19 slides from Roadrunner Transportation Systems's earnings presentation, May 7, 2019
Slide 1: Roadrunner Transportation Systems Q1 2019 Management Call
ROADRUNNER TRANSPORTATION SYSTEMS Q1 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, a
Slide 4: Agenda
AGENDA 1. Opening Comments 2. 2019 First Quarter Financial Results 3. Q1 Business Trends 4. Business Improvements & Outlook 5. Question & Answer YOUR GOODS. OUR BEST. 4
Slide 5: Opening Comments
OPENING COMMENTS Revenue decline primarily due to ground expedite market conditions and planned LTL service area reductions LTL segment improved Adjusted EBITDA from restructuring efforts TES and Ascent segments marginally lower Adjusted EBITDA due to difficult comparisons Capital structure improvem
Slide 6: First Quarter 2019 Results
First Quarter 2019 Results YOUR GOODS. OUR BEST. 6
Slide 7: Summary of Q1 2019 Results
SUMMARY OF Q1 2019 RESULTS Financial Summary Revenues of $507.1 million in Q1 2019 vs. $570.0 million in Q1 2018 • Revenue decline in all three segments primarily due to market moderation in ground expedite compared to peak demand in Q1 2018 in Truckload & Express Services (TES), lower volumes in Le
Slide 8: Adjusted EBITDA First Quarter 2019 vs. 2018
ADJUSTED EBITDA First Quarter 2019 vs. 2018 (In thousands) Truckload & Less Than Ascent Global Roadrunner Ex pre ss Truckload Logistics Corporate Transportation Services Segment Segment Syste ms, Inc. Segment Three Months ended March 31, 2019 Net (loss) income (4,413) (5,868) 5,267 (21,985) (26,999)
Slide 9: Capitalization
CAPITALIZATION (In millions) 12/31/2018 3/31/2019 Total Bank Debt $ 168.8 $ 159.7 Finance Lease Liability $ 51.0 $ 74.0 Total Debt $ 219.8 $ 233.7 Preferred Stock $ 402.9 $ - Total Debt & Preferred Stock $ 622.7 $ 233.7 YOUR GOODS. OUR BEST. 9
Slide 10: Q1 Business Trends
Q1 Business Trends YOUR GOODS. OUR BEST. 10
Slide 11: 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 (In thousands, except %'s) and unscheduled freight needs Q1 2019 Q1 2018 vs 2018 (%) Active On-Demand Revenue Active-On-Demand ~ 51% of Q1 S
Slide 12: 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 and %'s) • Sales discipline to drive volume in strategic
Slide 13: 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 Q1 2019 Q1 2018 vs 2018 (%) • Investments to consolidate our IT capabilities onto one domestic Transpor
Slide 14: Business Improvements & Outlook
Business Improvements & Outlook YOUR GOODS. OUR BEST. 14
Slide 15: Business Improvement Guideposts
BUSINESS IMPROVEMENT GUIDEPOSTS 5 Key Phases – Tracking & Reporting Our Progress 5. OPTIMIZATION < Re-Capitalization Completed in Q1 2019 < Re-Financing in 2017 YOUR GOODS. OUR BEST. 15
Slide 16: Simplification & Integration – Segments
SIMPLIFICATION & INTEGRATION – SEGMENTS Key Initiatives Update Truckload & Express LTL Ascent Global Improved operational structure Invest in longer-term Integrate and expand and performance recovery (Rebuilding) logistics businesses (Performing) Domestic Freight Management Active On-Demand (Perform
Slide 17: Simplification & Integration – Other Key Areas
SIMPLIFICATION & INTEGRATION – OTHER KEY AREAS 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 investments • Improved sy
Slide 18: Longer-Term Outlook Unchanged
LONGER-TERM OUTLOOK UNCHANGED Completed rights offering and refinanced credit facility in Q1; 1-for-25 reverse stock split completed in early Q2 Capital structure improvements support our longer-term focus and business plans which we believe will enable in a full operational recovery followed by add
Slide 19: Q & A Discussion
Q & A Discussion YOUR GOODS. OUR BEST. 19