Roadrunner Transportation Systems Reports Second Quarter and First Half 2019 Results

August 7, 2019 at 6:00 AM EDT
  • Revenue and Adjusted EBITDA declined in 2019 second quarter primarily due to low market demand in air and ground expedited logistics at the Active On-Demand segment
  • Ascent Global Logistics (Ascent) segment earned lower revenue and marginally lower Adjusted EBITDA in 2019 second quarter due to declines in truckload volumes and rate mix which offset revenue improvements in international freight forwarding and retail consolidation
  • LTL segment continued to improve freight quality and operating metrics despite a slight decline in second quarter revenue and Adjusted EBITDA
  • Truckload segment Adjusted EBITDA declined due to lower revenue and higher costs at certain operating units
  • Narrowing strategic focus to logistics and asset-light LTL segments

 

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Aug. 7, 2019-- Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, today announced results for the second quarter ended June 30, 2019. The company changed its segment reporting effective April 1, 2019, when the company began assessing the performance of the Active On-Demand air and ground expedited logistics business separately from its truckload businesses. Segment information for prior periods has been adjusted to align with the new segment structure.

Second Quarter Financial Results

Revenues for the second quarter ended June 30, 2019 were $480.7 million, compared to revenues of $558.0 million for the second quarter ended June 30, 2018. Lower revenues were primarily due to declines of $63.3 million in air and ground expedited logistics at Active On-Demand as well as reduced truckload shipment volumes and rate mix at Ascent and lower volumes at certain Truckload operating units.

Operating loss was $137.8 million in the second quarter of 2019, compared to $11.4 million in the second quarter of 2018. Included in the 2019 operating loss was $108.3 million of goodwill, intangible asset, software and asset impairment charges. Excluding impairment charges, the higher consolidated operating loss in the second quarter of 2019 was attributable to a decrease of over $10 million in operating results at Active On-Demand as well as declines in LTL and Ascent. These declines were partially offset by improved operating results in Truckload.

Net loss was $141.9 million in the second quarter of 2019, compared to $42.0 million in the second quarter of 2018. In addition to the consolidated operating loss explanations above, the consolidated net loss in the second quarter of 2019 was impacted by a decrease in interest expense of $29.6 million (due to the absence of interest on the company’s preferred stock which was fully redeemed after completion of the company’s rights offering in February 2019) and a lower benefit from income taxes. The company’s effective income tax rate was 0.4% and 8.0% during the second quarter of 2019 and 2018, respectively.

Diluted loss per share available to common stockholders was $3.77 for the second quarter of 2019, compared to diluted loss per share of $27.24 for the second quarter of 2018. On April 5, 2019, the company executed a 1-for-25 reverse stock split. All share and per common share data has been retroactively adjusted for all periods presented. After reflecting the impact of the reverse stock split, the weighted average common stock outstanding used in the calculation of diluted loss per share was significantly higher in the second quarter of 2019 due to the company’s issuance of 36 million shares of common stock in the rights offering which was completed in February 2019.

(In thousands)

Revenue Comparison of Second Quarter 2019 to 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Q2 2019 Revenues

$

130,160

 

 

$

101,492

 

 

$

117,076

 

 

$

141,472

 

 

$

(9,512)

 

 

$

480,688

 

Q2 2018 Revenues

144,630

 

 

164,770

 

 

117,164

 

 

145,761

 

 

(14,299)

 

 

558,026

 

Difference

$

(14,470)

 

 

$

(63,278)

 

 

$

(88)

 

 

$

(4,289)

 

 

$

4,787

 

 

$

(77,338)

 

Adjusted EBITDA for the quarters ended June 30, 2019 and 2018 was calculated as follows:

(In thousands)

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Net (loss) income

$

5,777

 

 

$

(2,614

)

 

$

(4,494

)

 

$

(104,278

)

 

$

(36,340

)

 

$

(141,949

)

Plus: Total interest expense

95

 

 

 

 

54

 

 

772

 

 

3,711

 

 

4,632

 

Plus: Provision (benefit) for income taxes

8

 

 

 

 

 

 

 

