Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — IPO Roadshow (August 2015)
25 slides from Roadrunner Transportation Systems's IPO roadshow presentation, Aug 3, 2015
Slide 1: Issuer Free Writing Prospectus dated August 3, 2015
Issuer Free Writing Prospectus dated August 3, 2015 Filed Pursuant to Rule 433 Registration No. 333-205537 (Relating to the Preliminary Prospectus Supplement dated August 3, 2015 and the Prospectus dated July 7, 2015)
Slide 2: Investor Presentation
] - - Roar unner eet Investor Presentation
Slide 3: Forward-looking statements
Certain harbor acquisition opportunities, businesses, future reflected forward-looking update filings 2rules. As events. with created or statements by required revise strategy, run-rate the such These service thereby. Securities any statements forward-looking by contained revenue acquired statements
Slide 4: Investment highlights
Leading Unparalleled Efficient dedicated 3Since 2010 full-service, business variable RRTS teamStrong has cost with asset-light Grown capacity the organic logistics EBITDA Deep network model provider leadership atgenerates structure a CAGR acquisition transportation growth of 34%ability with strong a
Slide 5: Organic and acquisition growth strategies
From Organic Extend Cross-sell customer Acquisition Established 4— Pro2006 Enhance Provide forma market Strategies value full synergistic to reputation Strategies ororganic 2014, suite expand share proposition of CAGR gains growth services RRTS’ as benefit a through preferred Utilize inrate service
Slide 6: Comprehensive service offering
RRTS’ International U.S. FTL TL, Expedited Dray LTL & Ultimate 20 400 Over 5Note: Warehousing Customs Consolidation International /Customs 30 LTL LCL FCL Comprehensive U.S. International Domestic =Brokers less-than-truckload; Ocean Import andState-of-the-Art Port Origin and / Worldwide Origin Consol
Slide 7: Asset-light carrier model
RRTS’ aCarrier Asset-Light RRTS 6continues purely isDifferentiated Effectively operates vs. transactional the toBroker vs. carrier, expand aAsset-Based flexible, Controls capacity, capacity Model basisasset-light Capacity RRTS’ Uniquely via andbest-in-class service control with model Positions provi
Slide 8: Asset-light capabilities: LTL, TL and logistics
RRTS’ LTL Non-asset, for Truckload Asset-light, Reefer, Air Spot Intermodal Capacity-driven Drayage Freight High-service Over Comprehensive based optimization Notes: 7(1) expansion Domestic and TL bid 2.1 on LTL Capacity-Based, dry Consolidation Ground Logistics technology and million their Services
Slide 9: Revenue and EBITDA by segment
Revenue TMS LTL TL Notes: 8EBITDA Logistics TL 27% 21% 17% 20% LTL Logistics (1) (1)=$38.7 of 56% 59% less-than-truckload; TMS million. TL = truckload; and TMS = transportation management solutions. All segment data reflects the exclusion of corporate expenses. (1) Based on Q2 2015 revenue of $518 m
Slide 10: Cross-selling sales force
Investment sales Over Sales Penetration 9(1) Total personnel 50 35,000 efforts TMS revenue in ofare customers a/Customers Global Sales supported of customers Force andUtilizing by growing Equipped the using Integrated Multiple multiple to Cross-Sell Solutions Service services RRTS’ Offerings sales a
Slide 11: Acquisition strategy and pipeline
StrongAcquisition Complementary opportunities Accelerated optimization marketplace RRTS 10 Employs has Continues cultural successfully growth yields across forfit Industry-Tested expansion synergies, towith Target substantial Maintain the andand acquired broader cost-efficient Criteria of expansion
Slide 12: Bruenger acquisition initiatives
(1) RRTS’ ($ $175 126% $90 13% $150 $52 20% $80 $18 $23 Bruenger Initiatives In Operating 11 2014 in$24 $53 $36 $15 88% millions) $150 36% Capabilities the Includes $101 $39 $15 Prime expertise related $125 50% OEM/Expedited $8Revenue D&E $100 Morgan toFacilitate allows capacity CTW $75 at Southern,
Slide 13: Dedicated driver capacity and industry factors
