of $0.44 per diluted share, compared
with net income attributable to common shareholders of $13.8 million, or
earnings of $0.11 per diluted share, for the same period in 2016.
Adjusted net income attributable to common shareholders, a non-GAAP financial
measure, was $76.7 million for the quarter, compared with $49.8 million for the
same period in 2016. Adjusted earnings per diluted share, a non-GAAP financial
measure, was $0.59 for the quarter, compared with $0.41 for the same period in
2016. Adjusted net income attributable to common shareholders and adjusted
earnings per diluted share for the third quarter 2017 exclude: $14.2 million, or
$10.6 million after-tax, of integration and rebranding costs; $9.6 million, or
$7.4 million after-tax, of non-cash unrealized losses on foreign currency
contracts; and a loss of $4.7 million, or $3.4 million net of tax, on debt
extinguishment and conversions of convertible senior notes. Reconciliations of
non-GAAP financial measures used in 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 $369.6 million
for the quarter, excluding $14.2 million of integration and rebranding costs.
This compares with $352.7 million of adjusted EBITDA for the same period in
2016, which included the divested North American truckload unit.
For the third quarter 2017, the company generated $293.7 million of cash flow
from operations and $183.2 million of free cash flow.
Reaffirms Financial Guidance
The company reaffirmed its full year targets for adjusted EBITDA of at least
$1.365 billion in 2017 and at least $1.6 billion in 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, "In
the third quarter, we generated the highest revenue, net income and cash flow of
any quarter in our history, and our $370 million of adjusted EBITDA beat
expectations. We benefited from positive market dynamics, including e-commerce
demand for contract logistics and last mile, growth in intermodal, and a
brokerage market that is trending in our favor. Our diversification is yielding
results."
Jacobs continued, "We're executing major initiatives around pricing, utilization
and sales productivity to capitalize on the large opportunities at hand. Our
sales force has closed $2.1 billion of new business through September, up 49%,
and our pipeline continues to exceed $3 billion globally. These levers, combined
with our leading positions in key sectors, are fueling organic growth that
continues to outpace the industry. We're exploring acquisition opportunities
that will augment this momentum."
Third Quarter 2017 Results by Segment
* Transportation: The company's transportation segment generated revenue
of $2.47 billion in the quarter. This compares with $2.41 billion for the
same period in 2016, which included $131.8 million of revenue from the North
American truckload unit divested on October 27, 2016. Segment revenue was
led by increases in North American freight brokerage, less-than-truckload
and last mile, and European less-than-truckload.
Operating income for the transportation segment increased to $145.2 million in
the quarter, compared with $125.4 million for the same period in 2016. Adjusted
EBITDA for the segment was $265.0 million. This compares with adjusted EBITDA of
$253.3 million for the same period in 2016, which included the divested North
American truckload unit. The increases in operating income and adjusted EBITDA
were primarily due to an improvement in operating income in European
transportation and North American last mile and freight brokerage. Within the
North American less-than-truckload unit, the adjusted operating income ratio was
87.6%, compared with 87.4% for the same period in 2016.
* Logistics: The company's logistics segment generated revenue of $1.46
billion for the quarter, compared with $1.35 billion for the same period in
2016. The increase in revenue was led by strong demand for contract
logistics both in Europe and North America, partially offset by a decline in
managed transportation revenue in North America. In Europe, contract
logistics growth was led by e-commerce and cold chain contracts in the
United Kingdom, Spain and the Netherlands. In North America, the largest
gains came from the e-commerce and industrial sectors.
Operating income for the logistics segment increased to $77.4 million, compared
with $75.3 million for the same period in 2016. Adjusted EBITDA improved to
$135.0 million, compared with $125.7 million for the same period in 2016. The
increases in operating income and adjusted EBITDA were primarily due to net
revenue growth, partially offset by higher direct operating costs related to new
contract startups that impacted North America.
* Corporate: Corporate SG&A expense was $35.8 million for the quarter,
compared with $31.9 million for the same period in 2016. The increase in
corporate expense reflects a year-over-year increase in purchased services,
including technology and recruiting.
Nine Months 2017 Financial Results
For the nine months ended September 30, 2017, the company reported total revenue
of $11.19 billion, compared with $10.94 billion for the same period in 2016.