 

(532

)

 

(524

)

Plus: Depreciation and amortization

1,616

 

 

2,125

 

 

1,085

 

 

7,030

 

 

2,932

 

 

14,788

 

Plus: Impairment charges

 

 

 

 

 

 

95,336

 

 

12,995

 

 

108,331

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

4,594

 

 

4,594

 

Plus: Settlement of contingent purchase obligation

 

 

 

 

 

 

 

 

360

 

 

360

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

3,242

 

 

3,242

 

Adjusted EBITDA

$

7,496

 

 

$

(489

)

 

$

(3,355

)

 

$

(1,140

)

 

$

(9,038

)

 

$

(6,526

)

Adjusted EBITDA as a % of revenue

 

5.8 %

 

 

 

(0.5)%

 

 

 

(2.9) %

 

 

 

(0.8)%

 

 

 

 

 

 

 

(1.4) %

 

(In thousands)

Three Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Net (loss) income

$

7,285

 

 

$

7,808

 

 

$

(3,763

)

 

$

(8,566

)

 

$

(44,719

)

 

$

(41,955

)

Plus: Total interest expense

29

 

 

 

 

20

 

 

8

 

 

34,175

 

 

34,232

 

Plus: Benefit from income taxes

 

 

 

 

 

 

 

 

(3,652

)

 

(3,652

)

Plus: Depreciation and amortization

1,168

 

 

2,036

 

 

900

 

 

4,205

 

 

815

 

 

9,124

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

 

426

 

 

426

 

Plus: Operations restructuring costs

 

 

 

 

 

 

4,655

 

 

 

 

4,655

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

3,911

 

 

3,911

 

Adjusted EBITDA

$

8,482

 

 

$

9,844

 

 

$

(2,843

)

 

$

302

 

 

$

(9,044

)

 

$

6,741

 

Adjusted EBITDA as a % of revenue

5.9 %

 

 

6.0 %

 

(2.4)%

0.2 %

 

 

 

 

 

 

 

1.2 %

 

 

Adjusted EBITDA Comparison of Second Quarter 2019 to 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Adjusted EBITDA Improvement/ (Decline)

$

(986)

 

 

$

(10,333)

 

 

$

(512)

 

 

$

(1,442)

 

 

$

6

 

 

$

(13,267)

 

 

For more information about Adjusted EBITDA, see “Non-GAAP Financial Measures” below and the company’s SEC filings.

First Half Financial Results

Revenues for the first half of 2019 were $987.8 million, compared to revenues of $1,128.0 million for the first half of 2018. Lower revenues were primarily due to declines of $115.3 million in air and ground expedited logistics at Active On-Demand.

Operating loss in the first half of 2019 was $158.6 million, compared to $24.8 million in the first half of 2018. Included in the 2019 operating loss was $109.1 million of goodwill, intangible asset, software and asset impairment charges. Excluding impairment charges, the higher consolidated operating loss in the first half of 2019 was attributable to a decrease of over $13 million in operating results at Active On-Demand as well as declines in Truckload and Ascent. These declines were partially offset by improved operating results in LTL.

Net loss increased to $168.9 million for the first half of 2019, compared to $65.6 million in the first half of 2018. In addition to the consolidated operating loss explanations above, the consolidated net loss in the first half of 2019 included a loss on debt restructuring of $2.3 million and a decrease in interest expense of $35.3 million due to the waiver of interest on the company’s preferred stock until it was fully redeemed after completion of the company’s rights offering in February 2019. The effective income tax rate was 0.3% and 4.3% during the first half of 2019 and 2018, respectively.

Diluted loss per share available to common stockholders was $6.39 for the first half of 2019, compared to diluted loss per share of $42.62 for the first half of 2018. As previously mentioned, the weighted average common stock outstanding used in the calculation of diluted loss per share was significantly higher in the first half of 2019 due to the company’s issuance of 36 million shares of common stock in the rights offering which was completed in February 2019.

