CHICAGO, July 28, 2021 /PRNewswire/ -- Echo Global
Logistics, Inc. (NASDAQ: ECHO), a leading provider of
technology-enabled transportation management services, today
reported financial results for the quarter ended June 30,
2021.
"Echo's record setting second quarter results reflect strong
execution across our uniquely flexible business model and its
ability to create significant value for our customers in the robust
yet constrained freight environment. Our combination of technology
and people helped deliver numerous quarterly revenue and
profitability records and improved metrics across the business,"
said Doug Waggoner, Chairman of the
Board of Directors and Chief Executive Officer at Echo. Mr.
Waggoner continued, "Looking ahead we will continue to leverage our
investments in technology and drive strong execution to further
capture both size and scale through the second half of the
year."
Second Quarter 2021 Highlights
- Revenue increased 81.6% to $934.5
million from the second quarter of 2020
- Gross profit increased 59.1% to $132.2
million from the second quarter of 2020
- Adjusted gross profit(1) increased 54.5% to
$136.1 million from the second
quarter of 2020
- Truckload ("TL") revenue increased 95.1% to $687.0 million from the second quarter of 2020,
and TL volume increased 26.6% from the second quarter of 2020
- Less than truckload ("LTL") revenue increased 53.7% to
$217.6 million from the second
quarter of 2020, and LTL volume increased 27.4% from the second
quarter of 2020
- Transactional revenue increased 80.7% to $716.9 million and Managed Transportation revenue
increased 84.6% to $217.7 million
from the second quarter of 2020
- Net income increased to $18.4
million, compared to $1.0
million in the second quarter of 2020
- Fully diluted earnings per share ("EPS") increased to
$0.69 in the second quarter of 2021;
non-GAAP fully diluted EPS(1) increased to $0.84 in the second quarter of 2021
- Adjusted EBITDA(1) grew 144.5% to $36.2 million, compared to $14.8 million in the second quarter of 2020
|
|
|
(1) Represents a non-GAAP financial measure. For the
definition and a discussion of each non-GAAP financial measure
contained in this release, see "Non-GAAP Financial Measures." For a
reconciliation of each non-GAAP financial measure to the nearest
comparable GAAP financial measure, see the "Reconciliation of
Non-GAAP Financial Measures" section of this
release.
|
2021 Third Quarter and Full Year Guidance
Pete Rogers, Chief Financial
Officer at Echo, concluded, "We remain very encouraged by our
record results thus far this year, as they demonstrate the value we
are creating for both our shippers and carrier partners. In turn,
this is driving our ability to continue winning new business and
capture market share. Given the strong start to the first half of
the year and solid market fundamentals, we are expecting revenue
for the third quarter to be between $910M and $940M,
representing 34% year over year growth at the midpoint. In
addition, we are raising our full year revenue guidance to be
between $3.45B – $3.55B, representing 39% year over year growth
and an 8% increase from our most recent guidance."
Conference Call
A conference call, with accompanying presentation slides, will
be broadcast live on July 28, 2021 at 4:00 p.m.
Central Time (5:00 p.m. Eastern
Time). Doug Waggoner, Chairman of the Board of
Directors and Chief Executive Officer; Dave Menzel, President
and Chief Operating Officer; and Pete Rogers, Chief Financial
Officer, will host the call. To participate in the call,
dial 877-303-6235 (toll free)
or 631-291-4837 (toll) and reference "Echo Global
Logistics." To listen to a live webcast of the call, visit the Echo
website at http://ir.echo.com. A replay of the webcast will be
available for one year following the live webcast in the Investor
Relations section of the Echo website. To listen to an audio
replay, call 855-859-2056 (toll free) or 404-537-3406 (toll) and
enter conference ID 7568389. The audio replay will be available
through August 4, 2021.
Non-GAAP Financial Measures
This release includes the following financial measures defined
as "Non-GAAP financial measures" by the Securities and
Exchange Commission (the "SEC"): Adjusted gross profit,
adjusted gross profit margin, EBITDA, Adjusted EBITDA and Non-GAAP
fully diluted EPS. Adjusted gross profit is calculated as gross
profit adjusted to exclude internal use software depreciation. It
also represents revenue minus transportation costs. Adjusted gross
profit margin is calculated as adjusted gross profit (as previously
defined) divided by revenue. EBITDA is defined as net income
excluding the effects of depreciation, amortization, cash and
non-cash interest expense and income taxes. Adjusted EBITDA is
defined as EBITDA (as previously defined) excluding the changes in
contingent consideration and stock compensation expense. Non-GAAP
fully diluted EPS is defined as fully diluted EPS excluding changes
in contingent consideration, amortization, non-cash interest
expense, stock compensation expense and the tax effect of these
adjustments. We believe such measures provide useful information to
investors because they provide information about the financial
performance of the Company's ongoing business.