Revenue increased year-over-year by $638.1 million, excluding nine-month 2016
revenue of $394.0 million from the North American truckload unit divested in
October 2016. Net income attributable to common shareholders was $124.5 million,
or $0.99 per diluted share, for the first nine months of 2017, compared with
$35.8 million, or $0.30 per diluted share, for the same period in 2016.
Adjusted net income attributable to common shareholders was $189.3 million for
the nine months ended September 30, 2017, compared with $92.6 million for the
same period in 2016. Adjusted earnings per diluted share was $1.50 for the nine
months ended September 30, 2017, compared with $0.76 for the same period in
2016. Adjusted net income and adjusted earnings per diluted share for the first
nine months of 2017 exclude: $55.1 million, or $36.7 million after-tax, of
integration and rebranding costs; $48.7 million, or $32.4 million after-tax, of
non-cash unrealized losses on foreign currency contracts; and a loss of $14.1
million, or $9.4 million after-tax, on debt extinguishment and conversions of
convertible senior notes.
Adjusted EBITDA for the first nine months of 2017 improved to $1.03 billion,
excluding $55.1 million of integration and rebranding costs. This compares with
$957.1 million of adjusted EBITDA for the same period in 2016, which included
the divested North American truckload unit.
Conference Call
The company will hold a conference call on Thursday, November 2, 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 December
2, 2017. To access the replay by phone, call U.S. +1-201-612-7415. Use
participant passcode 13671812.
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 32 countries, with 1,444 locations and more than 91,000
employees. 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 document 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 and nine-month periods ended September 30, 2016, and
September 30, 2017, on a consolidated basis and for our transportation and
logistics segments; free cash flow for the three and nine-month periods ended
September 30, 2016 and September 30, 2017; adjusted net income attributable to
common shareholders and adjusted earnings per share (basic and diluted)
("adjusted EPS") for the three and nine-month periods ended September 30, 2016,
and September 30, 2017; net revenue for the three and nine-month periods ended
September 30, 2016 and September 30, 2017 for our transportation and logistics
segments; and adjusted operating income for our North American less-than-
truckload business for the three and nine-month periods ended September
30, 2016 and September 30, 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. In particular,
adjusted EBITDA, adjusted net income and adjusted EPS include adjustments for
acquisition costs and related integration, transformation and rebranding
initiatives as well as other adjustments that management has determined are not
reflective of its business segments' core operating activities. 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 and transformation activities)
and certain costs related to integrating and converging IT systems. Rebranding
adjustments relate primarily to the rebranding of the XPO Logistics name on our
truck fleet and buildings. 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.
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.
We believe that adjusted net income 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 that management has
determined are not reflective of our core operating activities. 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
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 document 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 and prevent failures in or
breaches of such 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 document 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 document 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,
------------------------------- --------------------------
2017 2016 2017 2016
----------------- ------------- ------------ -------------
Revenue $ 3,887.1 $ 3,713.8 $ 11,186.9 $ 10,942.8
Operating expenses
Cost of
transportation and
services 2,042.7 2,008.4 5,899.6 5,926.8
Direct operating
expense 1,258.7 1,153.4 3,590.6 3,389.8
Sales, general and
administrative
expense 398.9 383.2 1,211.3 1,224.7
----------------- ------------- ------------ -------------
Total operating
expenses 3,700.3 3,545.0 10,701.5 10,541.3
----------------- ------------- ------------ -------------
Operating income 186.8 168.8 485.4 401.5
----------------- ------------- ------------ -------------
Other income (6.7) (1.1) (6.0) (6.7)
Foreign currency
loss (income) 15.0 (0.3) 53.9 1.8
Debt
extinguishment loss 4.6 53.2 13.6 53.2
Interest expense 72.5 93.0 222.4 280.8
----------------- ------------- ------------ -------------
Income before income
tax provision 101.4 24.0 201.5 72.4
Income tax
provision 30.4 2.7 48.4 20.0
----------------- ------------- ------------ -------------
Net income 71.0 21.3 153.1 52.4
Net income
attributable to
noncontrolling
interests (8.5) (6.2) (17.4) (13.2)
----------------- ------------- ------------ -------------
Net income
attributable to XPO $ 62.5 $ 15.1 $ 135.7 $ 39.2
----------------- ------------- ------------ -------------
Net income
attributable to
common shareholders
* ([1]) $ 57.5 $ 13.8 $ 124.5 $ 35.8
Basic earnings per
share ([1]) $ 0.49 $ 0.13 $ 1.10 $ 0.33
Diluted earnings per
share ([1]) $ 0.44 $ 0.11 $ 0.99 $ 0.30
Weighted-average
common shares
outstanding
Basic weighted-
average common
shares outstanding 117.5 110.3 113.5 110.0
Diluted weighted-
average common
shares outstanding 129.8 122.9 126.2 119.2
* Net income attributable to common
shareholders reflects the following
items:
Non-cash
allocation of
undistributed
earnings $ 4.3 $ 0.6 $ 9.0 $ 1.2
Preferred
dividends 0.7 0.7 2.2 2.2
[1] The sum of quarterly net income attributable to common shareholders and
earnings per share may not equal year-to-date amounts due to differences in the
weighted-average number of shares outstanding during the respective periods and
the impact of the two-class method of calculating earning per share.
