Delaware (State or other jurisdiction of incorporation) | 001-34470 (Commission File Number) | 20-5001120 (I.R.S. Employer Identification No.) |
600 West Chicago Avenue Suite 725 Chicago, Illinois (Address of principal executive offices) | 60654 (Zip Code) |
(d) | Exhibits: | |||
Exhibit No. | Description | |||
99.1* | Press Release dated February 07, 2018. |
Exhibit No. | Description | |
99.1* |
ECHO GLOBAL LOGISTICS, INC. | ||
Dated: February 07, 2018 | By | /s/ Kyle Sauers |
Name: | Kyle Sauers | |
Title: | Chief Financial Officer |
• | Revenue increased 34.6% to $547.7 million from the fourth quarter of 2016 |
• | Truckload ("TL") (includes Partial TL) revenue increased 38.2% and less than truckload ("LTL") revenue increased 29.7% from the fourth quarter of 2016 |
• | Net revenue(1) increased 34.2% to $96.2 million from the fourth quarter of 2016 |
• | Net income was $13.3 million in the fourth quarter of 2017, compared to net loss of $3.0 million in the fourth quarter of 2016 |
• | Income tax benefit of $8.9 million was recognized in the fourth quarter of 2017 as a result of the Tax Cuts and Jobs Act ("TCJA") |
• | Fully diluted EPS increased to $0.48 in the fourth quarter of 2017; non-GAAP fully diluted EPS(1) increased to $0.33 in the fourth quarter of 2017 |
• | Non-GAAP EBITDA(1) grew 130.5% to $21.0 million, compared to $9.1 million in the fourth quarter of 2016 |
• | Revenue increased 13.2% to $1.9 billion from 2016 |
• | TL revenue increased 13.9% and LTL revenue increased 15.1% from 2016 |
• | Net revenue(1) increased 6.4% to $339.0 million from 2016 |
• | Net income increased to $12.6 million from $1.6 million in 2016 |
• | Fully diluted EPS increased to $0.45 in 2017; non-GAAP fully diluted EPS(1) increased to $0.86 in 2017 |
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||
2017 | 2016 | % change | 2017 | 2016 | % change | ||||||||||||||||
Dollars in millions, except per share data | (unaudited) | (unaudited) | |||||||||||||||||||
Transactional revenue | $ | 433.2 | $ | 328.8 | 31.8 | % | $ | 1,538.8 | $ | 1,395.9 | 10.2 | % | |||||||||
Managed transportation revenue | 114.5 | 78.1 | 46.6 | % | 404.3 | 320.3 | 26.2 | % | |||||||||||||
Revenue | 547.7 | 406.9 | 34.6 | % | 1,943.1 | 1,716.2 | 13.2 | % | |||||||||||||
Transportation costs | 451.5 | 335.1 | 34.7 | % | 1,604.0 | 1,397.6 | 14.8 | % | |||||||||||||
Net revenue (1) | 96.2 | 71.7 | 34.2 | % | 339.0 | 318.6 | 6.4 | % | |||||||||||||
Commission expense | 29.5 | 21.7 | 35.9 | % | 103.1 | 95.6 | 7.8 | % | |||||||||||||
Change in contingent consideration | 0.4 | (0.0 | ) | NM | 1.0 | (0.1 | ) | NM | |||||||||||||
Stock compensation expense | 1.9 | 2.0 | (3.4) | % | 9.0 | 13.1 | (31.3) | % | |||||||||||||
Other selling, general and administrative | 45.7 | 40.9 | 11.8 | % | 174.1 | 162.2 | 7.4 | % | |||||||||||||
Selling, general and administrative expense | 77.5 | 64.5 | 20.1 | % | 287.2 | 270.8 | 6.1 | % | |||||||||||||
Depreciation | 5.1 | 4.6 | 10.9 | % | 18.5 | 16.3 | 13.2 | % | |||||||||||||
Amortization | 3.5 | 3.9 | (9.5) | % | 14.2 | 15.8 | (9.9) | % | |||||||||||||
Depreciation and amortization | 8.6 | 8.5 | 1.4 | % | 32.7 | 32.1 | 1.8 | % | |||||||||||||
Income (Loss) from operations | 10.1 | (1.3 | ) | 889.3 | % | 19.1 | 15.6 | 22.3 | % | ||||||||||||
Cash interest expense | 1.7 | 1.7 | 0.6 | % | 6.7 | 6.6 | 0.9 | % | |||||||||||||
Non-cash interest expense | 2.1 | 1.9 | 5.9 | % | 8.1 | 7.6 | 5.9 | % | |||||||||||||
