Daseke, Inc. (NASDAQ: DSKE) (or the “Company”), the largest
flatbed, specialized transportation and logistics solutions company
in North America, today reported financial results for the first
quarter ended March 31, 2019.
First Quarter 2019 Summary vs. First
Quarter 2018
- Revenue increased 32% to $433.0 million (up 7% on an
Acquisition-Adjusted2 basis).
- Net loss attributable to common stockholders was $10.5 million,
or $0.16 per share, compared to net loss attributable to common
stockholders of $2.0 million, or $0.04 per share.
- Adjusted Net Income2 was $1.8 million, or $0.03 per share,
compared to $5.6 million, or $0.10 per share.
- Adjusted EBITDA2 increased 24% to $43.8 million (up 5% on an
Acquisition-Adjusted2 basis).
- Acquisition-Adjusted EBITDA2 for the segments (excluding
corporate) increased 18%.
Management Commentary
“Our results in the first quarter reflect the
successful start to our plan as we drove 7% Acquisition-Adjusted
Revenue2 growth and generated $37.1 million in Free Cash Flow1,”
said Don Daseke, chairman and CEO. “Excluding our corporate
segment, which included investments made to support our strategic
growth initiatives, our Flatbed and Specialized segments grew
Acquisition-Adjusted EBITDA2 by a combined 18%, outpacing our
Acquisition-Adjusted Revenue2 growth.
“We experienced strong organic growth in our
Specialized segment, led by our wind business and large
construction project related work. Like the rest of our peers in
our Flatbed segment, we experienced headwinds from severe weather
conditions and lower demand. Given our strong results, I am
confident in our ability to continue to generate significant Free
Cash Flow for the remainder of 2019, which we expect to use to
de-lever our balance sheet, better positioning us to capitalize on
our long-term growth opportunities.”
First Quarter 2019 Financial
Results
Revenue in the first quarter of 2019 increased
32% to $433.0 million compared to $327.6 million in the year-ago
quarter. Revenue on an Acquisition-Adjusted2 basis was up 7% to
$433.0 million compared to $403.7 million in the year ago
quarter.
Operating income in the first quarter of 2019
was $0.7 million compared to $7.7 million in the year-ago quarter.
Included in operating expenses for the first quarter of 2019 is
$6.8 million of depreciation expense related to the net impact of
the step-up in basis of acquired assets and $4.3 million for the
amortization of intangibles, for a total non-cash impact of $11.1
million ($6.0 million in Q1 2018). Additionally, operating income
was impacted by recent investments made in the corporate function
to drive strategic growth initiatives, including the launch of
Daseke Fleet Services, Daseke Logistics, and new C-level management
hires. When comparing corporate costs to the year ago
quarter, timing differences caused certain accruals to be
lower than normal in Q1 of 2018.
Net loss attributable to common stockholders for
the first quarter of 2019 was $10.5 million, or $0.16 per share,
compared to a net loss attributable to common stockholders of $2.0
million, or $0.04 per share, in the year-ago quarter. Adjusted Net
Income2 was $1.8 million, compared to Adjusted Net Income2 of $5.6
million in the first quarter of 2018.
Adjusted EBITDA2 in the first quarter of 2019
increased 24% to $43.8 million compared to $35.2 million in the
year-ago quarter.
Acquisition-Adjusted EBITDA2 in the first
quarter of 2019 increased 5% to $43.8 million compared to $41.8
million to the first quarter of 2018.
Segment Results
Specialized Solutions - Specialized Solutions
revenue3 in the first quarter of 2019 increased 46% to $269.7
million compared to $184.9 million in the year-ago quarter.
Operating income in the first quarter of 2019 was $7.8 million
compared to $5.1 million in the year-ago quarter. Adjusted EBITDA2
in the first quarter of 2019 increased 45% to $35.4 million
compared to $24.4 million in the year-ago quarter. Rate per mile in
the first quarter of 2019 was up 35% to $3.61; revenue per tractor
increased 13% to $60,000.
Flatbed Solutions - Flatbed Solutions revenue3
in the first quarter of 2019 increased 16% to $167.9 million
compared to $145.0 million in the year-ago quarter. Operating
income in the first quarter of 2019 was $3.3 million compared to
$7.0 million in the year-ago quarter. Adjusted EBITDA2 in the first
quarter of 2019 increased to $18.3 million compared to $14.6
million in the year-ago quarter. Rate per mile in the first quarter
of 2019 was up 8% to $1.96; revenue per tractor increased 3% to
$41,600.
