Exhibit 99.1
(In thousands, except for %'s) | Three Months Ended June 30, 2017 | ||||||||||||||||||||||||
TES | % | LTL | % | Ascent | % | Corporate/ Eliminations | Total | ||||||||||||||||||
Revenues | $ | 262,797 | 49.5 | % | $ | 121,968 | 23.0 | % | $ | 148,088 | 27.9 | % | $ | (2,274 | ) | $ | 530,579 | ||||||||
Operating expenses: | |||||||||||||||||||||||||
Purchased transportation costs | 165,544 | 63.0 | % | 86,792 | 71.2 | % | 108,370 | 73.2 | % | (2,274 | ) | 358,432 | |||||||||||||
Personnel and related benefits | 38,029 | 14.5 | % | 17,922 | 14.7 | % | 15,635 | 10.6 | % | 4,086 | 75,672 | ||||||||||||||
Other operating expenses | 49,571 | 18.9 | % | 19,565 | 16.0 | % | 15,235 | 10.3 | % | 10,387 | 94,758 | ||||||||||||||
Depreciation and amortization | 6,197 | 2.4 | % | 953 | 0.8 | % | 1,631 | 1.1 | % | 429 | 9,210 | ||||||||||||||
Total operating expenses | 259,341 | 98.7 | % | 125,232 | 102.7 | % | 140,871 | 95.1 | % | 12,628 | 538,072 | ||||||||||||||
Operating income (loss) | 3,456 | 1.3 | % | (3,264 | ) | (2.7 | )% | 7,217 | 4.9 | % | (14,902 | ) | (7,493 | ) | |||||||||||
Total interest expense | 28,355 | ||||||||||||||||||||||||
Loss from debt extinguishment | 9,827 | ||||||||||||||||||||||||
Loss before income taxes | (45,675 | ) | |||||||||||||||||||||||
Benefit from income taxes | (7,812 | ) | |||||||||||||||||||||||
Net loss | $ | (37,863 | ) | ||||||||||||||||||||||
Total Assets | $ | 436,977 | $ | 92,292 | $ | 339,787 | $ | 75,371 | $ | 944,427 | |||||||||||||||
Capital expenditures | $ | 2,047 | $ | 387 | $ | 289 | $ | 625 | $ | 3,348 |
(In thousands) | Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||
TES | LTL | Ascent | Corporate/ Eliminations | Total | Less: Unitrans (2) | Total w/o Unitrans | |||||||||||||||||||||
Net (loss) income | $ | 3,475 | $ | (3,312 | ) | $ | 7,181 | $ | (45,207 | ) | $ | (37,863 | ) | 2,026 | $ | (39,889 | ) | ||||||||||
Plus: Total interest expense | (19 | ) | 48 | 36 | 28,290 | 28,355 | — | 28,355 | |||||||||||||||||||
Plus: Benefit from income taxes | — | — | — | (7,812 | ) | (7,812 | ) | — | (7,812 | ) | |||||||||||||||||
Plus: Depreciation and amortization | 6,197 | 953 | 1,631 | 429 | 9,210 | 295 | 8,915 | ||||||||||||||||||||
Plus: Long-term incentive compensation expenses | — | — | — | 659 | 659 | — | 659 | ||||||||||||||||||||
Plus: Loss on debt extinguishments | — | 9,827 | 9,827 | 9,827 | |||||||||||||||||||||||
Plus: Restructuring and restatement costs | — | — | — | 9,052 | 9,052 | — | 9,052 | ||||||||||||||||||||
Adjusted EBITDA(1) | $ | 9,653 | $ | (2,311 | ) | $ | 8,848 | $ | (4,762 | ) | $ | 11,428 | $ | 2,321 | $ | 9,107 |
(In thousands, except for %'s) | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||
TES | % | LTL | % | Ascent | % | Corporate/ Eliminations | Total | ||||||||||||||||||
Revenues | $ | 260,536 | 50.0 | % | $ | 117,618 | 22.6 | % | $ | 145,296 | 27.9 | % | $ | (2,017 | ) | $ | 521,433 | ||||||||
Operating expenses: | |||||||||||||||||||||||||
Purchased transportation costs | 169,103 | 64.9 | % | 84,249 | 71.6 | % | 107,156 | 73.8 | % | (2,028 | ) | 358,480 | |||||||||||||
Personnel and related benefits | 37,279 | 14.3 | % | 17,597 | 15.0 | % | 14,832 | 10.2 | % | 3,555 | 73,263 | ||||||||||||||
