Thugmuffin
2 years ago
$RRTS Roadrunner Grows Metro-to-Metro LTL Service Network - Adds Five New Direct Lanes and Improves Transit Times in 66 LanesPress Release | 06/23/2022
Roadrunner Grows Metro-to-Metro LTL Service Network - Adds Five New Direct Lanes and Improves Transit Times in 66 Lanes
PR Newswire
DOWNERS GROVE, Ill., June 23, 2022
New Direct Service for Phoenix to Chicago, Detroit to Dallas, Indianapolis to Atlanta,
St. Louis to Dallas, and Cincinnati to Atlanta
DOWNERS GROVE, Ill., June 23, 2022 /PRNewswire/ -- Roadrunner, transportation's greatest comeback story, a service-first less-than-truckload (LTL) carrier specializing in long-haul nationwide metro-to-metro shipping, announces five additional direct lanes to its service network and improved transit times by at least one day in 66 of its major lanes. This follows other network improvements made earlier this year.
Roadrunner Freight Logo (PRNewsfoto/Roadrunner Freight)
Roadrunner's continuous investments in technology, training and service center improvements are resulting in faster delivery times and more direct lanes for its customers. As the company reengineered its lanes, it increased its volume capacities, added more direct routing and all but eliminated rail usage. Among others, lanes heading Eastbound from Phoenix, Westbound from St. Louis and Detroit and Southbound from Cincinnati and Indianapolis are all seeing notable improvements in transit times.
"This improvement arrives just in time for summer to benefit our many customers," said Roadrunner President Frank Hurst. "We are proud to announce these changes. Service is our #1 priority. We've spent the last two years overhauling our network to make sure we only operate in lanes where we can provide service and quality. As a result, we've seen our on-time service percentage increase dramatically across the network. This is the second time this year we've sped up our network and reduced transit times, and we're not stopping here."
"Moving transit times up in these 66 lanes is just the beginning. Our analytics team proved that we run faster than our stated transit times in more than 650 lanes, almost 20% of our 3,700 lanes," said Philip Thalheim, Director of Linehaul Analytics at Roadrunner. "Following previous operational improvements, which included the installation of dimensionalizers in all our facilities, dock automation, network restructuring and static load plan implementation, our data confirmed that our freight delivers early in these lanes due to earlier pickups and improved daily capacity."
"The team at Roadrunner has improved its training, its people and its service," said Chris Jamroz, Roadrunner Executive Chairman of the Board. "We've made significant investments in our technology to provide 100% end-to-end network visibility, improve site-level performance and optimize data, allowing us to provide better service at a better value. In addition to returning to our roots as an LTL carrier and offering quality service at a competitive value, Roadrunner has created a driver-centric culture that focuses on the financial success and personal well-being of our drivers."
About Roadrunner
Emerging as a service-first less-than-truckload (LTL) provider, Roadrunner transformed its operations through new leadership, a new network, and new technologies to provide its customers with exceptional LTL service. Specializing in long-haul, metro-to-metro shipping, Roadrunner has more direct routes between its 32 service centers than its traditional hub and spoke peers, allowing for better service and great value. (PINK: RRTS)
Please visit the following sites to learn more about Roadrunner and how you can join the freight revolution.
To learn more about shipping with Roadrunner: roadrunnerLTL.com
Explore careers in sales, operations, and technology at Roadrunner: roadrunnerLTL.com/careers/work-with-us
To drive for Roadrunner as an Independent Contractor (IC) including Lease-Purchase opportunities: https://run4roadrunner.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/roadrunner-grows-metro-to-metro-ltl-service-network---adds-five-new-direct-lanes-and-improves-transit-times-in-66-lanes-301574344.html
SOURCE Roadrunner
Thugmuffin
2 years ago
$RRTS Transport Topics Recognizes Roadrunner's Driver-Centric Culture with Industry Recruiting Professional of the Year AwardPress Release | 06/16/2022
Transport Topics Recognizes Roadrunner's Driver-Centric Culture with Industry Recruiting Professional of the Year Award
PR Newswire
DOWNERS GROVE, Ill., June 16, 2022
DOWNERS GROVE, Ill., June 16, 2022 /PRNewswire/ -- Roadrunner, a nationwide less-than-truckload (LTL) carrier specializing in long-haul metro-to-metro shipping, today announced that Dave Renfrew, Vice President of Capacity for the company, has been awarded the Industry Recruiting Professional of the Year by Transport Topics.
Roadrunner Freight Logo (PRNewsfoto/Roadrunner Freight)
"This is well deserved recognition for Dave and the team. We've worked hard to create an environment that empowers drivers to succeed," said Roadrunner President Frank Hurst. "Our drivers are everything to us and we are proud of how much progress we have made as partners."
Last year Roadrunner overhauled its driver relationship program to re-emphasize the driver experience, hiring Dave Renfrew in the process. Renfrew's award-winning work has included a focus on recruiting veterans and female drivers, and has resulted in Roadrunner becoming a destination of choice for owner-operators and team drivers.
Roadrunner's unique LTL network enables owner-operator truck drivers to earn industry leading pay nationwide because of the flexibility provided by Roadrunner's model.
"Our mission is empowering entrepreneurs," said Roadrunner Executive Chairman Chris Jamroz. "Our owner-operator partners are true business owners. They are building the American Dream, one mile at a time, and we cherish being their partner in that journey. Thank you to Transport Topics for this recognition. We are going to continue to work tirelessly to find the best drivers who can thrive on our platform."