Balance Sheet and Free Cash
Flow
At March 31, 2019, Daseke had cash and
equivalents of $62.4 million, $87.8 million available under its
revolving credit facility, for total available liquidity of $150.2
million. Net debt was $648.4 million. This compares to cash and
equivalents of $46.0 million, $87.8 million available under its
revolving credit facility, total available liquidity of $133.8
million, and net debt of $656.4 million at December 31, 2018.
Cash from operating activities was $36.4
million, cash expenditures were $3.9 million, cash proceeds from
the sale of excess capital assets was $4.6 million, resulting in
Free Cash Flow1 of $37.1 million for the quarter. This compares to
cash from operating activities of $14.2 million, cash expenditures
were $7.6 million, cash proceeds from the sale of excess capital
assets was $5.9 million, resulting in Free Cash Flow1 of $12.5
million in the first quarter of 2018.
__________________________
1 Defined as net cash provided by operating activities less
purchases of property and equipment, plus proceeds from sale of
property and equipment as such amounts are shown on the face of the
Consolidated Statement of Cash Flows.2 See Non-GAAP Measures for
more information regarding Acquisition-Adjusted measures, Adjusted
EBITDA, and Adjusted Net Income (Loss).3 Segment revenues are prior
to eliminations.
Conference Call
Daseke will hold a conference call today at
11:00 a.m. Eastern time to discuss its first quarter 2019
results.
Date: Monday, May 6, 2019 Time: 11:00 a.m.
Eastern time (10:00 a.m. Central time) Toll-free dial-in number:
1-855-242-9918International dial-in number:
1-414-238-9803Conference ID: 6350358
Please call the conference telephone number 5-10
minutes prior to the start time. An operator will register your
name and organization. If you have any difficulty connecting with
the conference call, please contact Gateway Investor Relations
at 1-949-574-3860.
The conference call will be broadcast live and
available for replay via the investor relations section of the
company’s website at investor.daseke.com. Presentation materials
will be posted at the time of the call at investor.daseke.com as
well.
A replay of the conference call will be
available after 2:00 p.m. Eastern time today through May 20,
2019.
Toll-free replay number:
1-855-859-2056International replay number: 1-404-537-3406Replay ID:
6350358
About Daseke, Inc.
Daseke, Inc. is the largest flatbed and
specialized transportation and logistics company in North America.
Daseke offers comprehensive, best-in-class services to many of the
world’s most respected industrial shippers through experienced
people, a fleet of approximately 6,000 tractors and 13,000 flatbed
and specialized trailers, and a million-plus square feet of
industrial warehousing space. For more information, please visit
www.daseke.com.
Use of Non-GAAP Measures
This news release includes non‐GAAP financial
measures for Daseke and its operating segments, including Adjusted
EBITDA, Adjusted Net Income (Loss), Free Cash Flow and
Acquisition-Adjusted, revenue, net loss and EBITDA
(Acquisition-Adjusted Measures). Other companies in Daseke’s
industry may define these non‐GAAP measures differently than Daseke
does, and as a result, it may be difficult to use these non‐GAAP
measures to compare the performance of those companies to Daseke’s
performance. Daseke’s management does not consider these non‐GAAP
measures in isolation or as an alternative to financial measures
determined in accordance with GAAP and instead relies primarily on
Daseke’s GAAP results and uses non‐GAAP measures
supplementally.
Daseke defines Adjusted EBITDA as net income
(loss) plus (i) depreciation and amortization,
(ii) interest expense, including other fees and charges
associated with indebtedness, net of interest income,
(iii) income taxes, (iv) acquisition-related transaction
expenses (including due diligence costs, legal, accounting and
other advisory fees and costs, retention and severance payments and
financing fees and expenses), (v) non-cash impairment, and,
(vi) non-cash stock and equity-compensation expense.
Daseke defines Adjusted Net Income (Loss) as net
income (loss) adjusted for acquisition or business combination
related transaction expenses, non-cash impairments, amortization of
intangible assets, the net impact of step-up in basis of acquired
assets and unusual or non-regularly recurring expenses or
recoveries.
