EX-99.1 2 d297887dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

ROADRUNNER TRANSPORTATION SYSTEMS REPORTS

2011 FOURTH QUARTER AND YEAR-END RESULTS AND ANNOUNCES

FIRST QUARTER 2012 GUIDANCE

Cudahy, WI – February 8, 2012 – Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading asset-light transportation and logistics services provider, today reported financial results for the three months and year ended December 31, 2011.

Roadrunner’s summary financial results for the three months and year ended December 31 are highlighted below. Fourth quarter diluted income per share available to common stockholders increased 83.3% over the prior year to $0.22. Excluding acquisition transaction expenses of $0.4 million related to a non-recurring acquisition earnout, diluted income per share available to common stockholders would have been $0.23.

 

September 30, September 30, September 30, September 30,
        Three Months Ended
December 31,
       Year Ended
December 31,
 

(In thousands, except per share data)

     2011        2010        2011        2010 (1)  

Total revenues

     $ 238,005         $ 165,796         $ 843,627         $ 632,018   
    

 

 

      

 

 

      

 

 

      

 

 

 

Net revenues (total revenues less purchased transportation costs)

     $ 69,948         $ 35,483         $ 223,284         $ 137,973   

Depreciation and amortization

       1,597           750           4,978           3,114   

Other operating expenses

       54,646           27,884           170,803           103,021   

Acquisition transaction expenses

       430           180           1,368           569   

IPO related expenses

       —             —             —             1,500   
    

 

 

      

 

 

      

 

 

      

 

 

 

Operating income

     $ 13,275         $ 6,669         $ 46,135         $ 29,769   
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income available to common stockholders

     $ 6,865         $ 3,877         $ 25,871         $ 2,826   

Weighted average diluted shares outstanding

       31,765           31,066           31,545           26,777   

Diluted income per share available to common stockholders

     $ 0.22         $ 0.12         $ 0.82         $ 0.11   

 

(1)

Results for the year ended December 31, 2010 include a one-time loss on early extinguishment of debt of $15.9 million and $1.5 million of expenses related to the company’s initial public offering in May 2010.


2011 Fourth Quarter Results

In discussing fourth quarter performance, Mark DiBlasi, President and CEO of Roadrunner, said,

“Revenues increased 43.6% and net revenues expanded 97.1% from the prior year, resulting primarily from new customer growth, pricing initiatives, fuel increases, and the inclusion of the acquisitions of Morgan Southern and Prime Logistics. Our operating income growth of 99.1% outpaced revenue growth, despite the effects of higher fuel prices on revenues and operating costs. Revenues and operating income for the fourth quarter of 2011 represented the best quarter in the history of the company.

“LTL revenues increased $13.5 million, or 12.8%, from the prior year as a result of new customer growth and expansion into new markets. This new customer growth and market expansion during the fourth quarter also drove a per-day tonnage increase of 8.5% over the prior year. Per day tonnage growth over the prior year averaged 7.8% in October and November and increased to 9.9% in December. Revenue per hundredweight increased 7.9% over the prior year, including 5.2% related to fuel. During the fourth quarter, our LTL operating expenses increased $2.6 million over prior year, primarily due to (i) higher insurance costs, (ii) increased dock labor costs due to increased tonnage and (iii) expanded infrastructure costs to support our new business initiatives. Our LTL operating ratio improved to 95.5% in the fourth quarter from 96.0% in the prior year quarter. Our continued initiatives to penetrate new customers, expand into new geographic regions and build density resulted in a net revenue margin improvement from 23.4% in the third quarter of 2011 to 24.8% in the fourth quarter of 2011. We expect these continued initiatives to improve our operating ratio and drive positive tonnage growth in future quarters.

“TL revenues grew by $54.9 million, or 125.2%, from the prior year. Revenues from Morgan Southern (acquired in early February), Bruenger Trucking (acquired at the end of May) and Prime Logistics (acquired at the end of August) accounted for $50.2 million of the increase, with the balance of $4.7 million representing organic growth of 10.6%. The impact of the acquisitions and operating leverage associated with our revenue growth led to a four-fold increase in our TL operating income and an improvement in our TL operating ratio to 92.2% from 95.7% in the fourth quarter of 2010.

“For our TMS business, continued organic growth during the quarter generated a $4.3 million, or 24.3%, increase in revenues and a 75.6% increase in operating income from the prior year. This growth drove improvement in our TMS operating ratio to 90.1% from 93.0% in the prior year.”

Also commenting on the quarter, Peter Armbruster, Chief Financial Officer, said, “Strong cash flow from operations during the quarter were used to repay $5.7 million of borrowings under our $100 million revolving line of credit and $3.5 million on our term loan. As of December 31, 2011, no borrowings were outstanding under the company’s revolver.”

