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XPO · XPO

20 filings

10-K

XPO 10-K Annual Reports

XPO - 20 annual reports

Filing record · 2016–202610-K1110-Q338-K243

2025
XPO Annual Report, Year Ended Dec 31, 2025
XPO, Inc. reported full-year 2025 revenue of $8.16 billion, up 1.1% from $8.07 billion in 2024, with operating income of $656 million versus $660 million and net income of $316 million, down from $387 million. Management describes the freight environment as recessionary, but says that the company's North American LTL segment, its largest, is positioned for a rebound. North American LTL revenue fell 1.4% to $4.8 billion, with tonnage down 6.2% per day, offset by a 6.0% increase in yield (gross revenue per hundredweight excluding fuel surcharges). Segment adjusted EBITDA rose to $1.14 billion from $1.12 billion, and the company notes that it lowered third-party purchased transportation costs by over 50% versus 2024 through linehaul insourcing. European Transportation revenue rose 4.8% to $3.3 billion, with foreign currency contributing about 3.6 percentage points, while segment adjusted EBITDA declined to $147 million from $158 million. The Board's previously announced authorization to divest the European business remains in effect, though the filing states there can be no assurance a transaction will occur. Cash from continuing operations rose to $986 million from $808 million, and capital expenditures were $657 million. The company repurchased $125 million of stock in 2025 and had $625 million remaining under its $750 million authorization. Total liquidity was approximately $910 million at year-end, and the company states it believes existing liquidity is sufficient for the next 12 months. The filing also records a $35 million charge related to a legacy Pre-Con-way environmental matter, which the company says is unrelated to its North American LTL operations. Effective tax rate rose to 27.8% from 18.1%, largely because 2024 included a one-time $41 million benefit from a European legal entity reorganization. KPMG issued an unqualified opinion on both the financial statements and internal control over financial reporting, with self-insured claims identified as the critical audit matter.
Feb 5, 2026
2024
XPO Annual Report, Year Ended Dec 31, 2024
XPO, Inc. reported full-year 2024 revenue of $8.07 billion, up from $7.74 billion in 2023, with operating income rising to $660 million from $438 million and net income of $387 million versus $189 million. The growth was driven by the North American LTL segment, where revenue increased 4.9% to $4.9 billion and adjusted EBITDA rose to $1.115 billion from $864 million, aided by a $34 million gain on real estate transactions. Yield, measured as gross revenue per hundredweight excluding fuel surcharges, grew 7.8%, while shipment weight volume declined slightly (pounds per day down 0.8%). Management noted that the freight environment remains recessionary and that January 2025 weight per day fell 8.5% year over year. The European Transportation segment was steadier, with revenue up 3.3% to $3.2 billion but adjusted EBITDA slipping to $158 million from $163 million. The Board's authorization to divest the European business remains in effect, though the filing states there is no assurance a transaction will occur. Operating cash flow from continuing operations was $808 million, against $789 million of capital expenditures, and total liquidity was about $757 million at year-end. Leverage remains a focus: total outstanding debt principal was $3.3 billion excluding finance leases, interest expense rose 32.7% to $223 million, and management guides 2025 interest expense of $220 million to $230 million and gross capital expenditures of $600 million to $700 million. The company has not paid cash dividends and made no share repurchases in 2024, with $503 million remaining under its authorization.
