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 24, 2019. |
Exhibit No. | Description | |
99.1* |
ECHO GLOBAL LOGISTICS, INC. | ||
Dated: July 24, 2019 | By | /s/ Kyle Sauers |
Name: | Kyle Sauers | |
Title: | Chief Financial Officer |
• | Revenue decreased 12.8% to $553.8 million from the second quarter of 2018; Net revenue(1) decreased 5.8% to $100.6 million from the second quarter of 2018 |
• | LTL revenue increased 2.8% from the second quarter of 2018 |
• | Managed Transportation revenue decreased 4.9% to $125.6 million and Transactional revenue decreased 14.8% to $428.2 million from the second quarter of 2018 |
• | Net revenue margin increased to 18.2% in the second quarter of 2019 from 16.8% in the second quarter of 2018 |
• | Net income decreased to $5.1 million, compared to $7.7 million in the second quarter of 2018 |
• | Fully diluted EPS decreased to $0.19 in the second quarter of 2019; non-GAAP fully diluted EPS(1) decreased to $0.42 in the second quarter of 2019 |
• | Adjusted EBITDA(1) declined 5.4% to $23.1 million, compared to $24.4 million in the second quarter of 2018 |
• | Free cash flow(1) increased to $20.3 million, up 78.8% from the prior year |
Three Months Ended June 30, | |||||||||||
Dollars in millions, except per share data | 2019 | 2018 | % change | ||||||||
(unaudited) | |||||||||||
Transactional revenue | $ | 428.2 | $ | 502.8 | (14.8 | )% | |||||
Managed Transportation revenue | 125.6 | 132.0 | (4.9 | )% | |||||||
Revenue | 553.8 | 634.8 | (12.8 | )% | |||||||
Transportation costs | 453.2 | 528.0 | (14.2 | )% | |||||||
Net revenue(1) | 100.6 | 106.8 | (5.8 | )% | |||||||
Commission expense | 31.1 | 32.4 | (4.0 | )% | |||||||
Change in contingent consideration | 0.2 | 0.1 | 300.0 | % | |||||||
Stock compensation expense | 2.4 | 2.2 | 9.1 | % | |||||||
Other selling, general and administrative | 46.5 | 50.0 | (7.1 | )% | |||||||
Selling, general and administrative expenses | 80.1 | 84.6 | (5.3 | )% | |||||||
Depreciation | 6.8 | 5.8 | 16.5 | % | |||||||
Amortization | 3.0 | 3.2 | (6.2 | )% | |||||||
Depreciation and amortization | 9.8 | 9.0 | 8.4 | % | |||||||
Income from operations | 10.7 | 13.1 | (18.6 | )% | |||||||
Cash interest expense | 1.3 | 1.6 | (17.6 | )% | |||||||
Non-cash interest expense | 2.2 | 2.1 | 4.1 | % | |||||||
Interest expense | 3.6 | 3.8 | (5.3 | )% | |||||||
Income before provision for income taxes | 7.1 | 9.4 | (23.9 | )% | |||||||
Income tax expense | (2.1 | ) | (1.7 | ) | 22.0 | % | |||||
Net income | $ | 5.1 | $ | 7.7 | (34.0 | )% | |||||
Fully diluted EPS | $ | 0.19 | $ | 0.28 | (31.3 | )% | |||||
Diluted shares(1) | 26.8 | 27.9 | |||||||||
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 release. |
Reconciliation of Non-GAAP Financial Measures | Three Months Ended June 30, | |||||||||||
Dollars in millions, except per share data | 2019 | 2018 | % change | |||||||||
(unaudited) | ||||||||||||
Revenue | $ | 553.8 | $ | 634.8 | (12.8 | )% | ||||||
Transportation costs | 453.2 | 528.0 | (14.2 | )% | ||||||||
Net revenue(1) | $ | 100.6 | $ | 106.8 | (5.8 | )% | ||||||
Net income | $ | 5.1 | $ | 7.7 | (34.0 | )% | ||||||
Depreciation | 6.8 | 5.8 | 16.5 | % | ||||||||
Amortization | 3.0 | 3.2 | (6.2 | )% | ||||||||
Non-cash interest expense | 2.2 | 2.1 | 4.1 | % | ||||||||
Cash interest expense | 1.3 | 1.6 | (17.6 | )% | ||||||||
Income tax expense | 2.1 | 1.7 | 22.0 | % | ||||||||
EBITDA(1) | $ | 20.5 | $ | 22.1 | (7.6 | )% | ||||||
Change in contingent consideration | 0.2 | 0.1 | 300.0 | % | ||||||||
Stock compensation expense | 2.4 | 2.2 | 9.1 | % | ||||||||
Adjusted EBITDA(1) | $ | 23.1 | $ | 24.4 | (5.4 | )% | ||||||
Fully diluted EPS | $ | 0.19 | $ | 0.28 | (31.3 | )% | ||||||
