SOURCE: Roadrunner Transportation Systems

Roadrunner Transportation Systems

June 15, 2010 16:01 ET

Roadrunner Transportation Systems Reports 2010 First Quarter Results

CUDAHY, WI--(Marketwire - June 15, 2010) - Roadrunner Transportation Systems, Inc. (NYSE: RRTS), a leading non-asset based transportation and logistics services provider, today reported financial results for the first quarter ended March 31, 2010.

Simultaneous with the consummation of its May 2010 initial public offering ("IPO"), RRTS merged with Group Transportation Services Holdings, Inc. ("GTS"), thereby adding third-party logistics and transportation management solutions to RRTS' suite of services. The following table sets forth summary financial results for the first quarter ended March 31 for both RRTS standalone and combined RRTS and GTS assuming the merger occurred at the beginning of each of the periods presented:

(In thousands,
 except per share
 data)                   RRTS Standalone         Combined RRTS and GTS
                  Three Months Ended March 31, Three Months Ended March 31,
                    --------------------------- ---------------------------
                                           %                           %
                      2010      2009    Change     2010      2009   Change
                    --------- ---------  -----  --------- ---------  -----
Total revenues      $ 129,414 $ 104,434   23.9% $ 142,762 $ 110,524   29.2%
Net revenues (total
 revenues less
 purchased
 transportation
 costs)                28,466    22,290   27.7%    32,095    23,833   34.7%
Depreciation &
 amortization             684       546   25.3%       851       688   23.7%
Other operating
 expenses              21,157    19,633    7.8%    23,732    21,080   12.6%
Acquisition
 transaction
 expenses                 160         -     NM        332         -     NM
                    --------- ---------         --------- ---------
Operating income        6,465     2,111  206.3%     7,180     2,065  247.7%
Operating income
 before acquisition
 transaction
 expenses               6,625     2,111  213.8%     7,512     2,065  263.8%
Net income (loss)
 available to
 common
 stockholders       $     658 $  (1,014)    NM  $     942 $  (1,210)    NM
                    ========= =========         ========= =========
Weighted average
 diluted shares
 outstanding           15,750    15,110            19,023    17,469
Diluted income
 (loss) per share
 available
 to common
 stockholders       $    0.04 $   (0.07)        $    0.05 $   (0.07)
                    ========= =========         ========= =========

2010 First Quarter Results

First quarter 2010 standalone revenues of $129.4 million increased $25.0 million, or 23.9%, from $104.4 million during the first quarter of 2009. On a combined basis, revenues increased $32.3 million, or 29.2%, from $110.5 million during the first quarter of 2009 to $142.8 million during the first quarter of 2010.

Standalone operating income for the first quarter of 2010 was $6.5 million compared to $2.1 million for the first quarter of 2009. On a combined basis, operating income for the first quarter of 2010 was $7.2 million compared to $2.1 million for the first quarter of 2009. Excluding acquisition transaction expenses of $0.2 million, operating income for the first quarter of 2010 was $6.6 million on a standalone basis. On a combined basis excluding acquisition transaction expenses of $0.3 million, operating income for the first quarter of 2010 was $7.5 million.

Standalone net income available to common stockholders for the first quarter of 2010 was $0.7 million, or $0.04 per diluted share, compared to a net loss for first quarter 2009 of $1.0 million, or $(0.07) per diluted share. Combined net income available to common stockholders for the first quarter of 2010 was $0.9 million, or $0.05 per diluted share, compared to a net loss for first quarter 2009 of $1.2 million, or $(0.07) per diluted share.

On a pro forma combined basis, after giving effect to the sale of 9,000,000 shares in the IPO, net income available to common stockholders for the first quarter of 2010 would have been $4.1 million, or $0.14 per diluted share, based on 30,144,594 weighted average diluted shares outstanding. Net income was adjusted for the elimination of $4.2 million in interest expense (assuming the retirement of $115.0 million of our outstanding debt), the related tax impact of $1.6 million, the elimination of the accretion of the Series B preferred stock of $0.5 million for the quarter, and the conversion of the shares of Series B preferred stock into shares of common stock at the beginning of the quarter.

