EX-99.1 2 a12-10565_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

Echo Global Logistics Announces First Quarter 2012 Results

 

CHICAGO, April 26, 2012 — Echo Global Logistics, Inc. (Nasdaq: ECHO), a leading provider of technology-enabled transportation and supply chain management services, reported today financial results for the quarter ended March 31, 2012.

 

“Echo delivered strong financial and operating performance in the first quarter,” said Doug Waggoner, Chief Executive Officer of Echo.  Waggoner added, “The fundamentals of our business are very strong, contributing to another record quarter in both total revenue and net revenue.”

 

First Quarter Highlights

 

·                  Total revenue was $168.6 million, an increase of 30.2% from the first quarter of 2011.

·                  Non-GAAP operating income totaled $5.0 million, an increase of 44.5% from the first quarter of 2011.*

·                  Non-GAAP operating margin was 15.4%, up 176 bps from the first quarter of 2011.*

·                  Non-GAAP net income increased 42.9% from the first quarter of 2011 to $3.1 million.*

·                  Non-GAAP Fully Diluted EPS increased 41.3% from the first quarter of 2011 to 14 cents per share.*

 

* All non-GAAP measures exclude the effects of changes in contingent consideration payable. For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP 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:

 

1


 

 

 

Three months ended March 31,

 

 

 

Amounts in 000,000s, except per share data 

 

2012

 

2011

 

% change

 

 

 

(unaudited)

 

 

 

Revenue

 

 

 

 

 

 

 

Transactional

 

$

115.9

 

$

87.2

 

32.9

%

Enterprise

 

52.7

 

42.2

 

24.8

%

Total Revenue

 

168.6

 

129.4

 

30.2

%

 

 

 

 

 

 

 

 

Net revenue

 

32.7

 

25.5

 

28.0

%

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Commissions

 

9.5

 

7.7

 

23.4

%

General and administrative

 

16.2

 

12.4

 

30.0

%

Depreciation and amortization

 

2.0

 

1.9

 

4.2

%

Total operating expenses (1)

 

27.7

 

22.0

 

25.4

%

 

 

 

 

 

 

 

 

Non-GAAP Operating income (1)

 

5.0

 

3.5

 

44.5

%

 

 

 

 

 

 

 

 

Other expense

 

0.1

 

0.0

 

200.5

%

Non-GAAP Income before taxes (1)

 

4.9

 

3.5

 

42.9

%

 

 

 

 

 

 

 

 

Income taxes (1)

 

1.8

 

1.3

 

42.9

%

 

 

 

 

 

 

 

 

Non-GAAP net income (2)

 

3.1

 

2.2

 

42.9

%

 

 

 

 

 

 

 

 

Non-GAAP Fully Diluted EPS (2)

 

$

0.14

 

$

0.10

 

41.3

%

Diluted shares

 

22.8

 

22.5

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to GAAP Operating Income, Operating Margin, Net income and EPS

 

 

 

 

 

 

 

Non-GAAP Operating Income (1)

 

5.0

 

3.5

 

44.5

%

Change in contingent consideration payable

 

0.3

 

0.1

 

200.5

%

Operating Income

 

5.3

 

3.6

 

49.3

%

 

 

 

 

 

 

 

 

Non-GAAP Operating Margin (1)

 

15.4

%

13.6

%

176

bps

Effect of change in contingent consideration payable

 

1.0

%

0.5

%

58

bps

Operating Margin

 

16.4

%

14.1

%

234

bps

 

 

 

 

 

 

 

 

Non-GAAP Net Income (2)

 

3.1

 

2.2

 

42.9

%

Change in contingent consideration payable, net of tax effect

 

0.2

 

0.0

 

201.0

%

Net Income

 

3.3

 

2.2

 

47.8

%

 

 

 

 

 

 

 

 

Non-GAAP Fully Diluted EPS (2)

 

$

0.14

 

$

0.10

 

41.3

%

Change in contingent consideration payable, net of tax effect

 

0.01

 

0.0

 

197.7

%

Fully Diluted EPS

 

$

0.15

 

$

0.10

 

46.0

%

 

 

 

 

 

 

 

 

Operating Metrics

 

 

 

 

 

 

 

Net revenue margin

 

19.4

%

19.7

%

(34

)bps

Operating margin (% of net revenue) (1)

 

15.4

%

13.6

%

176

bps

 

 

 

 

 

 

 

 

Shipment volume

 

383,838

 

314,777

 

21.9

%

Number of enterprise clients

 

185

 

154

 

20.1

%

Total employees

 

1,154

 

997

 

15.7

%

Salaried employees

 

403

 

347

 

16.1

%

Commissioned sales employees

 

501

 

419

 

19.6

%

Sales agents

 

250

 

231

 

8.2

%

Less Than Truckload (LTL) Revenue %

 

46.3

%

49.9

%

(365

)bps

Truckload (TL) Revenue %

 

42.9

%

41.7

%

121

bps

 

(1) Amounts shown exclude the effects of changes in contingent consideration payable.

(2) Amounts shown exclude the tax effected changes in contingent consideration payable

 

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“Our growth in total revenue and profitability has been impressive as we execute our strategy,” said Dave Menzel, Chief Financial Officer of Echo. “We continue to focus on the development of our people and capabilities to enable us to better serve our clients with a full range of multi-modal transportation and logistics solutions.”

