Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, today announced results for the fourth quarter and year ended December 31, 2019.

Revenues decreased to $400.9 million for the fourth quarter of 2019 compared to $551.5 million for the fourth quarter of 2018. Lower revenues were primarily due to declines in air and ground expedited logistics at the Ascent On-Demand segment (“Ascent OD”) as well as reduced shipment volumes and rates across the Ascent Transportation Management (“Ascent TM”), Less-than-Truckload (“LTL”) and Truckload (“TL”) segments. Fourth quarter 2019 results were also negatively impacted by the General Motors strike, which reduced revenue in the Ascent OD and TL segments by approximately $26.7 million and $4.4 million, respectively. After the GM strike ended in late October, the company saw improved results in Ascent OD in the months of November and December.

Operating loss was $70.5 million for the fourth quarter of 2019 compared to $22.9 million for the fourth quarter of 2018. Impacting the consolidated operating loss for the fourth quarter of 2019 was $48.3 million of goodwill, intangible asset and asset impairment charges and $7.2 million of operations restructuring costs related to the downsizing of the dry van business, offset by gains from the sale of the Intermodal and Flatbed businesses of $37.2 million. Excluding impairment charges, operations restructuring costs and gains from sales of businesses, the higher consolidated operating loss for the fourth quarter of 2019 was primarily attributable to the impact of lower revenues and margins across all operating segments.

Net loss was $74.2 million for the fourth quarter of 2019 compared to $58.4 million for the fourth quarter of 2018. In addition to the reasons discussed above for the company’s consolidated operating loss, the consolidated net loss for the fourth quarter of 2019 was also impacted by a decrease in interest expense of $30.9 million resulting from the redemption of preferred stock in the first quarter of 2019 and an increased benefit from income taxes. The company’s effective income tax rate was a benefit of 3.5% and 2.9% during the fourth quarter of 2019 and 2018, respectively.

Diluted loss per share available to common stockholders was $1.97 for the fourth quarter of 2019, compared to diluted loss per share of $37.32 for the fourth quarter of 2018. On April 5, 2019, the company executed a 1-for-25 reverse stock split. All share and per common share data have been retroactively adjusted for all periods presented. The weighted average common stock outstanding used in the calculation of diluted loss per share was significantly higher in the fourth quarter of 2019 due to the company’s issuance of 36 million shares of common stock in the rights offering that was completed in February 2019.

Adjusted EBITDA for the quarters ended December 31, 2019 and 2018 was calculated as follows:

For more information about Adjusted EBITDA, see “Non-GAAP Financial Measures” below and the company’s SEC filings.

Revenues decreased to $1,847.9 million for the year ended December 31, 2019 compared to $2,216.1 million for the year ended December 31, 2018. Lower revenues in all operating segments contributed to the decrease.

Operating loss was $321.9 million for the year ended December 31, 2019 compared to $58.5 million for the year ended December 31, 2018. The 2019 operating loss included operations restructuring costs of $20.6 million related to the dry van truckload business and asset impairment charges of $197.1 million. The 2018 operating loss included operations restructuring costs of $4.7 million related to the temperature controlled business. Lower consolidated operating results in 2019 were attributable to decreased revenues and increased impairment charges and restructuring costs, partially offset by lower purchased transportation costs, other operating expenses, and gain on sale of businesses.

Net loss was $340.9 million for the year ended December 31, 2019 compared to $165.6 million for the year ended December 31, 2018. In addition to the operating results within the company’s segments and corporate, the net loss reflected a decrease in interest expense to $20.4 million in 2019 from $116.9 million in 2018 due to the absence of interest on the preferred stock (which was fully redeemed in the first quarter of 2019 after completion of the rights offering). The effective income tax rate was a benefit of 1.1% and 5.6% during the year ended December 31, 2019 and 2018, respectively.

