Daseke, Inc. (NASDAQ: DSKE) (“Daseke” or the “Company”), the
largest flatbed, specialized transportation and logistics solutions
company in North America, today reported financial results for the
fourth quarter and full year ended December 31, 2020.
Fourth Quarter Highlights:
- Revenue of $335.6 million
- Net Income of $7.3 million, or $0.09 earnings per common share
(“EPS”)
- Adjusted Net Income of $9.2 million, after excluding Aveda
Transportation and Energy Services (“Aveda”) which was divested
during the year, up 74% year-over-year
- Adjusted EPS excluding Aveda of $0.12, up 100%
year-over-year
- Adjusted EBITDA of $39.4 million excluding Aveda, up 6%
year-over-year
- Cash flows from operating activities of $14.9 million and Free
Cash Flow of $12.5 million
Full year 2020 Highlights:
- Revenue of $1.5 billion, or $1.4 billion excluding Aveda
- Net Income of $6.2 million, or $0.02 per share attributable to
common stockholders
- Adjusted Net Income excluding Aveda of $39.6 million, up over
321% year-over-year
- Adjusted diluted EPS excluding Aveda of $0.52, up 643%
year-over-year
- Adjusted EBITDA of $178.7 million excluding Aveda, up 15%
year-over-year
- Cash flows from operating activities of $137.3 million and Free
Cash Flow of $168.9 million
- Operating Ratio and Adjusted Operating Ratio excluding Aveda of
97.6% and 93.6%, respectively
- Cash and cash equivalents increased by $80.5 million
year-over-year to $176.2 million
Management Commentary
“2020 was a highly successful and
transformational year for Daseke,” said Jonathan Shepko, Interim
Chief Executive Officer of Daseke. “We streamlined the business,
built a high performing executive team and supporting organization,
and demonstrated the resilience and diversity of our business by
delivering strong profitability and free cash flow despite the
challenging economic backdrop. We also executed and completed two
operational integrations and business improvement plans, which
contributed meaningfully to our operational and financial
performance in 2020. This not only supported the organization
through the pandemic shock in the first half of 2020 but has also
positioned Daseke for profitable growth as we look to the
future.”
Shepko continued, “As we enter 2021, we remain
focused on leveraging the improved platform that we have built.
This includes execution against the operational and tactical
initiatives driven by our newly formed leadership team, which have
become a core part of our culture. We will also look to leverage
new leaders in areas like finance, human resources, IT, safety and
risk management, all of whom will be looking to implement best
practices and drive further efficiencies across the business.
Lastly, we will remain focused on refining the Daseke vision, with
a clear focus on supporting long-term sustainable growth. We look
forward to building on the strong foundation that was established
in 2020.”
Fourth Quarter 2020 Financial
Results
Total revenue in the fourth quarter of 2020
decreased 17% to $335.6 million, compared to $403.0 million in the
year-ago quarter. Excluding Aveda, fourth quarter revenue decreased
by 7%. These year-over-year decreases in revenue were driven by the
timing of the completion of certain renewable and wind-related
projects, and the economic impact of the COVID-19 pandemic, which
led to lower freight volumes in both the flatbed and specialized
segments.
Operating income in the fourth quarter of 2020
was $3.1 million, compared to operating loss of $0.9 million in the
year-ago quarter. This year-over-year improvement in operating
income was primarily a result of cost reductions through
operational integrations and business improvement plans executed
over the trailing year, as well as decreases in purchased freight,
salaries, wages and employee benefits. Excluding Aveda, operating
income in the fourth quarter of 2020 was $1.7 million compared to
an operating income of $2.2 million in the prior-year quarter. This
year-over-year decline was driven by an increase in insurance and
claims, which was partially offset by cost reductions through
operational integrations and business improvement plans executed
over the trailing year, as well as decreases in salaries, wages and
employee benefits.
Net income for the fourth quarter of 2020 was
$7.3 million, or $0.09 EPS, compared to net loss of $18.4 million,
or $0.31 loss per common share, in the year-ago quarter. Adjusted
Net Income excluding Aveda in the fourth quarter of 2020 was $9.2
million, or $0.12 EPS, compared to Adjusted Net Income excluding
Aveda of $5.3 million, or $0.06 EPS, in the fourth quarter of 2019.
Adjusted EBITDA excluding Aveda in the fourth quarter of 2020 was
$39.4 million compared to $37.2 million in the year-ago quarter.
The year-over-year improvements in Net Income, Adjusted Net Income
and Adjusted EBITDA excluding Aveda were driven primarily by cost
reductions through operational integrations and business
improvement plans and the improvement in freight rates, partially
offset by lower freight volumes and increased insurance costs.
Full Year 2020 Financial
Results
Total revenue in 2020 decreased 16% to $1.45
billion, compared to $1.74 billion in 2019. Excluding Aveda, total
revenue in 2020 decreased by 8%. This year-over-year reduction in
revenue was driven primarily by the decrease in freight volumes due
to the impact of the COVID-19 pandemic on various industrial end
markets, and the strategic reduction of business related to the
consolidations.
Operating income in 2020 was $35.4 million,
compared to operating loss of $312.1 million in 2019. Operating
ratio was 97.6% in 2020 compared to 118.0% in 2019. Adjusted
operating ratio excluding Aveda was 93.6% in 2020 compared to 96.4%
in 2019. These year-over-year improvements were primarily due to
the contributions from the Company’s operational integrations and
business improvement plans and increased profitability from
revenues in specific market verticals.
Net income for 2020 was $6.2 million, or $0.02
EPS, compared to net loss of $307.4 million, or $(4.86) loss per
common share, in 2019. Adjusted Net Income excluding Aveda was
$39.6 million, or $0.52 diluted EPS, compared to Adjusted Net
Income excluding Aveda of $9.4 million, or $0.07 diluted EPS, in
2019. Adjusted EBITDA excluding Aveda in 2020 was $178.7 million
compared to $155.6 million in 2019. The year-over-year increases
were driven by contributions from operational integrations and
business improvement plans, and by strong wind energy and high
security cargo revenues and margins. This was partially offset by
softness in freight rates, weaker freight volumes due to the impact
of the COVID-19 pandemic on various industrial end markets,
combined with the fleet downsizing efforts in the flatbed
segment.
Segment Results
Specialized Solutions - Specialized Solutions
revenue in the fourth quarter of 2020 was $196.5 million, a
decrease of 24% compared to $257.4 million in the year-ago quarter.
Operating income in the fourth quarter of 2020 was $14.2 million,
compared to operating income of $10.1 million in the year-ago
quarter. Operating Ratio improved by 330 basis points to 92.8%,
compared to 96.1% in the year-ago quarter. Adjusted Operating Ratio
of 92.8% improved 160 basis points compared to 94.4% in the
year-ago quarter. Net income in the fourth quarter of 2020 improved
to $10.5 million from a net loss of $25.3 million in the same
period in 2019, primarily due to the arbitrated decrease in
contingent consideration and reduction in corporate expense
allocation. Adjusted EBITDA in the fourth quarter of 2020 decreased
4% to $30.0 million compared to $31.4 million in the year-ago
quarter, driven primarily by the allocation of increased insurance
costs to the segment, partially offset by contributions from
operational integrations and improvement plans. Rate per mile in
the fourth quarter of 2020 was $2.96, down compared to $3.43 last
year, and revenue per tractor was $59,100, versus $59,800 a year
ago.
Specialized Solutions revenue excluding Aveda in
the fourth quarter of 2020 was $196.5 million, a decrease of 9%
compared to $215.3 million in the year-ago quarter. Operating
income excluding Aveda in the fourth quarter of 2020 was $12.8
million, compared to $13.2 million in the year-ago quarter.
Adjusted Operating Ratio excluding Aveda of 92.8% increased 90
basis points compared to 91.9% in the year-ago quarter. Adjusted
EBITDA excluding Aveda in the fourth quarter of 2020 decreased 3%
to $29.9 million compared to $30.7 million in the year-ago quarter,
driven primarily by the allocation of increased insurance costs to
the segment, partially offset by contributions from operational
integrations and improvement plans. Excluding Aveda,
Specialized rate per mile was flat at $2.96, and revenue per
tractor increased 4.4% to $59,100.
In 2020, Specialized Solutions revenue decreased
18% to $893.7 million compared to $1,095.7 million in 2019.
Operating income in 2020 was $53.3 million, compared to operating
loss of $158.7 million in 2019. Net income in 2020 improved to
$26.9 million from a net loss of $177.4 million in 2019, primarily
due to $196.1 million of impairments in 2019 compared to only $13.4
million of impairments in 2020. Adjusted EBITDA in 2020 decreased
3% to $134.6 million compared to $138.8 million in 2019, driven by
lower freight rates after exiting the Aveda business, lower
brokerage revenues, and higher insurance costs allocated to the
operating segments beginning in 2020. These were partially offset
by contributions from the operational integrations and business
improvement plans, and reduced salary compensation.
In 2020, Specialized Solutions revenue excluding
Aveda decreased 5% to $842.0 million compared to $889.4 million in
2019. Operating income excluding Aveda in 2020 was $79.3 million,
compared to operating loss excluding Aveda of $112.8 million in
2019. Adjusted EBITDA excluding Aveda in 2020 increased 11% to
$137.5 million compared to $123.5 million in 2019.
