Daseke Q1For those who haven't seen it, they seem to confirm that a strong turnaround is in place. As previously mentioned, taking the shares seems like the best option because if DSKE can get back to its January SP, then our equivalent AVE shares become worth north of $1.30 [$14 x .0751 (each AVE share) x 1.27(conversion back to C$)] with a potential $0.45 bonus on top of that. GLTA
Daseke Doubles First Quarter 2018 Revenue, Reporting Record Results
ADDISON, Texas, May 08, 2018 (GLOBE NEWSWIRE) -- Daseke, Inc. (NASDAQ:DSKE) (NASDAQ:DSKEW), the largest owner of flatbed and specialized transportation and logistics solutions in North America, today reported financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights vs. Same Year-Ago Quarter
- Revenue increased 104% to $327.6 million.
- Flatbed Solutions revenue up 78% to $145.0 million; Specialized Solutions revenue up 129% to $184.9 million1.
- Net loss improved significantly to $(0.8) million, or $(0.04) per share, compared to a net loss of $(7.7) million, or $(0.32) per share.
- Adjusted EBITDA increased 100% to $35.2 million.
Management Commentary
“The first quarter of 2018 marks our one-year anniversary of being public,” said Don Daseke, chairman and CEO. “Since becoming public, we have more than doubled our revenue, doubled our Adjusted EBITDA and acquired seven companies of scale. These results follow our clear strategy of building the premier flatbed and specialized logistics provider.
“We began 2018 on a strong note with 10% revenue growth in both our specialized and flatbed segments on an Acquisition Adjusted2 basis. This was driven by favorable year-over-year rate increases in each segment, along with 11% growth in Specialized revenue per truck due to increased revenue synergies in several key markets.
“We expect to carry this momentum throughout 2018 by executing on our well-defined strategic priorities. This begins with a focus on organic growth via appropriate operations consolidation and an emphasis on increasing rates while controlling costs. We also remain committed to a focused M&A strategy and our pipeline remains robust. Our recent agreement to acquire Aveda Transportation and Energy Services, a fast-growing, value-additive business in a niche market, is a testament to the quality of our pipeline and our scalable platform.”
First Quarter 2018 Financial Results
Revenue in the first quarter of 2018 increased 104% to $327.6 million compared to $160.4 million in the year-ago quarter. The increase was driven by the acquisition of seven operating companies of scale during 2017. Excluding the acquisitions, revenues increased 10% largely due to an improvement in rates in both the Flatbed and Specialized segments.
Net loss in the first quarter of 2018 improved significantly to $(0.8) million, or $(0.04) per share, compared to a net loss of $(7.7) million, or $(0.32) per share, in the first quarter of 2017 and compared to Acquisition Adjusted net loss in the first quarter of 2017 of $(3.1) million.
Adjusted EBITDA (a non-GAAP term defined below) increased 100% to $35.2 million compared to $17.6 million in the first quarter of 2017 and compared to Acquisition Adjusted EBITDA in the first quarter of 2017 of $31.4 million. Both the significant improvements in net loss and Adjusted EBITDA was primarily driven by the aforementioned acquisitions.
Segment Results
Flatbed Solutions - Flatbed Solutions revenue in the first quarter of 2018 increased 78% to $145.0 million1 compared to $81.3 million in the year-ago quarter. This was driven by the acquisition of TSH & Co. on December 1, 2017, as well as a 6% increase in flatbed rate per mile and 3% growth in revenue per truck. Excluding the impact of the acquisition, rates were up 10% compared to the year-ago quarter. Operating income was $7.0 million, up 80% from $3.9 million in the first quarter of 2017.
Specialized Solutions - Specialized Solutions revenue in the first quarter of 2018 increased 129% to $184.9 million1 compared to $80.7 million in the year-ago quarter. The increase was driven by six specialized acquisitions of scale since the first quarter of 2017, as well as a 5% increase in specialized rate per mile and 10% growth in revenue per truck. Excluding the impact of the acquisitions, rates were up 8% compared to the year-ago quarter. Operating income was $5.1 million, up 411% from $1.0 million in the first quarter of 2017.
2018 Outlook
On Daseke’s fourth quarter 2017 earnings call, it introduced its 2018 outlook, expecting to grow revenue to approximately $1.35 billion compared to $846.3 million in 2017, and Adjusted EBITDA to approximately $150 million compared to $91.6 million in 2017. Replacement capital expenditures in 2018 are expected to be approximately $65 million with $20-$40 million in growth capital expenditures. While the Company reported a strong first quarter, Daseke plans to update its full-year outlook on the second quarter call, which will reflect the anticipated June closing of Aveda.