XPO Logistics, Inc.
Condensed Consolidated Balance Sheets
(In millions, except per share data)
September 30, December 31,
2017 2016
--------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 473.1 $ 373.4
Accounts receivable, net of allowances of $39.2
and $26.3, respectively 2,601.0 2,313.3
Other current assets 507.6 386.9
--------------- -------------
Total current assets 3,581.7 3,073.6
--------------- -------------
Property and equipment, net of $980.6 and
$589.9 in accumulated depreciation, respectively 2,602.1 2,537.4
Goodwill 4,534.3 4,325.8
Identifiable intangible assets, net of $515.9
and $377.1 in accumulated amortization,
respectively 1,468.0 1,534.7
Other long-term assets 172.1 226.9
--------------- -------------
Total long-term assets 8,776.5 8,624.8
--------------- -------------
Total assets $ 12,358.2 $ 11,698.4
--------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,158.0 $ 1,056.3
Accrued expenses 1,517.4 1,382.1
Current maturities of long-term debt 90.0 136.5
Other current liabilities 142.3 156.7
--------------- -------------
Total current liabilities 2,907.7 2,731.6
--------------- -------------
Long-term debt 4,541.0 4,731.5
Deferred tax liability 535.0 572.4
Employee benefit obligations 211.5 251.4
Other long-term liabilities 464.6 373.9
--------------- -------------
Total long-term liabilities 5,752.1 5,929.2
--------------- -------------
Stockholders' equity:
Convertible perpetual preferred stock, $.001
par value; 10.0 shares authorized;
0.07 of Series A shares issued and outstanding
at September 30, 2017 and
December 31, 2016 41.2 41.6
Common stock, $.001 par value; 300.0 shares
authorized; 119.6 and
111.1 shares issued and outstanding at
September 30, 2017 and
December 31, 2016, respectively 0.1 0.1
Additional paid-in capital 3,581.6 3,244.9
Accumulated deficit (259.5) (392.9)
Accumulated other comprehensive loss (54.6) (193.7)
--------------- -------------
Total stockholders' equity before
noncontrolling interest 3,308.8 2,700.0
--------------- -------------
Noncontrolling interests 389.6 337.6
--------------- -------------
Total equity 3,698.4 3,037.6
--------------- -------------
Total liabilities and equity $ 12,358.2 $ 11,698.4
--------------- -------------
XPO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)
Nine Months Ended September
30,
----------------------------
2017 2016
------------- --------------
Operating activities
Net income $ 153.1 $ 52.4
Adjustments to reconcile net income to net cash
from operating activities
Depreciation and amortization 489.1 485.4
Stock compensation expense 50.1 34.2
Accretion of debt 14.5 12.3
Deferred tax benefit (3.1) (2.3)
Loss on extinguishment of debt 13.6 53.2
Unrealized loss (gain) on foreign currency
option and forward contracts 49.9 (2.8)
Other 20.1 8.7
Changes in assets and liabilities:
Accounts receivable (199.8) (79.0)
Other assets (40.2) (72.5)
Accounts payable 48.6 (150.7)
Accrued expenses and other liabilities (71.2) 65.7
------------- --------------
Cash flows provided by operating activities 524.7 404.6
------------- --------------
Investing activities
Payment for purchases of property and equipment (389.9) (318.5)
Proceeds from sale of assets 59.6 57.9
Other - 8.6
------------- --------------
Cash flows used by investing activities (330.3) (252.0)
------------- --------------
Financing activities
Proceeds from issuance of long-term debt 523.5 1,377.8
Repurchase of debt (782.9) (1,334.2)
Proceeds from borrowings on ABL facility 495.0 260.0
Repayment of borrowings on ABL facility (525.0) (260.0)
Repayment of long-term debt and capital leases (80.9) (126.4)
Payment for debt issuance costs (12.8) (24.9)
Proceeds from common stock offering 287.6 -
Change in bank overdrafts 11.5 24.9
Payment for tax withholdings for restricted
shares (15.2) (9.3)
Dividends paid (3.3) (2.5)
