ADDISON, Texas, Nov. 06, 2018 (GLOBE NEWSWIRE) -- Daseke, Inc. DSKE DSKEW, the largest flatbed, specialized transportation and logistics solutions company in North America, today reported financial results for the third quarter ended September 30, 2018.
Third Quarter 2018 Highlights vs. Same Year-Ago Quarter
- Revenue increased 99% to a record $461.6 million. This represents the fourth consecutive quarter that year-over-year revenue growth has exceeded 70%.
- Flatbed Solutions revenue up 112% to $181.5 million; Specialized Solutions revenue up 92% to $283.9 million1.
- Revenue up 18% excluding acquisitions.
- Net income improved significantly to $2.2 million, or $0.01 per share, compared to $0.1 million, or $0.0 per share ($0.03 net loss per share attributable to common stockholders).
- Adjusted EBITDA2 increased 96% to a $52.8 million (Acquisition Adjusted3 EBITDA up 18%). This represents the fourth consecutive quarter that year-over-year Adjusted EBITDA growth has exceeded 50%. Both Flatbed Solutions and Specialized Solutions realized third quarter Adjusted EBITDA growth of 78% and 101%, respectively.
Management Commentary
"We reported another record quarter with significant expansion in revenue and profitability," said Don Daseke, chairman and CEO. "Our operating companies continued to perform in a robust rate and high-demand market environment that we expect to continue based upon strong demand from our blue-chip customer base. As important, our strategic growth plan is producing the intended results as we reported an 18% increase in Acquisition Adjusted EBITDA. In fact, this was our third consecutive quarter of double-digit Acquisition Adjusted EBITDA expansion. Driving our results were strong growth in both our flatbed and specialized segments, and continued expansion in rate per mile and revenue per tractor.
"During the quarter, we also made progress on various operational initiatives. On the M&A integration front, we have owned Aveda since June and have already experienced strong growth. During the four months we've owned Aveda, revenue and adjusted EBITDA have grown by 23% and 54%, respectively. We have leveraged our significant purchasing power to drive savings in fuel, insurance and employee benefits. Additionally, our operational expertise allowed us to add owner-operators to reduce Aveda's third-party spend, increasing margins. Builders Transportation has also benefited from Daseke platform synergies and strong market demand, already contributing to our third quarter Adjusted EBITDA in a healthy domestic steel market for our business.
"We also made positive strides on driver retention. Our pilot program in the Pacific Northwest continued to produce the intended results, with 97% seated trucks six months into the program. This is accomplished by implementing a more traditional salary and bonus pay structure. These programs are designed and implemented with the drivers in mind by our stellar teams at our operating divisions, and we applaud them on these early results. Programs like this are why Daseke's turnover rates are improving while the industry continues to worsen. The tight driver market is really showing Daseke's strength and competitive advantage.
"Although we are committed to an opportunistic M&A strategy and our pipeline remains robust, we do not anticipate any further transactions for at least several months as we continue to focus on integration and organic growth. Given our performance to date, as well as our outlook, we believe Daseke is very well-positioned to accelerate the organic growth of our operating companies and leverage our scale in 2019 and beyond."
_________
1 Net of eliminations, Flatbed Solutions revenue was $180.7 million and Specialized Solutions revenue was $280.9 million.
2 See Non-GAAP Measures for more information regarding Adjusted EBITDA measures.
3 See Non-GAAP Measures for more information regarding Acquisition Adjusted EBITDA measures.
Third Quarter 2018 Financial Results
Revenue in the third quarter of 2018 increased 99% to $461.6 million compared to $231.3 million in the year-ago quarter. The increase was primarily driven by the acquisition of seven operating companies of scale since July 2017. Excluding the impact of these acquisitions, revenue increased 18% largely due to an improvement in rates in both the Flatbed and Specialized Solutions segments.
Net income in the third quarter of 2018 improved significantly to $2.2 million, or $0.01 per share, compared to $0.1 million, or $0.0 per share, in the third quarter of 2017 ($0.03 net loss per share attributable to common stockholders). Acquisition Adjusted net income in the third quarter of 2018 was $2.7 million compared to $4.5 million in the third quarter of 2017 due primarily to a $2.2 million income tax benefit in the year-ago quarter.
Adjusted EBITDA increased 96% to $52.8 million compared to $27.0 million in the third quarter of 2017, and Acquisition Adjusted EBITDA increased 18% to $54.0 million. The significant improvements in net income and Adjusted EBITDA were primarily driven by the aforementioned acquisitions and rate improvements.
Segment Results
Flatbed Solutions - Flatbed Solutions revenue in the third quarter of 2018 increased 112% to $181.5 million1 compared to $85.6 million in the year-ago quarter. This was driven by two flatbed acquisitions of scale since December 2017, as well as a 10% increase in flatbed rate per mile and 9% growth in revenue per tractor. Excluding the impact of these acquisitions, rates were up 9% compared to the year-ago quarter. Operating income was $12.2 million, up 157% from $4.8 million in the third quarter of 2017. Adjusted EBITDA increased 78% to $21.7 million compared to $12.2 million in the year-ago quarter.
