CHICAGO, April 28, 2021 /PRNewswire/ -- Echo Global
Logistics, Inc. (NASDAQ: ECHO), a leading provider of
technology-enabled transportation management services, today
reported financial results for the quarter ended March 31,
2021.
"Echo's first quarter results represent record quarterly
financial performance across the board," said Doug Waggoner, Chairman of the Board of
Directors and Chief Executive Officer at Echo. "I am excited and
encouraged by our continued progress and execution, as it
demonstrates the value we bring to our carriers and clients,
particularly through periods of supply constraints and supply chain
disruptions. We continue to deliver high levels of service,
combining skilled people and innovative technology and data
science, which is driving growth in our truckload and managed
transportation businesses, leading to very strong financial
results."
First Quarter 2021 Highlights
- Revenue increased 45.3% to $800.8
million from the first quarter of 2020
- Gross profit increased 36.3% to $116.2
million from the first quarter of 2020
- Adjusted gross profit(1) increased 33.5% to
$120.0 million from the first quarter
of 2020
- Truckload ("TL") revenue increased 56.6% to $575.9 million from the first quarter of 2020,
and TL volume increased 12.6% from the first quarter of 2020
- Less than truckload ("LTL") revenue increased 20.6% to
$190.4 million from the first quarter
of 2020, and LTL volume increased 9.7% from the first quarter of
2020
- Transactional revenue increased 44.0% to $617.0 million and Managed Transportation revenue
increased 49.9% to $183.8 million
from the first quarter of 2020
- Net income increased to $10.2
million, compared to net loss of $2.9
million in the first quarter of 2020
- Fully diluted EPS increased to $0.38 in the first quarter of 2021; non-GAAP
fully diluted EPS(1) increased to $0.61 in the first quarter of 2021
- Adjusted EBITDA(1) increased 90.1% to $28.3 million, compared to $14.9 million in the first quarter of 2020
|
(1) Represents a
non-GAAP financial measure. For the definition and a discussion of
each non-GAAP financial measure contained in this release, see
"Non-GAAP Financial Measures." For a reconciliation of each
non-GAAP financial measure to the nearest comparable GAAP financial
measure, see the "Reconciliation of Non-GAAP Financial Measures"
section of this release.
|
2021 Second Quarter and Full Year Guidance
Pete Rogers, Chief Financial
Officer at Echo, concluded, "We remain very encouraged by our
continued ability to win new business and grow our market share by
demonstrating value to both our shippers and carriers. Given
our strong start to the first quarter and solid market
fundamentals, we are expecting revenue for the second quarter to be
between $830M - $870M, representing 65% year-over-year growth at
the mid-point. In addition, we are raising our full year
revenue guidance to be between $3.15B
– $3.35B, representing 29% year over
year growth and a 15% increase from our original expectations."
Conference Call
A conference call, with accompanying presentation slides, will
be broadcast live on April 28, 2021 at 4:00 p.m.
Central Time (5:00 p.m. Eastern
Time). Doug Waggoner, Chairman of the Board of
Directors and Chief Executive Officer; Dave Menzel, President
and Chief Operating Officer; and Pete Rogers, Chief Financial
Officer, will host the call. To participate in the call,
dial 877-303-6235 (toll free)
or 631-291-4837 (toll) and reference "Echo Global
Logistics." To listen to a live webcast of the call, visit the Echo
website at http://ir.echo.com. A replay of the webcast will be
available for one year following the live webcast in the Investor
Relations section of the Echo website. To listen to an audio
replay, call 855-859-2056 (toll free) or 404-537-3406 (toll) and
enter conference ID 3264937. The audio replay will be available
through May 5, 2021.
Non-GAAP Financial Measures
This release includes the following financial measures defined
as "Non-GAAP financial measures" by the Securities and
Exchange Commission (the "SEC"): Adjusted gross profit,
adjusted gross profit margin, EBITDA, Adjusted EBITDA and Non-GAAP
fully diluted EPS. Adjusted gross profit is calculated as revenue
less transportation costs (excludes internal use software
depreciation). Adjusted gross profit margin is calculated as
adjusted gross profit (as previously defined) divided by revenue.
