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TheStreet Open House

Roadrunner Transportation Systems Reports 2012 Third Quarter Results And Announces Fourth Quarter 2012 Guidance

2012 Fourth Quarter Guidance

In commenting on guidance for the fourth quarter of 2012, Peter Armbruster, CFO of Roadrunner, said, “We anticipate our revenues for the fourth quarter to be in the range of $275 million to $290 million, representing an increase of 16% to 22% from the fourth quarter of 2011. Further, we expect diluted income per share available to common stockholders to be between $0.27 and $0.31, compared to diluted income per share available to common stockholders of $0.22 in the prior year quarter. Our guidance range considers the uncertain economic conditions and the potential effects of the severe weather situation on the East Coast.”

2012 Third Quarter Segment Information

Roadrunner has three operating segments: less-than-truckload (LTL), truckload and logistics (TL) and transportation management solutions (TMS). The following highlights exclude intercompany eliminations and corporate expenses.

LTL revenues, including fuel, increased 4.9% to $132.5 million for the third quarter of 2012 from $126.2 million for the third quarter of 2011. On a per day basis, for the third quarter of 2012, LTL revenues improved 6.6% and LTL tonnage improved 8.3% over the third quarter of 2011. LTL revenue per hundredweight, excluding EFS shipments, was up 4.1% including fuel and 4.3% excluding fuel in the third quarter of 2012. LTL net revenues for the third quarter of 2012 were $36.7 million, or 27.7% of LTL revenues, compared to $29.6 million, or 23.4% of LTL revenues, for the third quarter of 2011. LTL operating income was $10.0 million, or 7.6% of LTL revenues, for the third quarter of 2012 compared to $6.5 million, or 5.2% of LTL revenues, for the third quarter of 2011.

Summary LTL operating statistics for the three and nine months ended September 30 are shown below.

   
Three Months Ended September 30, Nine Months Ended September 30,
      % Change       % Change
2012 2011 % Change Per Day 2012 2011 % Change Per Day
Operating ratio 92.4 94.8 92.4 94.5
Tonnage (in thousands of tons) 359.4 337.2 6.6 % 8.3 % 1,013.7 949.5 6.8 % 7.3 %
Shipments (in thousands) 547.6 512.5 6.8 % 8.5 % 1,550.1

1,434.5

8.1 % 8.6 %
Revenue per hundredweight (incl. fuel) $ 18.26 $ 18.34 (0.4 %) $ 18.65 $ 18.10 3.0 %
Revenue per hundredweight (excl. fuel) $ 14.97 $ 15.01 (0.3 %) $ 15.25 $ 14.87 2.6 %
Weight per shipment (lbs.) 1,313 1,316 (0.2 %) 1,308 1,324 (1.2 %)
Linehaul cost per mile (excl. fuel) $ 1.24 $ 1.25 (0.8 %) $ 1.24 $ 1.24 0.0 %
Operating Days 63 64 191 192
 
Note: Other than operating ratio, the statistics above do not include (i) adjustments for undelivered freight required for financial statement purposes in accordance with Roadrunner's revenue recognition policy; and (ii) non-LTL related business captured within the LTL segment. Operating statistics include EFS beginning as of the date of acquisition, August 10, 2012.
 

TL segment revenues increased 56.6% to $124.2 million for the third quarter of 2012 from $79.3 million for the third quarter of 2011. The improvement was primarily due to increases in market pricing and load growth, increased utilization of Roadrunner's TL brokerage agent network, and the acquisitions of Prime Logistics, D&E Transport, CTW Transport, R&M and Sortino. For the third quarter, Prime Logistics, D&E Transport, CTW Transport, R&M and Sortino collectively contributed incremental revenues of $31.9 million to the TL segment. Overall, TL net revenues for the third quarter of 2012 were $39.6 million, or 31.9% of TL revenues, compared to $25.6 million, or 32.3% of TL revenues, for the third quarter of 2011. TL operating income was $7.3 million, or 5.9% of TL revenues, for the third quarter of 2012 compared to $5.6 million, or 7.1% of TL revenues, for the third quarter of 2011.

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