|
|
|
|
|
Delaware
|
|
20-2454942
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(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
4900 S. Pennsylvania Ave.
Cudahy, Wisconsin
|
|
53110
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
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|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
o
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Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
|
|
|
|
|
ITEM 1.
|
FINANACIAL STATEMENTS.
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
8,064
|
|
|
$
|
8,664
|
|
Accounts receivable, net of allowances of $4,217 and $3,782, respectively
|
268,441
|
|
|
272,176
|
|
||
Deferred income taxes
|
4,323
|
|
|
4,876
|
|
||
Prepaid expenses and other current assets
|
60,342
|
|
|
62,101
|
|
||
Total current assets
|
341,170
|
|
|
347,817
|
|
||
Property and equipment,
net of accumulated depreciation of $75,539 and $68,517, respectively
|
197,353
|
|
|
197,744
|
|
||
Other assets:
|
|
|
|
||||
Goodwill
|
691,687
|
|
|
691,118
|
|
||
Intangible assets, net
|
74,547
|
|
|
76,694
|
|
||
Other noncurrent assets
|
5,828
|
|
|
6,183
|
|
||
Total other assets
|
772,062
|
|
|
773,995
|
|
||
Total assets
|
$
|
1,310,585
|
|
|
$
|
1,319,556
|
|
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Accounts payable
|
111,362
|
|
|
104,357
|
|
||
Accrued expenses and other liabilities
|
47,729
|
|
|
48,657
|
|
||
Total current liabilities
|
174,091
|
|
|
168,014
|
|
||
Long-term debt, net of current maturities
|
401,110
|
|
|
417,830
|
|
||
Other long-term liabilities
|
118,880
|
|
|
120,405
|
|
||
Total liabilities
|
694,081
|
|
|
706,249
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
||||
Stockholders’ investment:
|
|
|
|
||||
Common stock $.01 par value; 100,000 shares authorized; 38,318 and 38,266 shares issued and outstanding
|
383
|
|
|
383
|
|
||
Additional paid-in capital
|
397,385
|
|
|
397,253
|
|
||
Retained earnings
|
218,736
|
|
|
215,671
|
|
||
Total stockholders’ investment
|
616,504
|
|
|
613,307
|
|
||
Total liabilities and stockholders’ investment
|
$
|
1,310,585
|
|
|
$
|
1,319,556
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Revenues
|
|
$
|
465,632
|
|
|
$
|
488,970
|
|
Operating expenses:
|
|
|
|
|
||||
Purchased transportation costs
|
|
308,474
|
|
|
328,491
|
|
||
Personnel and related benefits
|
|
67,601
|
|
|
62,055
|
|
||
Other operating expenses
|
|
69,415
|
|
|
64,745
|
|
||
Depreciation and amortization
|
|
9,536
|
|
|
6,877
|
|
||
Total operating expenses
|
|
455,026
|
|
|
462,168
|
|
||
Operating income
|
|
10,606
|
|
|
26,802
|
|
||
Interest expense
|
|
5,608
|
|
|
4,609
|
|
||
Income before provision for income taxes
|
|
4,998
|
|
|
22,193
|
|
||
Provision for income taxes
|
|
1,933
|
|
|
8,589
|
|
||
Net income available to common stockholders
|
|
$
|
3,065
|
|
|
$
|
13,604
|
|
Earnings per share available to common stockholders:
|
|
|
|
|
||||
Basic
|
|
$
|
0.08
|
|
|
$
|
0.36
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.35
|
|
Weighted average common stock outstanding:
|
|
|
|
|
||||
Basic
|
|
38,284
|
|
|
38,011
|
|
||
Diluted
|
|
38,372
|
|
|
39,341
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
3,065
|
|
|
$
|
13,604
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
10,215
|
|
|
7,395
|
|
||
Loss on disposal of property and equipment
|
261
|
|
|
109
|
|
||
Share-based compensation
|
549
|
|
|
796
|
|
||
Provision for bad debts
|
337
|
|
|
612
|
|
||
Tax deficiency (excess tax benefit) on share-based compensation
|
253
|
|
|
(811
|
)
|
||
Deferred tax provision
|
367
|
|
|
607
|
|
