XPO Logistics Announces Fourth Quarter and Full Year 2012 Results
2013-02-27 22:04:27 -
Provides Full Year 2013 Outlook
Acquires Covered Logistics
GREENWICH, Conn. - February 27, 2013 - XPO Logistics, Inc. (NYSE: XPO) today
announced financial results for the fourth quarter and full year 2012.
For the fourth quarter of 2012, total revenue was $108.5 million, a 146.1%
increase from the same period the prior year. Gross margin dollars increased
118.4% year-over-year to $15.7 million, and gross margin percentage was 14.4%.
Consistent with the company's previously announced strategy, investments in
long-term growth impacted fourth quarter results. The company reported a net
loss of $9.3 million for the quarter, compared with a net loss of $1.5 million
for the same period in 2011. The fourth quarter net loss available to common
shareholders was $10.1 million, or a loss of $0.57 per diluted share, compared
with a net loss available to common shareholders of $2.2 million, or a loss of
$0.27 per diluted share, for the same period in 2011.
Earnings (loss) before interest, taxes, depreciation and amortization
("EBITDA"), a non-GAAP financial measure, was a loss of $9.9 million for the
fourth quarter of 2012, compared with a loss of $2.1 million for the same period
in 2011. EBITDA includes $913,000 and $882,000 of non-cash share-based
compensation for the fourth quarters of 2012 and 2011, respectively. A
reconciliation of EBITDA to net income is provided in the attached financial
tables.
The company had $252.3 million of cash as of December 31, 2012.
2013 Outlook
The company provided the following outlook for full year 2013:
* An annual revenue run rate of more than $1 billion as of December 31;
* At least $300 million of acquired historical annual revenue;
* Positive EBITDA for the fourth quarter; and
* At least three new freight brokerage cold-starts.
Acquires Covered Logistics & Transportation LLC
On February 22, 2013, the company acquired substantially all of the operating
assets of Covered Logistics & Transportation LLC, a non-asset, third party
freight brokerage business with 2012 revenues of approximately $27 million. The
purchase price was $8 million in cash and $3 million in XPO common stock,
excluding any working capital adjustments, with no assumption of debt. The
acquisition is expected to be immediately accretive to earnings.
Founded in 2005, Covered Logistics has over 4,000 carrier relationships and a
strong track record of serving the manufacturing, postal, consumer, and oil and
gas sectors. Its offices are located in Lake Forest, Ill., and Dallas, Texas.
Co-founders Tuck Jasper, Paul Jasper and Patrick Gillihan will continue to lead
the operations, which are being rebranded as XPO Logistics.
CEO Comments
Bradley Jacobs, chairman and chief executive officer, said, "The actions we're
taking to scale up the business are continuing to drive results. Our fourth
quarter revenue was up 146% year-over-year, and gross margin dollars increased
by 118%. Our freight brokerage business generated 760% more revenue in the
quarter, as compared to the prior year period. Our expedite business achieved
top line growth of 8.7% for the quarter, and we have new initiatives in place to
gain margin. Freight forwarding had a 62% increase in gross margin dollars
versus fourth quarter 2011. While our investments in people and technology
resulted in a loss, as expected, they are fundamentally important to value
creation. We're currently on an annual revenue run rate of over $500 million,
and we expect that rate to be more than a billion dollars by year-end."
Jacobs continued, "Our most recent acquisition, Covered Logistics, is a well-run
freight brokerage operation that we plan to integrate and scale up quickly. The
Covered team has deep roots in the industry and they share our passion for
growth. This is our second acquisition of 2013 from a pipeline of solid
prospects. We expect to add at least $300 million of acquired historical annual
revenue in 2013.
"We remain focused on executing the three parts of our strategy: acquisitions,
cold-starts and the optimization of our operations. In 14 months, we've acquired
six companies and opened 17 cold-starts, eight in freight brokerage. Our
footprint now stands at 60 locations. We've grown our headcount from 208 to more
than 900 employees. We're steadily enhancing our proprietary technology, and
implementing leading edge recruitment and training programs. Most importantly,
we've created a driven culture that keeps us on track to grow XPO into a multi-
billion dollar company."