Flatbed Solutions - Flatbed Solutions revenue in
the fourth quarter of 2020 decreased 5% to $142.1 million, compared
to $150.3 million in the year-ago quarter. Operating income in the
fourth quarter of 2020 was $4.0 million, compared to operating
income of $4.1 million in the year-ago quarter. Operating ratio
improved by 10 basis points to 97.2%, compared to 97.3% in the
year-ago quarter. Adjusted Operating Ratio of 94.9% increased by
120 basis points compared to 93.7% in the year-ago period. Net loss
in the fourth quarter of 2020 improved to $11.0 million versus
$12.6 million in the same period in 2019. Adjusted EBITDA in the
fourth quarter of 2020 decreased 4% to $17.1 million, compared to
$17.8 million in the year-ago quarter. These decreases were driven
by a decrease in freight volumes due to the impact of the COVID-19
pandemic on various industrial end markets and fleet downsizing
efforts, and increased insurance costs allocated to the operating
segments in 2020. These were partially offset by improved freight
rates. Rate per mile in the fourth quarter of 2020 of $2.03 was up
9% from the prior-year quarter, and revenue per tractor increased
12% to $43,000.
In 2020, Flatbed Solutions revenue of $578.9
million was down 13% compared to 2019. Operating income in 2020 was
$32.6 million, compared to an operating loss of $94.4 million in
2019. Net income in 2020 improved to $3.9 million compared to a net
loss of $106.1 million, primarily due to large impairments taken in
2019, and improved profitability through the operational
integrations and business improvement plans executed in the year.
Adjusted EBITDA in 2020 decreased 3% to $74.6 million compared to
$76.9 million in 2019 due to the impact of the COVID-19 pandemic on
various industrial end markets, partially offset by contributions
from the operational integrations and business improvement
plans.
Balance Sheet and Free Cash
Flow
At December 31, 2020, Daseke had cash and cash
equivalents of $176.2 million and $83.2 million available under its
revolving credit facility, for total available liquidity of $259.4
million. Total debt was $679.7 million and net debt was $503.5
million. This compares to cash and cash equivalents of $95.7
million and $86.8 million available on the revolving credit
facility, total available liquidity of $182.5 million, total debt
of $704.1 million, and net debt of $608.4 million at December 31,
2019. Our leverage ratio as defined by our credit agreement as of
December 31, 2020 was 2.6x.
Year to date, net cash provided by operating
activities was $137.3 million, cash capital expenditures were $37.2
million, and cash proceeds from the sale of excess property and
equipment were $68.8 million, resulting in Free Cash Flow of $168.9
million. During the same period, capital expenditures financed with
debt and finance leases was $58.3 million. This compares to net
cash provided by operating activities of $114.1 million, cash
capital expenditures of $22.0 million, and cash proceeds from the
sale of excess property and equipment of $37.8 million, resulting
in Free Cash Flow of $129.9 million for the full year 2019. During
the same period, capital expenditures financed with debt and
finance leases net of property and equipment sold for notes
receivable were $72.7 million.
For the quarter, net cash provided by operating
activities was $14.9 million, cash capital expenditures were $19.2
million, and cash proceeds from the sale of excess property and
equipment were $16.8 million, resulting in Free Cash Flow of $12.5
million. Additionally, capital expenditures financed with debt and
finance leases net of property and equipment sold for notes
receivable were $12.9 million.
Outlook
|
Fiscal Year 2021 |
Revenue |
$1.4 – $1.5 billion |
Adjusted EBITDA |
$165 – $175 million |
Net Capex |
$100 – $110 million |
Cash Capex Less Proceeds |
$35 – $45 million |
Jason Bates, Executive Vice President and Chief
Financial Officer of Daseke concluded, “We enter 2021 from a
position of financial strength. We drove significant free cash flow
in 2020, and dramatically improved our balance sheet. Rates remain
strong to start the year, and we are seeing pockets of strength
throughout our industrial customer base that were previously
pressured by the pandemic. As a result, we will look to optimize
our improved platform and prepare the business to pivot to growth
as pandemic conditions dissipate. We also expect to continue to
generate strong Adjusted EBITDA and cash flows in 2021, which will
allow us to further improve the strength of our balance sheet,
preserving optionality going forward and enabling us to reposition
the business for sustainable long-term growth.”
Conference Call
Daseke will hold a conference call today at
11:00 a.m. Eastern time to discuss its fourth quarter and full year
2020 results and its 2021 outlook. Investors, analysts, and members
of the media interested in listening to the live presentation are
encouraged to join a webcast of the call with accompanying
presentation slides, available on the Company’s website at
https://www.daseke.com. Presentation materials will be posted at
the time of the call at investor.daseke.com as well. Interested
parties may also participate in the call by dialing (855) 242-9918
and entering the passcode 2537616. A replay of the conference call
will be available a few hours after the event on the investor
relations section of the Company’s website, under the events
section.
About Daseke, Inc.
Daseke, Inc. is the largest flatbed and
specialized transportation and logistics company in North America.
Daseke offers comprehensive, best-in-class services to many of the
world’s most respected industrial shippers through experienced
people, a fleet of more than 5,000 tractors and 11,500 flatbed and
specialized trailers. For more information, please visit
www.daseke.com.
Use of Non-GAAP Measures
This news release includes non-GAAP financial
measures for the Company and its reporting segments, including
Adjusted EBITDA, Adjusted EBITDA margin, Total revenue ex-Aveda,
Adjusted Operating Income, Adjusted Net Income (Loss), Adjusted
earnings per share ex-Aveda, Adjusted Operating Ratio, Adjusted
Operating Ratio ex-Aveda, Free Cash Flow and Net Debt. This news
release also includes GAAP and non-GAAP measures appended with
ex-Aveda, which represent the measure excluding the impact of our
Aveda business, which we disposed of in 2020.
Please note that the non-GAAP measures described
below are not a substitute for, or more meaningful than, net income
(loss), cash flows from operating activities, operating income or
any other measure prescribed by GAAP, and there are limitations to
using non-GAAP measures. Certain items excluded from these non-GAAP
measures are significant components in understanding and assessing
a company’s financial performance, such as a company’s cost of
capital, tax structure and the historic costs of depreciable
assets. Also, other companies in Daseke’s industry may define these
non‐GAAP measures differently than Daseke does, and as a result, it
may be difficult to use these non‐GAAP measures to compare the
performance of those companies to Daseke’s performance. Because of
these limitations, these non-GAAP measures should not be considered
a measure of the income generated by Daseke’s business or
discretionary cash available to it to invest in the growth of its
business. Daseke’s management compensates for these limitations by
relying primarily on Daseke’s GAAP results and using these non-GAAP
measures supplementally.
You can find the reconciliation of these
non‐GAAP measures to the nearest comparable GAAP measures in the
Reconciliation of Non‐GAAP Measures tables below.
Adjusted EBITDA
Daseke defines Adjusted EBITDA as net income
(loss) plus (i) depreciation and amortization, (ii) interest, (iii)
income taxes, and (iv) other material items that management
believes do not reflect our core operating performance. Adjusted
EBITDA ex-Aveda is defined as Adjusted EBITDA less the Adjusted
EBITDA of the Aveda business, which we disposed of in 2020.
Adjusted EBITDA ex-Aveda margin is defined as Adjusted EBITDA
ex-Aveda divided by Total revenue ex-Aveda.
The Company’s board of directors and executive
management team use Adjusted EBITDA and Adjusted EBITDA ex-Aveda
(collectively discussed below as "Adjusted EBITDA Metrics") as a
key measure of its performance and for business planning. Adjusted
EBITDA Metrics assists them in comparing the Company’s operating
performance over various reporting periods on a consistent basis
because it removes from the Company’s operating results the impact
of items that, in their opinion, do not reflect the Company’s core
operating performance. Adjusted EBITDA Metrics also allows the
Company to more effectively evaluate its operating performance by
comparing the results of operations against its peers without
regard to its or its peers’ financing method or capital structure.
The Company’s method of computing Adjusted EBITDA Metrics is
substantially consistent with that used in its debt covenants and
also is routinely reviewed by its executive management for that
purpose. The Company believes its presentation of Adjusted EBITDA
Metrics is useful because it provides investors and industry
analysts the same information that the Company uses internally for
purposes of assessing its core operating performance.
Adjusted Net Income (Loss) and Adjusted Earnings
Per Share
Daseke defines Adjusted Net Income (Loss)
ex-Aveda as net income (loss) adjusted for material items that
management believes do not reflect our core operating performance.
Daseke defines Adjusted Net Income (Loss) ex-Aveda per share as
Adjusted Net Income (Loss) ex-Aveda divided by the weighted average
number of shares of common stock outstanding during the period
under the two-class method.
The Company’s board of directors and executive
management team use these measures as key measures of its
performance and for business planning. These measures assist them
in comparing its operating performance over various reporting
periods on a consistent basis because it removes from operating
results the impact of items that, in its opinion, do not reflect
the Company’s core operating performance. The Company believes its
presentation of these measures are useful because it provides
investors and industry analysts the same information that it uses
internally for purposes of assessing its core operating
performance.
Total revenue ex-Aveda, Adjusted Operating
Income (Loss) and Adjusted Operating Ratio
The Company uses Total revenue ex-Aveda,
Adjusted Operating Income (Loss) ex-Aveda and Adjusted Operating
Ratio ex-Aveda as a supplement to its GAAP results in evaluating
certain aspects of its business, as described below. The Company
defines Adjusted Operating Income (Loss) as (a) total revenue less
(b) Adjusted Operating Expenses. The Company defines Adjusted
Operating Expenses as (a) total operating expenses (i) less
material items that management believes do not reflect our core
operating performance. The Company defines Adjusted Operating Ratio
as (a) Adjusted Operating Expenses, as a percentage of (b) total
revenue. The Company defines previously defined terms appended with
ex-Aveda as their previously defined term excluding the impact of
the Aveda business, which we disposed of in 2020.
