Reports 11.5%
revenue growth, led by contract logistics and freight
brokerage
Closes $918 million of new business in the quarter, up 43%
year-over-year
GREENWICH, Conn. - October 31,
2018 - XPO Logistics, Inc. (NYSE: XPO) today announced
financial results for the third quarter 2018. Revenue increased
11.5% year-over-year to $4.34 billion. Net income attributable to
common shareholders was $100.8 million for the quarter, compared
with net income attributable to common shareholders of $57.5
million for the same period in 2017. Earnings per diluted share was
$0.74 for the quarter, compared with $0.44 for the same period in
2017.
Adjusted net income attributable to common
shareholders, a non-GAAP financial measure, was $121.3 million for
the quarter, compared with $76.7 million for the same period in
2017. Adjusted earnings per diluted share, a non-GAAP financial
measure, was $0.89 for the quarter, compared with $0.59 for the
same period in 2017. EPS and adjusted EPS for the third quarter
2018 were decreased by $0.07 due to a charge of $15.6 million, or
$11.4 million after-tax, related to a customer bankruptcy. Adjusted
net income attributable to common shareholders and adjusted
earnings per diluted share for the third quarter 2018 exclude:
$16.8 million, or $12.3 million after-tax, of debt extinguishment
costs; $11.7 million, or $10.8 million after-tax, of integration
and rebranding costs; and a benefit of $0.7 million, or $0.5
million after-tax, of non-cash unrealized gains on foreign currency
contracts. 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 $414.9 million for the third
quarter 2018, compared with $369.6 million of adjusted EBITDA for
the same period in 2017. Adjusted EBITDA for the third quarter 2018
excludes integration and rebranding costs of $11.7 million.
Adjusted EBITDA in the quarter reflects the impact of a $15.6
million charge related to a customer bankruptcy.
For the third quarter 2018, the company generated
$288.2 million of cash flow from operations and $173.0 million of
free cash flow.
Updates Financial Targets
The company has updated its full-year 2018 target
for adjusted EBITDA to approximately $1.585 billion, from at least
$1.6 billion. The revised target for adjusted EBITDA primarily
reflects the impact of a customer bankruptcy in the third quarter.
The company has reaffirmed its 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 robust organic growth of 10.5%
in the quarter was led by strong demand for e-commerce logistics
and freight brokerage. In our North American LTL business, we
improved the adjusted operating ratio by 220 basis points from a
year ago. Companywide, we again grew profitability faster than
revenue, despite the impact of a customer bankruptcy.
"Our disciplined investments in growth over the
past 18 months are gaining traction. We closed $918 million of new
business in the quarter, up 43% from last year, due in large part
to our expanded sales organization and proprietary technology. In
contract logistics, we implemented a record 90 customer contracts
through September, enabled by intelligent automation. And in North
American brokerage, we used dynamic freight-matching algorithms to
realize 18% revenue growth and 370 basis points of margin
improvement with fewer people. This is the same technology used by
XPO Connect, our digital freight marketplace."
Jacobs continued, "Our leading positions in
sectors such as e-commerce, as well as our capacity for innovation,
should keep us growing faster than the industry in any macro
environment. We're continuing to explore acquisition opportunities
that will further accelerate our trajectory."
Third Quarter 2018 Results by
Segment
- Transportation: The
company's transportation segment generated revenue of $2.85
billion for the quarter, a 10.5% 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.
Operating income for the transportation segment
increased to $195.2 million in the quarter, compared with $145.2
million for the same period in 2017. Adjusted EBITDA for the
segment improved to $326.5 million, an increase of 20.0% from a
year ago. The increases in operating income and adjusted EBITDA
primarily were due to growth in global freight brokerage,
less-than-truckload (LTL) operating margin improvement in North
America, and growth in dedicated truckload in Europe. Within the
North American less-than-truckload unit, the operating ratio was
87.0%. The adjusted operating ratio was 85.4%, a 220 basis point
improvement from 87.6% for the third quarter 2017.
- Logistics: The company's
logistics segment generated revenue of $1.52 billion for
the quarter, a 13.1% increase from the same period in 2017. Segment
revenue growth was led by rising demand for e-commerce logistics
globally, as well as by the consumer packaged goods and food and
beverage sectors in North America and the fashion sector in
Europe.
Operating income for the logistics segment
decreased to $59.5 million, compared with $67.3 million for the
same period in 2017. Adjusted EBITDA for the segment was $128.0
million, unchanged from a year ago. The decrease in operating
income primarily was due to a $15.6 million charge related to a
customer bankruptcy, and to a record number of contract start-ups
year-to-date: 46 in Europe and 44 in North America.
-
Corporate: Corporate
SG&A expense was $45.7 million for the quarter, compared with
$35.8 million for the same period in 2017. The increase in
corporate expense primarily reflects an increase in share-based
compensation expense tied to the increase in the share price of XPO
stock, as well as increased corporate headcount and information
technology associated with the centralization of shared services
from field operations.
Nine Months 2018 Financial
Results
For the nine months ended September 30, 2018, the
company reported total revenue of $12.89 billion, a 15.2% increase
from the same period in 2017. Net income attributable to common
shareholders was $305.2 million for the first nine months of 2018,
compared with $124.5 million for the same period in 2017. Earnings
per diluted share was $2.26 for the first nine months of 2018,
compared with $0.99 for the same period in 2017.
Adjusted net income attributable to common
shareholders, a non-GAAP financial measure, was $334.0 million for
the first nine months of 2018, compared with $189.3 million for the
same period in 2017. Adjusted earnings per diluted share, a
non-GAAP financial measure, was $2.48 for the first nine months of
2018, compared with $1.50 for the same period in 2017. Adjusted net
income attributable to common shareholders and adjusted earnings
per diluted share for the first nine months of 2018 exclude $27.1
million, or $19.8 million after-tax, of debt extinguishment costs;
$26.7 million, or $21.8 million after-tax, of integration and
rebranding costs; and a benefit of $12.9 million, or $9.5 million
after-tax, from non-cash unrealized gains on foreign currency
contracts.
