- Coyote acquisition completed September 16; integration well
underway and progressing smoothly. Raising annualized cost synergy
estimate to at least $40 million.
- Strengthened balance sheet while financing Coyote acquisition;
combined company leverage ratio decreased by more than 40%
- Companywide gross margin of 17.3%; Brokerage gross margin of
13.7%
- Managed Transportation was awarded more than $300 million in
new freight under management
- Last Mile stop growth continued to accelerate and grew 11%
year-over-year
RXO (NYSE: RXO) today announced its financial results for the
third quarter of 2024.
Drew Wilkerson, chief executive officer of RXO, said, “In the
third quarter, our focus on execution enabled us to achieve a solid
13.7% gross margin in our Brokerage business, despite the prolonged
soft freight market. Momentum continued within our complementary
services. In Managed Transportation, we secured more than $300
million in new business and continue to have a strong sales
pipeline of more than $1.3 billion in freight under management. In
Last Mile, we grew stops by 11% year-over-year, an acceleration
from our second-quarter growth rate.”
Wilkerson continued, “We remain focused strategically investing
in our business while controlling costs. Closing the Coyote
acquisition in the third quarter makes RXO the third-largest
freight broker in North America. Our larger scale enables us to
provide customers with more capacity and carriers with more
freight. The integration is progressing nicely and we now expect to
achieve at least $40 million in cost synergies. The additional
savings will be primarily driven by integrating technology
platforms and reducing vendor spend. We will continue to provide
our customers with superior service, comprehensive solutions,
continuous innovation and deep relationships.”
Companywide Results
RXO’s revenue was $1.04 billion in the third quarter, compared
to $976 million in the third quarter of 2023. Gross margin was
17.3%, compared to 17.7% in the third quarter of 2023.
The company reported a third-quarter 2024 GAAP net loss of $243
million, compared to a net loss of $1 million in the third quarter
of 2023. The third-quarter 2024 GAAP net loss included $248 million
in transaction, integration, restructuring and other costs.
Adjusted net income in the quarter was $7 million, compared to $6
million in the third quarter of 2023.
Adjusted EBITDA was $33 million, compared to $26 million in the
third quarter of 2023. Adjusted EBITDA margin was 3.2%, compared to
2.7% in the third quarter of 2023.
Transaction, integration, restructuring and other costs, and
amortization of intangibles, impacted GAAP earnings per share by
$1.86, net of tax. For the third quarter, RXO reported a GAAP
diluted loss per share of $1.81. Adjusted diluted earnings per
share was $0.05.
These results include the impact of RXO’s acquisition of Coyote
Logistics, which was completed on September 16, 2024.
Balance Sheet Update
The combined company’s leverage ratio for the last twelve months
(LTM) decreased by more than 40%, from 3.0 times to 1.6 times LTM
adjusted EBITDA, as a result of the equity financings associated
with the acquisition of Coyote Logistics.
Brokerage
Volume in RXO’s legacy Brokerage business, which excludes the
impact of Coyote Logistics, declined by 5% year-over-year in the
third quarter. Less-than-truckload volume increased by 13% but was
offset by a 9% decline in full truckload volume.
Legacy RXO full truckload contract volume has grown by more than
30% since the third quarter of 2021.
Consolidated brokerage gross margin was 13.7% in the third
quarter. Legacy RXO brokerage gross margin was 13.8% in the third
quarter.
Complementary Services
RXO’s complementary services gross margin was 21.5% for the
quarter, up 150 basis points year-over-year.
Managed Transportation was awarded more than $300 million in new
freight under management in the quarter. The business has more than
$1.3 billion of new freight under management in its sales
pipeline.
The number of Last Mile stops grew by 11% year-over-year.
Fourth-Quarter Outlook
RXO expects fourth-quarter 2024 adjusted EBITDA to be between
$40 million and $45 million. The company expects fourth-quarter
2024 Brokerage gross margin to be between 12% and 14%.
Conference Call
The company will hold a conference call and webcast on Thursday,
November 7 at 7 a.m. Eastern Standard Time. Participants can call
in toll-free (from U.S./Canada) at 1-800-549-8228; international
callers dial +1-289-819-1520. The conference ID is 82059.