EBITDA is defined as net income excluding the effects of
depreciation, amortization, cash and non-cash interest expense and
income taxes. Adjusted EBITDA is defined as EBITDA (as previously
defined) excluding the changes in contingent consideration and
stock compensation expense. Non-GAAP fully diluted EPS is defined
as fully diluted EPS excluding changes in contingent consideration,
amortization, non-cash interest expense, stock compensation expense
and the tax effect of these adjustments. We believe such measures
provide useful information to investors because they provide
information about the financial performance of the Company's
ongoing business.
Adjusted gross profit, adjusted gross profit margin, EBITDA,
Adjusted EBITDA and Non-GAAP fully diluted EPS are used by
management in its financial and operational decision-making and
evaluation of overall operating performance. These measures may be
different from similar measures used by other companies. The
presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
generally accepted accounting principles. For a reconciliation of
each non-GAAP financial measure to the nearest comparable GAAP
financial measure, see "Reconciliation of Non-GAAP Financial
Measures" included in this release.
Forward-Looking Statements
All statements made in this release, other than statements of
historical fact, are or may be deemed to be forward-looking
statements. These statements are forward-looking statements under
the federal securities laws. We can give no assurance that any
future results discussed in these statements will be achieved.
These statements are based on current plans and expectations of
Echo Global Logistics and involve risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be different from any future results, performance
or achievements expressed or implied by these statements.
Information concerning these risks, uncertainties and other factors
is contained under the headings "Risk Factors" and "Forward-Looking
Statements" and elsewhere in our Annual Report on Form 10-K for the
year ended December 31, 2020, and
other filings with the SEC.
About Echo Global Logistics
Echo Global Logistics, Inc. (NASDAQ: ECHO) is a leading
Fortune 1000 provider of technology-enabled transportation and
supply chain management services. Headquartered in Chicago with more than 30 offices around the
country, Echo offers freight brokerage and Managed Transportation
solutions for all major modes, including truckload, partial
truckload, LTL, intermodal, and expedited. Echo maintains a
proprietary, web-based technology platform that compiles and
analyzes data from its network of over 50,000 transportation
providers to serve 35,000 clients across a wide range of industries
and simplify the critical tasks involved in transportation
management. For more information on Echo Global Logistics,
visit: www.echo.com.
ECHO: Earnings
INVESTOR RELATIONS CONTACTS:
Pete Rogers
Chief Financial Officer
Echo Global Logistics
312-676-4584
Zach Jecklin
SVP of Strategy
Echo Global Logistics
312-784-2046
MEDIA CONTACT:
Christopher Clemmensen
SVP of Marketing
Echo Global Logistics
312-784-2132
Summarized financial results and select operating metrics are as
follows:
|
|
Three Months Ended
March 31,
|
|
|
Dollars in
millions, except per share data
|
|
2021
|
|
2020
|
|
%
change
|
|
|
(unaudited)
|
|
|
Transactional
revenue
|
|
$
|
617.0
|
|
|
$
|
428.4
|
|
|
44.0
|
%
|
Managed
Transportation revenue
|
|
183.8
|
|
|
122.7
|
|
|
49.9
|
%
|
Revenue
|
|
800.8
|
|
|
551.0
|
|
|
45.3
|
%
|
|
|
|
|
|
|
|
Transportation
costs
(excludes internal
use software deprecation)(1)
|
|
680.8
|
|
|
461.1
|
|
|
47.6
|
%
|
|
|
|
|
|
|
|
Commission
expense
|
|
36.3
|
|
|
27.2
|
|
|
33.2
|
%
|
Change in contingent
consideration
|
|
0.1
|
|
|
0.0
|
|
|
274.5
|
%
|
Stock compensation
expense
|
|
5.0
|
|
|
4.6
|
|
|
9.5
|
%
|
Other selling,
general and administrative
|
|
55.4
|
|
|
47.8
|
|
|
16.1
|
%
|
Selling, general
and administrative expenses
|
|
96.9
|
|
|
79.7
|
|
|
21.6
|
%
|
|
|
|
|
|
|
|
Depreciation
|
|
6.1
|
|
|
7.0
|
|
|
(13.1)
|
%
|
Amortization
|
|
2.6
|
|
|
2.8
|
|
|
(6.8)
|
%
|
Depreciation and
amortization
|
|
8.7
|
|
|
9.8
|
|
|
(11.3)
|
%
|
|
|
|
|
|
|
|
Income from
operations
|
|
14.5
|
|
|
0.5
|
|
|
3,040.6
|
%
|
|
|
|
|
|
|
|
Cash interest
expense
|
|
0.7
|
|
|
1.3
|
|
|
(44.7)
|
%
|
Non-cash interest
expense
|
|
—
|
|
|
1.5
|
|
|
(100.0)
|
%
|
Interest
expense
|
|
0.7
|
|
|
2.8
|
|
|
(74.3)
|
%
|
Income (Loss)
before provision for income taxes
|
|
13.7
|
|
|
(2.3)
|
|
|
690.4
|
%
|
Income tax
expense
|
|
(3.5)
|
|
|
(0.6)
|
|
|
486.0
|
%
|
Net income
(loss)
|
|
$
|
10.2
|
|
|
$
|
(2.9)
|
|
|
447.7
|
%
|
|
|
|
|
|
|
|
Fully diluted
earnings (loss) per share
|
|
$
|
0.38
|
|
|
$
|
(0.11)
|
|
|
439.4
|
%
|
Diluted
shares
|
|
26.6
|
|
|
26.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not
foot due to rounding.
