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 July 25, 2018. |
Exhibit No. | Description | |
99.1* |
ECHO GLOBAL LOGISTICS, INC. | ||
Dated: July 25, 2018 | By | /s/ Kyle Sauers |
Name: | Kyle Sauers | |
Title: | Chief Financial Officer |
• | Revenue increased 35.0% to $634.8 million from the second quarter of 2017 |
• | Truckload ("TL") (includes Partial TL) revenue increased 41.0% and less than truckload ("LTL") revenue increased 23.6% from the second quarter of 2017 |
• | Transactional revenue increased 35.4% to $502.8 million and Managed Transportation revenue increased 33.8% to $132.0 million from the second quarter of 2017 |
• | Net revenue(1) increased 30.8% to $106.8 million from the second quarter of 2017 |
• | Net income increased to $7.7 million, compared to a net loss of $0.2 million in the second quarter of 2017 |
• | Fully diluted EPS increased to $0.28 in the second quarter of 2018; non-GAAP fully diluted EPS(1) increased to $0.46 in the second quarter of 2018 |
• | Adjusted EBITDA(1) grew 74.0% to $24.4 million, compared to $14.0 million in the second quarter of 2017 |
Three Months Ended June 30, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | ||||||||
(unaudited) | |||||||||||
Transactional revenue | $ | 502.8 | $ | 371.4 | 35.4 | % | |||||
Managed Transportation revenue | 132.0 | 98.7 | 33.8 | % | |||||||
Revenue | 634.8 | 470.1 | 35.0 | % | |||||||
Transportation costs | 528.0 | 388.5 | 35.9 | % | |||||||
Net revenue (1) | 106.8 | 81.6 | 30.8 | % | |||||||
Commission expense | 32.4 | 24.7 | 30.8 | % | |||||||
Change in contingent consideration | 0.1 | 0.2 | (74.3 | )% | |||||||
Stock compensation expense | 2.2 | 2.4 | (8.4 | )% | |||||||
Other selling, general and administrative | 50.0 | 42.8 | 16.7 | % | |||||||
Selling, general and administrative expenses | 84.6 | 70.2 | 20.6 | % | |||||||
Depreciation | 5.8 | 4.4 | 31.6 | % | |||||||
Amortization | 3.2 | 3.6 | (9.5 | )% | |||||||
Depreciation and amortization | 9.0 | 8.0 | 13.3 | % | |||||||
Income from operations | 13.1 | 3.4 | 281.3 | % | |||||||
Cash interest expense | 1.6 | 1.7 | (2.5 | )% | |||||||
Non-cash interest expense | 2.1 | 2.0 | 5.9 | % | |||||||
Interest expense | 3.8 | 3.7 | 2.1 | % | |||||||
Income (Loss) before provision for income taxes | 9.4 | (0.2 | ) | NM | |||||||
Income tax expense | (1.7 | ) | (0.0 | ) | NM | ||||||
Net income (loss) | $ | 7.7 | $ | (0.2 | ) | NM | |||||
Fully diluted earnings (loss) per share | $ | 0.28 | $ | (0.01 | ) | NM | |||||
Diluted shares(1)(2) | 27.9 | 28.0 | |||||||||
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 June 30, 2017, 239,440 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 28,255,562. |
Reconciliation of Non-GAAP Financial Measures | Three Months Ended June 30, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | |||||||||
(unaudited) | ||||||||||||
Revenue | $ | 634.8 | $ | 470.1 | 35.0 | % | ||||||
Transportation costs | 528.0 | 388.5 | 35.9 | % | ||||||||
Net revenue (1) | $ | 106.8 | $ | 81.6 | 30.8 | % | ||||||
Net income (loss) | $ | 7.7 | $ | (0.2 | ) | NM | ||||||
Depreciation | 5.8 | 4.4 | 31.6 | % | ||||||||
Amortization | 3.2 | 3.6 | (9.5 | )% | ||||||||
Non-cash interest expense | 2.1 | 2.0 | 5.9 | % | ||||||||
Cash interest expense | 1.6 | 1.7 | (2.5 | )% | ||||||||
Income tax expense | 1.7 | 0.0 | NM | |||||||||
EBITDA (1) | $ | 22.1 | $ | 11.4 | 94.0 | % | ||||||
Change in contingent consideration | 0.1 | 0.2 | (74.3 | )% | ||||||||
Stock compensation expense | 2.2 | 2.4 | (8.4 | )% | ||||||||
