Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Q2 2018 Earnings Presentation
23 slides from Roadrunner Transportation Systems's earnings presentation, Aug 8, 2018
Slide 1: Second Quarter 2018 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Second Quarter 2018 Management Call YOUR GOODS. OUR BEST. YOUR GOODS. OUR BEST.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which relate to future events or performance. Forward-looking statements includ
Slide 3: Information About Adjusted EBITDA
INFORMATION ABOUT ADJUSTED EBITDA EBITDA represents earnings before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, losses from debt extinguishments, oper
Slide 4: Agenda
AGENDA 1. Opening Comments 2. 2018 First Quarter & First Half Financial Results 3. Business Trends 4. Strategy Update & Outlook 5. Question & Answer Session YOUR GOODS. OUR BEST. 4
Slide 5: Opening Comments
OPENING COMMENTS Comparable 2018 revenue growth for the second quarter and first half of 2018 Positive business trends in all segments, including sequential quarterly improvements in the Less-than-Truckload segment as turnaround investments continue Strong top and bottom line comparable growth in As
Slide 6: Second Quarter 2018 Results
Second Quarter 2018 Results YOUR GOODS. OUR BEST. 6
Slide 7: Summary of Q2 2018 Results: Financial Summary
SUMMARY OF Q2 2018 RESULTS Financial Summary Revenues increased to $558.0 million from $530.6 million in 2017; up 10.0% excluding Unitrans • Increase due to higher revenues in the TES and Ascent segments (excluding Unitrans); LTL revenues improved sequentially from the first quarter • Unitrans reven
Slide 8: Summary of Q2 2018 Results: Segment Results
SUMMARY OF Q2 2018 RESULTS Segment Results Changed reporting segments in Q1: Truckload & Express Services (TES), Less-than-Truckload (LTL) and Ascent Global Logistics (Ascent) TES revenues of $300.0 million increased 14.1% from $262.8 million in 2017. Operating loss of $0.8 million vs. operating inc
Slide 9: Adjusted EBITDA Second Quarter 2018 vs. 2017
ADJUSTED EBITDA Second Quarter 2018 vs. 2017 (In thousands) Three Months Ended June 30, 2018 Corporate/ TES LTL Ascent Eliminations Total Net (loss) income $ (758 ) $ (3,763 ) $ 7,285 $ (44,719 ) $ (41,955 ) Plus: Total interest expense 8 20 29 34,175 34,232 Plus: Benefit from income taxes — — — (3,
Slide 10: First Half 2018 Results
First Half 2018 Results YOUR GOODS. OUR BEST. 10
Slide 11: Summary of First Half 2018 Results: Financial Summary
SUMMARY OF FIRST HALF 2018 RESULTS Financial Summary Revenues increased to $1,128.0 million from $1,009.5 million in 2017; up 17.4% excluding Unitrans • Unitrans revenues were $48.3 million in 2017 Net operating loss of $24.8 million vs. $25.4 million in 2017 • 2018 operating loss includes $15.5 mil
Slide 12: Summary of First Half 2018 Results: Segment Results
SUMMARY OF FIRST HALF 2018 RESULTS Segment Results TES revenues of $626.1 million increased 27.7% from $490.3 million in 2017. Operating income of $3.7 million vs. $1.7 million in 2017. Adjusted EBITDA up 46.7% to $20.8 million from $14.2 million in 2017 • Higher revenues due to increased ground and
Slide 13: Adjusted EBITDA First Half 2018 vs. 2017
ADJUSTED EBITDA First Half 2018 vs. 2017 YOUR GOODS. OUR BEST. 13
Slide 14: Liquidity & Equipment Purchase Update
LIQUIDITY & EQUIPMENT PURCHASE UPDATE Currently have approximately $40 million of available funds for working capital and operating purposes from existing borrowing capacity under ABL facility and standby commitment from preferred stock investor In compliance with ABL and preferred stock investment
Slide 15: Business Trends
Business Trends YOUR GOODS. OUR BEST. 15
Slide 16: Business Trends: Truckload & Express Services
BUSINESS TRENDS Truckload & Express Services Operating Commentary Strategy • Integration to improve our scale and right size capacity to address both scheduled and unscheduled freight needs Q2 2018 vs 2017 (%) H1 2018 vs 2017 (%) • During Q2 we completed the integration of multiple temperature contr
Slide 17: Business Trends: Less-than-Truckload
BUSINESS TRENDS Less-than-Truckload Operating Commentary Strategy • Focus on core competency as a metro to metro long haul provider • Reducing pickup and delivery footprint to remove unprofitable areas and redeploy Supplemental Operating KPI's Q2 2018 vs 2017 (%) H1 2018 vs 2017 (%) assets to more p
Slide 18: Business Trends: Ascent Global Logistics
BUSINESS TRENDS Ascent Global Logistics Operating Commentary Strategy • Integration enabling easier access to more of our brokerage capabilities by more of Q2 2018 vs 2017 (%) H1 2018 vs 2017 (%) our customers • Investments to consolidate our IT capabilities onto one domestic Transportation Manageme
Slide 19: Strategy Update & Outlook
Strategy Update & Outlook YOUR GOODS. OUR BEST. 19
Slide 20: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION YOUR GOODS. OUR BEST. 20
Slide 21: 2018 Simplification & Integration
2018 SIMPLIFICATION & INTEGRATION Key Initiatives Segment strategies • Improve operational structure and performance in Truckload & Express segment • Integrate and expand Ascent Global Logistics segment • Invest in longer-term recovery of LTL segment Invest in our fleets and drivers • New equipment
Slide 22: Positive Outlook
POSITIVE OUTLOOK Expect benefits from first half integrations and investments will begin to contribute to results in the second half of 2018 with larger benefits from the full year impact in 2019 • Truckload & Express Services and Ascent positive business trends expected to continue • Expect improve
Slide 23: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST. 23
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