XPO LogisticsMain phone numbers Shippers: (855) SHIP-XPO (744-7976)   Carriers: (855) XPO-LOAD (976-5623)

Earnings Disclosure

XPO Logistics Fourth Quarter 2012 Conference Call

Thursday, February 28, 2013 8:30 a.m. ET  

Share this page

What's This?

Share this page through your favorite social site/service or email this page to a colleague.

Select from the list of provided links to share the URL of this page with interested parties. You may be required to log in to the selected social site/service to complete the process.

Subscribe to RSS Updates

What’s RSS?

RSS delivers new content to you on the topics in which you are interested. You can subscribe to RSS feeds through a RSS compatible browser or stand-alone RSS feed reader / aggregator.

Subscribe to e-mail updates

Sign up for e-mail alerts.

What's This?

You may automatically receive information by e-mail.

To choose your options for e-mail notification, please enter your e-mail address and click Submit.

Stock Quote

XPO (Common Stock)

Exchange
NYSE (US Dollar)
Price
$44.15
Change (%)
 Stock is Up 0.22 (0.50%)
Volume
490,073
Today's Open
$44.00
Previous Close
$43.93

Data as of 02/27/15 4:06 p.m. ET

Minimum 20 minute delay
Refresh quote

XPO Logistics Announces Fourth Quarter and Full Year 2012 Results

Provides Full Year 2013 Outlook

Acquires Covered Logistics

GREENWICH, Conn. - February 27, 2013 - XPO Logistics, Inc. (NYSE: XPO) today announced financial results for the fourth quarter and full year 2012.

For the fourth quarter of 2012, total revenue was $108.5 million, a 146.1% increase from the same period the prior year. Gross margin dollars increased 118.4% year-over-year to $15.7 million, and gross margin percentage was 14.4%.

Consistent with the company's previously announced strategy, investments in long-term growth impacted fourth quarter results. The company reported a net loss of $9.3 million for the quarter, compared with a net loss of $1.5 million for the same period in 2011. The fourth quarter net loss available to common shareholders was $10.1 million, or a loss of $0.57 per diluted share, compared with a net loss available to common shareholders of $2.2 million, or a loss of $0.27 per diluted share, for the same period in 2011.  

Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA"), a non-GAAP financial measure, was a loss of $9.9 million for the fourth quarter of 2012, compared with a loss of $2.1 million for the same period in 2011. EBITDA includes $913,000 and $882,000 of non-cash share-based compensation for the fourth quarters of 2012 and 2011, respectively. A reconciliation of EBITDA to net income is provided in the attached financial tables.

The company had $252.3 million of cash as of December 31, 2012.

2013 Outlook

The company provided the following outlook for full year 2013:

  • An annual revenue run rate of more than $1 billion as of December 31;  

  • At least $300 million of acquired historical annual revenue; 

  • Positive EBITDA for the fourth quarter; and 

  • At least three new freight brokerage cold-starts. 

Acquires Covered Logistics & Transportation LLC

On February 22, 2013, the company acquired substantially all of the operating assets of Covered Logistics & Transportation LLC, a non-asset, third party freight brokerage business with 2012 revenues of approximately $27 million. The purchase price was $8 million in cash and $3 million in XPO common stock, excluding any working capital adjustments, with no assumption of debt. The acquisition is expected to be immediately accretive to earnings.

Founded in 2005, Covered Logistics has over 4,000 carrier relationships and a strong track record of serving the manufacturing, postal, consumer, and oil and gas sectors. Its offices are located in Lake Forest, Ill., and Dallas, Texas. Co-founders Tuck Jasper, Paul Jasper and Patrick Gillihan will continue to lead the operations, which are being rebranded as XPO Logistics.

CEO Comments

Bradley Jacobs, chairman and chief executive officer, said, "The actions we're taking to scale up the business are continuing to drive results. Our fourth quarter revenue was up 146% year-over-year, and gross margin dollars increased by 118%. Our freight brokerage business generated 760% more revenue in the quarter, as compared to the prior year period. Our expedite business achieved top line growth of 8.7% for the quarter, and we have new initiatives in place to gain margin. Freight forwarding had a 62% increase in gross margin dollars versus fourth quarter 2011. While our investments in people and technology resulted in a loss, as expected, they are fundamentally important to value creation. We're currently on an annual revenue run rate of over $500 million, and we expect that rate to be more than a billion dollars by year-end."

