- Comparable revenue growth for the
second quarter and the first half of 2018
- Positive business trends in all
segments, including sequential quarterly improvements in the
Less-than-Truckload segment as turnaround investments
continue
- Strong top and bottom line
comparable growth in Ascent Global Logistics segment
- Truckload & Express Services
segment continues strong revenue growth in ground and air expedited
business while making structural improvements in temperature
controlled, scheduled dry van and intermodal services
Roadrunner Transportation Systems, Inc. (“Roadrunner” or the
“company”) (NYSE: RRTS), a leading asset-right transportation and
asset-light logistics service provider, today announced results for
the second quarter ended June 30, 2018 and the filing of its
Quarterly Report on Form 10-Q.
Second Quarter Financial
Results
- Revenues for the second quarter ended
June 30, 2018 were $558.0 million. Revenues for the quarter ended
June 30, 2017 were $530.6 million and included $23.1 million of
revenues from Unitrans, which was successfully divested in
September 2017. Excluding Unitrans from the prior year, comparable
revenue increased by 10.0% in 2018.
- Operating loss in the second quarter of
2018 was $11.4 million, which included operations and corporate
restructuring and restatement costs of $8.6 million. Operating loss
in the second quarter of 2017 was $7.5 million, which included
corporate restructuring and restatement costs of $9.1 million.
Unitrans contributed $2.0 million of operating income in the second
quarter of 2017.
- Net loss increased to $42.0 million in
the second quarter of 2018 compared to $37.9 million in the second
quarter of 2017. The increase was due primarily to higher interest
costs related to the company’s outstanding preferred stock and a
lower income tax benefit, partially offset by the absence of a loss
from debt extinguishment of $9.8 million that occurred in the
second quarter of 2017.
- Diluted loss per share available to
common stockholders was $1.09 for the second quarter of 2018,
compared to diluted loss per share of $0.99 for the second quarter
of 2017.
- Adjusted EBITDA, excluding the impact
of Unitrans in 2017, was $6.7 million for the second quarter of
2018 compared to $9.1 million in the second quarter of 2017. The
decline was due to corporate cost increases of $4.3 million in
2018, primarily due to higher information technology (IT) costs and
professional fees related to the audit of our 2017 financial
statements. Adjusted EBITDA for the quarters ended June 30, 2018
and 2017 was calculated as follows:
(In thousands)
Three Months Ended
June 30, 2018
Corporate/
TES LTL Ascent Eliminations
Total Net (loss) income $ (758 ) $ (3,763 ) $ 7,285 $
(44,719 ) $ (41,955 ) Plus: Total interest expense 8 20 29 34,175
34,232 Plus: Benefit from income taxes — — — (3,652 ) (3,652 )
Plus: Depreciation and amortization 6,241 900 1,168 815 9,124 Plus:
Long-term incentive compensation expenses — — — 426 426 Plus:
Operations restructuring costs 4,655 — — — 4,655 Plus: Corporate
restructuring and restatement costs — —
—
3,911 3,911 Adjusted EBITDA $ 10,146 $
(2,843 ) $ 8,482 $ (9,044 ) $ 6,741
(In thousands)
Three Months Ended June 30,
2017
Corporate/
Less: Total w/o TES LTL
Ascent Eliminations Total Unitrans
Unitrans Net (loss) income $ 3,475 $ (3,312 ) $ 7,181 $
(45,207 ) $ (37,863 ) $ 2,026 $ (39,889 ) Plus: Total interest
expense (19 ) 48 36 28,290 28,355 — 28,355 Plus: Benefit from
income taxes — — — (7,812 ) (7,812 ) — (7,812 ) Plus: Depreciation
and amortization 6,197 953 1,631 429 9,210 295 8,915 Plus:
Long-term incentive compensation expenses — — — 659 659 — 659 Plus:
Loss on debt extinguishments — — — 9,827 9,827 — 9,827 Plus:
Corporate restructuring and restatement costs — — —
9,052 9,052 — 9,052 Adjusted
EBITDA $ 9,653 $ (2,311 ) $ 8,848 $ (4,762 ) $ 11,428
$ 2,321 $ 9,107
Note: Adjusted EBITDA for the Ascent segment in the second
quarter of 2017, excluding Unitrans, was $6.5 million.
