Rxo, Inc. · NYSE:RXO
Rxo — Merger or Acquisition (June 2024)
9 slides from Rxo's merger presentation, Jun 23, 2024
Slide 1: RXO to Acquire Coyote Logistics
RXO to Acquire Coyote Logistics Transformational deal will create third-largest North American freight broker June 23, 2024
Slide 2: Non-GAAP financial measures and forward-looking statements
Non-GAAP financial measures and forward-looking statements Non-GAAP financial measures The non-GAAP financial measures in this presentation include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted free cash flow; and adjusted diluted earnings per
Slide 3: Highly accretive acquisition creates scaled transportation leader
Highly accretive acquisition creates scaled transportation leader 1 Market Leadership – Third-largest brokered transportation provider 2 Scale – Increases network density and power lanes, benefiting customers and carriers 3 Growth – Minimal customer overlap, diversifies vertical exposure 4 Operation
Slide 4: Company Snapshot
1 Company Snapshot Brokerage Customers ~4,000 ~15,000 Carriers ~115,000 ~97,000 2 Employees ~2,150 ~2,500 Top Verticals Retail/ Food & e-Commerce Beverage Industrial/ Transportation Manufacturing 1. Calendar year 2023. 2. Includes temporary workers 4
Slide 5: RXO increases scale, maintains premium margin and expands earnings
RXO increases scale, maintains premium margin and expands earnings [Logo to Come] [Logo to Come] [Logo to Come] After acquisition [Logo to Come] closing 2023 ~$3.9B ~$3.2B $7.1B Revenue Increased scale 2023 ~$720M ~$470M $1.2B Gross Margin 2023 Premium gross 15.4% 14.5% 14.9% Brokerage GM% margin 1
Slide 6: RXO grows to the third-largest North American freight broker
RXO grows to the third-largest North American freight broker Source: Transport Topics 2024 Rankings of Top Freight Brokerage Firms. Note: Numbers do not add up due to rounding. 6
Slide 7: Transaction overview
Transaction overview Financial highlights • $1.025 billion on a cash-free, debt-free basis • Immediately and significantly accretive to adj. diluted EPS and adj. free cash flow • Transaction multiple ~11.9X 2023 pre-synergies adj. EBITDA; ~9.2x 2023 post-synergies 1 Financing sources • Mix of equity
Slide 8: Acquisition reinforces RXO's key investment highlights
Acquisition reinforces RXO’s key investment highlights 1 Large addressable market with secular tailwinds 5 Market-leading platform with complementary transportation solutions 2 Track record of above-market growth and high profitability 6 Differentiated approach to Sales drives cross-selling opportun
Slide 9: RXO
RXO