Other operating expenses | 49,405 | 19.0 | % | 23,017 | 19.6 | % | 15,904 | 10.9 | % | 11,797 | 100,123 | ||||||||||||||
Depreciation and amortization | 6,484 | 2.5 | % | 924 | 0.8 | % | 1,471 | 1.0 | % | 440 | 9,319 | ||||||||||||||
Gain from sale of Unitrans | — | — | % | — | — | % | — | — | % | (35,440 | ) | (35,440 | ) | ||||||||||||
Impairment charges | — | — | % | — | — | % | 4,402 | 3.0 | % | — | 4,402 | ||||||||||||||
Total operating expenses | 262,271 | 100.7 | % | 125,787 | 106.9 | % | 143,765 | 98.9 | % | (21,676 | ) | 510,147 | |||||||||||||
Operating income (loss) | (1,735 | ) | (0.7 | )% | (8,169 | ) | (6.9 | )% | 1,531 | 1.1 | % | 19,659 | 11,286 | ||||||||||||
Total interest expense | 10,502 | ||||||||||||||||||||||||
Loss from debt extinguishment | 6,049 | ||||||||||||||||||||||||
Loss before income taxes | (5,265 | ) | |||||||||||||||||||||||
Benefit from income taxes | 4,788 | ||||||||||||||||||||||||
Net loss | $ | (10,053 | ) | ||||||||||||||||||||||
Total Assets | $ | 434,914 | $ | 67,827 | $ | 261,325 | $ | 98,445 | $ | 862,511 | |||||||||||||||
Capital expenditures | $ | 1,924 | $ | 270 | $ | 550 | $ | 1,190 | $ | 3,934 |
(In thousands) | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||
TES | LTL | Ascent | Corporate/ Eliminations | Total | Less: Unitrans (2) | Total w/o Unitrans | |||||||||||||||||||||
Net (loss) income | $ | (1,720 | ) | $ | (8,206 | ) | $ | 1,496 | $ | (1,623 | ) | $ | (10,053 | ) | 1,339 | $ | (11,392 | ) | |||||||||
Plus: Total interest expense | (15 | ) | 37 | 35 | 10,445 | 10,502 | — | 10,502 | |||||||||||||||||||
Plus: Benefit from income taxes | — | — | — | 4,788 | 4,788 | — | 4,788 | ||||||||||||||||||||
Plus: Depreciation and amortization | 6,484 | 924 | 1,471 | 440 | 9,319 | 230 | 9,089 | ||||||||||||||||||||
Plus: Impairment charges | 4,402 | 4,402 | 4,402 | ||||||||||||||||||||||||
Plus: Long-term incentive compensation expenses | — | — | — | 541 | 541 | — | 541 | ||||||||||||||||||||
Plus: Gain on sale of Unitrans | (35,440 | ) | (35,440 | ) | (35,440 | ) | |||||||||||||||||||||
Plus: Loss on debt extinguishments | — | 6,049 | 6,049 | 6,049 | |||||||||||||||||||||||
Plus: Restructuring and restatement costs | — | — | — | 6,841 | 6,841 | — | 6,841 | ||||||||||||||||||||
Adjusted EBITDA(1) | $ | 4,749 | $ | (7,245 | ) | $ | 7,404 | $ | (7,959 | ) | $ | (3,051 | ) | $ | 1,569 | $ | (4,620 | ) |
(In thousands, except for %'s) | Three Months Ended December 31, 2017 | ||||||||||||||||||||||||
TES | % | LTL | % | Ascent | % | Corporate/ Eliminations | Total | ||||||||||||||||||
Revenues | $ | 316,325 | 56.5 | % | $ | 115,157 | 20.6 | % | $ | 131,367 | 23.4 | % | $ | (2,490 | ) | $ | 560,359 | ||||||||
Operating expenses: | |||||||||||||||||||||||||
Purchased transportation costs | 219,039 | 69.2 | % | 84,217 | 73.1 | % | 96,419 | 73.4 | % | (2,494 | ) | 397,181 | |||||||||||||
Personnel and related benefits | 37,218 | 11.8 | % | 18,187 | 15.8 | % | 12,355 | 9.4 | % | 5,820 | 73,580 | ||||||||||||||
Other operating expenses | 47,501 | 15.0 | % | 23,467 | 20.4 | % | 15,276 | 11.6 | % | 15,776 | 102,020 | ||||||||||||||
Depreciation and amortization | 6,578 | 2.1 | % | 1,515 | 1.3 | % | 1,207 | 0.9 | % | 613 | 9,913 | ||||||||||||||
