http://media.marketwire.com/attachments/201212/114876_88045_Vert_NoTag.jpghttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=983429&ProfileId=051205&sourceType=1CHICAGO, IL -- (Marketwire) -- 02/07/13 -- 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 and year ended December 31, 2012.
Echo reported Non-GAAP net income of $3.5 million and Non-GAAP fully diluted EPS of $0.15 per share in the fourth quarter of 2012. Included in these results is the effect of a higher income tax rate in the fourth quarter of 2012 of $0.01 per share; excluded are the effects of changes in contingent consideration payable.
"Echo posted total revenue of over $211 million in the fourth quarter of 2012, an increase of almost 30% from the fourth quarter of 2011," said Doug Waggoner, Chief Executive Officer of Echo. Waggoner added, "This growth was achieved despite a soft freight environment, and was driven by the investments we are making in our business."
Fourth Quarter Highlights
- Total revenue was $211.2 million, an increase of 29.7% from the fourth quarter of 2011.
- Non-GAAP operating income totaled $6.1 million, an increase of 17.0% from the fourth quarter of 2011.*
- Non-GAAP operating margin was 15.6%, down 79 bps from the fourth quarter of 2011.*
- Non-GAAP net income was $3.5 million, a decrease of 0.8% from the fourth quarter of 2011.*
- Non-GAAP fully diluted EPS was $0.15, a decrease of $0.01 from the fourth quarter of 2011.*
Full Year Highlights
- Total revenue increased 25.7% in 2012 to $757.7 million compared with $602.8 million in 2011.
- Non-GAAP operating income increased 26.5% in 2012 to $23.6 million compared with $18.7 million in 2011.*
- Non-GAAP operating margin increased 57 basis points to 16.5% in 2012 from 15.9% in 2011.*
- Non-GAAP net income increased 19.5% in 2012 to $14.2 million compared with $11.9 million in 2011.*
- Non-GAAP fully diluted EPS was $0.62, increasing 17.9% from 2011.*
* All non-GAAP measures exclude the effects of changes in contingent consideration payable, non-recurring settlement costs and a charge for a loss related to the acquisition of Shipper Direct. For a reconciliation of each non-GAAP financial measure 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:
--------------------------- -------------------------------
Three months ended Year ended December
December 31, 31,
% %
2012 2011 change 2012 2011 change
Amount
s in
000,0
00s,
excep
t per
share
data (unaudited) (unaudited)
--------------------------- -------------------------------
Revenu
e:
Trans
acti
onal $ 149.9 $ 110.5 35.7% $ 526.8 $ 409.0 28.8%
Enter
pris
e $ 61.3 $ 52.4 16.9% $ 230.9 $ 193.8 19.2%
-------- -------- ------- ---------- ---------- -------
Tota
l
Rev
enu
e 211.2 162.9 29.7% 757.7 602.8 25.7%
Net
reven
ue 39.1 31.8 22.9% 143.1 117.2 22.1%
Operat
ing
expen
ses
Commi
ssio
ns 10.6 9.9 6.7% 40.4 35.9 12.6%
Selli
ng,
gene
ral
and
admi
nist
rati
ve 19.7 14.5 36.2% 70.0 54.3 28.8%
Depre
ciat
ion
and
amor
tiza
tion 2.7 2.2 22.1% 9.1 8.3 9.7%
-------- -------- ------- ---------- ---------- -------
Tota
l
ope
rat
ing
exp
ens
es
(1) 33.0 26.6 24.1% 119.5 98.5 21.3%
-------- -------- ------- ---------- ---------- -------
Non-
GAAP
Opera
ting
incom
e (1) 6.1 5.2 17.0% 23.6 18.7 26.5%
-------- -------- ------- ---------- ---------- -------
Other
expen
se 0.1 0.1 35.4% 0.4 0.3 58.3%
-------- -------- ------- ---------- ---------- -------
Non-
GAAP
Incom
e
befor
e
taxes
(1) 6.0 5.1 16.8% 23.2 18.4 26.0%
-------- -------- ------- ---------- ---------- -------
Income
taxes
(1) 2.5 1.6 55.4% 9.0 6.5 37.8%
-------- -------- ------- ---------- ---------- -------
Non
GAAP
