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.
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.
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.