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Daseke’s earnings ahead of analysts’ forecasts; no updated guidance

Photo: Daseke, Inc.

Daseke, Inc. (NASDAQ: DSKE), the largest flatbed, specialized transportation and logistics solutions company in North America, reported first quarter 2019 adjusted net income of $1.8 million in the period, $3.8 million lower year-over-year, or $0.03 per share, compared to the consensus estimate of ($0.09) per share.

Revenue increased 32 percent year-over-year to $433 million, up 7 percent on an adjusted acquisition basis. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $43.8 million, a 24 percent increase. Acquisition adjusted EBITDA was 5 percent higher in the period.

“We experienced strong organic growth in our specialized segment, led by our wind business and large construction project-related work. Like the rest of our peers in our Flatbed segment, we experienced headwinds from severe weather conditions and lower demand. Given our strong results, I am confident in our ability to continue to generate significant free cash flow for the remainder of 2019, which we expect to use to de-lever our balance sheet, better positioning us to capitalize on our long-term growth opportunities,” said Daseke’s chairman and Chief Executive Officer Don Daseke.

DSKE – Key Performance Indicators – Specialized Solutions

Specialized Solutions revenue increased 46 percent year-over-year to $269.7 million. Revenue per tractor increased 13 percent to $60,000, while rate per mile increased 35 percent to $3.61. Adjusted operating ratio (OR) was 93.8 percent for the division, a 60 basis point improvement year-over-year.

DSKE – Key Performance Indicators – Flatbed

Flatbed Solutions revenue increased 16 percent year-over-year to $167.9 million as revenue per tractor increased 3 percent to $41,600, while rate per mile increased 8 percent to $1.96. Adjusted OR was 96.7 percent for the division, 210 basis points worse year-over-year.

The company didn’t provide an update to its full-year outlook, which is typically provided in the earnings release.

DSKE will hold a call to discuss these results with analysts and media at 11:00 a.m. EDT.

DSKE Stock Price Chart – SONAR

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.