CEO says company is improving internal controls, strengthening core operating functions.
Downers Grove, Ill.-based Roadrunner Transportation Systems Inc. posted a net loss of $23.6 million for the first quarter of 2018, deeper than the $19.9 million net loss it recorded for last year’s first quarter.
The bigger loss primarily was fueled by higher interest costs related to the Roadrunner’s preferred stock issued in May 2017, the transportation and logistics company said.
However, revenues for the first quarter shot up 19 percent year-over-year to $570 million. The increase was driven by higher revenues in the company’s truckload and express services (TES) and less-than-truckload segments, which were partially offset by lower revenues in the Ascent segment.
The TES segment posted revenues of $326.1 million, up 43.3 percent year-over-year, while operating income was $4.4 million, compared to an operating loss of $1.7 million a year prior.
The LTL segment recorded revenues of $113.1 million for the quarter, up 4 percent year-over-year, and an operating loss of $8.7 million, compared to an operating loss of $2.7 million last year.
Meanwhile, Ascent revenues totaled $134.9 million for the quarter, down 7.3 percent year-over-year due to the divestiture of Unitrans, while operating income fell 12.1 percent to $6.7 million.
Roadrunner said it currently has about $40 million of available funds for working capital and operating purposes from its existing borrowing capacity under its ABL facility and standby commitment from its preferred stock investor.
The U.S. Department of Justice announced last month it had charged two former Roadrunner executives for their alleged participation in an accounting and securities fraud scheme that resulted in a loss of more than $245 million in shareholder value. Indicted were Mark R. Wogsland, the former controller for Roadrunner’s truckload operating segment, and Bret S. Naggs, the former controller and director of accounting for the truckload division.
Roadrunner announced in January 2017 that it had uncovered financial errors, which dated back to 2014, and in early 2018, the company issued restated financial results for 2014 though the third quarter of 2016.
Looking ahead, Roadrunner CEO Curt Stoelting said in a release Monday, “As our recent activities indicate, our teams continue to execute on our plans to more fully integrate, expand and improve our TES and Ascent segments and we remain committed to investing in the long-term recovery of our LTL segment.
“We are also investing in information technology enhancements and new capabilities across all three segments, improving our internal controls and strengthening our core operating functions, all of which are designed to support our growth in 2018 and beyond,” Stoelting added. “We expect improved operating and financial results throughout 2018 and a steady expansion of operating margins in future years.”
Roadrunner Q1 loss deepens