Adjusted EBITDA for the first nine months of 2018,
a non-GAAP financial measure, improved to $1.18 billion, compared
with $1.03 billion for the same period in 2017. Adjusted EBITDA for
the first nine months of 2018 excludes $26.7 million of integration
and rebranding costs.
Conference Call
The company will hold a conference call on
Thursday, November 1, 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 December 1, 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 13683596.
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 1,529 locations and more than 98,000
employees. XPO uses its network to help more than 50,000 customers
manage their goods most 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 nine-month periods ended
September 30, 2018 and 2017, on a consolidated basis and for our
transportation and logistics segments; free cash flow for the three
and nine-month periods ended September 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 nine-month periods ended September 30, 2018 and 2017; net
revenue for the three and nine-month periods ended September 30,
2018 and 2017 for our transportation and logistics segments and
intersegment eliminations; adjusted operating income and adjusted
operating ratio for our North American less-than-truckload business
for the three and nine-month periods ended September 30, 2018 and
2017; and organic revenue growth for the three-month periods ended
September 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
transaction, integration and restructuring costs. Transaction,
integration and restructuring adjustments are generally incremental
costs that result from actual or planned acquisitions or
divestitures (i.e., transaction costs, integration costs,
consulting fees and internal salaries to the extent that
individuals are assigned full-time to integration and
transformation activities), as well as restructuring costs, such as
severance, related to business optimization activities. 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 (i) removing the impact
of certain transaction, integration, restructuring and rebranding
costs and amortization expenses and, (ii) including the impact of
pension income 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, our expected future growth
prospects and our exploration of acquisition opportunities. 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 |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
4,335.1 |
|
$ |
3,887.1 |
|
$ |
12,890.1 |
|
$ |
11,186.9 |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Cost
of transportation and services |
|
2,248.6 |
|
|
2,043.4 |
|
|
6,747.7 |
|
|
5,901.8 |
Direct
operating expense |
|
1,430.3 |
|
|
1,267.4 |
|
|
4,212.7 |
|
|
3,616.1 |
Sales,
general and administrative expense |
|
447.2 |
|
|
399.6 |
|
|
1,351.7 |
|
|
1,213.4 |
Total
operating expenses |
|
4,126.1 |
|
|
3,710.4 |
|
|
12,312.1 |
|
|
10,731.3 |
Operating income |
|
209.0 |
|
|
176.7 |
|
|
578.0 |
|
|
455.6 |
Other
expense (income) |
|
(18.3) |
|
|
(16.8) |
|
|
(68.1) |
|
|
(35.8) |
Foreign currency loss |
|
3.3 |
|
|
15.0 |
|
|
5.3 |
|
|
53.9 |
Debt
extinguishment loss |
|
16.8 |
|
|
4.6 |
|
|
27.1 |
|
|
13.6 |
Interest expense |
|
51.0 |
|
|
72.5 |
|
|
165.3 |
|
|
222.4 |
Income before income tax provision |
|
156.2 |
|
|
101.4 |
|
|
448.4 |
|
|
201.5 |
Income
tax provision |
|
41.0 |
|
|
30.4 |
|
|
95.0 |
|
|
48.4 |
Net income |
|
115.2 |
|
|
71.0 |
|
|
353.4 |
|
|
153.1 |
Net
income attributable to noncontrolling interests |
|
(6.2) |
|
|
(8.5) |
|
|
(22.8) |
|
|
(17.4) |
Net income attributable to XPO |
$ |
109.0 |
|
$ |
62.5 |
|
$ |
330.6 |
|
$ |
135.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders *
[1] |
$ |
100.8 |
|
$ |
57.5 |
|
$ |
305.2 |
|
$ |
124.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share [1] |
$ |
0.81 |
|
$ |
0.49 |
|
$ |
2.50 |
|
$ |
1.10 |
Diluted earnings per share [1] |
$ |
0.74 |
|
$ |
0.44 |
|
$ |
2.26 |
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding |
|
125.2 |
|
|
117.5 |
|
|
122.1 |
|
|
113.5 |
Diluted weighted-average common shares outstanding |
|
136.6 |
|
|
129.8 |
|
|
134.8 |
|
|
126.2 |
|
|
|
|
|
|
|
|
|
|
|
|
* Net income attributable to common shareholders reflects
the following items: |
|
|
|
|
|
|
|
|
|
|
Non-cash allocation of undistributed earnings |
$ |
7.5 |
|
$ |
4.3 |
|
$ |
23.3 |
|
$ |
9.0 |
Preferred dividends |
|
0.7 |
|
|
0.7 |
|
|
2.1 |
|
|
2.2 |
[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) |
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
2018 |
|
2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash
and cash equivalents |
$ |
427.9 |