Specialized Solutions - Specialized Solutions revenue in the third quarter of 2018 increased 92% to $283.9 million1 compared to $147.6 million in the year-ago quarter. The increase was driven by five specialized acquisitions of scale since July 2017, as well as a 31% increase in specialized rate per mile and 24% growth in revenue per tractor. Excluding the impact of acquisitions, rates were up 10% compared to the year-ago quarter. Operating income was $11.8 million, up 65% from $7.2 million in the third quarter of 2017. Adjusted EBITDA increased 101% to $40.5 million compared to $20.1 million in the year-ago quarter.
2018 Outlook
Daseke continues to expect revenue in 2018 to be approximately $1.55 billion compared to $846.3 million in 2017, and Adjusted EBITDA to increase 85% to approximately $170 million compared to $91.9 million in 2017. Net replacement capital expenditures in 2018 are expected to be approximately $85 million, which takes into consideration recently acquired companies.
Conference Call
Daseke will hold a conference call today at 11:00 a.m. Eastern time to discuss its third quarter 2018 results.
Date: Tuesday, November 6, 2018
Time: 11:00 a.m. Eastern time (10:00 a.m. Central time)
Toll-free dial-in number: 1-855-242-9918
International dial-in number: 1-414-238-9803
Conference ID: 3688486
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of Daseke's website at investor.daseke.com. Presentation materials will be posted at the time of the call at investor.daseke.com as well.
A replay of the conference call will be available after 2:00 p.m. Eastern time on the same day through November 20, 2018.
Toll-free replay number: 1-855-859-2056
International replay number: 1-404-537-3406
Replay ID: 3688486
About Daseke, Inc.
Daseke, Inc. is the leading consolidator and the largest flatbed and specialized transportation and logistics company in North America. Daseke offers comprehensive, best-in-class services to many of the world's most respected industrial shippers through experienced people, a fleet of approximately 6,000 tractors and 13,000 flatbed and specialized trailers, and a million-plus square feet of industrial warehousing space. For more information, please visit www.daseke.com.
Use of Non-GAAP Measures
This news release includes non‐GAAP financial measures for Daseke and its operating segments, including Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted, revenue, net loss and EBITDA (Acquisition Adjusted Measures), free cash flow and adjusted operating ratio. Other companies in Daseke's industry may define these non‐GAAP measures differently than Daseke does, and as a result, it may be difficult to use these non‐GAAP measures to compare the performance of those companies to Daseke's performance. Daseke's management does not consider these non‐GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP and instead relies primarily on Daseke's GAAP results and uses non‐GAAP measures supplementally.
Daseke defines Adjusted EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest expense, including other fees and charges associated with indebtedness, net of interest income, (iii) income taxes, (iv) acquisition‐related transaction expenses (including due diligence costs, legal, accounting and other advisory fees and costs, retention and severance payments and financing fees and expenses), (v) stock‐based compensation, (vi) non‐cash impairments, and (vii) expenses related to the business combination that was consummated in February 2017 and related transactions. Daseke defines Adjusted EBITDAR as Adjusted EBITDA plus tractor operating lease charges. Daseke defines Acquisition Adjusted as (a) our actual revenue, net loss or Adjusted EBITDA, as applicable, for the applicable measurement period and (b) the actual revenue, net loss or Adjusted EBITDA, as applicable, of each company acquired in 2017 and in 2018 (excluding the Kelsey Trail acquisition), as though those acquisitions were completed on the first date of the applicable measurement period, based on the company's internal financial statements for the period prior to Daseke's acquisition. These adjusted amounts (i) have not been prepared in accordance with the requirements of Regulation S‐X or any other securities laws relating to the presentation of pro forma financial information, (ii) do not reflect any pro forma adjustments, (iii) are presented for informational purposes only, (iv) are not necessarily indicative of what our result of operations would have been had such acquisitions been completed as though those acquisitions were completed on the first date of the applicable measurement period, and (v) do not purport to project our future operating results.
Daseke defines Excluded Acquisition as all acquisitions in 2017, excluding (a) all acquisitions after August 31, 2017; however, including (b) Belmont and Kelsey Trail. Belmont and Kelsey Trails' operations and financial results have been fully integrated into Smokey Point Distributing and Big Freight Systems, respectively, therefore, they cannot be broken out.
Daseke defines free cash flow as Adjusted EBITDA less net capital expenditures (capital expenditures less proceeds from equipment sales). Daseke's board of directors and executive management team use Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures as key measures of its performance and for business planning.
Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures assist them in comparing Daseke's operating performance over various reporting periods on a consistent basis because they remove from Daseke's operating results the impact of items that, in their opinion, do not reflect Daseke's core operating performance. Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures also allows Daseke to more effectively evaluate its operating performance by allowing it to compare the results of operations against its peers without regard to its or its peers' financing method or capital structure.
