Roadrunner Transportation Systems, Inc. · OTC:RRTS
Roadrunner Transportation Systems — FY2016 Earnings Presentation
19 slides from Roadrunner Transportation Systems's earnings presentation, Jan 31, 2018
Slide 1: Restatement Summary, 2016 Results & 2017 Business Trends
Restatement Summary, 2016 Results & 2017 Business Trends January 31, 2018
Slide 2: Safe Harbor Statement
2 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 include, among others, sta
Slide 3: Topics for Today's Call
3 Topics for Today’s Call 1. Restatement Summary 2. 2016 Financial Results 3. 2017 Business Trends 4. Question & Answer Session
Slide 4: Restatement Summary: Background and Scope
Restatement Summary Background and Scope • Internal investigation conducted by our Audit Committee and overseen by independent outside counsel • Reviews by company and outside consultants covered our operating companies and corporate headquarters • Includes reporting periods from 2011 to Q3 of 2016
Slide 5: Restatement Summary: Key Causes
Restatement Summary Key Causes • Increased size and complexity from acquisitions of 25 non-public companies • Inconsistent accounting systems and policies and procedures • Override of internal controls by prior management Overstated Net Income by $66.5 million • $15.2 in 2011 through 2013 • $19.3 in
Slide 6: Restatement Corrective Actions
6 Restatement Corrective Actions * Note – See Leadership and Top Management Team Bios in Appendix • New independent Chairman of the Board • New CEO, President / COO, CFO and CIO • New Role -- Chief Compliance Officer • New Corporate Controller, Treasurer and FP&A team • New Internal Audit Director w
Slide 7: Capital In Place to Support the Operational Turnaround
Capital In Place to Support the Operational Turnaround Raised more than $540 million in new financing • Preferred stock investment* - recorded as debt for GAAP purposes • No mandatory redemption payments until 2023 • Allows for deferred payment of dividends, if deferred earns interest until paid • A
Slide 8: Summary of 2016 Results
Summary of 2016 Results Financial Summary • Revenues: $2,033.2 million vs. $1,992.2 million in 2015 • Net loss, excluding impairment charges, of $35.6 million in 2016 vs. net income of $25.6 million in 2015 • Adjusted EBITDA of $7.8 million in 2016 vs. $93.6 million in 2015 Declines in EBITDA • Redu
Slide 9: 2017 Business Trends
2017 Business Trends
Slide 10: 2017 Business Trends
10 2017 Business Trends • Difficult market conditions in first three quarters, particularly at Express Ground, Intermodal and Temp Control • Improving rate environment later in year benefiting these businesses Truckload Logistics • Continuing investment cycle focused on improving customer experience
Slide 11: 2017 – An Important Combination of Change and Stability
11 2017 – An Important Combination of Change and Stability… • Re-stated financials for 2011 to 2016 • Re-financed the business with capital to support our operational turnaround – Preferred Investment and ABL totaling ~ $540m – Unitrans divestiture ~ $95m • Re-staffed the business with a new exec te
Slide 12: Future Communications
Future Communications 12 Topics for our Next Conference Call • 2017 Results & Analysis – 10-Qs through 9/30/17 by March – Full Year 2017 as soon as possible thereafter • Details surrounding 2018 plans and goals – Don’t expect guidance – What you can expect • Guideposts for progress over the next few
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: New Executive Leadership Team
New Executive Leadership Team Chief Executive Officer • Joined Roadrunner in early 2016 as President and COO • Previously served as CEO of RC2 Corp from 2003 to 2011 and at TOMY International for two years after they acquired RC2 • Deep experience in consumer products, brand and channel management,
Slide 16: Top Management Team
Top Management Team 16 Key Management Positions Scott Cousins, Chief Information Officer • Joined Roadrunner in January 2017 as CIO • Held previous CIO positions at food distributor KeHe and NCH Marketing • Earlier served as Senior Vice President of Information Technology at IndyMac Bank and as Asso
Slide 17: Top Customers (2016)
17 Top Customers (2016) Industry Leading Statistics (1) Customer Revenue % of Total $252.1 M 12.4% (2) $116.8 M 5.7% (2) $79.3 M 3.9% ( $73.7 M 3.6% $43.2 M 2.1% $42.8 M 2.1% $28.5 M 1.4% $25.9 M 1.3% $25.3 M 1.2% $23.3 M 1.2% Top 10 $710.9 M 34.8% Total $2,033.2 M 100.0% Air Expedite Intermodal Dra
Slide 18: Truckload Logistics and LTL Segments
18 Truckload Logistics (TL) (1) (~61% of Revenue) 2016 Revenue Express (Air & Ground) $719M • Air and ground expedite services • Primarily serves large OEMs • Oversees 11 cargo jets and 1,200 trucks operated by company drivers, IC’s and contract carriers Truckload Plus (Brokerage) $263M • Company br
Slide 19: Preferred Investment Summary
19 Preferred Investment Summary – treated as debt for GAAP purposes • Elliott Management $540 million Preferred Investment provided a full refinancing of existing credit facility • Over half of the Preferred Investment redeemed and retired with ABL Financing and Sale of Unitrans (see notes) • Divide
Roadrunner Transportation Systems — FY2016 Earnings Presentation on 6ix