EX-99.1 2 rrts-2019088xnewoperatings.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
(In thousands)
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
131,692

 
$
142,771

 
$
102,823

 
$
137,011

 
$
(7,149
)
 
$
507,148

Operating expenses:
 

 
 

 
 

 
 
 
Purchased transportation costs
95,485


122,158

 
71,591

 
60,690


(7,149
)
 
342,775

Personnel and related benefits
13,743


9,918

 
17,556

 
30,845


7,153

 
79,215

Other operating expenses
15,410


5,403

 
18,872

 
43,302


6,627

 
89,614

Depreciation and amortization
1,682


2,096


638

 
9,091


2,035


15,542

Impairment charges





 


778


778

Total operating expenses
126,320

 
139,575

 
108,657

 
143,928

 
9,444

 
527,924

Operating (loss) income
5,372

 
3,196

 
(5,834
)
 
(6,917
)
 
(16,593
)
 
(20,776
)
Total interest expense
 
 
 
 
 
 
 
 
 
 
3,882

Loss on debt restructuring
 
 
 
 
 
 
 
 
 
 
2,270

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(26,928
)
Provision for income taxes
 
 
 
 
 
 
 
 
 
 
71

Net loss
 
 
 
 
 
 
 
 
 
 
$
(26,999
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
304,956

 
$
139,475

 
$
121,364

 
$
284,936

 
$
131,548


$
982,279

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
1,837

 
$
1,148

 
$
1,772

 
$
5,724

 
$
25,833

 
$
36,314


(In thousands)
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
5,267

 
$
3,196

 
$
(5,868
)
 
$
(7,609
)
 
$
(21,985
)
 
$
(26,999
)
Plus: Total interest expense
92

 

 
34

 
692

 
3,064

 
3,882

Plus: Provision for income taxes
13

 

 

 

 
58

 
71

Plus: Depreciation and amortization
1,682

 
2,096

 
638

 
9,091

 
2,035

 
15,542

Plus: Impairment charges

 

 

 

 
778

 
778

Plus: Long-term incentive compensation expenses

 

 

 

 
1,731

 
1,731

Plus: Loss on debt restructuring

 

 

 

 
2,270

 
2,270

Plus: Corporate restructuring and restatement costs

 

 

 

 
3,432

 
3,432

Adjusted EBITDA(2)
$
7,054

 
$
5,292

 
$
(5,196
)
 
$
2,174

 
$
(8,617
)
 
$
707






(In thousands)
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
134,943

 
$
194,766

 
$
113,125

 
$
144,557

 
$
(17,407
)
 
$
569,984

Operating expenses:
 
 
 
 
 
 
 
 
 
 

Purchased transportation costs
98,513

 
172,609

 
81,997

 
65,248

 
(17,404
)
 
400,963

Personnel and related benefits
12,141

 
8,673

 
18,135

 
30,495

 
6,443

 
75,887

Other operating expenses
16,394

 
5,037

 
20,764

 
46,565

 
8,739

 
97,499

Depreciation and amortization
1,188

 
1,994

 
913

 
4,302

 
668

 
9,065

Total operating expenses
128,236

 
188,313

 
121,809

 
146,610

 
(1,554
)
 
583,414

Operating (loss) income
6,707

 
6,453

 
(8,684
)
 
(2,053
)
 
(15,853
)
 
(13,430
)
Total interest expense


 
 
 
 
 
 
 
 
 
9,543

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(22,973
)
Provision for income taxes


 


 


 


 


 
670

Net loss
 
 
 
 
 
 
 
 
 
 
$
(23,643
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
248,732

 
$
206,205

 
$
79,620

 
$
279,554

 
$
70,379

 
$
884,490

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
354

 
$
1,107

 
$
200

 
$
1,890

 
$
2,424

 
$
5,975


(In thousands)
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
6,677

 
$
6,453

 
$
(8,720
)
 
