25 slides from Roadrunner Transportation Systems's earnings presentation, Mar 12, 2019
Slide 1: Q4 and Full Year 2018 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Q4 and Full Year 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. Roadrunner calculates Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, losses from debt extinguishme
Slide 4: Agenda
AGENDA 1. Opening Comments 2. 2018 Fourth Quarter & Full Year Financial Results 3. Q4 Business Trends 4. Business Improvements & Financial Outlook 5. Question & Answer YOUR GOODS. OUR BEST. 4
Slide 5: Opening Comments
OPENING COMMENTS Revenue growth in full year 2018 Adjusted EBITDA improvement in Q4 and full year 2018 Progress on both operational and capital structure improvements • Operationally -- majority of our businesses are stable and growing • Rights offering and debt restructuring completed in Feb. 2019
Slide 6: Fourth Quarter 2018 Results
Fourth Quarter 2018 Results YOUR GOODS. OUR BEST. 6
Slide 7: Summary of Q4 2018 Results
SUMMARY OF Q4 2018 RESULTS Financial Summary Revenues were $551.5 million in Q4 2018, a 1.6% decrease from revenues of $560.4 million in Q4 2017 • Higher revenues in the Ascent Global Logistics (“Ascent”) segment were offset by declines in the Truckload & Express Services (“TES”) and Less- Than-Truc
Slide 8: Adjusted EBITDA Fourth Quarter 2018 vs. 2017
ADJUSTED EBITDA Fourth Quarter 2018 vs. 2017 (In thousands) (In thousands) Three MonthsThree ended Months December ended 31, December2018 31, 2018 Corporate/ Corporate/ TES TESLTL LTLAscent EliminationsAscent EliminationsTotal Total Net (loss) incomeNet (loss) income $ (928) $ $ (928)(9,45 4 ) $ $ (
Slide 9: Change in Adjusted EBITDA by Segment – Fourth Quarter
CHANGE IN ADJUSTED EBITDA BY SEGMENT Fourth Quarter (In thousands) Corporate/ TES LTL Ascent Eliminations Total Adjusted EBITDA Q4 2018 $ 10,630 $ (8,260) $ 8,480 $ (7,908) $ 2,942 Adjusted EBITDA Q4 2017 12,566 (10,709) 7,317 (12,226) (3,052) Adjusted EBITDA Improvement/ (Decline) $ (1,936) $ 2,449
Slide 10: Full Year 2018 Results
Full Year 2018 Results YOUR GOODS. OUR BEST. 10
Slide 11: Summary of Full Year 2018 Results
SUMMARY OF FULL YEAR 2018 RESULTS Financial Summary Revenues were $2,216.1 million in 2018 compared to $2,091.3 million in 2017 • Unitrans revenues were $67.6 million in 2017; excluding Unitrans, revenues grew 9.5%. • Higher revenues in the TES and Ascent segments contributed to the increase, which
Slide 12: Adjusted EBITDA Full Year 2018 vs. 2017
ADJUSTED EBITDA Full Year 2018 vs. 2017 (In thousands) Year ended December 31, 2018 Corporate/ TES LTL Ascent Eliminations Total Net (loss) income $ 1,782 $ (27,009 ) $ 28,226 $ (168,596 ) $ (165,597 ) Plus: Total interest expense 315 117 108 116,372 116,912 Plus: Benefit from income taxes — — 131 (
Slide 13: Change in Adjusted EBITDA by Segment – Year to Date
CHANGE IN ADJUSTED EBITDA BY SEGMENT Year to Date (In thousands) Corporate/ TES LTL Ascent Eliminations Total Adjusted EBITDA FY 2018 $ 37,141 $ (23,038) $ 33,514 $ (30,352) $ 17,265 Adjusted EBITDA FY 2017 31,524 (22,030) 26,249 (37,326) (1,583) Adjusted EBITDA Improvement/(Decline) $ 5,617 $ (1,00
Slide 14: Capitalization
CAPITALIZATION (In millions) Pro forma 12/31/2017 12/31/2018 12/31/2018 (1) Total Bank Debt $ 199.3 $ 168.8 $ 121.8 Capital Leases $ 9.8 $ 51.0 $ 51.0 Total Debt $ 209.0 $ 219.8 $ 172.8 Preferred Stock $ 263.3 $ 402.9 $ – Total Debt and Preferred Stock $ 472.4 $ 622.7 $ 172.8 (1) Pro forma included
Slide 15: Q4 Business Trends
Q4 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 Q4 2018 vs 2017 (%) FY 2018 vs 2017 (%) and unscheduled freight needs Active On-Demand Revenue Active On-Demand ~ 54% of FY Segment Revenue
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 assets to Q4 2018 vs 2017 (%) FY 2018 vs 2017 (%) more profitable lanes, while improv
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 our Q4 2018 vs 2017 (%) FY 2018 vs 2017 (%) customers • Investments to consolidate our IT capabilities onto one domestic Transportation Manageme
Slide 19: Business Improvements & Outlook
Business Improvements & Outlook YOUR GOODS. OUR BEST. 19
Slide 20: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION < Re-Capitalization Completed in 2019 < Re-Financing in 2017 YOUR GOODS. OUR BEST. 20
Slide 21: Plans in Place for Performing and Underperforming Units
PLANS IN PLACE FOR PERFORMING AND UNDERPERFORMING UNITS Segments 2018 vs. 2017 ($ in millions) TES LTL Ascent Total Revenue(1)(2) Operating Trend Domestic; $1,246 Performing International; Active On-Demand vs. +19% Retail Well $1,051 Consolidation Flatbed; $283 Restructured Temp Controlled; vs. +1%
Slide 22: Simplification & Integration – Segments
SIMPLIFICATION & INTEGRATION – SEGMENTS Key Initiatives Update Truckload & Express LTL Ascent Global Improved operational Invest in longer-term Integrate and expand structure and performance recovery logistics businesses Domestic Freight Management Air & Ground Expedited New Management Team o Manage
Slide 23: Simplification & Integration – Other Key Areas
SIMPLIFICATION & INTEGRATION – OTHER KEY AREAS Key Initiatives Update Invest in our fleets, drivers and pilots • New transportation equipment and better control – financing vs. operating leases • Increased pilot/driver/contractor recruiting and retention – improved equipment, lifestyle and pay IT in
Slide 24: Positive Outlook for 2019 and Beyond
POSITIVE OUTLOOK FOR 2019 AND BEYOND Recent capital structure improvements support our longer-term business plans and increases the speed and likelihood of a full operational recovery followed by additional growth and optimization opportunities Expecting 2019 Adjusted EBITDA improvements in all thre
Slide 25: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST. 25