For more information about Adjusted EBITDA, see “Non-GAAP
Financial Measures” below and the company’s SEC filings.
Second Quarter Segment Results
The company’s three reporting segments are: Truckload &
Express Services (TES), Less-than-Truckload (LTL) and Ascent Global
Logistics (Ascent). Segment results for the second quarter ended
June 30, 2018 compared to the same period in 2017 are highlighted
below:
- TES revenues of $300.0 million in the
second quarter of 2018 increased 14.1% from $262.8 million in 2017
due primarily to increased ground and air expedited freight and
related brokerage, coupled with a strong demand environment which
drove higher rates across most of the segment. Purchased
transportation costs and yield were negatively impacted by capacity
reductions in intermodal services and over-the-road operations,
including dry van and temperature controlled. TES experienced an
operating loss of $0.8 million in the second quarter of 2018, which
included operations restructuring costs of $4.7 million related to
fleet and facilities right-sizing and severance costs to complete
the integration of temperature controlled. Adjusted EBITDA
increased 5.1% to $10.1 million in the second quarter of 2018 from
$9.7 million in the prior year. The increase in Adjusted EBITDA was
the result of improved volume and rates, partially offset by
increased purchased transportation, equipment lease, maintenance
and IT costs.
- LTL revenues of $117.2 million in the
second quarter of 2018 decreased 3.9% from $122.0 million in the
second quarter of 2017 due to a decrease in shipping volumes, which
was partially offset by higher fuel surcharges and rates. During
the quarter, the company reduced selected service areas in order to
eliminate unprofitable freight and focus on key lanes. LTL
operating loss was $3.7 million in the second quarter of 2018,
compared to $3.3 million in the second quarter of 2017. Adjusted
EBITDA loss in the second quarter of 2018 of $2.8 million improved
by $5.0 million from the Adjusted EBITDA loss in the first quarter
of 2018 but declined when compared to the prior year second quarter
Adjusted EBITDA loss of $2.3 million. The decrease in Adjusted
EBITDA from the prior year was the result of lower shipping volumes
and higher other operating expenses due to increased IT costs.
- Ascent revenues of $144.6 million in
the second quarter of 2018 decreased from $148.1 million in the
second quarter of 2017 due to the divestiture of Unitrans, which
generated $23.1 million of revenue in the second quarter of 2017.
Excluding Unitrans, Ascent revenue increased by 15.7% in 2018 due
to higher revenue from domestic freight management (truckload and
LTL brokerage) and retail consolidation (growth from existing and
new customers). Operating income increased to $7.3 million in the
second quarter of 2018 from $7.2 million in the second quarter of
2017, which included $2.0 million of operating income from
Unitrans. Adjusted EBITDA, excluding Unitrans in 2017, increased
30.0% to $8.5 million in the second quarter of 2018 from $6.5
million in the prior year. The increase in Adjusted EBITDA was the
result of improved performance driven by growth in retail
consolidation and domestic freight management, partially offset by
declines in international freight forwarding and increases in other
operating expenses, including IT costs.
First Half Financial Results
- Revenues for the first half of 2018
were $1,128.0 million. Revenues for the first half of 2017 were
$1,009.5 million, which included $48.3 million of revenue from
Unitrans. As previously mentioned, Unitrans was successfully
divested in September 2017. Excluding Unitrans from the prior year,
comparable revenue increased by 17.4%.
- Operating loss in the first half of
2018 was $24.8 million, which included operations and corporate
restructuring and restatement costs of $15.5 million. Operating
loss in the first half of 2017 was $25.4 million, which included
corporate restructuring and restatement costs of $16.8 million.
Unitrans contributed $4.5 million of operating income in the first
half of 2017.