Diluted loss per share available to common stockholders was $10.62 for the year ended December 31, 2019, compared to diluted loss per share of $107.39 for the year ended December 31, 2018. As previously mentioned, the weighted average common stock outstanding used in the calculation of diluted loss per share was significantly higher during the year ended December 31, 2019 due to the company’s issuance of 36 million shares of common stock in the rights offering that was completed in February 2019.

Adjusted EBITDA for the year ended December 31, 2019 and 2018 was calculated as follows:

(In thousands)

Year ended December 31, 2019

 

Ascent TM

 

Ascent OD

 

LTL

 

TL

 

Corporate/
Eliminations

 

Total

Net (loss) income

$

(58,249

)

 

$

4,450

 

 

$

(36,469

)

 

$

(176,023

)

 

$

(74,646

)

 

$

(340,937

)

Plus: Total interest expense

359

 

 

 

 

902

 

 

3,038

 

 

16,113

 

 

20,412

 

Plus: Benefit from income taxes

(149

)

 

 

 

 

 

 

 

(3,511

)

 

(3,660

)

Plus: Depreciation and amortization

6,318

 

 

8,664

 

 

5,422

 

 

28,918

 

 

9,682

 

 

59,004

 

Plus: Impairment charges

74,636

 

 

 

 

1,076

 

 

107,261

 

 

14,123

 

 

197,096

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

 

14,790

 

 

14,790

 

Less: Gain on sales of business

 

 

 

 

 

 

 

 

(37,221

)

 

(37,221

)

Plus: Loss on debt restructuring

 

 

 

 

 

 

 

 

2,270

 

 

2,270

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

13,721

 

 

13,721

 

Plus: Operations restructuring costs

 

 

 

 

 

 

20,579

 

 

 

 

20,579

 

Plus: Contingent purchase obligation

 

 

 

 

 

 

 

 

360

 

 

360

 

Adjusted EBITDA

$

22,915

 

 

$

13,114

 

 

$

(29,069

)

 

$

(16,227

)

 

$

(44,319

)

 

$

(53,586

)

Adjusted EBITDA as a % of revenue

4.5%

 

2.8%

 

(6.7%)

 

(3.4%)

 

 

 

(2.9%)

(In thousands)

Year ended December 31, 2018

 

Ascent TM

 

Ascent OD

 

LTL

 

TL

 

Corporate/
Eliminations

 

Total

Net (loss) income

$

28,226

 

 

$

30,464

 

 

$

(27,009

)

 

$

(28,682

)

 

$

(168,596

)

 

$

(165,597

)

Plus: Total interest expense

108

 

 

 

 

117

 

 

315

 

 

116,372

 

 

116,912

 

Plus: (Benefit from) provision for income taxes

131

 

 

 

 

 

 

 

 

(9,945

)

 

(9,814

)

Plus: Depreciation and amortization

5,049

 

 

8,230

 

 

3,854

 

 

20,577

 

 

5,057

 

 

42,767

 

Plus: Fleet impairment charges

 

 

 

 

 

 

1,582

 

 

 

 

1,582

 

Plus: Long-term incentive compensation expenses

 

 

 

 

 

 

 

 

2,696

 

 

2,696

 

Plus: Corporate restructuring and restatement costs

 

 

 

 

 

 

 

 

22,224

 

 

22,224

 

Plus: Operations restructuring costs

 

 

 

 

 

 

4,655

 

 

 

 

4,655

 

Plus: Contingent purchase obligation

 

 

 

 

 

 

 

 

1,840

 

 

1,840

 

Adjusted EBITDA

$

33,514

 

 

$

38,694

 

 

$

(23,038

)

 

$

(1,553

)

 

$

(30,352

)

 

$

17,265

 

Adjusted EBITDA as a % of revenue

5.8%

 

5.7%

 

(5.5%)

 

(0.3%)

 

 

 

0.8%

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Recent Events

On November 5, 2019, the company entered into a $100 million Third Lien Credit Facility with Elliott Associates, L.P. and Elliott International, L.P. as lenders. As of December 31, 2019, the company had $40.5 million of outstanding borrowings under the Third Lien Credit Facility.

