RXO said in its earnings release for the fourth quarter that integration of Coyote Logistics was ahead of schedule. It now expects to realize “at least” $50 million in synergies. In its third-quarter earnings, RXO had said it expected synergies of $40 million.
The earnings release focused on various growth areas, not surprising given that financial and several operating results were weak. Clear sequential and year-to-year comparisons are difficult to generate, because the fourth-quarter numbers include revenue from Coyote.
The combined legacy RXO brokerage business and Coyote grew sequential volumes by 10% in the quarter. But combined volume was down 6% year over year. LTL volume was up by 1%. But full truckload volume was down 8%.
The Managed Transportation division has a sales pipeline of close to $2 billion in freight under management. Last Mile stops were up by 15% year on year.
Adjusted EBITDA was $42 million in the quarter, up from $31 million a year ago. But that’s not going to repeat: The company said it expected first-quarter EBITDA to be between $20 million and $30 million.
The bottom line was down from a year ago, posting a loss of 12 cents per share compared to 2 cents per share a year ago. Third-quarter net income was a loss of $1.81, but that was heavily impacted by various restructuring costs including those related to the Coyote acquisition. The fourth-quarter figure also was hit by restructuring costs of $34 million, but it was $248 million in the third quarter. Adjusted net income for the quarter was $10 million, compared to $7 million a year ago and in the third quarter sequentially.
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