Adjusted gross profit, adjusted gross profit margin, EBITDA,
Adjusted EBITDA and Non-GAAP fully diluted EPS are used by
management in its financial and operational decision-making and
evaluation of overall operating performance. These measures may be
different from similar measures used by other companies. The
presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
generally accepted accounting principles. For a reconciliation of
each non-GAAP financial measure to the nearest comparable GAAP
financial measure, see "Reconciliation of Non-GAAP Financial
Measures" included in this release.
Forward-Looking Statements
All statements made in this release, other than statements of
historical fact, are or may be deemed to be forward-looking
statements. These statements are forward-looking statements under
the federal securities laws. We can give no assurance that any
future results discussed in these statements will be achieved.
These statements are based on current plans and expectations of
Echo Global Logistics and involve risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be different from any future results, performance
or achievements expressed or implied by these statements.
Information concerning these risks, uncertainties and other factors
is contained under the headings "Risk Factors" and "Forward-Looking
Statements" and elsewhere in our Annual Report on Form 10-K for the
year ended December 31, 2020, and
other filings with the SEC.
About Echo Global Logistics
Echo Global Logistics, Inc. (NASDAQ: ECHO) is a leading
Fortune 1000 provider of technology-enabled transportation and
supply chain management services. Headquartered in Chicago with more than 30 offices around the
country, Echo offers freight brokerage and Managed Transportation
solutions for all major modes, including truckload, partial
truckload, LTL, intermodal, and expedited. Echo maintains a
proprietary, web-based technology platform that compiles and
analyzes data from its network of over 50,000 transportation
providers to serve 35,000 clients across a wide range of industries
and simplify the critical tasks involved in transportation
management. For more information on Echo Global Logistics,
visit: www.echo.com.
ECHO: Earnings
INVESTOR RELATIONS CONTACTS:
Pete Rogers
Chief Financial Officer
Echo Global Logistics
312-676-4584
Zach Jecklin
SVP of Strategy
Echo Global Logistics
312-784-2046
MEDIA CONTACT:
Christopher Clemmensen
SVP of Marketing
Echo Global Logistics
312-784-2132
Summarized financial results and select operating metrics are as
follows:
|
|
|
Three Months Ended
June 30,
|
|
Dollars in
millions, except per share data
|
|
|
2021
|
|
2020
|
|
%
change
|
|
|
|
(unaudited)
|
|
|
|
Transactional
revenue
|
|
|
$
|
716.9
|
|
|
$
|
396.8
|
|
|
80.7
|
%
|
|
Managed
Transportation revenue
|
|
|
217.7
|
|
|
117.9
|
|
|
84.6
|
%
|
|
Revenue
|
|
|
934.5
|
|
|
514.7
|
|
|
81.6
|
%
|
|
|
|
|
|
|
|
|
|
Transportation
costs
(excludes internal
use software depreciation)(1)
|
|
|
798.5
|
|
|
426.7
|
|
|
87.1
|
%
|
|
|
|
|
|
|
|
|
|
Commission
expense
|
|
|
40.8
|
|
|
26.6
|
|
|
53.4
|
%
|
|
Change in contingent
consideration
|
|
|
0.5
|
|
|
(0.1)
|
|
|
801.9
|
%
|
|
Stock compensation
expense
|
|
|
2.3
|
|
|
2.3
|
|
|
0.9
|
%
|
|
Other selling,
general and administrative
|
|
|
59.0
|
|
|
46.6
|
|
|
26.6
|
%
|
|
Selling, general
and administrative expenses
|
|
|
102.7
|
|
|
75.5
|
|
|
36.1
|
%
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
6.1
|
|
|
7.0
|
|
|
(13.2)
|
%
|
|
Amortization
|
|
|
2.6
|
|
|
2.8
|
|
|
(6.5)
|
%
|
|
Depreciation and
amortization
|
|
|
8.7
|
|
|
9.8
|
|
|
(11.3)
|
%
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
24.6
|
|
|
2.8
|
|
|
792.4
|
%
|
|
|
|
|
|
|
|
|
|
Cash interest
expense
|
|
|
0.7
|
|
|
1.2
|
|
|
(39.2)
|
%
|
|
Non-cash interest
expense
|
|
|
—
|
|
|
0.2
|
|
|
(100.0)
|
%
|
|
Interest
expense
|
|
|
0.7
|
|
|
1.4
|
|
|
(48.8)
|
%
|
|
Income before
provision for income taxes
|
|
|
23.9
|
|
|
1.4
|
|
|
1,655.2
|
%
|
|
Income tax
expense
|
|
|
(5.6)
|
|
|
(0.4)
|
|
|
1,249.7
|
%
|
|
Net
income
|
|
|
$
|
18.4
|
|
|
$
|
1.0
|
|
|
1,830.6
|
%
|
|
|
|
|
|
|
|
|
|
Fully diluted
EPS
|
|
|
$
|
0.69
|
|
|
$
|
0.04
|
|
|
1,797.5
|
%
|
|
Diluted
shares
|
|
|
26.7
|
|
|
26.2
|
|
|
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
|
|
(1) Transportation costs
excludes internal use software depreciation of $3.9 million and
$5.0 million for three months ended June 30, 2021 and
2020, respectively. Internal use software depreciation is included
in depreciation expense.