Daseke defines Acquisition-Adjusted Measures as
(a) our actual revenue, net income (loss) or Adjusted EBITDA, as
applicable, for the applicable measurement period and (b) the
actual revenue, net income (loss) or Adjusted EBITDA, as
applicable, of each company acquired (excluding the Kelsey Trail
acquisition), as though those acquisitions were completed on the
first date of the applicable measurement period, based on the
company’s internal financial statements for the period prior to
Daseke’s acquisition. These adjusted amounts (i) have not been
prepared in accordance with the requirements of Regulation S‐X or
any other securities laws relating to the presentation of pro forma
financial information, (ii) do not reflect any pro forma
adjustments, (iii) are presented for informational purposes only,
(iv) are not necessarily indicative of what our results of
operations would have been had such acquisitions been completed on
the first date of the applicable measurement period, and (v) do not
purport to project our future operating results.
Daseke’s board of directors and executive
management team use Adjusted EBITDA, Adjusted Net Income (Loss),
Free Cash Flow and Acquisition-Adjusted, revenue, net loss and
EBITDA (Acquisition-Adjusted Measures) as key measures of its
performance and for business planning.
Adjusted EBITDA, Adjusted Net Income (Loss),
Free Cash Flow and Acquisition-Adjusted, revenue, net loss and
EBITDA (Acquisition-Adjusted Measures) assist them in comparing
Daseke’s operating performance over various reporting periods on a
consistent basis because they remove from Daseke’s operating
results the impact of items that, in their opinion, do not reflect
Daseke’s core operating performance. Adjusted EBITDA, Adjusted Net
Income (Loss) and Acquisition Adjusted Measures also allow Daseke
to more effectively evaluate its operating performance by allowing
it to compare the results of operations against its peers without
regard to its or its peers’ financing method or capital
structure.
Daseke believes its presentation of Adjusted
EBITDA, Adjusted Net Income (Loss), Free Cash Flow and
Acquisition-Adjusted, revenue, net loss and EBITDA
(Acquisition-Adjusted Measures) is useful because they provide
investors and industry analysts the same information that Daseke
uses internally for purposes of assessing its core operating
performance. However, Adjusted EBITDA, Adjusted Net Income (Loss),
Free Cash Flow and Acquisition-Adjusted, revenue, net loss and
EBITDA (Acquisition-Adjusted Measures) are not substitutes for, or
more meaningful than, net income (loss), cash flows from operating
activities, operating income or any other measure prescribed by
GAAP, and there are limitations to using non‐GAAP measures such as
Adjusted EBITDA, Adjusted Net Income (Loss), Free Cash Flow and
Acquisition-Adjusted, revenue, net loss and EBITDA
(Acquisition-Adjusted Measures). Certain items excluded from
Adjusted EBITDA, Adjusted Net Income (Loss), Free Cash Flow and
Acquisition-Adjusted, revenue, net loss and EBITDA
(Acquisition-Adjusted Measures) are significant components in
understanding and assessing a company’s financial performance, such
as a company’s cost of capital, tax structure and the historic
costs of depreciable assets. Adjusted EBITDA, Adjusted Net Income
(Loss), Free Cash Flow and Acquisition-Adjusted, revenue, net loss
and EBITDA (Acquisition-Adjusted Measures) should not be considered
measures of the income generated by Daseke’s business or
discretionary cash available to it to invest in the growth of its
business.
You can find the reconciliation of these
non‐GAAP measures to the nearest comparable GAAP measures in the
Reconciliation of Non‐GAAP Measures tables below. We have not
reconciled non‐GAAP forward looking measures to their corresponding
GAAP measures because certain items that impact these measures are
unavailable or cannot be reasonably predicted without unreasonable
efforts.
