- Revenue and Adjusted EBITDA declined in 2019 third quarter
primarily due to continued lower market demand and rates amplified
by the strike at the company’s largest customer, General Motors,
which reduced revenue by approximately $17 million in September and
an estimated $31 million in October
- Malware attack was successfully managed; quarantined servers
and applications primarily impacted the LTL segment which reduced
revenue by approximately $7 million in September and an estimated
$3 million in October
- PeakTM enterprise logistics technology platform
implementation on track in Active On-Demand and Ascent segments;
increased technology investments in LTL segment
- Initiated dry van downsizing and path to improved
operational performance
- Successful divestiture of intermodal services business
within the Truckload segment for $51.25 million; closed on November
5, 2019
- Progress made on narrowing strategic focus to value-added
logistics and asset-light LTL businesses
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 third quarter ended September 30, 2019.
Third Quarter Financial Results
Revenues decreased to $459.1 million in the third quarter of
2019 compared to $536.6 million in the third quarter of 2018. Lower
revenues were primarily due to declines in air and ground expedited
logistics at Active On-Demand as well as reduced shipment volumes
and rates at the Ascent and Truckload segments. Third quarter 2019
results were also negatively impacted by the General Motors strike
in the last two weeks of September, which reduced revenue in the
Active On-Demand and Truckload segments by approximately $13
million and $4 million, respectively, and a malware attack in
September that negatively impacted revenue in the LTL segment by
approximately $7 million.
Operating loss was $92.8 million in the third quarter of 2019
compared to $10.8 million in the third quarter of 2018. Impacting
the consolidated operating loss in the third quarter of 2019 was
$39.7 million of goodwill, intangible asset and asset impairment
charges and $13.4 million of operations restructuring costs related
to the downsizing of the dry van business. Excluding impairment and
operations restructuring costs, the higher consolidated operating
loss in the third quarter of 2019 was primarily attributable to the
impact of lower revenues across all of the company’s operating
segments and higher insurance and claims costs mostly attributable
to the Truckload segment.
Net loss was $97.8 million in the third quarter of 2019 compared
to $41.6 million in the third quarter of 2018. In addition to the
explanations provided above for the company’s consolidated
operating loss, the consolidated net loss in the third quarter of
2019 was also impacted by a decrease in interest expense of $30.3
million resulting from the redemption of preferred stock in the
first quarter of 2019 and a lower benefit from income taxes. The
company’s effective income tax rate was 0.6% and 10.8% during the
third quarter of 2019 and 2018, respectively.
Diluted loss per share available to common stockholders was
$2.60 for the third quarter of 2019, compared to diluted loss per
share of $26.99 for the third quarter of 2018. On April 5, 2019,
the company executed a 1-for-25 reverse stock split. All share and
per common share data have been retroactively adjusted for all
periods presented. The weighted average common stock outstanding
used in the calculation of diluted loss per share was significantly
higher in the third quarter of 2019 due to the company’s issuance
of 36 million shares of common stock in the rights offering that
was completed in February 2019.
The table below shows the changes in revenues and is based on
management’s analysis and estimates.
