Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Q1 2018 Earnings Presentation
22 slides from Roadrunner Transportation Systems's earnings presentation, Jul 2, 2018
Slide 1: Full Year 2017 & First Quarter 2018 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Full Year 2017 & First 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: Agenda
AGENDA 1. 2017 Full Year Financial Results 2. 2018 First Quarter Financial Results 3. Business Trends 4. Strategy Update & Outlook 5. Question & Answer Session YOUR GOODS. OUR BEST. 3
Slide 4: Full Year 2017 Results
Full Year 2017 Results YOUR GOODS. OUR BEST. 4
Slide 5: Summary of 2017 Full Year Results: Financial Summary
SUMMARY OF 2017 FULL YEAR RESULTS Financial Summary Revenues of $2,091.3 million vs. $2,033.2 million in 2016 Net operating loss of $36.5 million vs. $403.8 million in 2016. 2017 operating loss included: • 4.9% Increase in purchased transportation costs to $1,430.4 million in 2017 from $1,364.1 mill
Slide 6: Summary of 2017 Full Year Results: Segment Results
SUMMARY OF 2017 FULL YEAR RESULTS Segment Results TL revenues of $1,304.8 million vs. $1,246.8 million in 2016. Operating income of $6.5 million vs. operating loss of $164.1 million in 2016 • 2016 operating loss included impairment charges of $159.1 million • 2017 operating income benefited from low
Slide 7: Adjusted EBITDA Full Year 2017 vs. 2016
Adjusted EBITDA Full Year 2017 vs. 2016 (in thousands) 2017 2016 Net loss $ (91,186) $ (360,320) Plus: Total interest expense 64,049 22,827 Plus: Benefit from income taxes (25,191) (66,281) Plus: Depreciation and amortization 37,747 38,145 Plus: Impairment charges 4,402 373,661 Plus: Long-term incen
Slide 8: First Quarter 2018 Results
First Quarter 2018 Results YOUR GOODS. OUR BEST. 8
Slide 9: Summary of Q1 2018 Results: Financial Summary
SUMMARY OF Q1 2018 RESULTS Financial Summary Changed reporting segments in Q1: Truckload & Express Services (TES), Less-than-Truckload (LTL) and Ascent Global Logistics (Ascent) Revenues increased 19.0% to $570.0 million vs. $478.9 million in 2017 • Increase due to higher revenues in the TES and LTL
Slide 10: Summary of Q1 2018 Results: Segment Results
SUMMARY OF Q1 2018 RESULTS Segment Results TES revenues of $326.1 million increased 43.3% from $227.5 million in 2017. Operating income of $4.4 million vs. operating loss of $1.7 million in 2017. Adjusted EBITDA up 134.8% to $10.7 million from $4.6 million in 2017 • Higher revenues due to increase i
Slide 11: Adjusted EBITDA First Quarter 2018 vs 2017
Adjusted EBITDA First quarter 2018 vs 2017 (In thousands) Three Months Ended March 31, 2018 Corporate/ TES LTL Ascent Eliminations Total Net (loss) income $4,389 ($8,720) $6,677 ($25,989) ($23,643) Plus: Total interest expense 11 36 30 9,466 9,543 Plus: Provision for income taxes — — — 670 670 Plus:
Slide 12: Q1 2018 Highlights
Q1 2018 Highlights Now Current with SEC Reporting Requirements Liquidity Update • Currently have approximately $40 million of available funds for working capital and operating purposes from existing borrowing capacity under ABL facility and standby commitment from preferred stock investor • In compl
Slide 13: Business Trends
Business Trends YOUR GOODS. OUR BEST. 13
Slide 14: Business Trends: Truckload & Express Services
BUSINESS TRENDS Truckload & Express Services Operating Commentary ($ in Millions) Revenue Strategy • Integration to improve our scale and right size capacity to address both scheduled and unscheduled $326.1 freight needs • In May 2018 announced integration of our time definite ground and air operati
Slide 15: Business Trends: Less-than-Truckload
BUSINESS TRENDS Less-than-Truckload Operating Commentary ($ in Millions) Strategy Revenue • Focus Roadrunner Freight on core competency as metro to metro long haul carrier $113.1 $108.8 • Reducing pickup and delivery footprint to remove unprofitable areas and redeploy assets to more focused lanes •
Slide 16: Business Trends: Ascent Global Logistics
BUSINESS TRENDS Ascent Global Logistics Operating Commentary ($ in Millions) Revenue Strategy • Integration enabling easier access to more of our brokerage capabilities by more of our customers • Roadrunner Truckload Plus merged into Ascent in Q1 2018 $25.2 • Delivers technology-enabled, asset-backe
Slide 17: Strategy Update & Outlook
Strategy Update & Outlook YOUR GOODS. OUR BEST. 17
Slide 18: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION YOUR GOODS. OUR BEST. 18
Slide 19: Business Platform Integration
Business Platform Integration Recent Events • March 2018 – Integrated and rebranded several operating companies, including Roadrunner Truckload Plus, into Ascent Global Logistics. Strengthens Ascent’s truckload brokerage capabilities and allows more customers to easily access Ascent’s LTL, internati
Slide 20: 2018 Simplification & Integration
2018 SIMPLIFICATION & INTEGRATION Key Initiatives Operations • Improve operational performance in Truckload segment • Integrate and expand Ascent Global Logistics segment • Invest in longer-term recovery of LTL segment • Simplify and combine operations and improve go-to-market approach in Express Se
Slide 21: Outlook
OUTLOOK Positive Trends • Expect benefits from first half integrations and investments bear fruit in second half 2018 • Truckload & Express Services and Ascent positive market and business trends expected to continue • Expect quarterly sequential improvement in LTL operating results and improvement
Slide 22: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST. 22
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