Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — Investor Presentation (February 2016)
20 slides from Roadrunner Transportation Systems's investor presentation, Feb 8, 2016
Slide 1: Investor Presentation
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 Investor Presentation
Slide 2: Forward-looking statements
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 Certain statements contained in this presentation may be deemed to be "forward-looking statements" under the federal securities laws, and RRTS intends that such forward-looking statements be subject to the safe-harbor created thereby. Thes
Slide 3: Since 2010 RRTS has Grown EBITDA at a CAGR of 30%
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 3 Since 2010 RRTS has Grown EBITDA at a CAGR of 30% Unparalleled acquisition strategy with a robust pipeline Strong organic growth with multiple avenues for expansion Broad geographic footprint supported by dedicated capacity network Compr
Slide 4: Organic Strategies Focus on Cash Flow
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 4 From 2006 to 2015, CAGR in Revenue of 20% and EBITDA of 28% • Extend market share gains through cost-efficient / high-service models • Cross-sell full suite of services to increase customer penetration and enhance profitability • Strateg
Slide 5: RRTS' Comprehensive Service Offering is Unique
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 5 Ultimate International Origin / Destination U.S. Customs and Port Consolidation/ Deconsolidation Ultimate Domestic Origin / Destination or Outbound Location FTL / FCL LTL / LCL Note: LTL = less-than-truckload; LCL = less-than-container l
Slide 6: RRTS' Differentiated Model Uniquely Positions Carrier Capabilities with Asset-Light Characteristics
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 6 RRTS’ Differentiated Model Uniquely Positions Carrier Capabilities with Asset-Light Characteristics for High-Quality, Low-Cost Solutions for Customers RRTS Effectively Controls Capacity with Limited Capital Commitment RRTS is the carri
Slide 7: TL Logistics and LTL segments
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 7 Notes: LTL = less-than-truckload; TL = truckload (1) In Q4 2015, RRTS’ TL Logistics segment recorded revenues of $305 million. OEM Solutions accounted for 48% of revenue, TL Services accounted for 36%, Intermodal Solutions accounted for
Slide 8: Investment in a Sales Force Equipped to Cross-Sell
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 8 • Sales efforts are supported by the Integrated Solutions sales team; designed to drive cross-selling of complete solutions across the enterprise capitalizing on individual cross-selling opportunities Investment in a Sales Force Equipped
Slide 9: Unique Business Model Drives Growth in Constrained Industry Capacity
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 [Discuss Inclusion] 9 Average Driver Age Shipper Focus on Safety and Liability Exposure RRTS’ Unique Business Model Drives Significant Growth and Margin Expansion in Periods of Constrained Industry Capacity • Best-in-class track record of
Slide 10: Positioned to Continue Achieving Earnings Growth
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 $34.4 $51.1 $78.5 $101.7 $120.8 $129.0 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2010 2011 2012 2013 2014 2015 $632.0 $843.6 $1,073.4 $1,361.4 $1,872.8 $1,995.0 $0.0 $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 2010 2011 2012 2013 20
Slide 11: RRTS Remains a Compelling Value Compared to Peers
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 11 RRTS Remains a Compelling Value Compared to Peers – Strong business model fundamentals are driving industry-leading growth PEG Ratio (3) Comparison 0.32 1.56 1.44 1.16 1.30 1.21 0.00 0.50 1.00 1.50 2.00 EBITDA Growth (1) to 12/31/2015 P
Slide 12: Adjusted EBITDA and Revenue
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 $123.1 $135.8 2014 2015 Adjusted EBITDA (1) ($ in millions) 12 $1,872.8 $1,995.0 2014 2015 Revenue ($ in millions) 6.5% Growth 10.3% Growth (1) Adjusted to remove the impact of $1.2 million of severance expenses related to the separation w
Slide 13: Cash Flow From Operations and CapEx
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 13 $37 $36 $41 $73 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% $- $20 $40 $60 $80 2012 2013 2014 2015 Perc en t o f R eve nu e $ in mil lio ns Cash Flow From Operations CapEx as a % of Revenue • Cash flow from operations (CFFO) was impacted in 2012 to 2
Slide 14: Net Debt to EBITDA and Capitalization
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 ($ in millions) December 31, 2015 Revolver 143.1$ Term Loan 296.3 Other Debt 11.9 Total Debt 451.3$ Less: Cash (8.7) Net Debt 442.6$ Pro Forma EBITDA (1) 134.8$ Net Debt to EBITDA Ratio 3.28x • Goal is to reduce net debt to EBITDA ratio to
Slide 15: Leadership Team is Well Equipped to Manage Substantial Growth
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 RRTS’ Leadership Team is Well Equipped to Manage Substantial Growth Throughout Each Segment • Entrepreneurial culture and team with well-established track record • Proven ability to identify and assimilate strategic acquisitions, efficient
Slide 16: RRTS is a Multi-billion Dollar Opportunity
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 • Expand geographic reach ― Fragmented TL markets • Enhance value proposition for customers ― Leverage complete Global Solutions, TL, and LTL capabilities • Add complementary services ― Enhance offering and value provided to customers • Pe
Slide 17: Appendix
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 17
Slide 18: Reconciliation of Net Income to EBITDA
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 Reconciliation of Net Income to EBITDA ($ in thousands) Twelve Months Ended December 31, 2015 2014 2013 2012 2011 2010 Net income 48,000$ 51,974$ 48,996$ 37,530$ 25,871$ 21,007$ Plus: Provision for income taxes 29,234 30,349 28,484 23,390
Slide 19: Reconciliation of Pro Forma EBITDA
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 Reconciliation of Pro Forma EBITDA ($ in thousands) Twelve Months Ended December 31, 2015 Acquired companies net income for the period prior to acquisition 2,492$ Plus: Provision for income taxes 994 Plus: Interest expense 159 Plus: Deprec
Slide 20: Reconciliation of EBITDA to Adjusted EBITDA
20 57 84 17 81 122 189 218 239 20 102 63 211 92 58 111 26 29 Reconciliation of EBITDA to Adjusted EBITDA ($ in millions) Twelve Months Executive Officer Termination of IC Adjusted Ended Separation Lease Purchase Transaction Twelve Months Ended December 31, 2015 Severance Expenses Guarantees Expenses
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