The Company’s board of directors and executive
management team view these non-GAAP measures, and their key drivers
of revenue quality, growth, expense control and operating
efficiency, as very important measures of the Company’s
performance. The Company believes excluding these items enhances
the comparability of its performance between periods. The Company
believes its presentation of these non-GAAP measures are useful
because they provide investors and industry analysts the same
information that it uses internally for purposes of assessing its
core operating profitability.
Free Cash Flow
Daseke defines Free Cash Flow as net cash
provided by operating activities less purchases of property and
equipment, plus proceeds from sale of property and equipment, as
such amounts are shown on the face of the Statements of Cash
Flows.
The Company’s board of directors and executive
management team use Free Cash Flow to assess the Company’s
liquidity and ability to repay maturing debt, fund operations and
make additional investments. The Company believes Free Cash Flow
provides useful information to investors because it is an important
indicator of the Company’s liquidity, including its ability to
reduce net debt, make strategic investments, pay dividends to
common shareholders and repurchase stock.
Net Debt
Daseke defines net debt as total debt less cash
and cash equivalents. The Company’s board of directors and
executive management team use net debt to help assess the Company’s
liquidity and evaluate and plan for future liquidity needs. The
Company believes that the presentation of net debt is useful to
investors because it provides additional information regarding the
Company’s overall liquidity, financial flexibility, capital
structure and leverage.
Management’s view of Core Operating
Performance
In the non-GAAP measures discussed above,
management refers to certain material items that management
believes do not reflect the Company’s core operating performance,
which management believes represent its performance in the
ordinary, ongoing and customary course of its operations.
Management views the Company’s core operating performance as its
operating results excluding the impact of items including, but not
limited to, stock-based compensation, impairments, amortization of
intangible assets, restructuring, business transformation costs,
and severance. Management believes excluding these items enables
investors to evaluate more clearly and consistently the Company’s
core operational performance in the same manner that management
evaluates its core operational performance.
Forward‐Looking Statements
This news release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be identified by
the use of words such as “may,” “will,” “expect,” “anticipate,”
“continue,” “estimate,” “project,” “believe,” “plan,” “should,”
“could,” “would,” “forecast,” “seek,” “target,” “predict,” and
“potential,” the negative of these terms, or other comparable
terminology. Projected financial information, including our
guidance outlook, are forward-looking statements. Forward-looking
statements may also include statements about the Company’s goals,
including its restructuring actions and cost reduction initiatives;
the Company’s financial strategy, liquidity and capital required
for its business strategy and plans; the Company’s competition and
government regulations; general economic conditions; and the
Company’s future operating results.
These forward-looking statements are based on
information available as of the date of this release, and current
expectations, forecasts and assumptions. While management believes
that these forward-looking statements are reasonable as and when
made, there can be no assurance that future developments affecting
us will be those that the Company anticipates. Accordingly,
forward-looking statements should not be relied upon as
representing the Company’s views as of any subsequent date, and the
Company does not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws. Accordingly, readers are cautioned not to place undue
reliance on the forward-looking statements.
The effect of the COVID-19 pandemic may remain
prevalent for a significant period of time and may continue to
adversely affect the Company’s business, results of operations and
financial condition even after the COVID-19 pandemic has subsided
and “stay at home” mandates have been lifted. The extent to which
the COVID-19 pandemic impacts the Company will depend on numerous
evolving factors and future developments that it cannot predict.
There are no comparable recent events that provide guidance as to
the effect the COVID-19 global pandemic may have, and, as a result,
the ultimate impact of the pandemic is highly uncertain and subject
to change. Additionally, the Company will regularly evaluate its
capital structure and liquidity position. From time to time and as
opportunities arise, the Company may access the debt capital
markets and modify its debt arrangements to optimize its capital
structure and liquidity position.
Forward-looking statements are subject to risks
and uncertainties (many of which are beyond our control) that could
cause actual results or outcomes to differ materially from those
indicated by such forward-looking statements. These factors
include, but are not limited to, general economic and business
risks, such as downturns in customers’ business cycles and
disruptions in capital and credit markets, the impact to the
Company’s business and operations resulting from the COVID-19
pandemic, the Company’s ability to execute and realize all of the
expected benefits of its integration, business improvement and
comprehensive restructuring plans, the Company’s ability to
complete planned or future divestitures successfully, the Company’s
ability to adequately address downward pricing and other
competitive pressures, driver shortages and increases in driver
compensation or owner-operator contracted rates, loss of senior
management or key operating personnel, our ability to realize
intended benefits from its recent or future acquisitions,
seasonality and the impact of weather and other catastrophic
events, fluctuations in the price or availability of diesel fuel,
increased prices for, or decreases in the availability of, new
revenue equipment and decreases in the value of used revenue
equipment, the Company’s ability to generate sufficient cash to
service all of the Company’s indebtedness, restrictions in its
existing and future debt agreements, increases in interest rates,
changes in existing laws or regulations, including environmental
and worker health safety laws and regulations and those relating to
tax rates or taxes in general, the impact of governmental
regulations and other governmental actions related to the Company
and its operations, litigation and governmental proceedings, and
insurance and claims expenses. You should not place undue reliance
on these forward-looking statements. For additional information
regarding known material factors that could cause our actual
results to differ from those expressed in forward-looking
statements, please see Daseke’s filings with the Securities and
Exchange Commission, available at www.sec.gov, including Daseke’s
most recent annual report on Form 10-K, and subsequent quarterly
reports on Form 10-Q, particularly the section titled “Risk
Factors”.
Investor Relations:
Alpha IR GroupJoseph Caminiti or Ashley
Gruenberg312-445-2870DSKE@alpha-ir.com
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Daseke, Inc. and Subsidiaries |
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) |
(Unaudited) |
(In millions, except share and per share data) |
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
|
2020 |
|
2019 |
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2020 |
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2019 |
Revenues: |
|
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|
|
|
|
|
|
|
Company freight |
$ |
154.1 |
|
|
$ |
186.3 |
|
|
$ |
676.8 |
|
|
$ |
804.6 |
|
Owner operator freight |
|
101.8 |
|
|
|
104.3 |
|
|
|
408.9 |
|
|
|
455.3 |
|
Brokerage |
|
49.5 |
|
|
|
71.9 |
|
|
|
234.3 |
|
|
|
294.7 |
|
Logistics |
|
8.6 |
|
|
|
8.5 |
|
|
|
37.4 |
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|
|
47.5 |
|
Fuel surcharge |
|
21.6 |
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32.0 |
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96.7 |
|
|
|
134.9 |
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Total revenue |
|
335.6 |
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|
403.0 |
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1,454.1 |
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|
1,737.0 |
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Operating expenses: |
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Salaries, wages and employee benefits |
|
93.8 |
|
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112.1 |
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399.4 |
|
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|
483.2 |
|
Fuel |
|
20.2 |
|
|
|
33.2 |
|
|
|
87.3 |
|
|
|
138.5 |
|
Operations and maintenance |
|
32.7 |
|
|
|
48.4 |
|
|
|
169.1 |
|
|
|
213.1 |
|
Purchased freight |
|
117.1 |
|
|
|
139.2 |
|
|
|
491.4 |
|
|
|
597.7 |
|
Administrative and other expenses |
|
41.8 |
|
|
|
39.6 |
|
|
|
155.2 |
|
|
|
154.1 |
|
Depreciation and amortization |
|
26.9 |
|
|
|
27.0 |
|
|
|
98.3 |
|
|
|
146.5 |
|
Gain on disposition of property and equipment |