Daseke believes its presentation of Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures is useful because they provide investors and industry analysts the same information that Daseke uses internally for purposes of assessing its core operating performance. However, Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures are not substitutes for, or more meaningful than, net income (loss), cash flows from operating activities, operating income or any other measure prescribed by GAAP, and there are limitations to using non‐GAAP measures such as Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures. Certain items excluded from Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital, tax structure and the historic costs of depreciable assets. Adjusted EBITDA, Adjusted EBITDAR and Acquisition Adjusted Measures should not be considered measures of the income generated by Daseke's business or discretionary cash available to it to invest in the growth of its business.
Daseke's board of directors and executive management team use free cash flow to assess the Company's performance and ability to fund operations and make additional investments. Free cash flow represents the cash that its business generates from operations, before taking into account cash movements that are nonoperational. Daseke believes its presentation of free cash flow is useful because it is one of several indicators of Daseke's ability to service debt, make investments and/or return capital to its stockholders. Daseke also believes that free cash flow is one of several benchmarks used by investors and industry analysts for comparison of performance in its industry, although Daseke's measure of free cash flow may not be directly comparable to similar measures reported by other companies. Furthermore, free cash flow is not a substitute for, or more meaningful than, net income (loss), cash flows from operating activities, operating income or any other measure prescribed by GAAP, and there are limitations to using non‐GAAP measures such as free cash flow. Accordingly, free cash flow should not be considered a measure of the income generated by Daseke's business or discretionary cash available to it to invest in the growth of its business.
Daseke defines adjusted operating ratio as (a) total operating expenses (i) less fuel surcharges, acquisition related transaction expenses, non‐cash impairment charges and withdrawn initial public offering‐related expenses and (ii) further adjusted for the net impact of the step‐up in basis resulting from acquisitions (such as increased depreciation and amortization expense), as a percentage of (b) total revenue excluding fuel surcharge revenue.
Daseke's board of directors and executive management team view adjusted operating ratio, and its key drivers of revenue quality, growth, expense control and operating efficiency, as a very important measure of Daseke's performance. Daseke believes fuel surcharge is often volatile and eliminating the impact of this source of revenue (by eliminating fuel surcharge from revenue and by netting fuel surcharge against fuel expense) affords a more consistent basis for comparing its results of operations between periods. Daseke also believes excluding acquisition‐related transaction expenses, additional depreciation and amortization expenses as a result of acquisitions, non‐cash impairments and withdrawn initial public offering‐related expenses enhances the comparability of its performance between periods.
Daseke believes its presentation of adjusted operating ratio is useful because it provides investors and industry analysts the same information that Daseke uses internally for purposes of assessing its core operating profitability. However, adjusted operating ratio is not a substitute for, or more meaningful than, operating ratio, operating margin or any other measure derived solely from GAAP measures, and there are limitations to using non‐GAAP measures such as adjusted operating ratio. You can find the reconciliation of these non‐GAAP measures to the nearest comparable GAAP measures in the Reconciliation of Non‐GAAP Measures tables below. We have not reconciled non‐GAAP forward looking measures to their corresponding GAAP measures because certain items that impact these measures are unavailable or cannot be reasonably predicted without unreasonable efforts.
Forward‐Looking Statements
This news release includes "forward‐looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward‐looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "will" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Projected financial information, including our guidance outlook, are forward-looking statements. These forward‐looking statements are based on current information and expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward‐looking statements should not be relied upon as representing Daseke's views as of any subsequent date, and we do not undertake any obligation to update forward‐looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward‐looking statements. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward‐looking statements. Some factors that could cause actual results to differ include, but are not limited to, general economic and business risks (such as downturns in customers' business cycles and disruptions in capital and credit markets), driver shortages and increases in driver compensation or owner‐operator contracted rates, loss of senior management or key operating personnel, Daseke's ability to recognize the anticipated benefits of recent acquisitions, including the Aveda transaction, its ability to identify and execute future acquisitions successfully, seasonality and the impact of weather and other catastrophic events, fluctuations in the price or availability of diesel fuel, increased prices for, or decreases in the availability of, new revenue equipment and decreases in the value of used revenue equipment, Daseke's ability to generate sufficient cash to service all of its indebtedness, restrictions in its existing and future debt agreements, increases in interest rates, changes in existing laws or regulations, including environmental and worker health safety laws and regulations and those relating to tax rates or taxes in general, the impact of governmental regulations and other governmental actions related to Daseke and its operations, litigation and governmental proceedings, and insurance and claims expenses. For additional information regarding known material factors that could cause our actual results to differ from those expressed in forward‐looking statements, please see Daseke's filings with the Securities and Exchange Commission, available at www.sec.gov, including Daseke's Annual Report on Form 10‐K for the year ended December 31, 2017, particularly the section "Risk Factors."