Jacobs continued, "Our most recent acquisition, Covered Logistics, is a well-run freight brokerage operation that we plan to integrate and scale up quickly. The Covered team has deep roots in the industry and they share our passion for growth. This is our second acquisition of 2013 from a pipeline of solid prospects. We expect to add at least $300 million of acquired historical annual revenue in 2013.

"We remain focused on executing the three parts of our strategy: acquisitions, cold-starts and the optimization of our operations. In 14 months, we've acquired six companies and opened 17 cold-starts, eight in freight brokerage. Our footprint now stands at 60 locations. We've grown our headcount from 208 to more than 900 employees. We're steadily enhancing our proprietary technology, and implementing leading edge recruitment and training programs. Most importantly, we've created a driven culture that keeps us on track to grow XPO into a multi-billion dollar company."

Fourth Quarter 2012 Results by Business Unit

  • Freight brokerage: The company's freight brokerage business generated total revenue of $71.1 million for the quarter, a 760.3% increase from the same period the prior year. Year-over-year revenue growth was primarily due to the acquisitions of Turbo Logistics, Kelron Logistics, Continental Freight Services and BirdDog Logistics, as well as revenue growth from the company's eight brokerage cold-start locations. The acquisition of Turbo Logistics on October 24, 2012, had a positive revenue impact of $27.2 million for the quarter. Gross margin percentage for the freight brokerage business was 13.4% for the quarter, compared with 16.8% for the same period in 2011. The decline in gross margin percentage was primarily due to the addition of seven new cold-starts in 2012, which are still in the start-up phase. The fourth quarter operating loss was $2.5 million, compared with operating income of $496,000 the prior year. The decline in 2012 operating income primarily reflects a planned increase in SG&A expense associated with significant growth initiatives, including sales force recruitment.   

  • Expedited transportation: The company's expedited services business generated total revenue of $22.1 million for the quarter, an 8.7% increase from the same period the prior year. Revenue growth was primarily driven by an increase in average revenue-per-load and growth in the company's domestic, international and temperature-controlled services. Gross margin percentage was 16.5% for the quarter, compared with 20.9% for the same period in 2011. The decrease in gross margin percentage primarily reflects higher rates paid to independent fleet owners and owner-operators, effective March 1, 2012, and an increase in the volume of cross-border loads, which typically generate a lower margin. Fourth quarter operating income was $1.0 million, compared with $1.8 million the prior year, primarily reflecting the year-over-year decrease in gross margin.  

  • Freight forwarding: The company's freight forwarding business generated total revenue of $18.5 million for the quarter, a 10.1% increase from the same period the prior year. Gross margin percentage was 13.5% for the quarter, compared with 9.2% for the same period in 2011. The improvements in revenue and gross margin percentage reflect a revenue increase from company-owned branches. Fourth quarter operating income was $454,000, compared with $35,000 for the same period the prior year. The increase in operating income reflects a higher gross margin, partially offset by higher SG&A costs associated with new company-owned locations in Chicago, Houston, Los Angeles, Minneapolis, Charlotte and Atlanta.  

  • Corporate: Corporate SG&A expense for the fourth quarter of 2012 increased by $5.3 million, compared with the same period the prior year. The increase was driven by a higher headcount in corporate shared services and higher purchased services. Corporate SG&A expense for the fourth quarter of 2012 included approximately $1.4 million of litigation-related legal costs; $1.0 million of acquisition-related transaction costs; and $913,000 of non-cash share based compensation.  

Full Year 2012 Financial Results

For the full year 2012, total revenue was $278.6 million, a 57.3% increase from 2011. Gross margin dollars increased 37.1% year-over-year to $40.8 million, and gross margin percentage was 14.7%.

Consistent with the company's previously announced strategy, investments in long-term growth impacted full year results. The company reported a net loss of $20.3 million for the full year 2012, compared with net income of $759,000 for 2011. The net loss available to common shareholders was $23.3 million, or a loss of $1.49 per diluted share, compared with a net loss available to common shareholders of $44.6 million, or a loss of $5.41 per diluted share, for 2011. The full year 2012 loss includes a charge of $0.19 per diluted share related to $3.0 million in cumulative preferred dividends. The full year 2011 loss includes a non-cash charge of $44.2 million, or $5.36 per diluted share, related to the September 2011 equity investment in the company.