Total operating expenses | 310,336 | 98.1 | % | 127,386 | 110.6 | % | 125,257 | 95.3 | % | 19,715 | 582,694 | ||||||||||||||
Operating income (loss) | 5,989 | 1.9 | % | (12,229 | ) | (10.6 | )% | 6,110 | 4.7 | % | (22,205 | ) | (22,335 | ) | |||||||||||
Total interest expense | 18,667 | ||||||||||||||||||||||||
Loss before income taxes | (41,002 | ) | |||||||||||||||||||||||
Benefit from income taxes | (17,675 | ) | |||||||||||||||||||||||
Net loss | $ | (23,327 | ) | ||||||||||||||||||||||
Total Assets | $ | 458,945 | $ | 79,065 | $ | 271,400 | $ | 66,633 | $ | 876,043 | |||||||||||||||
Capital expenditures | $ | 4,518 | $ | 740 | $ | 276 | $ | 4,964 | $ | 10,498 |
(In thousands) | Three Months Ended December 31, 2017 | ||||||||||||||||||
TES | LTL | Ascent | Corporate/ Eliminations | Total | |||||||||||||||
Net (loss) income | $ | 5,982 | $ | (12,261 | ) | $ | 6,077 | $ | (23,125 | ) | $ | (23,327 | ) | ||||||
Plus: Total interest expense | 7 | 32 | 33 | 18,595 | 18,667 | ||||||||||||||
Plus: Benefit from income taxes | — | — | — | (17,675 | ) | (17,675 | ) | ||||||||||||
Plus: Depreciation and amortization | 6,578 | 1,515 | 1,207 | 613 | 9,913 | ||||||||||||||
Plus: Long-term incentive compensation expenses | — | — | — | 640 | 640 | ||||||||||||||
Plus: Restructuring and restatement costs | — | — | — | 8,730 | 8,730 | ||||||||||||||
Adjusted EBITDA(1) | $ | 12,567 | $ | (10,714 | ) | $ | 7,317 | $ | (12,222 | ) | $ | (3,052 | ) |
(In thousands, except for %'s) | Twelve Months Ended December 31, 2017 | ||||||||||||||||||||||||
TES | % | LTL | % | Ascent | % | Corporate/ Eliminations | Total | ||||||||||||||||||
Revenues | $ | 1,067,145 | 51.0 | % | $ | 463,519 | 22.2 | % | $ | 570,223 | 27.3 | % | $ | (9,596 | ) | $ | 2,091,291 | ||||||||
Operating expenses: | |||||||||||||||||||||||||
Purchased transportation costs | 690,620 | 64.7 | % | 331,177 | 71.4 | % | 418,170 | 73.3 | % | (9,589 | ) | 1,430,378 | |||||||||||||
Personnel and related benefits | 150,581 | 14.1 | % | 70,521 | 15.2 | % | 58,196 | 10.2 | % | 17,627 | 296,925 | ||||||||||||||
Other operating expenses | 194,420 | 18.2 | % | 83,851 | 18.1 | % | 60,997 | 10.7 | % | 54,463 | 393,731 | ||||||||||||||
Depreciation and amortization | 25,535 | 2.4 | % | 4,353 | 0.9 | % | 5,965 | 1.0 | % | 1,894 | 37,747 | ||||||||||||||
Gain from sale of Unitrans | — | — | % | — | — | % | — | — | % | (35,440 | ) | (35,440 | ) | ||||||||||||
Impairment charges | — | — | % | — | — | % | 4,402 | 0.8 | % | — | 4,402 | ||||||||||||||
Total operating expenses | 1,061,156 | 99.4 | % | 489,902 | 105.7 | % | 547,730 | 96.1 | % | 28,955 | 2,127,743 | ||||||||||||||
Operating income (loss) | 5,989 | 0.6 | % | (26,383 | ) | (5.7 | )% | 22,493 | 3.9 | % | (38,551 | ) | (36,452 | ) | |||||||||||
Total interest expense | 64,049 | ||||||||||||||||||||||||
Loss from debt extinguishment | 15,876 | ||||||||||||||||||||||||
Loss before income taxes | (116,377 | ) | |||||||||||||||||||||||
Benefit from income taxes | (25,191 | ) | |||||||||||||||||||||||
Net loss | $ | (91,186 | ) | ||||||||||||||||||||||
Total Assets | $ | 458,945 | $ | 79,065 | $ | 271,400 | $ | 66,633 | $ | 876,043 | |||||||||||||||
Capital expenditures | $ | 11,833 | $ | 1,641 | $ | 1,397 | $ | 6,839 | $ | 21,710 |
