Reports second
quarter records for revenue, net income, adjusted EBITDA,
cash flow from operations and free cash flow
Grows net income by 178% and adjusted EBITDA by 18%
year-over-year
Closes $2.1 billion of new business in the first six
months
GREENWICH, Conn. - August 1, 2018
- XPO Logistics, Inc. (NYSE: XPO) today announced financial
results for the second quarter 2018. Revenue increased 16.0%
year-over-year to $4.36 billion. Net income attributable to common
shareholders was $137.5 million for the quarter, compared with net
income attributable to common shareholders of $47.6 million for the
same period in 2017. Earnings per diluted share was $1.03 for the
quarter, compared with $0.38 for the same period in 2017.
Adjusted net income attributable to common
shareholders, a non-GAAP financial measure, was $131.8 million for
the quarter, compared with $75.0 million for the same period in
2017. Adjusted earnings per diluted share, a non-GAAP financial
measure, was $0.98 for the quarter, compared with $0.60 for the
same period in 2017. Adjusted net income attributable to common
shareholders and adjusted earnings per diluted share for the second
quarter 2018 exclude: a $15.7 million benefit, or $11.5 million
after-tax, of non-cash unrealized gains on foreign currency
contracts; and $7.8 million, or $5.8 million after-tax, of
integration and rebranding costs. Reconciliations of non-GAAP
financial measures used in this release are provided in the
attached financial tables.
Adjusted earnings before interest, taxes,
depreciation and amortization ("adjusted EBITDA"), a non-GAAP
financial measure, increased to $436.7 million for the second
quarter 2018, excluding integration and rebranding costs of $7.8
million. This compared with $370.8 million of adjusted EBITDA for
the same period in 2017.
For the second quarter 2018, the company generated
$267.4 million of cash flow from operations and $192.9 million of
free cash flow.
Reaffirms Financial
Targets
The company reaffirmed its full year 2018 target
for adjusted EBITDA of at least $1.6 billion, and 2017-2018 target
for cumulative free cash flow of approximately $1 billion.
CEO Comments
Bradley Jacobs, chairman and chief executive
officer of XPO Logistics, said, "Our strong second quarter
performance was highlighted by record results for revenue, net
income, adjusted EBITDA, cash flow from operations and free cash
flow. We grew profitability faster than revenue, with a 178%
increase in net income and an 18% increase in adjusted EBITDA on
organic revenue growth of 11%.
"In logistics, we implemented a record 37 customer
start-ups in three months - and once again, the big driver was
e-commerce. In transportation, we increased freight brokerage net
revenue by 46% with a lower headcount. North American last mile and
European transport were also standouts. In our North American
less-than-truckload business, we achieved the best adjusted
operating ratio in 30 years at 84.3%."
Jacobs continued, "Our expanded sales force signed
$2.1 billion of new business this year through June. We have
innovations underway in every corner of the company. They include
the ramp-up of our XPO Direct distribution network, the build-out
of our digital freight marketplace, the expansion of our last mile
footprint, and the deployment of dynamic analytics for workforce
planning. These are secular growth drivers that create sustainable
value for our customers and shareholders."
Second Quarter 2018 Results by
Segment
- Transportation: The
company's transportation segment generated revenue of $2.89
billion for the quarter, a 14.5% increase from the same period
in 2017. Segment revenue growth was led by increases in freight
brokerage and last mile in North America, as well as dedicated
truckload transportation in the UK and France. A revenue benefit of
2.2% came from favorable foreign exchange rates.
Operating income for the transportation segment
increased to $205.4 million in the quarter, compared with $165.0
million for the same period in 2017. Adjusted EBITDA for the
segment improved to $335.1 million, an increase of 13.7% from a
year ago. The increases in operating income and adjusted EBITDA
primarily were due to revenue growth and were broad-based across
the segment, led by improved profitability in freight brokerage and
last mile in North America, and dedicated truckload and
less-than-truckload in Europe. Within the North American
less-than-truckload unit, the operating ratio was 85.9%. The
adjusted operating ratio was 84.3%, an improvement from 84.6% for
the same period in 2017.
- Logistics: The company's
logistics segment generated revenue of $1.51 billion for
the quarter, a 19.1% increase from the same period in 2017. Segment
revenue growth was led by growing demand for e-commerce logistics
globally, as well as by the consumer packaged goods and technology
sectors in North America and the fashion sector in Europe. A
revenue benefit of 4.7% came from favorable foreign exchange
rates.
Operating income for the logistics segment
increased to $67.3 million, compared with $49.4 million for the
same period in 2017. Adjusted EBITDA for the segment improved to
$134.0 million, an increase of 20.6% from a year ago. The increases
in operating income and adjusted EBITDA primarily were due to
revenue growth and site productivity improvements, partially offset
by higher direct operating costs related to a record number of
quarterly contract startups: 19 in North America and 18 in
Europe.
Six Months 2018 Financial
Results
For the six months ended June 30, 2018, the
company reported total revenue of $8.56 billion, a 17.2% increase
from the same period in 2017. Net income attributable to common
shareholders was $204.4 million for the first six months of 2018,
compared with $67.1 million for the same period in 2017. Earnings
per diluted share was $1.53 for the first six months of 2018,
compared with $0.54 for the same period in 2017.
Adjusted net income attributable to common
shareholders, a non-GAAP measure, was $212.7 million for the first
six months of 2018, compared with $112.6 million for the same
period in 2017. Adjusted earnings per diluted share, a non-GAAP
financial measure, was $1.59 for the first six months of 2018,
compared with $0.90 for the same period in 2017. Adjusted net
income attributable to common shareholders and adjusted earnings
per diluted share for the first six months of 2018 exclude $15.0
million, or $11.0 million after-tax, of integration and rebranding
costs; a benefit of $12.2 million, or $9.0 million after-tax, from
non-cash unrealized gains on foreign currency contracts; and $10.3
million, or $7.5 million after-tax, of debt extinguishment costs
related to the refinancing of an existing term loan.
Adjusted EBITDA for the first six months of 2018,
a non-GAAP measure, improved to $766.9 million, compared with
$660.8 million for the same period in 2017. Adjusted EBITDA for the
first six months of 2018 excludes $15.0 million of integration and
rebranding costs.
Conference Call
The company will hold a conference call on
Thursday, August 2, 2018, at 8:30 a.m. Eastern Time. Participants
can call toll-free (from U.S./Canada) 1-877-269-7756; international
callers dial +1-201-689-7817. A live webcast of the conference will
be available on the investor relations area of the company's
website, www.xpo.com/investors. The conference will be archived
until September 2, 2018. To access the replay by phone, call
toll-free (from U.S./Canada) 1-877-660-6853; international callers
dial +1-201-612-7415. Use participant passcode 13681035.
