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 April 25, 2018. |
Exhibit No. | Description | |
99.1* |
ECHO GLOBAL LOGISTICS, INC. | ||
Dated: April 25, 2018 | By | /s/ Kyle Sauers |
Name: | Kyle Sauers | |
Title: | Chief Financial Officer |
• | Revenue increased 38.8% to $577.1 million from the first quarter of 2017 |
• | Truckload ("TL") (includes Partial TL) revenue increased 42.9% and less than truckload ("LTL") revenue increased 29.3% from the first quarter of 2017 |
• | Managed Transportation revenue increased 49.8% to $124.0 million and Transactional revenue increased 36.1% to $453.1 million from the first quarter of 2017 |
• | Net revenue(1) increased 34.1% to $99.9 million from the first quarter of 2017 |
• | Net income was $4.7 million in the first quarter of 2018, compared to a net loss of $2.9 million in the first quarter of 2017 |
• | Fully diluted EPS increased to $0.17 in the first quarter of 2018; non-GAAP fully diluted EPS(1) increased to $0.40 in the first quarter of 2018 |
• | Adjusted EBITDA(1) grew 119.5% to $22.0 million, compared to $10.0 million in the first quarter of 2017 |
Three Months Ended March 31, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | ||||||||
(unaudited) | |||||||||||
Transactional revenue | $ | 453.1 | $ | 333.0 | 36.1 | % | |||||
Managed Transportation revenue | 124.0 | 82.8 | 49.8 | % | |||||||
Revenue | 577.1 | 415.8 | 38.8 | % | |||||||
Transportation costs | 477.2 | 341.3 | 39.8 | % | |||||||
Net revenue (1) | 99.9 | 74.5 | 34.1 | % | |||||||
Commission expense | 30.2 | 22.4 | 35.0 | % | |||||||
Change in contingent consideration | 0.1 | 0.1 | (45.3 | )% | |||||||
Stock compensation expense | 2.5 | 2.7 | (5.3 | )% | |||||||
Other selling, general and administrative | 47.8 | 42.1 | 13.4 | % | |||||||
Selling, general and administrative expenses | 80.5 | 67.2 | 19.8 | % | |||||||
Depreciation | 5.7 | 4.5 | 26.9 | % | |||||||
Amortization | 3.2 | 3.6 | (9.3 | )% | |||||||
Depreciation and amortization | 8.9 | 8.0 | 10.8 | % | |||||||
Income (Loss) from operations | 10.5 | (0.8 | ) | NM | |||||||
Cash interest expense | 1.7 | 1.7 | 0.5 | % | |||||||
Non-cash interest expense | 2.1 | 2.0 | 5.9 | % | |||||||
Interest expense, net | 3.8 | 3.6 | 3.5 | % | |||||||
Income (Loss) before provision for income taxes | 6.7 | (4.4 | ) | NM | |||||||
Income tax (expense) benefit | (2.0 | ) | 1.5 | NM | |||||||
Net income (loss) | $ | 4.7 | $ | (2.9 | ) | NM | |||||
Fully diluted earnings (loss) per share | $ | 0.17 | $ | (0.10 | ) | NM | |||||
Diluted shares(1)(2) | 27.7 | 28.2 | |||||||||
Note: Amounts may not foot due to rounding. | |||||||||||
(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 March 31, 2017, 423,796 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 was 28,579,093. |
Reconciliation of Non-GAAP Financial Measures | Three Months Ended March 31, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | |||||||||
(unaudited) | ||||||||||||
Revenue | $ | 577.1 | $ | 415.8 | 38.8 | % | ||||||
Transportation costs | 477.2 | 341.3 | 39.8 | % | ||||||||
Net revenue (1) | $ | 99.9 | $ | 74.5 | 34.1 | % | ||||||
Net income (loss) | $ | 4.7 | $ | (2.9 | ) | NM | ||||||
Depreciation | 5.7 | 4.5 | 26.9 | % | ||||||||
Amortization | 3.2 | 3.6 | (9.3 | )% | ||||||||
Non-cash interest expense | 2.1 | 2.0 | 5.9 | % | ||||||||
Cash interest expense | 1.7 | 1.7 | 0.5 | % | ||||||||
Income tax expense (benefit) | 2.0 | (1.5 | ) | NM | ||||||||