|
$ |
396.9 |
Accounts receivable, net of allowances of $51.9 and $42.4,
respectively |
|
2,914.9 |
|
|
2,725.3 |
Other
current assets |
|
487.5 |
|
|
465.7 |
Total current assets |
|
3,830.3 |
|
|
3,587.9 |
|
|
|
|
|
|
Property and equipment, net of $1,454.8 and $1,109.5 in accumulated
depreciation, respectively |
|
2,705.2 |
|
|
2,663.7 |
Goodwill |
|
4,494.8 |
|
|
4,563.6 |
Identifiable intangible assets, net of $670.6 and $559.5 in
accumulated amortization, respectively |
|
1,298.7 |
|
|
1,435.3 |
Other
long-term assets |
|
347.1 |
|
|
351.1 |
Total long-term assets |
|
8,845.8 |
|
|
9,013.7 |
Total assets |
$ |
12,676.1 |
|
$ |
12,601.6 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,231.8 |
|
$ |
1,250.7 |
Accrued expenses |
|
1,517.9 |
|
|
1,525.8 |
Current maturities of long-term debt |
|
84.0 |
|
|
103.7 |
Other
current liabilities |
|
161.4 |
|
|
116.9 |
Total current liabilities |
|
2,995.1 |
|
|
2,997.1 |
|
|
|
|
|
|
Long-term debt |
|
4,005.3 |
|
|
4,417.5 |
Deferred tax liability |
|
428.9 |
|
|
418.8 |
Employee benefit obligations |
|
157.9 |
|
|
162.1 |
Other
long-term liabilities |
|
499.1 |
|
|
596.1 |
Total long-term liabilities |
|
5,091.2 |
|
|
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 September 30, 2018 and December 31, 2017,
respectively |
|
41.0 |
|
|
41.2 |
Common
stock, $0.001 par value; 300.0 shares authorized; 126.9 and 119.9
shares issued |
|
|
|
|
|
and
outstanding at September 30, 2018 and December 31, 2017,
respectively |
|
0.1 |
|
|
0.1 |
Additional paid-in capital |
|
3,913.5 |
|
|
3,590.0 |
Retained earnings (accumulated deficit) |
|
286.1 |
|
|
(42.6) |
Accumulated other comprehensive (loss) income |
|
(59.2) |
|
|
15.7 |
Total stockholders' equity before noncontrolling
interests |
|
4,181.5 |
|
|
3,604.4 |
Noncontrolling interests |
|
408.3 |
|
|
405.6 |
Total equity |
|
4,589.8 |
|
|
4,010.0 |
Total liabilities and equity |
$ |
12,676.1 |
|
$ |
12,601.6 |
XPO
Logistics, Inc. |
Condensed
Consolidated Statements of Cash Flows |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
Operating activities |
|
|
|
|
|
Net income |
$ |
353.4 |
|
$ |
153.1 |
Adjustments to reconcile net income to
net cash from operating activities |
|
|
|
|
|
|
Depreciation and amortization |
|
527.2 |
|
|
489.1 |
|
Stock
compensation expense |
|
64.1 |
|
|
50.1 |
|
Accretion of debt |
|
11.1 |
|
|
14.5 |
|
Deferred tax expense (benefit) |
|
14.3 |
|
|
(3.1) |
|
Debt
extinguishment loss |
|
27.1 |
|
|
13.6 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(12.9) |
|
|
49.9 |
|
Other |
|
3.2 |
|
|
20.1 |
Changes in assets and
liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
(262.0) |
|
|
(199.8) |
|
Other
assets |
|
(98.5) |
|
|
(45.4) |
|
Accounts payable |
|
(4.1) |
|
|
48.6 |
|
Accrued expenses and other liabilities |
|
(86.7) |
|
|
(71.2) |
Net cash provided by operating
activities |
|
536.2 |
|
|
519.5 |
Investing activities |
|
|
|
|
|
|
Payment for purchases of property and equipment |
|
(413.1) |
|
|
(389.9) |
|
Proceeds from sale of assets |
|
91.7 |
|
|
59.6 |
|
Other |
|
(13.0) |
|
|
- |
Net cash used by investing
activities |
|
(334.4) |
|
|
(330.3) |
Financing activities |
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
895.8 |
|
|
523.5 |
|
Repurchase of debt |
|
(1,225.4) |
|
|
(782.9) |
|
Proceeds from borrowings on ABL facility |
|
925.0 |
|
|
495.0 |
|
Repayment of borrowings on ABL facility |
|
(1,025.0) |
|
|
(525.0) |
|
Repayment of long-term debt and capital leases |
|
(84.7) |
|
|
(80.9) |
|
Payment for debt issuance costs |
|
(6.4) |
|
|
(12.8) |
|
Proceeds from forward sale settlement |
|
348.5 |
|
|
- |
|
Proceeds from common stock offering |
|
- |
|
|
287.6 |
|
Change
in bank overdrafts |
|
18.4 |
|
|
11.5 |
|
Payment for tax withholdings for restricted shares |
|
(48.8) |
|
|
(15.2) |
|
Dividends paid |
|
(4.1) |
|
|
(3.3) |
|
Other |
|
6.2 |
|
|
(1.0) |
Net cash used by financing
activities |
|
(200.5) |
|
|
(103.5) |
Effect of exchange rates on cash, cash equivalents and
restricted cash |
|
(9.9) |
|
|
9.4 |
Net (decrease) increase in cash, cash
equivalents and restricted cash |
|
(8.6) |
|
|
95.1 |
Cash, cash equivalents and restricted
cash, beginning of period * |
|
449.0 |
|
|
399.8 |
Cash, cash equivalents and restricted
cash, end of period * |
$ |
440.4 |
|
$ |
494.9 |
* 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 $12.5 million, $52.1 million, $21.8
million and $26.4 million at September 30, 2018, December 31, 2017,
September 30, 2017 and December 31, 2016, respectively. The prior
period presentation has been restated to reflect the current period
presentation.