About Roadrunner
Emerging as a service-first less-than-truckload (LTL) provider, Roadrunner transformed its operations through new leadership, a new network, and new technologies to provide its customers with exceptional LTL service. Specializing in long-haul, metro-to-metro shipping, Roadrunner has more direct routes between its 32 service centers than its traditional hub and spoke peers, allowing for better service and great value. (PINK: RRTS)
Please visit the following sites to learn more about Roadrunner and how you can join the freight revolution.
To learn more about shipping with Roadrunner: roadrunnerLTL.com
Explore careers in sales, operations, and technology at Roadrunner: roadrunnerLTL.com/careers/work-with-us
To drive for Roadrunner as an Independent Contractor (IC) including Lease-Purchase opportunities: https://run4roadrunner.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/transport-topics-recognizes-roadrunners-driver-centric-culture-with-industry-recruiting-professional-of-the-year-award-301569763.html
SOURCE Roadrunner
Thugmuffin
2 years ago
$RRTS Newsweek Recognizes Roadrunner as one of America's Most Trustworthy Companies 2022Press Release | 05/26/2022
Newsweek Recognizes Roadrunner as one of America's Most Trustworthy Companies 2022
PR Newswire
DOWNERS GROVE, Ill., May 26, 2022
DOWNERS GROVE, Ill., May 26, 2022 /PRNewswire/ -- Roadrunner, a nationwide less-than-truckload (LTL) carrier specializing in long-haul metro-to-metro shipping, has been recognized in Newsweek's inaugural list of America's Most Trustworthy Companies 2022.
Roadrunner Freight Logo (PRNewsfoto/Roadrunner Freight)
"We have come a long way," said Roadrunner President Frank Hurst. "Trust is the pillar of any business, and we are proud that we are being recognized for the work we have done to rebuild it with our customers and business partners. These are the results a service-oriented culture produces."
Newsweek partnered with Statista to evaluate public companies with over $500 million in revenue through an extensive survey of approximately 50,000 residents and 110,000 evaluations. Four hundred companies were chosen on criteria including investor, customer and employee trust for a holistic approach.
"Our Roadrunner team has spent tremendous energy and effort for the past two years in building trust with our customers, our business partners and our employees," said Roadrunner Executive Chairman of the Board Chris Jamroz. "This starts with our culture of governance and internal controls. We prioritize safety and regulatory compliance, which is a core focus throughout our company. We are humbled to be recognized so quickly for these changes and we will continue to focus on delivering positive results."
About Roadrunner
Emerging as a service-first less-than-truckload (LTL) provider, Roadrunner transformed its operations through new leadership, a new network, and new technologies to provide its customers with exceptional LTL service. Specializing in long-haul, metro-to-metro shipping, Roadrunner has more direct routes between its 32 service centers than its traditional hub and spoke peers, allowing for better service and great value. (PINK: RRTS)
Please visit the following sites to learn more about Roadrunner and how you can join the freight revolution.
To learn more about shipping with Roadrunner: shiproadrunnerfreight.com
Explore careers in sales, operations, and technology at Roadrunner: shiproadrunnerfreight.com/careers/work-with-us
To drive for Roadrunner as an Independent Contractor (IC) including Lease-Purchase opportunities: https://run4roadrunner.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/newsweek-recognizes-roadrunner-as-one-of-americas-most-trustworthy-companies-2022-301555999.html
Enterprising Investor
3 years ago
Roadrunner Freight Raises $50 Million in New Equity for Technology Investments and Continued Transformation (3/25/21)
- Investment Round Led by Andrew Leto, Founder of GlobalTranz and Emerge
- Andrew Leto and Kevin Shuba Join Roadrunner Board of Directors
- Dave Ross Joins Roadrunner, Named Partner and Executive Vice President
- Roadrunner Achieves Record Service Levels, Plans Launch of Guaranteed Service
DOWNERS GROVE, Ill., March 25, 2021 /PRNewswire/ -- Roadrunner Freight ("Roadrunner" or the "company") (Pink: RRTS) today announced the recent closing of a $50 million equity private placement. The round was led by Andrew Leto, founder of GlobalTranz and Emerge, who invested $10 million and is joining Roadrunner's Board. Other round participants included affiliates of Elliott Investment Management, Fox Hill Capital, Memento S.A., Solas Capital, existing management and several individuals from the transportation and logistics sector, including Kevin Shuba, who has also joined Roadrunner's Board.
"Roadrunner is really a technology moving trucks, not a trucking company. Every shipper needs a consolidator like Roadrunner, and most are not taking advantage of what Roadrunner has to offer. We are changing that. This team has done a great job cleaning up a mess and getting Roadrunner back to its roots in LTL," said Andrew Leto. "I look forward to helping drive this transformation, especially through our technology development."
Roadrunner anticipates using the net proceeds for investment in the development of technology underpinning operations, specifically around planning, pricing and efficiency, and to recruit and retain top talent. It also intends to continue to invest in service improvements.
"We are thrilled to welcome partners to this business who share our vision of an unwavering focus on service and quality for our customers and an improved experience for our drivers," said Chris Jamroz, Executive Chairman of Roadrunner.
The private placement was structured in the form of shares that have a liquidation preference equal to the subscription price (net of any distributions). The subscription price reflected an approximately 15% discount to the trading price at the time the deal was negotiated in early 2021.
Andrew Leto and Kevin Shuba Join Roadrunner Board of Directors
Andrew Leto, CEO of Emerge, and Kevin Shuba, recently departed CEO of OmniTRAX, have joined Roadrunner's Board of Directors as Independent Directors. Donald Brown, Scott Dobak and Paul Svindland remain as Independent Directors on Roadrunner's Board.
