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Roadrunner Transportation Systems Reports 2010 First Quarter Results

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  Published in Stocks and Investing on Tuesday, June 15th 2010 at 13:10 GMT by Market Wire
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CUDAHY, WI--(Marketwire - June 15, 2010) - Roadrunner Transportation Systems, Inc. (NYSE: [ RRTS ]), a leading non-asset based transportation and logistics services provider, today reported financial results for the first quarter ended March 31, 2010.

Simultaneous with the consummation of its May 2010 initial public offering ("IPO"), RRTS merged with Group Transportation Services Holdings, Inc. ("GTS"), thereby adding third-party logistics and transportation management solutions to RRTS' suite of services. The following table sets forth summary financial results for the first quarter ended March 31 for both RRTS standalone and combined RRTS and GTS assuming the merger occurred at the beginning of each of the periods presented:

 (In thousands, except per share data) RRTS Standalone Combined RRTS and GTS Three Months Ended March 31, Three Months Ended March 31, --------------------------- --------------------------- % % 2010 2009 Change 2010 2009 Change --------- --------- ----- --------- --------- ----- Total revenues $ 129,414 $ 104,434 23.9% $ 142,762 $ 110,524 29.2% Net revenues (total revenues less purchased transportation costs) 28,466 22,290 27.7% 32,095 23,833 34.7% Depreciation & amortization 684 546 25.3% 851 688 23.7% Other operating expenses 21,157 19,633 7.8% 23,732 21,080 12.6% Acquisition transaction expenses 160 - NM 332 - NM --------- --------- --------- --------- Operating income 6,465 2,111 206.3% 7,180 2,065 247.7% Operating income before acquisition transaction expenses 6,625 2,111 213.8% 7,512 2,065 263.8% Net income (loss) available to common stockholders $ 658 $ (1,014) NM $ 942 $ (1,210) NM ========= ========= ========= ========= Weighted average diluted shares outstanding 15,750 15,110 19,023 17,469 Diluted income (loss) per share available to common stockholders $ 0.04 $ (0.07) $ 0.05 $ (0.07) ========= ========= ========= ========= 

2010 First Quarter Results

First quarter 2010 standalone revenues of $129.4 million increased $25.0 million, or 23.9%, from $104.4 million during the first quarter of 2009. On a combined basis, revenues increased $32.3 million, or 29.2%, from $110.5 million during the first quarter of 2009 to $142.8 million during the first quarter of 2010.

Standalone operating income for the first quarter of 2010 was $6.5 million compared to $2.1 million for the first quarter of 2009. On a combined basis, operating income for the first quarter of 2010 was $7.2 million compared to $2.1 million for the first quarter of 2009. Excluding acquisition transaction expenses of $0.2 million, operating income for the first quarter of 2010 was $6.6 million on a standalone basis. On a combined basis excluding acquisition transaction expenses of $0.3 million, operating income for the first quarter of 2010 was $7.5 million.

Standalone net income available to common stockholders for the first quarter of 2010 was $0.7 million, or $0.04 per diluted share, compared to a net loss for first quarter 2009 of $1.0 million, or $(0.07) per diluted share. Combined net income available to common stockholders for the first quarter of 2010 was $0.9 million, or $0.05 per diluted share, compared to a net loss for first quarter 2009 of $1.2 million, or $(0.07) per diluted share.

On a pro forma combined basis, after giving effect to the sale of 9,000,000 shares in the IPO, net income available to common stockholders for the first quarter of 2010 would have been $4.1 million, or $0.14 per diluted share, based on 30,144,594 weighted average diluted shares outstanding. Net income was adjusted for the elimination of $4.2 million in interest expense (assuming the retirement of $115.0 million of our outstanding debt), the related tax impact of $1.6 million, the elimination of the accretion of the Series B preferred stock of $0.5 million for the quarter, and the conversion of the shares of Series B preferred stock into shares of common stock at the beginning of the quarter.

Mark DiBlasi, President and CEO of RRTS, said, "Our first quarter results slightly exceeded our preliminary estimates, primarily due to revenue increases resulting from positive new business trends and continued market share expansion. We see these trends continuing into the second quarter, resulting in expanded tonnage and improving yield."

2010 First Quarter Combined Segment Information

As a result of the GTS merger, RRTS now has three operating segments: less-than-truckload ("LTL"), truckload brokerage ("TL") and transportation management solutions ("TMS"). Set forth below is selected segment financial information reflecting combined RRTS and GTS operations (excluding intercompany eliminations and corporate expenses):

For the LTL segment, revenues for the first quarter of 2010 were $91.3 million, compared to $70.1 million for the first quarter of 2009. LTL operating income was $5.2 million for first quarter 2010, compared to $1.3 million for first quarter 2009.

For the TL segment, revenues for the first quarter of 2010 were $38.2 million, compared to $34.4 million for the first quarter of 2009. TL operating income was $1.5 million for first quarter 2010, compared to $1.0 million for first quarter 2009.

For the TMS segment, revenues for the first quarter 2010 were $13.7 million, compared to $6.4 million for the first quarter of 2009. TMS operating income was $1.0 million for first quarter 2010, compared to $0.1 million for first quarter 2009.

Conference Call

A conference call is scheduled for Tuesday, June 15, 2010 at 4:30 p.m. Eastern Time. To access the conference call, please dial 877-869-3847 (U.S.) or 201-689-8261 (international) approximately 10 minutes prior to the start of the call. The conference call will also be available via live webcast under the Investor Relations section of RRTS website, [ www.rrts.com ].

