Echo Global Logistics Announces Second Quarter 2013 Results
For the second quarter of 2013, Echo reported total revenue of
"Echo posted another quarter of double digit revenue growth," commented
Second Quarter Highlights
- Total revenue increased 21.0% to
$224.1 million from the second quarter of 2012. - Non-GAAP operating income increased 3.9% to
$6.4 million from the second quarter of 2012.* - Non-GAAP operating margin was 16.2%, up 161 basis points from the first quarter of 2013 but down 156 basis points from the second quarter of 2012.*
- Non-GAAP net income increased 3.0% to
$3.9 million from the second quarter of 2012.* - Non-GAAP fully diluted EPS was
$0.17 , unchanged from the second quarter of 2012.*
* All non-GAAP financial measures exclude the effects of changes in contingent consideration payable and non-recurring settlement costs. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS" included in this release.
Summarized financial results and select operating metrics follow:
Three months ended |
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2013 | 2012 | Change | |||||||||||||
Amounts in 000,000s, except per share data | (Unaudited) | ||||||||||||||
Revenue | |||||||||||||||
Transactional | $ | 158.0 | $ | 128.4 | 22.9 | % | |||||||||
Enterprise | $ | 66.1 | $ | 56.8 | 16.5 | % | |||||||||
Total Revenue | 224.1 | 185.2 | 21.0 | % | |||||||||||
Net revenue | 39.7 | 34.8 | 14.0 | % | |||||||||||
Operating expenses | |||||||||||||||
Commissions | 10.0 | 9.9 | 0.4 | % | |||||||||||
Selling, general and administrative | 20.7 | 16.5 | 25.1 | % | |||||||||||
Depreciation and amortization | 2.6 | 2.2 | 19.5 | % | |||||||||||
Total operating expenses(1) | 33.3 | 28.6 | 16.1 | % | |||||||||||
Non-GAAP Operating income (1) | 6.4 | 6.2 | 3.9 | % | |||||||||||
Other expense | 0.1 | 0.1 | -16.8 | % | |||||||||||
Non-GAAP Income before taxes(1) | 6.3 | 6.1 | 4.4 | % | |||||||||||
Income taxes (1) | 2.4 | 2.3 | 6.8 | % | |||||||||||
Non-GAAP net income(2) | 3.9 | 3.8 | 3.0 | % | |||||||||||
Non-GAAP Fully Diluted EPS(2) | $ | 0.17 | $ | 0.17 | 0.3 | % | |||||||||
Diluted shares | 23.4 | 22.8 | |||||||||||||
Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS | |||||||||||||||
Non-GAAP Operating Income(1) | 6.4 | 6.2 | 3.9 | % | |||||||||||
Change in contingent consideration payable | 0.4 | 0.1 | 192.1 | % | |||||||||||
Non-recurring settlement costs | - | (0.7 | ) | -100.0 | % | ||||||||||
Operating Income | 6.8 | 5.6 | 21.9 | % | |||||||||||
Non-GAAP Operating Margin (1) | 16.2 | % | 17.8 | % | (156 | ) | bps | ||||||||
Effect of change in contingent consideration payable and non-recurring settlements costs | 0.9 | % | -1.8 | % | 267 | bps | |||||||||
Operating Margin (% of Net Revenue) | 17.1 | % | 16.0 | % | 111 | bps | |||||||||
Non-GAAP Net Income(2) | 3.9 | 3.8 | 3.0 | % | |||||||||||
Change in contingent consideration payable and non-recurring settlement costs, net of tax effect | 0.2 | (0.4 | ) | 154.1 | % | ||||||||||
Net Income | 4.1 | 3.4 | 21.2 | % | |||||||||||
Non-GAAP Fully Diluted EPS(2) | $ | 0.17 | $ | 0.17 | 0.3 | % | |||||||||
Change in contingent consideration payable and non-recurring settlement costs, net of tax effect | 0.01 | (0.02 | ) | 152.7 | % | ||||||||||
Fully diluted EPS | $ | 0.18 | $ | 0.15 | 18.0 | % | |||||||||
Operating Metrics | |||||||||||||||
Net revenue margin | 17.7 | % | 18.8 | % | (109 | ) | bps | ||||||||
Non-GAAP Operating margin (% of net revenue) (1) | 16.2 | % | 17.8 | % | (156 | ) | bps | ||||||||
Shipment volume | 472,798 | 412,258 | 14.7 | % | |||||||||||
Total employees | 1,287 | 1,225 | 5.1 | % | |||||||||||
Sales employees and agents | 812 | 789 | 2.9 | % | |||||||||||
Less Than Truckload (LTL) Revenue % | 41.7 | % | 46.0 | % | (423 | ) | bps | ||||||||
Truckload (TL) Revenue % | 45.3 | % | 43.6 | % | 172 | bps | |||||||||
Intermodal Revenue % | 7.1 | % | 3.6 | % | 349 | bps | |||||||||
(1) Amounts shown exclude the effects of changes in contingent consideration payable and non-recurring settlement costs. | |||||||||||||||
(2) Amounts shown exclude the tax effected changes in contingent consideration payable and non-recurring settlement costs. | |||||||||||||||
"Increased operating leverage and improved sales force productivity reflect the traction our sales organization is gaining in the marketplace as we continue to execute on our strategy to become the premier multimodal transportation service provider to the small and middle market shipper," said
Business Outlook
"Through the first few weeks of
Conference Call
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Non-GAAP Financial Measures
This release includes the following financial measures defined as "non-GAAP financial measures" by the
Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS are used by management in its financial and operational decision-making and evaluation of overall operating performance. These measures may be different from similar measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS" included in this release.