(In thousands) | Twelve Months Ended December 31, 2017 | ||||||||||||||||||||||||||
TES | LTL | Ascent | Corporate/ Eliminations | Total | Less: Unitrans (2) | Total w/o Unitrans | |||||||||||||||||||||
Net (loss) income | $ | 6,033 | $ | (26,578 | ) | $ | 22,350 | $ | (92,991 | ) | $ | (91,186 | ) | 5,792 | $ | (96,978 | ) | ||||||||||
Plus: Total interest expense | (44 | ) | 195 | 143 | 63,755 | 64,049 | — | 64,049 | |||||||||||||||||||
Plus: Benefit from income taxes | — | — | — | (25,191 | ) | (25,191 | ) | — | (25,191 | ) | |||||||||||||||||
Plus: Depreciation and amortization | 25,535 | 4,353 | 5,965 | 1,894 | 37,747 | 819 | 36,928 | ||||||||||||||||||||
Plus: Impairment charges | — | — | 4,402 | — | 4,402 | — | 4,402 | ||||||||||||||||||||
Plus: Long-term incentive compensation expenses | — | — | — | 2,450 | 2,450 | — | 2,450 | ||||||||||||||||||||
Plus: Gain on sale of Unitrans | — | — | — | (35,440 | ) | (35,440 | ) | — | (35,440 | ) | |||||||||||||||||
Plus: Loss on debt extinguishments | — | — | — | 15,876 | 15,876 | — | 15,876 | ||||||||||||||||||||
Plus: Restructuring and restatement costs | — | — | — | 32,321 | 32,321 | — | 32,321 | ||||||||||||||||||||
Adjusted EBITDA(1) | $ | 31,524 | $ | (22,030 | ) | $ | 32,860 | $ | (37,326 | ) | $ | 5,028 | $ | 6,611 | $ | (1,583 | ) |
(1) EBITDA represents earnings before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as EBITDA excluding impairment and other non-cash gains and losses, other long-term incentive compensation expenses, losses from debt extinguishments, restructuring and restatement costs associated with legal matters (including our internal investigation, SEC compliance and debt restructuring costs), and adjustments to contingent purchase obligations. We use Adjusted EBITDA as a supplemental measure in evaluating our operating performance and when determining executive incentive compensation. We believe Adjusted EBITDA is useful to investors in evaluating our performance compared to other companies in our industry because it assists in analyzing and benchmarking the performance and value of a business. The calculation of Adjusted EBITDA eliminates the effects of financing, income taxes, and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company’s business. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. Although our management uses Adjusted EBITDA as a financial measure to assess the performance of our business compared to that of others in our industry, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
• | Adjusted EBITDA does not reflect our cash expenditures, future requirements for capital expenditures, or contractual commitments; |
• | Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; |
• | Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt or dividend payments on our preferred stock; |
• | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and |
• | Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our results of operations under GAAP.
(2) On September 15, 2017, the Company completed the sale of its wholly-owned Subsidiary Unitrans, Inc. ("Unitrans"). Adjusted EBITDA without Unitrans is being shown for comparability purposes with future periods.