(In thousands)

Revenue Comparison of First Half 2019 to 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

YTD 2019 Revenues

$

261,853

 

 

$

244,263

 

 

$

219,898

 

 

$

278,483

 

 

$

(16,661)

 

 

$

987,836

 

YTD 2018 Revenues

279,573

 

 

359,536

 

 

230,289

 

 

290,318

 

 

(31,706)

 

 

1,128,010

 

Difference

$

(17,720)

 

 

$

(115,273)

 

 

$

(10,391)

 

 

$

(11,835)

 

 

$

15,045

 

 

$

(140,174)

 

Adjusted EBITDA for the first half of 2019 and 2018 was calculated as follows:

(In thousands)

Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Net (loss) income

$

11,044

 

 

$

583

 

 

$

(10,363

)

 

$

(111,886

)

 

$

(58,326

)

 

$

(168,948

)

Plus: Total interest expense

188

 

 

 

 

88

 

 

1,464

 

 

6,774

 

 

8,514

 

Plus: Provision (benefit) for income taxes

20

 

 

 

 

 

 

 

 

(473

)

 

(453

)

Plus: Depreciation and amortization

3,298

 

 

4,221

 

 

1,723

 

 

16,121

 

 

4,967

 

 

30,330

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

 

6,325

 

 

6,325

 

Plus: Settlement of contingent purchase obligation

 

 

 

 

 

 

 

360

 

 

360

 

Plus: Impairment charges

 

 

 

 

 

 

95,336

 

 

13,773

 

 

109,109

 

Plus: Loss on debt restructuring

 

 

 

 

 

 

 

 

2,270

 

 

2,270

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

6,674

 

 

6,674

 

Adjusted EBITDA

$

14,550

 

 

$

4,804

 

 

$

(8,552

)

 

$

1,035

 

 

$

(17,656

)

 

$

(5,819

)

Adjusted EBITDA as a % of revenue

 

5.6 %

 

 

 

2.0 %

 

 

 

(3.9) %

 

 

 

0.4 %

 

 

 

 

 

 

 

(0.6) %

(In thousands)

Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Net (loss) income

$

13,962

 

 

$

14,261

 

 

$

(12,483

)

 

$

(10,630

)

 

$

(70,708

)

 

$

(65,598

)

Plus: Total interest expense

59

 

 

 

 

56

 

 

19

 

 

43,641

 

 

43,775

 

Plus: Benefit from income taxes

 

 

 

 

 

 

 

 

(2,982

)

 

(2,982

)

Plus: Depreciation and amortization

2,356

 

 

4,030

 

 

1,813

 

 

8,507

 

 

1,483

 

 

18,189

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

 

1,003

 

 

1,003

 

Plus: Operations restructuring costs

 

 

 

 

 

 

4,655

 

 

 

 

4,655

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

10,824

 

 

10,824

 

Adjusted EBITDA

$

16,377

 

 

$

18,291

 

 

$

(10,614

)

 

$

2,551

 

 

$

(16,739

)

 

$

9,866

 

Adjusted EBITDA as a % of revenue

 

5.9 %

 

 

 

5.1 %

 

 

 

(4.6) %

 

 

 

0.9 %

 

 

 

 

 

 

 

0.9%

 

 

 

 

Adjusted EBITDA Comparison of First Half 2019 to 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Ascent

 

Active On-Demand

 

LTL

 

TL

 

Corporate/ Eliminations

 

Total

Adjusted EBITDA Improvement/ (Decline) 

$

(1,827)

 

 

$

(13,487)

 

 

$

2,062

 

 

$

(1,516)

 

 

$

(917)

 

 

$

(15,685)

 

 

CEO Comments on Second Quarter Results

“Challenging market conditions resulted in revenue and Adjusted EBITDA declines in the second quarter, primarily driven by low demand in air and ground expedited logistics at Active On-Demand. As we have stated in the past, Active On-Demand is a well-positioned logistics business that can exhibit short-term volatility. Historically, these variations moderate over longer periods and do not impact our ability to capture improved revenue and profits as expedite demand improves,” said Curt Stoelting, Chief Executive Officer of Roadrunner.