net
incom
e (2) 3.5 3.5 -0.8% 14.2 11.9 19.5%
======== ======== ======= ========== ========== =======
-------- -------- ------- ---------- ---------- -------
Non
GAAP
EPS
(2) $ 0.15 $ 0.16 -3.2% $ 0.62 $ 0.53 17.9%
======== ======== ======= ========== ========== =======
Dilute
d
share
s 23.2 22.6 22.9 22.6
-------- -------- ------- ---------- ---------- -------
Reconc
iliat
ion
to
GAAP
Opera
ting
Incom
e,
Opera
ting
Margi
n,
Net
incom
e and
EPS
-------- -------- ------- ---------- ---------- -------
Non-
GAAP
Opera
ting
Incom
e (1) 6.1 5.2 17.0% 23.6 18.7 26.5%
Chang
e in
cont
inge
nt
cons
ider
atio
n
paya
ble (0.3) (0.0) 80473.5% 0.1 0.2 -47.5%
Loss
asso
ciat
ed
with
Ship
per
Dire
ct
acqu
isit
ion - - n/a (2.5) - n/a
Non-
recu
rrin
g
sett
leme
nt
cost
s - - n/a (0.7) - n/a
-------- -------- ------- ---------- ---------- -------
Operat
ing
Incom
e 5.8 5.2 11.0% 20.5 18.9 8.4%
-------- -------- ------- ---------- ---------- -------
Non-
GAAP
Opera
ting
Margi
n (1) 15.6% 16.3% (79) bps 16.5% 15.9% 57 bps
Effec
t of
chan
ge
in
cont
inge
nt
cons
ider
atio
n
paya
ble,
loss
asso
ciat
ed
with
Ship
per
Dire
ct
acqu
isit
ion,
and
non-
recu
rrin
g
sett
leme
nt
cost
s -0.8% 0.0% (80) bps -2.2% 0.3% (238) bps
-------- -------- ------- ---------- ---------- -------
Operat
ing
Margi
n (%
of
Net
Reven
ue) 14.8% 16.3% (159) bps 14.3% 16.2% (181) bps
-------- -------- ------- ---------- ---------- -------
Non-
GAAP
Net
Incom
e (2) 3.5 3.5 -0.8% 14.2 11.9 19.5%
Chang
e in
cont
inge
nt
cons
ider
atio
n
paya
ble,
loss
asso
ciat
ed
with
Ship
per
Dire
ct
acqu
isit
ion,
and
non-
recu
rrin
g
sett
leme
nt
cost
s,
net
of
tax
effe
ct (0.2) (0.0) 74517.4% (1.9) 0.1 -1318.8%
-------- -------- ------- ---------- ---------- -------
Net
Incom
e 3.3 3.5 -6.0% 12.3 12.0 2.3%
======== ======== ======= ========== ========== =======
Non-
GAAP
Fully
Dilut
ed
EPS
(2) $ 0.15 $ 0.16 -3.2% $ 0.62 $ 0.53 17.9%
Chang
e in
cont
inge
nt
cons
ider
atio
n
paya
ble,
loss
asso
ciat
ed
with
Ship
per
Dire
ct
acqu
isit
ion,
and
non-
recu
rrin
g
sett
leme
nt
cost
s,
net
of
tax
effe
ct (0.01) (0.00) 72737.6% (0.08) 0.00 -1301.6%
-------- -------- ------- ---------- ---------- -------
Fully
dilut
ed
EPS $ 0.14 $ 0.16 -8.2% $ 0.54 $ 0.53 0.8%
======== ======== ======= ========== ========== =======
-------- -------- ------- ---------- ---------- -------
Operat
ing
Metri
cs
-------- -------- ------- ---------- ---------- -------
Net
reve
nue
marg
in 18.5% 19.5% (102) bps 18.9% 19.4% (56) bps
Opera
ting
marg
in
(%
of
net
reve
nue)
(1) 15.6% 16.3% (79) bps 16.5% 15.9% 57 bps
Shipm
ent
volu
me 426,095 354,595 20.2% 1,649,338 1,376,006 19.9%
Numbe
r of
ente
rpri
se
clie
nts 203 177 14.7% 203 177 14.7%
Total
empl
oyee
s 1,364 1,157 17.9% 1,364 1,157 17.9%
Sales
empl
oyee
s
and
agen
ts 873 757 15.3% 873 757 15.3%
Less
Than
Truc
kloa
d
(LTL
)
Reve
nue
% 40.8% 45.7% (481) bps 44.5% 47.5% (297) bps
Truck
load
(TL)
Reve
nue
% 43.1% 44.3% (119) bps 43.6% 43.6% (5) bps
Inter
moda
l
Reve
nue
% 8.6% 2.7% 592 bps 4.9% 1.9% 299 bps
(1) Amounts shown exclude the effects of changes in contingent consideration
payable, non-recurring settlement costs, and the loss associated with the
Shipper Direct acquisition
(2) Amounts shown exclude the tax effected changes in contingent
consideration payable, non-recurring settlement costs, and the loss
associated with the Shipper Direct acquisition
Included in our full year results is a $0.07 charge for an acquisition related loss on the acquisition of Shipper Direct. We have filed a Form 8-K reflecting the impact on our third quarter results. We intend to file a Form 10QA as soon as practically possible.