Investor Relations:
Liolios
Cody Slach or Sean Mansouri
Tel 1-949-574-3860
DSKE@liolios.com
| Daseke, Inc. and Subsidiaries | ||||||
| Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands, except share and per share data) | ||||||
| September 30, | December 31, | |||||
| 2018 | 2017 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 18,077 | $ | 90,679 | ||
| Accounts receivable, net | 233,983 | 127,368 | ||||
| Drivers' advances and other receivables | 6,045 | 4,792 | ||||
| Current portion of net investment in sales-type leases | 15,744 | 10,979 | ||||
| Parts supplies | 5,366 | 4,653 | ||||
| Prepaid and other current assets | 33,458 | 28,240 | ||||
| Total current assets | 312,673 | 266,711 | ||||
| Property and equipment, net | 562,659 | 429,639 | ||||
| Intangible assets, net | 212,009 | 93,120 | ||||
| Goodwill | 274,291 | 302,702 | ||||
| Other long-term assets | 44,902 | 33,496 | ||||
| Total assets | $ | 1,406,534 | $ | 1,125,668 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 25,534 | $ | 12,488 | ||
| Accrued expenses and other liabilities | 54,370 | 25,876 | ||||
| Accrued payroll, benefits and related taxes | 20,315 | 14,004 | ||||
| Accrued insurance and claims | 14,351 | 12,644 | ||||
| Current portion of long-term debt | 58,407 | 43,056 | ||||
| Total current liabilities | 172,977 | 108,068 | ||||
| Line of credit | 15,664 | 4,561 | ||||
| Long-term debt, net of current portion | 594,360 | 569,740 | ||||
| Deferred tax liabilities | 134,057 | 90,434 | ||||
| Other long-term liabilities | 20,960 | 1,632 | ||||
| Total liabilities | 938,018 | 774,435 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Series A convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized; 650,000 shares issued with liquidation preference of $65,000 at September 30, 2018 and December 31, 2017 | 65,000 | 65,000 | ||||
| Common stock, par value $0.0001 per share; 250,000,000 shares authorized, 64,445,371 and 48,712,288 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 6 | 5 | ||||
| Additional paid-in-capital | 432,795 | 277,931 | ||||
| Retained earnings (accumulated deficit) | (29,710 | ) | 7,338 | |||
| Accumulated other comprehensive income | 425 | 959 | ||||
| Total stockholders' equity | 468,516 | 351,233 | ||||
| Total liabilities and stockholders' equity | $ | 1,406,534 | $ | 1,125,668 | ||
| Daseke, Inc. and Subsidiaries | |||||||||||||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Revenues: | |||||||||||||||
| Freight | $ | 329,474 | $ | 171,245 | $ | 842,128 | $ | 446,454 | |||||||
| Brokerage | 82,203 | 34,198 | 188,432 | 83,723 | |||||||||||
| Logistics | 11,656 | 7,871 | 31,265 | 10,571 | |||||||||||
| Fuel surcharge | 38,256 | 18,008 | 104,244 | 48,331 | |||||||||||
| Total revenue | 461,589 | 231,322 | 1,166,069 | 589,079 | |||||||||||
| Operating expenses: | |||||||||||||||
| Salaries, wages and employee benefits | 114,776 | 64,955 | 287,735 | 174,253 | |||||||||||
| Fuel | 38,931 | 24,734 | 103,666 | 64,423 | |||||||||||
| Operations and maintenance | 51,494 | 35,132 | 126,427 | 86,332 | |||||||||||
| Communications | 920 | 539 | 2,426 | 1,491 | |||||||||||
| Purchased freight | 170,548 | 61,598 | 429,948 | 148,945 | |||||||||||
| Administrative expenses | 16,075 | 8,619 | 41,290 | 24,019 | |||||||||||
| Sales and marketing | 1,007 | 488 | 2,295 | 1,425 | |||||||||||
| Taxes and licenses | 4,681 | 2,963 | 12,265 | 7,855 | |||||||||||
| Insurance and claims | 12,738 | 6,351 | 32,350 | 15,516 | |||||||||||
| Acquisition-related transaction expenses | 601 | 773 | 2,442 | 2,255 | |||||||||||
| Depreciation and amortization | 36,800 | 19,805 | 93,748 | 53,758 | |||||||||||
| Gain on disposition of revenue property and equipment | (899 | ) | (339 | ) | (1,545 | ) | (513 | ) | |||||||
| Impairment | — | — | 2,840 | — | |||||||||||
| Total operating expenses | 447,672 | 225,618 | 1,135,887 | 579,759 | |||||||||||
| Income from operations | 13,917 | 5,704 | 30,182 | 9,320 | |||||||||||
| Other expense (income): | |||||||||||||||
| Interest income | (170 | ) | (76 | ) | (1,213 | ) | (130 | ) | |||||||