Forward‐Looking Statements
This news release includes “forward‐looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward‐looking statements may be identified by the use of words
such as “estimate,” “plan,” “project,” “forecast,” “intend,”
“expect,” “anticipate,” “believe,” “seek,” “target,” “will” or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. Projected
financial information, including our guidance outlook, are
forward-looking statements. These forward‐looking statements are
based on current information and expectations, forecasts and
assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward‐looking statements should not
be relied upon as representing Daseke’s views as of any subsequent
date, and we do not undertake any obligation to update
forward‐looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. You should not place undue reliance on
these forward‐looking statements. As a result of a number of known
and unknown risks and uncertainties, actual results or performance
may be materially different from those expressed or implied by
these forward‐looking statements. Some factors that could cause
actual results to differ include, but are not limited to, general
economic and business risks (such as downturns in customers’
business cycles and disruptions in capital and credit markets),
driver shortages and increases in driver compensation or
owner‐operator contracted rates, loss of senior management or key
operating personnel, Daseke’s ability to recognize the anticipated
benefits of recent acquisitions, including the Aveda transaction,
its ability to identify and execute future acquisitions
successfully, seasonality and the impact of weather and other
catastrophic events, fluctuations in the price or availability of
diesel fuel, increased prices for, or decreases in the availability
of, new revenue equipment and decreases in the value of used
revenue equipment, Daseke’s ability to generate sufficient cash to
service all of its indebtedness, restrictions in its existing and
future debt agreements, increases in interest rates, changes in
existing laws or regulations, including environmental and worker
health safety laws and regulations and those relating to tax rates
or taxes in general, the impact of governmental regulations and
other governmental actions related to Daseke and its operations,
litigation and governmental proceedings, and insurance and claims
expenses. For additional information regarding known material
factors that could cause our actual results to differ from those
expressed in forward‐looking statements, please see Daseke’s
filings with the Securities and Exchange Commission, available at
www.sec.gov, including those described under “Risk Factors” In its
annual report on Form 10-K.
Investor Relations:
Gateway Investor RelationsCody SlachTel
1-949-574-3860DSKE@gatewayir.com
Daseke, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(Unaudited) |
(In millions, except share data) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
62.4 |
|
|
$ |
46.0 |
|
Accounts receivable, net |
|
|
218.1 |
|
|
|
209.2 |
|
Drivers’ advances and other receivables |
|
|
8.3 |
|
|
|
5.5 |
|
Current portion of net investment in sales-type leases |
|
|
— |
|
|
|
16.2 |
|
Parts supplies |
|
|
4.9 |
|
|
|
4.9 |
|
Prepaid and other current assets |
|
|
19.6 |
|
|
|
26.3 |
|
Total current assets |
|
|
313.3 |
|
|
|
308.1 |
|
Property and equipment, net |
|
|
598.8 |
|
|
|
572.7 |
|
Intangible assets, net |
|
|
204.7 |
|
|
|
208.8 |
|
Goodwill |
|
|
258.5 |
|
|
|
258.4 |
|
Right-of-use assets |
|
|
98.5 |
|
|
|
— |
|