EBITDA was a loss of $25.8 million for the full year 2012, compared with $2.7 million of EBITDA generated in 2011. Full year 2012 EBITDA was impacted by a $2.9 million expense ($1.9 million after tax) for acquisition-related transaction costs; a $2.5 million expense ($1.6 million after tax) for litigation-related legal costs; a $540,000 expense ($344,000 after tax) for compensation, severance and professional fees related to the composition of the company's executive team; a $480,000 expense ($306,000 after tax) for consulting fees in connection with securing an agreement with the state of North Carolina for up to $3.2 million in future tax incentives; and $4.4 million of non-cash share-based compensation. A reconciliation of EBITDA to net income is provided in the attached financial tables.

Conference Call

The company will hold a conference call on Thursday, February 28, 2013, at 8:30 a.m. Eastern Time. Participants can call toll-free (from U.S./Canada) 1-800-446-1671; international callers dial +1-847-413-3362. A live webcast of the conference will be available on the Investor Relations area of the company's website, www.xpologistics.com. The conference will be archived until March 30, 2013. To access the replay by phone, call toll-free (from U.S./Canada) 1-888-843-7419; international callers dial +1-630-652-3042. Use participant passcode 34113016.

About XPO Logistics, Inc.  

XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providers of non-asset, third-party freight transportation services in North America. The company uses its relationships with more than 22,000 ground, sea and air carriers to find the best transportation solutions for its customers. XPO Logistics offers its services through three business units: freight brokerage, expedited transportation and freight forwarding. The company serves more than 7,750 customers in the retail, commercial, manufacturing and industrial sectors through 60 locations, including 36 branches in the United States and Canada and 24 agent offices. www.xpologistics.com

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under Securities and Exchange Commission ("SEC") rules, such as earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA") for the quarters and years ended December 31, 2012 and December 31, 2011. As required by SEC rules, we provide reconciliations of these measures to the most directly comparable measure under United States generally accepted accounting principles ("GAAP"), which are set forth in the attachments to this release. We believe that EBITDA improves comparability from period to period by removing the impact of our capital structure (interest expense from our outstanding debt), asset base (depreciation and amortization) and tax consequences. In addition to its use by management, we believe that EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of companies in our industry. Other companies may calculate EBITDA differently, and therefore our EBITDA may not be comparable to similarly titled measures of other companies. EBITDA is not a measure of financial performance or liquidity under GAAP and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from EBITDA are significant and necessary components of the operations of our business, and, therefore, EBITDA should only be used as a supplemental measure of our operating performance.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, our 2013 outlook with respect to annual revenue, acquisitions, fourth quarter 2013 EBITDA and freight brokerage cold-starts. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, those discussed in our filings with the SEC and the following: economic conditions generally; competition; our ability to find suitable acquisition candidates and execute our acquisition strategy; our ability to raise capital; our ability to attract and retain key employees to execute our growth strategy; our ability to develop and implement a suitable information technology system; our ability to maintain positive relationships with our network of third-party transportation providers; litigation; and governmental regulation. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof and we do not undertake any obligation to update forward-looking statements, including our 2013 outlook, to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events.

Investor Contact:
XPO Logistics, Inc.
Michelle Muniz, +1-203-930-1459
michelle.muniz@xpologistics.com

