Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Q3 2018 Earnings Presentation
27 slides from Roadrunner Transportation Systems's earnings presentation, Nov 7, 2018
Slide 1: Third Quarter 2018 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Third Quarter 2018 Management Call YOUR GOODS. OUR BEST. YOUR GOODS. OUR BEST.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This press release 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 inclu
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 Third Quarter & First Nine Months Financial Results 3. Business Trends 4. Business Improvements & Outlook 5. Question & Answer Session YOUR GOODS. OUR BEST. 4
Slide 5: Opening Comments
OPENING COMMENTS Revenue growth in both the third quarter and first nine months of 2018 Positive operating trends in all segments vs. prior year quarter Improved revenues and Adjusted EBITDA in Truckload & Express Services segment Improvement in Less-Than-Truckload segment as losses narrowed, with e
Slide 6: Third Quarter 2018 Results
Third Quarter 2018 Results YOUR GOODS. OUR BEST. 6
Slide 7: Summary of Q3 2018 Results: Financial Summary
SUMMARY OF Q3 2018 RESULTS Financial Summary Revenues increased to $536.6 million from $521.4 million in 2017; up 6.9% excluding Unitrans • Increase due to higher revenues in the TES and Ascent segments (excluding Unitrans); LTL revenues down 3.1% • Unitrans revenues were $19.3 million in Q3 2017 Ne
Slide 8: Summary of Q3 2018 Results: Segment Results
SUMMARY OF Q3 2018 RESULTS Segment Results Truckload & Express Services (TES) revenues of $280.3 million increased 7.6% from $260.5 million in 2017 Operating loss of $0.8 million vs. $1.7 million in 2017 Adjusted EBITDA up 19.4% to $5.7 million from $4.7 million in 2017 • Higher revenues primarily d
Slide 9: Adjusted EBITDA Third Quarter 2018 vs. 2017
ADJUSTED EBITDA Third Quarter 2018 vs. 2017 (In thousands) Three Months Ended September 30, 2018 Corporate/ TES LTL Ascent Eliminations Total Net (loss) income $ (921 ) $ (5,072 ) $ 7,319 $ (42,887 ) $ (41,561 ) Plus: Total interest expense 134 32 26 35,606 35,798 Plus: (Benefit from) provision for
Slide 10: Adjusted EBITDA Improvement by Segment - Third Quarter
ADJUSTED EBITDA IMPROVEMENT BY SEGMENT Third Quarter (In thousands) Three Months Ended September 30, 2018 Corporate/ (In thousands) TES LTLThree MonthsAscent Ended SeptemberEliminations 30, 2018 Total Adjusted EBITDA Q3 2018 $ 5,669 $ (4,164) $ 8,657 $ (5,7Corporate/05) $ 4,457 TES LTL Ascent Elimin
Slide 11: First Nine Months 2018 Results
First Nine Months 2018 Results YOUR GOODS. OUR BEST. 11
Slide 12: Summary of First Nine Months 2018 Results: Financial Summary
SUMMARY OF FIRST NINE MONTHS 2018 RESULTS Financial Summary Revenues increased to $1,664.6 million from $1,530.9 million in 2017; up 13.8% excluding Unitrans • Unitrans revenues were $67.6 million in 2017 Net operating loss of $35.6 million vs. $14.1 million in 2017 • 2018 operating loss includes $2
Slide 13: Summary of First Nine Months 2018 Results: Segment Results
SUMMARY OF FIRST NINE MONTHS 2018 RESULTS Segment Results TES revenues of $906.4 million increased 20.7% from $750.8 million in 2017 Operating income of $2.9 million Adjusted EBITDA up 39.8% to $26.5 million from $19.0 million in 2017 • Higher revenues due primarily to increased air and ground exped
Slide 14: Adjusted EBITDA First Nine Months 2018 vs. 2017
ADJUSTED EBITDA First Nine Months 2018 vs. 2017 (In(In thousands) thousands) NineNine MonthsMonths EndedEnded September 30, 2018 Corporate/ TES LTL Ascent Total TES LTL Ascent Eliminations Total NetNet (loss) (loss) income income $$ 2,7102,710 $ $ (17,(17,555555 ) ) $ $ 21,281 $ (113,5,595 ) ) $$ (1
Slide 15: Adjusted EBITDA Improvement by Segment - Year to Date
ADJUSTED EBITDA IMPROVEMENT BY SEGMENT Year to Date (In thousands) Nine Months Ended September 30, 2018 (In thousands) Nine Months Ended SeptemberCorporate/ 30, 2018 TES LTL Ascent Eliminations Total Corporate/ Adjusted EBITDA YTD 2018 $ 26,TES511 $ (14,778LTL) $ 25,Ascent034 $ ( 22Eliminations,444)
Slide 16: Liquidity & Equipment Purchase Update
LIQUIDITY & EQUIPMENT PURCHASE UPDATE Currently have over $40 million of available funds for working capital and operating purposes from existing borrowing capacity under ABL facility and standby commitment from preferred stock investor In compliance with ABL and preferred stock investment agreement
Slide 17: Capitalization
CAPITALIZATION (In millions) 12/31/2017 9/30/2018 Total Bank Debt $ 199.3 $ 159.3 Capital Leases $ 9.8 $ 30.0 Total Debt $ 209.0 $ 189.3 Preferred Stock (1) $ 263.3 $ 368.8 Total Debt and Preferred Stock $ 472.4 $ 558.1 Market value of Common Stock $ 296.2 $ 32.4 (1) Estimated projected redemption v
Slide 18: Q3 Business Trends
Q3 Business Trends YOUR GOODS. OUR BEST. 18 18
Slide 19: Business Trends: Truckload & Express Services
BUSINESS TRENDS Truckload & Express Services Operating Commentary Strategy Q3 2018 vs 2017 (%) YTD 2018 vs 2017 (%) • Integration to improve our scale and right size capacity to address both scheduled and Over-the-Road unscheduled freight needs Fleet Revenue $102,631 2.7% $315,331 2.8% Brokerage Rev
Slide 20: 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 Q3 2018 vs 2017 (%) YTD 2018 vs 2017 (%) assets to more profitable lanes, while impro
Slide 21: 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 Q3 2018 vs 2017 (%) YTD 2018 vs 2017 (%) • Investments to consolidate our IT capabilities onto one domestic Transportation Managem
Slide 22: Business Improvements & Outlook
Business Improvements & Outlook YOUR GOODS. OUR BEST. 22
Slide 23: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION < Re-Capitalization (Pending) < Re-Financing in 2017 YOUR GOODS. OUR BEST. 23
Slide 24: 2018 Simplification & Integration – Segment Strategies
2018 SIMPLIFICATION & INTEGRATION – Segment Strategies Key Initiatives Update Truckload & Express LTL Ascent Global Improved operational Invest in longer-term Integrate and expand structure and performance recovery logistics businesses New Management Team Air & Ground Expedited Domestic Freight Mana
Slide 25: 2018 Simplification & Integration – Other Key Areas of Focus
2018 SIMPLIFICATION & INTEGRATION – OTHER KEY AREAS OF FOCUS 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, life styl
Slide 26: Positive Outlook
POSITIVE OUTLOOK Benefits from 2018 integrations and investments benefit 2019 and beyond • Bigger financial impact in 2019 from restructurings, fleet and IT investments • Truckload & Express Services and Ascent positive business trends expected to continue • Expected improvement in LTL revenue trend
Slide 27: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST. 27
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