Transportation |
Summary
Financial Table |
(Unaudited) |
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,850.6 |
|
$ |
2,579.5 |
|
$ |
271.1 |
|
10.5% |
|
$ |
8,512.4 |
|
$ |
7,494.0 |
|
$ |
1,018.4 |
|
13.6% |
Cost of transportation and services |
|
2,054.7 |
|
|
1,862.1 |
|
|
192.6 |
|
10.3% |
|
|
6,150.1 |
|
|
5,380.9 |
|
|
769.2 |
|
14.3% |
Net revenue [a] |
|
795.9 |
|
|
717.4 |
|
|
78.5 |
|
10.9% |
|
|
2,362.3 |
|
|
2,113.1 |
|
|
249.2 |
|
11.8% |
Direct operating expense |
|
335.4 |
|
|
320.0 |
|
|
15.4 |
|
4.8% |
|
|
1,011.3 |
|
|
941.6 |
|
|
69.7 |
|
7.4% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
148.4 |
|
|
133.6 |
|
|
14.8 |
|
11.1% |
|
|
455.8 |
|
|
399.3 |
|
|
56.5 |
|
14.1% |
Other sales, general and administrative expense |
|
37.0 |
|
|
39.7 |
|
|
(2.7) |
|
-6.8% |
|
|
120.0 |
|
|
128.9 |
|
|
(8.9) |
|
-6.9% |
Purchased services |
|
32.2 |
|
|
36.7 |
|
|
(4.5) |
|
-12.3% |
|
|
100.8 |
|
|
100.0 |
|
|
0.8 |
|
0.8% |
Depreciation and amortization |
|
47.7 |
|
|
42.2 |
|
|
5.5 |
|
13.0% |
|
|
134.8 |
|
|
127.8 |
|
|
7.0 |
|
5.5% |
Total sales, general and administrative
expense |
|
265.3 |
|
|
252.2 |
|
|
13.1 |
|
5.2% |
|
|
811.4 |
|
|
756.0 |
|
|
55.4 |
|
7.3% |
Operating income |
$ |
195.2 |
|
$ |
145.2 |
|
$ |
50.0 |
|
34.4% |
|
$ |
539.6 |
|
$ |
415.5 |
|
$ |
124.1 |
|
29.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) [b] |
|
10.3 |
|
|
5.1 |
|
|
5.2 |
|
102.0% |
|
|
31.2 |
|
|
15.1 |
|
|
16.1 |
|
106.6% |
Total depreciation and amortization |
|
117.4 |
|
|
113.6 |
|
|
3.8 |
|
3.3% |
|
|
347.3 |
|
|
335.1 |
|
|
12.2 |
|
3.6% |
EBITDA [a] |
$ |
322.9 |
|
$ |
263.9 |
|
$ |
59.0 |
|
22.4% |
|
$ |
918.1 |
|
$ |
765.7 |
|
$ |
152.4 |
|
19.9% |
Transaction, integration and restructuring costs |
|
2.2 |
|
|
7.4 |
|
|
(5.2) |
|
-70.3% |
|
|
6.2 |
|
|
17.8 |
|
|
(11.6) |
|
-65.2% |
Rebranding costs |
|
1.4 |
|
|
0.7 |
|
|
0.7 |
|
100.0% |
|
|
2.9 |
|
|
16.9 |
|
|
(14.0) |
|
-82.8% |
Adjusted EBITDA [a] * |
$ |
326.5 |
|
$ |
272.0 |
|
$ |
54.5 |
|
20.0% |
|
$ |
927.2 |
|
$ |
800.4 |
|
$ |
126.8 |
|
15.8% |
[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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
739.1 |
|
$ |
628.6 |
|
$ |
2,177.9 |
|
$ |
1,748.9 |
Less-Than-Truckload |
|
981.7 |
|
|
928.5 |
|
|
2,890.2 |
|
|
2,753.8 |
Last Mile |
|
271.0 |
|
|
242.1 |
|
|
777.9 |
|
|
679.5 |
Managed Transport |
|
110.1 |
|
|
118.1 |
|
|
361.3 |
|
|
372.1 |
Total North America |
|
2,101.9 |
|
|
1,917.3 |
|
|
6,207.3 |
|
|
5,554.3 |
Europe |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage and Truckload |
|
456.9 |
|
|
409.3 |
|
|
1,408.0 |
|
|
1,198.3 |
Less-Than-Truckload |
|
246.2 |
|
|
220.5 |
|
|
757.2 |
|
|
645.3 |
Total Europe |
|
703.1 |
|
|
629.8 |
|
|
2,165.2 |
|
|
1,843.6 |
Global Forwarding |
|
83.3 |
|
|
75.8 |
|
|
250.6 |
|
|
219.9 |
Eliminations |
|
(37.7) |
|
|
(43.4) |
|
|
(110.7) |
|
|
(123.8) |
Total Revenue |
$ |
2,850.6 |
|
$ |
2,579.5 |
|
$ |
8,512.4 |
|
$ |
7,494.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
138.0 |
|
$ |
94.4 |
|
$ |
376.0 |
|
$ |
264.1 |
Less-Than-Truckload |
|
392.7 |
|
|
368.3 |
|
|
1,157.5 |
|
|
1,100.8 |
Last Mile |
|
76.5 |
|
|
71.5 |
|
|
226.5 |
|
|
202.6 |
Managed Transport |
|
23.8 |
|
|
25.1 |
|
|
75.5 |
|
|
82.8 |
Total North America |
|
631.0 |
|
|
559.3 |
|
|
1,835.5 |
|
|
1,650.3 |
Europe |
|
150.6 |
|
|
145.2 |
|
|
483.5 |
|
|
425.1 |
Global Forwarding |
|
14.3 |
|
|
12.9 |
|
|
43.3 |
|
|
37.7 |
Total Net Revenue [a] |
$ |
795.9 |
|
$ |
717.4 |
|
$ |
2,362.3 |
|
$ |
2,113.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue % |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
|
18.7% |
|
|
15.0% |
|
|
17.3% |
|
|
15.1% |
Less-Than-Truckload |
|
40.0% |
|
|
39.7% |
|
|
40.0% |
|
|
40.0% |
Last Mile |
|
28.2% |
|
|
29.5% |
|
|
29.1% |
|
|
29.8% |
Managed Transport |
|
21.6% |
|
|
21.3% |
|
|
20.9% |
|
|
22.3% |
Total North America |
|
30.0% |
|
|
29.2% |
|
|
29.6% |
|
|
29.7% |
Europe |
|
21.4% |
|
|
23.1% |
|
|
22.3% |
|
|
23.1% |
Global Forwarding |
|
17.2% |
|
|
17.0% |
|
|
17.3% |
|
|
17.1% |
Overall Net Revenue % |
|
27.9% |
|
|
27.8% |
|
|
27.8% |
|
|
28.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Direct Operating Expense |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Freight Brokerage |
$ |
22.7 |
|
$ |
21.0 |
|
$ |
69.3 |
|
$ |
64.6 |
Less-Than-Truckload |
|
168.1 |
|
|
171.2 |
|
|
505.8 |
|
|
510.3 |
Last Mile |
|
23.2 |
|
|
16.9 |
|
|
64.2 |
|
|
47.1 |
Managed Transport |
|
16.1 |
|
|
15.9 |
|
|
53.9 |
|
|
46.2 |
Total North America |
|
230.1 |
|
|
225.0 |
|
|
693.2 |
|
|
668.2 |
Europe |
|
102.4 |
|
|
91.4 |
|
|
308.3 |
|
|
262.8 |
Global Forwarding |
|
2.9 |
|
|
3.6 |
|
|
9.8 |
|
|
10.6 |
Total Direct Operating Expense |
$ |
335.4 |
|
$ |
320.0 |
|
$ |
1,011.3 |
|
$ |
941.6 |
[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 September 30, |
|
2018 |
|
2017 |
|
|
|
|
|
|
Number
of Working Days |
|
63.0 |
|
|
62.5 |
|
|
|
|
|
|
Lbs.