Other long-term assets |
|
|
26.0 |
|
|
|
42.9 |
|
Total assets |
|
$ |
1,499.8 |
|
|
$ |
1,390.9 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
29.7 |
|
|
$ |
22.2 |
|
Accrued expenses and other liabilities |
|
|
48.1 |
|
|
|
46.5 |
|
Accrued payroll, benefits and related taxes |
|
|
25.5 |
|
|
|
21.7 |
|
Accrued insurance and claims |
|
|
17.5 |
|
|
|
18.1 |
|
Current portion of long-term debt |
|
|
64.1 |
|
|
|
63.5 |
|
Other current liabilities |
|
|
48.4 |
|
|
|
21.9 |
|
Total current liabilities |
|
|
233.3 |
|
|
|
193.9 |
|
Long-term debt, net of current
portion |
|
|
631.2 |
|
|
|
622.7 |
|
Deferred tax liabilities |
|
|
125.4 |
|
|
|
126.8 |
|
Other long-term liabilities |
|
|
72.3 |
|
|
|
0.5 |
|
Total liabilities |
|
|
1,062.2 |
|
|
|
943.9 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Series A convertible preferred stock, $0.0001 par value; 10,000,000
shares authorized; 650,000 shares issued with liquidation
preference of $65.0 at March 31, 2019 and December 31, 2018 |
|
|
65.0 |
|
|
|
65.0 |
|
Common stock, par value $0.0001 per share; 250,000,000 shares
authorized, 64,469,672 and 64,455,174 shares issued and
outstanding at March 31, 2019 and December 31, 2018,
respectively |
|
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
|
434.9 |
|
|
|
433.9 |
|
Accumulated deficit |
|
|
(61.5 |
) |
|
|
(51.0 |
) |
Accumulated other comprehensive loss |
|
|
(0.8 |
) |
|
|
(0.9 |
) |
Total stockholders’ equity |
|
|
437.6 |
|
|
|
447.0 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,499.8 |
|
|
$ |
1,390.9 |
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Consolidated Statements of Operations and Comprehensive
Loss |
(Unaudited) |
(In millions, except share and per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2019 |
|
2018 |
Revenues: |
|
|
|
|
|
Company freight |
$ |
206.2 |
|
|
$ |
144.6 |
|
Owner operator freight |
|
111.0 |
|
|
|
95.5 |
|
Brokerage |
|
71.4 |
|
|
|
46.1 |
|
Logistics |
|
12.4 |
|
|
|
10.7 |
|
Fuel surcharge |
|
32.0 |
|
|
|
30.7 |
|
Total revenue |
|
433.0 |
|
|
|
327.6 |
|
Operating expenses: |
|
|
|
|
|
Salaries, wages and employee benefits |
|
119.1 |
|
|
|
82.3 |
|
Fuel |
|
35.0 |
|
|
|
33.4 |
|
Operations and maintenance |
|
54.8 |
|
|
|
34.6 |
|
Communications |
|
1.0 |
|
|
|
0.7 |
|
Purchased freight |
|
146.6 |
|
|
|
117.7 |
|
Administrative expenses |
|
16.1 |
|
|
|
12.2 |
|
Sales and marketing |
|
1.2 |
|
|
|
0.6 |
|
Taxes and licenses |
|
4.9 |
|
|
|
3.7 |
|
Insurance and claims |
|
12.5 |
|
|
|
9.2 |
|
Acquisition-related transaction expenses |
|
— |
|
|
|
0.4 |
|
Depreciation and amortization |
|
41.5 |
|
|
|
25.2 |
|
Gain on disposition of property and equipment |
|
(0.4 |
) |
|
|
(0.1 |
) |
Total operating expenses |
|
432.3 |
|
|
|
319.9 |
|
Income from operations |
|
0.7 |
|
|
|
7.7 |
|
Other expense (income): |
|
|
|
|
|
Interest income |
|
(0.2 |
) |
|
|
(0.4 |
) |
Interest expense |
|
12.7 |
|
|
|
10.3 |
|
Other |
|
(0.6 |
) |
|
|
(1.0 |
) |
Total other expense |
|
11.9 |
|
|
|
8.9 |
|
Loss before benefit for income
taxes |
|
(11.2 |
) |
|
|
(1.2 |
) |
Benefit for income taxes |
|
(1.9 |
) |
|
|
(0.4 |
) |
Net loss |
|
(9.3 |
) |
|
|
(0.8 |
) |
Other comprehensive loss: |
|
|
|
|
|
Foreign currency translation adjustments, net of tax |
|
0.1 |
|
|
|
(0.3 |
) |
Comprehensive loss |
|
(9.2 |
) |
|
|
(1.1 |
) |
Net loss |
|
(9.3 |
) |
|
|
(0.8 |
) |
Less dividends to Series A convertible preferred stockholders |
|
(1.2 |
) |
|
|
(1.2 |
) |
Net loss attributable to common stockholders |
$ |
(10.5 |
) |
|
$ |
(2.0 |
) |
Net loss per common share: |
|
|
|