“Ascent’s Adjusted EBITDA in the second quarter remained steady. We achieved improvements in international freight forwarding that were primarily offset by lower truckload volumes and rate mix in domestic freight management. We continue to invest in the integration of Ascent, which we expect will benefit future top-line and bottom-line results. These efforts include the development of a proprietary enterprise brokerage platform, which will support our logistics operations in both the Ascent and Active On-Demand segments and streamline our logistics go-to-market capabilities,” said Stoelting.

Stoelting added, “We continued to make progress in our asset-light LTL segment in the second quarter. Excluding backhaul and fuel surcharge revenue, LTL revenue grew by 3.4% in the second quarter. Freight quality and yield continued to improve during the quarter. In the second quarter, yield improvements and lower bad debts were offset by increased equipment repair and personnel related costs as we reduced deferred maintenance and built a stronger foundation for future growth. Our on-going efforts to eliminate unprofitable freight and increase density in key lanes continues to produce improvements in our key operating metrics.”

“In the Truckload segment, improvements in temperature controlled and flatbed were offset by declines in dry van which had higher costs and intermodal services which experienced reduced volumes in the second quarter compared to the prior year. As benefits from fleet upgrades and streamlined operations in dry van are realized, we expect better results in this segment. Going forward, we are putting less focus on the Truckload segment in favor of our logistics and asset-light LTL segments. Accordingly, we are undertaking a strategic assessment of Truckload assets,” said Stoelting.

“Throughout 2019, we have invested over $50 million to upgrade our fleets in all four segments. Because of the timing of the equipment delivery schedules and transition costs, we have not yet seen the full benefits from these investments,” said Stoelting.

Stoelting concluded, “Despite a challenging second quarter, we remain committed to our longer-term business plans to improve operating results, followed by growth and optimization opportunities. Challenging market conditions can cloud progress in making structural improvements, so it’s important to note that we are encouraged by our teams’ efforts in all segments. Although we remain committed to achieving better than average industry margins, we are not currently in position to provide short-term or longer-term financial guidance. In summary, we believe that narrowing our strategic focus to our logistics and asset-light LTL segments will improve our allocation of resources and ultimately our return on invested capital and enterprise valuation.”

Conference Call and Webcast

Roadrunner management will host a conference call to discuss the company’s results for the quarter ended June 30, 2019 on Wednesday, August 7, 2019 at 10:00 a.m. Eastern Time. To access the conference call, please dial 866-763-0340 (U.S.) or 703-871-3799 (International) approximately 10 minutes prior to the start of the call. Callers will be prompted for passcode 4789418. Presentation materials and a live webcast of the call can be accessed on the “events and presentations” page in the Investor Relations section of Roadrunner's website, www.rrts.com. The conference call may include forward-looking statements.

If you are unable to listen to the live call, a replay will be available through Wednesday, August 14, 2019 and can be accessed by dialing 855-859-2056 (U.S.) or 404-537-3406 (International). Callers will be prompted for passcode 4789418. An archived version of the webcast will also be available for a period of time under the Investor Relations section of Roadrunner's website, www.rrts.com.

About Roadrunner Transportation Systems, Inc.

Roadrunner Transportation Systems is a leading asset-right transportation and asset-light logistics service provider offering a full suite of solutions under the Roadrunner®, Active On-Demand® and Ascent Global Logistics® brands. The Roadrunner brand offers less-than-truckload, over-the-road truckload and intermodal services. Active On-Demand offers premium mission critical air and ground transportation solutions. Ascent Global Logistics offers domestic freight management and brokerage, warehousing and retail consolidation, international freight forwarding and customs brokerage. For more information, please visit Roadrunner’s websites, www.rrts.com and www.ascentgl.com.