Media Contact:
Brunswick Group
Steve Lipin / Gemma Hart, +1-212-333-3810



XPO Logistics, Inc.
Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2012 2011     2012     2011
Revenues
  Operating revenue $ 108,503 $ 44,085 $ 278,591 $ 177,076
Expenses
  Direct expense 92,840 36,914 237,765 147,298
    Gross margin 15,663 7,171 40,826 29,778
  Sales general and administrative expense 26,755 9,560 68,790 28,054
Operating (loss) income (11,092) (2,389) (27,964) 1,724
  Other (income) expense 44 (6) 363 56
  Interest expense 3,177 46 3,207 191
(Loss) income before income tax provision (14,313) (2,429) (31,534) 1,477
  Income tax provision (4,994) (967) (11,195) 718
Net (loss) income (9,319) (1,462) (20,339) 759
  Preferred stock beneficial conversion charge 0 0 0 (44,211)
  Cumulative preferred dividends (743) (750) (2,993) (1,125)
Net (loss) income available to common shareholders $ (10,062) $ (2,212) $ (23,332) $ (44,577)
Basic income per share
  Net (loss) income $ (0.57) $ (0.27) $ (1.49) $ (5.41)
Diluted income per share
  Net (loss) income $ (0.57) $ (0.27) $ (1.49) $ (5.41)
Weighted average common shares outstanding
  Basic weighted average common shares outstanding 17,702 8,252 15,694 8,247
  Diluted weighted average common shares outstanding 17,702 8,252 15,694 8,247


Note:  All share-related amounts in this press release and the financial tables reflect the 4-for-1 reverse stock split that was effected on September 2, 2011.



XPO Logistics, Inc.
Consolidated Balance Sheets
(in thousands except share data)
December 31, 2012 December 31, 2011
ASSETS (Unaudited)
Current assets:
  Cash and cash equivalents $ 252,293 $ 74,007
  Accounts receivable, net of allowances of $603 and $356, respectively 61,245 22,425
  Prepaid expenses 1,555 426
  Deferred tax asset, current 1,406 955
  Income tax receivable 2,569 1,109
  Other current assets 1,866 219
    Total current assets 320,934 99,141
  Property and equipment, net of $5,323 and $3,937
  in accumulated depreciation, respectively 13,090 2,979
  Goodwill 55,947 16,959
  Identifiable intangible assets, net of  $4,592 and $3,320
  in accumulated amortization, respectively 22,473 8,053
  Other long-term assets 764 509
   Total long-term assets 92,274 28,500
    Total assets $ 413,208 $ 127,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable $ 22,108 $ 8,565
  Accrued salaries and wages 3,516 2,234
  Accrued expenses, other 21,123 2,789
  Current maturities of notes payable and capital leases 491 1,675
  Other current liabilities 1,789 808
    Total current liabilities 49,027 16,071
  Convertible senior notes 108,280 0
  Notes payable and capital leases, net of current maturities 676 454
  Deferred tax liability, long term 6,781 2,346
  Other long-term liabilities 3,385 410
    Total long-term liabilities 119,122 3,210
Stockholders' equity:
 Preferred stock, $.001 par value; 10,000,000 shares;
   74,275 shares issued and outstanding 42,794 42,794
  Common stock, $.001 par value; 150,000,000 shares authorized;
  18,002,985 and 8,410,353
  shares issued, respectively; and17,957,985 and 8,365,353 shares
  outstanding, respectively 18 8
  Additional paid-in capital 262,641 102,613
  Treasury stock, at cost, 45,000 shares held (107) (107)
  Accumulated deficit (60,287) (36,948)
    Total stockholders' equity 245,059 108,360
      Total liabilities and stockholders' equity $ 413,208 $ 127,641