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 32 countries, with 1,505 locations and more than 97,000
employees. XPO uses its network to help more than 50,000 customers
manage their goods more efficiently throughout their supply chains.
XPO's corporate headquarters is in Greenwich, Conn., USA, and its
European headquarters is in Lyon, France. www.xpo.com
Non-GAAP Financial
Measures
As required by the rules of the Securities and
Exchange Commission ("SEC"), we provide reconciliations of the
non-GAAP financial measures contained in this press release to the
most directly comparable measure under GAAP, which are set forth in
the financial tables attached to this document. This document
contains the following non-GAAP financial measures: earnings before
interest, taxes, depreciation and amortization ("EBITDA") and
adjusted EBITDA for the three and six-month periods ended June 30,
2018 and 2017, on a consolidated basis and for our transportation
and logistics segments; free cash flow for the three and six-month
periods ended June 30, 2018 and 2017; adjusted net income
attributable to common shareholders and adjusted earnings per share
(basic and diluted) ("adjusted EPS") for the three and six-month
periods ended June 30, 2018 and 2017; net revenue for the three and
six-month periods ended June 30, 2018 and 2017 for our
transportation and logistics segments and corporate and
intersegment eliminations; adjusted operating income for our North
American less-than-truckload business for the three and six-month
periods ended June 30, 2018 and 2017; and organic revenue for the
three-month periods ended June 30, 2018 and 2017, on a consolidated
basis.
We believe that the above adjusted financial
measures facilitate 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. Other
companies may calculate these non-GAAP financial measures
differently, and therefore our measures may not be comparable to
similarly titled measures of other companies. Items excluded from
such non-GAAP financial measures are significant and necessary
components of the operations of our business, and, therefore, such
measures should only be used as supplemental measures of our
operating performance.
Adjusted EBITDA, adjusted net income attributable
to common shareholders and adjusted EPS include adjustments for
acquisition costs and related integration, transformation and
rebranding initiatives. Transaction and integration adjustments are
generally incremental costs that result from an actual or planned
acquisition and include transaction costs, restructuring costs,
acquisition and integration consulting fees, internal salaries and
wages (to the extent the individuals are assigned full-time to
integration and transformation activities) and certain costs
related to integrating and converging IT systems. Rebranding
adjustments primarily relate to the rebranding of the XPO Logistics
name on our truck fleet and buildings. Management uses these
non-GAAP financial measures in making financial, operating and
planning decisions and evaluating XPO's and each business segment's
ongoing performance.
We believe that free cash flow is an important
measure of our ability to repay maturing debt or fund other uses of
capital that we believe will enhance stockholder value. We believe
that EBITDA and adjusted EBITDA improve comparability from period
to period by removing the impact of our capital structure (interest
and financing expenses), asset base (depreciation and
amortization), tax impacts and other adjustments as set out in the
attached tables that management has determined are not reflective
of normalized operating activities.
We believe that adjusted net income attributable
to common shareholders and adjusted EPS improve the comparability
of our operating results from period to period by removing the
impact of certain costs and gains that management has determined
are not reflective of our core operating activities. We
believe that net revenue improves the comparability of our
operating results from period to period by removing the cost of
transportation and services, in particular the cost of fuel,
incurred in the reporting period as set out in the attached tables.
We believe that adjusted operating income for our North American
less-than-truckload business improves the comparability of our
operating results from period to period by removing the impact of
certain transaction, integration and rebranding costs and
amortization and depreciation expenses incurred in the reporting
period as set out in the attached tables. We believe that organic
revenue is an important measure because it excludes the impact of
the following items: foreign currency exchange rate fluctuations
and fuel surcharges.
With respect to our 2018 financial target of
adjusted EBITDA and our 2017-2018 cumulative target for free cash
flow, each of which is a non-GAAP measure, a reconciliation of the
non-GAAP measure to the corresponding GAAP measure is not available
without unreasonable effort due to the variability and complexity
of the reconciling items described below that we exclude from the
non-GAAP target measure. The variability of these items may have a
significant impact on our future GAAP financial results and, as a
result, we are unable to prepare the forward-looking balance sheet,
statement of income and statement of cash flow, prepared in
accordance with GAAP that would be required to produce such a
reconciliation.
Forward-looking
Statements
This document 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
financial targets for our consolidated
adjusted EBITDA and free cash flow. 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 SEC 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 and
prevent failures in or breaches of such 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
document 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 document 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
XPO
Logistics, Inc. |
Condensed
Consolidated Statements of Operations |
(Unaudited) |
(In millions,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
June 30, |
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
4,363.5 |
|
$ |
3,760.3 |
|
$ |
8,555.0 |
|
$ |
7,299.8 |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Cost of transportation and services |
|
2,274.5 |
|
|
1,970.4 |
|
|
4,499.1 |
|
|
3,858.4 |
Direct operating expense |
|
1,406.7 |
|
|
1,202.7 |
|
|
2,782.4 |
|
|
2,348.7 |
Sales, general and administrative expense |
|
454.3 |
|
|
412.1 |
|
|
904.5 |
|
|
813.8 |
Total operating expenses |
|
4,135.5 |
|
|
3,585.2 |
|
|
8,186.0 |
|
|
7,020.9 |
Operating income |
|
228.0 |
|
|
175.1 |
|
|
369.0 |
|
|
278.9 |
Other expense (income) |
|
(30.2) |
|
|
(12.5) |
|
|
(49.8) |
|
|
(19.0) |
Foreign currency (gain) loss |
|
(10.0) |
|
|
28.3 |
|
|
2.0 |
|
|
38.9 |
Debt extinguishment loss |
|
- |
|
|
- |
|
|
10.3 |
|
|
9.0 |
Interest expense |
|
54.9 |
|
|
74.3 |
|
|
114.3 |
|
|
149.9 |
Income before income tax provision |
|
213.3 |
|
|
85.0 |
|
|
292.2 |
|
|
100.1 |
Income tax provision |
|
54.2 |
|
|
27.8 |
|
|
54.0 |
|
|
18.0 |
Net income |
|
159.1 |
|
|
57.2 |
|
|
238.2 |
|
|
82.1 |
Net income attributable to noncontrolling interests |
|
(10.1) |
|
|
(5.3) |
|
|
(16.6) |
|
|
(8.9) |
Net income attributable to XPO |
$ |
149.0 |
|
$ |
51.9 |
|
$ |
221.6 |
|
$ |
73.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders *
[1] |
$ |
137.5 |
|
$ |
47.6 |
|
$ |
204.4 |
|
$ |
67.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share [1] |
$ |
1.14 |
|
$ |
0.43 |
|
$ |
1.70 |
|
$ |
0.60 |
Diluted earnings per share [1] |
$ |
1.03 |
|
$ |
0.38 |
|
$ |
1.53 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
120.7 |
|
|
111.8 |
|
|
120.4 |
|
|
111.6 |
Diluted weighted-average common shares outstanding |
|
134.1 |
|
|
124.7 |
|
|
133.7 |
|
|
124.6 |
|
|
|
|
|
|
|
|
|
|
|
|
* Net income attributable to common shareholders reflects
the following items: |
|
|
|
|
|
|
|
|
|
|
Non-cash allocation of undistributed earnings |
$ |
10.8 |
|
$ |
3.6 |
|
$ |
15.8 |
|
$ |
4.7 |
Preferred dividends |
|
0.7 |
|
|
0.7 |
|
|
1.4 |
|
|
1.4 |
[1] The sum of quarterly net income attributable
to common shareholders and earnings per share may not equal
year-to-date amounts due to differences in the weighted-average
number of shares outstanding during the respective periods and the
impact of the two-class method of calculating earnings per
share.