|
(3.0 |
) |
|
|
(3.1 |
) |
|
|
(6.9 |
) |
|
|
(5.2 |
) |
Impairment |
|
2.0 |
|
|
|
6.0 |
|
|
|
15.4 |
|
|
|
312.8 |
|
Restructuring charges |
|
0.9 |
|
|
|
1.5 |
|
|
|
9.5 |
|
|
|
8.4 |
|
Total operating expenses |
|
332.4 |
|
|
|
403.9 |
|
|
|
1,418.7 |
|
|
|
2,049.1 |
|
Income (loss) from operations |
|
3.2 |
|
|
|
(0.9 |
) |
|
|
35.4 |
|
|
|
(312.1 |
) |
Other expense (income) |
|
(3.7 |
) |
|
|
11.7 |
|
|
|
29.4 |
|
|
|
49.9 |
|
Income (loss) before income
taxes |
|
6.9 |
|
|
|
(12.6 |
) |
|
|
6.0 |
|
|
|
(362.0 |
) |
Income tax expense (benefit) |
|
(0.4 |
) |
|
|
5.8 |
|
|
|
(0.2 |
) |
|
|
(54.6 |
) |
Net income (loss) |
|
7.3 |
|
|
|
(18.4 |
) |
|
|
6.2 |
|
|
|
(307.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
7.3 |
|
|
$ |
(18.4 |
) |
|
$ |
6.2 |
|
|
$ |
(307.4 |
) |
Less dividends to Series A convertible preferred stockholders |
|
(1.2 |
) |
|
|
(1.3 |
) |
|
|
(4.9 |
) |
|
|
(5.0 |
) |
Net income (loss) attributable to common stockholders |
$ |
6.1 |
|
|
$ |
(19.7 |
) |
|
$ |
1.3 |
|
|
$ |
(312.4 |
) |
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
(0.31 |
) |
|
$ |
0.02 |
|
|
$ |
(4.86 |
) |
Diluted |
$ |
0.09 |
|
|
$ |
(0.31 |
) |
|
$ |
0.02 |
|
|
$ |
(4.86 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
65,023,174 |
|
|
|
64,589,075 |
|
|
|
64,775,275 |
|
|
|
64,303,438 |
|
Diluted |
|
66,149,361 |
|
|
|
64,589,075 |
|
|
|
65,671,246 |
|
|
|
64,303,438 |
|
Dividends declared per Series A
convertible preferred share |
$ |
1.91 |
|
|
$ |
1.91 |
|
|
$ |
7.63 |
|
|
$ |
7.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
176.2 |
|
$ |
95.7 |
Accounts receivable, net |
|
154.4 |
|
|
197.8 |
Other current assets |
|
34.5 |
|
|
33.6 |
Total current assets |
|
365.1 |
|
|
327.1 |
Property and equipment, net |
|
402.7 |
|
|
464.3 |
Goodwill and intangible assets,
net |
|
233.9 |
|
|
249.0 |
Other long-term assets |
|
125.2 |
|
|
100.2 |
Total assets |
$ |
1,126.9 |
|
$ |
1,140.6 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
16.5 |
|
$ |
20.5 |
Accrued expenses |
|
65.6 |
|
|
72.4 |
Current portion of long-term debt |
|
54.0 |
|
|
59.4 |
Other current liabilities |
|
54.6 |
|
|
67.5 |
Total current liabilities |
|
190.7 |
|
|
219.8 |
Long-term debt, net of current
portion |
|
618.6 |
|
|
631.6 |
Other long-term liabilities |
|
172.5 |
|
|
150.5 |
Total liabilities |
|
981.8 |
|
|
1,001.9 |
Stockholders’ equity |
|
145.1 |
|
|
138.7 |
Total liabilities and stockholders’ equity |
$ |
1,126.9 |
|
$ |
1,140.6 |
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Summarized Cash Flow Information |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net cash provided by operating activities |
$ |
14.9 |
|
|
$ |
24.7 |
|
|
$ |
137.3 |
|
|
$ |
114.1 |
|
Net cash provided by investing
activities |
|
(2.4 |
) |
|
|
9.4 |
|
|
|
31.6 |
|
|
|
15.8 |
|
Net cash used in financing
activities |
|
(26.1 |
) |
|
|
(17.7 |
) |
|
|
(88.8 |
) |
|
|
(79.6 |
) |
Effect of exchange rates on
cash and cash equivalents |
|
— |
|
|
|
(0.3 |
) |
|
|
0.4 |
|
|
|
(0.6 |
) |
|
$ |
(13.6 |
) |
|
$ |
16.1 |
|
|
$ |
80.5 |
|
|
$ |
49.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
acquired with debt or finance lease obligations |
$ |
12.9 |
|
|
$ |
7.1 |
|
|
$ |
58.3 |
|
|
$ |
72.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Reconciliation of cash flows from operating activities to
Free Cash Flow |
(Unaudited) |
(In millions) |
|
|
Three months ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
(Dollars in millions) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net cash provided by operating activities |
|
$ |
14.9 |
|
|
$ |
24.7 |
|
|
$ |
137.3 |
|
|
$ |
114.1 |
|
Purchases of property and
equipment |
|
|
(19.2 |
) |
|
|
(4.6 |
) |
|
|
(37.2 |
) |
|
|
(22.0 |
) |
Proceeds from sale of property
and equipment |
|
|
16.8 |
|
|
|
14.0 |
|
|
|
68.8 |
|
|
|
37.8 |
|
Free Cash
Flow |
|
$ |
12.5 |
|
|
$ |
34.1 |
|
|
$ |
168.9 |
|
|
$ |
129.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Reconciliation of total debt to net debt |
(Unaudited) |
(In millions) |
|
|
As of December 31, |
|
|
2020 |
|
2019 |
Term Loan Facility |
|
$ |
483.5 |
|
|
$ |
490.2 |
|
Equipment term loans |
|
|
164.9 |
|
|
|
188.4 |
|
Finance lease obligations |
|
|
31.3 |
|
|
|
25.5 |
|
Total debt |
|
|
679.7 |
|
|
|
704.1 |
|
Less: cash and cash
equivalents |
|
|
(176.2 |
) |
|
|
(95.7 |
) |
Net debt |
|
$ |
503.5 |
|
|
$ |
608.4 |
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Specialized
Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company freight |
|
$ |
112.1 |
|
|
57.0 |
|
$ |
139.4 |
|
|
54.2 |
|
$ |
(27.3 |
) |
|
(19.6 |
) |
Owner operator freight |
|
|
33.8 |
|
|
17.2 |
|
|
43.1 |
|
|
16.7 |
|
|
(9.3 |
) |
|
(21.6 |
) |
Brokerage |
|
|
31.9 |
|
|
16.2 |
|
|
52.5 |
|
|
20.4 |
|
|
(20.6 |
) |
|
(39.2 |
) |
Logistics |
|
|
8.1 |
|
|
4.1 |
|
|
7.7 |
|
|
3.0 |
|
|
0.4 |
|
|
5.2 |
|
Fuel surcharge |
|
|
10.6 |
|
|
5.4 |
|
|
14.7 |
|
|
5.7 |
|
|
(4.1 |
) |
|
(27.9 |
) |
Total revenue |
|
|
196.5 |
|
|
100.0 |
|
|
257.4 |
|
|
100.0 |
|
|
(60.9 |
) |
|
(23.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
182.3 |
|
|
92.8 |
|
|
247.3 |
|
|
96.1 |
|
|
(65.0 |
) |
|
(26.3 |
) |
Operating ratio |
|
|
92.8 |
% |
|
|
|
|
96.1 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
92.8 |
% |
|
|
|
|
94.4 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio
ex-Aveda |
|
|
92.8 |
% |
|
|
|
|
91.9 |
% |
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
$ |
14.2 |
|
|
7.2 |
|
$ |
10.1 |
|
|
3.9 |
|
$ |
4.1 |
|
|
40.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company miles |
|
|
37.8 |
|
|
|
|
|
39.2 |
|
|
|
|
|
(1.4 |
) |
|
(3.6 |
) |
Owner operator miles |
|
|
11.5 |
|
|
|
|
|
14.0 |
|
|
|
|
|
(2.5 |
) |
|
(17.9 |
) |
Total miles (in
millions)(2) |
|
|
49.3 |
|
|
|
|
|
53.2 |
|
|
|
|
|
(3.9 |
) |
|
(7.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate per mile |
|
$ |
2.96 |
|
|
|
|
$ |
3.43 |
|
|
|
|
$ |
(0.47 |
) |
|
(13.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors, at
quarter-end |
|
|
1,960 |
|
|
|
|
|
2,316 |
|
|
|
|
|
(356 |
) |
|
(15.4 |
) |
Owner-operated tractors, at
quarter-end |
|
|
501 |
|
|
|
|
|
692 |
|
|
|
|
|
(191 |
) |
|
(27.6 |
) |
Number of trailers, at
quarter-end |
|
|
7,324 |
|
|
|
|
|
8,068 |
|
|
|
|
|
(744 |
) |
|
(9.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the quarter |
|
|
1,969 |
|
|
|
|
|
2,357 |
|
|
|
|
|
(388 |
) |
|
(16.5 |
) |
Owner-operated tractors,
average for the quarter |
|
|
500 |
|
|
|
|
|
695 |
|
|
|
|
|
(195 |
) |
|
(28.1 |
) |
Total tractors, average for
the quarter |
|
|
2,469 |
|
|
|
|
|
3,052 |
|
|
|
|
|
(583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
intersegment revenues and expenses, as applicable, which are
eliminated in the Company’s consolidated results. |
(2) Miles are
estimated based on information received as the date of filing.
Miles may change quarter to quarter when final information is
received from each operating segment. |
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Specialized
Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company freight |
|
$ |
495.6 |
|
|
55.5 |
|
$ |
603.2 |
|
|
55.1 |
|
|
$ |
(107.6 |
) |
|
(17.8 |
) |
Owner operator freight |
|
|
152.5 |
|
|
17.1 |
|
|
185.5 |
|
|
16.9 |
|
|
|
(33.0 |
) |
|
(17.8 |
) |
Brokerage |
|
|
165.6 |
|
|
18.5 |
|
|
200.8 |
|
|
18.3 |
|
|
|
(35.2 |
) |
|
(17.5 |
) |
Logistics |
|
|
34.5 |
|
|
3.9 |
|
|
44.8 |
|
|
4.1 |
|
|
|
(10.3 |
) |
|
(23.0 |
) |
Fuel surcharge |
|
|
45.5 |
|
|
5.1 |
|
|
61.4 |
|
|
5.6 |
|
|
|
(15.9 |
) |
|
(25.9 |
) |
Total revenue |
|
|
893.7 |
|
|
100.0 |
|
|
1,095.7 |
|
|
100.0 |
|
|
|
(202.0 |
) |
|
(18.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
840.4 |
|
|
94.0 |
|
|
1,254.4 |
|
|
114.5 |
|
|
|
(414.0 |
) |
|
(33.0 |
) |
Operating ratio |
|
|
94.0 |
% |
|
|
|
|
114.5 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
91.2 |
% |
|
|
|
|
93.7 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio
ex-Aveda |
|
|
90.0 |
% |
|
|
|
|
92.1 |
% |
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
$ |
53.3 |
|
|
6.0 |
|
$ |
(158.7 |
) |
|
(14.5 |
) |
|
$ |
212.0 |
|
|
(133.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company miles |
|
|
155.2 |
|
|
|
|
|
167.6 |
|
|
|
|
|
(12.4 |
) |
|
(7.4 |
) |
Owner operator miles |
|
|
49.7 |
|
|
|
|
|
54.7 |
|
|
|
|
|
(5.0 |
) |
|
(9.1 |
) |
Total miles (in
millions)(2) |
|
|
204.9 |
|
|
|
|
|
222.3 |
|
|
|
|
|
(17.4 |
) |
|
(7.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate per mile |
|
$ |
3.16 |
|
|
|
|
$ |
3.55 |
|
|
|
|
$ |
(0.38 |
) |
|
(10.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors, as
of year-end |
|
|
1,960 |
|
|
|
|
|
2,316 |
|
|
|
|
|
(356 |
) |
|
(15.4 |
) |
Owner-operated tractors, as of
year-end |
|
|
501 |
|
|
|
|
|
692 |
|
|
|
|
|
(191 |
) |
|
(27.6 |
) |
Number of trailers, as of
year-end |
|
|
7,324 |
|
|
|
|
|
8,068 |
|
|
|
|
|
(744 |
) |
|
(9.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the year |
|
|
2,255 |
|
|
|
|
|
2,458 |
|
|
|
|
|
(203 |
) |
|
(8.3 |
) |
Owner-operated tractors,
average for the year |
|
|
634 |
|
|
|
|
|
679 |
|
|
|
|
|
(45 |
) |
|
(6.6 |
) |
Total tractors, average for
the year |
|
|
2,889 |
|
|
|
|
|
3,137 |
|
|
|
|
|
(248 |
) |
|
(7.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
intersegment revenues and expenses, as applicable, which are
eliminated in the Company’s consolidated results. |
(2) Miles are
estimated based on information received as the date of filing.