Jamroz commented, "Andrew and Kevin join us as meaningful owners in our business with the energy and knowledge to help drive significant value creation as we continue our transformation."
Andrew Leto is founder and CEO of Emerge, a cloud-based shipping platform and marketplace helping logistics professionals to more efficiently procure and manage their overflow truckload capacity. Founded by Leto in 2017, Emerge is on track to generate $250 million in sales this year, making it one of the fastest growing supply chain technology companies. Leto has been in the logistics industry since 2003 when he founded GlobalTranz, a top five customer for Roadrunner, after serving five honorable years in the U.S. Navy. GlobalTranz quickly became one of the top-10 Truckload and LTL brokers in the U.S. with over $1 billion dollars in sales. Leto also founded 10-4 Systems, a truckload and visibility platform which was acquired by Trimble in 2016.
Kevin Shuba served as the CEO of OmniTRAX, Inc., one of North America's largest private railroad holding companies, for over seven years. He remains a senior advisor to the OmniTRAX parent company, The Broe Group. As CEO he led the daily operations of 22 Short Line Railroads, Port and Terminal Operations, and OmniTRAX Logistics Services. Prior to joining OmniTRAX and The Broe Group, Shuba had a sixteen-year career with Brambles Limited, the $6 billion dollar logistics services company, where he oversaw Chep's U.S. and Americas operations. Prior to joining Brambles, Shuba held several senior sales and management positions with Baxter Healthcare Corporation. Additionally, he served in the United States Army for six years obtaining the rank of Captain.
Frank Hurst, Partner and President of Roadrunner, added, "Andrew and Kevin are already proving to be invaluable partners in bolstering our capabilities. It is no surprise they have both created such successful organizations."
Dave Ross Named Partner and Executive Vice President for Roadrunner
Dave Ross, former Managing Director and Group Head of Stifel's Global Transportation and Logistics Equity Research practice, has been named Partner and Executive Vice President for Roadrunner. In this role, Ross will focus on operations and pricing, while working with the Board to set strategic vision for the company as a whole. He brings over 20 years of extensive experience, study and knowledge of the LTL industry.
"Dave will play a critical role in architecting the emergence of the new Roadrunner," Jamroz stated.
During Ross' tenure at Stifel, his awards included ranking #1 in stock picking multiple times in the Wall Street Journal's Best on the Street Analysts Survey and in Financial Times/StarMine America's Top Analysts report. He is the former author of the monthly Cass Transportation Index Report, speaks regularly at industry conferences, and has advised supply chain leaders and executives of both public and private carriers, shippers, and 3PLs on operations and strategy.
Roadrunner Provides Update on Service, Launch of Guaranteed Service
January and February operated with record level on-time delivery rates and the lowest exceptions in company history. Due to the continued service improvements, Roadrunner will be launching a guaranteed service offering in select lanes by the end of spring 2021.
About Roadrunner Freight
Roadrunner Freight is a leading less-than-truckload provider offering high quality, reliable LTL services. Roadrunner's "Ship It Like You Own It" commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets. For more information, please visit www.shiproadrunnerfreight.com. For information on joining the Roadrunner Freight team, please contact rr-humanresources@rrts.com. Independent Contractors and Owner Operators interested in driving and lease purchase opportunities can call 888-874-9174 or email ltlrecruiting@rrts.com to learn more.
https://www.prnewswire.com/news-releases/roadrunner-freight-raises-50-million-in-new-equity-for-technology-investments-and-continued-transformation-301255650.html
AskMuncher
4 years ago
$RRTS G2 Capital Advisors Served As The Exclusive Sell-Side Advisor To Roadrunner Transportation In Its Divestiture Of Its Temperature-Controlled Truckload Division To Laurel Oak Capital Partners
Press Release | 08/26/2020
G2 Capital Advisors Served As The Exclusive Sell-Side Advisor To Roadrunner Transportation In Its Divestiture Of Its Temperature-Controlled Truckload Division To Laurel Oak Capital Partners
PR Newswire
BOSTON, Aug. 26, 2020
BOSTON, Aug. 26, 2020 /PRNewswire/ --
G2 CAPITAL ADVISORS SERVED AS THE EXCLUSIVE SELL-SIDE ADVISOR TO ROADRUNNER TRANSPORTATION IN ITS DIVESTITURE OF ITS TEMPERATURE-CONTROLLED TRUCKLOAD DIVISION TO LAUREL OAK CAPITAL PARTNERS.
CLIENT:
Roadrunner Transportation Systems, Inc. (Pink: RRTS) ("Roadrunner") has transitioned from being a multi-modal transportation and logistics service provider to being a transportation service provider focused exclusivity on less-than-truckload services. The temperature controlled truckload division, RRTC Holding, Inc., d.b.a A&A Express, LLC ("RRTC Holdings" or the "Company") is a leading provider of temperature-controlled transportation services of food and beverage products for retail and food service customers. The Company is headquartered in South Dakota and services a majority of the lower 48 states with greatest lane density across the Midwest and West regions.
SITUATION:
RRTC Holdings was developed through a rollup of four distinct acquisitions across the Midwest region. The four legal entities were consolidated into one operating company which operated as A&A Express, LLC. Roadrunner was seeking to sell RRTC Holdings as part of a multi-pronged reorganization strategy for Roadrunner to become a national carrier focused solely on providing less-than-truckload transportation services.