- Net loss increased to $65.6 million for
the first half of 2018, compared to $57.8 million in the first half
of 2017, due primarily to higher interest costs related to the
company’s outstanding preferred stock, partially offset by the
absence of a loss from debt extinguishment of $9.8 million that
occurred in the first half of 2017.
- Diluted loss per share available to
common stockholders was $1.70 for the first half of 2018, compared
to diluted loss per share of $1.51 for the first half of 2017.
- Adjusted EBITDA, excluding the impact
of Unitrans in 2017, was $9.9 million for the first half of 2018
compared to $6.1 million in the first half of 2017. Adjusted EBITDA
for the first half of 2018 and 2017 was calculated as follows:
(In thousands)
Six Months Ended June
30, 2018
Corporate/ TES
LTL Ascent Eliminations Total Net
(loss) income $ 3,631 $ (12,483 ) $ 13,962 $ (70,708 ) $ (65,598 )
Plus: Total interest expense 19 56 59 43,641 43,775 Plus: Benefit
from income taxes — — — (2,982 ) (2,982 ) Plus: Depreciation and
amortization 12,537 1,813 2,356 1,483 18,189 Plus: Long-term
incentive compensation expenses — — — 1,003 1,003 Plus: Operations
restructuring costs 4,655 — — — 4,655 Plus: Corporate restructuring
and restatement costs — — — 10,824
10,824 Adjusted EBITDA $ 20,842 $ (10,614 ) $ 16,377
$ (16,739 ) $ 9,866 (In thousands)
Six Months Ended June 30, 2017
Corporate/
Less: Total w/o TES LTL
Ascent Eliminations Total Unitrans
Unitrans Net (loss) income $ 1,771 $ (6,111 ) $ 14,777 $
(68,243 ) $ (57,806 ) $ 4,453 $ (62,259 ) Plus: Total interest
expense (36 ) 126 75 34,715 34,880 — 34,880 Plus: Benefit from
income taxes — — — (12,304 ) (12,304 ) — (12,304 ) Plus:
Depreciation and amortization 12,473 1,914 3,287 841 18,515 589
17,926 Plus: Long-term incentive compensation expenses — — — 1,268
1,268 — 1,268 Plus: Loss on debt extinguishments — — — 9,827 9,827
— 9,827 Plus: Corporate restructuring and restatement costs —
— — 16,750 16,750 —
16,750 Adjusted EBITDA $ 14,208 $ (4,071 ) $ 18,139
$ (17,146 ) $ 11,130 $ 5,042 $ 6,088
Note: Adjusted EBITDA for the Ascent segment for the six months
ended June 30, 2017, excluding Unitrans, was $13.1 million.
First Half Segment Results
Segment results for the first half of 2018 compared to the same
period in 2017 are highlighted below:
- TES revenues of $626.1 million in the
first half of 2018 increased 27.7% from $490.3 million in the first
half of 2017. The increase was due primarily to increased ground
and air expedited freight and related brokerage coupled with a
strong demand environment which drove higher rates across most of
the segment. Purchased transportation costs and yield were
negatively impacted by capacity reductions in intermodal services
and over-the-road operations, including dry van and temperature
controlled. TES operating income was $3.7 million in the first half
of 2018, which included operations restructuring costs of $4.7
million related to fleet and facilities right-sizing and severance
costs to complete the integration of temperature controlled.
Adjusted EBITDA increased 46.7% to $20.8 million in the first half
of 2018 from $14.2 million in the prior year. The increase in
Adjusted EBITDA was the result of improved volume and rates,
partially offset by increased purchased transportation costs,
equipment lease and maintenance expense, and IT costs.
- LTL revenues of $230.3 million in the
first half of 2018 decreased 0.2% from $230.7 million in the first
half of 2017 due to a decrease in shipping volumes, partially
offset by higher fuel surcharges and rates. LTL operating loss was
$12.4 million in the first half of 2018, compared to $6.0 million
in the first half of 2017. Adjusted EBITDA loss in the first half
of 2018 of $10.6 million declined when compared to the Adjusted
EBITDA loss in first half of 2017 of $4.1 million. The decrease in
Adjusted EBITDA was the result of lower shipping volumes; higher
purchased transportation costs driven by market conditions
resulting in rate increases from purchase power providers and
higher spot prices paid to brokers which negatively impacted
linehaul expense; and higher other operating expenses, including
equipment lease, facility-related and bad debt expenses.