Miles may change quarter to quarter when final information is
received from each operating segment. |
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Flatbed Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company freight |
|
$ |
43.9 |
|
|
30.9 |
|
$ |
50.0 |
|
|
33.3 |
|
$ |
(6.1 |
) |
|
(12.2 |
) |
Owner operator freight |
|
|
68.6 |
|
|
48.3 |
|
|
62.6 |
|
|
41.7 |
|
|
6.0 |
|
|
9.6 |
|
Brokerage |
|
|
17.7 |
|
|
12.5 |
|
|
19.2 |
|
|
12.8 |
|
|
(1.5 |
) |
|
(7.8 |
) |
Logistics |
|
|
0.7 |
|
|
0.5 |
|
|
0.8 |
|
|
0.5 |
|
|
(0.1 |
) |
|
(12.5 |
) |
Fuel surcharge |
|
|
11.2 |
|
|
7.9 |
|
|
17.7 |
|
|
11.8 |
|
|
(6.5 |
) |
|
(36.7 |
) |
Total revenue |
|
|
142.1 |
|
|
100.0 |
|
|
150.3 |
|
|
100.0 |
|
|
(8.2 |
) |
|
(5.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
138.1 |
|
|
97.2 |
|
|
146.2 |
|
|
97.3 |
|
|
(8.1 |
) |
|
(5.5 |
) |
Operating ratio |
|
|
97.2 |
% |
|
|
|
|
97.3 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
94.9 |
% |
|
|
|
|
93.7 |
% |
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS |
|
$ |
4.0 |
|
|
2.8 |
|
$ |
4.1 |
|
|
2.7 |
|
$ |
(0.1 |
) |
|
(2.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company miles |
|
|
20.9 |
|
|
|
|
|
25.8 |
|
|
|
|
|
(4.9 |
) |
|
(19.0 |
) |
Owner operator miles |
|
|
34.5 |
|
|
|
|
|
34.4 |
|
|
|
|
|
0.1 |
|
|
0.3 |
|
Total miles (in
millions)(2) |
|
|
55.4 |
|
|
|
|
|
60.2 |
|
|
|
|
|
(4.8 |
) |
|
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate per mile |
|
$ |
2.03 |
|
|
|
|
$ |
1.87 |
|
|
|
|
$ |
0.16 |
|
|
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors, at
quarter-end |
|
|
993 |
|
|
|
|
|
1,240 |
|
|
|
|
|
(247 |
) |
|
(19.9 |
) |
Owner-operated tractors, at
quarter-end |
|
|
1,598 |
|
|
|
|
|
1,642 |
|
|
|
|
|
(44 |
) |
|
(2.7 |
) |
Number of trailers, at
quarter-end |
|
|
4,255 |
|
|
|
|
|
4,740 |
|
|
|
|
|
(485 |
) |
|
(10.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the quarter |
|
|
1,012 |
|
|
|
|
|
1,250 |
|
|
|
|
|
(238 |
) |
|
(19.0 |
) |
Owner-operated tractors,
average for the quarter |
|
|
1,603 |
|
|
|
|
|
1,676 |
|
|
|
|
|
(73 |
) |
|
(4.4 |
) |
Total tractors, average for
the quarter |
|
|
2,615 |
|
|
|
|
|
2,926 |
|
|
|
|
|
(311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
intersegment revenues and expenses, as applicable, which are
eliminated in the Company’s consolidated results. |
(2) Miles are
estimated based on information received as the date of filing.
Miles may change quarter to quarter when final information is
received from each operating segment. |
|
Daseke, Inc. and Subsidiaries |
Supplemental Information: Flatbed Solutions |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Increase (Decrease) |
(Dollars in millions) |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
REVENUE(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company freight |
|
$ |
191.2 |
|
|
33.0 |
|
$ |
215.3 |
|
|
32.5 |
|
|
$ |
(24.1 |
) |
|
(11.2 |
) |
Owner operator freight |
|
|
262.1 |
|
|
45.3 |
|
|
275.7 |
|
|
41.6 |
|
|
|
(13.6 |
) |
|
(4.9 |
) |
Brokerage |
|
|
70.3 |
|
|
12.1 |
|
|
93.9 |
|
|
14.2 |
|
|
|
(23.6 |
) |
|
(25.1 |
) |
Logistics |
|
|
2.9 |
|
|
0.5 |
|
|
2.8 |
|
|
0.4 |
|
|
|
0.1 |
|
|
3.6 |
|
Fuel surcharge |
|
|
52.4 |
|
|
9.1 |
|
|
75.3 |
|
|
11.4 |
|
|
|
(22.9 |
) |
|
(30.4 |
) |
Total revenue |
|
|
578.9 |
|
|
100.0 |
|
|
663.0 |
|
|
100.0 |
|
|
|
(84.1 |
) |
|
(12.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
546.3 |
|
|
94.4 |
|
|
757.4 |
|
|
114.2 |
|
|
|
(211.1 |
) |
|
(27.9 |
) |
Operating ratio |
|
|
94.4 |
% |
|
|
|
|
114.2 |
% |
|
|
|
|
|
|
|
Adjusted operating ratio |
|
|
93.2 |
% |
|
|
|
|
95.2 |
% |
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
$ |
32.6 |
|
|
5.6 |
|
$ |
(94.4 |
) |
|
(14.2 |
) |
|
$ |
127.0 |
|
|
(134.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
STATISTICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company miles |
|
|
96.3 |
|
|
|
|
|
108.8 |
|
|
|
|
|
(12.5 |
) |
|
(11.5 |
) |
Owner operator miles |
|
|
141.6 |
|
|
|
|
|
147.4 |
|
|
|
|
|
(5.8 |
) |
|
(3.9 |
) |
Total miles (in
millions)(2) |
|
|
237.9 |
|
|
|
|
|
256.2 |
|
|
|
|
|
(18.3 |
) |
|
(7.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate per mile |
|
$ |
1.91 |
|
|
|
|
$ |
1.92 |
|
|
|
|
$ |
(0.01 |
) |
|
(0.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors, as
of year-end |
|
|
993 |
|
|
|
|
|
1,240 |
|
|
|
|
|
(247 |
) |
|
(19.9 |
) |
Owner-operated tractors, as of
year-end |
|
|
1,598 |
|
|
|
|
|
1,642 |
|
|
|
|
|
(44 |
) |
|
(2.7 |
) |
Number of trailers, as of
year-end |
|
|
4,255 |
|
|
|
|
|
4,740 |
|
|
|
|
|
(485 |
) |
|
(10.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated tractors,
average for the year |
|
|
1,118 |
|
|
|
|
|
1,305 |
|
|
|
|
|
(187 |
) |
|
(14.3 |
) |
Owner-operated tractors,
average for the year |
|
|
1,574 |
|
|
|
|
|
1,668 |
|
|
|
|
|
(94 |
) |
|
(5.6 |
) |
Total tractors, average for
the year |
|
|
2,692 |
|
|
|
|
|
2,973 |
|
|
|
|
|
(281 |
) |
|
(9.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
intersegment revenues and expenses, as applicable, which are
eliminated in the Company’s consolidated results. |
(2) Miles are
estimated based on information received as the date of filing.