XPO Logistics, Inc.
Consolidated Statement of Cash Flows
(in thousands, except per share amounts)
Year Ended December 31,
2012     2011 2010
Operating activities
 Net income $ (20,339) $ 759 $ 4,888
Adjustments to reconcile net income to net cash from operating activities
Provisions for allowance for doubtful accounts 916 219 (84)
Depreciation & amortization expense 2,713 1,240 1,290
Accretion of debt 1,475 0 0
Stock compensation expense 4,398 1,180 157
Other 2 12 4
Non-cash impairment of incentive payments 0 0 75
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable (13,755) 1,627 (6,618)
Deferred tax expense (8,260) (327) 900
Income tax receivable (1,556) 239 (1,348)
Other current assets 1,593 595 (355)
Prepaid expenses (769) (170) (99)
Other long-term assets and advances (276) 97 338
Accounts payable (2,585) (191) 1,987
Accrued expenses 12,661 1,097 1,780
Other liabilities (518) 234 (658)
Cash provided (used) by operating activities (24,300) 6,611 2,257
Investing activities
Acquisition of businesses, net of cash acquired (57,236) 0 0
Payment of acquisition earn-out (450) (450) (500)
Payment for purchases of property and equipment (6,981) (754) (811)
Proceeds from sale of assets 0 13 2
Cash Flows used by investing activities (64,667) (1,191) (1,309)
Financing Activities
Credit line, net activity (2,068) (2,749) (3,781)
Proceeds from issuance of preferred stock, net of issuance costs 0 71,628 0
Proceeds from issuance of convertible senior notes, net 138,504 0 0
Proceeds from issuance of long-term debt 0 0 5,000
Payments of notes payable and capital leases (2,190) (1,633) (2,665)
Excess tax benefit from stock options 0 451 0
Proceeds from stock offering 136,961 0 0
Proceeds from exercise of options, net 248 704 564
Payments of tax withholdings for restricted shares (1,226) 0 0
Dividends paid to preferred stockholders (3,000) (375) 0
Cash flows provided  by Financing Activities 267,229 68,026 (882)
Effect of exchange rate changes on cash 24 0 0
Net increase  in cash 178,286 73,446 66
Cash, beginning of period 74,007 561 495
Cash, end of period of period $ 252,293 $ 74,007 $ 561
Supplemental disclosure of noncash activities:
  Cash paid during the period for interest 22 110 124
  Cash paid during the period for income taxes 247 233 3,521



Freight Brokerage
Summary Financial Table
(in thousands)
Three Months Ended December 31,
2012     2011     $ Variance       Change %
Revenue    
  Operating revenue $ 71,146 $ 8,270 $ 62,876 760.3%
Direct expense
  Transportation services 61,379 6,872 54,507 793.2%
  Other direct expense 245 9 236 2622.2%
Total direct expense 61,624 6,881 54,743 795.6%
    Gross margin 9,522 1,389 8,133 585.5%
SG&A expense
  Salaries & benefits 8,778 705 8,073 1145.1%
  Purchased services 672 35 637 1820.0%
  Other SG&A expense 1,734 141 1,593 1129.8%
  Depreciation & amortization 810 12 798 6650.0%
Total SG&A expense 11,994 893 11,101 1243.1%
Operating (loss) income $ (2,472) $ 496 $ (2,968) -598.4%
   
Year Ended December 31,
2012 2011     $ Variance       Change %
Revenue
  Operating revenue $ 125,121 $ 29,186 $ 95,935 328.7%
Direct expense
  Transportation services 108,507 24,434 84,073 344.1%
  Other direct expense 489 55 434 789.1%
Total direct expense 108,996 24,489 84,507 345.1%
    Gross margin 16,125 4,697 11,428 243.3%
SG&A expense
  Salaries & benefits 15,170 2,484 12,686 510.7%
  Purchased services 1,694 148 1,546 1044.6%
  Other SG&A expense 3,590 716 2,874 401.4%
  Depreciation & amortization 1,223 44 1,179 2679.5%
Total SG&A expense 21,677 3,392 18,285 539.1%
Operating (loss) income $ (5,552) $ 1,305 $ (6,857) -525.4%



Freight Brokerage
Key Employee Data
Three Months Ended
March 30, 2012     June 30, 2012     Sept 30, 2012     Dec 31, 2012
Number of sales and procurement personnel 40 92     290 594

Note: Totals are as of period end, and include the positions of shipper sales, carrier procurement and logistics coordinators, and reflect the impact of recruitment and acquisitions.



Expedited Transportation
Summary Financial Table
(in thousands)
Three Months Ended December 31,
2012     2011     $ Variance       Change %
Revenue
 Operating revenue $ 22,102     $ 20,337 $ 1,765 8.7%
Direct expense
 Transportation services 17,381 15,379 2,002 13.0%
 Other direct expense 1,065 713 352 49.4%
Total direct expense 18,446 16,092 2,354 14.6%
    Gross margin 3,656 4,245 (589) -13.9%
SG&A expense
 Salaries & benefits 1,673 1,645 28 1.7%
 Purchased services 308 360 (52) -14.4%
 Other SG&A expense 608 323 285 88.2%
 Depreciation & amortization 79 86 (7) -8.1%
Total SG&A expense 2,668 2,414 254 10.5%
Operating income $ 988 $ 1,831 $ (843) -46.0%
Year Ended December 31,
2012     2011     $ Variance       Change %
Revenue
 Operating revenue $ 94,008 $ 87,558 $ 6,450 7.4%
Direct expense
 Transportation services 73,376 66,267 7,109 10.7%
 Other direct expense 3,738 2,998 740 24.7%
Total direct expense 77,114 69,265 7,849 11.3%
    Gross margin 16,894 18,293 (1,399) -7.6%
SG&A expense
 Salaries & benefits 6,613 6,854 (241) -3.5%
 Purchased services 1,015 1,426 (411) -28.8%
 Other SG&A expense 2,121 1,411 710 50.3%
 Depreciation & amortization 320 403 (83) -20.6%
Total SG&A expense 10,069 10,094 (25) -0.2%
Operating income $ 6,825 $ 8,199 $ (1,374) -16.8%