Fourth Quarter 2012 Results by Business Unit
* Freight brokerage: The company's freight brokerage business generated total
revenue of $71.1 million for the quarter, a 760.3% increase from the same
period the prior year. Year-over-year revenue growth was primarily due to
the acquisitions of Turbo Logistics, Kelron Logistics, Continental Freight
Services and BirdDog Logistics, as well as revenue growth from the company's
eight brokerage cold-start locations. The acquisition of Turbo Logistics on
October 24, 2012, had a positive revenue impact of $27.2 million for the
quarter. Gross margin percentage for the freight brokerage business was
13.4% for the quarter, compared with 16.8% for the same period in 2011. The
decline in gross margin percentage was primarily due to the addition of
seven new cold-starts in 2012, which are still in the start-up phase. The
fourth quarter operating loss was $2.5 million, compared with operating
income of $496,000 the prior year. The decline in 2012 operating income
primarily reflects a planned increase in SG&A expense associated with
significant growth initiatives, including sales force recruitment.
* Expedited transportation: The company's expedited services business
generated total revenue of $22.1 million for the quarter, an 8.7% increase
from the same period the prior year. Revenue growth was primarily driven by
an increase in average revenue-per-load and growth in the company's
domestic, international and temperature-controlled services. Gross margin
percentage was 16.5% for the quarter, compared with 20.9% for the same
period in 2011. The decrease in gross margin percentage primarily reflects
higher rates paid to independent fleet owners and owner-operators, effective
March 1, 2012, and an increase in the volume of cross-border loads, which
typically generate a lower margin. Fourth quarter operating income was $1.0
million, compared with $1.8 million the prior year, primarily reflecting the
year-over-year decrease in gross margin.
* Freight forwarding: The company's freight forwarding business generated
total revenue of $18.5 million for the quarter, a 10.1% increase from the
same period the prior year. Gross margin percentage was 13.5% for the
quarter, compared with 9.2% for the same period in 2011. The improvements in
revenue and gross margin percentage reflect a revenue increase from company-
owned branches. Fourth quarter operating income was $454,000, compared
with $35,000 for the same period the prior year. The increase in operating
income reflects a higher gross margin, partially offset by higher SG&A costs
associated with new company-owned locations in Chicago, Houston, Los
Angeles, Minneapolis, Charlotte and Atlanta.
* Corporate: Corporate SG&A expense for the fourth quarter of 2012 increased
by $5.3 million, compared with the same period the prior year. The increase
was driven by a higher headcount in corporate shared services and higher
purchased services. Corporate SG&A expense for the fourth quarter of 2012
included approximately $1.4 million of litigation-related legal costs; $1.0
million of acquisition-related transaction costs; and $913,000 of non-cash
share based compensation.
Full Year 2012 Financial Results
For the full year 2012, total revenue was $278.6 million, a 57.3% increase from
2011. Gross margin dollars increased 37.1% year-over-year to $40.8 million, and
gross margin percentage was 14.7%.
Consistent with the company's previously announced strategy, investments in
long-term growth impacted full year results. The company reported a net loss of
$20.3 million for the full year 2012, compared with net income of $759,000 for
2011. The net loss available to common shareholders was $23.3 million, or a loss
of $1.49 per diluted share, compared with a net loss available to common
shareholders of $44.6 million, or a loss of $5.41 per diluted share, for 2011.
The full year 2012 loss includes a charge of $0.19 per diluted share related to
$3.0 million in cumulative preferred dividends. The full year 2011 loss includes
a non-cash charge of $44.2 million, or $5.36 per diluted share, related to the
September 2011 equity investment in the company.
