21 slides from Roadrunner Transportation Systems's earnings presentation, Nov 6, 2019
Slide 1: Roadrunner Transportation Systems Q3 2019 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Q3 2019 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. Roadrunner calculates Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, loss on debt restructuring, s
Slide 4: Agenda
AGENDA 1. Opening Comments 2. 2019 Third Quarter & First Nine Months Financial Results 3. Q3 Business Trends 4. Strategic Focus 5. Question & Answer YOUR GOODS. OUR BEST.® 4
Slide 5: Opening Comments
OPENING COMMENTS • Revenue and Adjusted EBITDA declined in 2019 third quarter primarily due to continued lower market demand and rates amplified by the strike at the company’s largest customer, General Motors, which reduced revenue by approximately $17 million in September and an estimated $31 milli
Slide 6: Third Quarter 2019 Results
Third Quarter 2019 Results YOUR GOODS. OUR BEST.® 6
Slide 7: Summary of Q3 2019 Results
SUMMARY OF Q3 2019 RESULTS Financial Summary Revenues of $459.1 million in Q3 2019 vs. $536.6 million in Q3 2018 • Lower revenues were primarily due to declines in air and ground expedited logistics at Active On-Demand as well as reduced shipment volumes and rates at the Ascent and Truckload segment
Slide 8: Revenue by Segment: Third Quarter 2019 vs. 2018
REVENUE BY SEGMENT Third Quarter 2019 vs. 2018 The table below shows the changes in revenues and is based on management’s analysis and estimates. Three Months Ended September 30, 2019 (In thousands) Active On- Corporate/ Ascent Demand LTL TL Eliminations Total Q3 Revenue 2018 $ 145,632 $ 146,217 $ 1
Slide 9: Adjusted EBITDA: Third Quarter 2019 vs. 2018
ADJUSTED EBITDA Third Quarter 2019 vs. 2018 (In thousands) Active On- Corporate/ Ascent Demand LTL TL Eliminations Total Three Months Ended September 30, 2019 Net (loss) income $ (29,141) $ 202 $ (13,140) $ (30,974) $ (24,698) $ (97,751) Plus: Total interest expense 92 -- 415 830 4,143 5,480 Plus: B
Slide 10: First Nine Months 2019 Results
First Nine Months 2019 Results YOUR GOODS. OUR BEST.® 10
Slide 11: Summary of First Nine Months 2019 Results
SUMMARY OF FIRST NINE MONTHS 2019 RESULTS Financial Summary Revenues in first nine months of $1,447.0 million vs. $1,664.6 million in 2018 • Lower revenues were primarily due to revenue declines of $153.2 million in air and ground expedited logistics at Active-On Demand as well as reduced truckload
Slide 12: Revenue by Segment: First Nine Months 2019 vs. 2018
REVENUE BY SEGMENT First Nine Months 2019 vs. 2018 The table below shows the changes in revenues and is based on management’s analysis and estimates. Nine Months Ended September 30, 2019 (In thousands) Active On- Corporate/ Ascent Demand LTL TL Eliminations Total YTD Revenue 2018 $ 425,205 $ 505,753
Slide 13: Adjusted EBITDA: First Nine Months 2019 vs. 2018
ADJUSTED EBITDA First Nine Months 2019 vs. 2018 (In thousands) Active On- Corporate/ Ascent Demand LTL TL Eliminations Total Nine Months Ended September 30, 2019 Net (loss) income $ (18,097) $ 785 $ (23,502) $ (142,861) $ (83,024) $ (266,699) Plus: Total interest expense 280 -- 503 2,294 10,917 13,9
Slide 14: Debt Summary
DEBT SUMMARY (In millions) 12/31/2018 3/31/2019 6/30/2019 9/30/2019 ABL credit facility $ 134.5 $ 112.4 $ 131.4 $ 148.9 Term loan credit facility 37.3 50.7 50.2 49.2 Finance Lease Liability 51.0 74.0 93.9 92.3 Total Debt $ 222.8 $ 237.1 $ 275.5 $ 290.4 Debt issuance costs (3.1) (3.4) (3.2) (3.1) Pre
Slide 15: Q3 Business Trends
Q3 Business Trends YOUR GOODS. OUR BEST.® 15
Slide 16: 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 our customers; including Active On-Demand air and ground expedite service offering Q3 YTD • Consolidating our IT capabilities onto one proprieta
Slide 17: Business Trends: Active On-Demand
BUSINESS TRENDS Active On-Demand Operating Commentary Strategy • Provide premium mission-critical air and ground expedite logistics services Q3 YTD • Continue to drive operational improvements and further execution of world- class client solutions (In thousands, except %s) 2019 2018 vs 2018 2019 201
Slide 18: Business Trends: Less-than-Truckload
BUSINESS TRENDS Less-than-Truckload Operating Commentary Strategy • Focus on core competency as a metro-to-metro LTL provider, with expansive long haul, regional and next day offerings. This includes: Q3 YTD • Improving shipment reliability and visibility through investments in technology, (In thous
Slide 19: Business Trends: Truckload
BUSINESS TRENDS Truckload Operating Commentary Strategy • Assessing alternatives in this segment consistent with our strategy to simplify the portfolio by narrowing focus to value-added logistics and asset-light LTL segments Q3 YTD • Intermodal Services business divested on November 5, 2019 for $51.
Slide 20: Strategic Focus
STRATEGIC FOCUS • Completing the strategic assessment of the Truckload segment • Goal is to simplify our portfolio by narrowing our strategic focus to value-added logistics and asset-light LTL businesses • Intermodal Services Divestiture Complete (over 700 power units and 23 terminal locations) • Si
Slide 21: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST.® 21