$
(2,064
)
 
$
(25,989
)
 
$
(23,643
)
Plus: Total interest expense
30

 

 
36

 
11

 
9,466

 
9,543

Plus: Provision for income taxes

 

 

 

 
670

 
670

Plus: Depreciation and amortization
1,188

 
1,994

 
913

 
4,302

 
668

 
9,065

Plus: Long-term incentive compensation expenses

 

 

 

 
577

 
577

Plus: Corporate restructuring and restatement costs

 

 

 

 
6,913

 
6,913

Adjusted EBITDA(2)
$
7,895

 
$
8,447

 
$
(7,771
)
 
$
2,249

 
$
(7,695
)
 
$
3,125







(In thousands)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
145,632

 
$
146,217

 
$
113,948

 
$
140,663

 
$
(9,876
)
 
$
536,584

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation costs
107,146

 
124,671

 
81,422

 
62,314

 
(9,875
)
 
365,678

Personnel and related benefits
12,687

 
10,313

 
17,402

 
31,367

 
6,349

 
78,118

Other operating expenses
17,142

 
3,530

 
19,288

 
49,016

 
5,019

 
93,995

Depreciation and amortization
1,183

 
2,069

 
876

 
4,387

 
1,099

 
9,614

Total operating expenses
138,158

 
140,583

 
118,988

 
147,084

 
2,592

 
547,405

Operating (loss) income
7,474

 
5,634

 
(5,040
)
 
(6,421
)
 
(12,468
)
 
(10,821
)
Total interest expense
 
 
 
 
 
 
 
 
 
 
35,798

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(46,619
)
Benefit from income taxes
 
 
 
 
 
 
 
 
 
 
(5,058
)
Net loss
 
 
 
 
 
 
 
 
 
 
$
(41,561
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
273,298

 
$
145,032

 
$
78,410

 
$
262,521

 
$
88,035

 
$
847,296

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
496

 
$
1,597

 
$
505

 
$
880

 
$
16,719

 
$
20,197


(In thousands)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
7,319

 
$
5,634

 
$
(5,072
)
 
$
(6,555
)
 
$
(42,887
)
 
$
(41,561
)
Plus: Total interest expense
26

 

 
32

 
134

 
35,606

 
35,798

Plus: (Benefit from) provision for income taxes
129

 

 

 

 
(5,187
)
 
(5,058
)
Plus: Depreciation and amortization
1,183

 
2,069

 
876

 
4,387

 
1,099

 
9,614

Plus: Long-term incentive compensation expenses

 

 

 

 
951

 
951

Plus: Corporate restructuring and restatement costs

 

 

 

 
4,713

 
4,713

Adjusted EBITDA(2)
$
8,657

 
$
7,703

 
$
(4,164
)
 
$
(2,034
)
 
$
(5,705
)
 
$
4,457








(In thousands)
Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
147,867

 
$
167,212

 
$
108,044

 
$
141,720

 
$
(13,296
)
 
$
551,547

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation costs
108,528

 
135,182

 
77,282

 
64,006

 
(13,296
)
 
371,702

Personnel and related benefits
14,980

 
9,352

 
17,586

 
30,553

 
7,439

 
79,910

Other operating expenses
15,879

 
9,978

 
21,436

 
49,231

 
9,738

 
106,262

Depreciation and amortization
1,510

 
2,131

 
1,165

 
7,683

 
2,475

 
14,964

Impairment charges

 

 

 
1,582

 

 
1,582

Total operating expenses
140,897

 
156,643

 
117,469

 
153,055

 
6,356

 
574,420

Operating (loss) income
6,970

 
10,569

 
(9,425
)
 
(11,335
)
 
(19,652
)
 
(22,873
)
Total interest expense
 
 
 
 
 
 
 
 
 
 
37,339

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(60,212
)
Benefit from income taxes
 
 
 
 
 
 
 
 
 
 
(1,774
)
Net loss
 
 
 
