- Revenue and Adjusted EBITDA declined in 2019 second quarter
primarily due to low market demand in air and ground expedited
logistics at the Active On-Demand segment
- Ascent Global Logistics (Ascent) segment earned lower
revenue and marginally lower Adjusted EBITDA in 2019 second quarter
due to declines in truckload volumes and rate mix which offset
revenue improvements in international freight forwarding and retail
consolidation
- LTL segment continued to improve freight quality and
operating metrics despite a slight decline in second quarter
revenue and Adjusted EBITDA
- Truckload segment Adjusted EBITDA declined due to lower
revenue and higher costs at certain operating units
- Narrowing strategic focus to logistics and asset-light LTL
segments
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, 2019. The company changed its
segment reporting effective April 1, 2019, when the company began
assessing the performance of the Active On-Demand air and ground
expedited logistics business separately from its truckload
businesses. Segment information for prior periods has been adjusted
to align with the new segment structure.
Second Quarter Financial
Results
Revenues for the second quarter ended June 30, 2019 were $480.7
million, compared to revenues of $558.0 million for the second
quarter ended June 30, 2018. Lower revenues were primarily due to
declines of $63.3 million in air and ground expedited logistics at
Active On-Demand as well as reduced truckload shipment volumes and
rate mix at Ascent and lower volumes at certain Truckload operating
units.
Operating loss was $137.8 million in the second quarter of 2019,
compared to $11.4 million in the second quarter of 2018. Included
in the 2019 operating loss was $108.3 million of goodwill,
intangible asset, software and asset impairment charges. Excluding
impairment charges, the higher consolidated operating loss in the
second quarter of 2019 was attributable to a decrease of over $10
million in operating results at Active On-Demand as well as
declines in LTL and Ascent. These declines were partially offset by
improved operating results in Truckload.
Net loss was $141.9 million in the second quarter of 2019,
compared to $42.0 million in the second quarter of 2018. In
addition to the consolidated operating loss explanations above, the
consolidated net loss in the second quarter of 2019 was impacted by
a decrease in interest expense of $29.6 million (due to the absence
of interest on the company’s preferred stock which was fully
redeemed after completion of the company’s rights offering in
February 2019) and a lower benefit from income taxes. The company’s
effective income tax rate was 0.4% and 8.0% during the second
quarter of 2019 and 2018, respectively.
Diluted loss per share available to common stockholders was
$3.77 for the second quarter of 2019, compared to diluted loss per
share of $27.24 for the second quarter of 2018. On April 5, 2019,
the company executed a 1-for-25 reverse stock split. All share and
per common share data has been retroactively adjusted for all
periods presented. After reflecting the impact of the reverse stock
split, the weighted average common stock outstanding used in the
calculation of diluted loss per share was significantly higher in
the second quarter of 2019 due to the company’s issuance of 36
million shares of common stock in the rights offering which was
completed in February 2019.
(In thousands)
Revenue Comparison of Second
Quarter 2019 to 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Q2 2019 Revenues
$
130,160
$
101,492
$
117,076
$
141,472
$
(9,512)
$
480,688
Q2 2018 Revenues
144,630
164,770
117,164
145,761
(14,299)
558,026
Difference
$
(14,470)
$
(63,278)
$
(88)
$
(4,289)
$
4,787
$
(77,338)
Adjusted EBITDA for the quarters ended June 30, 2019 and 2018
was calculated as follows:
(In thousands)
Three Months Ended June 30,
2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
5,777
$
(2,614
)
$
(4,494
)
$
(104,278
)
$
(36,340
)
$
(141,949
)
Plus: Total interest expense
95
—
54
772
3,711
4,632
Plus: Provision (benefit) for income
taxes
8
—
—
—
(532
)
(524
)
Plus: Depreciation and amortization
1,616
2,125
1,085
7,030
2,932
14,788
Plus: Impairment charges
—
—
—
95,336
12,995
108,331
Plus: Long-term incentive compensation
expenses
—
—
—
—
4,594
4,594
Plus: Settlement of contingent purchase
obligation
—
—
—
—
360
360
Plus: Corporate restructuring and
restatement costs
—
—
—
—
3,242
3,242
Adjusted EBITDA
$
7,496
$
(489
)
$
(3,355
)
$
(1,140
)
$
(9,038
)
$
(6,526
)
Adjusted EBITDA as a % of revenue
5.8 %
(0.5)%
(2.9) %
(0.8)%
(1.4) %
(In thousands)
Three Months Ended June 30,
2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
7,285
$
7,808
$
(3,763
)
$
(8,566
)
$
(44,719
)
$
(41,955
)
Plus: Total interest expense
29
—
20
8
34,175
34,232
Plus: Benefit from income taxes
—
—
—
—
(3,652
)
(3,652
)
Plus: Depreciation and amortization
1,168
2,036
900
4,205
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
$
8,482
$
9,844
$
(2,843
)
$
302
$
(9,044
)
$
6,741
Adjusted EBITDA as a % of revenue
5.9 %
6.0 %
(2.4)%
0.2 %
1.2 %
Adjusted EBITDA Comparison of
Second Quarter 2019 to 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Adjusted EBITDA Improvement/ (Decline)
$
(986)
$
(10,333)
$
(512)
$
(1,442)
$
6
$
(13,267)
For more information about Adjusted EBITDA, see “Non-GAAP
Financial Measures” below and the company’s SEC filings.