Interest expense, net | 3.8 | 3.6 | 3.5 | % | 14.7 | 14.2 | 3.6 | % | |||||||||||||
Income (Loss) before provision for income taxes | 6.4 | (4.9 | ) | 229.6 | % | 4.3 | 1.4 | 214.4 | % | ||||||||||||
Income tax benefit | (7.0 | ) | (2.0 | ) | 257.4 | % | (8.3 | ) | (0.2 | ) | 3,917.1 | % | |||||||||
Net income (loss) | $ | 13.3 | $ | (3.0 | ) | 550.1 | % | $ | 12.6 | $ | 1.6 | 694.1 | % | ||||||||
Fully diluted earnings (loss) per share | $ | 0.48 | $ | (0.10 | ) | 560.1 | % | $ | 0.45 | $ | 0.05 | 730.3 | % | ||||||||
Diluted shares (1) (2) | 27.6 | 28.2 | 28.0 | 29.3 | |||||||||||||||||
(1) See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of this press release. | |||||||||||||||||||||
(2) For the three months ended December 31, 2016, 481,273 incremental shares related to stock-based awards were not included in the computation of diluted loss per share because of the net loss during the period. Diluted shares used in the reconciliation of non-GAAP fully diluted EPS for this period was 28,728,837. |
Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | 2017 | 2016 | % change | 2017 | 2016 | % change | ||||||||||||||||
Dollars in millions, except per share data | (unaudited) | (unaudited) | ||||||||||||||||||||
Revenue | $ | 547.7 | $ | 406.9 | 34.6 | % | $ | 1,943.1 | $ | 1,716.2 | 13.2 | % | ||||||||||
Transportation costs | 451.5 | 335.1 | 34.7 | % | 1,604.0 | 1,397.6 | 14.8 | % | ||||||||||||||
Net revenue (1) | $ | 96.2 | $ | 71.7 | 34.2 | % | $ | 339.0 | $ | 318.6 | 6.4 | % | ||||||||||
Net income (loss) | $ | 13.3 | $ | (3.0 | ) | 550.1 | % | $ | 12.6 | $ | 1.6 | 694.1 | % | |||||||||
Change in contingent consideration | 0.4 | (0.0 | ) | NM | 1.0 | (0.1 | ) | NM | ||||||||||||||
Depreciation | 5.1 | 4.6 | 10.9 | % | 18.5 | 16.3 | 13.2 | % | ||||||||||||||
Amortization | 3.5 | 3.9 | (9.5) | % | 14.2 | 15.8 | (9.9) | % | ||||||||||||||
Non-cash interest expense | 2.1 | 1.9 | 5.9 | % | 8.1 | 7.6 | 5.9 | % | ||||||||||||||
Stock compensation expense | 1.9 | 2.0 | (3.4) | % | 9.0 | 13.1 | (31.3) | % | ||||||||||||||
Cash interest expense | 1.7 | 1.7 | 0.6 | % | 6.7 | 6.6 | 0.9 | % | ||||||||||||||
Remeasurement of net deferred tax liability resulting from the TCJA | (8.9 | ) | — | NM | (8.9 | ) | — | NM | ||||||||||||||
Income tax expense (benefit) | 2.0 | (2.0 | ) | 200.8 | % | 0.7 | (0.2 | ) | 425.9 | % | ||||||||||||
Non-GAAP EBITDA (1) | $ | 21.0 | $ | 9.1 | 130.5 | % | $ | 61.8 | $ | 60.8 | 1.7 | % | ||||||||||
Fully diluted earnings (loss) per share | $ | 0.48 | $ | (0.10 | ) | 560.1 | % | $ | 0.45 | $ | 0.05 | 730.3 | % | |||||||||
Change in contingent consideration | 0.01 | (0.00 | ) | NM | 0.04 | (0.00 | ) | NM | ||||||||||||||
Amortization | 0.13 | 0.14 | (5.9) | % | 0.51 | 0.54 | (5.8) | % | ||||||||||||||
Non-cash interest expense | 0.07 | 0.07 | 10.1 | % | 0.29 | 0.26 | 10.8 | % | ||||||||||||||
Stock compensation expense | 0.07 | 0.07 | 0.4 | % | 0.32 | 0.45 | (28.2) | % | ||||||||||||||
Remeasurement of net deferred tax liability resulting from the TCJA | (0.32 | ) | — | NM | (0.32 | ) | — | NM | ||||||||||||||
Tax effect of adjustments | (0.12 | ) | (0.10 | ) | (12.8) | % | (0.43 | ) | (0.47 | ) | 8.7 | % | ||||||||||
Non-GAAP fully diluted EPS (1)(2) | $ | 0.33 | $ | 0.07 | 400.1 | % | $ | 0.86 | $ | 0.83 | 3.3 | % | ||||||||||
Operating Metrics | ||||||||||||||||||||||
Net revenue margin | 17.6 | % | 17.6 | % | (6 | ) | bps | 17.4 | % | 18.6 | % | (111 | ) | bps | ||||||||