ENGAGEMENT:
G2 Capital Advisors, LLC ("G2") was engaged by Roadrunner as the exclusive sell-side advisor to lead a highly targeted and efficient sale process to carve out Roadrunner's temperature-controlled truckload segment.
OUTCOME
The transaction was successfully executed on July 30, 2020 through a sale of RRTC Holding to an affiliate of Laurel Oak Capital Partners ("Laurel Oak"). The acquisition was Laurel Oak's platform investment in the cold chain logistics services and represents a unique opportunity to build upon a strong brand and experienced management team.
The President of A&A Express Tim Anderson said, "My experience in working with G2 throughout the sale process was second to none. They were extremely diligent, hard working and focused on achieving the best outcome for all parties involved. The A&A team is excited to work with our new partners at Laurel Oak who clearly share a common vision for continued growth and exceptional customer service execution for our valued customers."
The Company is well positioned to benefit from the strong tailwinds that have accompanied the temperature controlled transportation segment and, given the solid economic resiliency it has demonstrated throughout the COVID-19 crisis, RRTC Holding will likely continue to play an integral role within the larger cold supply chain industry.
"The market conditions driven by COVID-19 provided unforeseen challenges that required us to find creative ways to drive the due diligence process forward. It was an honor and privilege to work with Roadrunner and A&A's management on the highly strategic divestiture", said Chris Hughes, G2's Managing Director and Transportation & Logistics Practice Leader. "Rena Clark and Emanuel Slater at Laurel Oak were a pleasure to work with and we look forward to tracking their success investing in the cold chain logistics segment."
About Roadrunner Transportation Systems:
Roadrunner Transportation Systems is a leading less-than-truckload provider offering high quality, reliable LTL services under the Roadrunner Freight® brand. Roadrunner's "Ship It Like You Own It" commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets.
About G2 Capital Advisors
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.
Securities offered through Western International Securities. Member FINRA, SIPC. G2 Securities and Western International Securities are separate and unaffiliated entities. This does not constitute an offer to buy or sell securities.
CONTACTS ON THIS DEAL:
Chris Hughes, MD, T&L Practice Leader : T: 404.395.6889 E: chughes@g2cap.com
Chris Casteleyn: Director, T&L : T: 415.531.3138 E: ccasteleyn@g2cap.com
Tess Sheidy: Associate, T&L : T: 248.767.1283 E: tsheidy@g2cap.com
Peter Reed: Vice President : T: 617.366.9254 E: preed@g2cap.com
Ben Crawford: Research Analyst : T: 713.591.7301 E: bcrawford@g2cap.com
Media Relations Inquiries:
Jennifer Johnson, Vice President, Marketing
T: 978.204.8050 E: jjohnson@g2cap.com
AskMuncher
4 years ago
$RRTS Roadrunner Announces Divestitures and Completion of Strategic Transformation into Standalone National LTL Carrier
Press Release | 08/17/2020
Roadrunner Announces Divestitures and Completion of Strategic Transformation into Standalone National LTL Carrier
- Rich Logistics, Integrated Services, Inc. ("ISI") and Roadrunner Temperature Controlled Business Sold
- Paul Svindland, CEO of STG Logistics, Joins Roadrunner Board of Directors
- New Credit Facility with Crystal Financial
- Roadrunner Freight Provides Update on Progress
PR Newswire
DOWNERS GROVE, Ill., Aug. 17, 2020
DOWNERS GROVE, Ill., Aug. 17, 2020 /PRNewswire/ -- Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "company") (Pink: RRTS) today announced the recent closings of three transactions completing Roadrunner's divestiture of all truckload segment businesses. This includes the sale of Rich Logistics and Integrated Services, Inc. ("ISI") to an undisclosed strategic buyer, as well as the sale of Roadrunner Temperature Controlled ("RRTC Holdings, Inc.") to Laurel Oak Capital Partners.
(PRNewsfoto/Roadrunner Transportation Syste)
"With the actions announced today, we have completed our evolution from a troubled roll-up to a focused, national LTL carrier. We are eternally grateful to our team for the long hours and hard work through the prolonged period of transition," said Chris Jamroz, Executive Chairman of Roadrunner.
These divestitures complete a reorganization that involved the sale of Roadrunner Intermodal Services (November 2019), Flatbed (December 2019), Prime Distribution (March 2020) and Stagecoach (April 2020). With the previously announced completion of the spin-off of Ascent Global Logistics, Inc. ("Ascent"), Roadrunner now consists solely of its less-than-truckload operations.
Paul Svindland Joins Board of Directors
Contemporaneous with the Ascent spin-off, Paul Svindland, CEO of STG Logistics, has joined Roadrunner's Board of Directors. Paul most recently served as CEO of Celadon Group, one of North America's largest asset-based truckload carriers. Prior to Celadon, Paul was Chairman and CEO of Farren International, a leading, private equity backed ?atbed trucking company.
Donald C. Brown and Scott L. Dobak remain as independent directors on Roadrunner's Board and Christopher L. Doerr has moved over to the Ascent Global Logistics Board.
"With deep experience in the logistics and transportation sector, Paul will no doubt lend invaluable advice and perspective to our Board and executive leadership team as we enter Roadrunner's next chapter," said Jamroz.
New Credit Facility
Simultaneously with the completion of the Ascent spin-off, Roadrunner's existing senior secured credit facility with BMO Bank Harris, N.A. has been terminated, and the company has entered into a new $45.0 million senior secured asset-based credit facility with Crystal Financial. Roadrunner's divestitures and the spin-off of Ascent have reduced the company's balance sheet liabilities by approximately $400 million, leaving the company with a net cash position.