EBITDA was a loss of $25.8 million for the full year 2012, compared with $2.7
million of EBITDA generated in 2011. Full year 2012 EBITDA was impacted by a
$2.9 million expense ($1.9 million after tax) for acquisition-related
transaction costs; a $2.5 million expense ($1.6 million after tax) for
litigation-related legal costs; a $540,000 expense ($344,000 after tax) for
compensation, severance and professional fees related to the composition of the
company's executive team; a $480,000 expense ($306,000 after tax) for consulting
fees in connection with securing an agreement with the state of North Carolina
for up to $3.2 million in future tax incentives; and $4.4 million of non-cash
share-based compensation. A reconciliation of EBITDA to net income is provided
in the attached financial tables.
Conference Call
The company will hold a conference call on Thursday, February 28, 2013, at 8:30
a.m. Eastern Time. Participants can call toll-free (from U.S./Canada)
1-800-446-1671; international callers dial +1-847-413-3362. A live webcast of
the conference will be available on the Investor Relations area of the company's
website, www.xpologistics.com. The conference will be archived until March
30, 2013. To access the replay by phone, call toll-free (from U.S./Canada)
1-888-843-7419; international callers dial +1-630-652-3042. Use participant
passcode 34113016.
About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providers of non-
asset, third-party freight transportation services in North America. The company
uses its relationships with more than 22,000 ground, sea and air carriers to
find the best transportation solutions for its customers. XPO Logistics offers
its services through three business units: freight brokerage, expedited
transportation and freight forwarding. The company serves more than 7,750
customers in the retail, commercial, manufacturing and industrial sectors
through 60 locations, including 36 branches in the United States and Canada and
24 agent offices. www.xpologistics.com
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined under
Securities and Exchange Commission ("SEC") rules, such as earnings (loss) before
interest, taxes, depreciation and amortization ("EBITDA") for the quarters and
years ended December 31, 2012 and December 31, 2011. As required by SEC rules,
we provide reconciliations of these measures to the most directly comparable
measure under United States generally accepted accounting principles ("GAAP"),
which are set forth in the attachments to this release. We believe that EBITDA
improves comparability from period to period by removing the impact of our
capital structure (interest expense from our outstanding debt), asset base
(depreciation and amortization) and tax consequences. In addition to its use by
management, we believe that EBITDA is a measure widely used by securities
analysts, investors and others to evaluate the financial performance of
companies in our industry. Other companies may calculate EBITDA differently, and
therefore our EBITDA may not be comparable to similarly titled measures of other
companies. EBITDA is not a measure of financial performance or liquidity under
GAAP and should not be considered in isolation or as an alternative to net
income, cash flows from operating activities and other measures determined in
accordance with GAAP. Items excluded from EBITDA are significant and necessary
components of the operations of our business, and, therefore, EBITDA should only
be used as a supplemental measure of our operating performance.
Forward-Looking Statements
This press release includes 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, including, without limitation, our
2013 outlook with respect to annual revenue, acquisitions, fourth quarter 2013
EBITDA and freight brokerage cold-starts. All statements other than statements
of historical fact are, or may be deemed to be, forward-looking statements. In
some cases, forward-looking statements can be identified by the use of forward-
looking terms such as "anticipate," "estimate," "believe,"
"continue," "could,"
"intend," "may," "plan," "potential,"
"predict," "should," "will," "expect,"
"objective," "projection," "forecast," "goal,"
"guidance," "outlook," "effort,"
"target" or the negative of these terms or other comparable terms. However, the
absence of these words does not mean that the statements are not forward-
looking. These forward-looking statements are based on certain assumptions and
analyses made by us in light of our experience and our perception of historical
trends, current conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute to a material
difference include, but are not limited to, those discussed in our filings with
the SEC and the following: economic conditions generally; competition; our
ability to find suitable acquisition candidates and execute our acquisition
strategy; our ability to raise capital; our ability to attract and retain key
employees to execute our growth strategy; our ability to develop and implement a
suitable information technology system; our ability to maintain positive
relationships with our network of third-party transportation providers;
litigation; and governmental regulation. All forward-looking statements set
forth in this press release are qualified by these cautionary statements and
there can be no assurance that the actual results or developments anticipated by
us will be realized or, even if substantially realized, that they will have the
expected consequences to or effects on us or our business or
operations. Forward-looking statements set forth in this press release speak
only as of the date hereof and we do not undertake any obligation to update
forward-looking statements, including our 2013 outlook, to reflect subsequent
events or circumstances, changes in expectations or the occurrence of
unanticipated events.