XPO
Logistics, Inc. |
Condensed
Consolidated Balance Sheets |
(Unaudited) |
(In millions,
except per share data) |
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
2018 |
|
2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
361.4 |
|
$ |
396.9 |
Accounts receivable, net of allowances of $45.9 and $42.4,
respectively |
|
2,855.9 |
|
|
2,725.3 |
Other current assets |
|
496.0 |
|
|
465.7 |
Total current assets |
|
3,713.3 |
|
|
3,587.9 |
|
|
|
|
|
|
Property and equipment, net of $1,334.1 and $1,109.5 in accumulated
depreciation, respectively |
|
2,692.1 |
|
|
2,663.7 |
Goodwill |
|
4,505.9 |
|
|
4,563.6 |
Identifiable intangible assets, net of $632.7 and $559.5 in
accumulated amortization, respectively |
|
1,340.5 |
|
|
1,435.3 |
Other long-term assets |
|
367.9 |
|
|
351.1 |
Total long-term assets |
|
8,906.4 |
|
|
9,013.7 |
Total assets |
$ |
12,619.7 |
|
$ |
12,601.6 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,209.2 |
|
$ |
1,250.7 |
Accrued expenses |
|
1,501.8 |
|
|
1,525.8 |
Current maturities of long-term debt |
|
84.9 |
|
|
103.7 |
Other current liabilities |
|
144.2 |
|
|
116.9 |
Total current liabilities |
|
2,940.1 |
|
|
2,997.1 |
|
|
|
|
|
|
Long-term debt |
|
4,406.1 |
|
|
4,417.5 |
Deferred tax liability |
|
422.8 |
|
|
418.8 |
Employee benefit obligations |
|
159.5 |
|
|
162.1 |
Other long-term liabilities |
|
551.5 |
|
|
596.1 |
Total long-term liabilities |
|
5,539.9 |
|
|
5,594.5 |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Convertible perpetual preferred stock, $0.001 par value; 10.0
shares authorized; 0.07 of Series A |
|
|
|
|
|
shares issued and outstanding at June 30, 2018 and December 31,
2017, respectively |
|
41.0 |
|
|
41.2 |
Common stock, $0.001 par value; 300.0 shares authorized; 120.8 and
119.9 shares issued |
|
|
|
|
|
and outstanding at June 30, 2018 and December 31, 2017,
respectively |
|
0.1 |
|
|
0.1 |
Additional paid-in capital |
|
3,561.8 |
|
|
3,590.0 |
Retained earnings (accumulated deficit) |
|
177.9 |
|
|
(42.6) |
Accumulated other comprehensive (loss) income |
|
(48.8) |
|
|
15.7 |
Total stockholders' equity before
noncontrolling interests |
|
3,732.0 |
|
|
3,604.4 |
Noncontrolling interests |
|
407.7 |
|
|
405.6 |
Total equity |
|
4,139.7 |
|
|
4,010.0 |
Total liabilities and equity |
$ |
12,619.7 |
|
$ |
12,601.6 |
XPO
Logistics, Inc. |
Condensed
Consolidated Statements of Cash Flows |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
|
June 30, |
|
|
|
2018 |
|
|
2017 |
Operating activities |
|
|
|
|
|
Net income |
$ |
238.2 |
|
$ |
82.1 |
Adjustments to reconcile net income to
net cash from operating activities |
|
|
|
|
|
|
Depreciation and amortization |
|
347.3 |
|
|
321.8 |
|
Stock
compensation expense |
|
45.2 |
|
|
33.5 |
|
Accretion of debt |
|
7.7 |
|
|
9.7 |
|
Deferred tax expense (benefit) |
|
8.1 |
|
|
(11.0) |
|
Loss
on extinguishment of debt |
|
10.3 |
|
|
9.0 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(12.2) |
|
|
40.4 |
|
Other |
|
(43.7) |
|
|
5.5 |
Changes in assets and
liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
(178.7) |
|
|
(112.5) |
|
Other
assets |
|
(102.8) |
|
|
(36.8) |
|
Accounts payable |
|
(44.2) |
|
|
(11.6) |
|
Accrued expenses and other liabilities |
|
(27.2) |
|
|
(104.2) |
Net cash provided by operating
activities |
|
248.0 |
|
|
225.9 |
Investing activities |
|
|
|
|
|
|
Payment for purchases of property and equipment |
|
(267.7) |
|
|
(262.0) |
|
Proceeds from sale of assets |
|
61.5 |
|
|
42.2 |
|
Other |
|
10.4 |
|
|
- |
Net cash used by investing
activities |
|
(195.8) |
|
|
(219.8) |
Financing activities |
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
893.6 |
|
|
523.5 |
|
Repurchase of debt |
|
(812.4) |
|
|
(511.4) |
|
Proceeds from borrowings on ABL facility |
|
680.0 |
|
|
320.0 |
|
Repayment of borrowings on ABL facility |
|
(780.0) |
|
|
(350.0) |
|
Repayment of long-term debt and capital leases |
|
(59.4) |
|
|
(60.3) |
|
Payment for debt issuance costs |
|
(6.4) |
|
|
(8.9) |
|
Change
in bank overdrafts |
|
8.4 |
|
|
3.4 |
|
Payment for tax withholdings for restricted shares |
|
(45.5) |
|
|
(14.2) |
|
Dividends paid |
|
(1.6) |
|
|
(1.7) |
|
Other |
|
4.0 |
|
|
1.1 |
Net cash used by financing
activities |
|
(119.3) |
|
|
(98.5) |
Effect of exchange rates on cash, cash equivalents and
restricted cash |
|
(7.3) |
|
|
5.7 |
Net decrease in cash, cash equivalents
and restricted cash |
|
(74.4) |
|
|
(86.7) |
Cash, cash equivalents and restricted
cash, beginning of period * |
|
449.0 |
|
|
399.8 |
Cash, cash equivalents and restricted
cash, end of period * |
$ |
374.6 |
|
$ |
313.1 |
* In connection with the adoption of Accounting
Standards Update 2016-18, the Company is required to reconcile to
cash, cash equivalents and restricted cash in its cash flow
statement. Restricted cash was $13.2 million, $52.1 million, $21.7
million and $26.4 million at June 30, 2018, December 31, 2017, June
30, 2017 and December 31, 2016, respectively. Prior period has been
restated to reflect current period presentation.