Feb 7, 2025
2023
XPO Annual Report, Year Ended Dec 31, 2023
XPO, Inc. reported 2023 revenue of $7.74 billion, up slightly from $7.72 billion in 2022, while net income fell to $189 million from $666 million. The decline was driven largely by the absence of 2022 discontinued-operations gains, including the $430 million pre-tax gain on the sale of its North American intermodal operation. Income from continuing operations rose to $192 million from $184 million, and operating income increased to $438 million from $377 million. The company now operates solely as an asset-based LTL provider in North America, following the spin-offs of GXO and RXO and the intermodal sale, and its North American LTL segment is the largest component of the business. The segment's revenue was $4.67 billion, with Adjusted EBITDA of $864 million, or 18.5% of revenue, compared with 20.1% in 2022. The company's balance sheet and capital spending changed significantly in December 2023 with the acquisition of 28 service centers from Yellow Corporation for a purchase price of $918 million. To fund this and to refinance debt, XPO issued $2.96 billion of debt during 2023. Total debt, excluding finance leases, rose to $3.3 billion, and capital expenditures reached $1.5 billion, compared with $521 million in 2022. Cash and cash equivalents were $412 million at year-end, and total liquidity was approximately $920 million. Management expects 2024 gross capital expenditures of $700 million to $800 million and interest expense of $240 million to $260 million. The European Transportation segment generated revenue of $3.07 billion, flat year over year, and Adjusted EBITDA of $163 million. The filing states that the Board has previously authorized the divestiture of the European business, but it provides no assurance that a sale will occur. KPMG LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting, and it identified self-insured claims liabilities as a critical audit matter.
Feb 8, 2024
2022
XPO Annual Report, Year Ended Dec 31, 2022
XPO, Inc. reported 2022 revenue of $7.72 billion, up from $7.20 billion in 2021, with growth primarily reflecting its North American Less-Than-Truckload (LTL) segment. Operating income rose to $377 million from $312 million, and net income attributable to XPO was $666 million, including $482 million from discontinued operations. Income from continuing operations was $184 million, compared with $96 million in 2021. Results were helped by lower interest expense, which fell to $135 million from $211 million, and by a $430 million pre-tax gain on the sale of the North American intermodal operation, which was recorded in discontinued operations. The year was defined by portfolio restructuring. The November 1, 2022 spin-off of RXO, Inc. left LTL as XPO's only North American business, and the company has stated its Board previously authorized the divestiture of its European Transportation business, though there can be no assurance that it will occur. North American LTL generated $4.65 billion of revenue and $1.01 billion of Adjusted EBITDA, while European Transportation generated $3.07 billion of revenue and $169 million of Adjusted EBITDA. Cash from continuing operations rose to $824 million, and the company repurchased $1.07 billion of debt during the year, reducing total debt principal to $2.64 billion. The company also recorded a $64 million goodwill impairment related to European Transportation reporting units. Investors should weigh the benefits of the reshaped LTL-focused profile against the execution risks the filing highlights, including the planned European divestiture, the effectiveness of the LTL network investment plan, rising labor and fuel costs, and the company's reliance on floating-rate facilities as it transitions away from LIBOR. Management also disclosed a leadership transition, with Mario Harik named CEO and Carl Anderson CFO in November 2022.
Feb 13, 2023
2021
XPO Annual Report, Year Ended Dec 31, 2021
XPO Logistics, Inc. reported 2021 revenue of $12.8 billion, up from $10.2 billion in 2020, with growth in both its North American less-than-truckload (LTL) and truck brokerage businesses. Operating income rose to $616 million from $228 million, and net income attributable to XPO was $336 million, compared with $110 million in 2020. The company completed the spin-off of its Logistics segment as GXO Logistics, Inc. on August 2, 2021, which is presented as discontinued operations, so the figures above reflect continuing operations. The company's two reportable segments are North American LTL, with 2021 revenue of $4.1 billion and adjusted EBITDA of $904 million, and Brokerage and Other Services, with revenue of $8.9 billion and adjusted EBITDA of $547 million. Management highlighted a pricing-driven action plan for LTL, expansion of its driver base and terminal network, and continued investment in its XPO Connect digital brokerage platform. Cash and cash equivalents fell to $260 million from $1.7 billion as the company redeemed $2.8 billion of senior notes, and long-term debt was $3.5 billion at year-end. Key risks disclosed include freight-volume cyclicality, driver shortages and rising driver compensation, the ongoing legal challenge to the classification of independent contractors, pending union organizing efforts, and a securities class action that is now on appeal. The company stated it has never paid cash dividends on its common stock.