|
(1) Transportation costs excludes internal use
software depreciation of $3.9 million and $4.7 million for three
months
ended March 31, 2021 and 2020, respectively. Internal use
software depreciation is included in depreciation
expense.
|
Reconciliation of
Non-GAAP Financial Measures
|
|
Three Months Ended
March 31,
|
|
|
|
Dollars in
millions, except per share data
|
|
2021
|
|
2020
|
|
%
change
|
|
|
|
(unaudited)
|
|
|
|
Revenue
|
|
$
|
800.8
|
|
|
$
|
551.0
|
|
|
45.3
|
%
|
|
Transportation
costs
|
|
680.8
|
|
|
461.1
|
|
|
47.6
|
%
|
|
Internal use software
depreciation
|
|
3.9
|
|
|
4.7
|
|
|
(18.3)
|
%
|
|
Gross
profit
|
|
$
|
116.2
|
|
|
$
|
85.2
|
|
|
36.3
|
%
|
|
Add: Internal use software
depreciation
|
|
3.9
|
|
|
4.7
|
|
|
(18.3)
|
%
|
|
Adjusted gross
profit(1)
|
|
$
|
120.0
|
|
|
$
|
89.9
|
|
|
33.5
|
%
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
10.2
|
|
|
$
|
(2.9)
|
|
|
447.7
|
%
|
|
Depreciation
|
|
6.1
|
|
|
7.0
|
|
|
(13.1)
|
%
|
|
Amortization
|
|
2.6
|
|
|
2.8
|
|
|
(6.8)
|
%
|
|
Non-cash interest
expense
|
|
—
|
|
|
1.5
|
|
|
(100.0)
|
%
|
|
Cash interest
expense
|
|
0.7
|
|
|
1.3
|
|
|
(44.7)
|
%
|
|
Income tax
expense
|
|
3.5
|
|
|
0.6
|
|
|
486.0
|
%
|
|
EBITDA(1)
|
|
$
|
23.1
|
|
|
$
|
10.3
|
|
|
125.8
|
%
|
|
Change in contingent
consideration
|
|
0.1
|
|
|
0.0
|
|
|
274.5
|
%
|
|
Stock compensation
expense
|
|
5.0
|
|
|
4.6
|
|
|
9.5
|
%
|
|
Adjusted
EBITDA(1)
|
|
$
|
28.3
|
|
|
$
|
14.9
|
|
|
90.1
|
%
|
|
|
|
|
|
|
|
|
|
Fully diluted
earnings (loss) per share
|
|
$
|
0.38
|
|
|
$
|
(0.11)
|
|
|
439.4
|
%
|
|
Change in contingent
consideration
|
|
0.00
|
|
|
0.00
|
|
|
265.6
|
%
|
|
Amortization
|
|
0.10
|
|
|
0.11
|
|
|
(9.0)
|
%
|
|
Non-cash interest
expense
|
|
—
|
|
|
0.06
|
|
|
(100.0)
|
%
|
|
Stock compensation
expense
|
|
0.19
|
|
|
0.18
|
|
|
6.9
|
%
|
|
Tax effect of
adjustments
|
|
(0.07)
|
|
|
(0.04)
|
|
|
71.0
|
%
|
|
Non-GAAP fully
diluted EPS(1)
|
|
$
|
0.61
|
|
|
$
|
0.19
|
|
|
217.2
|
%
|
|
|
|
|
|
|
|
|
|
Operating
Metrics
|
|
|
|
|
|
|
|
Adjusted gross profit
margin(1)
|
|
15.0
|
%
|
|
16.3
|
%
|
|
(133)
|
|
bps
|
Total
employees
|
|
2,617
|
|
|
2,527
|
|
|
3.6
|
%
|
|
Sales employees and
agents
|
|
1,675
|
|
|
1,646
|
|
|
1.8
|
%
|
|
TL revenue
%
|
|
71.9
|
%
|
|
66.7
|
%
|
|
518
|
|
bps
|
LTL revenue
%
|
|
23.8
|
%
|
|
28.7
|
%
|
|
(488)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not
foot due to rounding.