2012 First Quarter Guidance

In commenting on guidance for the first quarter of 2012, Armbruster said, “We anticipate our revenues for the first quarter will be in the range of $225 million to $240 million representing an increase of 32% to 40% from the first quarter of 2011. Further, we expect diluted income per share available to common stockholders to be between $0.22 and $0.24, compared to diluted income per share available to common stockholders of $0.14 in the prior year quarter.”


2011 Fourth Quarter Segment Information

Roadrunner has three operating segments: less-than-truckload (LTL), truckload and logistics (TL) and transportation management solutions (TMS). The following highlights exclude intercompany eliminations and corporate expenses.

LTL revenues including fuel increased 12.8% to $118.5 million for the fourth quarter of 2011 from $105.1 million for the fourth quarter of 2010. LTL net revenues for the fourth quarter of 2011 were $29.4 million, or 24.8% of LTL revenues, compared to $25.7 million, or 24.4% of LTL revenues, for the fourth quarter of 2010. LTL operating income was $5.3 million, or 4.5% of LTL revenues, for the fourth quarter of 2011 compared to $4.2 million, or 4.0% of revenues, for the fourth quarter of 2010.

Summary LTL operating statistics for the three months and year ended December 31 are shown below.

 

       Three Months Ended December 31,     Year Ended December 31,  
                   %                 %  
       2011     2010     Change     2011     2010     Change  

Operating ratio

       95.5     96.0       94.8     94.7  

Tonnage (in thousands of tons)

       306.8        287.3        6.8     1,256.3        1,204.9        4.3

Shipments (in thousands)

       471.4        444.7        6.0     1,905.9        1,818.5        4.8

Revenue per hundredweight (incl. fuel)

     $ 18.81      $ 17.44        7.9   $ 18.27      $ 16.62        9.9

Revenue per hundredweight (excl. fuel)

     $ 15.42      $ 15.01        2.7   $ 15.00      $ 14.38        4.3

Weight per shipment (lbs.)

       1,302        1,292        0.7     1,318        1,325        (0.5 %) 

Linehaul cost per mile (excl. fuel)

     $ 1.24      $ 1.24        0.0   $ 1.24      $ 1.22        1.6

 

Note:

Other than operating ratio, the statistics above do not include (i) adjustments for undelivered freight required for financial statement purposes in accordance with RRTS’ revenue recognition policy; and (ii) non-LTL related business captured within the LTL segment.

For the TL segment, revenues increased 125.2% to $98.7 million for the fourth quarter of 2011 from $43.8 million for the fourth quarter of 2010. The improvement was primarily due to increases in market pricing and load growth, the expansion of the company’s TL brokerage agent network, and the acquisitions of Morgan Southern, Bruenger Trucking and Prime Logistics. For the fourth quarter, Morgan Southern, Bruenger Trucking and Prime Logistics collectively contributed revenues of $50.2 million to the TL segment. Overall, TL net revenues for the fourth quarter of 2011 were $34.8 million, or 35.3% of TL revenues, compared to $5.3 million, or 12.0% of TL revenues, for the fourth quarter of 2010. TL operating income was $7.7 million, or 7.8% of TL revenues, for the fourth quarter of 2011 compared to $1.9 million, or 4.3% of revenues, for the fourth quarter of 2010.

For the TMS segment, revenues for the fourth quarter of 2011 increased 24.3% to $22.0 million from $17.7 million for the fourth quarter of 2010. TMS net revenues for the fourth quarter of 2011 were $5.7 million, or 26.0% of TMS revenues, compared to $4.6 million, or 25.8% of TMS revenues, for the fourth quarter of 2010. TMS revenue growth during the quarter was primarily attributable to new and existing customer growth. TMS operating income was $2.2 million, or 9.9% of TMS revenues, for the fourth quarter of 2011, compared to $1.2 million, or 7.0% of TMS revenues, for the fourth quarter of 2010.

Conference Call

A conference call is scheduled for Wednesday, February 8, 2012 at 4:30 p.m. Eastern Time. To access the conference call, please dial 866-730-5771 (U.S.) or 857-350-1595 (International) approximately 10 minutes prior to the start of the call. Callers will be prompted for passcode 87140808. The conference call will also be available via live webcast under the Investor Relations section of the Company’s website, www.rrts.com.


If you are unable to listen to the live call, a replay will be available through February 15, 2012, and can be accessed by dialing 888-286-8010 (U.S.) or 617-801-6888 (International). Callers will be prompted for passcode 61129555. An archived version of the webcast will also be available under the Investor Relations section of the Company’s website, www.rrts.com.

About Roadrunner Transportation Systems, Inc.

Roadrunner is a leading asset-light transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload and logistics, transportation management solutions, intermodal solutions, and domestic and international air. For more information, please visit RRTS’ website, www.rrts.com.

