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 October 24, 2018. |
Exhibit No. | Description | |
99.1* |
ECHO GLOBAL LOGISTICS, INC. | ||
Dated: October 24, 2018 | By | /s/ Kyle Sauers |
Name: | Kyle Sauers | |
Title: | Chief Financial Officer |
• | Revenue increased 26.6% to $644.8 million from the third quarter of 2017 |
• | Truckload ("TL") (includes Partial TL) revenue increased 28.3% and less than truckload ("LTL") revenue increased 22.6% from the third quarter of 2017 |
• | Transactional revenue increased 27.2% to $510.3 million and Managed Transportation revenue increased 24.1% to $134.5 million from the third quarter of 2017 |
• | Net revenue(1) increased 28.3% to $111.2 million from the third quarter of 2017 |
• | Net income increased to $9.4 million, compared to $2.4 million in the third quarter of 2017 |
• | Fully diluted EPS increased to $0.33 in the third quarter of 2018; non-GAAP fully diluted EPS(1) increased to $0.55 in the third quarter of 2018 |
• | Adjusted EBITDA(1) grew 68.3% to $28.2 million, compared to $16.8 million in the third quarter of 2017 |
Three Months Ended September 30, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | ||||||||
(unaudited) | |||||||||||
Transactional revenue | $ | 510.3 | $ | 401.2 | 27.2 | % | |||||
Managed Transportation revenue | 134.5 | 108.4 | 24.1 | % | |||||||
Revenue | 644.8 | 509.5 | 26.6 | % | |||||||
Transportation costs | 533.6 | 422.8 | 26.2 | % | |||||||
Net revenue (1) | 111.2 | 86.7 | 28.3 | % | |||||||
Commission expense | 33.2 | 26.5 | 25.4 | % | |||||||
Change in contingent consideration | 0.1 | 0.3 | (83.6 | )% | |||||||
Acquisition-related transaction costs | 0.3 | — | 100.0 | % | |||||||
Stock compensation expense | 2.4 | 2.0 | 15.8 | % | |||||||
Other selling, general and administrative | 49.9 | 43.5 | 14.6 | % | |||||||
Selling, general and administrative expenses | 85.7 | 72.3 | 18.6 | % | |||||||
Depreciation | 6.0 | 4.6 | 30.5 | % | |||||||
Amortization | 3.3 | 3.6 | (8.0 | )% | |||||||
Depreciation and amortization | 9.2 | 8.1 | 13.6 | % | |||||||
Income from operations | 16.3 | 6.3 | 158.7 | % | |||||||
Cash interest expense | 1.6 | 1.6 | (0.9 | )% | |||||||
Non-cash interest expense | 2.2 | 2.0 | 6.0 | % | |||||||
Interest expense, net | 3.8 | 3.7 | 2.9 | % | |||||||
Income before provision for income taxes | 12.5 | 2.6 | 377.5 | % | |||||||
Income tax expense | (3.1 | ) | (0.2 | ) | NM | ||||||
Net income | $ | 9.4 | $ | 2.4 | 292.3 | % | |||||
Fully diluted EPS | $ | 0.33 | $ | 0.09 | 284.2 | % | |||||
Diluted shares(1) | 28.2 | 27.6 | |||||||||
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. |
Reconciliation of Non-GAAP Financial Measures | Three Months Ended September 30, | |||||||||||
Dollars in millions, except per share data | 2018 | 2017 | % change | |||||||||
(unaudited) | ||||||||||||
Revenue | $ | 644.8 | $ | 509.5 | 26.6 | % | ||||||
Transportation costs | 533.6 | 422.8 | 26.2 | % | ||||||||
Net revenue (1) | $ | 111.2 | $ | 86.7 | 28.3 | % | ||||||
Net income | $ | 9.4 | $ | 2.4 | 292.3 | % | ||||||
Depreciation | 6.0 | 4.6 | 30.5 | % | ||||||||
Amortization | 3.3 | 3.6 | (8.0 | )% | ||||||||
Non-cash interest expense | 2.2 | 2.0 | 6.0 | % | ||||||||
Cash interest expense | 1.6 | 1.6 | (0.9 | )% | ||||||||
Income tax expense | 3.1 | 0.2 | NM | |||||||||
EBITDA (1) | $ | 25.5 | $ | 14.4 | 76.9 | % | ||||||
Acquisition-related transaction costs | 0.3 | — | 100.0 | % | ||||||||
Change in contingent consideration | 0.1 | 0.3 | (83.6 | )% | ||||||||