"We enter this new stage of Roadrunner with the healthiest balance sheet in the company's history," said Frank Hurst, President of Roadrunner Transportation Systems.
Roadrunner Freight Update
Additionally, Frank Hurst and the Roadrunner management team have provided an update on business performance and strategy to date.
"In Q4 2019, we made a deliberate shift in our LTL strategy to focus on customers and drivers, instead of short-term profitability. This change in approach led every team member to commit to a new mantra, Ship It Like You Own It," said Hurst. "It also required operational investments in Q4 2019 and Q1 2020, generating average losses of approximately $4 million per month. However, we dramatically improved transit times and launched a quality campaign that resulted in drastic reductions of delivery exceptions. With clearly improved service levels, our sales have continued to grow and enabled our team to onboard business with several new national accounts. Despite highly depressed volumes in March and April from COVID-19, we were able to return to growth in May and posted our first positive EBITDA month in three years, albeit a very modest level."
Year-to-date, the company has increased the Independent Contractor count by more than 100 drivers and has achieved the lowest 12-month turnover in recent history. The company has also launched a new analytical tool of driver performance metrics called RoadPRO to promote safety, service and operational results within the fleet.
"We plan to continue prioritizing service levels over profitability for the foreseeable future and will take advantage of our strong balance sheet to continuously redeploy profits generated into new technology, continuous lane enhancement and an improved driver and team member experience," Hurst adds. "Our Ship It Like You Own It mantra embodies how we treat customers' freight, and it is gratifying to see that our customers are noticing."
As previously announced, Roadrunner Freight recently opened new facilities in Riverside, CA on July 22 and in Philadelphia on August 3 that offer significant enhancements to the company's nationwide LTL network. A new Chicago service center, with double the capacity of the current Chicago facility, will also open later this month.
"We have seen COVID-driven disruptions in pockets of our network in June and July, despite our focus on quality service. This is partially due to large growth in e-commerce volume, which created facility and staffing constraints in a few markets. Our new facilities are already making a positive impact and any service issues experienced will be rectified in the near future. I appreciate our customers' patience as we make the necessary changes to support these increased volumes of freight," said Hurst.
"We are thrilled to be a standalone business and are grateful to our customers, business partners and team members who have stuck with us through our transformation," continued Hurst. "I am proud to say we have never been as strongly positioned for the future as we are today."
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading less-than-truckload provider offering high quality, reliable LTL services under the Roadrunner Freight® brand. Roadrunner's "Ship It Like You Own It" commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets. For more information, please visit www.rrts.com/freight. For information on joining the Roadrunner Freight team, please contact rr-humanresources@rrts.com. Independent Contractors and Owner Operators interested in driving and lease purchase opportunities can call 800-560-3758 or email ltlrecruiting@rrts.com to learn more.
Safe Harbor Statement
This press release contains forward-looking statements and information relating to, among other things, Roadrunner, its business plans and strategies, its industry and other future events. These statements include those relating to Roadrunner's shift in LTL strategy, its plan to prioritize service levels over profitability, and its ability to rectify service issues." Forward-looking 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, initiatives, or achievements to differ materially from those expressed or implied in any forward-looking statement. 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. For a full discussion of risks and uncertainties, see the section entitled "Risk Factors" in Roadrunner's Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission.
AskMuncher
4 years ago
$RRTS Roadrunner Announces Divestitures and Completion of Strategic Transformation into Standalone National LTL Carrier
Press Release | 08/17/2020
Roadrunner Announces Divestitures and Completion of Strategic Transformation into Standalone National LTL Carrier
- Rich Logistics, Integrated Services, Inc. ("ISI") and Roadrunner Temperature Controlled Business Sold
- Paul Svindland, CEO of STG Logistics, Joins Roadrunner Board of Directors
- New Credit Facility with Crystal Financial
- Roadrunner Freight Provides Update on Progress
PR Newswire
DOWNERS GROVE, Ill., Aug. 17, 2020
DOWNERS GROVE, Ill., Aug. 17, 2020 /PRNewswire/ -- Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "company") (Pink: RRTS) today announced the recent closings of three transactions completing Roadrunner's divestiture of all truckload segment businesses. This includes the sale of Rich Logistics and Integrated Services, Inc. ("ISI") to an undisclosed strategic buyer, as well as the sale of Roadrunner Temperature Controlled ("RRTC Holdings, Inc.") to Laurel Oak Capital Partners.
(PRNewsfoto/Roadrunner Transportation Syste)
"With the actions announced today, we have completed our evolution from a troubled roll-up to a focused, national LTL carrier. We are eternally grateful to our team for the long hours and hard work through the prolonged period of transition," said Chris Jamroz, Executive Chairman of Roadrunner.
These divestitures complete a reorganization that involved the sale of Roadrunner Intermodal Services (November 2019), Flatbed (December 2019), Prime Distribution (March 2020) and Stagecoach (April 2020). With the previously announced completion of the spin-off of Ascent Global Logistics, Inc. ("Ascent"), Roadrunner now consists solely of its less-than-truckload operations.
Paul Svindland Joins Board of Directors
Contemporaneous with the Ascent spin-off, Paul Svindland, CEO of STG Logistics, has joined Roadrunner's Board of Directors. Paul most recently served as CEO of Celadon Group, one of North America's largest asset-based truckload carriers. Prior to Celadon, Paul was Chairman and CEO of Farren International, a leading, private equity backed ?atbed trucking company.