Feb 16, 2022
2020
XPO Annual Report, Year Ended Dec 31, 2020
XPO Logistics, Inc. (XPO) reported 2020 revenue of $16.25 billion, down from $16.65 billion in 2019, as COVID-19 declines in demand weighed on both segments. Operating income fell to $391 million from $821 million, and net income was $117 million versus $440 million a year earlier. Diluted earnings per share were $0.78, compared with $3.57 in 2019. Results were hit by $100 million of transaction and integration costs, $56 million of restructuring expense, and approximately $74 million of SG&A tied to the exploration of strategic alternatives. Interest expense rose to $325 million from $292 million. The company announced in December 2020 that its Board unanimously approved a plan to spin off 100% of its Logistics segment as a separate publicly traded company, with completion currently expected in the second half of 2021, subject to conditions and no assurance of timing. Post-spin, XPO would focus on LTL and truck brokerage. Cash and cash equivalents rose to $2.05 billion at year-end 2020 from $377 million, largely reflecting a $1.15 billion Senior Notes due 2025 issuance, and the company stated that existing liquidity is sufficient for the next 12 months. In January 2021 it acquired the majority of Kuehne + Nagel's U.K. and Ireland contract logistics operations, with approximately $585 million of 2020 annual revenue. Key risks disclosed include the uncertain course of the COVID-19 pandemic, driver and independent contractor classification litigation (including Alvarez and Arrellano cases scheduled for trial in September 2021 with no estimate of possible loss), securities class action litigation, spin-off tax qualification risk, and exposure to euro and pound sterling currency movements. Chairman and CEO Brad Jacobs beneficially owned approximately 17.6% of outstanding common stock as of December 31, 2020.
Feb 12, 2021
2019
XPO Annual Report, Year Ended Dec 31, 2019
XPO Logistics, Inc., together with its subsidiaries, is a top ten global provider of supply chain solutions with two reporting segments, Transportation and Logistics. As of December 31, 2019, it had approximately 100,000 employees and 1,504 locations in 30 countries. Transportation contributed approximately 64% of 2019 consolidated revenue and Logistics approximately 36%. Consolidated revenue decreased 3.7% to $16.6 billion in 2019 from $17.3 billion in 2018, primarily due to a reduction in business from the company's largest customer (about $570 million less revenue). Operating income rose to $821 million from $704 million, and net income was $440 million compared with $444 million in 2018. Interest expense increased 34.6% to $292 million, reflecting higher average debt used to fund share purchases. In January 2020, the company announced a review of strategic alternatives, including the possible sale or spin-off of one or more business units, with no timetable set. It stated it does not intend to sell or spin off its North American less-than-truckload unit. The filing notes that a sale or spin-off would leave a smaller, less diversified company. Cash flow from operations fell to $791 million from $1.10 billion, and the company repurchased $1.3 billion of common stock in 2019 under its 2018 and 2019 programs. Total debt (excluding finance leases) was $5.07 billion at year-end, with the Term Loan and Senior Notes due 2024 among the instruments. The filing also highlights ongoing legal exposure to independent contractor classification claims in the trucking and last mile businesses, a securities class action filed in December 2018, and KPMG's identification of self-insured claims liabilities and goodwill carrying value as critical audit matters. The company adopted the new lease standard (ASU 2016-02) on January 1, 2019, recognizing $2.1 billion of operating lease assets and liabilities.
Feb 10, 2020
2018
XPO Annual Report, Year Ended Dec 31, 2018
XPO Logistics, Inc., a Delaware corporation, describes itself as a top ten global provider of supply chain solutions, operating through two segments, Transportation and Logistics. In 2018 revenue was $17.3 billion, up from $15.4 billion in 2017, with Transportation contributing approximately 65% and Logistics approximately 35%. Operating income rose to $704 million from $582 million, net income attributable to XPO was $422 million versus $340 million, and diluted earnings per share were $2.88 compared with $2.45 in 2017. Net income for 2017 included a $173 million tax benefit from the Tax Cuts and Jobs Act. Cash flow strengthened, with net cash provided by operating activities of $1,102 million in 2018 versus $785 million in 2017. Total debt was $4.4 billion at year-end 2018 ($4,415 million principal balance), and long-term debt was $3,902 million. The company repurchased 10 million shares for $536 million in 2018 and completed a further 8 million-share, $464 million repurchase in January and February 2019. On February 13, 2019, the Board authorized a new repurchase of up to $1.5 billion of common stock. The filing also flags a material change in its largest customer relationship: the customer curtailed business in the fourth quarter of 2018 and downsized further in early 2019, which management estimates will reduce 2019 revenue by approximately $600 million. Other notable risks include ongoing securities class action litigation filed in December 2018, independent contractor classification claims in the U.S. and Europe, and Brexit-related exposure, as 38% of 2018 revenue came from the U.K. and Europe.