|
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
Three Months Ended
June 30,
|
|
|
Dollars in
millions, except per share data
|
|
|
2021
|
|
2020
|
|
%
change
|
|
|
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
$
|
934.5
|
|
|
$
|
514.7
|
|
|
81.6
|
%
|
|
|
Transportation
costs
|
|
|
798.5
|
|
|
426.7
|
|
|
87.1
|
%
|
|
|
Internal use software
depreciation
|
|
|
3.9
|
|
|
5.0
|
|
|
(21.5)
|
%
|
|
|
Gross
profit
|
|
|
$
|
132.2
|
|
|
$
|
83.1
|
|
|
59.1
|
%
|
|
|
Add: Internal use software
depreciation
|
|
|
3.9
|
|
|
5.0
|
|
|
(21.5)
|
%
|
|
|
Adjusted gross
profit(1)
|
|
|
$
|
136.1
|
|
|
$
|
88.0
|
|
|
54.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
|
18.4
|
|
|
$
|
1.0
|
|
|
1,830.6
|
%
|
|
|
Depreciation
|
|
|
6.1
|
|
|
7.0
|
|
|
(13.2)
|
%
|
|
|
Amortization
|
|
|
2.6
|
|
|
2.8
|
|
|
(6.5)
|
%
|
|
|
Non-cash interest
expense
|
|
|
—
|
|
|
0.2
|
|
|
(100.0)
|
%
|
|
|
Cash interest
expense
|
|
|
0.7
|
|
|
1.2
|
|
|
(39.2)
|
%
|
|
|
Income tax
expense
|
|
|
5.6
|
|
|
0.4
|
|
|
1,249.7
|
%
|
|
|
EBITDA(1)
|
|
|
$
|
33.3
|
|
|
$
|
12.6
|
|
|
165.3
|
%
|
|
|
Change in contingent
consideration
|
|
|
0.5
|
|
|
(0.1)
|
|
|
801.9
|
%
|
|
|
Stock compensation
expense
|
|
|
2.3
|
|
|
2.3
|
|
|
0.9
|
%
|
|
|
Adjusted
EBITDA(1)
|
|
|
$
|
36.2
|
|
|
$
|
14.8
|
|
|
144.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Fully diluted
EPS
|
|
|
$
|
0.69
|
|
|
$
|
0.04
|
|
|
1,797.5
|
%
|
|
|
Change in contingent
consideration
|
|
|
0.02
|
|
|
(0.00)
|
|
|
(789.9)
|
%
|
|
|
Amortization
|
|
|
0.10
|
|
|
0.11
|
|
|
(8.1)
|
%
|
|
|
Non-cash interest
expense
|
|
|
—
|
|
|
0.01
|
|
|
(100.0)
|
%
|
|
|
Stock compensation
expense
|
|
|
0.09
|
|
|
0.09
|
|
|
(0.8)
|
%
|
|
|
Tax effect of
adjustments
|
|
|
(0.05)
|
|
|
(0.05)
|
|
|
0.6
|
%
|
|
|
Non-GAAP fully
diluted EPS(1)
|
|
|
$
|
0.84
|
|
|
$
|
0.19
|
|
|
355.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Metrics
|
|
|
|
|
|
|
|
|
|
Gross profit
margin
|
|
|
14.1
|
%
|
|
16.1
|
%
|
|
(200)
|
|
bps
|
|
Adjusted gross profit
margin(1)
|
|
|
14.6
|
%
|
|
17.1
|
%
|
|
(255)
|
|
bps
|
|
Total
employees
|
|
|
2,736
|
|
|
2,450
|
|
|
11.7
|
%
|
|
|
Sales employees and
agents
|
|
|
1,753
|
|
|
1,586
|
|
|
10.5
|
%
|
|
|
TL revenue
%
|
|
|
73.5
|
%
|
|
68.4
|
%
|
|
508
|
|
bps
|
|
LTL revenue
%
|
|
|
23.3
|
%
|
|
27.5
|
%
|
|
(422)
|
|
bps
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
|
|
|
(1) See the "Non-GAAP
Financial Measures" section of this release for the definition and
a discussion of each Non-GAAP financial measure.
