“Strong performance across all of our business segments generated fourth quarter revenue growth of 24.0% and net revenue growth of 29.5%. Due to sales and operational initiatives, our operating income growth of 33.6% outpaced revenue. Our operating ratio improved 40 basis points to 94.0% compared to 94.4% in the fourth quarter of 2011, despite additional costs incurred related to Hurricane Sandy. The impact of additional shares related to our December common stock offering, lost revenue and additional costs incurred related to Hurricane Sandy, and transaction costs related to the fourth quarter acquisitions of Central Cal Transportation (Central Cal), A&A Express (A&A) and Direct Connection Transportation (DCT) negatively impacted our fourth quarter diluted earnings per share by approximately $0.02.
“Our LTL operating ratio improved to 94.9% in the fourth quarter of 2012 from 95.5% in the fourth quarter of 2011. Our continued initiatives to expand into new geographic regions, build density, improve pricing and enhance productivity, as well as the addition of Expedited Freight Systems (EFS) in August 2012, resulted in a net revenue margin improvement from 24.8% in the fourth quarter of 2011 to 28.1% in the fourth quarter of 2012. We are pleased with the improvement in our operating ratio over last year, despite experiencing load inefficiencies due to Hurricane Sandy and incurring integration costs on a non-recurring basis associated with the consolidation of certain EFS operations.
“Our continued performance initiatives, as well as improvement in our insurance claims experience led to our TL operating ratio improving sequentially to 92.8% in the fourth quarter 2012 from 94.1% in the third quarter of 2012. TL revenues grew by $44.7 million, or 45.3%, from the prior year quarter. Incremental revenues from our 2012 acquisitions accounted for $34.3 million of the increase, with the balance of $10.4 million representing organic growth of 10.5%. The positive impact of the acquisitions and operating leverage associated with our revenue growth led to a 33.9% increase in our TL operating income quarter-over-quarter.