| Interest expense | 11,839 | 8,624 | 33,246 | 21,064 | |||||||||||
| Write-off of unamortized deferred financing fees | — | — | — | 3,883 | |||||||||||
| Other | (603 | ) | (32 | ) | (2,462 | ) | (247 | ) | |||||||
| Total other expense | 11,066 | 8,516 | 29,571 | 24,570 | |||||||||||
| Income (loss) before provision (benefit) for income taxes | 2,851 | (2,812 | ) | 611 | (15,250 | ) | |||||||||
| Provision (benefit) for income taxes | 670 | (2,862 | ) | (14,258 | ) | (3,448 | ) | ||||||||
| Net income (loss) | 2,181 | 50 | 14,869 | (11,802 | ) | ||||||||||
| Other comprehensive income (loss): | |||||||||||||||
| Unrealized income on interest rate swaps | — | — | — | 52 | |||||||||||
| Foreign currency translation adjustments, net of tax expense (benefit) of $105, $283, $(146) and $556, respectively | 409 | 526 | (534 | ) | 1,032 | ||||||||||
| Comprehensive income (loss) | 2,590 | 576 | 14,335 | (10,718 | ) | ||||||||||
| Net income (loss) | 2,181 | 50 | 14,869 | (11,802 | ) | ||||||||||
| Less dividends to Series A convertible preferred stockholders | (1,239 | ) | (1,225 | ) | (3,717 | ) | (2,919 | ) | |||||||
| Less dividends to Series B convertible preferred stockholders | — | — | — | (806 | ) | ||||||||||
| Net income (loss) attributable to common stockholders | $ | 942 | $ | (1,175 | ) | $ | 11,152 | $ | (15,527 | ) | |||||
| Net income (loss) per common share: | |||||||||||||||
| Basic | $ | 0.01 | $ | (0.03 | ) | $ | 0.18 | $ | (0.45 | ) | |||||
| Diluted | $ | 0.01 | $ | (0.03 | ) | $ | 0.18 | $ | (0.45 | ) | |||||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic | 65,289,320 | 39,359,523 | 60,413,694 | 34,790,861 | |||||||||||
| Diluted | 65,289,320 | 39,359,523 | 60,413,694 | 34,790,861 | |||||||||||
| Dividends declared per Series A convertible preferred share | $ | 1.91 | $ | 1.91 | $ | 5.72 | $ | 2.59 | |||||||
| Dividends declared per Series B convertible preferred share | $ | — | $ | — | $ | — | $ | 12.50 | |||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||
| Supplemental Information: Flatbed Solutions | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||
| 2018 | 2017 | Increase (Decrease) | |||||||||||||||
| (Dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||
| REVENUE(1): | |||||||||||||||||
| Freight | $ | 130,678 | 72.0 | $ | 67,807 | 79.2 | $ | 62,871 | 92.7 | ||||||||
| Brokerage | 29,134 | 16.1 | 9,385 | 11.0 | 19,749 | 210.4 | |||||||||||
| Logistics | 824 | 0.5 | — | * | 824 | * | |||||||||||
| Fuel surcharge | 20,858 | 11.5 | 8,400 | 9.8 | 12,458 | 148.3 | |||||||||||
| Total revenue | 181,494 | 100.0 | 85,592 | 100.0 | 95,902 | 112.0 | |||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||
| Total operating expenses | 169,264 | 93.3 | 80,837 | 94.4 | 88,427 | 109.4 | |||||||||||
| Operating ratio | 93.3 | % | 94.4 | % | |||||||||||||
| Adjusted operating ratio | 92.4 | % | 93.5 | % | |||||||||||||
| INCOME FROM OPERATIONS | $ | 12,230 | 6.7 | $ | 4,755 | 5.6 | $ | 7,475 | 157.2 | ||||||||
| OPERATING STATISTICS: | |||||||||||||||||
| Total miles | 64,073,858 | 36,646,345 | 27,427,513 | 74.8 | |||||||||||||
| Company-operated tractors, at quarter-end | 1,363 | 1,141 | 222 | 19.5 | |||||||||||||
| Owner-operated tractors, at quarter-end | 1,636 | 463 | 1,173 | 253.3 | |||||||||||||
| Number of trailers, at quarter-end | 5,173 | 2,878 | 2,295 | 79.7 | |||||||||||||
| Company-operated tractors, average for the quarter | 1,244 | 1,144 | 100 | 8.7 | |||||||||||||
| Owner-operated tractors, average for the quarter | 1,611 | 469 | 1,142 | 243.5 | |||||||||||||
| * indicates not meaningful. | |||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | |||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||
| Supplemental Information: Flatbed Solutions | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||
| 2018 | 2017 | Increase (Decrease) | |||||||||||||||||
| (Dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||||
| REVENUE(1): | |||||||||||||||||||
| Freight | $ | 353,676 | 72.4 | $ | 200,670 | 79.1 | $ | 153,006 | 76.2 | ||||||||||
| Brokerage | 76,006 | 15.6 | 27,979 | 11.0 | 48,027 | 171.7 | |||||||||||||