Investor Contact:
XPO Logistics, Inc.
Michelle Muniz, +1-203-930-1459
michelle.muniz@xpologistics.com
Media Contact:
Brunswick Group
Steve Lipin / Gemma Hart, +1-212-333-3810
XPO Logistics, Inc.
Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
------------------------ --------------------------
2012 2011 2012 2011
------------ ----------- ------------ -----------
Revenues
Operating revenue $ 108,503 $ 44,085 $ 278,591 $ 177,076
Expenses
Direct expense 92,840 36,914 237,765 147,298
------------ ----------- ------------ -----------
Gross margin 15,663 7,171 40,826 29,778
Sales general and
administrative expense 26,755 9,560 68,790 28,054
------------ ----------- ------------ -----------
Operating (loss) income (11,092) (2,389) (27,964) 1,724
------------ ----------- ------------ -----------
Other (income) expense 44 (6) 363 56
Interest expense 3,177 46 3,207 191
------------ ----------- ------------ -----------
(Loss) income before income
tax provision (14,313) (2,429) (31,534) 1,477
Income tax provision (4,994) (967) (11,195) 718
------------ ----------- ------------ -----------
Net (loss) income (9,319) (1,462) (20,339) 759
Preferred stock
beneficial conversion
charge 0 0 0 (44,211)
Cumulative preferred
dividends (743) (750) (2,993) (1,125)
------------ ----------- ------------ -----------
Net (loss) income available
to common shareholders $ (10,062) $ (2,212) $ (23,332) $ (44,577)
------------ ----------- ------------ -----------
Basic income per share
Net (loss) income $ (0.57) $ (0.27) $ (1.49) $ (5.41)
Diluted income per share
Net (loss) income $ (0.57) $ (0.27) $ (1.49) $ (5.41)
Weighted average common
shares outstanding
Basic weighted average
common shares outstanding 17,702 8,252 15,694 8,247
Diluted weighted average
common shares outstanding 17,702 8,252 15,694 8,247
Note: All share-related amounts in this press release and the financial tables
reflect the 4-for-1 reverse stock split that was effected on September 2, 2011.
XPO Logistics, Inc.
Consolidated Balance Sheets
(in thousands except share data)
December December
31, 2012 31, 2011
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 252,293 $ 74,007
Accounts receivable, net of allowances of
$603 and $356, respectively 61,245 22,425
Prepaid expenses 1,555 426
Deferred tax asset, current 1,406 955
Income tax receivable 2,569 1,109
Other current assets 1,866 219
----------------- ----------------
Total current assets 320,934 99,141
----------------- ----------------
Property and equipment, net of $5,323 and
$3,937
in accumulated depreciation, respectively 13,090 2,979
Goodwill 55,947 16,959
Identifiable intangible assets, net of
$4,592 and $3,320
in accumulated amortization, respectively 22,473 8,053
Other long-term assets 764 509
----------------- ----------------
Total long-term assets 92,274 28,500
----------------- ----------------
Total assets $ 413,208 $ 127,641
----------------- ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 22,108 $ 8,565
Accrued salaries and wages 3,516 2,234
Accrued expenses, other 21,123 2,789
Current maturities of notes payable and
capital leases 491 1,675
Other current liabilities 1,789 808
----------------- ----------------
Total current liabilities 49,027 16,071
----------------- ----------------
Convertible senior notes 108,280 0
Notes payable and capital leases, net of
current maturities 676 454
Deferred tax liability, long term 6,781 2,346
Other long-term liabilities 3,385 410
----------------- ----------------
Total long-term liabilities 119,122 3,210
----------------- ----------------
Stockholders' equity:
Preferred stock, $.001 par value; 10,000,000
shares;
74,275 shares issued and outstanding 42,794 42,794
Common stock, $.001 par value; 150,000,000
shares authorized;
18,002,985 and 8,410,353
shares issued, respectively; and17,957,985
and 8,365,353 shares
outstanding, respectively 18 8
Additional paid-in capital 262,641 102,613
Treasury stock, at cost, 45,000 shares held (107) (107)
Accumulated deficit (60,287) (36,948)
----------------- ----------------
Total stockholders' equity 245,059 108,360
----------------- ----------------
Total liabilities and stockholders'
equity $ 413,208 $ 127,641
----------------- ----------------
XPO Logistics, Inc.