Miles may change quarter to quarter when final information is
received from each operating segment. |
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Operating Ratio to Adjusted Operating
Ratio ex-Aveda |
Reconciliation of Operating Income (Loss) to Operating
Income (Loss) ex-Aveda |
Reconciliation of Revenue to Revenue ex-Aveda |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
(Dollars in millions) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Consolidated |
|
Flatbed |
|
Specialized |
Revenue |
|
$ |
335.6 |
|
|
$ |
403.0 |
|
|
$ |
142.1 |
|
|
$ |
150.3 |
|
|
$ |
196.5 |
|
|
$ |
257.4 |
|
Less Aveda Revenue |
|
|
— |
|
|
|
(42.1 |
) |
|
|
|
|
|
|
|
|
— |
|
|
|
(42.1 |
) |
Revenue
ex-Aveda |
|
$ |
335.6 |
|
|
$ |
360.9 |
|
|
|
|
|
|
|
|
$ |
196.5 |
|
|
$ |
215.3 |
|
Salaries, wages and employee benefits |
|
|
93.7 |
|
|
|
112.1 |
|
|
|
30.1 |
|
|
|
32.1 |
|
|
|
57.0 |
|
|
|
75.7 |
|
Fuel |
|
|
20.2 |
|
|
|
33.2 |
|
|
|
6.8 |
|
|
|
12.1 |
|
|
|
13.4 |
|
|
|
21.1 |
|
Operations and maintenance |
|
|
32.7 |
|
|
|
48.4 |
|
|
|
9.5 |
|
|
|
12.0 |
|
|
|
23.4 |
|
|
|
36.4 |
|
Purchased freight |
|
|
117.0 |
|
|
|
139.2 |
|
|
|
67.5 |
|
|
|
67.0 |
|
|
|
52.3 |
|
|
|
76.8 |
|
Depreciation and amortization |
|
|
26.9 |
|
|
|
27.0 |
|
|
|
10.6 |
|
|
|
9.2 |
|
|
|
16.1 |
|
|
|
17.6 |
|
Impairment |
|
|
2.0 |
|
|
|
6.0 |
|
|
|
2.0 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
2.5 |
|
Restructuring |
|
|
0.9 |
|
|
|
1.5 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
|
0.5 |
|
|
|
0.4 |
|
Other operating expenses |
|
|
39.1 |
|
|
|
36.5 |
|
|
|
11.3 |
|
|
|
9.5 |
|
|
|
19.6 |
|
|
|
16.8 |
|
Operating expenses |
|
|
332.5 |
|
|
|
403.9 |
|
|
|
138.1 |
|
|
|
146.2 |
|
|
|
182.3 |
|
|
|
247.3 |
|
Less Aveda Operating Expenses |
|
|
1.4 |
|
|
|
(45.2 |
) |
|
|
|
|
|
|
|
|
1.4 |
|
|
|
(45.2 |
) |
Operating expenses ex-Aveda |
|
|
333.9 |
|
|
|
358.7 |
|
|
|
|
|
|
|
|
|
183.7 |
|
|
|
202.1 |
|
Operating income (loss) |
|
$ |
3.1 |
|
|
$ |
(0.9 |
) |
|
$ |
4.0 |
|
|
$ |
4.1 |
|
|
$ |
14.2 |
|
|
$ |
10.1 |
|
Operating income (loss) ex-Aveda |
|
$ |
1.7 |
|
|
$ |
2.2 |
|
|
|
|
|
|
|
|
$ |
12.8 |
|
|
$ |
13.2 |
|
Operating ratio |
|
|
99.1 |
% |
|
|
100.2 |
% |
|
|
97.2 |
% |
|
|
97.3 |
% |
|
|
92.8 |
% |
|
|
96.1 |
% |
Operating ratio ex-Aveda |
|
|
99.5 |
% |
|
|
99.4 |
% |
|
|
|
|
|
|
|
|
93.5 |
% |
|
|
93.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
1.0 |
|
|
|
0.9 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Impairment |
|
|
2.0 |
|
|
|
6.0 |
|
|
|
2.0 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
2.5 |
|
Impaired lease termination |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Amortization of intangible assets |
|
|
1.7 |
|
|
|
1.9 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.9 |
|
|
|
1.1 |
|
Net impact of step-up in basis of acquired assets |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
Other (1) |
|
|
5.8 |
|
|
|
4.4 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
|
(1.2 |
) |
|
|
0.4 |
|
Adjusted operating expenses |
|
|
322.1 |
|
|
|
390.8 |
|
|
|
134.9 |
|
|
|
140.8 |
|
|
|
182.4 |
|
|
|
243.0 |
|
Less Aveda Operating Expense Adjustments |
|
|
1.4 |
|
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
1.4 |
|
|
|
(0.1 |
) |
Adjusted operating expenses ex-Aveda |
|
|
322.1 |
|
|
|
345.7 |
|
|
|
|
|
|
|
|
|
182.4 |
|
|
|
197.9 |
|
Adjusted operating income |
|
$ |
13.5 |
|
|
$ |
12.2 |
|
|
$ |
7.2 |
|
|
$ |
9.5 |
|
|
$ |
14.1 |
|
|
$ |
14.4 |
|
Adjusted operating income ex-Aveda |
|
$ |
13.5 |
|
|
$ |
15.2 |
|
|
|
|
|
|
|
|
$ |
14.1 |
|
|
$ |
17.4 |
|
Adjusted operating ratio |
|
|
96.0 |
% |
|
|
97.0 |
% |
|
|
94.9 |
% |
|
|
93.7 |
% |
|
|
92.8 |
% |
|
|
94.4 |
% |
Adjusted operating ratio ex-Aveda |
|
|
96.0 |
% |
|
|
95.8 |
% |
|
|
|
|
|
|
|
|
92.8 |
% |
|
|
91.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
includes business transformation costs, restructuring and
severance. |
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Operating Ratio to Adjusted Operating
Ratio ex-Aveda |
Reconciliation of Operating Income (Loss) to Operating
Income (Loss) ex-Aveda |
Reconciliation of Revenue to Revenue ex-Aveda |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
(Dollars in millions) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Consolidated |
|
Flatbed |
|
Specialized |
Revenue |
|
$ |
1,454.1 |
|
|
$ |
1,737.0 |
|
|
$ |
578.9 |
|
|
$ |
663.0 |
|
|
$ |
893.7 |
|
|
$ |
1,095.7 |
|
Less Aveda Revenue |
|
|
(51.7 |
) |
|
|
(206.3 |
) |
|
|
|
|
|
|
|
|
(51.7 |
) |
|
|
(206.3 |
) |
Revenue
ex-Aveda |
|
$ |
1,402.4 |
|
|
$ |
1,530.7 |
|
|
|
|
|
|
|
|
$ |
842.0 |
|
|
$ |
889.4 |
|
Salaries, wages and employee benefits |
|
|
399.4 |
|
|
|
483.2 |
|
|
|
124.1 |
|
|
|
136.5 |
|
|
|
255.2 |
|
|
|
322.1 |
|
Fuel |
|
|
87.3 |
|
|
|
138.5 |
|
|
|
31.1 |
|
|
|
49.9 |
|
|
|
56.2 |
|
|
|
88.6 |
|
Operations and maintenance |
|
|
169.1 |
|
|
|
213.1 |
|
|
|
41.6 |
|
|
|
52.5 |
|
|
|
127.6 |
|
|
|
160.0 |
|
Purchased freight |
|
|
491.4 |
|
|
|
597.7 |
|
|
|
264.5 |
|
|
|
304.8 |
|
|
|
245.4 |
|
|
|
314.6 |
|
Depreciation and amortization |
|
|
98.3 |
|
|
|
146.5 |
|
|
|
38.3 |
|
|
|
51.8 |
|
|
|
59.1 |
|
|
|
94.0 |
|
Impairment |
|
|
15.4 |
|
|
|
312.8 |
|
|
|
2.0 |
|
|
|
116.7 |
|
|
|
13.4 |
|
|
|
196.1 |
|
Restructuring |
|
|
9.5 |
|
|
|
8.4 |
|
|
|
0.6 |
|
|
|
1.7 |
|
|
|
8.8 |
|
|
|
3.9 |
|
Other operating expenses |
|
|
148.3 |
|
|
|
148.9 |
|
|
|
44.1 |
|
|
|
43.5 |
|
|
|
74.7 |
|
|
|
75.1 |
|
Operating expenses |
|
|
1,418.7 |
|
|
|
2,049.1 |
|
|
|
546.3 |
|
|
|
757.4 |
|
|
|
840.4 |
|
|
|
1,254.4 |
|
Less Aveda Operating Expenses |
|
|
(77.7 |
) |
|
|
(252.2 |
) |
|
|
|
|
|
|
|
|
(77.7 |
) |
|
|
(252.2 |
) |
Operating expenses ex-Aveda |
|
|
1,341.0 |
|
|
|
1,796.9 |
|
|
|
|
|
|
|
|
|
762.7 |
|
|
|
1,002.2 |
|
Operating income (loss) |
|
$ |
35.4 |
|
|
$ |
(312.1 |
) |
|
$ |
32.6 |
|
|
$ |
(94.4 |
) |
|
$ |
53.3 |
|
|
$ |
(158.7 |
) |
Operating income (loss) ex-Aveda |
|
$ |
61.4 |
|
|
$ |
(266.2 |
) |
|
|
|
|
|
|
|
$ |
79.3 |
|
|
$ |
(112.8 |
) |
Operating ratio |
|
|
97.6 |
% |
|
|
118.0 |
% |
|
|
94.4 |
% |
|
|
114.2 |
% |
|
|
94.0 |
% |
|
|
114.5 |
% |
Operating ratio (ex-Aveda) |
|
|
95.6 |
% |
|
|
117.4 |
% |
|
|
|
|
|
|
|
|
90.6 |
% |
|
|
112.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
6.0 |
|
|
|
3.8 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.4 |
|
|
|
1.6 |
|
Impairment |
|
|
15.4 |
|
|
|
312.8 |
|
|
|
2.0 |
|
|
|
116.7 |
|
|
|
13.4 |
|
|
|
196.1 |
|
Impaired lease termination |
|
|