| Logistics | 2,231 | 0.5 | — | * | 2,231 | * | |||||||||||||
| Fuel surcharge | 56,768 | 11.6 | 25,145 | 9.9 | 31,623 | 125.8 | |||||||||||||
| Total revenue | 488,681 | 100.0 | 253,794 | 100.0 | 234,887 | 92.6 | |||||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||||
| Total operating expenses | 460,219 | 94.2 | 238,839 | 94.1 | 221,380 | 92.7 | |||||||||||||
| Operating ratio | 94.2 | % | 94.1 | % | |||||||||||||||
| Adjusted operating ratio | 93.2 | % | 93.1 | % | |||||||||||||||
| INCOME FROM OPERATIONS | $ | 28,462 | 5.8 | $ | 14,955 | 5.9 | $ | 13,507 | 90.3 | ||||||||||
| OPERATING STATISTICS: | |||||||||||||||||||
| Total miles | 180,415,251 | 112,318,418 | 68,096,833 | 60.6 | |||||||||||||||
| Company-operated tractors, at period-end | 1,363 | 1,141 | 222 | 19.5 | |||||||||||||||
| Owner-operated tractors, at period-end | 1,636 | 463 | 1,173 | 253.3 | |||||||||||||||
| Number of trailers, at period-end | 5,173 | 2,878 | 2,295 | 79.7 | |||||||||||||||
| Company-operated tractors, average for the period | 1,151 | 1,158 | (7 | ) | (0.6 | ) | |||||||||||||
| Owner-operated tractors, average for the period | 1,524 | 454 | 1,070 | 235.7 | |||||||||||||||
| * indicates not meaningful. | |||||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | |||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||
| Supplemental Information: Specialized Solutions | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||
| 2018 | 2017 | Increase (Decrease) | |||||||||||||||
| (Dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||
| REVENUE(1): | |||||||||||||||||
| Freight | $ | 202,085 | 71.2 | $ | 105,137 | 71.2 | $ | 96,948 | 92.2 | ||||||||
| Brokerage | 53,233 | 18.8 | 24,852 | 16.8 | 28,381 | 114.2 | |||||||||||
| Logistics | 10,855 | 3.8 | 7,886 | 5.3 | 2,969 | 37.6 | |||||||||||
| Fuel surcharge | 17,718 | 6.2 | 9,756 | 6.6 | 7,962 | 81.6 | |||||||||||
| Total revenue | 283,891 | 100.0 | 147,631 | 100.0 | 136,260 | 92.3 | |||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||
| Total operating expenses | 272,076 | 95.8 | 140,472 | 95.2 | 131,604 | 93.7 | |||||||||||
| Operating ratio | 95.8 | % | 95.2 | % | |||||||||||||
| Adjusted operating ratio | 93.0 | % | 92.6 | % | |||||||||||||
| INCOME FROM OPERATIONS | $ | 11,815 | 4.2 | $ | 7,159 | 4.8 | $ | 4,656 | 65.0 | ||||||||
| OPERATING STATISTICS: | |||||||||||||||||
| Total miles | 57,228,358 | 38,948,331 | 18,280,027 | 46.9 | |||||||||||||
| Company-operated tractors, at quarter-end | 2,436 | 1,716 | 720 | 42.0 | |||||||||||||
| Owner-operated tractors, at quarter-end | 678 | 452 | 226 | 50.0 | |||||||||||||
| Number of trailers, at quarter-end | 8,724 | 5,266 | 3,458 | 65.7 | |||||||||||||
| Company-operated tractors, average for the quarter | 2,446 | 1,638 | 808 | 49.3 | |||||||||||||
| Owner-operated tractors, average for the quarter | 721 | 408 | 313 | 76.7 | |||||||||||||
| * indicates not meaningful. | |||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | |||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||
| Supplemental Information: Specialized Solutions | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
| 2018 | 2017 | Increase (Decrease) | |||||||||||||||
| (Dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||
| REVENUE(1): | |||||||||||||||||
| Freight | $ | 496,712 | 72.3 | $ | 250,255 | 73.5 | $ | 246,457 | 98.5 | ||||||||
| Brokerage | 112,823 | 16.4 | 55,820 | 16.4 | 57,003 | 102.1 | |||||||||||
| Logistics | 29,128 | 4.2 | 10,594 | 3.1 | 18,534 | 174.9 | |||||||||||
| Fuel surcharge | 48,474 | 7.1 | 23,620 | 6.9 | 24,854 | 105.2 | |||||||||||
| Total revenue | 687,137 | 100.0 | 340,289 | 100.0 | 346,848 | 101.9 | |||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||
| Total operating expenses | 663,072 | 96.5 | 327,533 | 96.3 | 335,539 | 102.4 | |||||||||||
| Operating ratio | 96.5 | % | 96.3 | % | |||||||||||||
| Adjusted operating ratio | 93.4 | % | 94.0 | % | |||||||||||||
| INCOME FROM OPERATIONS | $ | 24,065 | 3.5 | $ | 12,756 | 3.7 | $ | 11,309 | 88.7 | ||||||||
| OPERATING STATISTICS: | |||||||||||||||||