- Ascent revenues of $279.6 million in
the first half of 2018 decreased from $293.6 million in the first
half of 2017 due to the divestiture of Unitrans, which generated
$48.3 million of revenue in the first half of 2017. Excluding
Unitrans, revenue increased by 14.0% in the first half of 2018 due
to higher revenue from retail consolidation (growth from existing
and new customers) and domestic freight management (truckload and
LTL brokerage). Ascent operating income decreased to $14.0 million
in the first half of 2018 from $14.9 million in the first half of
2017, which included $4.5 million of operating income from
Unitrans. Adjusted EBITDA, excluding Unitrans in 2017, increased
25.0% to $16.4 million in the first half of 2018 from $13.1 million
in the prior year. The increase in Adjusted EBITDA was the result
of improved results driven by growth in retail consolidation and
domestic freight management, partially offset by decreases in
international freight forwarding and increases in other operating
expenses, including IT costs.
Liquidity and Equipment Purchase
Update
The company currently has approximately $40 million of available
funds for working capital and operating purposes from its existing
borrowing capacity under its ABL facility and standby commitment
from its preferred stock investor. The company is in compliance
with its ABL and preferred stock investment agreements. In
addition, the company has recently received approvals for equipment
purchase financing from a number of captive OEM tractor
manufacturers and other lenders. These commitments provide the
opportunity for the company to replace aging tractors and trailers
and add capacity to its current fleet over the next 12 months.
Discussion and Outlook
“We are happy to report our second quarter results on a timely
basis. Comparable second quarter and year-to-date operating results
in our Truckload & Express Services and Ascent segments
improved in 2018 versus 2017 and sequential quarterly operating
results in the LTL segment also improved in the second quarter. Now
that we are current with our SEC filings and have positive momentum
in operating results, we recently announced that we are working
with Barclays to identify the optimal capital structure to support
our long-term business plans,” said Curt Stoelting, Chief Executive
Officer of Roadrunner.
“While we are experiencing strong revenue growth in Truckload
& Express Services driven primarily by our ground and air
expedited business, we are making structural changes to improve
operations within this segment. During the second quarter in
temperature controlled, we completed the previously announced
restructuring, increased contract rates and achieved improved
operating results in June. We are currently making structural
changes in dry van and intermodal services, including on-boarding
new customers, adding capacity, increasing contract rates and
adjusting driver and independent contractor compensation and
retention programs. We expect these changes will begin to
contribute to our results in the second half of 2018 with larger
benefits from the full year impact in 2019.”
“As part of our investment in turning around the LTL segment, we
expected to incur higher operating losses in the first quarter of
2018 than in the prior year. In the second quarter we began to see
the benefits from our LTL management team’s efforts to enhance our
freight profile, increase the density within our key lanes, and
improve our operating metrics. By accelerating our focus on
reducing our service area and eliminating unprofitable freight, our
second quarter 2018 revenue was lower than the prior year, while
cost, yield and operating trends all improved. We expect these
changes, coupled with increased freight density in key lanes, will
result in improved operating trends in the second half of 2018
compared to the first half.”
“We continue to achieve strong comparable top and bottom-line
results in our Ascent Global Logistics segment. Our investments in
people and IT coupled with the integration work within this segment
are expected to continue to fuel growth and improved profitability
in future periods. We plan to continue to invest in IT enhancements
and new capabilities across all three segments. In addition, we are
working to improve our internal controls and strengthen our
corporate support functions. The improvements that we are
implementing in our operational and corporate structure are
designed to support future growth and allow us to expand operating
margins.”