Transportation |
Summary
Financial Table |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,887.7 |
|
$ |
2,522.7 |
|
$ |
365.0 |
|
14.5% |
|
$ |
5,661.8 |
|
$ |
4,914.5 |
|
$ |
747.3 |
|
15.2% |
Cost of transportation and services |
|
2,068.3 |
|
|
1,791.6 |
|
|
276.7 |
|
15.4% |
|
|
4,095.4 |
|
|
3,518.8 |
|
|
576.6 |
|
16.4% |
Net revenue [a] |
|
819.4 |
|
|
731.1 |
|
|
88.3 |
|
12.1% |
|
|
1,566.4 |
|
|
1,395.7 |
|
|
170.7 |
|
12.2% |
Direct operating expense |
|
339.8 |
|
|
311.9 |
|
|
27.9 |
|
8.9% |
|
|
675.9 |
|
|
621.6 |
|
|
54.3 |
|
8.7% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
152.9 |
|
|
133.4 |
|
|
19.5 |
|
14.6% |
|
|
307.4 |
|
|
265.7 |
|
|
41.7 |
|
15.7% |
Other sales, general and administrative expense |
|
39.6 |
|
|
46.4 |
|
|
(6.8) |
|
-14.7% |
|
|
83.0 |
|
|
89.2 |
|
|
(6.2) |
|
-7.0% |
Purchased services |
|
37.6 |
|
|
30.9 |
|
|
6.7 |
|
21.7% |
|
|
68.6 |
|
|
63.3 |
|
|
5.3 |
|
8.4% |
Depreciation and amortization |
|
44.1 |
|
|
43.5 |
|
|
0.6 |
|
1.4% |
|
|
87.1 |
|
|
85.6 |
|
|
1.5 |
|
1.8% |
Total sales, general and administrative
expense |
|
274.2 |
|
|
254.2 |
|
|
20.0 |
|
7.9% |
|
|
546.1 |
|
|
503.8 |
|
|
42.3 |
|
8.4% |
Operating income |
$ |
205.4 |
|
$ |
165.0 |
|
$ |
40.4 |
|
24.5% |
|
$ |
344.4 |
|
$ |
270.3 |
|
$ |
74.1 |
|
27.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) [b] |
|
10.4 |
|
|
5.0 |
|
|
5.4 |
|
108.0% |
|
|
20.9 |
|
|
10.0 |
|
|
10.9 |
|
109.0% |
Total depreciation and amortization |
|
116.0 |
|
|
113.3 |
|
|
2.7 |
|
2.4% |
|
|
229.9 |
|
|
221.5 |
|
|
8.4 |
|
3.8% |
EBITDA [a] |
$ |
331.8 |
|
$ |
283.3 |
|
$ |
48.5 |
|
17.1% |
|
$ |
595.2 |
|
$ |
501.8 |
|
$ |
93.4 |
|
18.6% |
Transaction and integration costs |
|
1.8 |
|
|
5.8 |
|
|
(4.0) |
|
-69.0% |
|
|
4.0 |
|
|
10.4 |
|
|
(6.4) |
|
-61.5% |
Rebranding costs |
|
1.5 |
|
|
5.5 |
|
|
(4.0) |
|
-72.7% |
|
|
1.5 |
|
|
16.2 |
|
|
(14.7) |
|
-90.7% |
Adjusted EBITDA [a] * |
$ |
335.1 |
|
$ |
294.6 |
|
$ |
40.5 |
|
13.7% |
|
$ |
600.7 |
|
$ |
528.4 |
|
$ |
72.3 |
|
13.7% |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
[b] Other income (expense) consists of pension
income and is included in Other expense (income) on the Condensed
Consolidated Statement of Operations.
* For purposes of the summary financial table,
adjusted EBITDA is reconciled to operating income and excludes
gains and losses below operating income in the Condensed
Consolidated Statements of Operations.
Transportation |
Key Data by
Service Offering |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
728.6 |
|
$ |
572.3 |
|
$ |
1,438.8 |
|
$ |
1,120.3 |
Less-Than-Truckload |
|
988.5 |
|
|
946.1 |
|
|
1,908.5 |
|
|
1,825.3 |
Last Mile |
|
268.5 |
|
|
230.4 |
|
|
506.9 |
|
|
437.4 |
Managed Transport |
|
114.3 |
|
|
129.4 |
|
|
251.2 |
|
|
254.0 |
Total North America |
|
2,099.9 |
|
|
1,878.2 |
|
|
4,105.4 |
|
|
3,637.0 |
Europe |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage and Truckload |
|
481.8 |
|
|
402.0 |
|
|
951.1 |
|
|
789.0 |
Less-Than-Truckload |
|
258.3 |
|
|
212.7 |
|
|
511.0 |
|
|
424.8 |
Total Europe |
|
740.1 |
|
|
614.7 |
|
|
1,462.1 |
|
|
1,213.8 |
Global Forwarding |
|
85.6 |
|
|
72.5 |
|
|
167.3 |
|
|
144.1 |
Eliminations |
|
(37.9) |
|
|
(42.7) |
|
|
(73.0) |
|
|
(80.4) |
Total Revenue |
$ |
2,887.7 |
|
$ |
2,522.7 |
|
$ |
5,661.8 |
|
$ |
4,914.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
122.2 |
|
$ |
83.8 |
|
$ |
238.0 |
|
$ |
169.7 |
Less-Than-Truckload |
|
407.4 |
|
|
394.4 |
|
|
764.8 |
|
|
732.5 |
Last Mile |
|
81.4 |
|
|
69.6 |
|
|
150.0 |
|
|
131.1 |
Managed Transport |
|
25.2 |
|
|
28.4 |
|
|
51.7 |
|
|
57.7 |
Total North America |
|
636.2 |
|
|
576.2 |
|
|
1,204.5 |
|
|
1,091.0 |
Europe |
|
168.2 |
|
|
142.4 |
|
|
332.9 |
|
|
279.9 |
Global Forwarding |
|
15.0 |
|
|
12.5 |
|
|
29.0 |
|
|
24.8 |
Total Net Revenue [a] |
$ |
819.4 |
|
$ |
731.1 |
|
$ |
1,566.4 |
|
$ |
1,395.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue % |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
|
16.8% |
|
|
14.6% |
|
|
16.5% |
|
|
15.1% |
Less-Than-Truckload |
|
41.2% |
|
|
41.7% |
|
|
40.1% |
|
|
40.1% |
Last Mile |
|
30.3% |
|
|
30.2% |
|
|
29.6% |
|
|
30.0% |
Managed Transport |
|
22.0% |
|
|
21.9% |
|
|
20.6% |
|
|
22.7% |
Total North America |
|
30.3% |
|
|
30.7% |
|
|
29.3% |
|
|
30.0% |
Europe |
|
22.7% |
|
|
23.2% |
|
|
22.8% |
|
|
23.1% |
Global Forwarding |
|
17.5% |
|
|
17.2% |
|
|
17.3% |
|
|
17.2% |
Overall Net Revenue % |
|