Stock compensation expense | 2.4 | 2.0 | 15.8 | % | ||||||||
Adjusted EBITDA (1) | $ | 28.2 | $ | 16.8 | 68.3 | % | ||||||
Fully diluted EPS | $ | 0.33 | $ | 0.09 | 284.2 | % | ||||||
Change in contingent consideration | 0.00 | 0.01 | (83.9 | )% | ||||||||
Amortization | 0.12 | 0.13 | (9.9 | )% | ||||||||
Acquisition-related transaction costs | 0.01 | — | 100.0 | % | ||||||||
Non-cash interest expense | 0.08 | 0.07 | 3.7 | % | ||||||||
Stock compensation expense | 0.08 | 0.07 | 13.4 | % | ||||||||
Tax effect of adjustments | (0.07 | ) | (0.11 | ) | 31.5 | % | ||||||
Non-GAAP fully diluted EPS (1) | $ | 0.55 | $ | 0.27 | 105.4 | % | ||||||
Operating Metrics | ||||||||||||
Net revenue margin | 17.2 | % | 17.0 | % | 23 | bps | ||||||
Total employees | 2,651 | 2,472 | 7.2 | % | ||||||||
Sales employees and agents | 1,761 | 1,679 | 4.9 | % | ||||||||
Truckload (TL) revenue % | 69.1 | % | 68.2 | % | 95 | bps | ||||||
Less than truckload (LTL) revenue % | 25.8 | % | 26.6 | % | (83 | ) | 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. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
In thousands, except per share data | (unaudited) | (unaudited) | |||||||||||||
Revenue | $ | 644,821 | $ | 509,531 | $ | 1,856,723 | $ | 1,395,368 | |||||||
Costs and expenses: | |||||||||||||||
Transportation costs | 533,601 | 422,830 | 1,538,791 | 1,152,556 | |||||||||||
Selling, general and administrative expenses | 85,709 | 72,284 | 250,871 | 209,720 | |||||||||||
Depreciation and amortization | 9,230 | 8,124 | 27,168 | 24,139 | |||||||||||
Income from operations | 16,281 | 6,293 | 39,893 | 8,954 | |||||||||||
Interest expense, net | (3,780 | ) | (3,675 | ) | (11,284 | ) | (10,976 | ) | |||||||
Income (Loss) before provision for income taxes | 12,501 | 2,618 | 28,609 | (2,022 | ) | ||||||||||
Income tax (expense) benefit | (3,118 | ) | (226 | ) | (6,821 | ) | 1,297 | ||||||||
Net income (loss) | $ | 9,383 | $ | 2,392 | $ | 21,788 | $ | (726 | ) | ||||||
Basic earnings (loss) per share | $ | 0.34 | $ | 0.09 | $ | 0.79 | $ | (0.03 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.33 | $ | 0.09 | $ | 0.78 | $ | (0.03 | ) | ||||||
Note: Amounts may not foot due to rounding. |
September 30, 2018 | December 31, 2017 | ||||||
In thousands | (unaudited) | ||||||
Cash and cash equivalents | $ | 60,542 | $ | 23,515 | |||
Accounts receivable, net of allowance for doubtful accounts | 385,059 | 309,733 | |||||
Other current assets | 13,454 | 15,053 | |||||
Total noncurrent assets | 488,345 | 489,778 | |||||
Total assets | $ | 947,400 | $ | 838,079 | |||
Accounts payable | $ | 252,483 | $ | 193,749 | |||
Other current liabilities | 52,239 | 40,579 | |||||
Convertible notes, net | 216,748 | 210,919 | |||||
Other noncurrent liabilities | 34,916 | 33,960 | |||||
Stockholders’ equity | 391,014 | 358,872 | |||||
Total liabilities and stockholders’ equity | $ | 947,400 | $ | 838,079 | |||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
In thousands | (unaudited) | ||||||
Net cash provided by operating activities | $ | 63,009 | $ | 41,215 | |||
Net cash used in investing activities | (27,220 | ) | (14,745 | ) | |||
Net cash provided by (used in) financing activities | 1,239 | (21,904 | ) | ||||
Increase in cash and cash equivalents | 37,028 | 4,566 | |||||
Cash and cash equivalents, beginning of period | 23,515 | 16,646 | |||||
Cash and cash equivalents, end of period | $ | 60,542 | $ | 21,213 | |||
Note: Amounts may not foot due to rounding. |
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