Stoelting concluded, “Based on our longer-term business plans
and focus on driving sustainable returns on invested capital, the
company expects to achieve revenue of over $2.2 billion and
Adjusted EBITDA of over $100 million by the end of 2020. This
represents a 2020 target for Adjusted EBITDA margin similar to the
company’s 2015 revenue and Adjusted EBITDA of $2.0 billion and
$93.6 million, respectively. We believe that the structural changes
currently being implemented will over time result in profitability
that is more resilient and better positions Roadrunner for success
throughout natural industry cycles.”
Conference Call and Webcast
Roadrunner management will host a conference call to discuss the
company’s results for the 2018 second quarter and year-to-date on
Wednesday, August 8, 2018 at 10:00 a.m. Eastern Time. To access the
conference call, please dial 866-763-0340 (U.S.) or 703-871-3799
(International) approximately 10 minutes prior to the start of the
call. Callers will be prompted for passcode 7472319. Presentation
materials and a live webcast of the call can be accessed on the
“events and presentations” page in the Investor Relations section
of Roadrunner's website, www.rrts.com.
The conference call may include forward-looking statements.
If you are unable to listen to the live call, a replay will be
available through Wednesday, August 15, 2018 and can be accessed by
dialing 855-859-2056 (U.S.) or 404-537-3406 (International).
Callers will be prompted for passcode 7472319. An archived version
of the webcast will also be available for a period of time under
the Investor Relations section of Roadrunner's website,
www.rrts.com.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right
transportation and asset-light logistics service provider offering
a full suite of solutions under the Roadrunner®, Active On-Demand®
and Ascent Global Logistics® brands. The Roadrunner brand offers
less-than-truckload, temperature controlled and intermodal
services. Active On-Demand offers premium mission critical air and
ground transportation solutions. Ascent Global Logistics offers
domestic freight management, retail consolidation, international
freight forwarding and customs brokerage. For more information,
please visit Roadrunner’s websites, www.rrts.com and www.ascentgl.com.
Safe Harbor Statement
This press release contains 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, which relate to future events or performance.
Forward-looking statements include, among others, statements
regarding the opportunity for Roadrunner to replace aging tractors
and trailers and add capacity to its fleet over the next 12 months;
Roadrunner’s expectation that the structural changes in dry van and
intermodal services will begin to contribute to its results in the
second half of 2018, with larger benefits from the full year impact
in 2019; Roadrunner’s expectation that the changes in the LTL
segment, coupled with increased freight density in key lanes, will
result in improved operating trends in the second half of 2018
compared to the first half; Roadrunner’s expectation that its
investments in people and IT and the integration work within the
Ascent Global Logistics segment will continue to fuel growth and
improved profitability in future periods; Roadrunner’s expectation
that it will continue to invest in IT enhancements and new
capabilities across all three of its segments; the improvements in
operational and corporate structure, which are designed to support
future growth and allow Roadrunner to expand operating margins;
Roadrunner’s expectation for revenue and Adjusted EBITDA by the end
of 2020; Roadrunner’s belief that the structural changes being
implemented will over time result in profitability that is more
resilient and better positions Roadrunner for success throughout
natural industry cycles. These statements are often, but not
always, made through the use of words or phrases such as “may,”
“will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,”
“ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,”
“opportunity,” and similar words or phrases or the negatives of
these words or phrases. These forward-looking statements are based
on Roadrunner’s current assumptions, expectations and beliefs and
are subject to substantial risks, estimates, assumptions,
uncertainties and changes in circumstances that may cause
Roadrunner’s actual results, performance or achievements to differ
materially from those expressed or implied in any forward-looking
statement. Such factors include, among others, risks related to the
restatement of Roadrunner’s previously issued financial statements,
the remediation of Roadrunner’s identified material weaknesses in
its internal control over financial reporting, the litigation
resulting from the restatement of Roadrunner’s previously issued
financial statements and the other risk factors contained in
Roadrunner’s SEC filings, including Roadrunner’s Annual Report on
Form 10-K for the year ended December 31, 2017. Because the risks,
estimates, assumptions and uncertainties referred to above could
cause actual results or outcomes to differ materially from those
expressed in any forward-looking statements, you should not place
undue reliance on any forward-looking statements. Any
forward-looking statement speaks only as of the date hereof, and,
except as required by law, Roadrunner assumes no obligation and
does not intend to update any forward-looking statement to reflect
events or circumstances after the date hereof.