Safe Harbor Statement

This release contains forward-looking statements that relate to future events or performance. These statements reflect the company’s current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the integration of acquired companies, competition in the transportation industry, the impact of the current economic environment, the company’s dependence upon purchased power, the unpredictability of and potential fluctuation in the price and availability of fuel, the effects of governmental and environmental regulations, insurance in excess of prior experience levels, and other “Risk Factors” set forth in the company’s most recent SEC filings.

(Tables Follow)


ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

September 30, September 30, September 30, September 30,
       Three Months Ended
December 31,
       Year Ended December 31,  
       2011        2010        2011        2010  

Revenues

     $ 238,005         $ 165,796         $ 843,627         $ 632,018   

Operating expenses:

                   

Purchased transportation costs

       168,057           130,313           620,343           494,045   

Personnel and related benefits

       25,522           16,339           87,178           61,853   

Other operating expenses

       29,124           11,545           83,625           41,168   

Depreciation and amortization

       1,597           750           4,978           3,114   

Acquisition transaction expenses

       430           180           1,368           569   

IPO related expenses

       —             —             —             1,500   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total operating expenses

       224,730           159,127           797,492           602,249   
    

 

 

      

 

 

      

 

 

      

 

 

 

Operating income

       13,275           6,669           46,135           29,769   

Interest expense:

                   

Interest on long-term debt

       2,079           202           4,135           7,954   

Dividends on preferred stock subject to mandatory redemption

       50           50           200           200   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total interest expense

       2,129           252           4,335           8,154   
    

 

 

      

 

 

      

 

 

      

 

 

 

Loss on early extinguishment of debt

       —             —             —             15,916   
    

 

 

      

 

 

      

 

 

      

 

 

 

Income before provision for income taxes

       11,146           6,417           41,800           5,699   

Provision for income taxes

       4,281           2,540           15,929           2,108   
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income

       6,865           3,877           25,871           3,591   

Accretion of Series B preferred stock

       —             —             —             765   
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income available to common stockholders

     $ 6,865         $ 3,877         $ 25,871         $ 2,826   
    

 

 

      

 

 

      

 

 

      

 

 

 

Earnings per share available to common stockholders:

                   

Basic

     $ 0.22         $ 0.13         $ 0.85         $ 0.11   
    

 

 

      

 

 

      

 

 

      

 

 

 

Diluted

     $ 0.22         $ 0.12         $ 0.82         $ 0.11   
    

 

 

      

 

 

      

 

 

      

 

 

 

Weighted average common stock outstanding:

                   

Basic

       30,706           30,119           30,432           25,779   
    

 

 

      

 

 

      

 

 

      

 

 

 

Diluted

       31,765           31,066           31,545           26,777   
    

 

 

      

 

 

      

 

 

      

 

 

 


ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except share amounts)

 

September 30, September 30,
       December 31,
2011
       December 31,
2010
 

ASSETS

         

CURRENT ASSETS:

         

Cash and cash equivalents

     $ 3,315         $ 996   

Accounts receivable, net

       102,358           73,222   

Deferred income taxes

       9,472           6,367   

Prepaid expenses and other current assets

       16,400           10,414   
    

 

 

      

 

 

 

Total current assets

       131,545           90,999   
    

 

 

      

 

 

 

PROPERTY AND EQUIPMENT, NET

       28,447           6,894   

OTHER ASSETS:

         

Goodwill

       364,347           246,888   

Other noncurrent assets

       19,014           3,516   
    

 

 

      

 

 

 

Total other assets

       383,361           250,404   
    

 

 

      

 

 

 

TOTAL ASSETS

     $ 543,353         $ 348,297   
    

 

 

      

 

 

 

LIABILITIES AND STOCKHOLDERS’ INVESTMENT

         

CURRENT LIABILITIES:

         

Current maturities of long-term debt

     $ 14,000         $ —     

Accounts payable

       50,245           37,241   

Accrued expenses and other liabilities

       19,480           11,375   

Preferred stock subject to mandatory redemption

       5,000           —     
    

 

 

      

 

 

 

Total current liabilities

       88,725           48,616   

LONG-TERM DEBT, net of current maturities

       122,500           20,500   

OTHER LONG-TERM LIABILITIES

       36,175           8,492   

PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION

       —             5,000   
    

 

 

      

 

 

 

Total liabilities

       247,400           82,608   
    

 

 

      

 

 

 

STOCKHOLDERS’ INVESTMENT:

         

Common stock $.01 par value; 100,000 shares authorized; 30,705 and 30,147 shares issued and outstanding

       301           301   

Additional paid-in capital

       266,481           262,088   

Retained earnings

       29,171           3,300   
    

 

 

      

 

 

 

Total stockholders’ investment

       295,953           265,689   
    

 

 

      

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ INVESTMENT

     $ 543,353         $ 348,297   
    

 

 

      

 

 

 

Contact

Roadrunner Transportation Systems, Inc.

Peter Armbruster

Chief Financial Officer

414-615-1648

Vollrath Associates, Inc.

Marilyn Vollrath

414-221-0210

ir@rrts.com