XPO Logistics Targets $23 Billion in Revenues by 2019 Including New Acquisition Opportunities
Second Quarter 2015 results reports $80 million of adjusted EBITD, with significant margin improvement in transportation and logistics, and issues 2019 targets for $23 billion of revenue and $1.5 billion of EBITDA.
XPO Logistics, Inc. yesterday announced financial results for the second quarter of 2015, including 22 days of financial performance from the operations of Norbert Dentressangle SA.
Total gross revenue increased 109.3% year-over-year to $1.2 billion, and net revenue increased 317.2% to $508.6 million.
On a GAAP basis, the company reported a net loss of $78.8 million for the quarter, compared with a net loss of $13.8 million for the same period in 2014.
The net loss available to common shareholders was $75.1 million, or a loss of $0.89 per diluted share, compared with a net loss available to common shareholders of $14.5 million, or a loss of $0.28 per diluted share, for the same period in 2014.
On an adjusted basis, the net loss available to common shareholders, a non-GAAP measure, was $13.6 million, or a loss of $0.16 per share for the quarter, excluding the items detailed below.
This compares with an adjusted net loss available to common shareholders of $11.6 million, or a loss of $0.22 per share, for the second quarter of 2014.
Adjusted net loss available to common shareholders for the second quarter of 2015 excludes: $78.8 million, or $62.6 million after-tax, of transaction and integration costs; $8.6 million, or $6.1 million after-tax, of debt commitment fees; $4.4 million, or $3.2 million after-tax, of rebranding costs; $0.4 million, or $0.3 million after-tax, of costs related to the conversion of the company’s convertible senior notes; a $6.6 million benefit from reversing the non-controlling interests related to the adjustments; and a $5.7 million benefit, or $4.1 million after-tax, related to the gain on sale of intermodal equipment. Reconciliations of adjusted net loss available to common shareholders and adjusted EPS are provided in the attached financial tables.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, improved to $79.7 million for the quarter, compared with $14.1 million for the same period in 2014.
The acquisitions of Norbert Dentressangle and Bridge Terminal Transport accounted for $34.3 million of adjusted EBITDA. Adjusted EBITDA in the second quarter of 2015 excludes $78.8 million of transaction and integration costs; $4.4 million of non-controlling interests; $2.5 million of rebranding costs; and a $5.7 million benefit related to the gain on sale of intermodal equipment assets.
Adjusted EBITDA in the quarter includes $4.6 million of non-cash share-based compensation. A reconciliation of adjusted EBITDA to net loss is provided in the attached financial tables.
The company had $1.2 billion of cash as of July 31, 2015.
Issues New Long-Term Targets
The company issued new long-term financial targets to reflect its expanded platform for global growth. For the full year 2019, the targets are:
- Revenue of approximately $23 billion; and
- EBITDA of approximately $1.5 billion.
CEO Comments
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “We’re continuing to grow the company at a rapid pace, well ahead of plan. In the second quarter, we more than doubled our gross revenue year-over-year, grew our net revenue four-fold, and increased adjusted EBITDA more than five-fold. These results included just 22 days of the Norbert Dentressangle acquisition and one month of Bridge Terminal Transport. The most notable organic contributions to EBITDA came from our businesses in truck brokerage, expedite and last mile, where we recently won a coveted e-commerce contract.
“The integration of Norbert Dentressangle is exceeding expectations, and the rebranding to XPO Logistics is moving along quickly. We’ve already begun to realize synergies between our operations. Next month, for example, we’ll open a contract logistics facility in Pennsylvania to support a Spain-based retailer in expanding its U.S. footprint. Our European operations have served this customer for years - now it’s an important new relationship for us in North America as well. And with last mile, our customers have been asking us to bring this expertise to Europe.”
Jacobs continued, “We’re in a strong position to act on acquisition opportunities on both sides of the Atlantic, with more than $1.2 billion in cash, an untapped ABL facility, and a highly integrated global platform. Our new trajectory puts us on track to nearly triple the size of our company in four years. We’re now targeting approximately $23 billion of revenue and $1.5 billion of EBITDA in 2019.”
Source: XPO Logistics Announces Second Quarter 2015 Results (full report)
Related: Logistics Mergers & Aquistions Wave Continues
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