On November 5, 2019, the company completed the sale of its Roadrunner Intermodal Services (“Intermodal”) business to Universal Logistics Holdings, Inc., for $51.3 million in cash, subject to customary purchase price and working capital adjustments, and recognized a gain of $20.0 million.

On December 9, 2019, the company completed the sale of its Flatbed business unit, for $30.0 million in cash, subject to customary purchase price and working capital adjustments, and recognized a gain of $17.2 million.

On March 2, 2020, the company completed the sale of its Prime Distribution Services, Inc. (“Prime”) business to CH Robinson Worldwide, Inc. for $225 million, subject to customary purchase price and working capital adjustments.

On March 2, 2020, the company repaid in full and terminated the Term Loan Credit Agreement. The company repaid all amounts outstanding under the ABL Credit Facility and entered into a new credit agreement with BMO Harris Bank. The new ABL Credit Facility consists of a $50.0 million asset-based revolving line of credit subject to availability blocks, currently in the amount of $18.5 million. In addition, the company’s availability to borrow under the credit facility is further reduced by the amount of outstanding letters of credit, approximately $12.5 million. The company currently has approximately $90 million of available funds through cash on hand and availability through its new ABL and Third Lien facilities.

Voluntary Delisting and Deregistration with SEC

The company plans to voluntarily withdraw its common stock from listing on the NYSE and to voluntarily deregister from the reporting requirements of the Securities and Exchange Commission (the “SEC”). Accordingly, the company intends to file on or about April 6, 2020 a Form 25 with the SEC to voluntarily withdraw and delist the company’s common stock from the NYSE. The company also intends to file on or about April 17, 2020 a Form 15 with the SEC to request deregistration from SEC reporting requirements. The company plans to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 prior to deregistering.

Immediately upon the filing of the Form 15, the company’s obligation to file certain periodic reports with the SEC, including Forms 10-K, 10-Q and 8-K, will be suspended. It is expected that the voluntary delisting will take effect on or about April 17, 2020, and at that time the company’s shares will no longer be traded on the NYSE. After departing the NYSE, the company expects that its common shares will be traded on over-the-counter markets and expects that consolidated financial statements will be made available publicly on an annual basis.

While continuing to qualify for listing on the NYSE, the company made the decision to voluntarily deregister its shares because it has fewer than 300 stockholders of record and believes that it is in the best interest of the company’s stakeholders to reduce legal and administrative costs associated with being listed on the NYSE and complying with on-going SEC reporting requirements. The company’s Board of Directors formed a committee comprised solely of independent directors to thoroughly explore the option of voluntarily delisting and deregistering. After review of the facts, the committee determined that the company should follow this course of action.

CEO Comments

“In the fourth quarter, we continued to face challenging market conditions which hindered our operating performance. The General Motors strike impacted October results, however volumes recovered at Ascent On-Demand in November and December. The downsizing of our dry van business proceeded as planned, and we successfully completed the divestiture of the Intermodal and Flatbed business units,” said Curt Stoelting, Chief Executive Officer of Roadrunner. “Also in the fourth quarter, the company began to reduce corporate costs which we believe will have a positive impact on our future performance. We plan to continue to reduce corporate and overhead costs throughout 2020.”

Stoelting continued, “We recently unveiled a rebranding of our air and ground expedite business as Ascent On-Demand, part of our Ascent Global Logistics brand and created an enterprise sales team to drive organic revenue growth across our streamlined portfolio. We continue to invest in enhanced technology in our Ascent segments, where our new PEAK enterprise platform is designed to maximize our go-to-market capabilities and harmonize our customer service and back office functions. We also continue to implement strategic investments in our LTL segment, including dock automation and productivity applications, optimized line-haul and pricing management tools and improved customer and partner facing visibility technologies.”