Other (1.0) 11.3
------------- --------------
Cash flows used by financing activities (103.5) (83.3)
------------- --------------
Effect of exchange rates on cash 8.8 1.2
Net increase in cash 99.7 70.5
Cash and cash equivalents, beginning of period 373.4 289.8
------------- --------------
Cash and cash equivalents, end of period $ 473.1 $ 360.3
------------- --------------
Transportation
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------- ------------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Revenue $ 2,469.8 $ 2,409.1 $ 60.7 2.5% $ 7,152.2 $ 7,125.4 $ 26.8 0.4%
Cost of
transportation
and services 1,776.8 1,733.0 43.8 2.5% 5,119.7 5,096.0 23.7 0.5%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Net revenue
[a] 693.0 676.1 16.9 2.5% 2,032.5 2,029.4 3.1 0.2%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Direct
operating
expense 300.4 294.4 6.0 2.0% 884.5 904.6 (20.1) -2.2%
SG&A expense
Salaries &
benefits 132.3 138.3 (6.0) -4.3% 393.8 428.3 (34.5) -8.1%
Other SG&A
expense 38.1 43.3 (5.2) -12.0% 126.2 110.9 15.3 13.8%
Purchased
services 36.5 34.5 2.0 5.8% 99.3 111.5 (12.2) -10.9%
Depreciation
& amortization 40.5 40.2 0.3 0.7% 122.7 120.1 2.6 2.2%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Total SG&A
expense 247.4 256.3 (8.9) -3.5% 742.0 770.8 (28.8) -3.7%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Operating
income $ 145.2 $ 125.4 $ 19.8 15.8% $ 406.0 $ 354.0 $ 52.0 14.7%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Total
depreciation &
amortization 111.7 114.8 (3.1) -2.7% 329.3 341.9 (12.6) -3.7%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
EBITDA [a] $ 256.9 $ 240.2 $ 16.7 7.0% $ 735.3 $ 695.9 $ 39.4 5.7%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Transaction
& integration
costs 7.4 8.1 (0.7) -8.6% 17.8 18.4 (0.6) -3.3%
Rebranding
costs 0.7 5.0 (4.3) -86.0% 16.9 10.9 6.0 55.0%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Adjusted
EBITDA [a] * $ 265.0 $ 253.3 $ 11.7 4.6% $ 770.0 $ 725.2 $ 44.8 6.2%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
[a] See the "Non-GAAP Financial Measures" section of the 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
condensed consolidated statements of operations.
Transportation
Key Data by Service Offering
(Unaudited)
(In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2017 2016 2017 2016
------------- ------------- -------------- ------------
Revenue
North America
Freight Brokerage $ 628.6 $ 544.4 $ 1,748.9 $ 1,576.2
Less-Than-Truckload 928.5 883.5 2,753.8 2,591.5
Last Mile 242.1 212.5 679.5 592.1
Full Truckload - 131.8 - 394.0
------------- ------------- -------------- ------------
Total North America 1,799.2 1,772.2 5,182.2 5,153.8
Europe
Full Truckload 409.3 392.8 1,198.3 1,209.8
Less-Than-Truckload 220.5 200.3 645.3 626.3
------------- ------------- -------------- ------------
Total Europe 629.8 593.1 1,843.6 1,836.1
Global Forwarding 75.8 84.5 219.9 246.5
Eliminations (35.0) (40.7) (93.5) (111.0)
------------- ------------- -------------- ------------
Total Revenue $ 2,469.8 $ 2,409.1 $ 7,152.2 $ 7,125.4
------------- ------------- -------------- ------------
Net Revenue
North America
Freight Brokerage $ 94.4 $ 88.7 $ 264.1 $ 268.4
Less-Than-Truckload 369.0 355.4 1,103.0 1,050.4
Last Mile 71.5 64.8 202.6 180.7
Full Truckload - 17.3 - 61.0
------------- ------------- -------------- ------------
Total North America 534.9 526.2 1,569.7 1,560.5
Europe 145.2 135.4 425.1 425.5
Global Forwarding 12.9 14.5 37.7 43.4
------------- ------------- -------------- ------------
Total Net Revenue [a] $ 693.0 $ 676.1 $ 2,032.5 $ 2,029.4
------------- ------------- -------------- ------------
Net Revenue %
North America
Freight Brokerage 15.0% 16.3% 15.1% 17.0%
Less-Than-Truckload 39.7% 40.2% 40.1% 40.5%
Last Mile 29.5% 30.5% 29.8% 30.5%