per Day (Thousands) |
|
75,385 |
|
|
76,500 |
|
|
|
|
|
|
%
Change in Lbs. per Day* |
|
-1.5% |
|
|
5.6% |
|
|
|
|
|
|
Shipments per Day |
|
52,769 |
|
|
55,798 |
|
|
|
|
|
|
%
Change in Shipments per Day* |
|
-5.4% |
|
|
1.8% |
|
|
|
|
|
|
Avg.
Weight per Shipment (in pounds) |
|
1,429 |
|
|
1,371 |
|
|
|
|
|
|
%
Change in Weight per Shipment* |
|
4.2% |
|
|
3.7% |
|
|
|
|
|
|
Gross
Revenue per Shipment |
$ |
300.76 |
|
$ |
275.93 |
|
|
|
|
|
|
Gross
Revenue per Hundred Weight (including fuel surcharges) |
$ |
21.05 |
|
$ |
20.13 |
|
|
|
|
|
|
Gross
Revenue per Hundred Weight (excluding fuel surcharges) |
$ |
18.05 |
|
$ |
17.72 |
|
|
|
|
|
|
%
Change in Gross Revenue per Hundred Weight* |
|
|
|
|
|
Including fuel surcharges |
|
4.6% |
|
|
3.1% |
Excluding fuel surcharges |
|
1.9% |
|
|
1.8% |
|
|
|
|
|
|
Average Length of Haul (in Miles) |
|
805.5 |
|
|
818.2 |
|
|
|
|
|
|
Total
Average Load Factor** |
|
22,342 |
|
|
22,445 |
|
|
|
|
|
|
Average Age of Tractor Fleet (Years) |
|
5.71 |
|
|
5.23 |
*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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge revenue) |
$ |
826.5 |
|
$ |
800.9 |
|
$ |
25.6 |
|
3.2% |
|
$ |
2,439.0 |
|
$ |
2,384.9 |
|
$ |
54.1 |
|
2.3% |
Fuel
surcharge revenue |
|
142.7 |
|
|
115.2 |
|
|
27.5 |
|
23.9% |
|
|
413.9 |
|
|
334.5 |
|
|
79.4 |
|
23.7% |
Revenue |
|
969.2 |
|
|
916.1 |
|
|
53.1 |
|
5.8% |
|
|
2,852.9 |
|
|
2,719.4 |
|
|
133.5 |
|
4.9% |
Salaries, wages and employee benefits |
|
442.6 |
|
|
429.1 |
|
|
13.5 |
|
3.1% |
|
|
1,312.3 |
|
|
1,275.1 |
|
|
37.2 |
|
2.9% |
Purchased transportation |
|
103.7 |
|
|
114.0 |
|
|
(10.3) |
|
-9.0% |
|
|
299.9 |
|
|
330.0 |
|
|
(30.1) |
|
-9.1% |
Fuel
and fuel-related taxes |
|
74.6 |
|
|
56.7 |
|
|
17.9 |
|
31.6% |
|
|
217.2 |
|
|
170.0 |
|
|
47.2 |
|
27.8% |
Depreciation and amortization |
|
62.3 |
|
|
59.6 |
|
|
2.7 |
|
4.5% |
|
|
182.9 |
|
|
176.9 |
|
|
6.0 |
|
3.4% |
Other
operating expenses |
|
120.8 |
|
|
118.5 |
|
|
2.3 |
|
1.9% |
|
|
362.8 |
|
|
342.4 |
|
|
20.4 |
|
6.0% |
Maintenance |
|
26.2 |
|
|
25.8 |
|
|
0.4 |
|
1.6% |
|
|
77.4 |
|
|
82.4 |
|
|
(5.0) |
|
-6.1% |
Rents
and leases |
|
10.4 |
|
|
10.4 |
|
|
- |
|
0.0% |
|
|
32.8 |
|
|
31.5 |
|
|
1.3 |
|
4.1% |
Purchased labor |
|
3.0 |
|
|
3.8 |
|
|
(0.8) |
|
-21.1% |
|
|
9.4 |
|
|
9.9 |
|
|
(0.5) |
|
-5.1% |
Operating income |
|
125.6 |
|
|
98.2 |
|
|
27.4 |
|
27.9% |
|
|
358.2 |
|
|
301.2 |
|
|
57.0 |
|
18.9% |
Operating ratio [a] |
|
87.0% |
|
|
89.3% |
|
|
|
|
|
|
|
87.4% |
|
|
88.9% |
|
|
|
|
|
Transaction, integration, restructuring and rebranding costs |
|
- |
|
|
4.2 |
|
|
(4.2) |
|
-100.0% |
|
|
- |
|
|
18.1 |
|
|
(18.1) |
|
-100.0% |
Amortization expense |
|
8.4 |
|
|
8.4 |
|
|
- |
|
0.0% |
|
|
25.3 |
|
|
25.3 |
|
|
- |
|
0.0% |
Other
income |
|
7.3 |
|
|
3.0 |
|
|
4.3 |
|
143.3% |
|
|
22.0 |
|
|
9.0 |
|
|
13.0 |
|
144.4% |
Adjusted operating income [b] |
$ |
141.3 |
|
$ |
113.8 |
|
$ |
27.5 |
|
24.2% |
|
$ |
405.5 |
|
$ |
353.6 |
|
$ |
51.9 |
|
14.7% |
Adjusted operating ratio [c] |
|
85.4% |
|
|
87.6% |
|
|
|
|
|
|
|
85.8% |
|
|
87.0% |
|
|
|
|
|
[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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,516.8 |
|
$ |
1,340.7 |
|
$ |
176.1 |
|
13.1% |
|
$ |
4,472.7 |
|
$ |
3,781.9 |
|
$ |
690.8 |
|
18.3% |
Cost of transportation and services |
|
225.8 |
|
|
212.2 |
|
|
13.6 |
|
6.4% |
|
|
692.4 |
|
|
605.3 |
|
|
87.1 |
|
14.4% |
Net revenue [a] |
|
1,291.0 |
|
|