Feb 14, 2019
2017
XPO Annual Report, Year Ended Dec 31, 2017
XPO Logistics, Inc. reported full-year 2017 revenue of $15,380.8 million, up from $14,619.4 million in 2016, with operating income rising to $623.2 million from $488.1 million. Net income attributable to XPO was $340.2 million for 2017 versus $69.0 million in 2016, and includes a $173.1 million tax benefit from the Tax Cuts and Jobs Act. Results were driven by European contract logistics growth, U.S. LTL weight-per-day improvement, and growth in North American truck brokerage and last mile, partially offset by the October 2016 divestiture of the North American truckload operation and a $57.6 million foreign currency loss. The company operates two segments, Transportation and Logistics, with 2017 operating income of $538.8 million and $249.2 million respectively. Operating cash flow was $798.6 million, up from $625.4 million, while capital expenditures were $503.8 million. Interest expense fell to $284.3 million from $361.1 million, reflecting lower average debt and refinancings. Total debt principal was $4,683.9 million at year-end, and the company completed a July 2017 common stock offering that raised $287.6 million net. The filing also discloses material risks, including independent contractor classification claims, union organizing efforts, Brexit exposure (about 37% of 2017 revenue in Europe), and sanctions-related voluntary disclosures to OFAC. Bradley Jacobs beneficially owns approximately 15% of common stock. The company has never paid cash dividends on common stock.
Feb 12, 2018
2016
XPO Annual Report, Year Ended Dec 31, 2016
XPO Logistics, Inc. reported record annual revenue of $14,619.4 million for 2016, up from $7,623.2 million in 2015, driven largely by the 2015 acquisitions of Norbert Dentressangle SA (ND) and Con-way Inc. (Con-way), along with organic growth. Operating income rose to $488.1 million from an operating loss of $28.6 million in 2015, and net income was $84.5 million compared with a net loss of $191.6 million. Diluted earnings per share were $0.53, versus a loss of $2.65 per share in 2015. The company operates two segments: Transportation (revenue of $9,457.3 million) and Logistics (revenue of $5,323.9 million), and describes itself as a top ten global provider of supply chain solutions with over 87,000 employees and 1,425 locations in 34 countries. Balance sheet and cash flow reflect the leverage taken on for the 2015 acquisitions. Total debt principal was $5,044.2 million at December 31, 2016, against cash and equivalents of $373.4 million. Interest expense rose to $361.1 million from $216.7 million. Cash from operations was $625.4 million, up from $90.8 million, while the company repurchased $1,889.2 million of debt during 2016, funded in part by $547.7 million of proceeds from the sale of its North American Truckload operations to TransForce Inc. and $1,377.8 million of new long-term debt issuance. Investors should weigh the improved profitability against risks the filing highlights, including exposure to independent contractor misclassification lawsuits, a voluntary disclosure to OFAC regarding transactions with sanctioned countries, the UK's expected exit from the EU, and the concentrated ownership of Chairman and CEO Bradley S. Jacobs, who beneficially owns approximately 15% of common stock.