A live webcast of the conference call will be available on the
investor relations area of the company’s website,
http://investors.rxo.com. A replay of the conference call will be
available through November 28, 2024, by calling toll-free (from
U.S./Canada) 1-888-660-6264; international callers dial
+1-289-819-1325. Use the passcode 82059##. Additionally, the call
will be archived on http://investors.rxo.com.
About RXO
RXO (NYSE: RXO) is a leading provider of asset-light
transportation solutions. RXO offers tech-enabled truck brokerage
services together with complementary solutions including managed
transportation and last mile delivery. The company combines massive
capacity and cutting-edge technology to move freight efficiently
through supply chains across North America. The company is
headquartered in Charlotte, N.C. Visit RXO.com for more information
and connect with RXO on Facebook, X, LinkedIn, Instagram and
YouTube.
Non-GAAP Financial Measures
We provide reconciliations of the non-GAAP financial measures
contained in this release to the most directly comparable measure
under GAAP, which are set forth in the financial tables attached to
this release.
The non-GAAP financial measures in this release include:
adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted
net income and adjusted diluted earnings per share (“adjusted
EPS”); and gross leverage.
We believe that these adjusted financial measures facilitate
analysis of our ongoing business operations because they exclude
items that may not reflect, or are unrelated to, RXO’s 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. These non-GAAP
financial measures should only be used as supplemental measures of
our operating performance.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income and
adjusted EPS include adjustments for transaction and integration
costs, as well as restructuring costs and other adjustments as set
forth in the attached tables. Management uses these non-GAAP
financial measures in making financial, operating and planning
decisions and evaluating RXO’s ongoing performance.
We believe that adjusted EBITDA and adjusted EBITDA margin
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 that management has determined do not reflect our core
operating activities and thereby assist investors with assessing
trends in our underlying business. We believe that adjusted net
income and adjusted EPS improve the comparability of our operating
results from period to period by removing the impact of certain
costs that management has determined do not reflect our core
operating activities, including amortization of acquisition-related
intangible assets, transaction and integration costs, restructuring
costs and other adjustments as set out in the attached tables, and
thereby may assist investors with comparisons to prior periods and
assessing trends in our underlying business. We believe that gross
leverage is an important measure of our overall liquidity position.
Gross leverage is calculated as the principal balance of our total
debt as a ratio of trailing twelve months adjusted EBITDA.
With respect to our financial outlook for the fourth quarter of
2024 adjusted EBITDA, a reconciliation of this 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 above that we exclude from this
non-GAAP 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 statement of
income and statement of cash flows prepared in accordance with GAAP
that would be required to produce such a reconciliation.
Forward-looking Statements
This release includes forward-looking statements, including
statements relating to our 2024 outlook. 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," "predict," "should," "will," "expect,"
"project," "forecast," "goal," "outlook," "target,” 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: the effect of the completion of the
transaction to acquire Coyote Logistics on the parties' business
relationships and business generally; competition and pricing
pressures; economic conditions generally; fluctuations in fuel
prices; increased carrier prices; severe weather, natural
disasters, terrorist attacks or similar incidents that cause
material disruptions to our operations or the operations of the
third-party carriers and independent contractors with which we
contract; our dependence on third-party carriers and independent
contractors; labor disputes or organizing efforts affecting our
workforce and those of our third-party carriers; legal and
regulatory challenges to the status of the third-party carriers
with which we contract, and their delivery workers, as independent
contractors, rather than employees; our ability to develop and
implement suitable information technology systems and prevent
failures in or breaches of such systems; the impact of potential
cyber-attacks and information technology or data security breaches;
issues related to our intellectual property rights; our ability to
access the capital markets and generate sufficient cash flow to
satisfy our debt obligations; litigation that may adversely affect
our business or reputation; increasingly stringent laws protecting
the environment, including transitional risks relating to climate
change, that impact our third-party carriers; governmental
regulation and political conditions; our ability to attract and
retain qualified personnel; our ability to successfully implement
our cost and revenue initiatives and other strategies; our ability
to successfully manage our growth; our reliance on certain large
customers for a significant portion of our revenue; damage to our
reputation through unfavorable publicity; our failure to meet
performance levels required by our contracts with our customers;
the inability to achieve the level of revenue growth, cash
generation, cost savings, improvement in profitability and margins,
fiscal discipline, or strengthening of competitiveness and
operations anticipated or targeted; a determination by the IRS that
the distribution or certain related separation transactions should
be treated as taxable transactions; and the impact of the
separation on our businesses, operations and results. All
forward-looking statements set forth in this release 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 release
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.