"Our fourth quarter results reflect the resiliency of our market strategy in all phases of the economic cycle," said Dave Menzel, Chief Financial Officer of Echo. He added, "Our Sharp acquisition supplemented our organic growth strategy with $18.5 million of revenue during the quarter, while our Enterprise business complemented our transactional client base in the fourth quarter, growing by 16.9% compared to the fourth quarter of 2011. As we made investments in our sales force and technology to support our long term growth objectives, our diversified sales strategy continued to deliver double digit total revenue growth."
Business Outlook
Waggoner stated, "Our investments in our people and our service capabilities during 2012 position us well for continued growth and improving profitability in 2013. We are focused on generating returns from these investments while continuing to execute our long term strategy."
"In 2013, we anticipate delivering total revenue in the range of $940 million to $980 million and earnings per share in the range of $0.82 to $0.90," Mr. Waggoner continued. "We anticipate operating margin increases in the second half of the year."
Conference Call
A conference call, with accompanying presentation slides, will be broadcast live on February 7, 2013 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, non-recurring settlement costs and the charge for a loss related to the acquisition of Shipper Direct. 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 each non-GAAP financial measure to the nearest comparable GAAP measure, see "Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS" included in this release.
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 Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
(Unaudited) (Unaudited)
-------------------------- --------------------------
REVENUE $211,150,018 $162,857,428 $757,687,585 $602,763,471
COSTS AND EXPENSES
Transportation
costs 172,087,274 131,072,715 614,562,437 485,546,842
Selling, general,
and administrative
expenses 30,639,074 24,412,069 113,454,258 89,952,126
Depreciation and
amortization 2,658,971 2,177,074 9,139,232 8,329,836
------------ ------------ ------------ ------------
INCOME FROM
OPERATIONS 5,764,699 5,195,570 20,531,658 18,934,667
OTHER EXPENSE (73,570) (53,885) (433,401) (273,176)
------------ ------------ ------------ ------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 5,691,129 5,141,685 20,098,257 18,661,491
INCOME TAX EXPENSE (2,370,645) (1,609,727) (7,776,843) (6,613,319)
------------ ------------ ------------ ------------
NET INCOME $ 3,320,484 $ 3,531,958 $ 12,321,414 $ 12,048,172
============ ============ ============ ============
Basic net income per
share $ 0.15 $ 0.16 $ 0.55 $ 0.54
Diluted net income
per share $ 0.14 $ 0.16 $ 0.54 $ 0.53
Echo Global Logistics, Inc.
Condensed Consolidated Balance Sheets
December 31, December 31,
2012 2011
(Unaudited)
--------------- ---------------
Cash and cash equivalents $ 41,780,984 $ 47,007,309
Accounts receivable, net of allowance for
doubtful accounts 96,623,553 89,191,456
Prepaid expenses 2,491,955 4,634,612
Other current assets 843,009 800,648
Total long term assets 77,743,563 58,864,061
--------------- ---------------
Total assets $ 219,483,064 $ 200,498,086
=============== ===============
Accounts payable - trade $ 58,889,437 $ 59,949,927
Current maturities of capital lease
obligations 24,086 175,166
Other liabilites 12,074,645 10,474,434
Deferred income taxes 1,915,847 2,979,483
Long term liabilities 5,593,639 7,597,478
Stockholders' equity 140,985,410 119,321,598
--------------- ---------------
Total liabilities and stockholders' equity $ 219,483,064 $ 200,498,086
=============== ===============
- -
Echo Global Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
Twelve Months Ended December 31,
2012 2011
(Unaudited)
---------------- ----------------
Net cash provided by operating
activities $ 22,787,967 $ 15,749,580
Net cash used in investing activities (25,285,290) (11,344,927)
Net cash provided by (used in) financing
activities (2,729,002) (615,508)
---------------- ----------------
Increase/(decrease) in cash and cash
equivalents (5,226,325) 3,789,145
Cash and cash equivalents, beginning of
period 47,007,309 43,218,164
---------------- ----------------
Cash and cash equivalents, end of period $ 41,780,984 $ 47,007,309
================ ================
About Echo Global Logistics
Echo Global Logistics, based in Chicago, is a leading provider of technology-enabled transportation and supply chain management services. Echo maintains a proprietary web-based technology platform that compiles and analyzes data from its network of over 24,000 transportation providers to serve its clients' transportation and supply chain management needs. Echo services clients across a wide range of industries, such as manufacturing, construction, consumer products and retail. For more information on Echo, visit: www.echo.com.