Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Q2 2019 Earnings Presentation
24 slides from Roadrunner Transportation Systems's earnings presentation, Aug 7, 2019
Slide 1: Roadrunner Transportation Systems Q2 2019 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Q2 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 Second Quarter & First Half Financial Results 3. Q2 Business Trends 4. Business Improvements & Strategic Focus 5. Question & Answer YOUR GOODS. OUR BEST.® 4
Slide 5: Opening Comments
OPENING COMMENTS • Revenue and Adjusted EBITDA declined in 2019 second quarter primarily due to low market demand in air and ground expedited logistics at the Active On-Demand segment • Ascent Global Logistics (Ascent) segment earned lower revenue and marginally lower Adjusted EBITDA in 2019 second
Slide 6: Second Quarter 2019 Results
Second Quarter 2019 Results YOUR GOODS. OUR BEST.® 6
Slide 7: Summary of Q2 2019 Results
SUMMARY OF Q2 2019 RESULTS Financial Summary Revenues of $480.7 million in Q2 2019 vs. $558.0 million in Q2 2018 • Revenue declined primarily due to declines of $63.3 million in air and ground expedited logistics at Active On-Demand as well as reduced truckload shipment volumes and rate mix at Ascen
Slide 8: Revenue by Segment: Second Quarter 2019 vs. 2018
REVENUE BY SEGMENT Second Quarter 2019 vs. 2018 Revenue Comparison of Second Quarter 2019 to 2018 (In thousands) Ascent Global Active On- Less-Than- Corporate/ Truckload Consolidated Logistics Demand Truckload Eliminations Q2 2019 Revenues $ 130,160 $ 101,492 $ 117,076 $ 141,472 $ (9,512) $ 480,688
Slide 9: Adjusted EBITDA: Second Quarter 2019 vs. 2018
ADJUSTED EBITDA Second Quarter 2019 vs. 2018 (In thousands) Ascent Global Active On- Less-Than- Corporate/ Logistics Demand Truckload Truckload Eliminations Consolidated Three Months Ended June 30, 2019 Net (loss) income $ 5,777 $ (2,614) $ (4,494) $ (104,278) $ (36,340) $ (141,949) Plus: Total inte
Slide 10: First Half 2019 Results
First Half 2019 Results YOUR GOODS. OUR BEST.® 10
Slide 11: Summary of First Half 2019 Results
SUMMARY OF FIRST HALF 2019 RESULTS Financial Summary Revenues in first half of $987.8 million vs. $1,128.0 million in 2018 • Revenue decline primarily due to declines of $115.3 million in air and ground expedited logistics at Active On-Demand. Operating loss in first half of $158.6 million vs. $24.8
Slide 12: Revenue by Segment: First Half 2019 vs. 2018
REVENUE BY SEGMENT First Half 2019 vs. 2018 Revenue Comparison of First Half 2019 to 2018 (In thousands) Ascent Global Active On- Less-Than- Corporate/ Truckload Consolidated Logistics Demand Truckload Eliminations YTD 2019 Revenues $ 261,853 $ 244,263 $ 219,898 $ 278,483 $ (16,661) $ 987,836 YTD 20
Slide 13: Adjusted EBITDA: First Half 2019 vs. 2018
ADJUSTED EBITDA First Half 2019 vs. 2018 (In thousands) Ascent Global Active On- Less-Than- Corporate/ Logistics Demand Truckload Truckload Eliminations Consolidated Six Months Ended June 30, 2019 Net (loss) income $ 11,044 $ 583 $ (10,363) $ (111,886) $ (58,326) $ (168,948) Plus: Total interest exp
Slide 14: Debt Summary
DEBT SUMMARY (In millions) 12/31/2018 3/31/2019 6/30/2019 ABL credit facility $ 134.5 $ 112.4 $ 131.4 Term loan credit facility 37.3 50.7 50.2 Finance Lease Liability 51.0 74.0 93.9 Total Debt $ 222.8 $ 237.1 $ 275.5 Debt issuance costs (3.1) (3.4) (3.2) Preferred Stock 402.9 - - Total Debt & Prefer
Slide 15: Q2 Business Trends
Q2 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 (In thousands, except %'s) customers; including Active On-Demand air and ground expedite service offering Q2 2019 Q2 2018 vs 2018 YTD 2019 Y
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 (In thousands, except %'s) • Continue to drive operational improvements and further execution of world- Q2 2019 Q2 2018 vs 2018 YTD 2019 YTD 2018 vs 2018 class
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: (In thousands, except operating statistics & %'s) Q2 2019 Q2 2018 vs 2018 YTD 2019 YTD 2018 vs 2018
Slide 19: Business Trends: Truckload
BUSINESS TRENDS Truckload Operating Commentary Strategy • Integration to improve our scale and right size capacity to address both (In thousands, except %'s) scheduled and unscheduled freight needs Q2 2019 Q2 2018 vs 2018 YTD 2019 YTD 2018 vs 2018 Over-the-Road ~ 78% of Q2 Segment Revenue Over-the-R
Slide 20: Business Improvements & Strategic Focus
Business Improvements & Strategic Focus YOUR GOODS. OUR BEST.® 20
Slide 21: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION < Sharpening our Strategic Focus < Re-Capitalization Completed in Q1 2019 < Re-Financing in 2017 YOUR GOODS. OUR BEST.® 21
Slide 22: Simplification & Integration – Segments Key Initiatives Update
SIMPLIFICATION & INTEGRATION – SEGMENTS Key Initiatives Update Ascent Active On-Demand LTL Truckload Integrate and expand 3PL, Highly capable logistics business Investing in longer-term Improved operational structure brokerage and distribution with peaks and valleys reputation and profit recovery an
Slide 23: Key Financial Focus Areas
KEY FINANCIAL FOCUS AREAS • Strategic assessment of Truckload assets • Reducing fleet investments • Improving cash flow and debt reduction • Improving internal controls and remediating deficiencies • Moving operating margins and return on invested capital closer to industry norms YOUR GOODS. OUR BES
Slide 24: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST.® 24
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