Non-GAAP Financial Measures
EBITDA represents earnings before interest, taxes, depreciation
and amortization. Roadrunner calculates Adjusted EBITDA as EBITDA
excluding impairment and other non-cash gains and losses, other
long-term incentive compensation expenses, losses from debt
extinguishments, operations restructuring costs, corporate
restructuring and restatements costs associated with legal matters
(including the company’s internal investigation, SEC compliance and
debt restructuring costs), and adjustments to contingent purchase
obligations. Roadrunner uses Adjusted EBITDA as a supplemental
measure in evaluating its operating performance and when
determining executive incentive compensation. Roadrunner believes
Adjusted EBITDA is useful to investors in evaluating its
performance compared to other companies in its industry because it
assists in analyzing and benchmarking the performance and value of
a business. The calculation of Adjusted EBITDA eliminates the
effects of financing, income taxes and the accounting effects of
capital spending. These items may vary for different companies for
reasons unrelated to the overall operating performance of a
company’s business. Adjusted EBITDA is not a financial measure
presented in accordance with GAAP. Although Roadrunner’s management
uses Adjusted EBITDA as a financial measure to assess the
performance of its business compared to that of others in
Roadrunner’s industry, Adjusted EBITDA has limitations as an
analytical tool, and you should not consider it in isolation, or as
a substitute for analysis of Roadrunner’s results as reported under
GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect
Roadrunner’s cash expenditures, future requirements for capital
expenditures or contractual commitments;
- Adjusted EBITDA does not reflect
changes in, or cash requirements for, Roadrunner’s working capital
needs;
- Adjusted EBITDA does not reflect the
significant interest expense or the cash requirements necessary to
service interest or principal payments on Roadrunner’s debt or
dividend payments on Roadrunner’s preferred stock;
- Although depreciation and amortization
are non-cash charges, the assets being depreciated and amortized
will often have to be replaced in the future and Adjusted EBITDA
does not reflect any cash requirements for such replacements;
and
- Other companies in Roadrunner’s
industry may calculate Adjusted EBITDA differently than Roadrunner
does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be
considered a measure of discretionary cash available to Roadrunner
to invest in the growth of the company’s business. Roadrunner
compensates for these limitations by relying primarily on
Roadrunner’s results of operations under GAAP.
ROADRUNNER TRANSPORTATION SYSTEMS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except par value)
June 30, December 31,
2018 2017 ASSETS Current assets: Cash
and cash equivalents $ 35,638 $ 25,702 Accounts receivable, net of
allowances of $10,404 and $10,891, respectively 293,038 321,629
Income tax receivable 13,838 14,749 Prepaid expenses and other
current assets 27,819 36,306 Total current assets
370,333 398,386
Property and equipment, net of
accumulated depreciation of $118,064 and $107,037, respectively
163,440 159,547
Other assets: Goodwill 264,826 264,826
Intangible assets, net 46,062 49,648 Other noncurrent assets 5,737
3,636 Total other assets 316,625 318,110
Total assets $ 850,398 $ 876,043
LIABILITIES AND STOCKHOLDERS’ INVESTMENT Current
liabilities: Current maturities of debt $ 10,012 $ 9,950
Accounts payable 148,053 171,905 Accrued expenses and other current
liabilities 101,105 105,409 Total current liabilities
259,170 287,264
Deferred tax liabilities 11,033 14,282
Other long-term liabilities 18,790 10,873
Long-term debt,
net of current maturities 178,472 189,460
Preferred
stock 335,979 263,317 Total liabilities 803,444