(In thousands)
Three Months Ended September
30, 2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Q3 Revenue 2018
$
145,632
$
146,217
$
113,948
$
140,663
$
(9,876
)
$
536,584
Organic Growth (Decline)
(19,732
)
(24,578
)
478
(9,417
)
377
(52,872
)
Strike at General Motors
—
(13,365
)
—
(4,050
)
—
(17,415
)
Malware Attack
—
—
(7,150
)
—
—
(7,150
)
Q3 Revenue 2019
$
125,900
$
108,274
$
107,276
$
127,196
$
(9,499
)
$
459,147
Percent change in quarter over quarter
revenue
(13.5
)%
(25.9
)%
(5.9
)%
(9.6
)%
(14.4
)%
Adjusted EBITDA for the quarters ended September 30, 2019 and
2018 was calculated as follows:
(In thousands)
Three Months Ended September
30, 2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
(29,141)
$
202
$
(13,140)
$
(30,974)
$
(24,698)
$
(97,751)
Plus: Total interest expense
92
—
415
830
4,143
5,480
Plus: Benefit from income taxes
(10)
—
—
—
(544)
(554)
Plus: Depreciation and amortization
1,590
2,143
1,880
7,022
2,836
15,471
Plus: Impairment charges
34,528
—
1,076
4,064
—
39,668
Plus: Long-term incentive compensation
expenses
—
0
—
—
—
3,479
3,479
Plus: Operations restructuring costs
—
—
—
13,426
—
13,426
Plus: Corporate restructuring and
restatement costs
—
—
—
—
4,267
4,267
Adjusted EBITDA
$
7,059
$
2,345
$
(9,769)
$
(5,632)
$
(10,517)
$
(16,514)
Adjusted EBITDA as a % of revenue
5.6 %
2.2%
(9.1)%
(4.4)%
(3.6)%
(In thousands)
Three Months Ended September
30, 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
7,319
$
5,634
$
(5,072)
$
(6,555)
$
(42,887)
$
(41,561)
Plus: Total interest expense
26
—
32
134
35,606
35,798
Plus: Provision (benefit) for income
taxes
129
—
—
—
(5,187)
(5,058)
Plus: Depreciation and amortization
1,183
2,069
876
4,387
1,099
9,614
Plus: Long-term incentive compensation
expenses
—
0
—
—
—
951
951
Plus: Corporate restructuring and
restatement costs
—
—
—
—
4,713
4,713
Adjusted EBITDA
$
8,657
$
7,703
$
(4,164)
$
(2,034)
$
(5,705)
$
4,457
Adjusted EBITDA as a % of revenue
5.9 %
5.3%
(3.7)%
(1.4)%
0.8%
For more information about Adjusted EBITDA, see “Non-GAAP
Financial Measures” below and the company’s SEC filings.
First Nine Months Financial
Results
Revenues decreased to $1,447.0 million in the first nine months
of 2019 compared to $1,664.6 million in the first nine months of
2018. Lower revenues were primarily due to revenue declines of
$153.2 million in air and ground expedited logistics at Active
On-Demand as well as reduced truckload shipment volumes and rate
mix at Ascent.
Operating loss was $251.4 million in the first nine months of
2019 compared to $35.6 million in the first nine months of 2018.
Included in the operating loss for the first nine months of 2019
were $148.8 million of goodwill, intangible asset, software and
asset impairment charges. Both periods were also impacted by
operations restructuring costs of $13.4 million and $4.7 million,
respectively. Excluding impairment and operations restructuring
costs, the higher consolidated operating loss in the first nine
months of 2019 was primarily attributable to the impact of lower
revenues across all of the company’s operating segments.
Net loss was $266.7 million in the first nine months of 2019
compared to $107.2 million in the first nine months of 2018. In
addition to the explanations provided above for the company’s
consolidated operating loss, the consolidated net loss in the first
nine months of 2019 was impacted by a decrease in interest expense
of $65.6 million due to the waiver of interest on preferred stock
which was fully redeemed after completion of the rights offering in
February 2019, partially offset by a loss on debt restructuring of
$2.3 million. The effective income tax rate was 0.4% and 7.0%
during the first nine months of 2019 and 2018, respectively.
Diluted loss per share available to common stockholders was
$8.83 for the first nine months of 2019, compared to diluted loss
per share of $69.58 for the first nine months 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 nine months of 2019 due to the company’s
issuance of 36 million shares of common stock in the rights
offering that was completed in February 2019.
The table below shows the changes in revenues and is based on
management’s analysis and estimates.