Consolidated Statement of Cash Flows
(in thousands, except per share amounts)
Year Ended December 31,
2012 2011 2010
------------ ----------- ----------
Operating activities
Net income $ (20,339) $ 759 $ 4,888
Adjustments to reconcile net income to net
cash from operating activities
Provisions for allowance for doubtful
accounts 916 219 (84)
Depreciation & amortization expense 2,713 1,240 1,290
Accretion of debt 1,475 0 0
Stock compensation expense 4,398 1,180 157
Other 2 12 4
Non-cash impairment of incentive payments 0 0 75
Changes in assets and liabilities, net of
effects of acquisitions:
Accounts receivable (13,755) 1,627 (6,618)
Deferred tax expense (8,260) (327) 900
Income tax receivable (1,556) 239 (1,348)
Other current assets 1,593 595 (355)
Prepaid expenses (769) (170) (99)
Other long-term assets and advances (276) 97 338
Accounts payable (2,585) (191) 1,987
Accrued expenses 12,661 1,097 1,780
Other liabilities (518) 234 (658)
------------ ----------- ----------
Cash provided (used) by operating
activities (24,300) 6,611 2,257
------------ ----------- ----------
Investing activities
Acquisition of businesses, net of cash
acquired (57,236) 0 0
Payment of acquisition earn-out (450) (450) (500)
Payment for purchases of property and
equipment (6,981) (754) (811)
Proceeds from sale of assets 0 13 2
------------ ----------- ----------
Cash Flows used by investing activities (64,667) (1,191) (1,309)
------------ ----------- ----------
Financing Activities
Credit line, net activity (2,068) (2,749) (3,781)
Proceeds from issuance of preferred
stock, net of issuance costs 0 71,628 0
Proceeds from issuance of convertible
senior notes, net 138,504 0 0
Proceeds from issuance of long-term debt 0 0 5,000
Payments of notes payable and capital
leases (2,190) (1,633) (2,665)
Excess tax benefit from stock options 0 451 0
Proceeds from stock offering 136,961 0 0
Proceeds from exercise of options, net 248 704 564
Payments of tax withholdings for
restricted shares (1,226) 0 0
Dividends paid to preferred stockholders (3,000) (375) 0
------------ ----------- ----------
Cash flows provided by Financing
Activities 267,229 68,026 (882)
------------ ----------- ----------
Effect of exchange rate changes on cash 24 0 0
Net increase in cash 178,286 73,446 66
Cash, beginning of period 74,007 561 495
------------ ----------- ----------
Cash, end of period of period $ 252,293 $ 74,007 $ 561
------------ ----------- ----------
Supplemental disclosure of noncash
activities:
Cash paid during the period for interest 22 110 124
Cash paid during the period for income
taxes 247 233 3,521
Freight Brokerage
Summary Financial Table
(in thousands)
Three Months Ended December 31,
----------------------------------------------------
$
2012 2011 Variance Change %
----------- ---------- ----------- ---------
Revenue
Operating revenue $ 71,146 $ 8,270 $ 62,876 760.3%
Direct expense
Transportation services 61,379 6,872 54,507 793.2%
Other direct expense 245 9 236 2622.2%
----------- ---------- ----------- ---------
Total direct expense 61,624 6,881 54,743 795.6%
----------- ---------- ----------- ---------
Gross margin 9,522 1,389 8,133 585.5%
----------- ---------- ----------- ---------
SG&A expense
Salaries & benefits 8,778 705 8,073 1145.1%
Purchased services 672 35 637 1820.0%
Other SG&A expense 1,734 141 1,593 1129.8%
Depreciation &
amortization 810 12 798 6650.0%
----------- ---------- ----------- ---------
Total SG&A expense 11,994 893 11,101 1243.1%
----------- ---------- ----------- ---------
Operating (loss) income $ (2,472) $ 496 $ (2,968) -598.4%
----------- ---------- ----------- ---------
Year Ended December 31,