1,128.5 |
|
|
162.5 |
|
14.4% |
|
|
3,780.3 |
|
|
3,176.6 |
|
|
603.7 |
|
19.0% |
Direct operating expense |
|
1,095.1 |
|
|
948.4 |
|
|
146.7 |
|
15.5% |
|
|
3,202.0 |
|
|
2,674.7 |
|
|
527.3 |
|
19.7% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
66.6 |
|
|
64.1 |
|
|
2.5 |
|
3.9% |
|
|
216.6 |
|
|
185.0 |
|
|
31.6 |
|
17.1% |
Other sales, general and administrative expense |
|
30.9 |
|
|
8.6 |
|
|
22.3 |
|
259.3% |
|
|
68.0 |
|
|
45.0 |
|
|
23.0 |
|
51.1% |
Purchased services |
|
19.0 |
|
|
21.5 |
|
|
(2.5) |
|
-11.6% |
|
|
60.6 |
|
|
65.7 |
|
|
(5.1) |
|
-7.8% |
Depreciation and amortization |
|
19.9 |
|
|
18.6 |
|
|
1.3 |
|
7.0% |
|
|
58.8 |
|
|
56.6 |
|
|
2.2 |
|
3.9% |
Total sales, general and administrative
expense |
|
136.4 |
|
|
112.8 |
|
|
23.6 |
|
20.9% |
|
|
404.0 |
|
|
352.3 |
|
|
51.7 |
|
14.7% |
Operating income |
$ |
59.5 |
|
$ |
67.3 |
|
$ |
(7.8) |
|
-11.6% |
|
$ |
174.3 |
|
$ |
149.6 |
|
$ |
24.7 |
|
16.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) [b] |
|
7.5 |
|
|
5.0 |
|
|
2.5 |
|
50.0% |
|
|
23.3 |
|
|
14.7 |
|
|
8.6 |
|
58.5% |
Total depreciation and amortization |
|
59.3 |
|
|
53.0 |
|
|
6.3 |
|
11.9% |
|
|
172.4 |
|
|
149.3 |
|
|
23.1 |
|
15.5% |
EBITDA [a] |
$ |
126.3 |
|
$ |
125.3 |
|
$ |
1.0 |
|
0.8% |
|
$ |
370.0 |
|
$ |
313.6 |
|
$ |
56.4 |
|
18.0% |
Transaction, integration and restructuring costs |
|
1.7 |
|
|
2.6 |
|
|
(0.9) |
|
-34.6% |
|
|
3.0 |
|
|
12.1 |
|
|
(9.1) |
|
-75.2% |
Rebranding costs |
|
- |
|
|
0.1 |
|
|
(0.1) |
|
-100.0% |
|
|
0.9 |
|
|
0.7 |
|
|
0.2 |
|
28.6% |
Adjusted EBITDA [a] * |
$ |
128.0 |
|
$ |
128.0 |
|
$ |
0.0 |
|
0.0% |
|
$ |
373.9 |
|
$ |
326.4 |
|
$ |
47.5 |
|
14.6% |
[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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
597.3 |
|
$ |
506.2 |
|
$ |
1,712.8 |
|
$ |
1,472.7 |
Europe |
|
919.5 |
|
|
834.5 |
|
|
2,759.9 |
|
|
2,309.2 |
Total Revenue |
$ |
1,516.8 |
|
$ |
1,340.7 |
|
$ |
4,472.7 |
|
$ |
3,781.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
572.9 |
|
$ |
495.7 |
|
$ |
1,635.3 |
|
$ |
1,440.8 |
Europe |
|
718.1 |
|
|
632.8 |
|
|
2,145.0 |
|
|
1,735.8 |
Total Net Revenue [a] |
$ |
1,291.0 |
|
$ |
1,128.5 |
|
$ |
3,780.3 |
|
$ |
3,176.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Direct Operating Expense |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
506.3 |
|
$ |
438.2 |
|
$ |
1,456.1 |
|
$ |
1,270.3 |
Europe |
|
588.8 |
|
|
510.2 |
|
|
1,745.9 |
|
|
1,404.4 |
Total Direct Operating Expense |
$ |
1,095.1 |
|
$ |
948.4 |
|
$ |
3,202.0 |
|
$ |
2,674.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
North America |
$ |
66.6 |
|
$ |
57.5 |
|
$ |
179.2 |
|
$ |
170.5 |
Europe |
|
129.3 |
|
|
122.6 |
|
|
399.1 |
|
|
331.4 |
Total Gross Margin |
$ |
195.9 |
|
$ |
180.1 |
|
$ |
578.3 |
|
$ |
501.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
11.2% |
|
|
11.4% |
|
|
10.5% |
|
|
11.6% |
Europe |
|
14.1% |
|
|
14.7% |
|
|
14.5% |
|
|
14.4% |
Total Gross Margin % |
|
12.9% |
|
|
13.4% |
|
|
12.9% |
|
|
13.3% |
[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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
$ |
25.7 |
|
$ |
19.6 |
|
$ |
6.1 |
|
31.1% |
|
$ |
78.0 |
|
$ |
55.0 |
|
$ |
23.0 |
|
41.8% |
Other sales, general and administrative expense |
|
5.6 |
|
|
3.1 |
|
|
2.5 |
|
80.6% |
|
|
8.4 |
|
|
10.0 |
|
|
(1.6) |
|
-16.0% |
Purchased services |
|
11.2 |
|
|
12.4 |
|
|
(1.2) |
|
-9.7% |
|
|
42.0 |
|
|
39.8 |
|
|
2.2 |
|
5.5% |