If you are unable to listen to the live call, a replay will be available through June 22, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international). Callers will be prompted for replay account number 238# followed by conference ID number 351894#. An archived version of the webcast will also be available under the Investor Relations section of the Company's website, [ www.rrts.com ].

About Roadrunner Transportation Systems, Inc.

RRTS is a leading non-asset based transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload, transportation management solutions and intermodal brokerage, and domestic and international air. For more information, please visit: [ www.rrts.com ].

Safe Harbor Statement

This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, competition in the transportation industry, the impact of the current economic crisis, the company's dependence upon purchased power, the unpredictability of and potential fluctuation in the price and availability of fuel, the effects of governmental and environmental regulations, and other "Risk Factors" set forth in the company's most recent SEC filings.

 ROADRUNNER TRANSPORTATION SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) RRTS Standalone Combined RRTS & GTS -------------------- -------------------- Three Months Ended Three Months Ended March 31, March 31, -------------------- -------------------- 2010 2009 2010 2009 ---------- --------- ---------- --------- Revenues $ 129,414 $ 104,434 $ 142,762 $ 110,524 Operating expenses: Purchased transportation costs 100,948 82,144 110,667 86,691 Personnel and related benefits 12,432 11,906 14,268 12,931 Other operating expenses 8,725 7,727 9,464 8,149 Depreciation and amortization 684 546 851 688 Acquisition transaction expenses 160 - 332 - ---------- --------- ---------- --------- Total operating expenses 122,949 102,323 135,582 108,459 ---------- --------- ---------- --------- Operating income 6,465 2,111 7,180 2,065 Interest expense: Interest on long-term debt 4,385 2,862 4,577 3,012 Adjustment to contingent purchase obligation - - 65 - Dividends on preferred stock subject to mandatory redemption 50 50 50 50 ---------- --------- ---------- --------- Total interest expense 4,435 2,912 4,692 3,062 ---------- --------- ---------- --------- Income (loss) before provision for income taxes 2,030 (801) 2,488 (997) Provision (benefit) for income taxes 857 (232) 1,031 (232) ---------- --------- ---------- --------- Net income (loss) 1,173 (569) 1,457 (765) Accretion of Series B preferred stock 515 445 515 445 ---------- --------- ---------- --------- Net income (loss) available to common stockholders $ 658 $ (1,014) $ 942 $ (1,210) ========== ========= ========== ========= Earnings (loss) per share available to common stockholders: Basic $ 0.04 $ (0.07) $ 0.05 $ (0.07) ========== ========= ========== ========= Diluted $ 0.04 $ (0.07) $ 0.05 $ (0.07) ========== ========= ========== ========= Weighted average common stock outstanding: Basic 15,110 15,110 18,275 17,469 ========== ========= ========== ========= Diluted 15,750 15,110 19,023 17,469 ========== ========= ========== ========= ROADRUNNER TRANSPORTATION SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) RRTS Standalone Combined RRTS & GTS -------------------- -------------------- March December March December 31, 2010 31, 2009 31, 2010 31, 2009 ---------- --------- ---------- --------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,324 $ 667 $ 3,086 $ 2,176 Accounts receivable, net 60,320 53,080 65,397 57,887 Deferred income taxes 1,578 1,578 1,578 1,578 Prepaid expenses and other current assets 8,588 8,440 8,736 8,501 ---------- --------- ---------- --------- Total current assets 71,810 63,765 78,797 70,142 ---------- --------- ---------- --------- PROPERTY AND EQUIPMENT, NET 5,019 5,292 7,197 7,518 OTHER ASSETS: Goodwill 211,183 210,834 246,889 244,671 Other noncurrent assets 9,839 10,944 9,649 10,950 ---------- --------- ---------- --------- Total other assets 221,022 221,778 256,538 255,621 ---------- --------- ---------- --------- TOTAL ASSETS $ 297,851 $ 290,835 $ 342,532 $ 333,281 ========== ========= ========== ========= LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES: Current maturities of long-term debt $ 7,925 $ 7,400 $ 9,520 $ 8,768 Accounts payable 30,802 26,914 35,285 31,184 Accrued expenses and other liabilities 11,159 9,998 13,156 12,152 ---------- --------- ---------- --------- Total current liabilities 49,886 44,312 57,961 52,104 LONG-TERM DEBT, net of current maturities 120,396 120,660 130,491 130,167 OTHER LONG-TERM LIABILITIES 2,373 1,922 5,115 4,627 PREFERRED STOCK SUBJECT TO MANDATORY REDEMPTION 5,000 5,000 5,000 5,000 ---------- --------- ---------- --------- Total liabilities 177,655 171,894 198,567 191,898 ---------- --------- ---------- --------- COMMITMENTS AND CONTINGENCIES REDEEMABLE COMMON STOCK Redeemable common stock 1,740 1,740 1,740 1,740 ---------- --------- ---------- --------- STOCKHOLDERS' INVESTMENT: Series B convertible preferred stock 14,465 13,950 14,465 13,950 Class A common stock 145 145 180 179 Class B common stock 3 3 - - Additional paid-in capital 103,267 103,700 126,414 125,805 Retained earnings (deficit) 576 (597) 1,166 (291) ---------- --------- ---------- --------- Total stockholders' investment 118,456 117,201 142,225 139,643 ---------- --------- ---------- --------- TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' INVESTMENT $ 297,851 $ 290,835 $ 342,532 $ 333,281 ========== ========= ========== =========