XPO Logistics Releases Preliminary Results for Fourth Quarter 2013; Announces 15M Share Offering

XPO Logistics (NYSE: XPO) today announced the following preliminary expectedfinancial results for the fourth quarter ended December 31, 2013. Based on the information available as of January 27, 2014 and theexpectations outlined below, the company has achieved its 2013 targetsfor an annual revenue run rate of more than $1 billion as of December31; and positive earnings before interest, taxes, depreciation andamortization ("EBITDA") for the fourth quarter. The company further expects its financial results for the fourth quarterended December 31, 2013, to include: -- Total revenue in the range of $256.0 million and $258.0 million, reflecting an increase of 135% to 137%, respectively, from the fourth quarter of 2012. -- Gross profit in the range of $52.5 million and $53.5 million, reflecting a gross margin percentage of 20.5% to 20.7%, an increase of 610 to 630 basis points from the gross margin percentage of 14.4% for the fourth quarter of 2012. The increase in gross margin percentage reflects increases in gross margin percentage across all of the company's segments. -- Truckload brokerage gross margin as a percentage of revenue, excluding last-mile operations, in the range of 14.4% to 14.7%. This represents a sequential improvement from 13.6% for the third quarter of 2013, and a year-over-year improvement from 13.4% for the fourth quarter of 2012. -- Positive EBITDA performance in the quarter after the followingexpected negative impacts: $1.1 million to $1.3 million of transactioncosts; $0.9 million to $1.1 million of litigation costs; and $1.3million to $1.5 million of non-cash share based compensation cost. The above information is subject to change as the company completes itsfinancial close process and its outside auditors audit such information. About XPO Logistics, Inc. XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providersof transportation logistics services in North America: the fourthlargest freight brokerage firm, the largest provider of heavy goods,last-mile logistics, and the largest manager of expedited shipments,with growing positions in managed transportation, global freightforwarding, less-than-truckload brokerage and intermodal. The companyfacilitates more than 20,000 deliveries a day throughout the U.S.,Mexico and Canada. XPO Logistics currently has 92 locations and over 2,200 employeesoperating in the United States and Canada. Its three business segments -freight brokerage, expedited transportation and freight forwarding - userelationships with ground, sea and air carriers to serve over 9,500customers in the manufacturing, industrial, retail, commercial, lifesciences and government sectors. The company has approximately 400trucks under exclusive contract and over 24,000 additional relationshipswith carriers that provide capacity. For more information:www.xpologistics.com Forward Looking Statements This document includes forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended. All statements otherthan statements of historical fact are, or may be deemed to be,forward-looking statements. In some cases, forward-looking statementscan 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" or the negative of these terms or other comparable terms.However, the absence of these words does not mean that the statementsare not forward-looking. These forward-looking statements are based oncertain assumptions and analyses made by us in light of our experienceand our perception of historical trends, current conditions and expectedfuture developments, as well as other factors we believe are appropriatein the circumstances. These forward-looking statements are subject to known and unknown risks,uncertainties and assumptions that may cause actual results, levels ofactivity, performance or achievements to be materially different fromany future results, levels of activity, performance or achievementsexpressed or implied by such forward-looking statements. Factors thatmight cause or contribute to a material difference include, but are notlimited to, those discussed in our filings with the Securities andExchange Commission and the following: economic conditions generally;competition; our ability to find other suitable acquisition candidatesand execute our acquisition strategy; Pacer International, Inc.("Pacer") shareholder approval and the satisfaction of other closingconditions to the consummation of our pending acquisition of Pacer; theexpected closing date for the acquisition of Pacer; the expected impactof the acquisition of Pacer, including the expected impact on theCompany's results of operations; our ability to raise debt and equitycapital; our ability to attract and retain key employees to execute ourgrowth strategy, including retention of Pacer's management team;litigation, including litigation related to alleged misclassification ofindependent contractors; our ability to develop, implement and maintaina suitable information technology system; our ability to maintainpositive relationships with our network of third party transportationproviders; our ability to retain our and Pacer's largest customers; ourability to successfully integrate Pacer and other acquired businesses;and governmental regulation. All forward-looking statements set forthherein are qualified by these cautionary statements and there can be noassurance that the actual results or developments anticipated by us willbe realized or, even if substantially realized, that they will have theexpected consequences to or effects on us or our business or operations.Forward-looking statements set forth in this press release speak only asof the date hereof and we do not undertake any obligation to updateforward-looking statements to reflect subsequent events or circumstances,changes in expectations or the occurrence of unanticipated events,except to the extent required by law.