Mark DiBlasi, President and CEO of RRTS, said, "Our first quarter results slightly exceeded our preliminary estimates, primarily due to revenue increases resulting from positive new business trends and continued market share expansion. We see these trends continuing into the second quarter, resulting in expanded tonnage and improving yield."

2010 First Quarter Combined Segment Information

As a result of the GTS merger, RRTS now has three operating segments: less-than-truckload ("LTL"), truckload brokerage ("TL") and transportation management solutions ("TMS"). Set forth below is selected segment financial information reflecting combined RRTS and GTS operations (excluding intercompany eliminations and corporate expenses):

For the LTL segment, revenues for the first quarter of 2010 were $91.3 million, compared to $70.1 million for the first quarter of 2009. LTL operating income was $5.2 million for first quarter 2010, compared to $1.3 million for first quarter 2009.

For the TL segment, revenues for the first quarter of 2010 were $38.2 million, compared to $34.4 million for the first quarter of 2009. TL operating income was $1.5 million for first quarter 2010, compared to $1.0 million for first quarter 2009.

For the TMS segment, revenues for the first quarter 2010 were $13.7 million, compared to $6.4 million for the first quarter of 2009. TMS operating income was $1.0 million for first quarter 2010, compared to $0.1 million for first quarter 2009.

Conference Call

A conference call is scheduled for Tuesday, June 15, 2010 at 4:30 p.m. Eastern Time. To access the conference call, please dial 877-869-3847 (U.S.) or 201-689-8261 (international) approximately 10 minutes prior to the start of the call. The conference call will also be available via live webcast under the Investor Relations section of RRTS website, www.rrts.com.

If you are unable to listen to the live call, a replay will be available through June 22, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international). Callers will be prompted for replay account number 238# followed by conference ID number 351894#. An archived version of the webcast will also be available under the Investor Relations section of the Company's website, www.rrts.com.

About Roadrunner Transportation Systems, Inc.

RRTS is a leading non-asset based transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload, transportation management solutions and intermodal brokerage, and domestic and international air. For more information, please visit: www.rrts.com.

Safe Harbor Statement

This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, competition in the transportation industry, the impact of the current economic crisis, the company's dependence upon purchased power, the unpredictability of and potential fluctuation in the price and availability of fuel, the effects of governmental and environmental regulations, and other "Risk Factors" set forth in the company's most recent SEC filings.

                  ROADRUNNER TRANSPORTATION SYSTEMS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                 (In thousands, except per share amounts)


                                  RRTS Standalone     Combined RRTS & GTS
                                --------------------  --------------------
                                 Three Months Ended    Three Months Ended
                                      March 31,             March 31,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------- ---------  ---------- ---------

Revenues                        $  129,414 $ 104,434  $  142,762 $ 110,524
Operating expenses:
  Purchased transportation
   costs                           100,948    82,144     110,667    86,691
  Personnel and related
   benefits                         12,432    11,906      14,268    12,931
  Other operating expenses           8,725     7,727       9,464     8,149
  Depreciation and amortization        684       546         851       688
  Acquisition transaction
   expenses                            160         -         332         -
                                ---------- ---------  ---------- ---------
      Total operating expenses     122,949   102,323     135,582   108,459
                                ---------- ---------  ---------- ---------
Operating income                     6,465     2,111       7,180     2,065
Interest expense:
  Interest on long-term debt         4,385     2,862       4,577     3,012
  Adjustment to contingent
   purchase obligation                   -         -          65         -
  Dividends on preferred stock
   subject to mandatory
   redemption                           50        50          50        50
                                ---------- ---------  ---------- ---------
      Total interest expense         4,435     2,912       4,692     3,062
                                ---------- ---------  ---------- ---------
  Income (loss) before
   provision for income taxes        2,030      (801)      2,488      (997)
Provision (benefit) for income
 taxes                                 857      (232)      1,031      (232)
                                ---------- ---------  ---------- ---------
  Net income (loss)                  1,173      (569)      1,457      (765)
Accretion of Series B preferred
 stock                                 515       445         515       445
                                ---------- ---------  ---------- ---------
  Net income (loss) available
   to common stockholders       $      658 $  (1,014) $      942 $  (1,210)
                                ========== =========  ========== =========