 

Business Outlook

 

“We are off to a good start in 2012 and anticipate continued growth in both revenue and earnings as the year progresses,” stated Waggoner. “Based on the performance we have seen to date, we re-affirm our previously announced 2012 guidance of revenue in the range of $740 to $780 million and Fully Diluted EPS before the tax effected changes in contingent consideration payable of $0.68 to $0.76 per share.”

 

Conference Call

 

A conference call, with accompanying presentation slides, will be broadcast live on Thursday, April 26, 2012, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time).  Doug Waggoner, Chief Executive Officer, and Dave Menzel, Chief Financial Officer, will host the call.  To participate in the call, dial (877) 303-6235 (toll free) or (631) 291-4837 (toll) and provide conference ID “Echo Global Logistics.”  To listen to a live webcast of the call, visit the Echo website at http://ir.echo.com.   A replay of the webcast will be available for one year following the live webcast in the Investor Relations section of the Echo website.

 

Non-GAAP Financial Measures

 

This release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission: Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS. We refer to Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS to describe earnings and earnings per share excluding the effects of changes in contingent consideration payable. We believe that Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS provide useful information to investors because they provide information about the financial performance of the Company’s ongoing business.

 

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. Non-GAAP Operating Income, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS 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 these non-GAAP financial measures to the nearest comparable GAAP measures, see “Reconciliation to GAAP Operating Income, Operating Margin, Net Income and EPS” included in this release.

 

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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 SEC filings, including the “Risk Factors” section of the most recent Form 10-K we filed with the SEC.

 

Echo Global Logistics, Inc.

Condensed Consolidated Statements of Operations

 

 

 

 

Three Months Ended March 31,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

REVENUE

 

$

168,569,105

 

$

129,445,571

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

Transportation costs

 

135,899,327

 

103,919,616

 

Selling, general, and administrative expenses

 

25,283,944

 

19,989,273

 

Depreciation and amortization

 

2,029,277

 

1,948,054

 

INCOME FROM OPERATIONS

 

5,356,557

 

3,588,628

 

OTHER EXPENSE

 

(109,636

)

(36,338

)

INCOME BEFORE PROVISION FOR INCOME TAXES

 

5,246,921

 

3,552,290

 

INCOME TAX EXPENSE

 

(1,935,131

)

(1,310,891

)

NET INCOME

 

$

3,311,790

 

$

2,241,399

 

 

 

 

 

 

 

Basic net income per share

 

$

0.15

 

$

0.10

 

Diluted net income per share

 

$

0.15

 

$

0.10

 

 

Echo Global Logistics, Inc.

Condensed Consolidated Balance Sheets

 

 

 

March 31,

 

December 31,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

Cash and cash equivalents

 

$

48,218,176

 

$

47,007,309

 

Accounts receivable, net of allowance for doubtful accounts

 

89,154,373

 

89,191,456

 

Prepaid expenses

 

4,123,870

 

4,634,612

 

Other current assets

 

155,978

 

800,648

 

Total long term assets

 

58,987,318

 

58,864,061

 

Total assets

 

$

200,639,715

 

$

200,498,086

 

 

 

 

 

 

 

Accounts payable – trade

 

$

56,546,652

 

$

59,949,927

 

Current maturities of capital lease obligations

 

121,961

 

175,166

 

Other liabilites

 

9,544,419

 

10,474,434

 

Deferred income taxes

 

3,154,196

 

2,979,483

 

Long term liabilities

 

7,658,816

 

7,597,478

 

Stockholders’ equity

 

123,613,671

 

119,321,598

 

Total liabilities and stockholders’ equity

 

$

200,639,715

 

$

200,498,086

 

 

4


 

Echo Global Logistics, Inc.

Condensed Consolidated Statements of Cash Flows

 

 

 

Three Months Ended March 31,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

(Unaudited)

 

Net cash provided by operating activities

 

$

4,425,117

 

$

2,525,609

 

 

 

 

 

 

 

Net cash used in investing activities

 

(2,189,822

)

(2,891,259

)

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(1,024,428

)

345,748

 

 

 

 

 

 

 

Increase/(decrease) in cash and cash equivalents

 

1,210,867

 

(19,902

)

Cash and cash equivalents, beginning of period

 

47,007,309

 

43,218,164

 

Cash and cash equivalents, end of period

 

$

48,218,176

 

$

43,198,262

 

 

About Echo Global Logistics

 

Echo Global Logistics, based in Chicago, is a leading provider of technology-enabled transportation and supply chain management services, delivered on a proprietary technology platform, serving the transportation and logistics needs of its clients. Echo maintains a web-based technology platform that compiles and analyzes data from its network of over 24,000 transportation providers to serve its clients’ shipping and freight management needs. Echo procures transportation and provides logistics services for clients across a wide range of industries, such as manufacturing, construction, consumer products and retail. For more information on Echo, visit: www.echo.com.

 

The Echo Global Logistics, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5293

 

Source: Echo Global Logistics, Inc.

 

INVESTOR RELATIONS CONTACT:

Suzanne Karpick, Echo Global Logistics, (312) 784-7414

 

MEDIA CONTACT:

Hanni Itah, SSPR, (847) 415 - 9324

 

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