(In thousands)
Nine Months Ended September
30, 2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
YTD Revenue 2018
$
425,205
$
505,753
$
344,237
$
430,981
$
(41,582
)
$
1,664,594
Organic Growth (Decline)
(37,452
)
(139,851
)
(9,913
)
(21,252
)
15,422
(193,046
)
Strike at General Motors
—
(13,365
)
—
(4,050
)
—
(17,415
)
Malware Attack
—
—
(7,150
)
—
—
(7,150
)
YTD Revenue 2019
$
387,753
$
352,537
$
327,174
$
405,679
$
(26,160
)
$
1,446,983
Percent change in year over year
revenue
(8.8
)%
(30.3
)%
(5.0
)%
(5.9
)%
(13.1
)%
Adjusted EBITDA for the first nine months of 2019 and 2018 was
calculated as follows:
(In thousands)
Nine Months Ended September
30, 2019
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
(18,097)
$
785
$
(23,502)
$
(142,861)
$
(83,024)
$
(266,699)
Plus: Total interest expense
280
—
503
2,294
10,917
13,994
Plus: (Benefit from) provision for income
taxes
10
—
—
—
(1,017)
(1,007)
Plus: Depreciation and amortization
4,888
6,364
3,603
23,144
7,802
45,801
Plus: Long-term incentive compensation
expenses
—
—
—
—
9,805
9,805
Plus: Settlement of contingent purchase
obligation
—
0
—
—
—
360
360
Plus: Impairment charges
34,528
—
1,076
99,400
13,773
148,777
Plus: Loss on debt restructuring
—
—
—
—
2,270
2,270
Plus: Operations restructuring costs
—
—
—
13,426
—
13,426
Plus: Corporate restructuring and
restatement costs
—
—
—
—
10,941
10,941
Adjusted EBITDA
$
21,609
$
7,149
$
(18,320)
$
(4,597)
$
(28,173)
$
(22,332)
Adjusted EBITDA as a % of revenue
5.6 %
2.0%
(5.6)%
(1.1) %
(1.5)%
(In thousands)
Nine Months Ended September
30, 2018
Ascent
Active On-Demand
LTL
TL
Corporate/
Eliminations
Total
Net (loss) income
$
21,281
$
19,895
$
(17,555)
$
(17,185)
$
(113,595)
$
(107,159)
Plus: Total interest expense
85
—
88
153
79,247
79,573
Plus: Benefit from income taxes
129
—
—
—
(8,169)
(8,040)
Plus: Depreciation and amortization
3,539
6,099
2,689
12,894
2,582
27,803
Plus: Long-term incentive compensation
expenses
—
0
—
—
—
1,954
1,954
Plus: Operations restructuring costs
—
—
—
4,655
—
4,655
Plus: Corporate restructuring and
restatement costs
—
—
—
—
15,537
15,537
Adjusted EBITDA
$
25,034
$
25,994
$
(14,778)
$
517
$
(22,444)
$
14,323
Adjusted EBITDA as a % of revenue
5.9%
5.1%
(4.3)%
0.1%
0.9 %
Recent Events
On September 30, 2019, the company announced the downsizing of
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. 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, the write-down of assets, the termination of lease
liabilities, and asset impairment charges. The company incurred
$13.4 million of total operations restructuring costs in the third
quarter of 2019 of which $10.1 million related to asset impairment
charges.
On November 5, 2019, the company announced the sale of its
intermodal services business, which is part of the company’s
Truckload segment, to Universal Logistics Holdings, Inc. (NASDAQ:
ULH), for $51.25 million in cash, subject to customary purchase
price and working capital adjustments. The company used the
proceeds from the sale to repay finance leases and debt associated
with Roadrunner Intermodal Services and pay transaction costs, with
the remaining amount available for general corporate purposes.
Liquidity Update
The company currently has available funds for working capital
and operating purposes from its existing borrowing capacity under
its ABL facility and its recent divestiture of the intermodal
services business.
CEO Comments on Third Quarter
Results
“In the third quarter, we experienced a number of challenges
that impacted our operating performance. At the end of the third
quarter, we announced the downsizing of our dry van business, which
is proceeding as planned. The General Motors strike has now ended,
and we are fully recovered from the server and applications
quarantine caused by the malware attack. After quarter end, we
successfully completed the divestiture of our intermodal services
business,” said Curt Stoelting, Chief Executive Officer of
Roadrunner.
“Our Ascent International and Retail Distribution businesses
continued to show positive operating performance in the third
quarter. Demand and rates in the Active On-Demand, Ascent Domestic
and Truckload Segment tracked well below prior year comparisons
throughout the quarter. Excluding the impact of the malware attack,
the LTL segment would have grown revenue in the third quarter
compared to the prior year third quarter by 1.8%, despite lower
fuel surcharge revenue and a softening in the overall LTL market.
In the fourth quarter, we expect to file insurance claims to
recover the impact on lost business from the malware attack,” said
Stoelting.