RXO, Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions, shares in thousands,
except per share amounts)
2024
2023
2024
2023
Revenue
$
1,040
$
976
$
2,883
$
2,949
Cost of transportation and services
(exclusive of depreciation and amortization)
809
742
2,208
2,224
Direct operating expense (exclusive of
depreciation and amortization)
49
59
152
179
Sales, general and administrative
expense
149
148
448
445
Depreciation and amortization expense
21
16
54
52
Transaction and integration costs
30
2
38
12
Restructuring costs
2
3
15
12
Operating income (loss)
$
(20
)
$
6
$
(32
)
$
25
Other expense
216
1
217
1
Interest expense, net
6
8
22
24
Income (loss) before income
taxes
$
(242
)
$
(3
)
$
(271
)
$
—
Income tax provision (benefit)
1
(2
)
(6
)
(2
)
Net income (loss)
$
(243
)
$
(1
)
$
(265
)
$
2
Earnings (loss) per share data
Basic
$
(1.81
)
$
(0.01
)
$
(2.15
)
$
0.02
Diluted
$
(1.81
)
$
(0.01
)
$
(2.15
)
$
0.02
Weighted-average common shares
outstanding
Basic
134,095
116,970
123,004
116,823
Diluted
134,095
116,970
123,004
119,415
RXO, Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
September 30,
December 31,
(Dollars in millions, shares in thousands,
except per share amounts)
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
55
$
5
Accounts receivable, net of $9 and $12 in
allowances, respectively
1,138
743
Other current assets
62
48
Total current assets
1,255
796
Long-term assets
Property and equipment, net of $300 and
$293 in accumulated depreciation, respectively
175
124
Operating lease assets
333
195
Goodwill
1,027
630
Identifiable intangible assets, net of
$130 and $118 in accumulated amortization, respectively
565
68
Other long-term assets
37
12
Total long-term assets
2,137
1,029
Total assets
$
3,392
$
1,825
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
572
$
414
Accrued expenses
262
199
Short-term debt and current maturities of
long-term debt
15
3
Short-term operating lease liabilities
75
53
Other current liabilities
23
13
Total current liabilities
947
682
Long-term liabilities
Long-term debt and obligations under
finance leases
352
356
Deferred tax liabilities
115
7
Long-term operating lease liabilities
261
146
Other long-term liabilities
65
40
Total long-term liabilities
793
549
Commitments and Contingencies
Equity
Preferred stock, $0.01 par value; 10,000
shares authorized; 0 shares issued and outstanding as of September
30, 2024 and December 31, 2023
—
—
Common stock, $0.01 par value; 300,000
shares authorized; 160,790 and 117,026 shares issued and
outstanding as of September 30, 2024 and December 31, 2023,
respectively
2
1
Additional paid-in capital
1,914
590
Retained earnings (Accumulated
deficit)
(259
)
6
Accumulated other comprehensive loss
(5
)
(3
)
Total equity
1,652
594
Total liabilities and equity
$
3,392
$
1,825
RXO, Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30,
(In millions)
2024
2023
Operating activities
Net income (loss)
$
(265
)
$
2
Adjustments to reconcile net income
(loss) to net cash from operating activities
Depreciation and amortization expense
54
52
Stock compensation expense
17
16
Deferred tax benefit
(12
)
(1
)
Deemed non-pro rata distribution
216
—
Other
3
4
Changes in assets and
liabilities
Accounts receivable
(8
)
114
Other assets
22
(13
)
Accounts payable
(47
)
(56
)
Accrued expenses and other liabilities
15
(48
)
Net cash provided by (used in)
operating activities
(5
)
70
Investing activities
Payment for purchases of property and
equipment
(33
)
(46
)
Business acquisition, net of cash
acquired
(1,019
)
—
Other
—
(1
)
Net cash used in investing
activities
(1,052
)
(47
)
Financing activities
Proceeds from borrowings on revolving
credit facilities
203
—
Repayment of borrowings on revolving
credit facilities
(193
)
—