Safe Harbor Statement

This press release 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, statements regarding Roadrunner’s additional integration efforts at Ascent; the ability of all segments to achieve better than average industry margins; the success of the LTL segment to eliminate unprofitable freight and increase density in key lanes; the plan to put less focus on the Truckload segment; and the ability to improve return on invested capital and enterprise valuation. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity,” and similar words or phrases or the negatives of these words or phrases. These forward-looking statements are based on Roadrunner’s current assumptions, expectations and beliefs and are subject to substantial risks, estimates, assumptions, uncertainties and changes in circumstances that may cause Roadrunner’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. Such factors include, among others, risks related to the restatement of Roadrunner’s previously issued financial statements, the remediation of Roadrunner’s identified material weaknesses in its internal control over financial reporting, the litigation resulting from the restatement of Roadrunner’s previously issued financial statements and the other risk factors contained in Roadrunner’s SEC filings, including Roadrunner’s Annual Report on Form 10-K for the year ended December 31, 2018. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, Roadrunner assumes no obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date hereof.

Non-GAAP Financial Measures

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, settlement of contingent purchase obligations, operations restructuring costs, and corporate restructuring and restatement costs associated with legal, consulting and accounting matters, including internal and external investigations. Roadrunner uses Adjusted EBITDA as a supplemental measure in evaluating its operating performance and when determining executive incentive compensation. Roadrunner believes Adjusted EBITDA is useful to investors in evaluating its performance compared to other companies in its industry because it assists in analyzing and benchmarking the performance and value of a business. The calculation of Adjusted EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. Although Roadrunner’s management uses Adjusted EBITDA as a financial measure to assess the performance of its business compared to that of others in Roadrunner’s industry, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of Roadrunner’s results as reported under GAAP. Some of these limitations are:

  • Adjusted EBITDA does not reflect Roadrunner’s cash expenditures, future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, Roadrunner’s working capital needs;
  • Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on Roadrunner’s debt or dividend payments on Roadrunner’s preferred stock;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
  • Other companies in Roadrunner’s industry may calculate Adjusted EBITDA differently than Roadrunner does, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to Roadrunner to invest in the growth of the company’s business. Roadrunner compensates for these limitations by relying primarily on Roadrunner’s results of operations under GAAP.

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In thousands, except par value)

June 30,
2019

 

December 31,
2018

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

4,896

 

 

$

11,179

 

Accounts receivable, net of allowances of $8,260 and $9,980, respectively

243,457

 

 

274,843

 

Income tax receivable

2,366

 

 

3,910

 

Prepaid expenses and other current assets

50,103

 

 

61,106

 

Total current assets

300,822

 

 

351,038

 

Property and equipment, net of accumulated depreciation of $153,335 and $130,077, respectively

212,945

 

 

188,706

 

Other assets:

 

 

 

Operating lease right-of-use asset

114,523

 

 

 

Goodwill

171,900

 

 

264,826

 

Intangible assets, net

37,144

 

 

42,526

 

Other noncurrent assets

5,987

 

 

6,361

 

Total other assets

329,554

 

 

313,713

 

Total assets

$

843,321

 

 

$

853,457

 

LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Current maturities of debt

$

2,566

 

 

$

13,171

 

Current maturities of indebtedness to related party

9,133

 

 

 

Current finance lease liability

21,799

 

 

13,229

 

Current operating lease liability

35,373

 

 

 

Accounts payable

132,549

 

 

160,242

 

Accrued expenses and other current liabilities

89,889

 

 

110,943

 

Total current liabilities

291,309

 

 

297,585

 

Deferred tax liabilities

3,225

 

 

3,953

 

Other long-term liabilities

3,339

 

 

7,857

 

Long-term finance lease liability

72,150

 

 

37,737

 

Long-term operating lease liability

85,223

 

 

 

Long-term debt, net of current maturities

134,830

 

 

155,596

 

Long-term indebtedness to related party

31,848

 

 

 

Preferred stock

 

 

402,884

 

Total liabilities

621,924

 

 

905,612

 

Commitments and contingencies (Note 12)

 

 

 

Stockholders’ investment (deficit):

 

 

 

Common stock $.01 par value; 44,000 and 4,200 shares authorized, respectively; 37,637 and 1,556 shares issued and outstanding, respectively

376

 

 

16

 

Additional paid-in capital

847,383

 

 

405,243

 

Retained deficit

(626,362

)

 

(457,414

)

Total stockholders’ investment (deficit)

221,397

 

 

(52,155

)