“We continue to invest in enhanced technology in our Active
On-Demand and Ascent segments where our new Peak enterprise
brokerage platform will allow us to maximize our go-to-market
capabilities across both segments and harmonize our customer
service and back office functions. We also continue to drive
strategic investments in our LTL segment including dock automation
and productivity applications, optimized line-haul and pricing
management tools and improved customer and partner facing
visibility technologies,” said Stoelting.
Stoelting concluded, “Despite a very challenging third quarter,
we are making progress on executing our longer-term strategic and
business improvement plans and technology investments. External
events and soft market conditions can delay realizing the benefits
from these improvements and investments. We continue to be
encouraged by the efforts of our leadership teams and their
commitment to the business. With the recent divestiture of the
intermodal services business and the downsizing of the dry van
business, we are simplifying our portfolio by narrowing our
strategic focus to the value-added logistics and asset-light LTL
businesses. The goal of this strategy is to improve our operating
performance, increase our returns on invested capital, and add
significant value-creation opportunities. We continue to evaluate
additional divestitures that will enable this strategy.”
Conference Call and Webcast
Roadrunner management will host a conference call to discuss the
company’s results for the quarter ended September 30, 2019 on
Wednesday, November 6, 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 6150938.
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, November 13, 2019 and can be accessed
by dialing 855-859-2056 (U.S.) or 404-537-3406 (International).
Callers will be prompted for passcode 6150938. 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 suite of 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
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 planned path to improved operational
performance; the expected operations restructuring costs related to
the downsizing of the dry van business; expected insurance claims
recoveries; our ability to maximize our go-to-market capabilities;
and the ability to improve our operating performance, increase our
returns on invested capital and create value. 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 and Quarterly Reports on Form 10-Q for the first three
quarters of 2019. 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, settlements 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)
September 30, 2019
December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents
$
5,825
$
11,179
Accounts receivable, net of allowances of
$8,186 and $9,980, respectively
223,966
274,843
Income tax receivable
2,275
3,910
Prepaid expenses and other current
assets
70,471
61,106
Total current assets
302,537
351,038
Property and equipment, net of
accumulated depreciation of $161,815 and $130,077, respectively
201,077
188,706
Other assets:
Operating lease right-of-use asset
115,385
—
Goodwill
137,372
264,826
Intangible assets, net
30,994
42,526
Other noncurrent assets
5,839
6,361
Total other assets
289,590
313,713
Total assets
$
793,204
$
853,457
LIABILITIES AND STOCKHOLDERS’
INVESTMENT (DEFICIT)
Current liabilities:
Current maturities of debt
$
2,558
$
13,171
Current maturities of indebtedness to
related party
9,141
—
Current finance lease liability
22,598
13,229
Current operating lease liability
35,924
—
Accounts payable
128,998
160,242
Accrued expenses and other current
liabilities
117,565
110,943
Total current liabilities
316,784
297,585
Deferred tax liabilities
2,621
3,953
Other long-term liabilities
3,558
7,857
Long-term finance lease
liability
69,743
37,737
Long-term operating lease
liability
90,327
—
Long-term debt, net of current
maturities
152,052
155,596
Long-term indebtedness to related
party
31,265
—
Preferred stock
—
402,884
Total liabilities
666,350
905,612
Commitments and contingencies (Note
12)
Stockholders’ investment
(deficit):
Common stock $.01 par value; 44,000 and
4,200 shares authorized, respectively; 37,642 and 1,556 shares
issued and outstanding, respectively
376
16
Additional paid-in capital
850,591
405,243
Retained deficit
(724,113
)
(457,414
)
Total stockholders’ investment
(deficit)
126,854
(52,155
)
Total liabilities and stockholders’
investment (deficit)