Donald C. Brown and Scott L. Dobak remain as independent directors on Roadrunner's Board and Christopher L. Doerr has moved over to the Ascent Global Logistics Board.
"With deep experience in the logistics and transportation sector, Paul will no doubt lend invaluable advice and perspective to our Board and executive leadership team as we enter Roadrunner's next chapter," said Jamroz.
New Credit Facility
Simultaneously with the completion of the Ascent spin-off, Roadrunner's existing senior secured credit facility with BMO Bank Harris, N.A. has been terminated, and the company has entered into a new $45.0 million senior secured asset-based credit facility with Crystal Financial. Roadrunner's divestitures and the spin-off of Ascent have reduced the company's balance sheet liabilities by approximately $400 million, leaving the company with a net cash position.
"We enter this new stage of Roadrunner with the healthiest balance sheet in the company's history," said Frank Hurst, President of Roadrunner Transportation Systems.
Roadrunner Freight Update
Additionally, Frank Hurst and the Roadrunner management team have provided an update on business performance and strategy to date.
"In Q4 2019, we made a deliberate shift in our LTL strategy to focus on customers and drivers, instead of short-term profitability. This change in approach led every team member to commit to a new mantra, Ship It Like You Own It," said Hurst. "It also required operational investments in Q4 2019 and Q1 2020, generating average losses of approximately $4 million per month. However, we dramatically improved transit times and launched a quality campaign that resulted in drastic reductions of delivery exceptions. With clearly improved service levels, our sales have continued to grow and enabled our team to onboard business with several new national accounts. Despite highly depressed volumes in March and April from COVID-19, we were able to return to growth in May and posted our first positive EBITDA month in three years, albeit a very modest level."
Year-to-date, the company has increased the Independent Contractor count by more than 100 drivers and has achieved the lowest 12-month turnover in recent history. The company has also launched a new analytical tool of driver performance metrics called RoadPRO to promote safety, service and operational results within the fleet.
"We plan to continue prioritizing service levels over profitability for the foreseeable future and will take advantage of our strong balance sheet to continuously redeploy profits generated into new technology, continuous lane enhancement and an improved driver and team member experience," Hurst adds. "Our Ship It Like You Own It mantra embodies how we treat customers' freight, and it is gratifying to see that our customers are noticing."
As previously announced, Roadrunner Freight recently opened new facilities in Riverside, CA on July 22 and in Philadelphia on August 3 that offer significant enhancements to the company's nationwide LTL network. A new Chicago service center, with double the capacity of the current Chicago facility, will also open later this month.
"We have seen COVID-driven disruptions in pockets of our network in June and July, despite our focus on quality service. This is partially due to large growth in e-commerce volume, which created facility and staffing constraints in a few markets. Our new facilities are already making a positive impact and any service issues experienced will be rectified in the near future. I appreciate our customers' patience as we make the necessary changes to support these increased volumes of freight," said Hurst.
"We are thrilled to be a standalone business and are grateful to our customers, business partners and team members who have stuck with us through our transformation," continued Hurst. "I am proud to say we have never been as strongly positioned for the future as we are today."
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading less-than-truckload provider offering high quality, reliable LTL services under the Roadrunner Freight® brand. Roadrunner's "Ship It Like You Own It" commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets. For more information, please visit www.rrts.com/freight. For information on joining the Roadrunner Freight team, please contact rr-humanresources@rrts.com. Independent Contractors and Owner Operators interested in driving and lease purchase opportunities can call 800-560-3758 or email ltlrecruiting@rrts.com to learn more.
Safe Harbor Statement
This press release contains forward-looking statements and information relating to, among other things, Roadrunner, its business plans and strategies, its industry and other future events. These statements include those relating to Roadrunner's shift in LTL strategy, its plan to prioritize service levels over profitability, and its ability to rectify service issues." Forward-looking 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, initiatives, or achievements to differ materially from those expressed or implied in any forward-looking statement. 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. For a full discussion of risks and uncertainties, see the section entitled "Risk Factors" in Roadrunner's Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission.
AskMuncher
4 years ago
$RRTS Roadrunner Transportation Systems Completes Ascent Global Logistics Spin-Off
Press Release | 08/07/2020
Roadrunner Transportation Systems Completes Ascent Global Logistics Spin-Off
PR Newswire
DOWNERS GROVE, Ill., Aug. 7, 2020
DOWNERS GROVE, Ill., Aug. 7, 2020 /PRNewswire/ -- Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "company") (Pink: RRTS) announced today that the spin-off of its Ascent Global Logistics business has been completed. The spin-off creates two independent companies: Roadrunner Transportation Systems, Inc. - a national less-than-truckload (LTL) carrier - and Ascent Global Logistics, Inc. ("Ascent") - a diversified global logistics provider.
(PRNewsfoto/Roadrunner Transportation Syste)
Roadrunner and Ascent Executive Chairman Chris Jamroz said, "The completion of the spin-off of our Ascent Global Logistics business positions us to be entirely focused on the success of our Roadrunner Freight national less-than-truckload network. We also believe Ascent will thrive as a standalone logistics platform. Thank you to both the Ascent and Roadrunner teams who worked hard to complete this transaction."
The spin-off was effected by way of a pro rata distribution (the "Distribution") on August 7, 2020 (the "Distribution Date") of all of the issued and outstanding shares of Ascent common stock to the stockholders of record of Roadrunner as of the close of business on July 31, 2020, the record date for the Distribution (the "Record Date"). Each Roadrunner stockholder of record is receiving one share of Ascent common stock, $0.01 par value, for every one share of Roadrunner common stock, $0.01 par value, held by such stockholder as of the close of business on the Record Date. Fractional shares of Ascent were not distributed.