Depreciation and amortization |
|
3.2 |
|
|
0.7 |
|
|
2.5 |
|
357.1% |
|
|
7.5 |
|
|
4.7 |
|
|
2.8 |
|
59.6% |
Total sales, general and administrative
expense |
$ |
45.7 |
|
$ |
35.8 |
|
$ |
9.9 |
|
27.7% |
|
$ |
135.9 |
|
$ |
109.5 |
|
$ |
26.4 |
|
24.1% |
Intersegment
Eliminations |
Summary Financial
Table |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
(32.3) |
|
$ |
(33.1) |
|
$ |
0.8 |
|
-2.4% |
|
$ |
(95.0) |
|
$ |
(89.0) |
|
$ |
(6.0) |
|
6.7% |
Cost of transportation and services |
|
(31.9) |
|
|
(30.9) |
|
|
(1.0) |
|
3.2% |
|
|
(94.8) |
|
|
(84.4) |
|
|
(10.4) |
|
12.3% |
Net revenue [a] |
|
(0.4) |
|
|
(2.2) |
|
|
1.8 |
|
-81.8% |
|
|
(0.2) |
|
|
(4.6) |
|
|
4.4 |
|
-95.7% |
Direct operating expense |
|
(0.2) |
|
|
(1.0) |
|
|
0.8 |
|
-80.0% |
|
|
(0.6) |
|
|
(0.2) |
|
|
(0.4) |
|
200.0% |
Sales, general and administrative expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
0.1 |
|
|
- |
|
|
0.1 |
|
100.0% |
|
|
0.1 |
|
|
(2.2) |
|
|
2.3 |
|
-104.5% |
Other sales, general and administrative expense |
|
(0.9) |
|
|
(0.6) |
|
|
(0.3) |
|
50.0% |
|
|
(1.5) |
|
|
(1.2) |
|
|
(0.3) |
|
25.0% |
Purchased services |
|
0.6 |
|
|
(0.6) |
|
|
1.2 |
|
-200.0% |
|
|
1.8 |
|
|
(1.0) |
|
|
2.8 |
|
-280.0% |
Depreciation and amortization |
|
- |
|
|
- |
|
|
- |
|
0.0% |
|
|
- |
|
|
- |
|
|
- |
|
0.0% |
Total sales, general and administrative
expense |
|
(0.2) |
|
|
(1.2) |
|
|
1.0 |
|
-83.3% |
|
|
0.4 |
|
|
(4.4) |
|
|
4.8 |
|
-109.1% |
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 September 30, |
|
Nine Months Ended September 30, |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
2018 |
|
2017 |
|
$ Variance |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to common shareholders [1] |
$ |
100.8 |
|
$ |
57.5 |
|
$ |
43.3 |
|
75.3% |
|
$ |
305.2 |
|
$ |
124.5 |
|
$ |
180.7 |
|
145.1% |
Distributed and undistributed net income [1] |
|
8.2 |
|
|
5.0 |
|
|
3.2 |
|
64.0% |
|
|
25.4 |
|
|
11.2 |
|
|
14.2 |
|
126.8% |
Net
income attributable to noncontrolling interests |
|
6.2 |
|
|
8.5 |
|
|
(2.3) |
|
-27.1% |
|
|
22.8 |
|
|
17.4 |
|
|
5.4 |
|
31.0% |
Net
income |
|
115.2 |
|
|
71.0 |
|
|
44.2 |
|
62.3% |
|
|
353.4 |
|
|
153.1 |
|
|
200.3 |
|
130.8% |
Loss
on conversion of convertible senior notes |
|
- |
|
|
0.1 |
|
|
(0.1) |
|
-100.0% |
|
|
- |
|
|
0.5 |
|
|
(0.5) |
|
-100.0% |
Debt
extinguishment loss |
|
16.8 |
|
|
4.6 |
|
|
12.2 |
|
265.2% |
|
|
27.1 |
|
|
13.6 |
|
|
13.5 |
|
99.3% |
Other
Interest expense |
|
51.0 |
|
|
72.4 |
|
|
(21.4) |
|
-29.6% |
|
|
165.3 |
|
|
221.9 |
|
|
(56.6) |
|
-25.5% |
Income
tax provision |
|
41.0 |
|
|
30.4 |
|
|
10.6 |
|
34.9% |
|
|
95.0 |
|
|
48.4 |
|
|
46.6 |
|
96.3% |
Depreciation and amortization expense |
|
179.9 |
|
|
167.3 |
|
|
12.6 |
|
7.5% |
|
|
527.2 |
|
|
489.1 |
|
|
38.1 |
|
7.8% |
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(0.7) |
|
|
9.6 |
|
|
(10.3) |
|
-107.3% |
|
|
(12.9) |
|
|
48.7 |
|
|
(61.6) |
|
-126.5% |
EBITDA [a] |
$ |
403.2 |
|
$ |
355.4 |
|
$ |
47.8 |
|
13.4% |
|
$ |
1,155.1 |
|
$ |
975.3 |
|
$ |
179.8 |
|
18.4% |
Transaction, integration and restructuring costs |
|
10.3 |
|
|
13.4 |
|
|
(3.1) |
|
-23.1% |
|
|
22.9 |
|
|
37.3 |
|
|
(14.4) |
|
-38.6% |
Rebranding costs |
|
1.4 |
|
|
0.8 |
|
|
0.6 |
|
75.0% |
|
|
3.8 |
|
|
17.8 |
|
|
(14.0) |
|
-78.7% |
Adjusted EBITDA [a] |
$ |
414.9 |
|
$ |
369.6 |
|
$ |
45.3 |
|
12.3% |
|
$ |
1,181.8 |
|
$ |
1,030.4 |
|
$ |
151.4 |
|
14.7% |
[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.
