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10-Q
XPO LOGISTICS, INC. filed this Form 10-Q on 11/05/2018
Entire Document
 

delivering six million shares of common stock to the Forward Counterparties for net cash proceeds to us of approximately $349 million. As a part of our ordinary course treasury management activities, we have applied these net cash proceeds to the repayment of the Senior Notes due 2022 as described above thereby reducing our overall outstanding debt and interest expense.
Sources and Uses of Cash
During the nine months ended September 30, 2018, we: (i) generated cash from operating activities of $536.2 million, (ii) received proceeds of $348.5 million from our forward sale settlement, and (iii) generated proceeds from sales of assets of $91.7 million. We used cash during this period principally to (i) purchase property and equipment of $413.1 million, (ii) make repurchases, net of proceeds, of $329.6 million on our long-term debt, (iii) make repayments, net of advances, of $100.0 million on our ABL Facility, (iv) make payments on long-term debt and capital leases of $84.7 million, and (v) make payments for tax withholdings on restricted shares of $48.8 million.
During the nine months ended September 30, 2017, we: (i) generated cash from operating activities of $519.5 million, (ii) received proceeds of $287.6 million from our common stock offering, and (iii) generated proceeds from sales of assets of $59.6 million. We used cash during this period principally to (i) purchase property and equipment of $389.9 million, (ii) redeem our Senior Notes due 2018 for $271.5 million, (iii) make payments on long-term debt and capital leases of $80.9 million, (iv) make repayments, net of advances, of $30.0 million on our ABL Facility, (v) make payments for tax withholdings on restricted shares of $15.2 million, and (vi) make payments for debt issuance costs of $12.8 million in connection with the refinancing of our Term Loan facility.
Cash flows from operating activities for the nine months ended September 30, 2018 increased by $16.7 million compared to the prior year nine-month period due to higher cash-related net income of $200.2 million, partially offset by net movements in operating assets and liabilities of $183.5 million. The increase in cash-related net income for the nine months ended September 30, 2018 compared to 2017 was primarily due to higher revenues in both our Transportation and Logistics segments. Cash-related net income represents total cash flows from operating activities less changes in assets and liabilities on the Condensed Consolidated Statements of Cash Flows. The largest components of cash-related net income are Net income plus Depreciation and amortization. The changes in the balances of operating assets and liabilities for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 primarily resulted from higher revenues, which led to a higher growth in accounts receivable on a year-over-year basis. Additionally, the timing of payments related to our trade payables and legal settlement payments contributed to the changes in accounts payable and accrued expenses.
Investing activities used $334.4 million and $330.3 million of cash in the nine months ended September 30, 2018 and 2017, respectively. During the nine months ended September 30, 2018, we used $413.1 million of cash to purchase property and equipment and received $91.7 million from the sale of assets. During the nine months ended September 30, 2017, we used $389.9 million of cash to purchase property and equipment and received $59.6 million from the sale of assets.
Financing activities used $200.5 million and $103.5 million of cash in the nine months ended September 30, 2018 and 2017, respectively. The main sources of cash from financing activities during the nine months ended September 30, 2018 were $889.4 million of net proceeds from the issuance of long-term debt, consisting of the refinancing of the Existing Term Loans and amounts received under the senior variable funding notes in connection with our trade securitization program, and $348.5 million of proceeds from our forward sale settlement. The primary uses of cash during the nine months ended September 30, 2018 were the $1,225.4 million repurchase of debt, consisting of the refinancing of the Existing Term Loans and the partial redemption of our Senior Notes due 2022, $100.0 million of net repayments on our ABL Facility, the $84.7 million repayment of debt and capital leases and $48.8 million of payments for tax withholding related to restricted shares. During the nine months ended September 30, 2017, the main sources of cash were the $510.7 million of net proceeds from the issuance of long-term debt and $287.6 million of proceeds from our common stock offering. Our primary uses of cash from financing activities during the nine months ended September 30, 2017 were the $782.9 million repurchase of debt, $80.9 million repayment of debt and capital leases, $30.0 million of net repayments on our ABL Facility and $15.2 million of payments for tax withholding related to restricted shares.


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