28.4% |
|
|
29.0% |
|
|
27.7% |
|
|
28.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Direct Operating Expense |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
23.2 |
|
$ |
22.1 |
|
$ |
46.6 |
|
$ |
43.6 |
Less-Than-Truckload |
|
169.5 |
|
|
170.2 |
|
|
337.7 |
|
|
339.1 |
Last Mile |
|
20.4 |
|
|
15.1 |
|
|
41.0 |
|
|
30.2 |
Managed Transport |
|
17.5 |
|
|
14.5 |
|
|
37.8 |
|
|
30.3 |
Total North America |
|
230.6 |
|
|
221.9 |
|
|
463.1 |
|
|
443.2 |
Europe |
|
105.6 |
|
|
86.9 |
|
|
205.9 |
|
|
171.4 |
Global Forwarding |
|
3.6 |
|
|
3.1 |
|
|
6.9 |
|
|
7.0 |
Total Direct Operating Expense |
$ |
339.8 |
|
$ |
311.9 |
|
$ |
675.9 |
|
$ |
621.6 |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
Less-Than-Truckload revenue is before intercompany
eliminations and includes revenue from the Company's trailer
manufacturing business.
Truckload revenue is before intercompany
eliminations.
XPO Logistics
North American Less-Than-Truckload |
Summary Data
Table |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
2018 |
|
2017 |
|
|
|
|
|
|
Number
of Working Days |
|
64.0 |
|
|
63.5 |
|
|
|
|
|
|
Lbs.
per Day (Thousands) |
|
78,178 |
|
|
78,646 |
|
|
|
|
|
|
%
Change in Lbs. per Day* |
|
-0.6% |
|
|
7.1% |
|
|
|
|
|
|
Shipments per Day |
|
53,356 |
|
|
56,926 |
|
|
|
|
|
|
%
Change in Shipments per Day* |
|
-6.3% |
|
|
3.2% |
|
|
|
|
|
|
Avg.
Weight per Shipment (in pounds) |
|
1,465 |
|
|
1,382 |
|
|
|
|
|
|
%
Change in Weight per Shipment* |
|
6.1% |
|
|
3.8% |
|
|
|
|
|
|
Gross
Revenue per Shipment |
$ |
297.11 |
|
$ |
267.32 |
|
|
|
|
|
|
Gross
Revenue per Hundred Weight (including fuel surcharges) |
$ |
20.28 |
|
$ |
19.35 |
|
|
|
|
|
|
Gross
Revenue per Hundred Weight (excluding fuel surcharges) |
$ |
17.43 |
|
$ |
17.09 |
|
|
|
|
|
|
%
Change in Gross Revenue per Hundred Weight* |
|
|
|
|
|
Including fuel surcharges |
|
4.8% |
|
|
1.1% |
Excluding fuel surcharges |
|
2.0% |
|
|
-0.3% |
|
|
|
|
|
|
Average Length of Haul (in Miles) |
|
797.2 |
|
|
803.8 |
|
|
|
|
|
|
Total
Average Load Factor** |
|
23,433 |
|
|
23,043 |
|
|
|
|
|
|
Average Age of Tractor Fleet (Years) |
|
5.68 |
|
|
5.42 |
*Compared with the same quarter of the previous
year.
**Total Average Load Factor equals freight pound
miles divided by total linehaul miles.
XPO Logistics
North American Less-Than-Truckload |
Adjusted
Operating Ratio |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge revenue) |
$ |
833.9 |
|
$ |
821.2 |
|
$ |
12.7 |
|
1.5% |
|
$ |
1,612.5 |
|
$ |
1,584.0 |
|
$ |
28.5 |
|
1.8% |
Fuel
surcharge revenue |
|
142.6 |
|
|
112.9 |
|
|
29.7 |
|
26.3% |
|
|
271.2 |
|
|
219.3 |
|
|
51.9 |
|
23.7% |
Revenue |
|
976.5 |
|
|
934.1 |
|
|
42.4 |
|
4.5% |
|
|
1,883.7 |
|
|
1,803.3 |
|
|
80.4 |
|
4.5% |
Salaries, wages and employee benefits |
|
440.4 |
|
|
431.2 |
|
|
9.2 |
|
2.1% |
|
|
869.7 |
|
|
846.0 |
|
|
23.7 |
|
2.8% |
Purchased transportation |
|
98.7 |
|
|
109.5 |
|
|
(10.8) |
|
-9.9% |
|
|
196.2 |
|
|
216.0 |
|
|
(19.8) |
|
-9.2% |
Fuel
and fuel-related taxes |
|
74.8 |
|
|
55.5 |
|
|
19.3 |
|
34.8% |
|
|
142.6 |
|
|
113.3 |
|
|
29.3 |
|
25.9% |
Depreciation and amortization |
|
62.0 |
|
|
60.5 |
|
|
1.5 |
|
2.5% |
|
|
120.6 |
|
|
117.3 |
|
|
3.3 |
|
2.8% |
Other
operating expenses |
|
123.1 |
|
|
109.7 |
|
|
13.4 |
|
12.2% |
|
|
242.0 |
|
|
223.9 |
|
|
18.1 |
|
8.1% |
Maintenance |
|
25.5 |
|
|
26.7 |
|
|
(1.2) |
|
-4.5% |
|
|
51.2 |
|
|
56.6 |
|
|
(5.4) |
|
-9.5% |
Rents
and leases |
|
11.2 |
|
|
10.2 |
|
|
1.0 |
|
9.8% |
|
|
22.4 |
|
|
21.1 |
|
|
1.3 |
|
6.2% |
Purchased labor |
|
3.2 |
|
|
3.0 |
|
|
0.2 |
|
6.7% |
|
|
6.4 |
|
|
6.1 |
|
|
0.3 |
|
4.9% |
Operating income |
|
137.6 |
|
|
127.8 |
|
|
9.8 |
|
7.7% |
|
|
232.6 |
|
|
203.0 |
|
|
29.6 |
|
14.6% |
Operating ratio [a] |
|
85.9% |
|
|
86.3% |
|
|
|
|
|
|
|
87.7% |
|
|
88.7% |
|
|
|
|
|
Transaction, integration and rebranding costs |
|
- |
|
|
5.0 |
|
|
(5.0) |
|
-100.0% |
|
|
- |
|
|
13.9 |
|
|
(13.9) |
|
-100.0% |
Amortization expense |
|
8.5 |
|
|
8.5 |
|
|
- |
|
0.0% |
|
|
16.9 |
|
|
16.9 |
|
|
- |
|
0.0% |
Other
income |
|
7.4 |
|
|
3.0 |
|
|
4.4 |
|
146.7% |
|
|
14.7 |
|
|
6.0 |
|
|
8.7 |
|
145.0% |
Adjusted operating income [b] |
$ |
153.5 |
|
$ |
144.3 |
|
$ |
9.2 |
|
6.4% |
|
$ |
264.2 |
|
$ |
239.8 |
|
$ |
24.4 |
|
10.2% |
Adjusted operating ratio [c] |
|
84.3% |
|
|
84.6% |
|
|
|
|
|
|
|
86.0% |
|
|
86.7% |
|
|
|
|
|
[a] Operating ratio is calculated as (1 -
(Operating income divided by Revenue)).
