XPO Logistics, Inc. Leaps Upwards in Second Quarter 2013
With chairman and CEO Bradley Jacobsâ€™ hands on the tiller, XPO Logistics, Inc. has shown a very real leap up in revenue for the second quarter of 2013. XPO Logistics has grown in its three business units, freight brokerage, expedited transportation and freight forwarding, to 22,000 ground, sea and air carriers to serve over 8,500 customers in the manufacturing, industrial, commercial, life sciences and government sectors with a second quartertotal revenue of $137.1 million.
XPO Logisticsâ€™ press release of July 30, 2013 reports, â€œTotal revenue was $137.1 million for the second quarter, a 151.4% increase from the same period in 2012. Gross margin dollars increased 128.4% year-over-year to $19.3 million, and gross margin percentage was 14.1%.
â€œFor the second quarter of 2013, the company reported a net loss of $17.4 million, compared with a net loss of $5.2 million for the same period in 2012. The net loss available to common shareholders was $18.1 million, or a loss of $1.00 per diluted share, compared with a net loss of $5.9 million, or a loss of $0.34 per diluted share, for the same period in 2012. The companyâ€™s second quarter results reflect the positive impact of acquisitions from prior periods and significant organic growth, offset by planned strategic investments in long-term value creation, transaction-related costs and litigation costs.
â€œEarnings (loss) before interest, taxes, depreciation and amortization (â€œEBITDAâ€), a non-GAAP financial measure, was a loss of $12.4 million for the second quarter of 2013, compared with a loss of $3.0 million for the same period in 2012. EBITDA includes $1.1 million and $1.2 million of non-cash share-based compensation for the second quarters of 2013 and 2012, respectively. The company had $178.2 million of cash as of June 30, 2013.â€
Even though expedite freight was soft during the first six months of 2013, capacity started to tighten early in July. This opens the door for increased revenue for the third and fourth quarters. This will assure that XPO Logistics, Inc. will meet its expected yearly revenue of 1 billion dollars by December 31, 2013.
XPO Logistics has grown over the last year to include 62 locations throughout the USA and Canada. Both cold start locations and company acquisitions are the generators of this growth. XPO Logistics is in the process of acquiring 3PD, Inc. (3PD) in a transaction valued at approximately $365 million. 3PD is the largest non-asset, third party provider of heavy goods, last-mile logistics in North America. The acquisition is expected to close in the third quarter of 2013, subject to customary conditions. The addition of 3PD, Inc. will expand XPO Logisticsâ€™ offerings by providing last-mile services to XPO Logisticsâ€™ customer base.
Bradley Jacobs is continuing his philosophy of high quality customer service by hiring from communities where his company has offices. In the last 12 months, XPO Logistics has hired over 800 new employees and keeps staff on when a new company is acquired. All employees are trained extensively in the latest technology and to provide a â€˜delight to the customerâ€™ standard of service. â€œIt is my obligation as a businessman to give back to the communities where we are located to put people from the community to work when needed to keep the company growing. It is good both for the company and the community,â€ states Jacobs.