Total liabilities and stockholders’ investment (deficit)

$

843,321

 

 

$

853,457

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

(In thousands, except per share amounts)

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2019

 

2018

 

2019

 

2018

Revenues

$

480,688

 

 

$

558,026

 

 

$

987,836

 

 

$

1,128,010

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation costs

317,785

 

 

380,072

 

 

660,560

 

 

781,035

 

Personnel and related benefits

81,686

 

 

75,838

 

 

160,901

 

 

151,725

 

Other operating expenses

95,939

 

 

99,712

 

 

185,553

 

 

197,211

 

Depreciation and amortization

14,788

 

 

9,124

 

 

30,330

 

 

18,189

 

Operations restructuring costs

 

 

4,655

 

 

 

 

4,655

 

Impairment charges

108,331

 

 

 

 

109,109

 

 

 

Total operating expenses

618,529

 

 

569,401

 

 

1,146,453

 

 

1,152,815

 

Operating loss

(137,841

)

 

(11,375

)

 

(158,617

)

 

(24,805

)

Interest expense:

 

 

 

 

 

 

 

Interest expense - preferred stock

 

 

31,609

 

 

 

 

38,724

 

Interest expense - debt

4,632

 

 

2,623

 

 

8,514

 

 

5,051

 

Total interest expense

4,632

 

 

34,232

 

 

8,514

 

 

43,775

 

Loss on debt restructuring

 

 

 

 

2,270

 

 

 

Loss before income taxes

(142,473

)

 

(45,607

)

 

(169,401

)

 

(68,580

)

Benefit from income taxes

(524

)

 

(3,652

)

 

(453

)

 

(2,982

)

Net loss

$

(141,949

)

 

$

(41,955

)

 

$

(168,948

)

 

$

(65,598

)

Loss per share:

 

 

 

 

 

 

 

Basic

$

(3.77

)

 

$

(27.24

)

 

$

(6.39

)

 

$

(42.62

)

Diluted

$

(3.77

)

 

$

(27.24

)

 

$

(6.39

)

 

$

(42.62

)

Weighted average common stock outstanding:

 

 

 

 

 

 

 

Basic

37,603

 

 

1,540

 

 

26,442

 

 

1,539

 

Diluted

37,603

 

 

1,540

 

 

26,442

 

 

1,539

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ INVESTMENT (DEFICIT)

(Unaudited)

 

 

Common Stock

 

 

 

 

 

 

(In thousands, except shares)

Shares

 

Amount

 

Additional Paid-In Capital

 

Retained Deficit

 

Total Stockholders'

Investment (Deficit)

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2018

1,555,868

 

 

$

16

 

 

$

405,243

 

 

$

(457,414

)

 

$

(52,155

)

Issuance of restricted stock units, net of taxes paid

5,664

 

 

 

 

(8

)

 

 

 

(8

)

Issuance of common stock

36,000,000

 

 

360

 

 

449,640

 

 

 

 

450,000

 

Common stock issuance costs

 

 

 

 

(11,985

)

 

 

 

(11,985

)

Share-based compensation

 

 

 

 

1,599

 

 

 

 

1,599

 

Net loss

 

 

 

 

 

 

(26,999

)

 

(26,999

)

BALANCE, March 31, 2019

37,561,532

 

 

$

376

 

 

$

844,489

 

 

$

(484,413

)

 

$

360,452

 

Issuance of restricted stock units, net of taxes paid

75,590

 

 

 

 

(175

)

 

 

 

(175

)

Share-based compensation

 

 

 

 

3,069

 

 

 

 

3,069

 

Net loss

 

 

 

 

 

 

(141,949

)

 

(141,949

)

BALANCE, June 30, 2019

37,637,122

 

 

$

376

 

 

$

847,383

 

 

$

(626,362

)

 

$

221,397

 

 

Common Stock

 

 

 

 

 

 

(In thousands, except shares)

Shares

 

Amount

 

Additional Paid-In Capital

 

Retained Deficit

 

Total Stockholders'

Investment (Deficit)

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2017

1,536,925

 

 

$

15

 

 

$

403,535

 