[b] See the "Non-GAAP Financial Measures" section
of the Press Release.
[c] Adjusted operating ratio is calculated as (1 -
(Adjusted operating income divided by Revenue)).
Logistics |
Summary
Financial Table |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,507.8 |
|
$ |
1,265.7 |
|
$ |
242.1 |
|
19.1% |
|
$ |
2,955.9 |
|
$ |
2,441.2 |
|
$ |
514.7 |
|
21.1% |
Cost of transportation and services |
|
238.4 |
|
|
205.9 |
|
|
32.5 |
|
15.8% |
|
|
466.6 |
|
|
393.1 |
|
|
73.5 |
|
18.7% |
Net revenue [a] |
|
1,269.4 |
|
|
1,059.8 |
|
|
209.6 |
|
19.8% |
|
|
2,489.3 |
|
|
2,048.1 |
|
|
441.2 |
|
21.5% |
Direct operating expense |
|
1,067.1 |
|
|
882.7 |
|
|
184.4 |
|
20.9% |
|
|
2,106.9 |
|
|
1,726.3 |
|
|
380.6 |
|
22.0% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
76.4 |
|
|
62.2 |
|
|
14.2 |
|
22.8% |
|
|
150.0 |
|
|
120.9 |
|
|
29.1 |
|
24.1% |
Other sales, general and administrative expense |
|
18.5 |
|
|
20.4 |
|
|
(1.9) |
|
-9.3% |
|
|
37.1 |
|
|
36.4 |
|
|
0.7 |
|
1.9% |
Purchased services |
|
20.7 |
|
|
26.0 |
|
|
(5.3) |
|
-20.4% |
|
|
41.6 |
|
|
44.2 |
|
|
(2.6) |
|
-5.9% |
Depreciation and amortization |
|
19.4 |
|
|
19.1 |
|
|
0.3 |
|
1.6% |
|
|
38.9 |
|
|
38.0 |
|
|
0.9 |
|
2.4% |
Total sales, general and administrative
expense |
|
135.0 |
|
|
127.7 |
|
|
7.3 |
|
5.7% |
|
|
267.6 |
|
|
239.5 |
|
|
28.1 |
|
11.7% |
Operating income |
$ |
67.3 |
|
$ |
49.4 |
|
$ |
17.9 |
|
36.2% |
|
$ |
114.8 |
|
$ |
82.3 |
|
$ |
32.5 |
|
39.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) [b] |
|
7.8 |
|
|
4.9 |
|
|
2.9 |
|
59.2% |
|
|
15.8 |
|
|
9.7 |
|
|
6.1 |
|
62.9% |
Total depreciation and amortization |
|
57.8 |
|
|
49.6 |
|
|
8.2 |
|
16.5% |
|
|
113.1 |
|
|
96.3 |
|
|
16.8 |
|
17.4% |
EBITDA [a] |
$ |
132.9 |
|
$ |
103.9 |
|
$ |
29.0 |
|
27.9% |
|
$ |
243.7 |
|
$ |
188.3 |
|
$ |
55.4 |
|
29.4% |
Transaction and integration costs |
|
0.8 |
|
|
7.0 |
|
|
(6.2) |
|
-88.6% |
|
|
1.3 |
|
|
9.5 |
|
|
(8.2) |
|
-86.3% |
Rebranding costs |
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
50.0% |
|
|
0.9 |
|
|
0.6 |
|
|
0.3 |
|
50.0% |
Adjusted EBITDA [a] * |
$ |
134.0 |
|
$ |
111.1 |
|
$ |
22.9 |
|
20.6% |
|
$ |
245.9 |
|
$ |
198.4 |
|
$ |
47.5 |
|
23.9% |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
[b] Other income (expense) consists of pension
income and is included in Other expense (income) on the Condensed
Consolidated Statement of Operations.
* For purposes of the summary financial table,
adjusted EBITDA is reconciled to operating income and excludes
gains and losses below operating income in the Condensed
Consolidated Statements of Operations.