(1) Factors Best-in-class — Recent Shipper Anticipated Increasing RRTS’ (number 4,500 (2) More 12 ~4,400 Advantageous Unique Dedicated acquisitions Constraining Focus Source: of than Costs 2010dedicated track 4,200 tripled on Business and www.ttnews.com, for Escalating Drivers record 3,900 expand 20
Slide 14: Revenue and EBITDA growth
$20.0 Positioned Revenue $2,103.7 $2,500.0 $1,500.0 $1,073.4 2010 $500.0 EBITDA ($ 6.9% $60.0 7.3% $80.0 $78.5 7.5% $40.0 (1) $0.0 (2)in millions) 13 2011 $120.8 $51.1 $34.4 (2) $2,000.0 $1,361.4 $1,000.0 and 2012 to6.1% $120.0 Continue Margin $160.0 Excludes Pro 2013 forma54% $1,872.8 $843.6 6.4% 2
Slide 15: EBITDA CAGR and P/E comparison to peers
(1) –RRTS EBITDA CAGR 20% 25% 14.0x 0% 2015 PEG 109 1.82 0.79 0.00 1.28 1.57 1.99 1.56 (3)Strong 14 .0.50 Ratio P/E 19.0x Remains 15% EBITDA business Growth 1.00 (3) 24.0x EBITDA Comparison 1.50 a 12 Forecast Compelling (1) model CAGR 29.0x 2.00 to10% 2015 34.0x 2.50 fundamentals Monthfrom 5%P/E Val
Slide 16: Q2 2015 performance
Multiple RRTS Revenue $460.2 $517.9 12.5% Adjusted $40.0 22.3% Adj. ($ Q2-14 $0.38 $0.44 15.8% (1)in per Adjusted Earnings millions) $32.7 share) is Q2-15 Growth Performing Avenues EBITDA toPer remove of Share (1)Well Growth the (1) and impact Drive Positioned of Strong $1.2for million Performance S
Slide 17: Capitalization as of June 30, 2015
RRTS ($ Capitalization June Net Balance Business Increased 16 inDebt 30, millions) is Sheet 2015 Well model /credit Capitalization Capitalized Net heet results facility Debt Strength in in (Credit 41.6% substantial with July andSufficient 2014 Facility Freeand free Cash Less now Capacity cash Flow C
Slide 18: Deep, experienced management team
Deep Years Name Peter Pat Bill Grant Mark Tyler Ben Cliff Michael Bob Entrepreneurial Proven RRTS’ 17 McKay Goodgion Kirkland Milane Cordes Armbruster Tatum Team DiBlasi Peterson Experience Crawford Position Leadership ability HummPresident with Vice Vice President, President to President, Executive
Slide 19: Growth strategy
LTL scope Further Leverage Non-asset Continued Enhancing Expand Fragmented RRTS Add Enhance Penetrate Evaluate Continue RRTS’ Full 18 Strategy complementary isObjective has extend into geographic aoffering value strategic to low-cost existing model complete Rapidly of focus growth expand TL new serv
Slide 20: Appendix
Appendix | Roa PUNNOL Transportation SVSICMS
Slide 21: EBITDA reconciliation
Reconciliation ($ 2015 expense The Restructuring infollowing thousands) 2014 4,373 2014 and expenses 2,859 ofThree 2013 Net IPO13,363 Income 2012 related Months have2011 7,883 not to expenses Ended EBITDA 2010 been 8,030 Twelve added Net —4,335 — income toMonths — 8,154 net —$income —16,471 Plus: En
Slide 22: EBITDA reconciliation by segment
Reconciliation ($ June 2015 Net Operating Plus: TL EBITDA LTL TMS Corporate Total in26,003 20,538 5,465 income 8,367 737 9,104 30, thousands) 2014 Provision Interest Depreciation 31,242 7,535 EBITDA 7,680 996 8,676 962 3,602 749 income (5,343) 337 (5,006) 16,061 19,663 7,931 8,893 5,726 6,089 6,838
Slide 23: Pro forma adjusted EBITDA reconciliation
2,103,693 Reconciliation ($ Depreciation Proinforma thousands) $adjusted 1,886,299 and ofTwelve amortization Revenues Pro EBITDA Forma Months toNet $ Pro 5,607 144,770 Ended Income Forma Acquired December to Revenues Procompanies Forma 31, 2014 Adjusted EBITDA Acquired 2013EBITDA Acquired forcompani
Slide 24: Adjusted EBITDA reconciliation
Reconciliation ($ Three Executive Separation June Net Plus: EBIT inincome 30, millions) Provision Interest Depreciation DA Months 2015 2014 $Officer Adjusted 38.8 32.7 $ expense 16.5 14.8 Severance Ended (continued) of for $EBITDA -1.2 $and income $-1.2 32.7 $2.9 4.4 $amortization 14.8 40.0 $Expense
Slide 25: Adjusted earnings per share reconciliation
Reconciliation ($ Three Executive Separation June Operating Provision Net Earnings inIncome 30, millions, Months 2015 2014 per for Officer income Adjusted 16.5 14.8 share income Severance Ended except (continued) of -0.7 Earnings $14.8 available 31.2 27.0 17.2 taxes per Expenses $share -1.2 Per 10.4
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