Feb 28, 2017
2015
XPO Annual Report, Year Ended Dec 31, 2015
XPO Logistics, Inc. reported a transformed business for fiscal 2015, driven by a series of large acquisitions. Revenue rose to $7.62 billion from $2.36 billion in 2014, and net revenue reached $3.45 billion, with net revenue margin of 45.3% versus 27.8% a year earlier. The growth came mainly from the Norbert Dentressangle SA (ND) and Con-way Inc. acquisitions, which closed in June and October 2015 respectively, along with Bridge Terminal Transport and UX Specialized Logistics. Despite the higher revenue, the company posted a net loss of $191.6 million for 2015 (versus $63.6 million in 2014), and net loss attributable to common shareholders was $245.9 million, reflecting transaction and integration costs, higher interest expense of $216.7 million, foreign currency losses and increased intangible amortization. The balance sheet expanded sharply, with total assets of $12.64 billion and long-term debt of $5.27 billion at year-end 2015, compared with $2.75 billion of total assets a year earlier. Cash and cash equivalents were $289.8 million. Total indebtedness was approximately $5.41 billion, and the company noted that its ability to service this debt depends on cash flows and on realizing acquisition synergies. The company stated it believes existing cash and revolver availability will be sufficient for existing operations, and it expects 2016 net capital expenditures of $475 million to $500 million. The filing also highlights ongoing risks, including independent contractor misclassification lawsuits in California and last-mile operations, a Department of Defense Inspector General and Department of Justice investigation involving Government Services, pension obligations assumed from Con-way and ND, and currency exposure, since a 10% stronger U.S. dollar would reduce net assets by approximately $31.1 million against the euro and $53.9 million against sterling. The company has never paid cash dividends on common stock.
Feb 29, 2016
2014
XPO Annual Report, Year Ended Dec 31, 2014
XPO Logistics, Inc., a Delaware corporation, reports for the year ended December 31, 2014 as a leading asset-light third-party logistics provider. Revenue rose to $2,356.6 million in 2014 from $702.3 million in 2013, driven largely by the acquisitions of Pacer, 3PD, New Breed and NLM, while net loss widened to $63.6 million from $48.5 million. Net loss available to common stockholders was $107.4 million, including a $40.9 million preferred stock beneficial conversion charge. Net revenue reached $654.8 million, with net revenue margin of 27.8% versus 17.6% in 2013, but SG&A rose to $422.5 million and the company recorded an operating loss of $40.9 million. The company now operates two segments: Transportation, with 2014 operating income of $18.9 million, and Logistics, following the September 2, 2014 acquisition of New Breed, with operating income of $17.6 million. Cash flow from operations was negative at $21.3 million, and the company ended the year with cash of $644.1 million, working capital of $852.0 million and total long-term debt of $592.1 million, including $500.0 million of 7.875% Senior Notes due 2019. Subsequent to year-end, the company issued an additional $400.0 million of those notes and acquired UX Specialized Logistics for $59.0 million in cash. The filing highlights significant litigation and labor-classification risk tied to owner-operator status, particularly the Pacer classification claims, where a reserve was established and the company says a loss may exceed it. It also flags dependence on independent contractors, rail partners, and the 2012 Union Pacific agreement, which contemplates the termination of the company's wholesale US-Mexico automotive role as of December 31, 2015. Management concluded that internal control over financial reporting was effective as of December 31, 2014, excluding ACL and New Breed from its assessment.
Feb 23, 2015
2013
XPO Annual Report, Year Ended Dec 31, 2013
XPO Logistics, Inc. reported a net loss of $48.5 million on revenue of $702.3 million for fiscal 2013, compared with a net loss of $20.3 million on revenue of $278.6 million in 2012. Revenue rose 152.1% year over year, driven largely by six acquisitions in 2013 (including 3PD, NLM, Optima, Covered, Interide and East Coast Air Charter) and growth in Freight Brokerage cold-start locations. Gross margin dollars rose to $123.5 million (17.7% of revenue, up from 14.7%), but SG&A expense of $175.8 million (25.0% of revenue) drove an operating loss of $52.3 million, reflecting investment in sales force recruitment, new offices and corporate costs. The company's balance sheet expanded considerably, with total assets of $780.2 million and goodwill of $363.4 million at year-end. Cash used in operations was $66.3 million in 2013, and investing activities used $470.3 million, mainly for acquisitions. Financing was supported by $239.5 million of net proceeds from an August 2013 stock offering and $73.3 million of revolver borrowings. Total long-term debt was $181.6 million, including $106.3 million of 4.50% convertible senior notes and $75.4 million of revolver and other long-term debt, and the company had a $125.0 million revolving credit facility with $75.0 million drawn. Subsequent to year-end, XPO agreed on January 5, 2014 to acquire Pacer International, Inc. for $6.00 in cash plus a stock component, and closed a February 2014 common stock offering that netted $413.3 million. Jacobs Private Equity, controlled by Chairman and CEO Bradley S. Jacobs, is the largest stockholder, and the company describes a number of risks including independent contractor classification, litigation with C.H. Robinson Worldwide, and dependence on acquisitions.