|
|
Basic |
$ |
(0.16 |
) |
|
$ |
(0.04 |
) |
Diluted |
$ |
(0.16 |
) |
|
$ |
(0.04 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
Basic |
|
64,469,642 |
|
|
|
54,315,736 |
|
Diluted |
|
64,469,642 |
|
|
|
54,315,736 |
|
Dividends declared per Series A
convertible preferred share |
$ |
1.91 |
|
|
$ |
1.91 |
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Specialized
Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company freight |
|
$ |
153.9 |
|
|
57.1 |
|
$ |
100.8 |
|
|
54.5 |
|
$ |
53.1 |
|
52.7 |
Owner operator freight |
|
|
43.8 |
|
|
16.2 |
|
|
36.7 |
|
|
19.8 |
|
|
7.1 |
|
19.3 |
Brokerage |
|
|
46.1 |
|
|
17.1 |
|
|
23.2 |
|
|
12.5 |
|
|
22.9 |
|
98.7 |
Logistics |
|
|
11.7 |
|
|
4.3 |
|
|
10.0 |
|
|
5.4 |
|
|
1.7 |
|
17.0 |
Fuel surcharge |
|
|
14.2 |
|
|
5.3 |
|
|
14.2 |
|
|
7.7 |
|
|
— |
|
- |
Total revenue |
|
|
269.7 |
|
|
100.0 |
|
|
184.9 |
|
|
100.0 |
|
|
84.8 |
|
45.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
261.9 |
|
|
97.1 |
|
|
179.8 |
|
|
97.2 |
|
|
82.1 |
|
45.7 |
Operating ratio |
|
|
97.1 |
% |
|
|
|
|
97.2 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
93.8 |
% |
|
|
|
|
94.4 |
% |
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS |
|
$ |
7.8 |
|
|
2.9 |
|
$ |
5.1 |
|
|
2.8 |
|
$ |
2.7 |
|
52.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total miles (in
millions)(2) |
|
|
54.7 |
|
|
|
|
|
51.5 |
|
|
|
|
|
3.2 |
|
6.2 |
Company-operated tractors, at
quarter-end |
|
|
2,506 |
|
|
|
|
|
2,021 |
|
|
|
|
|
485 |
|
24.0 |
Owner-operated tractors, at
quarter-end |
|
|
663 |
|
|
|
|
|
552 |
|
|
|
|
|
111 |
|
20.1 |
Number of trailers, at
quarter-end |
|
|
8,472 |
|
|
|
|
|
7,147 |
|
|
|
|
|
1,325 |
|
18.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the quarter |
|
|
2,629 |
|
|
|
|
|
2,032 |
|
|
|
|
|
597 |
|
29.4 |
Owner-operated tractors,
average for the quarter |
|
|
669 |
|
|
|
|
|
553 |
|
|
|
|
|
116 |
|
21.0 |
|
|
|
3,298 |
|
|
|
|
|
2,585 |
|
|
|
|
|
713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* indicates not meaningful. |
(1) Includes intersegment revenues and expenses, as applicable,
which are eliminated in the Company’s consolidated results. |
(2) Total miles includes company and owner operator and excludes
brokerage. |
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Flatbed Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company frieight |
|
$ |
55.2 |
|
|
32.9 |
|
$ |
45.2 |
|
|
31.2 |
|
$ |
10.0 |
|
|
22.1 |
|
Owner operator freight |
|
|
68.5 |
|
|
40.8 |
|
|
59.3 |
|
|
40.9 |
|
|
9.2 |
|
|
15.5 |
|
Brokerage |
|
|
25.3 |
|
|
15.1 |
|
|
23.0 |
|
|
15.9 |
|
|
2.3 |
|
|
10.0 |
|
Logistics |
|
|
0.7 |
|
|
0.4 |
|
|
0.7 |
|
|
0.5 |
|
|
— |
|
|
- |
|
Fuel surcharge |
|
|
18.2 |
|
|
10.8 |
|
|
16.8 |
|
|
11.6 |
|
|
1.4 |
|
|
8.3 |
|
Total revenue |
|
|
167.9 |
|
|
100.0 |
|
|
145.0 |
|
|
100.0 |
|
|
22.9 |
|
|
15.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
164.6 |
|
|
98.0 |
|
|
138.0 |
|
|
95.2 |
|
|
26.6 |
|
|
19.3 |
|
Operating ratio |
|
|
98.0 |
% |
|
|
|
|
95.2 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
96.7 |
% |
|
|
|
|
94.6 |
% |
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS |
|
$ |
3.3 |
|
|
2.0 |
|
$ |
7.0 |
|
|
4.8 |
|
$ |
(3.7 |
) |
|
(52.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total miles (in
millions)(2) |
|
|
63.1 |
|
|
|
|
|
57.9 |
|
|
|
|
|
5 |
|
|
9.0 |
|
Company-operated tractors, at
quarter-end |
|
|
1,350 |
|
|
|
|
|
1,128 |
|
|
|
|
|
222 |
|
|
19.7 |
|
Owner-operated tractors, at
quarter-end |
|
|
1,622 |
|
|
|
|
|
1,510 |
|
|
|
|
|
112 |
|
|
7.4 |
|
Number of trailers, at