|
|
|
Echo Global
Logistics, Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
In thousands,
except per share data
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenue
|
|
|
$
|
934,524
|
|
|
$
|
514,719
|
|
|
$
|
1,735,326
|
|
|
$
|
1,065,768
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
(excludes internal use
software depreciation)(1)
|
|
|
798,474
|
|
|
426,674
|
|
|
1,479,247
|
|
|
887,815
|
|
|
Selling, general and
administrative expenses
|
|
|
102,714
|
|
|
75,481
|
|
|
199,596
|
|
|
155,135
|
|
|
Depreciation and
amortization
|
|
|
8,697
|
|
|
9,804
|
|
|
17,386
|
|
|
19,596
|
|
|
Income from
operations
|
|
|
24,639
|
|
|
2,761
|
|
|
39,098
|
|
|
3,222
|
|
|
Interest
expense
|
|
|
(716)
|
|
|
(1,398)
|
|
|
(1,433)
|
|
|
(4,186)
|
|
|
Income (Loss) before
provision for income taxes
|
|
|
23,923
|
|
|
1,363
|
|
|
37,665
|
|
|
(965)
|
|
|
Income tax
expense
|
|
|
(5,556)
|
|
|
(412)
|
|
|
(9,102)
|
|
|
(1,017)
|
|
|
Net income
(loss)
|
|
|
$
|
18,367
|
|
|
$
|
951
|
|
|
$
|
28,564
|
|
|
$
|
(1,981)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
$
|
0.70
|
|
|
$
|
0.04
|
|
|
$
|
1.09
|
|
|
$
|
(0.08)
|
|
|
Diluted earnings
(loss) per share
|
|
|
$
|
0.69
|
|
|
$
|
0.04
|
|
|
$
|
1.07
|
|
|
$
|
(0.08)
|
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
|
|
|
|
(1) Transportation costs
excludes internal use software depreciation of $3.9 million and
$5.0 million for three months ended June 30, 2021 and
2020, respectively; and $7.8 million and $9.7 million for six
months ended June 30, 2021 and 2020, respectively. Internal
use software
depreciation is included in depreciation
expense.
|
|
|
|
Echo Global
Logistics, Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
|
In
thousands
|
|
|
(unaudited)
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
63,926
|
|
|
$
|
41,297
|
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
546,197
|
|
|
439,391
|
|
|
Other current
assets
|
|
|
13,033
|
|
|
12,787
|
|
|
Total noncurrent
assets
|
|
|
466,580
|
|
|
470,469
|
|
|
Total
assets
|
|
|
$
|
1,089,736
|
|
|
$
|
963,944
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
417,308
|
|
|
$
|
317,692
|
|
|
Other current
liabilities
|
|
|
68,047
|
|
|
59,443
|
|
|
Long-term debt,
net
|
|
|
119,171
|
|
|
133,945
|
|
|
Other noncurrent
liabilities
|
|
|
52,876
|
|
|
53,494
|
|
|
Stockholders'
equity
|
|
|
432,334
|
|
|
399,369
|
|
|
Total liabilities and
stockholders' equity
|
|
|
$
|
1,089,736
|
|
|
$
|
963,944
|
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
Echo Global
Logistics, Inc.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
In
thousands
|
|
|
|
|
|
|
|
(unaudited)
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
|
|
$
|
54,336
|
|
|
$
|
35,760
|
|
|
Net cash used in
investing activities
|
|
|
|
|
|
|
|
(13,724)
|
|
|
(10,184)
|
|
|
Net cash used in
financing activities
|
|
|
|
|
|
|
|
(17,984)
|
|
|
(24,763)
|
|
|
Increase in cash and
cash equivalents
|
|
|
|
|
|
|
|
22,628
|
|
|
813
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
|
|
|
|
|
41,297
|
|
|
34,626
|
|
|
Cash and cash
equivalents, end of period
|
|
|
|
|
|
|
|
$
|
63,926
|
|
|
$
|
35,438
|
|
|
Note: Amounts may not
foot due to rounding.
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/echo-global-logistics-reports-record-second-quarter-2021-results-301343569.html
SOURCE Echo Global Logistics, Inc.