Full Truckload - 13.1% - 15.5%
------------- ------------- -------------- ------------
Total North America 29.7% 29.7% 30.3% 30.3%
Europe 23.1% 22.8% 23.1% 23.2%
Global Forwarding 17.0% 17.2% 17.1% 17.6%
------------- ------------- -------------- ------------
Overall Net Revenue % 28.1% 28.1% 28.4% 28.5%
------------- ------------- -------------- ------------
Direct Operating
Expense
North America
Freight Brokerage $ 21.0 $ 22.8 $ 64.6 $ 68.8
Less-Than-Truckload 169.5 169.1 505.3 520.3
Last Mile 16.9 14.1 47.1 41.4
------------- ------------- -------------- ------------
Total North America 207.4 206.0 617.0 630.5
Europe 89.4 84.3 256.9 260.6
Global Forwarding 3.6 4.1 10.6 13.5
------------- ------------- -------------- ------------
Total Direct Operating
Expense $ 300.4 $ 294.4 $ 884.5 $ 904.6
------------- ------------- -------------- ------------
[a] See the "Non-GAAP Financial Measures" section of the 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
September 30,
-------------------------
2017 2016
------------ ------------
Number of Working Days 62.5 64.0
Lbs. per Day (Thousands) 76,500 72,439
% Change in Lbs. per Day** 5.6% -5.3%
Shipments per Day 55,798 54,803
% Change in Shipments per Day** 1.8% -5.2%
Avg. Weight per Shipment (in pounds) 1,371 1,322
% Change in Weight per Shipment** 3.7% -0.2%
Gross Revenue per Shipment $ 275.93 $ 258.06
Gross Revenue per CWT (including fuel surcharges) $ 20.13 $ 19.52
Gross Revenue per CWT (excluding fuel surcharges) $ 17.72 $ 17.40
% Change in Gross Revenue per CWT**
Including fuel surcharges 3.1% 3.0%
Excluding fuel surcharges 1.8% 4.5%
Average Length of Haul 818.2 818.8
Total Average Load Factor 22,445 21,957
Average Age of Tractor Fleet (Years) 5.23 5.79
**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 September 30, Nine Months Ended September 30,
--------------------------------------- -------------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
--------- --------- ---------- -------- ----------- ----------- ---------- --------
Revenue
(excluding
fuel surcharge
revenue) $ 800.9 $ 775.2 $ 25.7 3.3% $ 2,384.9 $ 2,285.8 $ 99.1 4.3%
Fuel surcharge
revenue 115.2 98.3 16.9 17.2% 334.5 274.2 60.3 22.0%
--------- --------- ---------- -------- ----------- ----------- ---------- --------
Revenue 916.1 873.5 42.6 4.9% 2,719.4 2,560.0 159.4 6.2%
Salaries,
wages and
employee
benefits 426.1 426.1 0.0 0.0% 1,266.1 1,249.9 16.2 1.3%
Purchased
transportation 114.0 110.9 3.1 2.8% 330.0 332.0 (2.0) -0.6%
Fuel and fuel-
related taxes 56.7 49.7 7.0 14.1% 170.0 139.4 30.6 22.0%
Depreciation
and
amortization 59.6 49.5 10.1 20.4% 176.9 147.9 29.0 19.6%
Other
operating
expenses 118.5 104.0 14.5 13.9% 342.4 317.9 24.5 7.7%
Maintenance 25.8 25.6 0.2 0.8% 82.4 72.1 10.3 14.3%
Rents and
leases 10.4 9.8 0.60 6.1% 31.5 30.6 0.9 2.9%
Purchased
labor 3.8 2.4 1.4 58.3% 9.9 6.7 3.2 47.8%
--------- --------- ---------- -------- ----------- ----------- ---------- --------
Operating
income 101.2 95.5 5.7 6.0% 310.2 263.5 46.7 17.7%
--------- --------- ---------- -------- ----------- ----------- ---------- --------
Operating
ratio 89.0% 89.1% 88.6% 89.7%
--------- --------- ----------- -----------
Transaction,
integration
and rebranding
costs 4.2 5.8 (1.6) -27.6% 18.1 9.1 9.0 98.9%
Amortization
expense 8.4 9.0 (0.6) -6.7% 25.3 23.7 1.6 6.8%
Depreciation
adjustment
from updated
purchase price
allocation
of acquired
assets - - - 0.0% - (1.8) 1.8 -100.0%
--------- --------- ---------- ----------- ----------- ----------
Adjusted
operating
income [a] $ 113.8 $ 110.3 $ 3.5 3.2% $ 353.6 $ 294.5 $ 59.1 20.1%
--------- --------- ---------- ----------- ----------- ----------
Adjusted
operating
ratio 87.6% 87.4% 87.0% 88.5%
--------- --------- ----------- -----------
[a] See the "Non-GAAP Financial Measures" section of the Press Release.