First Half Financial Results
Revenues for the first half of 2019 were $987.8 million,
compared to revenues of $1,128.0 million for the first half of
2018. Lower revenues were primarily due to declines of $115.3
million in air and ground expedited logistics at Active
On-Demand.
Operating loss in the first half of 2019 was $158.6 million,
compared to $24.8 million in the first half of 2018. Included in
the 2019 operating loss was $109.1 million of goodwill, intangible
asset, software and asset impairment charges. Excluding impairment
charges, the higher consolidated operating loss in the first half
of 2019 was attributable to a decrease of over $13 million in
operating results at Active On-Demand as well as declines in
Truckload and Ascent. These declines were partially offset by
improved operating results in LTL.
Net loss increased to $168.9 million for the first half of 2019,
compared to $65.6 million in the first half of 2018. In addition to
the consolidated operating loss explanations above, the
consolidated net loss in the first half of 2019 included a loss on
debt restructuring of $2.3 million and a decrease in interest
expense of $35.3 million due to the waiver of interest on the
company’s preferred stock until it was fully redeemed after
completion of the company’s rights offering in February 2019. The
effective income tax rate was 0.3% and 4.3% during the first half
of 2019 and 2018, respectively.
Diluted loss per share available to common stockholders was
$6.39 for the first half of 2019, compared to diluted loss per
share of $42.62 for the first half of 2018. As previously
mentioned, the weighted average common stock outstanding used in
the calculation of diluted loss per share was significantly higher
in the first half of 2019 due to the company’s issuance of 36
million shares of common stock in the rights offering which was
completed in February 2019.
(In thousands)
Revenue Comparison of First
Half 2019 to 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
YTD 2019 Revenues
$
261,853
$
244,263
$
219,898
$
278,483
$
(16,661)
$
987,836
YTD 2018 Revenues
279,573
359,536
230,289
290,318
(31,706)
1,128,010
Difference
$
(17,720)
$
(115,273)
$
(10,391)
$
(11,835)
$
15,045
$
(140,174)
Adjusted EBITDA for the first half of 2019 and 2018 was
calculated as follows:
(In thousands)
Six Months Ended June 30,
2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
11,044
$
583
$
(10,363
)
$
(111,886
)
$
(58,326
)
$
(168,948
)
Plus: Total interest expense
188
—
88
1,464
6,774
8,514
Plus: Provision (benefit) for income
taxes
20
—
—
—
(473
)
(453
)
Plus: Depreciation and amortization
3,298
4,221
1,723
16,121
4,967
30,330
Plus: Long-term incentive compensation
expenses
—
—
—
—
6,325
6,325
Plus: Settlement of contingent purchase
obligation
—
—
—
—
360
360
Plus: Impairment charges
—
—
—
95,336
13,773
109,109
Plus: Loss on debt restructuring
—
—
—
—
2,270
2,270
Plus: Corporate restructuring and
restatement costs
—
—
—
—
6,674
6,674
Adjusted EBITDA
$
14,550
$
4,804
$
(8,552
)
$
1,035
$
(17,656
)
$
(5,819
)
Adjusted EBITDA as a % of revenue
5.6 %
2.0 %
(3.9) %
0.4 %
(0.6) %
(In thousands)
Six Months Ended June 30,
2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
13,962
$
14,261
$
(12,483
)
$
(10,630
)
$
(70,708
)
$
(65,598
)
Plus: Total interest expense
59
—
56
19
43,641
43,775
Plus: Benefit from income taxes
—
—
—
—
(2,982
)
(2,982
)
Plus: Depreciation and amortization
2,356
4,030
1,813
8,507
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
$
16,377
$
18,291
$
(10,614
)
$
2,551
$
(16,739
)
$
9,866
Adjusted EBITDA as a % of revenue
5.9 %
5.1 %
(4.6) %
0.9 %
0.9%
Adjusted EBITDA Comparison of
First Half 2019 to 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Adjusted EBITDA Improvement/
(Decline)
$
(1,827)
$
(13,487)
$
2,062
$
(1,516)
$
(917)
$
(15,685)
CEO Comments on Second Quarter
Results
“Challenging market conditions resulted in revenue and Adjusted
EBITDA declines in the second quarter, primarily driven by low
demand in air and ground expedited logistics at Active On-Demand.