| Total miles | 163,313,962 | 94,967,882 | 68,346,080 | 72.0 | |||||||||||||
| Company-operated tractors, at period-end | 2,436 | 1,716 | 720 | 42.0 | |||||||||||||
| Owner-operated tractors, at period-end | 678 | 452 | 226 | 50.0 | |||||||||||||
| Number of trailers, at period-end | 8,724 | 5,266 | 3,458 | 65.7 | |||||||||||||
| Company-operated tractors, average for the period | 2,173 | 1,375 | 798 | 58.0 | |||||||||||||
| Owner-operated tractors, average for the period | 618 | 295 | 323 | 109.5 | |||||||||||||
| * indicates not meaningful. | |||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | |||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Net income (loss) | $ | 2,181 | $ | 50 | $ | 14,869 | $ | (11,802 | ) | ||||||
| Depreciation and amortization | 36,800 | 19,805 | 93,748 | 53,758 | |||||||||||
| Interest income | (170 | ) | (76 | ) | (1,213 | ) | (130 | ) | |||||||
| Interest expense | 11,839 | 8,624 | 33,246 | 21,064 | |||||||||||
| Write-off of unamortized deferred financing fees | — | — | — | 3,883 | |||||||||||
| Income tax provision (benefit) | 670 | (2,862 | ) | (14,258 | ) | (3,448 | ) | ||||||||
| Acquisition-related transaction expenses | 601 | 773 | 2,442 | 2,255 | |||||||||||
| Impairment | — | — | 2,840 | — | |||||||||||
| Stock based compensation | 928 | 663 | 2,716 | 1,201 | |||||||||||
| Expenses related to the Business Combination and related transactions | — | — | — | 2,034 | |||||||||||
| Tractor operating lease charges | 5,432 | 4,448 | 14,693 | 12,366 | |||||||||||
| Adjusted EBITDAR | $ | 58,281 | $ | 31,425 | $ | 149,083 | $ | 81,181 | |||||||
| Less tractor operating lease charges | (5,432 | ) | (4,448 | ) | (14,693 | ) | (12,366 | ) | |||||||
| Adjusted EBITDA | $ | 52,849 | $ | 26,977 | $ | 134,390 | $ | 68,815 | |||||||
| Net capital expenditures | (49,898 | ) | (14,930 | ) | (85,296 | ) | (23,922 | ) | |||||||
| Free cash flow | $ | 2,951 | $ | 12,047 | $ | 49,094 | $ | 44,893 | |||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures - Adjusted EBITDA by Segment | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||
| Flatbed | Specialized | Corporate | Consolidated | Flatbed | Specialized | Corporate | Consolidated | |||||||||||||||||||
| Net income (loss) | $ | 5,968 | $ | 5,591 | $ | (9,378 | ) | $ | 2,181 | $ | 2,280 | $ | 4,427 | $ | (6,657 | ) | $ | 50 | ||||||||
| Depreciation and amortization | 9,200 | 27,574 | 26 | 36,800 | 7,150 | 12,619 | 36 | 19,805 | ||||||||||||||||||
| Net interest expense | 2,131 | 2,874 | 6,664 | 11,669 | 1,774 | 2,114 | 4,660 | 8,548 | ||||||||||||||||||
| Income tax provision (benefit) | 4,154 | 3,890 | (7,374 | ) | 670 | 717 | 633 | (4,212 | ) | (2,862 | ) | |||||||||||||||
| Acquisition-related transaction expenses | — | 1 | 600 | 601 | — | — | 773 | 773 | ||||||||||||||||||
| Stock based compensation | 243 | 523 | 162 | 928 | 237 | 293 | 133 | 663 | ||||||||||||||||||
| Adjusted EBITDA | $ | 21,696 | $ | 40,453 | $ | (9,300 | ) | $ | 52,849 | $ | 12,158 | $ | 20,086 | $ | (5,267 | ) | $ | 26,977 | ||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures - Acquisition Adjusted EBITDA by Segment | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||
| Flatbed | Specialized | Corporate | Consolidated | Flatbed | Specialized | Corporate | Consolidated | |||||||||||||||||||
| Net income (loss) | $ | 6,520 | $ | 5,591 | $ | (9,378 | ) | $ | 2,733 | $ | 4,230 | $ | 6,973 | $ | (6,657 | ) | $ | 4,546 | ||||||||
| Depreciation and amortization | 9,730 | 27,574 | 26 | 37,330 | 10,761 | 20,064 | 36 | 30,861 | ||||||||||||||||||
| Net interest expense | 2,188 | 2,874 | 6,664 | 11,726 | 2,061 | 4,223 | 4,660 | 10,944 | ||||||||||||||||||
| Income tax provision (benefit) | 4,154 | 3,890 | (7,374 | ) | 670 | 717 | 1,286 | (4,212 | ) | (2,209 | ) | |||||||||||||||
| Acquisition-related transaction expenses | — | 1 | 600 | 601 | — | — | 773 | 773 | ||||||||||||||||||
| Stock based compensation | 243 | 523 | 162 | 928 | 237 | 366 | 133 | 736 | ||||||||||||||||||
| Acquisition adjusted EBITDA | $ | 22,835 | $ | 40,453 | $ | (9,300 | ) | $ | 53,988 | $ | 18,006 | $ | 32,912 | $ | (5,267 | ) | $ | 45,651 | ||||||||