Logistics
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------- ------------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Revenue $ 1,458.8 $ 1,347.0 $ 111.8 8.3% $ 4,154.1 $ 3,939.7 $ 214.4 5.4%
Cost of
transportation
and services 305.2 316.7 (11.5) -3.6% 894.7 950.1 (55.4) -5.8%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Net revenue
[a] 1,153.6 1,030.3 123.3 12.0% 3,259.4 2,989.6 269.8 9.0%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Direct
operating
expense 959.3 859.2 100.1 11.7% 2,706.3 2,485.8 220.5 8.9%
SG&A expense
Salaries &
benefits 64.9 50.8 14.1 27.8% 188.8 174.6 14.2 8.1%
Other SG&A
expense 10.0 6.4 3.6 56.3% 47.3 43.1 4.2 9.7%
Purchased
services 21.7 17.8 3.9 21.9% 66.4 63.0 3.4 5.4%
Depreciation
& amortization 20.3 20.8 (0.5) -2.4% 61.7 64.8 (3.1) -4.8%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Total SG&A
expense 116.9 95.8 21.1 22.0% 364.2 345.5 18.7 5.4%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Operating
income $ 77.4 $ 75.3 $ 2.1 2.8% $ 188.9 $ 158.3 $ 30.6 19.3%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Total
depreciation &
amortization 54.9 46.5 8.4 18.1% 155.1 142.2 12.9 9.1%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
EBITDA [a] $ 132.3 $ 121.8 $ 10.5 8.6% $ 344.0 $ 300.5 $ 43.5 14.5%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Transaction
& integration
costs 2.6 3.4 (0.8) -23.5% 12.1 19.0 (6.9) -36.3%
Rebranding
costs 0.1 0.5 (0.4) -80.0% 0.7 0.9 (0.2) -22.2%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
Adjusted
EBITDA [a] * $ 135.0 $ 125.7 $ 9.3 7.4% $ 356.8 $ 320.4 $ 36.4 11.4%
----------- ----------- ---------- -------- ----------- ----------- ---------- -------
[a] See the "Non-GAAP Financial Measures" section of the 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
condensed consolidated statements of operations.
Logistics
Key Data by Geography
(Unaudited)
(In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- --------------------------
2017 2016 2017 2016
-------------- ------------- ------------- ------------
Revenue
North America $ 657.4 $ 649.4 $ 1,942.3 $ 1,901.5
Europe 801.4 697.6 2,211.8 2,038.2
-------------- ------------- ------------- ------------
Total Revenue $ 1,458.8 $ 1,347.0 $ 4,154.1 $ 3,939.7
-------------- ------------- ------------- ------------
Net Revenue
North America $ 545.2 $ 512.3 $ 1,596.3 $ 1,467.1
Europe 608.4 518.0 1,663.1 1,522.5
-------------- ------------- ------------- ------------
Total Net Revenue [a] $ 1,153.6 $ 1,030.3 $ 3,259.4 $ 2,989.6
-------------- ------------- ------------- ------------
Direct Operating
Expense
North America $ 474.2 $ 437.7 $ 1,375.9 $ 1,243.7
Europe 485.1 421.5 1,330.4 1,242.1
-------------- ------------- ------------- ------------
Total Direct Operating
Expense $ 959.3 $ 859.2 $ 2,706.3 $ 2,485.8
-------------- ------------- ------------- ------------
Gross Margin
North America $ 71.0 $ 74.6 $ 220.4 $ 223.4
Europe 123.3 96.5 332.7 280.4
-------------- ------------- ------------- ------------
Total Gross Margin $ 194.3 $ 171.1 $ 553.1 $ 503.8
-------------- ------------- ------------- ------------
Gross Margin %
North America 10.8% 11.5% 11.3% 11.8%
Europe 15.4% 13.8% 15.0% 13.8%
-------------- ------------- ------------- ------------
Total Gross Margin % 13.3% 12.7% 13.3% 12.8%
-------------- ------------- ------------- ------------
[a] See the "Non-GAAP Financial Measures" section of the Press Release.