As we have stated in the past, Active On-Demand is a
well-positioned logistics business that can exhibit short-term
volatility. Historically, these variations moderate over longer
periods and do not impact our ability to capture improved revenue
and profits as expedite demand improves,” said Curt Stoelting,
Chief Executive Officer of Roadrunner.
“Ascent’s Adjusted EBITDA in the second quarter remained steady.
We achieved improvements in international freight forwarding that
were primarily offset by lower truckload volumes and rate mix in
domestic freight management. We continue to invest in the
integration of Ascent, which we expect will benefit future top-line
and bottom-line results. These efforts include the development of a
proprietary enterprise brokerage platform, which will support our
logistics operations in both the Ascent and Active On-Demand
segments and streamline our logistics go-to-market capabilities,”
said Stoelting.
Stoelting added, “We continued to make progress in our
asset-light LTL segment in the second quarter. Excluding backhaul
and fuel surcharge revenue, LTL revenue grew by 3.4% in the second
quarter. Freight quality and yield continued to improve during the
quarter. In the second quarter, yield improvements and lower bad
debts were offset by increased equipment repair and personnel
related costs as we reduced deferred maintenance and built a
stronger foundation for future growth. Our on-going efforts to
eliminate unprofitable freight and increase density in key lanes
continues to produce improvements in our key operating
metrics.”
“In the Truckload segment, improvements in temperature
controlled and flatbed were offset by declines in dry van which had
higher costs and intermodal services which experienced reduced
volumes in the second quarter compared to the prior year. As
benefits from fleet upgrades and streamlined operations in dry van
are realized, we expect better results in this segment. Going
forward, we are putting less focus on the Truckload segment in
favor of our logistics and asset-light LTL segments. Accordingly,
we are undertaking a strategic assessment of Truckload assets,”
said Stoelting.
“Throughout 2019, we have invested over $50 million to upgrade
our fleets in all four segments. Because of the timing of the
equipment delivery schedules and transition costs, we have not yet
seen the full benefits from these investments,” said Stoelting.
Stoelting concluded, “Despite a challenging second quarter, we
remain committed to our longer-term business plans to improve
operating results, followed by growth and optimization
opportunities. Challenging market conditions can cloud progress in
making structural improvements, so it’s important to note that we
are encouraged by our teams’ efforts in all segments. Although we
remain committed to achieving better than average industry margins,
we are not currently in position to provide short-term or
longer-term financial guidance. In summary, we believe that
narrowing our strategic focus to our logistics and asset-light LTL
segments will improve our allocation of resources and ultimately
our return on invested capital and enterprise valuation.”
Conference Call and Webcast
Roadrunner management will host a conference call to discuss the
company’s results for the quarter ended June 30, 2019 on Wednesday,
August 7, 2019 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 4789418. 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 14, 2019 and can be accessed by
dialing 855-859-2056 (U.S.) or 404-537-3406 (International).