“We recently completed our previously announced sale of Prime, which along with the divestitures of the Intermodal and Flatbed business units, provided more than $300 million in cash which was primarily used to pay down debt and capital lease obligations. After the sale of Prime, we fully paid all outstanding amounts under our previous Term and ABL loans and entered into a new ABL facility. The company has available funds from cash on hand and availability through our new ABL and Third Lien facilities,” said Stoelting.

Stoelting concluded, “Now that we have significantly improved our balance sheet, we are in position to voluntarily withdraw from the NYSE and deregister from the reporting requirements of the SEC. Voluntarily delisting and deregistering is expected to not only save significant costs, but also free up management time to fully focus on executing strategies to improve operating performance, generate attractive returns on invested capital and build long-term shareholder value. Based on our strengthened balance sheet and current ownership structure, delisting and deregistering is not expected to impact our current business operations or future growth opportunities.”

About Roadrunner Transportation Systems, Inc.

Roadrunner Transportation Systems is a leading asset-right transportation and asset-light logistics service provider offering a suite of solutions under the Roadrunner® and Ascent Global Logistics® brands. The Roadrunner brand offers less-than-truckload and over-the-road truckload services. Ascent Global Logistics offers premium mission critical air and ground logistics solutions, domestic freight management and brokerage, international freight forwarding and customs brokerage. For more information, please visit Roadrunner’s websites, www.rrts.com and www.ascentgl.com.

Safe Harbor Statement

This press release contains 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, which relate to future events or performance. Forward-looking statements include, among others, statements regarding Roadrunner’s plan to reduce corporate and overhead costs; the ability of Roadrunner’s enterprise sales team to drive organic revenue growth; Roadrunner’s ability to improve operating performance, generate attractive returns on invested capital and build long-term shareholder value; Roadrunner’s plans and timing to delist its common stock from the NYSE and deregister with the SEC; Roadrunner’s plan for filing its Annual report on Form 10-K; the anticipated cost savings of delisting and deregistering; the future trading of Roadrunner’s shares on over-the-counter markets; the public availability of financial statements on an annual basis; and the impact of delisting and deregistering on Roadrunner’s current business operations and future growth opportunities. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity,” and similar words or phrases or the negatives of these words or phrases. These forward-looking statements are based on Roadrunner’s current assumptions, expectations and beliefs and are subject to substantial risks, estimates, assumptions, uncertainties and changes in circumstances that may cause Roadrunner’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. Such factors include, among others, risks related to the restatement of Roadrunner’s previously issued financial statements, the remediation of Roadrunner’s identified material weaknesses in its internal control over financial reporting, the litigation resulting from the restatement of Roadrunner’s previously issued financial statements and the other risk factors contained in Roadrunner’s SEC filings, including Roadrunner’s Annual Report on Form 10-K for the year ended December 31, 2019. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, Roadrunner assumes no obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date hereof.

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Non-GAAP Financial Measures

EBITDA represents earnings before interest, taxes, depreciation and amortization. Roadrunner calculates Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, gain on sale of businesses, loss on debt restructuring, settlements of contingent purchase obligations, operations restructuring costs, and corporate restructuring and restatement costs associated with legal, consulting and accounting matters, including internal and external investigations. Roadrunner uses Adjusted EBITDA as a supplemental measure in evaluating its operating performance and when determining executive incentive compensation. Roadrunner believes Adjusted EBITDA is useful to investors in evaluating its performance compared to other companies in its industry because it assists in analyzing and benchmarking the performance and value of a business. The calculation of Adjusted EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. Although Roadrunner’s management uses Adjusted EBITDA as a financial measure to assess the performance of its business compared to that of others in Roadrunner’s industry, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of Roadrunner’s results as reported under GAAP. Some of these limitations are:

  • Adjusted EBITDA does not reflect Roadrunner’s cash expenditures, future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, Roadrunner’s working capital needs;
  • Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on Roadrunner’s debt or dividend payments on Roadrunner’s preferred stock;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
  • Other companies in Roadrunner’s industry may calculate Adjusted EBITDA differently than Roadrunner does, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to Roadrunner to invest in the growth of the company’s business. Roadrunner compensates for these limitations by relying primarily on Roadrunner’s results of operations under GAAP.