$
793,204
$
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
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Revenues
$
459,147
$
536,584
$
1,446,983
$
1,664,594
Operating expenses:
Purchased transportation costs
306,362
365,678
966,922
1,146,713
Personnel and related benefits
80,161
78,118
241,062
229,843
Other operating expenses
96,884
93,995
282,437
291,206
Depreciation and amortization
15,471
9,614
45,801
27,803
Operations restructuring costs
13,426
—
13,426
4,655
Impairment charges
39,668
—
148,777
—
Total operating expenses
551,972
547,405
1,698,425
1,700,220
Operating loss
(92,825
)
(10,821
)
(251,442
)
(35,626
)
Interest expense:
Interest expense - preferred stock
—
32,847
—
71,571
Interest expense - debt
5,480
2,951
13,994
8,002
Total interest expense
5,480
35,798
13,994
79,573
Loss on debt restructuring
—
—
2,270
—
Loss before income taxes
(98,305
)
(46,619
)
(267,706
)
(115,199
)
Benefit from income taxes
(554
)
(5,058
)
(1,007
)
(8,040
)
Net loss
$
(97,751
)
$
(41,561
)
$
(266,699
)
$
(107,159
)
Loss per share:
Basic
$
(2.60
)
$
(26.99
)
$
(8.83
)
$
(69.58
)
Diluted
$
(2.60
)
$
(26.99
)
$
(8.83
)
$
(69.58
)
Weighted average common stock
outstanding:
Basic
37,639
1,540
30,216
1,540
Diluted
37,639
1,540
30,216
1,540
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
Issuance of restricted stock units, net of
taxes paid
4,622
—
—
—
—
Share-based compensation
—
—
3,208
—
3,208
Net loss
—
—
—
(97,751
)
(97,751
)
BALANCE, September 30, 2019
37,641,744
$
376
$
850,591
$
(724,113
)
$
126,854
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
Issuance of restricted stock units, net of
taxes paid
288
—
(5
)
—
(5
)
Share-based compensation
—
—
497
—
497
Net loss
—
—
—
(41,561
)
(41,561
)
BALANCE, September 30, 2018
1,540,578
$
15
$
404,846
$
(398,976
)
$
5,885
See accompanying notes to
unaudited condensed consolidated financial statements.
ROADRUNNER TRANSPORTATION
SYSTEMS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
September 30,
2019
2018
Cash flows from operating
activities:
Net loss
$
(266,699
)
$
(107,159
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
46,365
28,358
Change in fair value of preferred
stock
—
70,451
Amortization of preferred stock issuance
costs
—
1,120
Loss on disposal of property and
equipment
516
1,853
Share-based compensation
7,876
1,392
Loss on debt restructuring
2,270
—
Provision for bad debts
2,932
2,275
Deferred tax benefit
(1,332
)
(9,041
)
Impairment charges
158,923
—
Changes in:
Accounts receivable
47,945
34,556
Income tax receivable
1,635
3,557
Prepaid expenses and other assets
20,760
(13,754
)
Accounts payable
(32,835
)
(12,453
)
Accrued expenses and other liabilities
(31,097
)
(3,138
)
Net cash used in operating activities
(42,741
)
(1,983
)
Cash flows from investing
activities:
Capital expenditures
(20,387
)
(16,922
)
Proceeds from sale of property and
equipment
3,281
1,316
Net cash used in investing activities
(17,106
)
(15,606
)
Cash flows from financing
activities:
Borrowings under revolving credit
facilities
540,978
60,746
Payments under revolving credit
facilities
(526,643
)
(85,655
)
Term debt borrowings
52,592
557
Term debt payments
(40,724
)
(16,285
)
Debt issuance costs
(2,029
)
—
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
—
(1,120
)
Preferred stock payments
(402,884
)
—
Issuance of restricted stock units, net of
taxes paid
(183
)
(81
)
Proceeds from insurance premium
financing
20,735
17,782
Payments on insurance premium
financing
(12,221
)
(6,252
)
Payments of finance lease obligation
(13,921
)
(2,785
)
Net cash provided by financing
activities
54,493
1,906
Net decrease in cash and cash
equivalents
(5,354
)
(15,683
)
Cash and cash equivalents:
Beginning of period
11,179
25,702
End of period
$
5,825
$
10,019
ROADRUNNER TRANSPORTATION
SYSTEMS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
Nine Months Ended
(In thousands)
September 30,
2019
2018
Supplemental cash flow
information:
Cash paid for interest
$
12,933
$
7,436
Cash refunds from income taxes, net
$
(857
)
$
(1,329
)
Non-cash finance leases and other
obligations to acquire assets
$
55,742
$
23,233
Capital expenditures, not yet paid
$
2,219
$
1,877
See accompanying notes to
unaudited condensed consolidated financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191106005336/en/
Contact: Reputation Partners Marilyn Vollrath
414-376-8834 ir@rrts.com
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