Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Investor Presentation (August 2010)
24 slides from Roadrunner Transportation Systems's investor presentation, Aug 10, 2010
Slide 1: Roadrunner Transportation Systems (RRTS) Investor Presentation
Aoadrumer Transportation Systems (RATS) Investor Presentation
Slide 2: Forward-Looking Statements
FForward. Looking Statements: —— The following information contains forward-looking statements. These forward-looking statements are based on RRTS' management's current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncer
Slide 3: Experienced and Motivated Management Team
perienced 4nd Motivated|Management-Team__ Entrepreneurial Mark DiBlasi Peter Armbruster culture and team President & CEO Chit Financial Ofer alld siete PRT «81 yeas industry experience RGN «20 years industry experience ciety RK + President and CEO sinoe (eM « Chief Financial Officer since Pas Januar
Slide 4: Introduction to Roadrunner Transportation Systems
Hintroduction toxoadrinnerTransportation-Systems___ » Comprehensive Sees ae Ne all Gicail service capabilities TTL arteroge Sols Parel__Blerpe Arrest Customized with scalable, non- Full Series saps we re wg 4 wg rd wo asset based, non- I ‘operat union structure + “One-stop” solution or “A la carte”
Slide 5: Key Investment Highlights
EKey investment lighlights Competitive strengths result in substantial growth opportunities Unique Non-Asset Based Model Increasing momentum in an attractive sector ahead of market recovery Compelling Organic Growth Drivers * Scalable model + Comprehensive service offering + Variable cost structure
Slide 6: Business and Industry Overview
Business and Industry Overview
Slide 7: Largest Non-Asset Based LTL Provider in North America
ELargest Non-Asset Based LlinProvider-in-North America?) {7 leased LTL service centers and over 200 LTL delivery agents Fewer stops and less handling leads to faster delivery and reduced damagelclaims Unique blend of ICs and other third-party carriers provides service and cost stability » RRTS' Non-
Slide 8: Among Largest TL Brokerage Operations in North America
Among 29 Fargest TL’ Brokerage;Operations.in.North Am Scalable platform for expansion of TL brokerage DTiceriels ~ Specialization in refrigerated goods (food, produce, and beverage) operation Offering + Temperature-controlled, dry van and flatbed capacity + Dedicated IC base and quick pay program en
Slide 9: Differentiated TMS Offering in Attractive Sector
Differentiated 1S OfféringiinAttractive- Sector Direct Solutions Total Solutions Integrated Solutions Solutions customizable to a accommodate ‘Management desired level of Comprehensive [mmoteea= outsourcing and and Reporting mode of Customized transportation Service Offering Cari Selection Freight P
Slide 10: LTL volume and pricing trends have outperformed the industry
Generating new + LTL volume and pricing trends have outperformed the industry business while + Significant new business wins have offset market tonnage declines maintaining price eri + Pricing expected to stabilize as capacity and demand equalize YIN Change in LTL Tonnage YI Change in ReviCWT (Incl.
Slide 11: Growth Opportunities
Growth Opportunities
Slide 12: Well-Positioned for Accelerated Earnings Growth
Well-Positioned. for Accélerated:Earnings-Growth__ Gaining + 19% customer growth in 2009 momentum with embedded growth + Future sales initiatives to drive ahead of market ‘continued growth recovery + 32% customer growth in 1H 2010 + Proven ability o improve efficiency Continuous + Streamlined cost s
Slide 13: Volume Growth Accelerating with Substantial New Business Wins
Volume Growth, Accelerating) With;Substantial New Business Wins Built-in growth when volume per shipper recovers Monthly average number of shippers increased * 19% in 2009 + 32% in 1H 2010 over 1H 2009 YIY Change in LTL Tonnage on are ES z - 2 10% 0% | 00% | em ==! ca om. L_s a 08 —~ pea a os sae on
Slide 14: Increasing Operating Efficiency to Enhance Earnings Growth
increasing Opefating Efficiency:to;Enhance-Earnings Growth ASME - As the economic downturn intensified in Q4 2008, management responded with $15 milion See RUE LES in cost savings, of which $12 million represented fixed costs market conditions « Savings realized in both SG&A ses and purchased transp
Slide 15: Proven Ability to Identify and Assimilate Strategic Acquisitions
ProvemAbility pl ldentifyandAssimilate-Strategic Acquisiti RRTS will continue to pursue strategic acquisitions that enhance Reem « Significant industry presence yielded acquisition opportunity profitability and expand RRTS’ + Thorough financial and operational diligence identified operating synergie
Slide 16: Significant Opportunity for Further Acquisition Growth
PSignificant Opppriuntty forFurtherAcquisition. Growth Market factors will result in attractive acquisition opportunities over RTS the near-term Capit Expansive Market Space Limited Buyer Universe * $1.3 tilion U.S. trucking and torm + Smaller competitors logistics industry seeking to partner with D
Slide 17: The GTS Merger Enhances Each Company's Growth Opportunities
The GTS Merger Enhances'Each;Gompany’s.Growth Opportunities RRTS and GTS bring near-term and long-term growth and value creation opportunities The two ‘companies have been working side by side over the past 18 months in anticipation of the merger + Service customers outside existing LTL service cent
Slide 18: Anticipated Recovery in the Domestic Freight Sector
PAnticipated Revovery iftheDomestic-Freight Sectoy___ RRTS is poised for additional growth with anticipated industry rebound * Capacity beginning to exit the market and demand has stabilized + Softness in the domestic freight sector began in 2H 2006 and accelerated in 2008 + Pricing stabilizing in 1
Slide 19: Financial Overview
Financial Overview
Slide 20: RRTS' business model compares favorably to best-in-class peers
RRTS' business model compares favorably to the bestin-class, non- asset based transportation and logistics providers + RRTS utilizes a broad network of ICs and other third-party carriers cost struct th ability to readily sc le business + Strong free cash flow generation and attractive returns on inv
Slide 21: Revenues and Operating Income
Revenues ahead ‘Second Quarter First Half . ‘$1200 s $350.0 3 $3025 00 somo smo sia wo? her 200 Ben ono ed s1s00 20 : os soo a 0 00 ‘00 cove cove oy wi Operating Income) (sino) Second Quarter First s100 ee si90 SS so 5 $180 sso suo sto $60 a7 $100 Ls so a $20 40 so s00 0 cove cae woe wo 21 ag
Slide 22: Capitalization Table
PGapitalization Table _ IPO increased financial flexibility and balance sheet strength to pursue organic growth initiatives and strategic acquisitions (Simons) Cash and Cash Equivalents Debt (Credit Facity) Total Stockholders’ Investment Total Capitalization Total Debt / Capitalization June 30, 2010
Slide 23: Financial Strategy and Goals
PFinancial Strategy anid Goals: Top-tier transportation and logistics company with strong financial position Flexibility Gained from Deleveraging upon IPO Revenue Growth Objectives * Continued expansion of LTL market share + Add new TL brokerage agents and dispatch offices + Substantially grow TMS b
Slide 24: Key Investment Highlights
EKey investment lighlights Competitive strengths result in substantial growth opportunities Unique Non-Asset Based Model Increasing momentum in an attractive sector ahead of market recovery Compelling Organic Growth Drivers * Scalable model + Comprehensive service offering + Variable cost structure
Roadrunner Transportation Systems — Investor Presentation (August 2010) on 6ix