Note: Total depreciation and amortization for the Expedited Transportation operating segment included in both direct expense and SG&A, was $130,000 and $131,000 for the three-months ended December 31, 2012 and 2011, respectively, and $524,000 and $596,000 for the years ended December 31, 2012 and 2011, respectively, ended December 31, 2012 and 2011.



Freight Forwarding
Summary Financial Table
(in thousands)
Three Months Ended December 31,
2012     2011     $ Variance       Change %
Revenue
 Operating revenue $ 18,463 $ 16,769 $ 1,694 10.1%
Direct expense
 Transportation services 13,804 12,479 1,325 10.6%
 Station commissions 2,120 2,711 (591) -21.8%
 Other direct expense 54 42 12 28.6%
Total direct expense 15,978 15,232 746 4.9%
   Gross margin 2,485 1,537 948 61.7%
SG&A expense
 Salaries & benefits 1,280 774 506 65.4%
 Purchased services 203 122 81 66.4%
 Other SG&A expense 407 461 (54) -11.7%
 Depreciation & amortization 141 145 (4) -2.8%
Total SG&A expense 2,031 1,502 529 35.2%
Operating income $ 454 $ 35 $ 419 1197.1%
Year Ended December 31,
2012 2011 $ Variance       Change %
Revenue
 Operating revenue $ 67,692 $ 65,148 $ 2,544 3.9%
Direct expense
 Transportation services 50,381 47,122 3,259 6.9%
 Station commissions 9,321 11,098 (1,777) -16.0%
 Other direct expense 182 140 42 30.0%
Total direct expense 59,884 58,360 1,524 2.6%
   Gross margin 7,808 6,788 1,020 15.0%
SG&A expense
 Salaries & benefits 4,050 2,897 1,153 39.8%
 Purchased services 597 432 165 38.2%
 Other SG&A expense 1,479 1,339 140 10.5%
 Depreciation & amortization 574 575 (1) -0.2%
Total SG&A expense 6,700 5,243 1,457 27.8%
Operating income $ 1,108 $ 1,545 $ (437) -28.3%




XPO Corporate
Summary of Selling, General & Administrative Expense
(in thousands)
Three Months Ended December 31,
2012 2011 $ Variance       Change %
SG&A expense                
 Salaries & benefits $ 3,780 $ 3,207 $ 573 17.9%
 Purchased services 4,422 1,304 3,118 239.1%
 Other SG&A expense 1,691 232 1,459 628.9%
 Depreciation &
amortization
168 8 160 2000.0%
Total SG&A expense $ 10,061 $ 4,751 $ 5,310 111.8%
Year Ended December 31,
2012 2011 $ Variance       Change %
SG&A expense
 Salaries & benefits $ 13,445 $ 4,103 $ 9,342 227.7%
 Purchased services 12,082 4,727 7,355 155.6%
 Other SG&A expense 4,425 471 3,954 839.5%
 Depreciation &
amortization
391 24 367 1529.2%
Total SG&A expense $ 30,343 $ 9,325 $ 21,018 225.4%

Note: Intercompany eliminations included revenue of $3.2 million and $1.3 million for the three-months ended December 31, 2012 and 2011, respectively, as well as revenue of $8.2 million and $4.8 million for the years ended December 31, 2012 and 2011, respectively.