| Daseke, Inc. and Subsidiaries | |||||||
| Reconciliation of Non-GAAP Measures - Aveda Adjusted EBITDA | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| Four(1) Months Ended September 30, | |||||||
| 2018 | 2017 | ||||||
| Net income (loss) | $ | (2,348 | ) | $ | (1,689 | ) | |
| Depreciation and amortization | 11,340 | 4,134 | |||||
| Net interest expense | 18 | 2,018 | |||||
| Income tax provision (benefit) | (1,514 | ) | 138 | ||||
| Acquisition-related transaction expenses | 29 | — | |||||
| Stock based compensation | — | 286 | |||||
| Aveda Adjusted EBITDA | $ | 7,525 | $ | 4,887 | |||
| (1) The 2018 period is from June 6, 2018 through September 30, 2018. | |||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||
| Reconciliation of Operating Ratio to Adjusted Operating Ratio | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Total revenue | $ | 461,589 | $ | 231,322 | $ | 1,166,069 | $ | 589,079 | ||||||||
| Fuel surcharge | 38,256 | 18,008 | 104,244 | 48,331 | ||||||||||||
| Operating revenue, net of fuel surcharge | $ | 423,333 | $ | 213,314 | $ | 1,061,825 | $ | 540,748 | ||||||||
| Total operating expenses | $ | 447,672 | $ | 225,618 | $ | 1,135,887 | $ | 579,759 | ||||||||
| Fuel surcharge | 38,256 | 18,008 | 104,244 | 48,331 | ||||||||||||
| Acquisition-related transaction expenses | 601 | 773 | 2,442 | 2,255 | ||||||||||||
| Impairment | — | — | 2,840 | — | ||||||||||||
| Expenses related to the Business Combination and related transactions | — | — | — | 2,034 | ||||||||||||
| Net impact of step-up in basis of acquired assets | 6,957 | 3,260 | 16,421 | 7,088 | ||||||||||||
| Adjusted operating expenses | $ | 401,858 | $ | 203,577 | $ | 1,009,940 | $ | 520,051 | ||||||||
| Operating ratio | 97.0 | % | 97.5 | % | 97.4 | % | 98.4 | % | ||||||||
| Adjusted operating ratio | 94.9 | % | 95.4 | % | 95.1 | % | 96.2 | % | ||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||
| Reconciliation of Operating Ratio to Adjusted Operating Ratio by Segment: Flatbed | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Total revenue(1) | $ | 181,494 | $ | 85,592 | $ | 488,681 | $ | 253,794 | ||||||||
| Fuel surcharge | 20,858 | 8,400 | 56,768 | 25,145 | ||||||||||||
| Operating revenue, net of fuel surcharge | $ | 160,636 | $ | 77,192 | $ | 431,913 | $ | 228,649 | ||||||||
| Total operating expenses(1) | $ | 169,264 | $ | 80,837 | $ | 460,219 | $ | 238,839 | ||||||||
| Fuel surcharge | 20,858 | 8,400 | 56,768 | 25,145 | ||||||||||||
| Net impact of step-up in basis of acquired assets | 25 | 227 | 888 | 888 | ||||||||||||
| Adjusted operating expenses | $ | 148,381 | $ | 72,210 | $ | 402,563 | $ | 212,806 | ||||||||
| Operating ratio | 93.3 | % | 94.4 | % | 94.2 | % | 94.1 | % | ||||||||
| Adjusted operating ratio | 92.4 | % | 93.5 | % | 93.2 | % | 93.1 | % | ||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | ||||||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||
| Reconciliation of Operating Ratio to Adjusted Operating Ratio by Segment: Specialized | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Total revenue(1) | $ | 283,891 | $ | 147,631 | $ | 687,137 | $ | 340,289 | ||||||||
| Fuel surcharge | 17,718 | 9,756 | 48,474 | 23,620 | ||||||||||||
| Operating revenue, net of fuel surcharge | $ | 266,173 | $ | 137,875 | $ | 638,663 | $ | 316,669 | ||||||||
| Total operating expenses(1) | $ | 272,076 | $ | 140,472 | $ | 663,072 | $ | 327,533 | ||||||||
| Fuel surcharge | 17,718 | 9,756 | 48,474 | 23,620 | ||||||||||||
| Impairment | — | — | 2,840 | — | ||||||||||||
| Net impact of step-up in basis of acquired assets | 6,932 | 3,033 | 15,533 | 6,200 | ||||||||||||
| Adjusted operating expenses | $ | 247,426 | $ | 127,683 | $ | 596,225 | $ | 297,713 | ||||||||
| Operating ratio | 95.8 | % | 95.2 | % | 96.5 | % | 96.3 | % | ||||||||
| Adjusted operating ratio | 93.0 | % | 92.6 | % | 93.4 | % | 94.0 | % | ||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company's consolidated results. | ||||||||||||||||
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