----------------------------------------------------
$
2012 2011 Variance Change %
----------- ---------- ----------- ---------
Revenue
Operating revenue $ 125,121 $ 29,186 $ 95,935 328.7%
Direct expense
Transportation services 108,507 24,434 84,073 344.1%
Other direct expense 489 55 434 789.1%
----------- ---------- ----------- ---------
Total direct expense 108,996 24,489 84,507 345.1%
----------- ---------- ----------- ---------
Gross margin 16,125 4,697 11,428 243.3%
----------- ---------- ----------- ---------
SG&A expense
Salaries & benefits 15,170 2,484 12,686 510.7%
Purchased services 1,694 148 1,546 1044.6%
Other SG&A expense 3,590 716 2,874 401.4%
Depreciation &
amortization 1,223 44 1,179 2679.5%
----------- ---------- ----------- ---------
Total SG&A expense 21,677 3,392 18,285 539.1%
----------- ---------- ----------- ---------
Operating (loss) income $ (5,552) $ 1,305 $ (6,857) -525.4%
----------- ---------- ----------- ---------
Freight Brokerage
Key Employee Data
Three Months Ended
March June Sept Dec
30, 2012 30, 2012 30, 2012 31, 2012
-------------- ------------- ------------- -----------
Number of sales and
procurement
personnel 40 92 290 594
Note: Totals are as of period end, and include the positions of shipper sales,
carrier procurement and logistics coordinators, and reflect the impact of
recruitment and acquisitions.
Expedited Transportation
Summary Financial Table
(in thousands)
Three Months Ended December 31,
---------------------------------------------------
$
2012 2011 Variance Change %
---------- ---------- ----------- ---------
Revenue
Operating revenue $ 22,102 $ 20,337 $ 1,765 8.7%
Direct expense
Transportation services 17,381 15,379 2,002 13.0%
Other direct expense 1,065 713 352 49.4%
---------- ---------- ----------- ---------
Total direct expense 18,446 16,092 2,354 14.6%
---------- ---------- ----------- ---------
Gross margin 3,656 4,245 (589) -13.9%
---------- ---------- ----------- ---------
SG&A expense
Salaries & benefits 1,673 1,645 28 1.7%
Purchased services 308 360 (52) -14.4%
Other SG&A expense 608 323 285 88.2%
Depreciation & amortization 79 86 (7) -8.1%
---------- ---------- ----------- ---------
Total SG&A expense 2,668 2,414 254 10.5%
---------- ---------- ----------- ---------
Operating income $ 988 $ 1,831 $ (843) -46.0%
---------- ---------- ----------- ---------
Year Ended December 31,
---------------------------------------------------
$
2012 2011 Variance Change %
---------- ---------- ----------- ---------
Revenue
Operating revenue $ 94,008 $ 87,558 $ 6,450 7.4%
Direct expense
Transportation services 73,376 66,267 7,109 10.7%
Other direct expense 3,738 2,998 740 24.7%
---------- ---------- ----------- ---------
Total direct expense 77,114 69,265 7,849 11.3%
---------- ---------- ----------- ---------
Gross margin 16,894 18,293 (1,399) -7.6%
---------- ---------- ----------- ---------
SG&A expense
Salaries & benefits 6,613 6,854 (241) -3.5%
Purchased services 1,015 1,426 (411) -28.8%
Other SG&A expense 2,121 1,411 710 50.3%
Depreciation & amortization 320 403 (83) -20.6%
---------- ---------- ----------- ---------
Total SG&A expense 10,069 10,094 (25) -0.2%
---------- ---------- ----------- ---------
Operating income $ 6,825 $ 8,199 $ (1,374) -16.8%
---------- ---------- ----------- ---------
Note: Total depreciation and amortization for the Expedited Transportation
operating segment included in both direct expense and SG&A, was $130,000 and
$131,000 for the three-months ended December 31, 2012 and 2011, respectively,
and $524,000 and $596,000 for the years ended December 31, 2012 and 2011,
respectively, ended December 31, 2012 and 2011.