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

December 31,

(In thousands, except par value)

2019

 

2018

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

4,777

 

 

$

11,179

 

Accounts receivable, net of allowances of $8,279 and $9,980, respectively

216,389

 

 

274,843

 

Income tax receivable

2,861

 

 

3,910

 

Prepaid expenses and other current assets

40,474

 

 

61,106

 

Total current assets

264,501

 

 

351,038

 

Property and equipment, net of accumulated depreciation of $142,854 and $130,077, respectively

160,634

 

 

188,706

 

Other assets:

 

 

 

Operating lease right-of-use asset

116,926

 

 

 

Goodwill

97,265

 

 

264,826

 

Intangible assets, net

25,983

 

 

42,526

 

Other noncurrent assets

5,088

 

 

6,361

 

Total other assets

245,262

 

 

313,713

 

Total assets

$

670,397

 

 

$

853,457

 

LIABILITIES AND STOCKHOLDERS’ INVESTMENT (DEFICIT)

Current liabilities:

 

 

 

Current maturities of debt

$

2,291

 

 

$

13,171

 

Current maturities of indebtedness to related party

9,234

 

 

 

Current finance lease liability

15,600

 

 

13,229

 

Current operating lease liability

38,566

 

 

 

Accounts payable

129,724

 

 

160,242

 

Accrued expenses and other current liabilities

78,721

 

 

110,943

 

Total current liabilities

274,136

 

 

297,585

 

Deferred tax liabilities

940

 

 

3,953

 

Other long-term liabilities

1,513

 

 

7,857

 

Long-term debt, net of current maturities

131,540

 

 

155,596

 

Long-term indebtedness to related party

61,695

 

 

 

Long-term finance lease liability

51,338

 

 

37,737

 

Long-term operating lease liability

93,403

 

 

 

Preferred stock

 

 

402,884

 

Total liabilities

614,565

 

 

905,612

 

Commitments and contingencies

 

 

 

Stockholders’ investment (deficit) :

 

 

 

Common stock $.01 par value; 44,000 and 4,200 shares authorized respectively; 37,870 and 1,556 shares issued and outstanding, respectively

379

 

 

16

 

Additional paid-in capital

853,804

 

 

405,243

 

Retained deficit

(798,351

)

 

(457,414

)

Total stockholders’ investment (deficit)

55,832

 

 

(52,155

)

Total liabilities and stockholders’ investment (deficit)

$

670,397

 

 

$

853,457

 

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Year Ended December 31,

(In thousands, except per share amounts)

2019

 

2018

 

2017

 

 

 

 

 

 

Revenues

$

1,847,862

 

 

$

2,216,141

 

 

$

2,091,291

 

Operating expenses:

 

 

 

 

 

Purchased transportation costs

1,246,565

 

 

1,518,415

 

 

1,430,378

 

Personnel and related benefits

313,541

 

 

309,753

 

 

296,925

 

Other operating expenses

370,213

 

 

397,468

 

 

393,731

 

Depreciation and amortization

59,004

 

 

42,767

 

 

37,747

 

Gain from sale of businesses

(37,221

)

 

 

 

(35,440

)

Impairment charges

197,096

 

 

1,582

 

 

4,402

 

Operations restructuring costs

20,579

 

 

4,655

 

 

 

Total operating expenses

2,169,777

 

 

2,274,640

 

 

2,127,743

 

Operating loss

(321,915

)

 

(58,499

)

 

(36,452

)

Interest expense

 

 

 

 

 

Interest expense – preferred stock

 

 

105,688

 

 

49,704

 