[a] See the "Non-GAAP Financial Measures" section
of the Press Release. Adjusted EBITDA was prepared assuming 100%
ownership of XPO Logistics Europe.
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 |
|
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to common shareholders |
$ |
100.8 |
|
$ |
57.5 |
|
$ |
305.2 |
|
$ |
124.5 |
|
Loss
on conversion of convertible senior notes |
|
- |
|
|
0.1 |
|
|
- |
|
|
0.5 |
|
Debt
extinguishment loss |
|
16.8 |
|
|
4.6 |
|
|
27.1 |
|
|
13.6 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(0.7) |
|
|
9.6 |
|
|
(12.9) |
|
|
48.7 |
|
Transaction, integration and restructuring costs |
|
10.3 |
|
|
13.4 |
|
|
22.9 |
|
|
37.3 |
|
Rebranding costs |
|
1.4 |
|
|
0.8 |
|
|
3.8 |
|
|
17.8 |
|
Income
tax associated with the adjustments above [1] |
|
(5.2) |
|
|
(7.1) |
|
|
(8.8) |
|
|
(39.4) |
|
Discrete and other tax-related adjustments [2] |
|
- |
|
|
- |
|
|
- |
|
|
(5.8) |
|
Impact
of noncontrolling interests on above adjustments |
|
(0.4) |
|
|
(0.5) |
|
|
(0.9) |
|
|
(2.0) |
|
Allocation of undistributed earnings |
|
(1.7) |
|
|
(1.7) |
|
|
(2.4) |
|
|
(5.9) |
Adjusted net income attributable to
common shareholders [a] |
$ |
121.3 |
|
$ |
76.7 |
|
$ |
334.0 |
|
$ |
189.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basic earnings per share
[a] |
$ |
0.97 |
|
$ |
0.65 |
|
$ |
2.74 |
|
$ |
1.67 |
Adjusted diluted earnings per share
[a] |
$ |
0.89 |
|
$ |
0.59 |
|
$ |
2.48 |
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
125.2 |
|
|
117.5 |
|
|
122.1 |
|
|
113.5 |
|
Diluted weighted-average common shares outstanding |
|
136.6 |
|
|
129.8 |
|
|
134.8 |
|
|
126.2 |
[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 |
|
Debt
extinguishment loss |
|
4.5 |
|
|
1.3 |
|
|
7.3 |
|
|
4.6 |
|
Unrealized (gain) loss on foreign currency option and forward
contracts |
|
(0.2) |
|
|
2.2 |
|
|
(3.4) |
|
|
16.3 |
|
Transaction, integration and restructuring costs |
|
0.5 |
|
|
3.9 |
|
|
3.9 |
|
|
12.5 |
|
Rebranding costs |
|
0.4 |
|
|
(0.3) |
|
|
1.0 |
|
|
5.9 |
|
|
$ |
5.2 |
|
$ |
7.1 |
|
$ |
8.8 |
|
$ |
39.4 |
[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 nine months ended September 30, 2017.
[a] See the "Non-GAAP Financial Measures" section
of the Press Release.
XPO
Logistics, Inc. |
Reconciliation of Cash Flows From Operating Activities to
Free Cash Flow |
(Unaudited) |
(In
millions) |
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows provided by operating activities |
$ |
288.2 |
|
$ |
293.6 |
|
$ |
536.2 |
|
$ |
519.5 |
Payment for purchases of property and equipment |
|
(145.4) |
|
|
(127.9) |
|
|
(413.1) |
|
|
(389.9) |
Proceeds from sales of assets |
|
30.2 |
|
|
17.4 |
|
|
91.7 |
|
|
59.6 |
Free Cash Flow [a] |
$ |
173.0 |
|
$ |
183.1 |
|
$ |
214.8 |
|
$ |
189.2 |
[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 September 30, |
|
2018 |
|
2017 |
Revenue |
$ |
4,335.1 |
|
$ |
3,887.1 |
Fuel |
|
(452.3) |
|
|
(358.6) |
Foreign Exchange Rates |
|
15.6 |
|
|
- |
Organic Revenue |
$ |
3,898.4 |
|
$ |
3,528.5 |
Organic Revenue Growth [a] |
|
10.5% |
|
|
|
[a] Organic revenue growth is calculated as the
relative change in year-over-year organic revenue, expressed as a
percentage of 2017 organic revenue.
XPO 3Q18 Press Release Final
PDF
This
announcement is distributed by West Corporation on behalf of West
Corporation 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
XPO (NYSE:XPO)
Historical Stock Chart
From Apr 2024 to May 2024
XPO (NYSE:XPO)
Historical Stock Chart
From May 2023 to May 2024