 

$

(292,703

)

 

$

110,847

 

Issuance of restricted stock units, net of taxes paid

3,272

 

 

 

 

(75

)

 

 

 

(75

)

Share-based compensation

 

 

 

 

523

 

 

 

 

523

 

Cumulative effect of change in accounting principle

 

 

 

 

 

 

886

 

 

886

 

Net loss

 

 

 

 

 

 

(23,643

)

 

(23,643

)

BALANCE, March 31, 2018

1,540,197

 

 

$

15

 

 

$

403,983

 

 

$

(315,460

)

 

$

88,538

 

Issuance of restricted stock units, net of taxes paid

93

 

 

 

 

(1

)

 

 

 

(1

)

Share-based compensation

 

 

 

 

372

 

 

 

 

372

 

Net loss

 

 

 

 

 

 

(41,955

)

 

(41,955

)

BALANCE, June 30, 2018

1,540,290

 

 

$

15

 

 

$

404,354

 

 

$

(357,415

)

 

$

46,954

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

(In thousands)

Six Months Ended

 

June 30,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

Net loss

$

(168,948

)

 

$

(65,598

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

30,720

 

 

18,552

 

Change in fair value of preferred stock

 

 

37,663

 

Amortization of preferred stock issuance costs

 

 

1,061

 

Loss on disposal of property and equipment

355

 

 

1,972

 

Share-based compensation

4,668

 

 

895

 

Loss on debt restructuring

2,270

 

 

 

Provision for bad debts

491

 

 

2,030

 

Deferred tax benefit

(729

)

 

(3,544

)

Impairment charges

109,109

 

 

 

Changes in:

 

 

 

Accounts receivable

30,895

 

 

27,156

 

Income tax receivable

1,544

 

 

911

 

Prepaid expenses and other assets

30,676

 

 

6,900

 

Accounts payable

(29,879

)

 

(23,852

)

Accrued expenses and other liabilities

(30,718

)

 

(5,052

)

Net cash used in operating activities

(19,546

)

 

(906

)

Cash flows from investing activities:

 

 

 

Capital expenditures

(13,043

)

 

(11,391

)

Proceeds from sale of property and equipment

1,882

 

 

927

 

Net cash used in investing activities

(11,161

)

 

(10,464

)

Cash flows from financing activities:

 

 

 

Borrowings under revolving credit facilities

523,478

 

 

 

Payments under revolving credit facilities

(526,643

)

 

 

Term debt borrowings

52,592

 

 

557

 

Term debt payments

(39,714

)

 

(11,846

)

Debt issuance costs

(2,005

)

 

 

Payments of debt extinguishment costs

(693

)

 

 

Proceeds from issuance of common stock

450,000

 

 

 

Common stock issuance costs

(10,514

)

 

 

Proceeds from issuance of preferred stock

 

 

34,999

 

Preferred stock issuance costs

 

 

(1,061

)

Preferred stock payments

(402,884

)

 

 

Issuance of restricted stock units, net of taxes paid

(183

)

 

(76

)

Payments on insurance premium financing

(9,957

)

 

 

Payment of capital lease obligation

(9,053

)

 

(1,267

)

Net cash provided by financing activities

24,424

 

 

21,306

 

Net (decrease) increase in cash and cash equivalents

(6,283

)

 

9,936

 

Cash and cash equivalents:

 

 

 

Beginning of period

11,179

 

 

25,702

 

End of period

$

4,896

 

 

$

35,638

 

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited)

 

 

Six Months Ended

(In thousands)

June 30,

 

2019

 

2018

Supplemental cash flow information:

 

 

 

Cash paid for interest

$

8,125

 

 

$

4,966

 

Cash (refunds from) paid for income taxes, net

$

(787

)

 

$

144

 

Non-cash finance leases and other obligations to acquire assets

$

52,456

 

 

$

10,451

 

Capital expenditures, not yet paid

$

2,814

 

 

$

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

Source: Roadrunner Transportation Systems, Inc.

Contact:
Reputation Partners
Marilyn Vollrath
414-376-8834
ir@rrts.com