Interest expense – debt

20,412

 

 

11,224

 

 

14,345

 

Total interest expense

20,412

 

 

116,912

 

 

64,049

 

Loss from debt restructuring

2,270

 

 

 

 

15,876

 

Loss before income taxes

(344,597

)

 

(175,411

)

 

(116,377

)

Benefit from income taxes

(3,660

)

 

(9,814

)

 

(25,191

)

Net loss

$

(340,937

)

 

$

(165,597

)

 

$

(91,186

)

Loss per share:

 

 

 

 

 

Basic

$

(10.62

)

 

$

(107.39

)

 

$

(59.37

)

Diluted

$

(10.62

)

 

$

(107.39

)

 

$

(59.37

)

Weighted average common stock outstanding:

 

 

 

 

 

Basic

32,098

 

 

1,542

 

 

1,536

 

Diluted

32,098

 

 

1,542

 

 

1,536

 

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ INVESTMENT (DEFICIT)

(Unaudited)

 

 

Common Stock

 

 

 

 

 

 

(In thousands, except shares)

Shares

 

Amount

 

Additional
Paid-In
Capital

 

Retained
Deficit

 

Total
Stockholders’
Investment
(Deficit)

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2016

1,533,625

 

 

$

15

 

 

$

398,970

 

 

$

(201,517

)

 

$

197,468

 

Issuance of restricted stock units, net of taxes paid

3,300

 

 

 

 

(239

)

 

 

 

(239

)

Share-based compensation

 

 

 

 

2,233

 

 

 

 

2,233

 

Issuance of warrants

 

 

 

 

2,571

 

 

 

 

2,571

 

Net loss

 

 

 

 

 

 

(91,186

)

 

(91,186

)

BALANCE, December 31, 2017

1,536,925

 

 

$

15

 

 

$

403,535

 

 

$

(292,703

)

 

$

110,847

 

Issuance of restricted stock units, net of taxes paid

3,760

 

 

 

 

(81

)

 

 

 

(81

)

Share-based compensation

 

 

 

 

1,786

 

 

 

 

1,786

 

Exercise of warrants

15,183

 

 

1

 

 

3

 

 

 

 

4

 

Cumulative effect of change in accounting principle

 

 

 

 

 

 

886

 

 

886

 

Net loss

 

 

 

 

 

 

(165,597

)

 

(165,597

)

BALANCE, December 31, 2018

1,555,868

 

 

$

16

 

 

$

405,243

 

 

$

(457,414

)

 

$

(52,155

)

Issuance of restricted stock units, net of taxes paid

314,280

 

 

3

 

 

(1,770

)

 

 

 

(1,767

)

Issuance of common stock

36,000,000

 

 

360

 

 

449,640

 

 

 

 

450,000

 

Common stock issuance costs

 

 

 

 

(11,985

)

 

 

 

(11,985

)

Share-based compensation

 

 

 

 

12,676

 

 

 

 

12,676

 

Net loss

 

 

 

 

 

 

(340,937

)

 

(340,937

)

BALANCE, December 31, 2019

37,870,148

 

 

$

379

 

 

$

853,804

 

 

$

(798,351

)

 

$

55,832

 

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

(In thousands)

Year Ended December 31,

 

2019

 

2018

 

2017

Cash flows from operating activities:

 

 

 

 

 

Net loss

$

(340,937

)

 

$

(165,597

)

 

$

(91,186

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

Depreciation and amortization

59,754

 

 

43,547

 

 

38,880

 

Loss on disposal of property and equipment

1,115

 

 

3,212

 

 

1,637

 

Gain on sale of businesses

(37,221

)

 

 

 

(35,440

)

Share-based compensation

12,676

 

 

1,786

 

 

2,233

 

Change in fair value of preferred stock

 

 

104,568

 

 

18,387

 

Amortization of preferred stock issuance costs

 

 

1,120

 

 

16,112

 

Loss from debt restructuring

2,270

 