EBITDA (1) | $ | 19.4 | $ | 7.3 | 167.3 | % | ||||||
Change in contingent consideration | 0.1 | 0.1 | (45.3 | )% | ||||||||
Stock compensation expense | 2.5 | 2.7 | (5.3 | )% | ||||||||
Adjusted EBITDA (1) | $ | 22.0 | $ | 10.0 | 119.5 | % | ||||||
Fully diluted earnings (loss) per share | $ | 0.17 | $ | (0.10 | ) | NM | ||||||
Change in contingent consideration | 0.00 | 0.00 | (43.7 | )% | ||||||||
Amortization | 0.12 | 0.13 | (6.5 | )% | ||||||||
Non-cash interest expense | 0.08 | 0.07 | 9.2 | % | ||||||||
Stock compensation expense | 0.09 | 0.09 | (2.4 | )% | ||||||||
Tax effect of adjustments | (0.06 | ) | (0.10 | ) | 43.8 | % | ||||||
Non-GAAP fully diluted EPS (1)(2) | $ | 0.40 | $ | 0.09 | 345.6 | % | ||||||
Operating Metrics | ||||||||||||
Net revenue margin | 17.3 | % | 17.9 | % | (60 | ) | bps | |||||
Total employees | 2,507 | 2,415 | 3.8 | % | ||||||||
Sales employees and agents | 1,684 | 1,643 | 2.5 | % | ||||||||
Truckload (TL) revenue % | 69.4 | % | 67.4 | % | 197 | bps | ||||||
Less than truckload (LTL) revenue % | 25.5 | % | 27.4 | % | (187 | ) | bps | |||||
Note: Amounts may not foot due to rounding. | ||||||||||||
(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 March 31, 2017, 423,796 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 was 28,579,093. |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
In thousands, except per share data | (unaudited) | ||||||
Revenue | $ | 577,091 | $ | 415,752 | |||
Costs and expenses: | |||||||
Transportation costs | 477,168 | 341,254 | |||||
Selling, general and administrative expenses | 80,518 | 67,237 | |||||
Depreciation and amortization | 8,905 | 8,038 | |||||
Income (Loss) from operations | 10,500 | (777 | ) | ||||
Interest expense | (3,750 | ) | (3,624 | ) | |||
Income (Loss) before provision for income taxes | 6,749 | (4,401 | ) | ||||
Income tax (expense) benefit | (2,023 | ) | 1,529 | ||||
Net income (loss) | $ | 4,727 | $ | (2,872 | ) | ||
Basic earnings (loss) per share | $ | 0.17 | $ | (0.10 | ) | ||
Diluted earnings (loss) per share | $ | 0.17 | $ | (0.10 | ) | ||
Note: Amounts may not foot due to rounding. |
March 31, 2018 | December 31, 2017 | ||||||
In thousands | (unaudited) | ||||||
Cash and cash equivalents | $ | 32,603 | $ | 23,515 | |||
Accounts receivable, net of allowance for doubtful accounts | 345,727 | 309,733 | |||||
Other current assets | 14,789 | 15,053 | |||||
Total noncurrent assets | 487,078 | 489,778 | |||||
Total assets | $ | 880,197 | $ | 838,079 | |||
Accounts payable | $ | 226,138 | $ | 193,749 | |||
Other current liabilities | 40,295 | 40,579 | |||||
Convertible notes, net | 212,831 | 210,919 | |||||
Other noncurrent liabilities | 34,831 | 33,960 | |||||
Stockholders’ equity | 366,101 | 358,872 | |||||
Total liabilities and stockholders’ equity | $ | 880,197 | $ | 838,079 | |||
Note: Amounts may not foot due to rounding. |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
In thousands | (unaudited) | ||||||
Net cash provided by operating activities | $ | 17,684 | $ | 13,865 | |||
Net cash used in investing activities | (7,612 | ) | (4,045 | ) | |||
Net cash used in financing activities | (984 | ) | (2,211 | ) | |||
Increase in cash and cash equivalents | 9,088 | 7,609 | |||||
Cash and cash equivalents, beginning of period | 23,515 | 16,646 | |||||
Cash and cash equivalents, end of period | $ | 32,603 | $ | 24,255 |
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