22 slides from Roadrunner Transportation Systems's investor presentation, Aug 9, 2011
Slide 1: Roadrunner Transportation Systems Investor Presentation
Roadrumer Transportation Roadrumer Transportation Systems (ARTS Investor Presentation
Slide 2: Forward Looking Statements
2 Forward 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, uncertain
Slide 3: Experienced and Motivated Management Team
3 Experienced and Motivated Management Team Entrepreneurial culture and team with track record of growth Proven ability to identify and assimilate strategic acquistions Proven ability to manage costs through economic cycles 32 years industry experience President and CEO since January 2006 Previously
Slide 4: Introduction to Roadrunner Transportation Systems
Introduction to Roadrunner Transportation Systems 4 Comprehensive service capabilities with scalable, non- asset based, non- union structure Access to flexible capacity unmatched by most full-service providers Focused on underserved landscape of small to mid-size shippers Over 35,000 customers in No
Slide 5: Strategic Business Segments Overview
Strategic Business Segments Overview
Slide 6: Largest Non-Asset Based LTL Provider in North America
6 Largest Non-Asset Based LTL Provider in North America (1) Highly scalable business model with variable cost structure LTM 6/30 LTL revenues of $434.4 million LTM 6/30 LTL operating income of $21.9 million 20 LTL service centers and over 200 LTL delivery agents provide delivery coverage across Nort
Slide 7: Differentiated Point-to-Point LTL Model
7 Differentiated Point-to-Point LTL Model Low cost, high service business model Traditional Asset-Based Hub and Spoke LTL Model RRTS' Non-Asset Based Point-to-Point LTL Model Reduced likelihood of claims Efficient transit times Fewer Handlings Minimal capital expenditure requirements Less inclined t
Slide 8: Truckload Segment
Truckload Segment Scalable platform to expand TL operation LTM 6/30 TL revenues of $206.2 million LTM 6/30 TL operating income of $10.2 million February 2011 acquisition of Morgan Southern adds ~$57 million in revenues Expansive Market Opportunity Differentiated Offering Geographic Footprint 8 _____
Slide 9: Differentiated TMS Offering in Attractive Sector
9 Differentiated TMS Offering in Attractive Sector Significant Customer Benefits Ability to refocus on core competencies Significant freight savings Service and process improvement Access to TMS systems for customized reporting/monitoring Solutions customizable to accommodate desired level of outsou
Slide 10: Strategic Significance of Business Segments - Beyond One-Stop Solution
Significant investment in sales personnel able to cross-sell services to meet individual customer needs Ability to offer full scope of services across all zip codes Expand more cost efficiently into new geographic regions Efficiently utilize capacity across all networks Over 35,000 customers and gro
Slide 11: Growth Opportunities
Koadrummer Transportation ‘systoms. Growth Opportunities
Slide 12: Well-Positioned for Accelerated Earnings Growth
Well-Positioned for Accelerated Earnings Growth 12 Potential for expanded earnings growth from four key sources Organic Growth Continuous Operating Improvements Strategic Acquisitions Anticipated Economic Recovery 23% customer growth in 1H 2011 34% customer growth in 2010 Future sales initiatives to
Slide 13: Volume Growth Accelerating with Substantial New Business Wins
13 Volume Growth Accelerating with Substantial New Business Wins Built-in growth when volume per shipper recovers Monthly average number of shippers increased: • 34% in 2010 • 23% in 1H 2011 Monthly LTL Shippers Monthly LTL Shipments Monthly Avg. Shipments per LTL Shipper 2007 2008 2009 2010 2011
Slide 14: Focused Initiatives to Improve Yield and Linehaul Network Efficiencies
Focused Initiatives to Improve Yield and Linehaul Network Efficiencies Geographic linehaul surcharge General rate increase Renegotiation of contract accounts as they come due Implementation of improved costing model Profit improvement initiatives ongoing across all business segments 14 Year-Over-Yea
Slide 15: Morgan Southern Acquisition is Excellent Fit with Strategic Criteria
Morgan Southern Acquisition is Excellent Fit with Strategic Criteria Morgan Southern brought high- quality intermodal solutions with revenues of ~$57mm and EBITDA of $4mm Acquisition will be accretive in 2011 15 Capitalization on Favorable Sector Growth Trends Acquisition Growth Opportunities Interm
Slide 16: Anticipated Recovery in the Domestic Freight Sector
Anticipated Recovery in the Domestic Freight Sector Increased tonnage Improved pricing Increased load density Recovery in domestic freight sector ANTICIPATED RESULT: RRTS profit expansion at rates exceeding revenue growth Softness in the domestic freight sector began in 2H 2006 and accelerated in 20
Slide 17: Financial Overview
Roadrumer Transportation ‘systoms. Financial Overview
Slide 18: Flexible Non-Asset Based Operating Model
Flexible Non-Asset Based Operating Model RRTS utilizes a broad network of ICs and other third-party carriers Variable cost structure with ability to readily scale business Strong free cash flow generation and attractive returns on invested capital and assets 18 2010 CapEx as Percent of Revenues 2010
Slide 19: Q2 Earnings
Q2 Earnings 19 Revenues ($ in millions) Operating Income ($ in millions) 25% 30% 56% 32%
Slide 20: Capitalization
Capitalization During first two complete quarters as a public company, RRTS reduced long-term debt by $13.5 million Funded three recent acquisitions entirely under credit facility Morgan Southern (Feb 2011) - $20 million Bruenger Trucking (May 2011) - $10.6 million James Brooks (Aug 2011) - $7.5 mil
Slide 21: Financial Strategy and Goals
21 Financial Strategy and Goals Flexibility Gained from Deleveraging upon IPO Revenue Growth Objectives Margin Improvement Objectives EPS Growth Objectives Continued expansion of LTL market share Add new TL brokerage agents and dispatch offices Substantially grow TMS business Assimilate complementar
Slide 22: Key Investment Highlights
22 Key Investment Highlights Competitive strengths result in substantial growth opportunities Increasing momentum in an attractive sector ahead of market recovery Unique Non-Asset Based Model Compelling Organic Growth Drivers Strategic Acquisition Opportunities Experienced and Motivated Management T