||
Changes in:
|
|
|
|
||||
Accounts receivable
|
3,398
|
|
|
(3,858
|
)
|
||
Prepaid expenses and other assets
|
1,647
|
|
|
(1,109
|
)
|
||
Accounts payable
|
7,005
|
|
|
(11,292
|
)
|
||
Accrued expenses and other liabilities
|
(1,671
|
)
|
|
6,231
|
|
||
Net cash provided by operating activities
|
25,426
|
|
|
12,284
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(7,574
|
)
|
|
(15,833
|
)
|
||
Proceeds from sale of buildings and equipment
|
213
|
|
|
522
|
|
||
Net cash used in investing activities
|
(7,361
|
)
|
|
(15,311
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings under revolving credit facilities
|
51,665
|
|
|
32,764
|
|
||
Payments under revolving credit facilities
|
(65,314
|
)
|
|
(26,764
|
)
|
||
Long-term debt payments
|
(3,750
|
)
|
|
(2,500
|
)
|
||
Payments of contingent earnouts
|
—
|
|
|
(1,957
|
)
|
||
Proceeds from issuance of common stock, net of issuance costs
|
(164
|
)
|
|
1,339
|
|
||
(Tax deficiency) excess tax benefit on share-based compensation
|
(253
|
)
|
|
811
|
|
||
Reduction of capital lease obligation
|
(849
|
)
|
|
(27
|
)
|
||
Net cash (used in) provided by financing activities
|
(18,665
|
)
|
|
3,666
|
|
||
Net (decrease) increase in cash and cash equivalents
|
(600
|
)
|
|
639
|
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning of period
|
8,664
|
|
|
11,345
|
|
||
End of period
|
$
|
8,064
|
|
|
$
|
11,984
|
|
Supplemental cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
3,734
|
|
|
$
|
4,011
|
|
Cash paid for income taxes, net
|
$
|
418
|
|
|
$
|
1,105
|
|
|
TL
|
|
LTL
|
|
Global Solutions
|
|
Total
|
||||||||
Goodwill balance as of December 31, 2015
|
$
|
262,870
|
|
|
$
|
197,312
|
|
|
$
|
230,936
|
|
|
$
|
691,118
|
|
Adjustments to goodwill for purchase accounting
|
569
|
|
|
—
|
|
|
—
|
|
|
569
|
|
||||
Goodwill balance as of March 31, 2016
|
$
|
263,439
|
|
|
$
|
197,312
|
|
|
$
|
230,936
|
|
|
$
|
691,687
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
||||||||||||
TL
|
$
|
58,468
|
|
|
$
|
(10,922
|
)
|
|
$
|
47,546
|
|
|
$
|
58,468
|
|
|
$
|
(9,714
|
)
|
|
$
|
48,754
|
|
LTL
|
1,358
|
|
|
(1,033
|
)
|
|
325
|
|
|
1,358
|
|
|
(1,017
|
)
|
|
341
|
|
||||||
Global Solutions
|
38,427
|
|
|
(11,751
|
)
|
|
26,676
|
|
|
38,427
|
|
|
(10,828
|
)
|
|
27,599
|
|
||||||
Total
|
$
|
98,253
|
|
|
$
|
(23,706
|
)
|
|
$
|
74,547
|
|
|
$
|
98,253
|
|
|
$
|
(21,559
|
)
|
|
$
|
76,694
|
|
Remainder 2016
|
$
|
6,502
|
|
2017
|
8,558
|
|
|
2018
|
8,294
|
|
|
2019
|
7,990
|
|
|
2020
|
7,617
|
|
|
2021
|
7,435
|
|
|
Thereafter
|
28,151
|
|
|
Total
|
$
|
74,547
|
|
|
March 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Contingent purchase price related to acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,825
|
|
|
$
|
5,825
|
|
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,825
|
|
|
$
|
5,825
|
|
|
December 31, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Contingent purchase price related to acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,722
|
|
|
$
|
6,722
|
|
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,722
|
|
|
$
|
6,722
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Balance, beginning of period
|
|
$
|
6,722
|
|
|
$
|
7,665
|
|
Earnouts related to acquisitions
|
|
—
|
|
|
—
|
|
||
Payments of contingent purchase obligations
|
|
—
|
|
|
(1,957
|
)
|
||
Adjustments to contingent purchase obligations
(1)
|
|
(897
|
)
|
|
—
|
|
||
Balance, end of period
|
|
$
|
5,825
|
|
|
$
|
5,708
|
|
(1)
|
Adjustments to contingent purchase obligations are reported in other operating expenses in the condensed consolidated statements of operations.