|
(1) See the "Non-GAAP Financial Measures" section of
this release for the definition and a discussion of each
Non-GAAP financial measure.
|
Echo Global
Logistics, Inc.
Condensed
Consolidated Statements of Operations
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
In thousands,
except per share data
|
(unaudited)
|
Revenue
|
$
|
800,802
|
|
|
$
|
551,049
|
|
Costs and
expenses:
|
|
|
|
Transportation
costs (excludes internal use
software depreciation)(1)
|
680,773
|
|
|
461,142
|
|
Selling, general and
administrative expenses
|
96,881
|
|
|
79,654
|
|
Depreciation and
amortization
|
8,689
|
|
|
9,792
|
|
Income from
operations
|
14,459
|
|
|
460
|
|
Interest
expense
|
(717)
|
|
|
(2,788)
|
|
Income (Loss) before
provision for income taxes
|
13,742
|
|
|
(2,328)
|
|
Income tax
expense
|
(3,546)
|
|
|
(605)
|
|
Net income
(loss)
|
$
|
10,196
|
|
|
$
|
(2,933)
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
0.39
|
|
|
$
|
(0.11)
|
|
Diluted earnings
(loss) per share
|
$
|
0.38
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not
foot due to rounding.
|
(1) Transportation costs excludes internal use
software depreciation of $3.9 million and $4.7 million for three
months ended March 31, 2021 and 2020, respectively. Internal
use software depreciation is included in depreciation
expense.
|
|
|
|
Echo Global
Logistics, Inc.
Condensed
Consolidated Balance Sheets
|
|
|
March 31,
2021
|
|
December 31,
2020
|
In
thousands
|
(unaudited)
|
|
|
Cash and cash
equivalents
|
$
|
57,432
|
|
|
$
|
41,297
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
500,264
|
|
|
439,391
|
|
Other current
assets
|
12,408
|
|
|
12,787
|
|
Total noncurrent
assets
|
467,569
|
|
|
470,469
|
|
Total
assets
|
$
|
1,037,673
|
|
|
$
|
963,944
|
|
|
|
|
|
Accounts
payable
|
$
|
380,589
|
|
|
$
|
317,692
|
|
Other current
liabilities
|
58,565
|
|
|
59,443
|
|
Long-term debt,
net
|
134,058
|
|
|
133,945
|
|
Other noncurrent
liabilities
|
52,760
|
|
|
53,494
|
|
Stockholders'
equity
|
411,701
|
|
|
399,369
|
|
Total liabilities and
stockholders' equity
|
$
|
1,037,673
|
|
|
$
|
963,944
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
Echo Global
Logistics, Inc.
Condensed
Consolidated Statements of Cash Flows
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
In
thousands
|
(unaudited)
|
Net cash provided by
operating activities
|
$
|
27,235
|
|
|
$
|
9,668
|
|
Net cash used in
investing activities
|
(8,190)
|
|
|
(5,101)
|
|
Net cash used in
financing activities
|
(2,910)
|
|
|
(470)
|
|
Increase in cash and
cash equivalents
|
16,135
|
|
|
4,097
|
|
Cash and cash
equivalents, beginning of period
|
41,297
|
|
|
34,626
|
|
Cash and cash
equivalents, end of period
|
$
|
57,432
|
|
|
$
|
38,722
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
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SOURCE Echo Global Logistics, Inc.