Forward-Looking Statements
This release contains statements relating to future results. These statements are forward-looking statements under the federal securities laws. We can give no assurance that any future results discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. For a discussion of important factors that could affect our actual results, please refer to our
Condensed Consolidated Statements of Operations | |||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
REVENUE | $ | 224,050,929 | $ | 185,230,701 | $ | 428,028,307 | $ | 353,799,806 | |||||||
COSTS AND EXPENSES | |||||||||||||||
Transportation costs | 184,390,955 | 150,430,597 | 349,917,054 | 286,329,924 | |||||||||||
Selling, general, and administrative expenses | 30,280,576 | 27,062,901 | 61,287,720 | 52,346,845 | |||||||||||
Depreciation and amortization | 2,612,468 | 2,186,376 | 5,207,779 | 4,215,653 | |||||||||||
INCOME FROM OPERATIONS | 6,766,930 | 5,550,827 | 11,615,754 | 10,907,384 | |||||||||||
OTHER EXPENSE | (106,730 | ) | (128,338 | ) | (200,946 | ) | (237,974 | ) | |||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 6,660,200 | 5,422,489 | 11,414,808 | 10,669,410 | |||||||||||
INCOME TAX EXPENSE | (2,537,583 | ) | (2,019,655 | ) | (4,315,559 | ) | (3,954,786 | ) | |||||||
NET INCOME | $ | 4,122,617 | $ | 3,402,834 | $ | 7,099,249 | $ | 6,714,624 | |||||||
Basic net income per share | $ | 0.18 | $ | 0.15 | $ | 0.31 | $ | 0.30 | |||||||
Diluted net income per share | $ | 0.18 | $ | 0.15 | $ | 0.30 | $ | 0.29 |
Condensed Consolidated Balance Sheets | |||||||
2013 | 2012 | ||||||
(Unaudited) | |||||||
Cash and cash equivalents | $ | 46,893,227 | $ | 41,780,984 | |||
Accounts receivable, net of allowance for doubtful accounts | 112,490,210 | 96,623,553 | |||||
Prepaid expenses | 1,436,310 | 2,491,955 | |||||
Other current assets | 2,505,388 | 843,009 | |||||
Total long term assets | 78,296,992 | 77,743,563 | |||||
Total assets | $ | 241,622,127 | $ | 219,483,064 | |||
Accounts payable - trade | $ | 70,642,002 | $ | 58,889,437 | |||
Current maturities of capital lease obligations | 8,296 | 24,086 | |||||
Other current liabilites | 11,475,289 | 12,074,645 | |||||
Deferred income taxes | 3,154,386 | 1,915,847 | |||||
Long term liabilities | 5,717,740 | 5,593,639 | |||||
Stockholders' equity | 150,624,414 | 140,985,410 | |||||
Total liabilities and stockholders' equity | $ | 241,622,127 | $ | 219,483,064 |
Condensed Consolidated Statements of Cash Flows | ||||||||
Six Months Ended |
||||||||
2013 | 2012 | |||||||
(Unaudited) | ||||||||
Net cash provided by operating activities | $ | 10,928,867 | $ | 5,648,938 | ||||
Net cash used in investing activities | (6,233,909 | ) | (5,245,330 | ) | ||||
Net cash provided by (used in) financing activities | 417,285 | (70,328 | ) | |||||
Increase in cash and cash equivalents | 5,112,243 | 333,280 | ||||||
Cash and cash equivalents, beginning of period | 41,780,984 | 47,007,309 | ||||||
Cash and cash equivalents, end of period | $ | 46,893,227 | $ | 47,340,589 | ||||
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