Reconciliation of Non-GAAP Measures
XPO Logistics, Inc.
Consolidated Reconciliation of EBITDA to Net Income
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
2012 2011    Change % 2012 2011    Change %
Net (loss) income available to common shareholders $ (10,062)     $ (2,212)     354.9%     $ (23,332)     $ (44,577)     -47.7%
Dividends and preferred shares conversion charge (743) (750) -0.9% (2,993) (45,336) -93.4%
Net (loss) income (9,319) (1,462) 537.41% (20,339) 759 -2779.7%
Interest expense 3,177 46 6806.5% 3,207 191 1579.1%
Income tax provision (4,994) (967) 416.4% (11,195) 718 -1659.2%
Depreciation and amortization 1,198 251 377.3% 2,508 1,046 139.8%
EBITDA $ (9,938) $ (2,132) 366.1% $ (25,819) $ 2,714 -1051.3%

Note: Please refer to the "Non-GAAP Financial Measures" section of the press release.



XPO Logistics, Inc.
Consolidated Calculation of Diluted Weighted Shares Outstanding
Three Months Ended Year Ended Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
Basic common stock outstanding 17,701,679 8,252,891 15,694,430 8,246,577
Potentially Dilutive Securities:
Shares underlying the conversion 10,522,399 10,714,286 10,695,326 3,522,505
 of preferred stock to common stock
Shares underlying the conversion 8,575,577 0 2,238,758 0
 of the convertible senior notes
Shares underlying  warrants to 5,548,022 3,568,707 5,717,284 3,618,061
 purchase common stock
Shares underlying  stock options 447,545 402,819 473,421 298,017
 to purchase common stock
Shares underlying  restricted stock units 237,453 682 249,139 6,456
25,330,996 14,686,492 19,373,928 7,445,039
Diluted weighted shares outstanding 43,032,674 22,939,383 35,068,358 15,691,616

Note: For dilution purposes, GAAP requires diluted shares to be reflected on a weighted average basis, which takes into account the portion of the period in which the diluted shares were outstanding. The table above reflects the weighted average diluted shares for the periods presented. The impact of this dilution was not reflected in the earnings per share calculations on the Consolidated Statements of Operations because the impact was anti-dilutive. The treasury method was used to determine the shares underlying the warrants to purchase common stock with an average closing market price of common stock of $14.52 per share and $10.50 per share for the three months ended December 31, 2012 and 2011, respectively, and $15.01 per share and $10.57 per share for the years ended December 31, 2012 and 2011, respectively.

XPO Logistics Schedules Fourth Quarter 2012 Results Conference Call for Thursday, February 28, 2013

GREENWICH, Conn. - January 22, 2013 - XPO Logistics, Inc. (NYSE: XPO) will hold its fourth quarter conference call and webcast on Thursday, February 28, 2013, at 8:30 a.m. Eastern Time. The company's results will be released after market close on February 27 and made available on www.xpologistics.com.

Access information:
Call toll-free from US/Canada: 1-800-446-1671
International callers: +1-847-413-3362
Live webcast online at: www.xpologistics.com

A replay of the conference will be available until March 30, 2013, by calling toll-free (from US/Canada) 1-888-843-7419; international callers dial +1-630-652-3042. Use passcode 34113016. Additionally, the call will be archived on www.xpologistics.com.

About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providers of non-asset based, third-party freight transportation services in North America. The company uses its relationships with more than 20,000 ground, sea and air carriers to find the best transportation solutions for its customers. XPO Logistics offers its services through three distinct business units: freight brokerage; expedited transportation (Express-1, Inc.); and freight forwarding (Concert Group Logistics, Inc.). The company serves more than 7,500 customers in the retail, commercial, manufacturing and industrial sectors through 56 locations, including 33 branches in the United States and Canada and 23 agent offices. www.xpologistics.com

Investor Contact:
XPO Logistics, Inc.
Michelle Muniz, +1-203-930-1459
michelle.muniz@xpologistics.com

Media Contact:
Brunswick Group
Steve Lipin / Gemma Hart, +1-212-333-3810


HUG#1672313
Stock Quote (XPO)
ExchangeNYSE (US Dollar)
Price$44.15
Change (%) Stock is Up 0.22 (0.50%)
Volume490,073
Data as of 02/27/15 4:06 p.m. ET
Minimum 20 minute delay
Refresh quote
Featured Links