765,196
Commitments and contingencies
Stockholders’ investment: Common stock $.01 par value;
105,000 shares authorized; 38,507 and 38,423 shares issued and
outstanding 385 384 Additional paid-in capital 403,984 403,166
Retained deficit (357,415 ) (292,703 ) Total stockholders’
investment 46,954 110,847
Total liabilities and
stockholders’ investment $ 850,398 $ 876,043
ROADRUNNER TRANSPORTATION SYSTEMS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
Three
Months Ended Six Months Ended June
30, June 30, 2018 2017 2018
2017 Revenues $ 558,026 $ 530,579 $ 1,128,010
$ 1,009,499
Operating expenses: Purchased transportation
costs 380,072 358,432 781,035 674,717 Personnel and related
benefits 75,838 75,672 151,725 150,082 Other operating expenses
99,712 94,758 197,211 191,588 Depreciation and amortization 9,124
9,210 18,189 18,515 Operations restructuring costs 4,655 —
4,655 — Total operating expenses 569,401
538,072 1,152,815 1,034,902
Operating loss (11,375 ) (7,493 ) (24,805 ) (25,403 )
Interest expense: Interest expense - preferred stock 31,609
25,040 38,724 25,040 Interest expense - debt 2,623 3,315
5,051 9,840 Total interest expense 34,232
28,355 43,775 34,880
Loss from debt extinguishment —
9,827 — 9,827 Loss before income taxes (45,607
) (45,675 ) (68,580 ) (70,110 )
Benefit from income taxes
(3,652 ) (7,812 ) (2,982 ) (12,304 ) Net loss $ (41,955 ) $ (37,863
) $ (65,598 ) $ (57,806 )
Loss per share: Basic $ (1.09 ) $
(0.99 ) $ (1.70 ) $ (1.51 ) Diluted $ (1.09 ) $ (0.99 ) $ (1.70 ) $
(1.51 )
Weighted average common stock outstanding: Basic
38,507 38,412 38,479 38,389 Diluted 38,507 38,412 38,479 38,389
ROADRUNNER TRANSPORTATION SYSTEMS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Six Months Ended June
30, 2018 2017 Cash flows from
operating activities: Net loss $ (65,598 ) $ (57,806 )
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization 18,552 19,302 Change in
fair value of preferred stock 37,663 8,928 Amortization of
preferred stock issuance costs 1,061 16,112 Loss on disposal of
property and equipment 1,972 492 Share-based compensation 895 1,268
Loss from debt extinguishment — 9,827 Provision for bad debts 2,030
1,601 Deferred tax benefit (3,544 ) (13,904 ) Changes in: Accounts
receivable 27,156 (12,271 ) Income tax receivable 911 3,551 Prepaid
expenses and other assets 6,900 3,438 Accounts payable (23,852 )
(20,883 ) Accrued expenses and other liabilities (5,052 ) 988
Net cash used in operating activities (906 ) (39,357 )
Cash flows from investing activities: Capital expenditures
(11,391 ) (7,278 ) Proceeds from sale of property and equipment 927
1,970 Net cash used in investing activities (10,464 )
(5,308 )
Cash flows from financing activities: Borrowings
under revolving credit facilities — 63,368 Payments under revolving
credit facilities — (236,068 ) Debt borrowings 557 — Debt payments
(11,846 ) (277,750 ) Debt issuance cost — (842 ) Cash
collateralization of letters of credit — (20,737 ) Payments of debt
extinguishment costs — (4,911 ) Preferred stock issuance costs
(1,061 ) (16,112 ) Proceeds from issuance of preferred stock and
warrants 34,999 540,500 Issuance of restricted stock units, net of
taxes paid (76 ) (215 ) Payment of capital lease obligation (1,267
) (2,415 ) Net cash provided by financing activities 21,306
44,818
Net increase in cash and cash equivalents
9,936 153
Cash and cash equivalents: Beginning of period
25,702 29,513 End of period $ 35,638 $ 29,666
Supplemental cash flow information: Cash paid for
interest $ 4,966 $ 9,727 Cash paid for (refunds from) income taxes,
net $ 144 $ (2,426 ) Non-cash capital leases and other obligations
to acquire assets $ 10,451 $ —
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180808005130/en/
Reputation PartnersMarilyn Vollrath414-376-8834ir@rrts.com
Roadrunner Transportatio... (NYSE:RRTS)
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