Roadrunner Transportation Services reported strong performance across all business segments for second-quarter 2012, generating revenue growth of 26.1% and net revenue growth of 47.8%. Operating income for the quarter was $18.6 million, and total revenues were reported at $262.5 million.
“Due to sales and operational initiatives, our operating income growth of 48.7% outpaced revenue,” said Mark DiBlasi, President and CEO. “Operating income for the second quarter of 2012 represented the best quarter in the history of the company. Our operating ratio improved 110 basis points to 92.9% from 94.0% in the second quarter of 2011 and 90 basis points sequentially from the first quarter of 2012.
The company’s LTL operating ratio improved to 91.9% in the second quarter from 93.7% in the second quarter of 2011. Initiatives to expand into new geographic regions, build density, improve pricing and enhance productivity resulted in a net revenue margin improvement from 24.2% in the second quarter of 2011 to 25.8% in the second quarter of 2012, said DiBlasi.
“TL revenues grew by $42.3 million, or 61.6%, from the prior year. Incremental revenues from our 2011 and 2012 acquisitions accounted for $36.7 million of the increase, with the balance of $5.6 million representing organic growth of 8.1%. Organic growth was reduced by the impact of last season’s crop failures in the Northeast and softening in the intermodal market. The positive impact of the acquisitions and operating leverage associated with our revenue growth led to a 61.1% increase in our TL operating income. Our TL operating ratio of 93.9% was relatively flat compared to last year and was impacted by the softer intermodal market, added infrastructure costs associated with our growth, expansion costs in our freight consolidation business and excess insurance costs.
“TMS revenue grew $4.1 million, or 21.8%, from the prior year. Organic growth and pricing accounted for $2.4 million of the increase, with the balance related to our late February 2012 acquisition of Capital Transportation Logistics. The operating leverage associated with this growth led to a 60.8% increase in TMS operating income. Our TMS operating ratio improved to 88.0% from 90.9% in the second quarter of 2011.”
In commenting on guidance for the third quarter of 2012, Peter Armbruster, CFO of Roadrunner, said, “We anticipate our revenues for the third quarter to be in the range of $265 million to $280 million, representing an increase of 17% to 24% from the third quarter of 2011. Further, we expect diluted income per share available to common stockholders to be between $0.31 and $0.34, compared to diluted income per share available to common stockholders of $0.23 in the prior year quarter.”