Proceeds from issuance of common stock and
pre-funded warrants
1,125
—
Payment for equity issuance costs
(30
)
—
Payment for tax withholdings related to
vesting of stock compensation awards
(4
)
(12
)
Repurchase of common stock
—
(2
)
Repayment of debt and finance leases
(3
)
(3
)
Other
9
—
Net cash provided by (used in)
financing activities
1,107
(17
)
Effect of exchange rates on cash, cash
equivalents and restricted cash
—
—
Net increase in cash, cash equivalents
and restricted cash
50
6
Cash, cash equivalents, and restricted
cash, beginning of period
5
98
Cash, cash equivalents, and restricted
cash, end of period
$
55
$
104
Supplemental disclosure of cash flow
information:
Leased assets obtained in exchange for new
operating lease liabilities
$
97
$
60
Leased assets obtained in exchange for new
finance lease liabilities
—
1
Cash paid for income taxes, net
3
25
Cash paid for interest, net
13
18
RXO, Inc.
Revenue Disaggregated by
Service Offering
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(In millions)
2024
2023
2024
2023
Revenue
Truck brokerage
$
655
$
591
$
1,762
$
1,748
Last mile
268
256
765
757
Managed transportation
151
163
459
536
Eliminations
(34
)
(34
)
(103
)
(92
)
Total
$
1,040
$
976
$
2,883
$
2,949
RXO, Inc.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA and Adjusted EBITDA Margin
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
Twelve
Months Ended
September 30,
Year Ended December
31,
(In millions)
2024
2023
2024
2023
2024 4
2023
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
Net income (loss)
$
(243
)
$
(1
)
$
(265
)
$
2
$
(263
)
$
4
Interest expense, net
6
8
22
24
30
32
Income tax provision (benefit)
1
(2
)
(6
)
(2
)
(4
)
—
Depreciation and amortization expense
21
16
54
52
69
67
Transaction and integration costs
30
2
38
12
38
12
Restructuring and other costs (3)
218
3
233
13
237
17
Adjusted EBITDA (1)
$
33
$
26
$
76
$
101
$
107
$
132
Revenue
$
1,040
$
976
$
2,883
$
2,949
$
3,861
$
3,927
Adjusted EBITDA margin (1) (2)
3.2
%
2.7
%
2.6
%
3.4
%
2.8
%
3.4
%
(1)
See the “Non-GAAP Financial Measures”
section of the press release.
(2)
Adjusted EBITDA margin is calculated as
Adjusted EBITDA divided by Revenue.
(3)
Other for the three, nine and trailing
twelve months ended September 30, 2024 reflects a one-time charge
of $216 million representing a deemed non-pro rata distribution in
connection with the private placement common stock issuance
completed in August 2024.
(4)
Trailing twelve months ended September 30,
2024 is calculated as the nine months ended September 30, 2024 plus
the twelve months ended December 31, 2023 less the nine months
ended September 30, 2023.
RXO, Inc.
Reconciliation of Net Income
(Loss) to Adjusted Net Income and Adjusted Diluted Earnings Per
Share
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions, shares in thousands,
except per share amounts)
2024
2023
2024
2023
Reconciliation of Net Income (Loss) to
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Net income (loss)
$
(243
)
$
(1
)
$
(265
)
$
2
Amortization of intangible assets
5
4
11
10
Transaction and integration costs
30
2
38
12
Restructuring and other costs (3)
218
3
233
13
Income tax associated with adjustments
above (1)
(3
)
(2
)
(10
)
(8
)
Adjusted net income (2)
$
7
$
6
$
7
$
29
Adjusted diluted earnings per share
(2)
$
0.05
$
0.05
$
0.06
$
0.24
Weighted-average shares
outstanding
Diluted
136,968
119,416
125,536
119,415
(1)
The tax impact of non-GAAP adjustments
represents the tax expense calculated using the applicable
statutory tax rate that would have been incurred had these
adjustments been excluded from net income (loss). Our estimated tax
rate on non-GAAP adjustments may differ from our GAAP tax rate due
to differences in the methodologies applied.