(Dollars in thousands) | |||||||||||||
2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||
TES | $ | 990,665 | 48.7 | % | $ | 833,430 | 41.8 | % | |||||
LTL | 461,540 | 22.7 | % | 515,328 | 25.9 | % | |||||||
Ascent | 597,159 | 29.4 | % | 673,574 | 33.8 | % | |||||||
Eliminations | (16,164 | ) | (0.8 | )% | (30,166 | ) | (1.5 | )% | |||||
Total | 2,033,200 | 100.0 | % | 1,992,166 | 100.0 | % | |||||||
Purchased transportation costs: | |||||||||||||
TES | 613,847 | 62.0 | % | 474,526 | 56.9 | % | |||||||
LTL | 320,439 | 69.4 | % | 357,124 | 69.3 | % | |||||||
Ascent | 445,935 | 74.7 | % | 508,912 | 75.6 | % | |||||||
Eliminations | (16,166 | ) | (0.8 | )% | (30,166 | ) | (1.5 | )% | |||||
Total | 1,364,055 | 67.1 | % | 1,310,396 | 65.8 | % | |||||||
Other operating expenses (1): | |||||||||||||
TES | 333,503 | 33.7 | % | 289,973 | 34.8 | % | |||||||
LTL | 143,337 | 31.1 | % | 139,965 | 27.2 | % | |||||||
Ascent | 130,323 | 21.8 | % | 125,799 | 18.7 | % | |||||||
Corporate | 53,950 | 2.7 | % | 32,036 | 1.6 | % | |||||||
Total | 661,113 | 32.5 | % | 587,773 | 29.5 | % | |||||||
Depreciation and amortization: | |||||||||||||
TES | 25,872 | 2.6 | % | 21,040 | 2.5 | % | |||||||
LTL | 4,052 | 0.9 | % | 2,801 | 0.5 | % | |||||||
Ascent | 6,688 | 1.1 | % | 6,449 | 1.0 | % | |||||||
Corporate | 1,533 | 0.1 | % | 1,336 | 0.1 | % | |||||||
Total | 38,145 | 1.9 | % | 31,626 | 1.6 | % | |||||||
Impairment charges: | |||||||||||||
TES | 133,988 | 13.5 | % | — | — | % | |||||||
LTL | 197,312 | 42.8 | % | — | — | % | |||||||
Ascent | 42,361 | 7.1 | % | — | — | % | |||||||
Corporate | — | — | % | — | — | % | |||||||
Total | 373,661 | 18.4 | % | — | — | % | |||||||
Operating (loss) income: | |||||||||||||
TES | (116,545 | ) | (11.8 | )% | 47,891 | 5.8 | % | ||||||
LTL | (203,600 | ) | (44.1 | )% | 15,438 | 3.0 | % | ||||||
Ascent | (28,148 | ) | (4.7 | )% | 32,414 | 4.8 | % | ||||||
Corporate | (55,481 | ) | (2.7 | )% | (33,372 | ) | (1.7 | )% | |||||
Total | (403,774 | ) | (19.9 | )% | 62,371 | 3.1 | % | ||||||
Total interest expense | 22,827 | 1.1 | % | 19,439 | 1.0 | % | |||||||
Loss on early extinguishment of debt | — | — | % | — | — | % | |||||||
(Loss) income before income taxes | (426,601 | ) | (21.0 | )% | 42,932 | 2.2 | % | ||||||
(Benefit from) provision for income taxes | (66,281 | ) | (3.3 | )% | 17,312 | 0.9 | % | ||||||
Net (loss) income | $ | (360,320 | ) | (17.7 | )% | $ | 25,620 | 1.3 | % | ||||
Capital expenditures: | |||||||||||||
TES | $ | 7,978 | $ | 44,606 | |||||||||
LTL | 4,051 | 11,367 | |||||||||||
Ascent | 5,465 | 4,350 | |||||||||||
Corporate | 79 | 2,078 | |||||||||||
Total | $ | 17,573 | $ | 62,401 |
1) Reflects the sum of personnel and related benefits, other operating expenses, and acquisition and transaction expenses.
2016 | 2015 | ||||||
Total assets: | |||||||
TES | $ | 436,237 | $ | 559,716 | |||
LTL | 129,899 | 330,203 | |||||
Ascent | 366,894 | 414,740 | |||||
Corporate | 3,488 | 8,056 | |||||
Eliminations (1) | (2,964 | ) | (4,962 | ) | |||
Total | $ | 933,554 | $ | 1,307,753 |
(1) Eliminations represents intercompany trade receivable balances between the three segments.