quarter-end |
|
|
5,233 |
|
|
|
|
|
4,536 |
|
|
|
|
|
697 |
|
|
15.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the quarter |
|
|
1,371 |
|
|
|
|
|
1,147 |
|
|
|
|
|
224 |
|
|
19.5 |
|
Owner-operated tractors,
average for the quarter |
|
|
1,603 |
|
|
|
|
|
1,430 |
|
|
|
|
|
173 |
|
|
12.1 |
|
|
|
|
2,974 |
|
|
|
|
|
2,577 |
|
|
|
|
|
397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* indicates not meaningful. |
(1) Includes intersegment revenues and expenses, as applicable,
which are eliminated in the Company’s consolidated results. |
(2) Total miles includes company and owner operator and excludes
brokerage. |
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Net Income (Loss) to Adjusted EBITDA by
Segment |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, 2019 |
|
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
Net income (loss) |
|
$ |
0.4 |
|
|
$ |
3.8 |
|
|
$ |
(13.5 |
) |
|
$ |
(9.3 |
) |
Depreciation and amortization |
|
|
14.7 |
|
|
|
26.7 |
|
|
|
0.1 |
|
|
|
41.5 |
|
Net interest expense |
|
|
2.5 |
|
|
|
3.3 |
|
|
|
6.7 |
|
|
|
12.5 |
|
Income tax provision (benefit) |
|
|
0.5 |
|
|
|
1.2 |
|
|
|
(3.6 |
) |
|
|
(1.9 |
) |
Stock based compensation |
|
|
0.2 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
1.0 |
|
Adjusted EBITDA |
|
$ |
18.3 |
|
|
$ |
35.4 |
|
|
$ |
(9.9 |
) |
|
$ |
43.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, 2018 |
|
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
Net income (loss) |
|
$ |
3.7 |
|
|
$ |
2.5 |
|
|
$ |
(7.0 |
) |
|
$ |
(0.8 |
) |
Depreciation and amortization |
|
|
7.4 |
|
|
|
17.8 |
|
|
|
— |
|
|
|
25.2 |
|
Net interest expense |
|
|
1.8 |
|
|
|
2.5 |
|
|
|
5.6 |
|
|
|
9.9 |
|
Income tax provision (benefit) |
|
|
1.5 |
|
|
|
1.1 |
|
|
|
(3.0 |
) |
|
|
(0.4 |
) |
Acquisition-related transaction expenses |
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.4 |
|
Stock based compensation |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
0.9 |
|
Adjusted EBITDA |
|
$ |
14.6 |
|
|
$ |
24.4 |
|
|
$ |
(3.8 |
) |
|
$ |
35.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Acquisition Adjusted Net Loss to
Acquisition Adjusted EBITDA |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
Net loss |
|
$ |
(9.3 |
) |
|
$ |
(1.6 |
) |
Depreciation and amortization |
|
|
41.5 |
|
|
|
31.0 |
|
Net interest expense |
|
|
12.5 |
|
|
|
11.4 |
|
Income tax benefit |
|
|
(1.9 |
) |
|
|
(0.3 |
) |
Acquisition-related transaction expenses |
|
|
— |
|
|
|
0.4 |
|
Stock based compensation |
|
|
1.0 |
|
|
|
0.9 |
|
Acquisition Adjusted
EBITDA |
|
$ |
43.8 |
|
|
$ |
41.8 |
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Net Loss to Adjusted Net
Income |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
Net loss |
|
$ |
(9.3 |
) |
|
$ |
(0.8 |
) |
Add: |
|
|
|
|
|
|
Acquisition-related tranaction expenses |
|
|
— |
|
|
|
0.4 |
|
Amortization of intangible assets |
|
|
4.3 |
|
|
|
1.9 |
|
Net impact of step-up in basis of acquired assets |
|
|
6.8 |
|
|
|
4.1 |
|
Adjusted Net
Income |
|
$ |
1.8 |
|
|
$ |
5.6 |
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Free Cash Flow to cash flows from
operating activities |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
(Dollars in millions) |
|
2019 |
|
2018 |
Net cash provided by operating activities |
|
$ |
36.4 |
|
|
$ |
14.2 |
|
Purchases of property and
equipment |
|
|
(3.9 |
) |
|
|
(7.6 |
) |
Proceeds from sale of property
and equipment |
|
|
4.6 |
|
|
|
5.9 |
|
Free cash
flow |
|
$ |
37.1 |
|
|
$ |
12.5 |
|
|
|
|
|
|
|
|
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