Feb 26, 2014
2012
XPO Annual Report, Year Ended Dec 31, 2012
XPO Logistics, Inc., a Delaware corporation, describes itself as a non-asset based transportation services provider that acts as a third-party broker between shippers and carriers. It operates three segments: Freight Brokerage (revenue of $125.1 million in 2012, up from $29.2 million), Expedited Transportation ($94.0 million, up 7.4%), and Freight Forwarding ($67.7 million, up 3.9%). Consolidated operating revenue rose 57.3% to $278.6 million, but the company posted a net loss of $20.3 million for 2012 (loss of $23.3 million to common shareholders, or $(1.49) per share), compared with net income of $0.8 million in 2011. Gross margin fell to 14.7% of revenue from 16.8%, while SG&A rose to $68.8 million, or 24.7% of revenue, reflecting growth initiatives, four acquisitions (Turbo, BirdDog, Kelron, Continental), and new cold-start sales offices. The balance sheet strengthened substantially during 2012. Cash and cash equivalents were $252.3 million at year-end, working capital was $271.9 million, and the company raised $137.0 million from a common stock offering and $138.5 million net from 4.50% Convertible Senior Notes due 2017. Cash used in operations was $24.3 million in 2012. Management states that existing cash balances will be sufficient for the next twelve months. Chairman and CEO Bradley S. Jacobs, through Jacobs Private Equity, LLC, beneficially owns approximately 52% of the outstanding common stock on an as-converted and exercised basis, and the company is a controlled company under NYSE rules. The filing also discloses material litigation with C.H. Robinson Worldwide, Inc. in Minnesota state court over the hiring of former CHR employees. A temporary injunction was granted in January 2013, with one provision stayed, and the company intends to vigorously defend the action, which it says could have a material adverse effect on its business.
Mar 12, 2013
2011
XPO Annual Report, Year Ended Dec 31, 2011
XPO Logistics, Inc. reported a year of revenue growth but sharply lower net income for the year ended December 31, 2011. Operating revenue rose to $177.1 million from $158.0 million in 2010, a 12.1% increase, driven mainly by international revenue at Express-1 and continued growth in Freight Brokerage. Operating income fell to $1.7 million from $8.4 million, and net income declined to $759,000 from $4.9 million. Results were weighed down by investment in a new executive team and corporate infrastructure, equity compensation, and indirect costs tied to the Equity Investment. Net loss available to common stockholders was $44.6 million, or $(5.41) per share, after a $44.2 million deemed distribution from the beneficial conversion feature of the Series A Preferred Stock. The September 2011 Equity Investment by Jacobs Private Equity, LLC brought in $75.0 million in gross cash through 75,000 shares of Series A Convertible Perpetual Preferred Stock and warrants. Cash rose to $74.0 million at year-end from $561,000, and working capital increased to $83.1 million. Bradley Jacobs, through JPE, controls a large share of the stock: the filing says conversion and exercise would represent approximately 70% of outstanding common stock. The company is pursuing a growth strategy built on targeted acquisitions of non-asset based brokerage businesses, opening cold-start brokerage offices (the first in Phoenix, Arizona, in Q4 2011), and building a proprietary IT platform. The filing also discloses risk factors investors should weigh. These include dependence on independent contractor drivers and their classification, the company's reliance on a few large automotive-related customers, a new and geographically dispersed senior management team, and the covenant-related technical non-compliance on preferred dividends that the lender waived. Management expects Corporate costs in 2012 to run at a slightly higher rate than in the fourth quarter of 2011.