Earnings (loss) per share
 available to common
 stockholders:
  Basic                         $     0.04 $   (0.07) $     0.05 $   (0.07)
                                ========== =========  ========== =========
  Diluted                       $     0.04 $   (0.07) $     0.05 $   (0.07)
                                ========== =========  ========== =========

Weighted average common stock
 outstanding:
  Basic                             15,110    15,110      18,275    17,469
                                ========== =========  ========== =========
  Diluted                           15,750    15,110      19,023    17,469
                                ========== =========  ========== =========





                  ROADRUNNER TRANSPORTATION SYSTEMS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
                              (In thousands)


                                  RRTS Standalone     Combined RRTS & GTS
                                --------------------  --------------------
                                  March    December     March    December
                                31, 2010   31, 2009   31, 2010   31, 2009
                                ---------- ---------  ---------- ---------
             ASSETS
CURRENT ASSETS:
   Cash and cash equivalents    $    1,324 $     667  $    3,086 $   2,176
   Accounts receivable, net         60,320    53,080      65,397    57,887
   Deferred income taxes             1,578     1,578       1,578     1,578
   Prepaid expenses and other
    current assets                   8,588     8,440       8,736     8,501
                                ---------- ---------  ---------- ---------
      Total current assets          71,810    63,765      78,797    70,142
                                ---------- ---------  ---------- ---------
PROPERTY AND EQUIPMENT, NET          5,019     5,292       7,197     7,518
OTHER ASSETS:
   Goodwill                        211,183   210,834     246,889   244,671
   Other noncurrent assets           9,839    10,944       9,649    10,950
                                ---------- ---------  ---------- ---------
      Total other assets           221,022   221,778     256,538   255,621
                                ---------- ---------  ---------- ---------
         TOTAL ASSETS           $  297,851 $ 290,835  $  342,532 $ 333,281
                                ========== =========  ========== =========

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
   Current maturities of
    long-term debt              $    7,925 $   7,400  $    9,520 $   8,768
   Accounts payable                 30,802    26,914      35,285    31,184
   Accrued expenses and other
    liabilities                     11,159     9,998      13,156    12,152
                                ---------- ---------  ---------- ---------
      Total current liabilities     49,886    44,312      57,961    52,104
LONG-TERM DEBT, net of current
 maturities                        120,396   120,660     130,491   130,167
OTHER LONG-TERM LIABILITIES          2,373     1,922       5,115     4,627
PREFERRED STOCK SUBJECT TO
 MANDATORY REDEMPTION                5,000     5,000       5,000     5,000
                                ---------- ---------  ---------- ---------
      Total liabilities            177,655   171,894     198,567   191,898
                                ---------- ---------  ---------- ---------
COMMITMENTS AND CONTINGENCIES
REDEEMABLE COMMON STOCK
   Redeemable common stock           1,740     1,740       1,740     1,740
                                ---------- ---------  ---------- ---------
STOCKHOLDERS' INVESTMENT:
   Series B convertible
    preferred stock                 14,465    13,950      14,465    13,950
   Class A common stock                145       145         180       179
   Class B common stock                  3         3           -         -
   Additional paid-in capital      103,267   103,700     126,414   125,805
   Retained earnings (deficit)         576      (597)      1,166      (291)
                                ---------- ---------  ---------- ---------
      Total stockholders'
       investment                  118,456   117,201     142,225   139,643
                                ---------- ---------  ---------- ---------
TOTAL LIABILITIES, MEZZANINE
 EQUITY AND STOCKHOLDERS'
 INVESTMENT                     $  297,851 $ 290,835  $  342,532 $ 333,281
                                ========== =========  ========== =========

Contact Information

  • Contact

    Roadrunner Transportation Systems, Inc.
    Peter Armbruster
    Chief Financial Officer
    414-615-1648
    Email Contact

    The Blueshirt Group
    Jonathan Schaffer
    212-551-1452