Roadrunner common stock will continue to trade on the Pink Open Market under the trading symbol "RRTS." There will be no trading market for Ascent common stock, and such shares are subject to significant transfer restrictions. An Information Statement, which contains additional information about the transactions, including a detailed description of the transfer restrictions, is being furnished to registered stockholders of Roadrunner as of the Record Date and is being posted to the company's website.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading less-than-truckload provider offering high quality, reliable LTL services under the Roadrunner Freight® brand. Roadrunner's "Ship It Like You Own It" commitment guides the company to provide unparalleled service and reliable LTL solutions for customers. With 31 service centers and strategic partnerships across the country, Roadrunner delivers expansive long haul, regional and next day service in all major US markets. For more information, please visit www.rrts.com.
About Ascent Global Logistics, Inc.
As a leading transportation and supply chain solutions provider, Ascent Global Logistics focuses on uncomplicating logistics. Through its Domestic, International and On-Demand offerings, Ascent helps its clients simplify supply chain management by providing customized solutions, premium customer service and state-of-the-art technology. For more information, please visit the Ascent Global Logistics website, www.ascentgl.com.
Safe Harbor Statement
This press release may contain forward-looking statements and information relating to, among other things, Roadrunner, Ascent, their respective business plans and strategies, their respective industries and other future events. 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 and Ascent's current assumptions, expectations, and beliefs and are subject to substantial risks, estimates, assumptions, uncertainties and changes in circumstances that may cause Roadrunner or Ascent's actual results, performance, initiatives, or achievements, to differ materially from those expressed or implied in any forward-looking statement. 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, neither Roadrunner nor Ascent assumes any obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date hereof except as required by law. For a full discussion of risks and uncertainties, see the section entitled "Risk Factors" in Roadrunner's Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission, and the section entitled "Risk Factors" in the Information Statement.
AskMuncher
4 years ago
$RRTS Roadrunner Transportation Systems Announces Planned Separation of Ascent Global Logistics
Press Release | 07/27/2020
Roadrunner Transportation Systems Announces Planned Separation of Ascent Global Logistics
Roadrunner Transportation Systems transforming into two independent companies: Roadrunner Freight, a leading national LTL carrier, and Ascent Global Logistics, a diversified global logistics provider
PR Newswire
DOWNERS GROVE, Ill., July 27, 2020
DOWNERS GROVE, Ill., July 27, 2020 /PRNewswire/ -- Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "company") (Pink: RRTS) today announced that the company intends to effectuate a spin-off of Ascent Global Logistics as a stock dividend to its stockholders. The proposed spin-off remains subject to final approval by Roadrunner's Board of Directors, and certain tax and legal considerations. The proposed spin-off, which is expected to be completed in August 2020, would create two independent companies: Roadrunner Transportation Systems, Inc. (doing business as Roadrunner Freight and encompassing the less-than-truckload and truckload businesses) and privately-held Ascent Global Logistics, Inc. (encompassing Ascent Domestic, Ascent International and Ascent On-Demand).
(PRNewsfoto/Roadrunner Transportation Syste)
"With the actions announced today, we are left with two companies positioned to deliver significant value for their customers and investors," said Chris Jamroz, Executive Chairman of Roadrunner Transportation Systems.
Strategic Rationale
Roadrunner's Board of Directors identified a spin-off of Ascent as a significant opportunity to create shareholder value. Benefits include (1) structuring each business to take advantage of unique growth opportunities in its respective end market; (2) tailoring the business model to its specific long-term strategies; and (3) aligning external financial resources, such as access to capital markets, and insurance factors, with the unique nature of each business. Additionally, it is expected that corporate spend will be reduced between the two entities by collapsing the Roadrunner Transportation Systems corporate function into the operations of Roadrunner Freight and Ascent Global Logistics.
Ascent Global Logistics
Ascent will be headquartered in Belleville, Michigan and will continue as a market leader in domestic freight management, international freight forwarding and expedited transportation services on the ground and in the air. Ascent has also executed a term sheet that contemplates a new senior secured revolving credit facility.
Upon successful completion of the spin-off, Tom Stenglein will become President of Ascent Global Logistics, Inc. Mr. Stenglein is currently the President of Ascent On-Demand and Chief Financial Officer of Ascent.
Roadrunner Financing
Contemporaneously with the completion of the spin-off, Roadrunner's existing senior secured credit facility with BMO Bank Harris, N.A. will be terminated. Although the capital and banking structure of Roadrunner (post-spin-off) has not yet been finalized and specific terms remain to be determined, it is expected that Roadrunner will be capitalized following the spin-off with zero debt and sufficient liquidity and flexibility to pursue future growth opportunities.
Upon successful completion of the spin-off, Frank Hurst will become President of Roadrunner Transportation Systems, Inc. Mr. Hurst has served as President of Roadrunner Freight since 2017.
Transaction Details and Next Steps
The transaction is currently expected to be completed in August 2020, subject to final approval by Roadrunner's Board of Directors, and certain tax and legal considerations.
In connection with the transaction, Roadrunner will provide to its stockholders and make available on its website an Information Statement that will contain additional information about Ascent and the transaction. Additionally, the equity of Ascent is not expected to be publicly traded.
Lincoln International is serving as financial advisor to Roadrunner and Greenberg Traurig, LLP is serving as legal counsel.