Mar 1, 2012
2010
XPO Annual Report, Year Ended Dec 31, 2010
Express-1 Expedited Solutions, Inc. (now XPO, Inc.) reported a strong 2010 in its Form 10-K for the year ended December 31, 2010. Consolidated operating revenue rose to $157,987,000 from $100,136,000 in 2009, an increase of 57.8%, and net income reached $4,888,000 ($0.15 per diluted share) versus $1,705,000 ($0.05) in 2009. Gross margin improved to 17.3% of revenue from 16.7%, and SG&A fell to 12.0% of revenue from 13.6%. The company attributes $12.1 million of the revenue growth to LRG International (CGL International), acquired in October 2009, with the remainder achieved organically. The company operates three non-asset based units: Express-1 (expedited ground transportation, 51.3% revenue growth to $76,644,000), Concert Group Logistics (freight forwarding, $65,222,000, with 24 independently owned stations and two company-owned international branches), and Bounce Logistics (premium truckload brokerage, $19,994,000, up 91.8%). Management describes 2011 as optimistic, expecting tightening truck capacity and continued economic improvement to support pricing and margins. Balance sheet and liquidity were modestly improved. Cash was $561,000, working capital was $12.3 million, and total assets were $56,672,000. In March 2010 the company renewed a $15.0 million PNC Bank facility comprising a $10.0 million receivables-based line of credit and a $5.0 million term loan, with a March 31, 2012 maturity on the line. Operating cash flow was $1,757,000 for 2010, and the company stated it was in compliance with its credit covenants. The company has never paid cash dividends.
Mar 25, 2011
2009
XPO Annual Report, Year Ended Dec 31, 2009
Express-1 Expedited Solutions, Inc. reported consolidated revenue of $100.1 million for 2009, down from $109.5 million in 2008, while net income fell to $1.705 million from $3.156 million. Consolidated gross margin improved to 16.7% from 16.3%, but SG&A rose to $13.6 million from $12.7 million, reducing operating income from continuing operations to $3.17 million from $5.17 million. The company describes 2009 as a difficult year under economic recession conditions, noting a strong fourth quarter in which revenue rose $6.7 million, or 27%, compared to the fourth quarter of 2008, driven partly by the LRG International acquisition. The company operates three non-asset based business units: Express-1 (expedited transportation, about 50% of 2009 revenue), Concert Group Logistics (freight forwarding, about 40%), and Bounce Logistics (premium truckload brokerage, about 10%). Express-1 Dedicated was discontinued in February 2009 after losing an automotive contract. Liquidity tightened over the year: cash used in operations was $99,000 versus $7.0 million provided in 2008, working capital fell to $970,000, and the $11.0 million receivables-based credit facility, which matures May 31, 2010, had a $6.53 million outstanding balance at year-end. Management reports that internal controls were effective as of December 31, 2009. The company's common stock trades on the NYSE AMEX under the symbol "XPO" (now XPO, Inc.), and it has never paid cash dividends. Approximately 3,600 holders of record were reported as of March 12, 2010.
Mar 26, 2010
2008
XPO Annual Report, Year Ended Dec 31, 2008
Express-1 Expedited Solutions, Inc. (the "Company") reported for fiscal 2008 that its three operating units, Express-1 (expedited transportation), Concert Group Logistics (freight forwarding, acquired January 2008) and Bounce Logistics (premium truckload brokerage, started March 2008), together generated revenues of $109.46 million, up from $47.71 million in 2007. Express-1 Dedicated was discontinued in the fourth quarter of 2008 and its operations ceased on February 28, 2009. Income from continuing operations rose to $2.82 million ($0.09 per diluted share) and net income was $3.16 million ($0.10 per share), compared with net income of $2.17 million in 2007. Gross margin was $17.83 million, or 16% of revenue, down from 25% in 2007, reflecting the lower-margin acquired businesses and rate compression. The balance sheet strengthened, with total assets of $41.68 million and stockholders' equity of $26.53 million at December 31, 2008, versus $23.72 million and $18.20 million a year earlier. Goodwill rose to $14.92 million. Long-term obligations increased to $4.76 million, mainly from a $2.32 million line of credit and $1.4 million of notes payable used to finance the CGL acquisition, which was funded with $9.0 million in cash and 4.8 million shares. The Company reported cash from operations of $7.05 million and was in compliance with its credit facility covenants at year end. The filing highlights economic risk. Management said the U.S. economy was in recession and that revenue, costs and profitability are likely to be negatively affected until conditions stabilize. The Company also noted heavy exposure to the domestic automotive industry, with a Big Three automaker accounting for about 7% of 2008 revenue, and said it settled the CGL earnout in March 2009 for $1.1 million. The Company describes its shares as trading on the NYSE AMEX under the symbol "XPO" and states it has never paid cash dividends.