XPO Corporate
Summary of Sales, General & Administrative Expense
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------- --------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
-------- -------- ---------- -------- --------- --------- ---------- -------
SG&A expense
Salaries &
benefits $ 19.6 $ 18.8 $ 0.8 4.3% $ 55.0 $ 50.8 $ 4.2 8.3%
Other SG&A
expense 3.1 6.5 (3.4) -52.3% 10.0 20.2 (10.2) -50.5%
Purchased
services 12.4 6.2 6.2 100.0% 39.8 38.6 1.2 3.1%
Depreciation
&
amortization 0.7 0.4 0.3 75.0% 4.7 1.2 3.5 291.7%
-------- -------- ---------- -------- --------- --------- ---------- -------
Total SG&A
expense $ 35.8 $ 31.9 $ 3.9 12.2% $ 109.5 $ 110.8 $ (1.3) -1.2%
-------- -------- ---------- -------- --------- --------- ---------- -------
Intersegment Eliminations
Summary Financial Table
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------ -------------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
---------- ---------- ---------- --------- ----------- ----------- ---------- --------
Revenue $ (41.5) $ (42.3) $ 0.8 -1.9% $ (119.4) $ (122.3) $ 2.9 -2.4%
Cost of
transportation
and services (39.3) (41.3) 2.0 -4.8% (114.8) (119.3) 4.5 -3.8%
---------- ---------- ---------- --------- ----------- ----------- ---------- --------
Net revenue
[a] (2.2) (1.0) (1.2) 120.0% (4.6) (3.0) (1.6) 53.3%
---------- ---------- ---------- --------- ----------- ----------- ---------- --------
Direct
operating
expense (1.0) (0.2) (0.8) 400.0% (0.2) (0.6) 0.4 -66.7%
SG&A expense
Salaries &
benefits - 3.4 (3.4) -100.0% (2.2) (3.5) 1.3 -37.1%
Other SG&A
expense (0.6) (6.4) 5.8 -90.6% (1.2) (0.8) (0.4) 50.0%
Purchased
services (0.6) 2.1 (2.7) -128.6% (1.0) 1.8 (2.8) -155.6%
Depreciation
& amortization - 0.1 (0.1) -100.0% - 0.1 (0.1) -100.0%
---------- ---------- ---------- --------- ----------- ----------- ---------- --------
Total SG&A
expense (1.2) (0.8) (0.4) 50.0% (4.4) (2.4) (2.0) 83.3%
---------- ---------- ---------- --------- ----------- ----------- ---------- --------
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 Condensed
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 "Non-GAAP Financial Measures" section of the Press Release.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of Net Income to Adjusted EBITDA
(Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
---------------------------------------- -------------------------------------------
$ Change $ Change
2017 2016 Variance % 2017 2016 Variance %
--------- --------- ---------- --------- ----------- ---------- ---------- ---------
Net income
attributable to
common
shareholders([1]) $ 57.5 $ 13.8 $ 43.7 -316.7% $ 124.5 $ 35.8 $ 88.7 247.8%
Distributed and
undistributed net
income ([1]) (5.0) (1.3) (3.7) 284.6% (11.2) (3.4) (7.8) 229.4%
Noncontrolling
interests (8.5) (6.2) (2.3) 37.1% (17.4) (13.2) (4.2) 31.8%
--------- --------- ---------- --------- ----------- ---------- ---------- ---------
Net income 71.0 21.3 49.7 -233.3% 153.1 52.4 100.7 192.2%
---
Unternehmensinformation / Kurzprofil:
Datum: 01.11.2017 - 21:15 Uhr
Sprache: Deutsch
News-ID 566285
Anzahl Zeichen: 65622
contact information:
Town:
Greenwich
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"XPO Logistics Announces Third Quarter 2017 Results"
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