Adjusted EBITDA (1) | $ | 24.4 | $ | 14.0 | 74.0 | % | ||||||
Fully diluted earnings (loss) per share | $ | 0.28 | $ | (0.01 | ) | NM | ||||||
Change in contingent consideration | 0.00 | 0.01 | (73.9 | )% | ||||||||
Amortization | 0.12 | 0.13 | (8.2 | )% | ||||||||
Non-cash interest expense | 0.08 | 0.07 | 7.4 | % | ||||||||
Stock compensation expense | 0.08 | 0.09 | (7.1 | )% | ||||||||
Tax effect of adjustments | (0.09 | ) | (0.10 | ) | 14.8 | % | ||||||
Non-GAAP fully diluted EPS (1)(2) | $ | 0.46 | $ | 0.18 | 160.1 | % | ||||||
Operating Metrics | ||||||||||||
Net revenue margin | 16.8 | % | 17.4 | % | (54 | ) | bps | |||||
Total employees | 2,584 | 2,466 | 4.8 | % | ||||||||
Sales employees and agents | 1,726 | 1,671 | 3.3 | % | ||||||||
Truckload (TL) revenue % | 69.9 | % | 66.9 | % | 296 | bps | ||||||
Less than truckload (LTL) revenue % | 25.3 | % | 27.6 | % | (234 | ) | 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 June 30, 2017, 239,440 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 28,255,562. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
In thousands, except per share data | (unaudited) | (unaudited) | |||||||||||||
Revenue | $ | 634,811 | $ | 470,086 | $ | 1,211,902 | $ | 885,838 | |||||||
Costs and expenses: | |||||||||||||||
Transportation costs | 528,022 | 388,473 | 1,005,190 | 729,727 | |||||||||||
Selling, general and administrative expenses | 84,644 | 70,199 | 165,162 | 137,436 | |||||||||||
Depreciation and amortization | 9,033 | 7,976 | 17,939 | 16,014 | |||||||||||
Income from operations | 13,112 | 3,439 | 23,612 | 2,661 | |||||||||||
Interest expense | (3,754 | ) | (3,677 | ) | (7,504 | ) | (7,302 | ) | |||||||
Income (Loss) before provision for income taxes | 9,358 | (239 | ) | 16,107 | (4,640 | ) | |||||||||
Income tax (expense) benefit | (1,680 | ) | (6 | ) | (3,702 | ) | 1,523 | ||||||||
Net income (loss) | $ | 7,678 | $ | (245 | ) | $ | 12,405 | $ | (3,117 | ) | |||||
Basic earnings (loss) per share | $ | 0.28 | $ | (0.01 | ) | $ | 0.45 | $ | (0.11 | ) | |||||
Diluted earnings (loss) per share | $ | 0.28 | $ | (0.01 | ) | $ | 0.45 | $ | (0.11 | ) | |||||
Note: Amounts may not foot due to rounding. |
June 30, 2018 | December 31, 2017 | ||||||
In thousands | (unaudited) | ||||||
Cash and cash equivalents | $ | 44,656 | $ | 23,515 | |||
Accounts receivable, net of allowance for doubtful accounts | 393,300 | 309,733 | |||||
Other current assets | 17,243 | 15,053 | |||||
Total noncurrent assets | 484,580 | 489,778 | |||||
Total assets | $ | 939,780 | $ | 838,079 | |||
Accounts payable | $ | 267,278 | $ | 193,749 | |||
Other current liabilities | 44,456 | 40,579 | |||||
Convertible notes, net | 214,774 | 210,919 | |||||
Other noncurrent liabilities | 35,055 | 33,960 | |||||
Stockholders’ equity | 378,218 | 358,872 | |||||
Total liabilities and stockholders’ equity | $ | 939,780 | $ | 838,079 | |||
Note: Amounts may not foot due to rounding. |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
In thousands | (unaudited) | ||||||
Net cash provided by operating activities | $ | 34,680 | $ | 25,125 | |||
Net cash used in investing activities | (14,231 | ) | (9,549 | ) | |||
Net cash provided by (used in) financing activities | 693 | (12,192 | ) | ||||
Increase in cash and cash equivalents | 21,141 | 3,385 | |||||
Cash and cash equivalents, beginning of period | 23,515 | 16,646 | |||||
Cash and cash equivalents, end of period | $ | 44,656 | $ | 20,031 | |||
Note: Amounts may not foot due to rounding. |
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