Freight Forwarding
Summary Financial Table
(in thousands)
Three Months Ended December 31,
---------------------------------------------------
$
2012 2011 Variance Change %
---------- ---------- ----------- ---------
Revenue
Operating revenue $ 18,463 $ 16,769 $ 1,694 10.1%
Direct expense
Transportation services 13,804 12,479 1,325 10.6%
Station commissions 2,120 2,711 (591) -21.8%
Other direct expense 54 42 12 28.6%
---------- ---------- ----------- ---------
Total direct expense 15,978 15,232 746 4.9%
---------- ---------- ----------- ---------
Gross margin 2,485 1,537 948 61.7%
---------- ---------- ----------- ---------
SG&A expense
Salaries & benefits 1,280 774 506 65.4%
Purchased services 203 122 81 66.4%
Other SG&A expense 407 461 (54) -11.7%
Depreciation & amortization 141 145 (4) -2.8%
---------- ---------- ----------- ---------
Total SG&A expense 2,031 1,502 529 35.2%
---------- ---------- ----------- ---------
Operating income $ 454 $ 35 $ 419 1197.1%
---------- ---------- ----------- ---------
Year Ended December 31,
---------------------------------------------------
$
2012 2011 Variance Change %
---------- ---------- ----------- ---------
Revenue
Operating revenue $ 67,692 $ 65,148 $ 2,544 3.9%
Direct expense
Transportation services 50,381 47,122 3,259 6.9%
Station commissions 9,321 11,098 (1,777) -16.0%
Other direct expense 182 140 42 30.0%
---------- ---------- ----------- ---------
Total direct expense 59,884 58,360 1,524 2.6%
---------- ---------- ----------- ---------
Gross margin 7,808 6,788 1,020 15.0%
SG&A expense
Salaries & benefits 4,050 2,897 1,153 39.8%
Purchased services 597 432 165 38.2%
Other SG&A expense 1,479 1,339 140 10.5%
Depreciation & amortization 574 575 (1) -0.2%
---------- ---------- ----------- ---------
Total SG&A expense 6,700 5,243 1,457 27.8%
---------- ---------- ----------- ---------
Operating income $ 1,108 $ 1,545 $ (437) -28.3%
---------- ---------- ----------- ---------
XPO Corporate
Summary of Selling, General & Administrative Expense
(in thousands)
Three Months Ended December 31,
-----------------------------------------------------
$
2012 2011 Variance Change %
---------- --------- ---------- ---------
SG&A expense
Salaries & benefits $ 3,780 $ 3,207 $ 573 17.9%
Purchased services 4,422 1,304 3,118 239.1%
Other SG&A expense 1,691 232 1,459 628.9%
Depreciation &
amortization 168 8 160 2000.0%
---------- --------- ---------- ---------
Total SG&A expense $ 10,061 $ 4,751 $ 5,310 111.8%
---------- --------- ---------- ---------
Year Ended December 31,
-----------------------------------------------------
$
2012 2011 Variance Change %
---------- --------- ---------- ---------
SG&A expense
Salaries & benefits $ 13,445 $ 4,103 $ 9,342 227.7%
Purchased services 12,082 4,727 7,355 155.6%
Other SG&A expense 4,425 471 3,954 839.5%
Depreciation &
amortization 391 24 367 1529.2%
---------- --------- ---------- ---------
Total SG&A expense $ 30,343 $ 9,325 $ 21,018 225.4%
---------- --------- ---------- ---------
Note: Intercompany eliminations included revenue of $3.2 million and $1.3
million for the three-months ended December 31, 2012 and 2011, respectively, as
well as revenue of $8.2 million and $4.8 million for the years ended December
31, 2012 and 2011, respectively.
Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of EBITDA to Net Income
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
Change Change
2012 2011 % 2012 2011 %
------------ ----------- --------- ------------ ------------ ---------
Net (loss)
income
available to
common
shareholders $ (10,062) $ (2,212) 354.9% $ (23,332) $ (44,577) -47.7%
Dividends
and
preferred
shares
conversion
charge (743) (750) -0.9% (2,993) (45,336) -93.4%
------------ ----------- --------- ------------ ------------ ---------
Net (loss)
income (9,319) (1,462) 537.41% (20,339) 759 -2779.7%
------------ ----------- --------- ------------ ------------ ---------
Interest
expense 3,177 46 6806.5% 3,207 191 1579.1%
Income tax
provision (4,994) (967) 416.4% (11,195) 718 -1659.2%
Depreciation
and
amortization 1,198 251 377.3% 2,508 1,046 139.8%
------------ ----------- --------- ------------ ------------ ---------
EBITDA $ (9,938) $ (2,132) 366.1% $ (25,819) $ 2,714 -1051.3%
------------ ----------- --------- ------------ ------------ ---------
Note: Please refer to the "Non-GAAP Financial Measures" section of the press
release.
XPO Logistics, Inc.
Consolidated Calculation of Diluted Weighted Shares Outstanding
Three Months Ended Year Ended Ended
----------------------------- ----------------------------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
-------------- -------------- -------------- -------------
Basic common stock
outstanding 17,701,679 8,252,891 15,694,430 8,246,577
-------------- -------------- -------------- -------------
Potentially Dilutive
Securities:
Shares underlying the
conversion 10,522,399 10,714,286 10,695,326 3,522,505
of preferred stock to
common stock
Shares underlying the
conversion 8,575,577 0 2,238,758 0
of the convertible
senior notes
Shares underlying
warrants to 5,548,022 3,568,707 5,717,284 3,618,061
purchase common stock
Shares underlying
stock options 447,545 402,819 473,421 298,017
to purchase common
stock
Shares underlying
restricted stock
units 237,453 682 249,139 6,456
-------------- -------------- -------------- -------------
25,330,996 14,686,492 19,373,928 7,445,039
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
Diluted weighted
shares outstanding 43,032,674 22,939,383 35,068,358 15,691,616
-------------- -------------- -------------- -------------
Note: For dilution purposes, GAAP requires diluted shares to be reflected on a
weighted average basis, which takes into account the portion of the period in
which the diluted shares were outstanding. The table above reflects the weighted
average diluted shares for the periods presented. The impact of this dilution
was not reflected in the earnings per share calculations on the Consolidated
Statements of Operations because the impact was anti-dilutive. The treasury
method was used to determine the shares underlying the warrants to purchase
common stock with an average closing market price of common stock of $14.52 per
share and $10.50 per share for the three months ended December 31, 2012 and
2011, respectively, and $15.01 per share and $10.57 per share for the years
ended December 31, 2012 and 2011, respectively.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: XPO Logistics, Inc. via Thomson Reuters ONE
[HUG#1681842]