(2)
See the “Non-GAAP Financial Measures”
section of the press release.
(3)
Other for the three and nine months ended
September 30, 2024 reflects a one-time charge of $216 million
representing a deemed non-pro rata distribution in connection with
the private placement common stock issuance completed in August
2024.
RXO, Inc.
Calculation of Gross Margin
and Gross Margin as a Percentage of Revenue
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(Dollars in millions)
2024
2023
2024
2023
Revenue
Truck brokerage
$
655
$
591
$
1,762
$
1,748
Complementary services (1)
419
419
1,224
1,293
Eliminations
(34
)
(34
)
(103
)
(92
)
Revenue
$
1,040
$
976
$
2,883
$
2,949
Cost of transportation and services
(exclusive of depreciation and amortization)
Truck brokerage
$
564
$
501
$
1,510
$
1,474
Complementary services (1)
279
275
801
842
Eliminations
(34
)
(34
)
(103
)
(92
)
Cost of transportation and services
(exclusive of depreciation and amortization)
$
809
$
742
$
2,208
$
2,224
Direct operating expense (exclusive of
depreciation and amortization)
Truck brokerage
$
1
$
1
$
1
$
1
Complementary services (1)
48
58
151
178
Direct operating expense (exclusive of
depreciation and amortization)
$
49
$
59
$
152
$
179
Direct depreciation and amortization
expense
Truck brokerage
$
—
$
—
$
1
$
—
Complementary services (1)
2
2
6
5
Direct depreciation and amortization
expense
$
2
$
2
$
7
$
5
Gross margin
Truck brokerage
$
90
$
89
$
250
$
273
Complementary services (1)
90
84
266
268
Gross margin
$
180
$
173
$
516
$
541
Gross margin as a percentage of
revenue
Truck brokerage
13.7
%
15.1
%
14.2
%
15.6
%
Complementary services (1)
21.5
%
20.0
%
21.7
%
20.7
%
Gross margin as a percentage of
revenue
17.3
%
17.7
%
17.9
%
18.3
%
(1)
Complementary services include
last mile and managed transportation services.
RXO, Inc.
Reconciliation of Bank
Adjusted EBITDA; Calculation of Gross Leverage
(Unaudited)
September 30,
(Dollars in millions)
2024
Reconciliation of bank adjusted
EBITDA
Adjusted EBITDA (1) (2) for the trailing
twelve months ended September 30, 2024
$
107
Adjustments per credit agreement (3) for
the trailing twelve months ended September 30, 2024
25
Expected synergies associated with Coyote
acquisition
40
Coyote Adjusted EBITDA for the period
October 1, 2023 thru September 15, 2024
66
Bank adjusted EBITDA
238
Expected synergies associated with Coyote
acquisition
(40
)
Coyote Adjusted EBITDA for the period
October 1, 2023 thru September 15, 2024
(66
)
Coyote Adjusted EBITDA for the period
September 16, 2024 thru September 30, 2024
(2
)
Bank adjusted EBITDA - legacy
RXO
130
Calculation of gross leverage
Total debt, principal balance and
other
$
388
Bank adjusted EBITDA
238
Gross leverage (1)
1.6x
Calculation of gross leverage - legacy
RXO
Total debt, principal balance and
other
$
388
Bank adjusted EBITDA - legacy RXO
130
Gross leverage (1) - legacy RXO
3.0x
(1)
See the “Non-GAAP Financial Measures”
section of the press release.
(2)
See Reconciliation of Net Income (Loss) to
Adjusted EBITDA.
(3)
Represents stock compensation expense and
other non-recurring items included in Sales, general and
administrative expense.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107034070/en/
Media Nina Reinhardt nina.reinhardt@rxo.com
Investor Kevin Sterling kevin.sterling@rxo.com
RXO (NYSE:RXO)
過去 株価チャート
から 12 2024 まで 1 2025
RXO (NYSE:RXO)
過去 株価チャート
から 1 2024 まで 1 2025