Mar 30, 2009
2007
XPO Annual Report, Year Ended Dec 31, 2007
Express-1 Expedited Solutions, Inc. reported 2007 operating revenue of $52.8 million, up 25.1% from $42.2 million in 2006, and income from operations of $3.47 million, up 25.0%. Net income fell to $2.17 million, or $0.08 per diluted share, from $3.90 million, or $0.15 per share, in 2006, because the company recorded a $1.3 million current tax provision in 2007 versus a $1.1 million tax benefit in 2006. Express-1 contributed about 90% of 2007 revenue and Express-1 Dedicated about 10%. Gross margin as a share of revenue declined to 24.4% from 25.6%, reflecting weak freight rates and rising fuel costs, while SG&A held at 17.8% of revenue versus 19.0% a year earlier. The filing's most significant subsequent event is the January 2008 purchase of substantially all assets of Concert Group Logistics, LLC, paid with $9.0 million in cash and 4.8 million shares of common stock, plus up to $2.0 million in contingent consideration. It was financed with a new $14.6 million National City Bank facility, comprising an $11.0 million receivables line and a $3.6 million term loan, and the company also formed Bounce Logistics, a premium truckload brokerage that began operations in March 2008. Those units were not consolidated in 2007 results, so the company will report a materially different business mix going forward. Cash at year-end 2007 was $800,000 and working capital was $3.78 million, and the company stated it does not expect to pay dividends. Investors should weigh the company's concentration risk: its 25 largest customers generated about 50% of revenue, and roughly 30% of revenue came from the Big Three U.S. automakers and their suppliers. The company relies heavily on independent contract drivers and third-party equipment, and it reported that most of its historical acquisitions have not been successful. The filing also discloses a $2.21 million earn-out paid in March 2008 that had been accrued at year-end 2007.
Mar 27, 2008
2006
XPO Annual Report, Year Ended Dec 31, 2006
Express-1 Expedited Solutions, Inc. reported its 2006 results as a return to profitability. Operating revenue rose to $42.19 million from $39.85 million in 2005, a 5.9% increase, while net earnings were $3.90 million, or $0.15 per diluted share, compared with a net loss of $5.82 million in 2005. The improvement reflects the completion of the 2004-2005 restructuring, which exited unprofitable businesses and cut corporate and SG&A costs. Express-1 segment revenue grew 21.7% to $37.33 million, driven mainly by a roughly 23% increase in contractor fleet capacity, while the Evansville dedicated contract segment grew 8.9% to $4.86 million. The company remains highly dependent on the automotive sector and a few large customers. The filing says about 50% of revenue came from its twenty-five largest customers, and that the Big Three automakers and their suppliers generated approximately 35% of consolidated revenue. The Evansville contract, which accounts for about 10% of volume, runs through April 2007 and is expected to be renewed in the first half of 2007; the filing says non-renewal could trigger significant one-time shutdown costs. Liquidity is tight: year-end cash was $79,000, working capital was $2.08 million, and the company had about $3.7 million of available borrowing capacity under its asset-based credit line. Contingent acquisition earn-out payments of $1.96 million for 2007 and $2.21 million for 2008 also remain outstanding. The company pays no dividends and intends to retain earnings to fund growth. Its stock trades on the American Stock Exchange under the symbol "XPO", and the filing notes approximately 600 holders of record. The filing also describes potential dilution from about 13.15 million outstanding options and warrants.
Mar 29, 2007