 

 

 

15,876

 

Adjustments to contingent purchase obligations

 

 

1,840

 

 

 

Provision for bad debts

4,093

 

 

3,479

 

 

5,964

 

Deferred tax benefit

(3,014

)

 

(10,624

)

 

(27,066

)

Impairment charges

207,709

 

 

1,582

 

 

4,402

 

Changes in:

 

 

 

 

 

Accounts receivable

35,629

 

 

43,902

 

 

(70,171

)

Income tax receivable

1,049

 

 

9,935

 

 

26,017

 

Prepaid expenses and other assets

56,586

 

 

(26,052

)

 

(753

)

Accounts payable

(28,703

)

 

(12,291

)

 

28,960

 

Accrued expenses and other liabilities

(68,081

)

 

5,187

 

 

20,596

 

Net cash (used in) provided by operating activities

(97,075

)

 

5,594

 

 

(45,552

)

Cash flows from investing activities:

 

 

 

 

 

Capital expenditures

(27,745

)

 

(25,495

)

 

(14,517

)

Proceeds from sale of property and equipment

3,859

 

 

2,780

 

 

3,636

 

Proceeds from sale of businesses

84,791

 

 

 

 

88,512

 

Net cash provided by (used in) investing activities

60,905

 

 

(22,715

)

 

77,631

 

Cash flows from financing activities:

 

 

 

 

 

Borrowings under revolving credit facilities

633,441

 

 

695,751

 

 

264,405

 

Payments under revolving credit facilities

(597,660

)

 

(708,256

)

 

(290,068

)

Term borrowings

52,592

 

 

557

 

 

56,927

 

Term payments

(52,395

)

 

(19,082

)

 

(278,819

)

Debt issuance costs

(2,250

)

 

(373

)

 

(4,672

)

Cash collateralization of letters of credit

 

 

 

 

(175

)

Payment of debt extinguishment costs

(693

)

 

 

 

(10,960

)

Preferred stock issuance costs

 

 

(1,120

)

 

(16,112

)

Proceeds from issuance of preferred stocks and warrants

 

 

34,999

 

 

540,500

 

Preferred stock payments

(402,884

)

 

 

 

(293,000

)

Proceeds from issuance of common stock

450,000

 

 

 

 

 

Common stock issuance costs

(10,514

)

 

 

 

 

Proceeds from exercise of stock warrants

 

 

4

 

 

 

Issuance of restricted stock units, net of taxes paid

(1,767

)

 

(81

)

 

(239

)

Proceeds from insurance premium financing

20,735

 

 

17,782

 

 

 

Payments on insurance premium financing

(19,072

)

 

(12,133

)

 

 

Payments of finance lease obligation

(39,765

)

 

(5,450

)

 

(3,677

)

Net cash provided by (used in) financing activities

29,768

 

 

2,598

 

 

(35,890

)

Net decrease in cash and cash equivalents

(6,402

)

 

(14,523

)

 

(3,811

)

Cash and cash equivalents:

 

 

 

 

 

Beginning of period

11,179

 

 

25,702

 

 

29,513

 

End of period

$

4,777

 

 

$

11,179

 

 

$

25,702

 

ROADRUNNER TRANSPORTATION SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited)

 

(In thousands)

Year Ended December 31,

 

2019

 

2018

 

2017

Supplemental cash flow information:

 

 

 

 

 

Cash paid for interest

$

18,252

 

 

$

10,408

 

 

$

28,129

 

Cash refunds from income taxes, net

$

(1,028

)

 

$

(9,597

)

 

$

(25,254

)

Non-cash finance leases and other obligations to acquire assets

$

55,937

 

 

$

46,973

 

 

$

7,193

 

Capital expenditures, not yet paid

$

2,294

 

 

$

628

 

 

$

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005713/en/

Contacts

Reputation Partners
Marilyn Vollrath
414-376-8834
ir@rrts.com



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