(2.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.5 |
) |
|
|
— |
|
Amortization of intangible assets |
|
|
7.2 |
|
|
|
14.3 |
|
|
|
3.2 |
|
|
|
5.3 |
|
|
|
4.0 |
|
|
|
9.0 |
|
Net impact of step-up in basis of acquired assets |
|
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
16.6 |
|
Other (1) |
|
|
22.0 |
|
|
|
18.1 |
|
|
|
0.7 |
|
|
|
1.8 |
|
|
|
9.0 |
|
|
|
4.6 |
|
Adjusted operating expenses |
|
|
1,370.6 |
|
|
|
1,682.0 |
|
|
|
539.7 |
|
|
|
631.2 |
|
|
|
815.1 |
|
|
|
1,026.5 |
|
Less Aveda Operating Expense Adjustments |
|
|
(20.1 |
) |
|
|
(45.2 |
) |
|
|
|
|
|
|
|
|
(20.1 |
) |
|
|
(45.2 |
) |
Adjusted operating expenses ex-Aveda |
|
|
1,313.0 |
|
|
|
1,475.0 |
|
|
|
|
|
|
|
|
|
757.5 |
|
|
|
819.5 |
|
Adjusted operating income |
|
$ |
83.5 |
|
|
$ |
55.0 |
|
|
$ |
39.2 |
|
|
$ |
31.8 |
|
|
$ |
78.6 |
|
|
$ |
69.2 |
|
Adjusted operating income ex-Aveda |
|
$ |
89.4 |
|
|
$ |
55.7 |
|
|
|
|
|
|
|
|
$ |
84.5 |
|
|
$ |
69.9 |
|
Adjusted operating ratio |
|
|
94.3 |
% |
|
|
96.8 |
% |
|
|
93.2 |
% |
|
|
95.2 |
% |
|
|
91.2 |
% |
|
|
93.7 |
% |
Adjusted operating ratio ex-Aveda |
|
|
93.6 |
% |
|
|
96.4 |
% |
|
|
|
|
|
|
|
|
90.0 |
% |
|
|
92.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
includes business transformation costs, restructuring and
severance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke, Inc. and Subsidiaries |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA
ex-Aveda by Segment |
|
Reconciliation of Net Income (Loss) Margin to Adjusted
EBITDA ex-Aveda Margin by Segment |
|
(Unaudited) |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, 2020 |
|
December 31, 2020 |
|
(Dollars in millions) |
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
|
Net income (loss) |
|
$ |
(11.0 |
) |
|
$ |
10.5 |
|
|
$ |
7.8 |
|
|
$ |
7.3 |
|
|
$ |
3.9 |
|
|
$ |
26.9 |
|
|
$ |
(24.6 |
) |
|
$ |
6.2 |
|
|
Depreciation and amortization |
|
|
10.6 |
|
|
|
16.1 |
|
|
|
0.2 |
|
|
|
26.9 |
|
|
|
38.3 |
|
|
|
59.1 |
|
|
|
0.9 |
|
|
|
98.3 |
|
|
Interest income |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
Interest expense |
|
|
2.3 |
|
|
|
2.6 |
|
|
|
5.9 |
|
|
|
10.8 |
|
|
|
9.5 |
|
|
|
11.4 |
|
|
|
24.0 |
|
|
|
44.9 |
|
|
Income tax expense (benefit) |
|
|
(3.5 |
) |
|
|
(9.0 |
) |
|
|
12.1 |
|
|
|
(0.4 |
) |
|
|
3.4 |
|
|
|
5.1 |
|
|
|
(8.7 |
) |
|
|
(0.2 |
) |
|
Stock based compensation |
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
1.0 |
|
|
|
0.7 |
|
|
|
1.4 |
|
|
|
3.9 |
|
|
|
6.0 |
|
|
Impairment |
|
|
2.0 |
|
|
|
— |
|
|
|
— |
|
|
|
2.0 |
|
|
|
2.0 |
|
|
|
13.4 |
|
|
|
— |
|
|
|
15.4 |
|
|
Impaired lease termination |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(2.5 |
) |
|
|
— |
|
|
|
(2.5 |
) |
|
Arbitrated decrease in contingent consideration |
|
|
— |
|
|
|
(13.7 |
) |
|
|
— |
|
|
|
(13.7 |
) |
|
|
— |
|
|
|
(13.7 |
) |
|
|
— |
|
|
|
(13.7 |
) |
|
Corporate expense allocation |
|
|
16.3 |
|
|
|
24.6 |
|
|
|
(40.9 |
) |
|
|
— |
|
|
|
16.3 |
|
|
|
24.6 |
|
|
|
(40.9 |
) |
|
|
— |
|
|
Other (1) |
|
|
0.3 |
|
|
|
(1.2 |
) |
|
|
6.7 |
|
|
|
5.8 |
|
|
|
0.7 |
|
|
|
9.0 |
|
|
|
12.3 |
|
|
|
22.0 |
|
|
Adjusted
EBITDA |
|
$ |
17.1 |
|
|
$ |
30.0 |
|
|
$ |
(7.6 |
) |
|
$ |
39.5 |
|
|
$ |
74.6 |
|
|
$ |
134.6 |
|
|
$ |
(33.4 |
) |
|
$ |
175.8 |
|
|
Less Aveda Adjusted
EBITDA |
|
|
|
|
|
(0.1 |
) |
|
|
|
|
|
(0.1 |
) |
|
|
|
|
|
2.9 |
|
|
|
|
|
|
2.9 |
|
|
Adjusted EBITDA
ex-Aveda |
|
|
|
|
$ |
29.9 |
|
|
|
|
|
$ |
39.4 |
|
|
|
|
|
$ |
137.5 |
|
|
|
|
|
$ |
178.7 |
|
|
Total
revenue |
|
|
142.0 |
|
|
|
196.5 |
|
|
|
(2.9 |
) |
|
|
335.6 |
|
|
|
578.9 |
|
|
|
893.7 |
|
|
|
(18.5 |
) |
|
|
1,454.1 |
|
|
Total revenue
ex-Aveda |
|
|
|
|
|
196.5 |
|
|
|
|
|
|
335.6 |
|
|
|
|
|
|
842.0 |
|
|
|
|
|
|
1,402.4 |
|
|
Net income (loss)
margin |
|
|
(7.7 |
) |
% |
|
5.3 |
|
% |
|
(269.0 |
) |
% |
|
2.2 |
|
% |
|
0.7 |
|
% |
|
3.0 |
|
% |
|
133.0 |
|
% |
|
0.4 |
|
% |
Adjusted EBITDA
margin |
|
|
12.0 |
|
% |
|
15.3 |
|
% |
|
262.1 |
|
% |
|
11.8 |
|
% |
|
12.9 |
|
% |
|
15.1 |
|
% |
|
180.5 |
|
% |
|
12.1 |
|
% |
Adjusted EBITDA
ex-Aveda margin |
|
|
|
|
|
15.2 |
|
% |
|
|
|
|
11.7 |
|
% |
|
|
|
|
16.3 |
|
% |
|
|
|
|
12.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
includes business transformation costs, restructuring and
severance. |
|
|
|
Daseke, Inc. and Subsidiaries |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA
ex-Aveda by Segment |
|
Reconciliation of Net Income (Loss) Margin to Adjusted
EBITDA ex-Aveda Margin by Segment |
|
(Unaudited) |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, 2019 |
|
December 31, 2019 |
|
(Dollars in millions) |
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
|
Flatbed |
|
Specialized |
|
Corporate |
|
Consolidated |
|
Net income (loss) margin |
|
$ |
(12.6 |
) |
|
$ |
(25.3 |
) |
|
$ |
19.5 |
|
|
$ |
(18.4 |
) |
|
$ |
(106.1 |
) |
|
$ |
(177.4 |
) |
|
$ |
(23.9 |
) |
|
$ |
(307.4 |
) |
|
Depreciation and amortization |
|
|
9.2 |
|
|
|
17.6 |
|
|
|
0.2 |
|
|
|
27.0 |
|
|
|
51.9 |
|
|
|
93.9 |
|
|
|
0.7 |
|
|
|
146.5 |
|
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.8 |
) |
|
|
(1.0 |
) |
|
Interest expense |
|
|
2.5 |
|
|
|
3.1 |
|
|
|
6.6 |
|
|
|
12.2 |
|
|
|
10.6 |
|
|
|
12.9 |
|
|
|
26.9 |
|
|
|
50.4 |
|
|
Write-off of deferred financing fees |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
Income tax expense (benefit) |
|
|
(7.3 |
) |
|
|
(0.5 |
) |
|
|
13.6 |
|
|
|
5.8 |
|
|
|
(20.0 |
) |
|
|
(26.2 |
) |
|
|
(8.4 |
) |
|
|
(54.6 |
) |
|
Stock based compensation |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.9 |
|
|
|
0.7 |
|
|
|
1.6 |
|
|
|
1.5 |
|
|
|
3.8 |
|
|
Impairment |
|
|
3.5 |
|
|
|
2.5 |
|
|
|
— |
|
|
|
6.0 |
|
|
|
116.7 |
|
|
|
196.1 |
|
|
|
— |
|
|
|
312.8 |
|
|
Corporate expense allocation |
|
|
21.5 |
|
|
|
33.3 |
|
|
|
(54.8 |
) |
|
|
— |
|
|
|
21.5 |
|
|
|
33.3 |
|
|
|
(54.8 |
) |
|
|
— |
|
|
Other (1) |
|
|
0.8 |
|
|
|
0.4 |
|
|
|
3.2 |
|
|
|
4.4 |
|
|
|
1.8 |
|
|
|
4.6 |
|
|
|
11.7 |
|
|
|
18.1 |
|
|
Adjusted
EBITDA |
|
$ |
17.8 |
|
|
$ |
31.4 |
|
|
$ |
(11.3 |
) |
|
$ |
37.9 |
|
|
$ |
76.9 |
|
|
$ |
138.8 |
|
|
$ |
(44.8 |
) |
|
$ |
170.9 |
|
|
Less Aveda Adjusted
EBITDA |
|
|
|
|
|
(0.7 |
) |
|
|
|
|
|
(0.7 |
) |
|
|
|
|
|
(15.3 |
) |
|
|
|
|
|
(15.3 |
) |
|
Adjusted EBITDA
ex-Aveda |
|
|
|
|
$ |
30.7 |
|
|
|
|
|
$ |
37.2 |
|
|
|
|
|
$ |
123.5 |
|
|
|
|
|
$ |
155.6 |
|
|
Total
revenue |
|
|
150.3 |
|
|
|
257.4 |
|
|
|
(4.7 |
) |
|
|
403.0 |
|
|
|
663.0 |
|
|
|
1,095.7 |
|
|
|
(21.7 |
) |
|
|
1,737.0 |
|
|
Total revenue
ex-Aveda |
|
|
|
|
|
215.3 |
|
|
|
|
|
|
360.9 |