Callers will be prompted for passcode 4789418. 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, over-the-road truckload and intermodal
services. Active On-Demand offers premium mission critical air and
ground transportation solutions. Ascent Global Logistics offers
domestic freight management and brokerage, warehousing and 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 Roadrunner’s additional integration efforts at Ascent;
the ability of all segments to achieve better than average industry
margins; the success of the LTL segment to eliminate unprofitable
freight and increase density in key lanes; the plan to put less
focus on the Truckload segment; and the ability to improve return
on invested capital and enterprise valuation. 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, 2018. 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, loss on debt
restructuring, settlement of contingent purchase obligations,
operations restructuring costs, and corporate restructuring and
restatement costs associated with legal, consulting and accounting
matters, including internal and external investigations. 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, 2019
December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents
$
4,896
$
11,179
Accounts receivable, net of allowances of
$8,260 and $9,980, respectively
243,457
274,843
Income tax receivable
2,366
3,910
Prepaid expenses and other current
assets
50,103
61,106
Total current assets
300,822
351,038
Property and equipment, net of
accumulated depreciation of $153,335 and $130,077, respectively
212,945
188,706
Other assets:
Operating lease right-of-use asset
114,523
—
Goodwill
171,900
264,826
Intangible assets, net
37,144
42,526
Other noncurrent assets
5,987
6,361
Total other assets
329,554
313,713
Total assets
$
843,321
$
853,457
LIABILITIES AND STOCKHOLDERS’
INVESTMENT (DEFICIT)
Current liabilities:
Current maturities of debt
$
2,566
$
13,171
Current maturities of indebtedness to
related party
9,133
—
Current finance lease liability
21,799
13,229
Current operating lease liability
35,373
—
Accounts payable
132,549
160,242
Accrued expenses and other current
liabilities
89,889
110,943
Total current liabilities
291,309
297,585
Deferred tax liabilities
3,225
3,953
Other long-term liabilities
3,339
7,857
Long-term finance lease
liability
72,150
37,737
Long-term operating lease
liability
85,223
—
Long-term debt, net of current
maturities
134,830
155,596
Long-term indebtedness to related
party
31,848
—
Preferred stock
—
402,884
Total liabilities
621,924
905,612
Commitments and contingencies (Note
12)
Stockholders’ investment
(deficit):
Common stock $.01 par value; 44,000 and
4,200 shares authorized, respectively; 37,637 and 1,556 shares
issued and outstanding, respectively
376
16
Additional paid-in capital
847,383
405,243
Retained deficit
(626,362
)
(457,414
)
Total stockholders’ investment
(deficit)
221,397
(52,155
)
Total liabilities and stockholders’
investment (deficit)
$
843,321
$
853,457
See accompanying notes to
unaudited condensed consolidated financial statements.
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,
2019
2018
2019
2018
Revenues
$
480,688
$
558,026
$
987,836
$
1,128,010
Operating expenses:
Purchased transportation costs
317,785
380,072
660,560
781,035
Personnel and related benefits
81,686
75,838
160,901
151,725
Other operating expenses
95,939
99,712
185,553
197,211
Depreciation and amortization
14,788
9,124
30,330
18,189
Operations restructuring costs
—
4,655
—
4,655
Impairment charges
108,331
—
109,109
—
Total operating expenses
618,529
569,401
1,146,453
1,152,815
Operating loss
(137,841
)
(11,375
)
(158,617
)
(24,805
)
Interest expense:
Interest expense - preferred stock
—
31,609
—
38,724
Interest expense - debt
4,632
2,623
8,514
5,051
Total interest expense
4,632
34,232
8,514
43,775
Loss on debt restructuring
—
—
2,270
—
Loss before income taxes
(142,473
)
(45,607
)
(169,401
)
(68,580
)
Benefit from income taxes
(524
)
(3,652
)
(453
)
(2,982
)
Net loss
$
(141,949
)
$
(41,955
)
$
(168,948
)
$
(65,598
)
Loss per share:
Basic
$
(3.77
)
$
(27.24
)
$
(6.39
)
$
(42.62
)
Diluted
$
(3.77
)
$
(27.24
)
$
(6.39
)
$
(42.62
)
Weighted average common stock
outstanding:
Basic
37,603
1,540
26,442
1,539
Diluted
37,603
1,540
26,442
1,539
See accompanying notes to
unaudited condensed consolidated financial statements.
