GREENWICH, Conn. - July 17, 2017
- XPO Logistics, Inc. (NYSE: XPO) today announced the following
preliminary expected financial results for the second quarter ended
June 30, 2017.
Based on the information available as of July 17,
2017, we currently estimate that our financial results as of and
for the three months ended June 30, 2017, will include:
-
Total revenue of $3.755 billion to $3.765
billion
-
Operating income of $183 million to $187
million
-
Organic revenue growth as compared to same
period in 2016 of 7.0% to 7.9%
-
Cash flows from operating activities of $205
million to $215 million
-
Payments for purchases of property and equipment
less proceeds from sale of assets of approximately $120
million
In addition, we estimate that we incurred
depreciation and amortization expense of approximately $165
million, and we estimate that we incurred expenses related to
transaction, integration and rebranding costs of approximately $20
million.
This information set forth above is preliminary
and unaudited and reflects our estimated financial results as of
and for the three months ended June 30, 2017. In preparing
this information, management made a number of complex and
subjective judgments and estimates about the appropriateness of
certain reported amounts and disclosures. Our actual financial
results for the second quarter of 2017 have not yet been finalized
by management. These results are not a comprehensive
statement of all financial results as of and for the three months
ended June 30, 2017. We are required to consider all available
information through the finalization of our financial statements
and their possible impact on our financial condition and results of
operations for the period, including the impact of such information
on the complex judgments and estimates referred to above. As a
result, subsequent information or events may lead to material
differences between the information about the results of operations
described herein and the results of operations described in our
subsequent quarterly report. Accordingly, you should not place
undue reliance on these preliminary financial results.
Total organic revenue is a non-GAAP financial
measure as defined under the rules of the Securities and Exchange
Commission ("SEC"). We believe that use of certain non-GAAP
financial measures facilitates analysis of our ongoing business
operations because they exclude items that may not be reflective
of, or are unrelated to, XPO and its business segments' core
operating performance, and may assist investors with comparisons to
prior periods and assessing trends in our underlying businesses.
These adjustments are consistent with how management views our
businesses. Management uses non-GAAP financial measures
in making financial, operating and planning decisions and
evaluating XPO's and each business segment's ongoing
performance. Accordingly, we believe that total organic
revenue is an important measure because it excludes the impact of
the following items: foreign currency exchange rate fluctuations,
acquisitions and divestitures, and fuel surcharges.
Specifically, our total organic revenue reflects adjustments to (i)
exclude revenue from Con-way Truckload, which was sold in October
2016, (ii) exclude the estimated revenue attributable to fuel, and
(iii) apply a constant foreign exchange rate to both periods (based
on average rates during the monthly periods). As required by
SEC rules, set forth below is a reconciliation of organic revenue
to the most directly comparable measure under GAAP:
About XPO Logistics
XPO Logistics, Inc. (NYSE: XPO) is a top ten
global logistics provider of cutting-edge supply chain solutions to
the most successful companies in the world. The company operates as
a highly integrated network of people, technology and physical
assets in 34 countries, with over 89,000 employees and 1,431
locations. XPO uses its network to help more than 50,000 customers
manage their goods more efficiently throughout their supply chains.
The company has two reporting segments: transportation and
logistics, and within these segments, its business is well
diversified by geographies, verticals and types of service. XPO's
corporate headquarters is in Greenwich, Conn., USA, and its
European headquarters is in Lyon, France. www.xpo.com
Forward-looking
Statements
This press release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including our expected
financial results for total revenue, operating income, organic
revenue, cash flows from operating activities, payments for
purchases of property and equipment less proceeds from sale of
assets, depreciation and amortization expense and transaction,
integration and rebranding costs. All statements other than
statements of historical fact are, or may be deemed to be,
forward-looking statements. In some cases, forward-looking
statements can be identified by the use of forward-looking terms
such as "anticipate," "estimate," "believe," "continue," "could,"
"intend," "may," "plan," "potential," "predict," "should," "will,"
"expect," "objective," "projection," "forecast," "goal,"
"guidance," "outlook," "effort," "target," "trajectory" or the
negative of these terms or other comparable terms. However, the
absence of these words does not mean that the statements are not
forward-looking. These forward-looking statements are based on
certain assumptions and analyses made by us in light of our
experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances.
These forward-looking statements
are subject to known and unknown risks, uncertainties and
assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Factors
that might cause or contribute to a material difference include the
risks discussed in our filings with the United States Securities
and Exchange Commission and the following: economic conditions
generally; competition and pricing pressures; our ability to align
our investments in capital assets, including equipment, service
centers and warehouses, to our customers' demands; our ability to
successfully integrate and realize anticipated synergies, cost
savings and profit improvement opportunities with respect to
acquired companies; our ability to develop and implement suitable
information technology systems; our substantial indebtedness; our
ability to raise debt and equity capital; our ability to maintain
positive relationships with our network of third-party
transportation providers; our ability to attract and retain
qualified drivers; litigation, including litigation related to
alleged misclassification of independent contractors; labor
matters, including our ability to manage our subcontractors, and
risks associated with labor disputes at our customers and efforts
by labor organizations to organize our employees; risks associated
with our self-insured claims; risks associated with defined benefit
plans for our current and former employees; fluctuations in
currency exchange rates; fluctuations in fixed and floating
interest rates; our ability to execute our growth strategy through
acquisitions; fuel price and fuel surcharge changes; issues related
to our intellectual property rights; governmental regulation,
including trade compliance laws; and governmental or political
actions, including the United Kingdom's likely exit from the
European Union. All forward-looking statements set forth in this
press release are qualified by these cautionary statements and
there can be no assurance that the actual results or developments
anticipated by us will be realized or, even if substantially
realized, that they will have the expected consequences to or
effects on us or our business or operations. Forward-looking
statements set forth in this press release speak only as of the
date hereof, and we do not undertake any obligation to update
forward-looking statements to reflect subsequent events or
circumstances, changes in expectations or the occurrence of
unanticipated events, except to the extent required by law.
Investor Contact:
XPO Logistics, Inc.
Tavio Headley, +1-203-930-1602
tavio.headley@xpo.com
Media Contact:
XPO
Logistics, Inc.
Erin Kurtz, +1-203-489-1586
erin.kurtz@xpo.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: XPO Logistics, Inc. via Globenewswire
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