 
 
 
 
 
 
 
$
(58,438
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
276,994

 
$
136,795

 
$
73,706

 
$
244,760

 
$
121,202

 
$
853,457

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
882

 
$
952

 
$
362

 
$
411

 
$
28,457

 
$
31,064


(In thousands)
Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
6,945

 
$
10,569

 
$
(9,454
)
 
$
(11,497
)
 
$
(55,001
)
 
$
(58,438
)
Plus: Total interest expense
23

 

 
29

 
162

 
37,125

 
37,339

Plus: (Benefit from) provision for income taxes
2

 

 

 

 
(1,776
)
 
(1,774
)
Plus: Depreciation and amortization
1,510

 
2,131

 
1,165

 
7,683

 
2,475

 
14,964

Plus: Long-term incentive compensation expenses

 

 

 

 
742

 
742

Plus: Fleet impairment charges

 

 

 
1,582

 

 
1,582

Plus: Corporate restructuring and restatement costs

 

 

 

 
6,687

 
6,687

Plus: Adjustments for contingent purchase obligation

 

 

 

 
1,840

 
1,840

Adjusted EBITDA(2)
$
8,480

 
$
12,700

 
$
(8,260
)
 
$
(2,070
)
 
$
(7,908
)
 
$
2,942







(In thousands)
Year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
573,072

 
$
672,965

 
$
452,281

 
$
572,701

 
$
(54,878
)
 
$
2,216,141

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation costs
421,048

 
573,483

 
323,019

 
255,743

 
(54,878
)
 
1,518,415

Personnel and related benefits
52,273

 
37,376

 
70,551

 
123,171

 
26,382

 
309,753

Other operating expenses (3)
66,237

 
23,412

 
81,749

 
199,995

 
30,730

 
402,123

Depreciation and amortization
5,049

 
8,230

 
3,854

 
20,577

 
5,057

 
42,767

Impairment Charges

 

 

 
1,582

 

 
1,582

Total operating expenses
544,607

 
642,501

 
479,173

 
601,068

 
7,291

 
2,274,640

Operating (loss) income
28,465

 
30,464

 
(26,892
)
 
(28,367
)
 
(62,169
)
 
(58,499
)
Total interest expense
 
 
 
 
 
 
 
 
 
 
116,912

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(175,411
)
Benefit from income taxes
 
 
 
 
 
 
 
 
 
 
(9,814
)
Net loss
 
 
 
 
 
 
 
 
 
 
$
(165,597
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
276,994

 
$
136,795

 
$
73,706

 
$
244,760

 
$
121,202

 
$
853,457

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
2,087

 
$
4,978

 
$
1,122

 
$
4,799

 
$
60,110

 
$
73,096


(In thousands)
Year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
28,226

 
$
30,464

 
$
(27,009
)
 
$
(28,682
)
 
$
(168,596
)
 
$
(165,597
)
Plus: Total interest expense
108

 

 
117

 
315

 
116,372

 
116,912

Plus: (Benefit from) provision for income taxes
131

 

 

 

 
(9,945
)
 
(9,814
)
Plus: Depreciation and amortization
5,049

 
8,230

 
3,854

 
20,577

 
5,057

 
42,767

Plus: Fleet impairment charges

 

 

 
1,582

 

 
1,582

Plus: Long-term incentive compensation expenses

 

 

 

 
2,696

 
2,696

Plus: Operations restructuring costs

 

 

 
4,655

 

 
4,655

Plus: Corporate restructuring and restatement costs

 

 

 

 
22,224

 
22,224

Plus: Adjustments for contingent purchase obligation

 

 

 

 
1,840

 
1,840

Adjusted EBITDA(2)
$
33,514

 
$
38,694

 
$
(23,038
)
 
$
(1,553
)
 
$
(30,352
)
 
$
17,265







(In thousands)
Year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Revenues
$
570,223