ROADRUNNER TRANSPORTATION
SYSTEMS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ INVESTMENT (DEFICIT)
(Unaudited)
Common Stock
(In thousands, except shares)
Shares
Amount
Additional Paid-In
Capital
Retained Deficit
Total Stockholders'
Investment (Deficit)
BALANCE, December 31, 2018
1,555,868
$
16
$
405,243
$
(457,414
)
$
(52,155
)
Issuance of restricted stock units, net of
taxes paid
5,664
—
(8
)
—
(8
)
Issuance of common stock
36,000,000
360
449,640
—
450,000
Common stock issuance costs
—
—
(11,985
)
—
(11,985
)
Share-based compensation
—
—
1,599
—
1,599
Net loss
—
—
—
(26,999
)
(26,999
)
BALANCE, March 31, 2019
37,561,532
$
376
$
844,489
$
(484,413
)
$
360,452
Issuance of restricted stock units, net of
taxes paid
75,590
—
(175
)
—
(175
)
Share-based compensation
—
—
3,069
—
3,069
Net loss
—
—
—
(141,949
)
(141,949
)
BALANCE, June 30, 2019
37,637,122
$
376
$
847,383
$
(626,362
)
$
221,397
Common Stock
(In thousands, except shares)
Shares
Amount
Additional Paid-In
Capital
Retained Deficit
Total Stockholders'
Investment (Deficit)
BALANCE, December 31, 2017
1,536,925
$
15
$
403,535
$
(292,703
)
$
110,847
Issuance of restricted stock units, net of
taxes paid
3,272
—
(75
)
—
(75
)
Share-based compensation
—
—
523
—
523
Cumulative effect of change in accounting
principle
—
—
—
886
886
Net loss
—
—
—
(23,643
)
(23,643
)
BALANCE, March 31, 2018
1,540,197
$
15
$
403,983
$
(315,460
)
$
88,538
Issuance of restricted stock units, net of
taxes paid
93
—
(1
)
—
(1
)
Share-based compensation
—
—
372
—
372
Net loss
—
—
—
(41,955
)
(41,955
)
BALANCE, June 30, 2018
1,540,290
$
15
$
404,354
$
(357,415
)
$
46,954
See accompanying notes to
unaudited condensed consolidated financial statements.
ROADRUNNER TRANSPORTATION
SYSTEMS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six Months Ended
June 30,
2019
2018
Cash flows from operating
activities:
Net loss
$
(168,948
)
$
(65,598
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
30,720
18,552
Change in fair value of preferred
stock
—
37,663
Amortization of preferred stock issuance
costs
—
1,061
Loss on disposal of property and
equipment
355
1,972
Share-based compensation
4,668
895
Loss on debt restructuring
2,270
—
Provision for bad debts
491
2,030
Deferred tax benefit
(729
)
(3,544
)
Impairment charges
109,109
—
Changes in:
Accounts receivable
30,895
27,156
Income tax receivable
1,544
911
Prepaid expenses and other assets
30,676
6,900
Accounts payable
(29,879
)
(23,852
)
Accrued expenses and other liabilities
(30,718
)
(5,052
)
Net cash used in operating activities
(19,546
)
(906
)
Cash flows from investing
activities:
Capital expenditures
(13,043
)
(11,391
)
Proceeds from sale of property and
equipment
1,882
927
Net cash used in investing activities
(11,161
)
(10,464
)
Cash flows from financing
activities:
Borrowings under revolving credit
facilities
523,478
—
Payments under revolving credit
facilities
(526,643
)
—
Term debt borrowings
52,592
557
Term debt payments
(39,714
)
(11,846
)
Debt issuance costs
(2,005
)
—
Payments of debt extinguishment costs
(693
)
—
Proceeds from issuance of common stock
450,000
—
Common stock issuance costs
(10,514
)
—
Proceeds from issuance of preferred
stock
—
34,999
Preferred stock issuance costs
—
(1,061
)
Preferred stock payments
(402,884
)
—
Issuance of restricted stock units, net of
taxes paid
(183
)
(76
)
Payments on insurance premium
financing
(9,957
)
—
Payment of capital lease obligation
(9,053
)
(1,267
)
Net cash provided by financing
activities
24,424
21,306
Net (decrease) increase in cash and
cash equivalents
(6,283
)
9,936
Cash and cash equivalents:
Beginning of period
11,179
25,702
End of period
$
4,896
$
35,638
ROADRUNNER TRANSPORTATION
SYSTEMS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
Six Months Ended
(In thousands)
June 30,
2019
2018
Supplemental cash flow
information:
Cash paid for interest
$
8,125
$
4,966
Cash (refunds from) paid for income taxes,
net
$
(787
)
$
144
Non-cash finance leases and other
obligations to acquire assets
$
52,456
$
10,451
Capital expenditures, not yet paid
$
2,814
$
—
See accompanying notes to
unaudited condensed consolidated financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005203/en/
Contact: Reputation Partners Marilyn Vollrath
414-376-8834 ir@rrts.com
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