Total employees | 2,453 | 2,350 | 4.4 | % | 2,453 | 2,350 | 4.4 | % | ||||||||||||||
Sales employees and agents | 1,641 | 1,611 | 1.9 | % | 1,641 | 1,611 | 1.9 | % | ||||||||||||||
Truckload (TL) revenue % | 69.4 | % | 67.6 | % | 179 | bps | 68.1 | % | 67.6 | % | 41 | bps | ||||||||||
Less than truckload (LTL) revenue % | 25.8 | % | 26.8 | % | (97 | ) | bps | 26.8 | % | 26.4 | % | 43 | bps | |||||||||
Intermodal revenue % | 3.1 | % | 3.9 | % | (83 | ) | bps | 3.5 | % | 4.3 | % | (79 | ) | bps | ||||||||
(1) See the "Non-GAAP Financial Measures" section of this Press Release for the definition and a discussion of each Non-GAAP financial measure. | ||||||||||||||||||||||
(2) For the three months ended December 31, 2016, 481,273 incremental shares related to stock-based awards were not included in the computation of diluted loss per share because of the net loss during the period. Diluted shares used in the reconciliation of non-GAAP fully diluted EPS for this period was 28,728,837. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 547,717,714 | $ | 406,852,800 | $ | 1,943,086,192 | $ | 1,716,152,159 | |||||||
Costs and expenses: | |||||||||||||||
Transportation costs | 451,489,146 | 335,145,220 | 1,604,045,563 | 1,397,577,664 | |||||||||||
Selling, general and administrative expenses | 77,507,909 | 64,524,296 | 287,227,430 | 270,826,387 | |||||||||||
Depreciation and amortization | 8,588,968 | 8,466,881 | 32,727,727 | 32,137,592 | |||||||||||
Income (Loss) from operations | 10,131,691 | (1,283,597 | ) | 19,085,472 | 15,610,516 | ||||||||||
Interest expense, net | (3,759,652 | ) | (3,634,142 | ) | (14,735,738 | ) | (14,226,796 | ) | |||||||
Income (Loss) before provision for income taxes | 6,372,039 | (4,917,739 | ) | 4,349,734 | 1,383,720 | ||||||||||
Income tax benefit | 6,976,917 | 1,951,987 | 8,273,495 | 205,958 | |||||||||||
Net income (loss) | $ | 13,348,956 | $ | (2,965,752 | ) | $ | 12,623,229 | $ | 1,589,678 | ||||||
Basic earnings (loss) per share | $ | 0.49 | $ | (0.10 | ) | $ | 0.46 | $ | 0.06 | ||||||
Diluted earnings (loss) per share | $ | 0.48 | $ | (0.10 | ) | $ | 0.45 | $ | 0.05 |
December 31, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Cash and cash equivalents | $ | 23,514,818 | $ | 16,646,089 | |||
Accounts receivable, net of allowance for doubtful accounts | 309,733,156 | 231,430,645 | |||||
Other current assets | 15,052,760 | 20,224,140 | |||||
Total noncurrent assets | 489,777,904 | 498,467,042 | |||||
Total assets | $ | 838,078,638 | $ | 766,767,916 | |||
Accounts payable | $ | 193,749,003 | $ | 135,386,424 | |||
Other current liabilities | 40,579,034 | 32,554,271 | |||||
Convertible notes, net | 210,918,935 | 203,564,011 | |||||
Other noncurrent liabilities | 33,959,730 | 37,113,480 | |||||
Stockholders’ equity | 358,871,936 | 358,149,730 | |||||
Total liabilities and stockholders’ equity | $ | 838,078,638 | $ | 766,767,916 |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(unaudited) | |||||||
Net cash provided by operating activities | $ | 48,715,680 | $ | 59,735,765 | |||
Net cash used in investing activities | (20,729,462 | ) | (46,887,769 | ) | |||
Net cash used in financing activities | (21,117,489 | ) | (52,724,101 | ) | |||
Increase (Decrease) in cash and cash equivalents | 6,868,729 | (39,876,105 | ) | ||||
Cash and cash equivalents, beginning of period | 16,646,089 | 56,522,194 | |||||
Cash and cash equivalents, end of period | $ | 23,514,818 | $ | 16,646,089 |
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