 
$
548,059

 
$
463,519

 
$
553,184

 
$
(43,694
)
 
$
2,091,291

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation costs
418,170

 
468,749

 
331,177

 
255,969

 
(43,687
)
 
1,430,378

Personnel and related benefits
58,196

 
33,275

 
70,521

 
117,306

 
17,627

 
296,925

Other operating expenses (4)
60,997

 
16,418

 
83,851

 
178,002

 
19,023

 
358,291

Depreciation and amortization
5,965

 
7,985

 
4,353

 
17,550

 
1,894

 
37,747

Impairment charges
4,402

 

 

 

 

 
4,402

Total operating expenses
547,730

 
526,427

 
489,902

 
568,827

 
(5,143
)
 
2,127,743

Operating (loss) income
22,493

 
21,632

 
(26,383
)
 
(15,643
)
 
(38,551
)
 
(36,452
)
Total interest expense
 
 
 
 
 
 
 
 
 
 
64,049

Loss on early extinguishment of debt
 
 
 
 
 
 
 
 
 
 
15,876

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
(116,377
)
Benefit from income taxes
 
 
 
 
 
 
 
 
 
 
(25,191
)
Net loss
 
 
 
 
 
 
 
 
 
 
$
(91,186
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
271,400

 
$
190,162

 
$
79,065

 
$
272,327

 
$
63,089

 
$
876,043

 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures (1)
$
1,397

 
$
4,695

 
$
1,641

 
$
7,138

 
$
6,839

 
$
21,710


(In thousands)
Year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Ascent
 
Active On-Demand
 
LTL
 
TL
 
Corporate/ Eliminations
 
Total
Net (loss) income
$
22,350

 
$
21,632

 
$
(26,578
)
 
$
(15,599
)
 
$
(92,991
)
 
$
(91,186
)
Plus: Total interest expense
143

 

 
195

 
(44
)
 
63,755

 
64,049

Plus: Benefit from income taxes

 

 

 

 
(25,191
)
 
(25,191
)
Plus: Depreciation and amortization
5,965

 
7,985

 
4,353

 
17,550

 
1,894

 
37,747

Plus: Impairment charges
4,402

 

 

 

 

 
4,402

Plus: Long-term incentive compensation expenses

 

 

 

 
2,450

 
2,450

Plus: Gain on sale of Unitrans

 

 

 

 
(35,440
)
 
(35,440
)
Plus: Loss on debt extinguishments

 

 

 

 
15,876

 
15,876

Plus: Corporate restructuring and restatement costs

 

 

 

 
32,321

 
32,321

Adjusted EBITDA(2)
$
32,860

 
$
29,617

 
$
(22,030
)
 
$
1,907

 
$
(37,326
)
 
$
5,028








(1) Includes non-cash finance leases and capital expenditures not yet paid.

(2) EBITDA represents earnings before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, losses on debt extinguishments, loss on debt restructuring, operations restructuring costs, restructuring and restatement costs associated with legal matters (including our internal investigation, SEC compliance and debt restructuring costs), and adjustments to contingent purchase obligations. We use Adjusted EBITDA as a supplemental measure in evaluating our operating performance and when determining executive incentive compensation. We believe Adjusted EBITDA is useful to investors in evaluating our performance compared to other companies in our industry because it assists in analyzing and benchmarking the performance and value of a business. The calculation of Adjusted EBITDA eliminates the effects of financing, income taxes, and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. Although our management uses Adjusted EBITDA as a financial measure to assess the performance of our business compared to that of others in our industry, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
Adjusted EBITDA does not reflect our cash expenditures, future requirements for capital expenditures, or contractual commitments;
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt or dividend payments on our preferred stock;
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our results of operations under GAAP.

(3) Operations restructuring costs of $4.7 million are included in other operating expenses within the TL segment.

(4) The gain from sale of Unitrans of $35.4 million is included in other operating expenses within Corporate.