|
|
|
|
|
|
889.4 |
|
|
|
|
|
|
1,530.7 |
|
|
Net income (loss)
margin |
|
|
6.1 |
|
% |
|
6.8 |
|
% |
|
(4.3 |
) |
% |
|
6.7 |
|
% |
|
7.8 |
|
% |
|
8.6 |
|
% |
|
(3.2 |
) |
% |
|
8.4 |
|
% |
Adjusted EBITDA
margin |
|
|
11.8 |
|
% |
|
12.2 |
|
% |
|
240.4 |
|
% |
|
9.4 |
|
% |
|
11.6 |
|
% |
|
12.7 |
|
% |
|
206.5 |
|
% |
|
9.8 |
|
% |
Adjusted EBITDA
ex-Aveda margin |
|
|
|
|
|
14.3 |
|
% |
|
|
|
|
10.3 |
|
% |
|
|
|
|
13.9 |
|
% |
|
|
|
|
10.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
includes business transformation costs, restructuring and
severance. |
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Net Income (Loss) to Adjusted Net Income
ex-Aveda |
Reconciliation of Net Income (Loss) to Net Income (Loss)
ex-Aveda |
Reconciliation of Earnings Per Share to Adjusted Earnings
Per Share ex-Aveda |
(Unaudited) |
(In millions) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Dollars in millions, except share and per share
data) |
|
2020 |
|
2019 |
|
2020 |
|
|
2019 |
Net income (loss) |
|
$ |
7.3 |
|
|
|
(18.4 |
) |
|
|
6.2 |
|
|
|
(307.4 |
) |
Less Aveda Net income
(loss) |
|
|
13.1 |
|
|
|
(6.0 |
) |
|
|
(11.9 |
) |
|
|
(42.6 |
) |
Net income (loss)
ex-Aveda |
|
|
(5.8 |
) |
|
|
(12.4 |
) |
|
|
18.1 |
|
|
|
(264.8 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
|
(0.4 |
) |
|
|
5.8 |
|
|
|
(0.2 |
) |
|
|
(54.6 |
) |
Less Aveda Income tax expense
(benefit) |
|
|
(2.9 |
) |
|
|
(0.7 |
) |
|
|
(5.8 |
) |
|
|
(6.7 |
) |
Income tax expense
(benefit) ex-Aveda |
|
|
2.5 |
|
|
|
6.5 |
|
|
|
5.6 |
|
|
|
(47.9 |
) |
Income (loss) before
income taxes |
|
|
6.9 |
|
|
|
(12.6 |
) |
|
|
6.0 |
|
|
|
(362.0 |
) |
Income (loss) before
income taxes ex-Aveda |
|
|
(3.3 |
) |
|
|
(5.9 |
) |
|
|
23.7 |
|
|
|
(312.7 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
1.0 |
|
|
|
0.9 |
|
|
|
6.0 |
|
|
|
3.8 |
|
Impairment |
|
|
2.0 |
|
|
|
6.0 |
|
|
|
15.4 |
|
|
|
312.8 |
|
Impaired lease termination |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(2.5 |
) |
|
|
— |
|
Arbitrated decrease in contingent consideration |
|
|
(13.7 |
) |
|
|
— |
|
|
|
(13.7 |
) |
|
|
— |
|
Amortization of intangible assets |
|
|
1.7 |
|
|
|
1.9 |
|
|
|
7.2 |
|
|
|
14.3 |
|
Net impact of step-up in basis of acquired assets |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
18.1 |
|
Other (1) |
|
|
5.8 |
|
|
|
4.4 |
|
|
|
22.0 |
|
|
|
18.1 |
|
Adjusted income (loss) before income taxes |
|
|
3.6 |
|
|
|
0.5 |
|
|
|
40.4 |
|
|
|
5.1 |
|
Less Aveda adjustments |
|
|
(15.1 |
) |
|
|
— |
|
|
|
6.4 |
|
|
|
45.2 |
|
Adjusted income (loss) before income taxes
ex-Aveda |
|
|
8.5 |
|
|
|
7.2 |
|
|
|
51.7 |
|
|
|
9.2 |
|
Income tax (expense) benefit at adjusted effective rate |
|
|
0.7 |
|
|
|
(1.9 |
) |
|
|
(12.1 |
) |
|
|
0.2 |
|
Adjusted Net Income
ex-Aveda |
|
$ |
9.2 |
|
|
$ |
5.3 |
|
|
$ |
39.6 |
|
|
$ |
9.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
7.3 |
|
|
$ |
(18.4 |
) |
|
$ |
6.2 |
|
|
$ |
(307.4 |
) |
Less Series A preferred dividends |
|
|
(1.2 |
) |
|
|
(1.3 |
) |
|
|
(4.9 |
) |
|
|
(5.0 |
) |
Net income (loss) attributable to common stockholders |
|
|
6.1 |
|
|
|
(19.7 |
) |
|
|
1.3 |
|
|
|
(312.4 |
) |
Allocation of earnings to non-vested participating restricted stock
units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Numerator for basic
EPS - income (loss) available to common stockholders - two class
method |
|
$ |
6.1 |
|
|
$ |
(19.7 |
) |
|
$ |
1.3 |
|
|
$ |
(312.4 |
) |
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Add back Series A preferred dividends |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Add back allocation earnings to participating securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Reallocation of earnings to participating securities considering
potentially dilutive securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Numerator for diluted
EPS - income (loss) available to common shareholders - two class
method |
|
$ |
6.1 |
|
|
$ |
(19.7 |
) |
|
$ |
1.3 |
|
|
$ |
(312.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
includes business transformation costs, restructuring and
severance. |
|
Daseke, Inc. and Subsidiaries |
Reconciliation of Earnings Per Share to Adjusted Earnings
Per Share ex-Aveda (continued) |
(Unaudited) |
(In millions) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Dollars in millions, except share and per share
data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Adjusted Net Income ex-Aveda |
|
$ |
9.2 |
|
|
$ |
5.3 |
|
|
$ |
39.6 |
|
|
$ |
9.4 |
|
Less Series A preferred dividends |
|
|
(1.2 |
) |
|
|
(1.3 |
) |
|
|
(4.9 |
) |
|
|
(5.0 |
) |
Allocation of earnings to non-vested participating restricted stock
units |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
Numerator for basic
EPS - adjusted income available to common shareholders ex-Aveda -
two class method |
|
$ |
7.9 |
|
|
$ |
3.9 |
|
|
$ |
34.2 |
|
|
$ |
4.3 |
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Add back Series A preferred dividends |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Add back allocation earnings to participating securities |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.1 |
|
Reallocation of earnings to participating securities considering
potentially dilutive securities |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.1 |
) |
Numerator for diluted
EPS - adjusted income available to common shareholders ex-Aveda -
two class method |
|
$ |
7.9 |
|
|
$ |
3.9 |
|
|
$ |
34.2 |
|
|
$ |
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders |
|
$ |
0.09 |
|
|
$ |
(0.31 |
) |
|
$ |
0.02 |
|
|
$ |
(4.86 |
) |
Adjusted net income
attributable to common stockholders ex-Aveda |
|
$ |
0.12 |
|
|
$ |
0.06 |
|
|
$ |
0.53 |
|
|
$ |
0.07 |
|
Diluted
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders |
|
$ |
0.09 |
|
|
$ |
(0.31 |
) |
|
$ |
0.02 |
|
|
$ |
(4.86 |
) |
Adjusted net income
attributable to common stockholders ex-Aveda |
|
$ |
0.12 |
|
|
$ |
0.06 |
|
|
$ |
0.52 |
|
|
$ |
0.07 |
|
Weighted-average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
65,023,174 |
|
|
64,589,075 |
|
|
64,775,275 |
|
|
64,303,438 |
|
Diluted |
|
66,149,361 |
|
|
64,589,075 |
|
|
65,671,246 |
|
|
64,303,438 |
|
Basic - adjusted ex-Aveda |
|
65,023,174 |
|
|
64,589,075 |
|
|
64,775,275 |
|
|
64,303,438 |
|
Diluted - adjusted ex-Aveda |
|
66,149,361 |
|
|
64,648,469 |
|
|
65,671,246 |
|
|
64,362,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daseke (NASDAQ:DSKE)
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