Logistics |
Key Data by
Geography |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
574.7 |
|
$ |
495.2 |
|
$ |
1,115.5 |
|
$ |
966.5 |
Europe |
|
933.1 |
|
|
770.5 |
|
|
1,840.4 |
|
|
1,474.7 |
Total Revenue |
$ |
1,507.8 |
|
$ |
1,265.7 |
|
$ |
2,955.9 |
|
$ |
2,441.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
547.1 |
|
$ |
486.1 |
|
$ |
1,062.4 |
|
$ |
945.1 |
Europe |
|
722.3 |
|
|
573.7 |
|
|
1,426.9 |
|
|
1,103.0 |
Total Net Revenue [a] |
$ |
1,269.4 |
|
$ |
1,059.8 |
|
$ |
2,489.3 |
|
$ |
2,048.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Direct Operating Expense |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
485.2 |
|
$ |
426.0 |
|
$ |
949.8 |
|
$ |
832.1 |
Europe |
|
581.9 |
|
|
456.7 |
|
|
1,157.1 |
|
|
894.2 |
Total Direct Operating Expense |
$ |
1,067.1 |
|
$ |
882.7 |
|
$ |
2,106.9 |
|
$ |
1,726.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
61.9 |
|
$ |
60.1 |
|
$ |
112.6 |
|
$ |
113.0 |
Europe |
|
140.4 |
|
|
117.0 |
|
|
269.8 |
|
|
208.8 |
Total Gross Margin |
$ |
202.3 |
|
$ |
177.1 |
|
$ |
382.4 |
|
$ |
321.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
10.8% |
|
|
12.1% |
|
|
10.1% |
|
|
11.7% |
Europe |
|
15.0% |
|
|
15.2% |
|
|
14.7% |
|
|
14.2% |
Total Gross Margin % |
|
13.4% |
|
|
14.0% |
|
|
12.9% |
|
|
13.2% |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
XPO Corporate |
Summary of Sales, General and
Administrative Expense |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
$ |
25.6 |
|
$ |
19.4 |
|
$ |
6.2 |
|
32.0% |
|
$ |
52.3 |
|
$ |
35.4 |
|
$ |
16.9 |
|
47.7% |
Other sales, general and administrative expense |
|
1.0 |
|
|
6.4 |
|
|
(5.4) |
|
-84.4% |
|
|
2.8 |
|
|
6.9 |
|
|
(4.1) |
|
-59.4% |
Purchased services |
|
15.5 |
|
|
12.0 |
|
|
3.5 |
|
29.2% |
|
|
30.8 |
|
|
27.4 |
|
|
3.4 |
|
12.4% |
Depreciation and amortization |
|
2.6 |
|
|
1.5 |
|
|
1.1 |
|
73.3% |
|
|
4.3 |
|
|
4.0 |
|
|
0.3 |
|
7.5% |
Total sales, general and administrative
expense |
$ |
44.7 |
|
$ |
39.3 |
|
$ |
5.4 |
|
13.7% |
|
$ |
90.2 |
|
$ |
73.7 |
|
$ |
16.5 |
|
22.4% |
Intersegment
Eliminations |
Summary Financial
Table |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
(32.0) |
|
$ |
(28.1) |
|
$ |
(3.9) |
|
13.9% |
|
$ |
(62.7) |
|
$ |
(55.9) |
|
$ |
(6.8) |
|
12.2% |
Cost of transportation and services |
|
(32.2) |
|
|
(27.1) |
|
|
(5.1) |
|
18.8% |
|
|
(62.9) |
|
|
(53.5) |
|
|
(9.4) |
|
17.6% |
Net revenue [a] |
|
0.2 |
|
|
(1.0) |
|
|
1.2 |
|
-120.0% |
|
|
0.2 |
|
|
(2.4) |
|
|
2.6 |
|
-108.3% |
Direct operating expense |
|
(0.2) |
|
|
8.1 |
|
|
(8.3) |
|
-102.5% |
|
|
(0.4) |
|
|
0.8 |
|
|
(1.2) |
|
-150.0% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
0.0 |
|
|
(6.2) |
|
|
6.2 |
|
-100.0% |
|
|
0.0 |
|
|
(2.2) |
|
|
2.2 |
|
-100.0% |
Other sales, general and administrative expense |
|
(0.2) |
|
|
(1.6) |
|
|
1.4 |
|
-87.5% |
|
|
(0.6) |
|
|
(0.6) |
|
|
(0.0) |
|
0.0% |
Purchased services |
|
0.6 |
|
|
(1.3) |
|
|
1.9 |
|
-146.2% |
|
|
1.2 |
|
|
(0.4) |
|
|
1.6 |
|
-400.0% |
Depreciation and amortization |
|
- |
|
|
- |
|
|
- |
|
0.0% |
|
|
- |
|
|
- |
|
|
- |
|
0.0% |
Total sales, general and administrative
expense |
|
0.4 |
|
|
(9.1) |
|
|
9.5 |
|
-104.4% |
|
|
0.6 |
|
|
(3.2) |
|
|
3.8 |
|
-118.7% |
Operating income |
$ |
- |
|
$ |
- |
|
$ |
- |
|
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
- |
Note: Intersegment Eliminations represent
intercompany activity between the Company's reportable segments
that is eliminated upon consolidation. The difference between
operating income component line items in the Condensed Consolidated
Statements of Operations and the sum of the respective line items
from the Transportation and Logistics Summary Financial Tables and
Corporate Summary of Sales, General and Administrative Expense
above represents intercompany eliminations between our reportable
segments. The table above summarizes the intersegment eliminations
by line item.
[a] See the "Non-GAAP Financial Measures"
section of the Press Release.
Reconciliation of Non-GAAP Measures |
XPO
Logistics, Inc. |
Consolidated
Reconciliation of Net Income to Adjusted EBITDA |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to common shareholders [1] |
$ |
137.5 |
|
$ |
47.6 |
|
$ |
89.9 |
|
188.9% |
|
$ |
204.4 |
|
$ |
67.1 |
|
$ |
137.3 |
|
204.6% |
Distributed and undistributed net income [1] |
|
(11.5) |
|
|
(4.3) |
|
|
(7.2) |
|
167.4% |
|
|
(17.2) |
|
|
(6.1) |
|
|
(11.1) |
|
182.0% |
Noncontrolling interests |
|
(10.1) |
|
|
(5.3) |
|
|
(4.8) |
|
90.6% |
|
|
(16.6) |
|
|
(8.9) |
|
|
(7.7) |
|
86.5% |
Net
income |
|
159.1 |
|
|
57.2 |
|
|
101.9 |
|
178.1% |
|
|
238.2 |
|
|
82.1 |
|
|
156.1 |
|
190.1% |
Loss
on conversion of convertible senior notes |
|
- |
|
|
0.4 |
|
|
(0.4) |
|
-100.0% |
|
|
- |
|
|
0.4 |
|
|
(0.4) |
|
-100.0% |
Loss
on debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
0.0% |
|
|
10.3 |
|
|
9.0 |
|
|
1.3 |
|
14.4% |
Other
Interest expense |
|
54.9 |
|
|
73.9 |
|
|
(19.0) |
|
-25.7% |
|
|
114.3 |
|
|
149.5 |
|
|
(35.2) |
|
-23.5% |
Income
tax provision |
|
54.2 |
|
|
27.8 |
|
|
26.4 |
|
95.0% |
|
|
54.0 |
|
|
18.0 |
|
|
36.0 |
|
200.0% |
Depreciation and amortization expense |
|
176.4 |
|
|
164.4 |
|
|
12.0 |
|
7.3% |
|
|
347.3 |
|
|
321.8 |
|
|
25.5 |
|
7.9% |
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(15.7) |
|
|
27.2 |
|
|
(42.9) |
|
-157.7% |
|
|
(12.2) |
|
|
39.1 |
|
|
(51.3) |
|
-131.2% |
EBITDA [a] |
$ |
428.9 |
|
$ |
350.9 |
|
$ |
78.0 |
|
22.2% |
|
$ |
751.9 |
|
$ |
619.9 |
|
$ |
132.0 |
|
21.3% |
Transaction and integration costs |
|
5.9 |
|
|
14.2 |
|
|
(8.3) |
|
-58.5% |
|
|
12.6 |
|
|
23.9 |
|
|
(11.3) |
|
-47.3% |
Rebranding costs |
|
1.9 |
|
|
5.7 |
|
|
(3.8) |
|
-66.7% |
|
|
2.4 |
|
|
17.0 |
|
|
(14.6) |
|
-85.9% |
Adjusted EBITDA [a] |
$ |
436.7 |
|
$ |
370.8 |
|
$ |
65.9 |
|
17.8% |
|
$ |
766.9 |
|
$ |
660.8 |
|
$ |
106.1 |
|
16.1% |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release. Adjusted EBITDA was prepared assuming 100%
ownership of XPO Logistics Europe.