American Stock Transfer & Trust Company, LLC, Roadrunner's transfer agent, will act as the distribution agent for the spin-off.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right transportation and asset-light logistics provider offering a full suite of services and solutions under the Roadrunner Freight®, Ascent On-Demand® and Ascent Global Logistics® brands. The Roadrunner brand offers less-than-truckload and over-the-road truckload and services. Ascent On-Demand offers premium mission critical air and ground logistics 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 may contain forward-looking statements and information relating to, among other things, Roadrunner, Ascent Global Logistics, their respective business plans and strategies, their respective industries and other future events. 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, initiatives, or achievements, to differ materially from those expressed or implied in any forward-looking statement. 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 except as required by law. For a full discussion of risks and uncertainties, see the section entitled "Risk Factors" in Roadrunner's Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission.
Enterprising Investor
4 years ago
Roadrunner Announces Agreement to Sell its Prime Distribution Services Business to C.H. Robinson (1/28/20)
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, today announced it has signed a definitive agreement for the sale of its Prime Distribution Services business to C.H. Robinson Worldwide, Inc. (Nasdaq: CHRW) for $225 million in cash, subject to customary purchase price adjustments. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close by the end of the first quarter.
Prime Distribution Services, headquartered in Plainfield, Indiana, provides a comprehensive suite of retail consolidation solutions, with five food grade warehouse facilities strategically located across the nation and a team of retail supply chain experts dedicated to helping clients achieve compliance with large U.S. retailer delivery and in-stock requirements. The business had revenue of $108.7 million for the year ended December 31, 2019 and is part of the company’s Ascent Global Logistics segment.
“The divestiture of Prime Distribution Services is a unique opportunity for us to significantly improve our balance sheet by paying off all borrowings under our ABL and Term Loan Credit Facilities. We believe we are well positioned to execute our strategy of simplifying our portfolio by investing in our remaining Ascent Global Logistics, Active On-Demand and asset light LTL segments. We also believe that our stronger balance sheet will enable us to pursue additional value-creation opportunities, such as incremental organic business expansion and tuck-in acquisitions. We remain committed to improving operating performance, generating attractive returns on invested capital and building long-term shareholder value,” said Curt Stoelting, Chief Executive Officer of Roadrunner.
“We have great respect for C.H. Robinson, its management team and employees. We know the C.H. Robinson team shares our commitment to customers and is dedicated to providing quality logistics services that help customers operate and grow their business,” added Stoelting.
Oppenheimer & Co. Inc. acted as financial advisor and Debevoise & Plimpton LLC served as legal advisor to Roadrunner on the transaction.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right transportation and asset-light logistics provider offering a full suite of services and solutions under the Roadrunner®, Active On-Demand® and Ascent Global Logistics® brands. The Roadrunner brand offers less-than-truckload and over-the-road truckload services. Active On-Demand offers premium mission critical air and ground logistics solutions. Ascent Global Logistics offers domestic freight management, international freight forwarding and customs brokerage. For more information, please visit Roadrunner’s websites, www.rrts.com and www.ascentgl.com.
About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, C.H. Robinson is one of the world’s largest logistics platforms. For more information, visit www.chrobinson.com (Nasdaq: CHRW).
https://www.businesswire.com/news/home/20200128005676/en/%20Reputation%20Partners%20Marilyn%20Vollrath%20414-376-8834%20ir@rrts.com
Enterprising Investor
5 years ago
Roadrunner Announces Plans to Downsize its Dry Van Business (9/30/19)
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, today announced it will downsize its unprofitable dry van business, which is part of the company’s Truckload segment.
The downsizing includes reducing dry van company tractor and trailer fleets by over 50%, closing five terminal locations and eliminating approximately 450 positions. Employees subject to the workforce reduction will receive either severance or a 60-day notice. In conjunction with the downsizing activities, the company expects to incur one-time pretax operations restructuring costs of between $12 million and $16 million, excluding the gain or loss on the sale of equipment and the write-down of assets.
The downsizing activities are expected to reduce lease obligations and debt and be substantially complete by year-end 2019, with workforce reductions effective over the next 60 to 90 days. The reduction in force represents approximately 10% of the company’s total workforce.
“The decision to downsize the dry van business is a significant step in executing our strategy to emphasize our value-added logistics and asset-light LTL segments and increase our returns on invested capital. We factored in the impact of this downsizing as part of the strategic review of our Truckload segment. We believe downsizing the dry van business will improve operating margins and cash flow, reduce lease obligations and debt, improve internal controls and allow greater focus on the significant value-creation opportunities within our other businesses,” said Curt Stoelting, Chief Executive Officer of Roadrunner.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right transportation and asset-light logistics provider offering a full suite of services and solutions under the Roadrunner®, Active On-Demand® and Ascent Global Logistics® brands. The Roadrunner brand offers less-than-truckload, over-the-road truckload and intermodal services. Active On-Demand offers premium mission critical air and ground logistics 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.
https://www.businesswire.com/news/home/20190930005775/en/Roadrunner-Announces-Plans-Downsize-Dry-Van-Business/?feedref=JjAwJuNHiystnCoBq_hl-fqXyBvmekC3Xq1G1wQ7hjMFbZM1ntlKeK-8bUzJqFSVSfe41V1BKA-b6v2ZVrSSNs-dUYKiDvY7XniNSqv88QcY1Ge_vf9QIMZ4alzIf_0HlyE0C4hZhHVlTvKnn0d0vQ==
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