Roadrunner Announces Plans to Downsize its Dry Van Business
30 Setembro 2019 - 5:15PM
Business Wire
Roadrunner Transportation Systems, Inc. (“Roadrunner” or the
“company”) (NYSE: RRTS), a leading asset-right transportation and
asset-light logistics service provider, today announced it will
downsize its unprofitable dry van business, which is part of the
company’s Truckload segment.
The downsizing includes reducing dry van company tractor and
trailer fleets by over 50%, closing five terminal locations and
eliminating approximately 450 positions. Employees subject to the
workforce reduction will receive either severance or a 60-day
notice. In conjunction with the downsizing activities, the company
expects to incur one-time pretax operations restructuring costs of
between $12 million and $16 million, excluding the gain or loss on
the sale of equipment and the write-down of assets.
The downsizing activities are expected to reduce lease
obligations and debt and be substantially complete by year-end
2019, with workforce reductions effective over the next 60 to 90
days. The reduction in force represents approximately 10% of the
company’s total workforce.
“The decision to downsize the dry van business is a significant
step in executing our strategy to emphasize our value-added
logistics and asset-light LTL segments and increase our returns on
invested capital. We factored in the impact of this downsizing as
part of the strategic review of our Truckload segment. We believe
downsizing the dry van business will improve operating margins and
cash flow, reduce lease obligations and debt, improve internal
controls and allow greater focus on the significant value-creation
opportunities within our other businesses,” said Curt Stoelting,
Chief Executive Officer of Roadrunner.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right
transportation and asset-light logistics provider offering a full
suite of services and solutions under the Roadrunner®, Active
On-Demand® and Ascent Global Logistics® brands. The Roadrunner
brand offers less-than-truckload, over-the-road truckload and
intermodal services. Active On-Demand offers premium mission
critical air and ground logistics solutions. Ascent Global
Logistics offers domestic freight management, retail consolidation,
international freight forwarding and customs brokerage. For more
information, please visit Roadrunner’s websites, www.rrts.com and
www.ascentgl.com.
Safe Harbor Statement
This press release contains 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, which relate to future events or performance.
Forward-looking statements include, among others, statements
regarding Roadrunner’s plan to downsize its dry van business,
including reducing dry van company tractor and trailer fleets by
over 50%, closing five terminal locations, and eliminating
approximately 450 positions; Roadrunner’s plan with respect to the
employees subject to the workforce reduction; Roadrunner’s expected
one-time pretax operations restructuring costs; Roadrunner’s
expectation that the downsizing activities will reduce lease
obligations and debt and be substantially complete by year-end
2019, with workforce reductions over the next 60 to 90 days;
Roadrunner’s strategy to emphasize its value-added logistics and
asset-light LTL segments and increase its returns on invested
capital; and Roadrunner’s belief that the downsizing will improve
operating margins and cash flow, reduce lease obligations and debt,
improve internal controls and allow greater focus on the
significant value-creation opportunities within its other
businesses. These statements are often, but not always, made
through the use of words or phrases such as “may,” “will,”
“anticipate,” “estimate,” “plan,” “project,” “continuing,”
“ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,”
“opportunity,” and similar words or phrases or the negatives of
these words or phrases. These forward-looking statements are based
on Roadrunner’s current assumptions, expectations and beliefs and
are subject to substantial risks, estimates, assumptions,
uncertainties and changes in circumstances that may cause
Roadrunner’s actual results, performance or achievements to differ
materially from those expressed or implied in any forward-looking
statement. Such factors include, among others, risks related to the
restatement of Roadrunner’s previously issued financial statements,
the remediation of Roadrunner’s identified material weaknesses in
its internal control over financial reporting, the litigation
resulting from the restatement of Roadrunner’s previously issued
financial statements and the other risk factors contained in
Roadrunner’s SEC filings, including Roadrunner’s Annual Report on
Form 10-K for the year ended December 31, 2018. Because the risks,
estimates, assumptions and uncertainties referred to above could
cause actual results or outcomes to differ materially from those
expressed in any forward-looking statements, you should not place
undue reliance on any forward-looking statements. Any
forward-looking statement speaks only as of the date hereof, and,
except as required by law, Roadrunner assumes no obligation and
does not intend to update any forward-looking statement to reflect
events or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20190930005775/en/
Reputation Partners Marilyn Vollrath 414-376-8834
ir@rrts.com
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