[1] The sum of quarterly net income attributable
to common shareholders and distributed and undistributed net income
may not equal year-to-date amounts due to the impact of the
two-class method of calculating earnings per share.
|
Reconciliation of Non-GAAP Measures |
|
XPO
Logistics, Inc. |
|
Consolidated
Reconciliation of GAAP Net Income and Net Income Per Share
to
Adjusted Net Income and Adjusted Net Income Per
Share |
|
(Unaudited) |
|
(In millions,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to common shareholders |
$ |
137.5 |
|
$ |
47.6 |
|
$ |
204.4 |
|
$ |
67.1 |
|
Loss
on conversion of convertible senior notes |
|
- |
|
|
0.4 |
|
|
- |
|
|
0.4 |
|
Loss
on debt extinguishment |
|
- |
|
|
- |
|
|
10.3 |
|
|
9.0 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(15.7) |
|
|
27.2 |
|
|
(12.2) |
|
|
39.1 |
|
Transaction and integration costs |
|
5.9 |
|
|
14.2 |
|
|
12.6 |
|
|
23.9 |
|
Rebranding costs |
|
1.9 |
|
|
5.7 |
|
|
2.4 |
|
|
17.0 |
|
Income
tax associated with the adjustments above [1] |
|
2.2 |
|
|
(16.7) |
|
|
(3.6) |
|
|
(32.3) |
|
Discrete and other tax-related adjustments [2] |
|
- |
|
|
- |
|
|
- |
|
|
(5.8) |
|
Impact
of noncontrolling interests on above adjustments |
|
(0.4) |
|
|
(0.9) |
|
|
(0.5) |
|
|
(1.6) |
|
Allocation of undistributed earnings |
|
0.4 |
|
|
(2.5) |
|
|
(0.7) |
|
|
(4.2) |
Adjusted net income attributable to
common shareholders [a] |
$ |
131.8 |
|
$ |
75.0 |
|
$ |
212.7 |
|
$ |
112.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basic earnings per share
[a] |
$ |
1.09 |
|
$ |
0.67 |
|
$ |
1.77 |
|
$ |
1.01 |
Adjusted diluted earnings per share
[a] |
$ |
0.98 |
|
$ |
0.60 |
|
$ |
1.59 |
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
120.7 |
|
|
111.8 |
|
|
120.4 |
|
|
111.6 |
|
Diluted weighted-average common shares outstanding |
|
134.1 |
|
|
124.7 |
|
|
133.7 |
|
|
124.6 |
[1] This line item reflects the aggregate tax
benefit (provision) of all non-tax related adjustments reflected in
the table above. The detail by line item is as follows:
|
Loss
on conversion of convertible senior notes |
$ |
- |
|
$ |
0.1 |
|
$ |
- |
|
$ |
0.1 |
|
Loss
on debt extinguishment |
|
- |
|
|
(0.1) |
|
|
2.8 |
|
|
3.3 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(4.2) |
|
|
9.6 |
|
|
(3.2) |
|
|
14.1 |
|
Transaction and integration costs |
|
1.6 |
|
|
5.1 |
|
|
3.4 |
|
|
8.6 |
|
Rebranding costs |
|
0.4 |
|
|
2.0 |
|
|
0.6 |
|
|
6.2 |
|
|
$ |
(2.2) |
|
$ |
16.7 |
|
$ |
3.6 |
|
$ |
32.3 |
[2] Adjustments consist of $2.5 million release of
reserves related to uncertain tax positions and $3.3 million
release of a valuation allowance related to state tax matters for
the six months ended June 30, 2017.
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
The Company has evaluated the guidance in
accordance with Compliance and Disclosure Interpretations of the
U.S. Securities and Exchange Commission table to calculate the
non-GAAP Adjusted Net Income and Adjusted Net Income Per Share. The
table above includes the U.S. GAAP financial statement items that
have been reconciled to arrive at Adjusted Net Income and Adjusted
Net Income per share. The adjusted performance metrics are based on
the GAAP annual effective rate, excluding discrete items. A
corresponding noncontrolling interest has been calculated for those
reconciling items reported within the acquired Norbert
Dentressangle SA legal entities.
XPO
Logistics, Inc. |
Reconciliation of Cash Flows From Operating Activities to
Free Cash Flow |
(Unaudited) |
(In
millions) |
|
|
Three Months
Ended |
|
Six Months
Ended |
|
June 30, |
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows provided by operating activities |
$ |
267.4 |
|
$ |
210.4 |
|
$ |
248.0 |
|
$ |
225.9 |
Payment for purchases of property and equipment |
|
(125.6) |
|
|
(139.6) |
|
|
(267.7) |
|
|
(262.0) |
Proceeds from sales of assets |
|
51.1 |
|
|
21.7 |
|
|
61.5 |
|
|
42.2 |
Free Cash Flow [a] |
$ |
192.9 |
|
$ |
92.5 |
|
$ |
41.8 |
|
$ |
6.1 |
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
XPO Logistics,
Inc. |
Reconciliation of GAAP Revenue to Organic Revenue |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
Consolidated |
|
Three Months Ended June 30, |
|
|
2018 |
|
|
2017 |
Revenue |
$ |
4,363.5 |
|
$ |
3,760.3 |
Fuel |
|
(446.9) |
|
|
(334.6) |
Foreign Exchange Rates |
|
(116.8) |
|
|
- |
Organic Revenue [a] |
$ |
3,799.8 |
|
$ |
3,425.7 |
Organic Revenue Growth |
|
10.9% |
|
|
|
[a] Organic revenue is a non-GAAP measure. Organic
Revenue reflects adjustments to (i) exclude the estimated revenue
attributable to fuel and (ii) apply a constant foreign exchange
rate to both periods (based on average rates during the monthly
periods).
XPO 2Q18 Press Release
FINAL
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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