Change in contingent consideration | 0.01 | 0.00 | 316.1 | % | ||||||||
Amortization | 0.11 | 0.12 | (2.4 | )% | ||||||||
Non-cash interest expense | 0.08 | 0.08 | 8.3 | % | ||||||||
Stock compensation expense | 0.09 | 0.08 | 13.5 | % | ||||||||
Tax effect of adjustments | (0.06 | ) | (0.09 | ) | (28.8 | )% | ||||||
Non-GAAP fully diluted EPS(1) | $ | 0.42 | $ | 0.46 | (8.9 | )% | ||||||
Cash generated from operations | $ | 27.1 | $ | 17.0 | 59.6 | % | ||||||
Capital expenditures | (6.8 | ) | (5.6 | ) | 20.7 | % | ||||||
Free cash flow(1) | $ | 20.3 | $ | 11.4 | 78.8 | % | ||||||
Operating Metrics | ||||||||||||
Net revenue margin | 18.2 | % | 16.8 | % | 134 | bps | ||||||
Total employees | 2,672 | 2,584 | 3.4 | % | ||||||||
Sales employees and agents | 1,805 | 1,726 | 4.6 | % | ||||||||
TL revenue % | 65.4 | % | 69.9 | % | (448 | ) | bps | |||||
LTL revenue % | 29.8 | % | 25.3 | % | 451 | bps | ||||||
Note: Amounts may not foot due to rounding. | ||||||||||||
(1)See the "Non-GAAP Financial Measures" section of this release for the definition and a discussion of each Non-GAAP financial measure. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
In thousands, except per share data | (unaudited) | (unaudited) | |||||||||||||
Revenue | $ | 553,775 | $ | 634,811 | $ | 1,091,858 | $ | 1,211,902 | |||||||
Costs and expenses: | |||||||||||||||
Transportation costs | 453,173 | 528,022 | 892,489 | 1,005,190 | |||||||||||
Selling, general and administrative expenses | 80,138 | 84,644 | 160,333 | 165,162 | |||||||||||
Depreciation and amortization | 9,793 | 9,033 | 19,261 | 17,939 | |||||||||||
Income from operations | 10,672 | 13,112 | 19,775 | 23,612 | |||||||||||
Interest expense | (3,555 | ) | (3,754 | ) | (6,968 | ) | (7,504 | ) | |||||||
Income before provision for income taxes | 7,117 | 9,358 | 12,807 | 16,107 | |||||||||||
Income tax expense | (2,050 | ) | (1,680 | ) | (4,244 | ) | (3,702 | ) | |||||||
Net income | $ | 5,067 | $ | 7,678 | $ | 8,564 | $ | 12,405 | |||||||
Basic earnings per share | $ | 0.19 | $ | 0.28 | $ | 0.32 | $ | 0.45 | |||||||
Diluted earnings per share | $ | 0.19 | $ | 0.28 | $ | 0.32 | $ | 0.45 | |||||||
Note: Amounts may not foot due to rounding. |
June 30, 2019 | December 31, 2018 | ||||||
In thousands | (unaudited) | ||||||
Cash and cash equivalents | $ | 16,022 | $ | 40,281 | |||
Accounts receivable, net of allowance for doubtful accounts | 321,680 | 337,426 | |||||
Other current assets | 12,034 | 16,025 | |||||
Total noncurrent assets | 498,307 | 484,593 | |||||
Total assets | $ | 848,044 | $ | 878,325 | |||
Accounts payable | $ | 220,035 | $ | 216,280 | |||
Other current liabilities | 42,116 | 50,627 | |||||
Convertible notes, net | 153,381 | 183,168 | |||||
Other noncurrent liabilities | 56,783 | 38,319 | |||||
Stockholders’ equity | 375,729 | 389,932 | |||||
Total liabilities and stockholders’ equity | $ | 848,044 | $ | 878,325 | |||
Note: Amounts may not foot due to rounding. |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
In thousands | (unaudited) | ||||||
Net cash provided by operating activities | $ | 51,206 | $ | 34,680 | |||
Net cash used in investing activities | (13,198 | ) | (14,231 | ) | |||
Net cash (used in) provided by financing activities | (62,266 | ) | 693 | ||||
(Decrease) Increase in cash and cash equivalents | (24,259 | ) | 21,141 | ||||
Cash and cash equivalents, beginning of period | 40,281 | 23,515 | |||||
Cash and cash equivalents, end of period | $ | 16,022 | $ | 44,656 | |||
Note: Amounts may not foot due to rounding. |
%L,;3-,XV9_@A%KCD*N%N$DDYNIB@O.BC$!:R#F(]H&
M_G,%"4S?$@/;%&DBX@8Q4@F"-5;(#65R@K -=:DYWHQQ:HX[HFS@4CB5/YQ,2FO
M8,F)>AF&3X2#?/=IYGZ\5WM3(_< DYLGY5_,PT9X;[?MBZE8_<0J/=OM2!P4
MJ;(_527>J0#IV:ZWB/3S@GVJ!Q.D:D8H!:EF:-Y\M"0