2012 Third Quarter Guidance

In commenting on guidance for the third quarter of 2012, Peter Armbruster, CFO of Roadrunner, said, “We anticipate our revenues for the third quarter to be in the range of $265 million to $280 million, representing an increase of 17% to 24% from the third quarter of 2011. Further, we expect diluted income per share available to common stockholders to be between $0.31 and $0.34, compared to diluted income per share available to common stockholders of $0.23 in the prior year quarter.”

2012 Second 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 6.9% to $129.7 million for the second quarter of 2012 from $121.4 million for the second quarter of 2011. LTL net revenues for the second quarter of 2012 were $33.4 million, or 25.8% of LTL revenues, compared to $29.4 million, or 24.2% of LTL revenues, for the second quarter of 2011. LTL operating income was $10.5 million, or 8.1% of LTL revenues, for the second quarter of 2012 compared to $7.7 million, or 6.3% of LTL revenues, for the second quarter of 2011.

Summary LTL operating statistics for the three and six months ended June 30 are shown below.
               
Three Months Ended June 30, Six Months Ended June 30,
% %
2012 2011 Change 2012 2011 Change
 
Operating ratio 91.9 % 93.7 % 92.4 % 94.4 %
Tonnage (in thousands of tons) 338.2 327.6 3.3 % 654.3 612.4 6.9 %
Shipments (in thousands) 515.6 490.2 5.2 % 1,002.5 922.0 8.7 %
Revenue per hundredweight (incl. fuel) $ 18.91 $ 18.18 4.0 % $ 18.87 $ 17.96 5.1 %
Revenue per hundredweight (excl. fuel) $ 15.44 $ 14.79 4.4 % $ 15.40 $ 14.79 4.1 %
Weight per shipment (lbs.) 1,312 1,337 (1.9 %) 1,305 1,328 (1.7 %)
Linehaul cost per mile (excl. fuel) $ 1.24 $ 1.24 0.0 % $ 1.24 $ 1.23 0.8 %

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.

TL segment revenues increased 61.6% to $111.0 million for the second quarter of 2012 from $68.7 million for the second quarter of 2011. The improvement was primarily due to increases in market pricing and load growth, the expansion of Roadrunner’s TL brokerage agent network, and the acquisitions of Bruenger Trucking, Prime Logistics, D&E Transport and CTW Transport. For the second quarter, Bruenger Trucking, Prime Logistics, D&E Transport and CTW Transport collectively contributed incremental revenues of $36.7 million to the TL segment. Overall, TL net revenues for the second quarter of 2012 were $36.5 million, or 32.9% of TL revenues, compared to $17.6 million, or 25.5% of TL revenues, for the second quarter of 2011. TL operating income was $6.8 million, or 6.1% of TL revenues, for the second quarter of 2012 compared to $4.2 million, or 6.2% of TL revenues, for the second quarter of 2011.

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