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Senior debt:
|
|
|
|
||||
Revolving credit facility
|
$
|
129,500
|
|
|
$
|
143,149
|
|
Term loan
|
292,500
|
|
|
296,250
|
|
||
Total debt
|
422,000
|
|
|
439,399
|
|
||
Less: Current maturities
|
(15,000
|
)
|
|
(15,000
|
)
|
||
Less: Debt issuance costs
|
(5,890
|
)
|
|
(6,569
|
)
|
||
Total long-term debt, net of current maturities
|
$
|
401,110
|
|
|
$
|
417,830
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Beginning balance
|
|
$
|
613,307
|
|
|
$
|
558,775
|
|
Net income
|
|
3,065
|
|
|
13,604
|
|
||
Share-based compensation
|
|
549
|
|
|
796
|
|
||
Issuance of common stock from share-based compensation
|
|
—
|
|
|
1,339
|
|
||
Excess tax benefit on share-based compensation
|
|
—
|
|
|
811
|
|
||
Other changes
|
|
(417
|
)
|
|
—
|
|
||
Ending balance
|
|
$
|
616,504
|
|
|
$
|
575,325
|
|
|
|
Three Months Ended
|
||||
|
|
March 31,
|
||||
|
|
2016
|
|
2015
|
||
Basic weighted average common stock outstanding
|
|
38,284
|
|
|
38,011
|
|
Effect of dilutive securities
|
|
|
|
|
||
Employee stock options
|
|
9
|
|
|
125
|
|
Warrants
|
|
55
|
|
|
1,140
|
|
Restricted stock units
|
|
24
|
|
|
65
|
|
Diluted weighted average common stock outstanding
|
|
38,372
|
|
|
39,341
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Revenues:
|
|
|
|
|
||||
TL
|
|
$
|
273,804
|
|
|
$
|
271,995
|
|
LTL
|
|
113,430
|
|
|
131,645
|
|
||
Global Solutions
|
|
82,927
|
|
|
92,746
|
|
||
Eliminations
|
|
(4,529
|
)
|
|
(7,416
|
)
|
||
Total
|
|
465,632
|
|
|
488,970
|
|
||
Operating income:
|
|
|
|
|
||||
TL
|
|
$
|
5,854
|
|
|
$
|
15,471
|
|
LTL
|
|
1,159
|
|
|
8,659
|
|
||
Global Solutions
|
|
7,668
|
|
|
6,265
|
|
||
Corporate
|
|
(4,075
|
)
|
|
(3,593
|
)
|
||
Total operating income
|
|
10,606
|
|
|
26,802
|
|
||
Interest expense
|
|
5,608
|
|
|
4,609
|
|
||
Income before provision for income taxes
|
|
$
|
4,998
|
|
|
$
|
22,193
|
|
Depreciation and amortization:
|
|
|
|
|
||||
TL
|
|
$
|
6,844
|
|
|
$
|
4,433
|
|
LTL
|
|
1,010
|
|
|
835
|
|
||
Global Solutions
|
|
1,288
|
|
|
1,281
|
|
||
Corporate
|
|
394
|
|
|
328
|
|
||
Total
|
|
$
|
9,536
|
|
|
$
|
6,877
|
|
Capital expenditures:
|
|
|
|
|
||||
TL
|
|
$
|
4,458
|
|
|
$
|
14,260
|
|
LTL
|
|
1,294
|
|
|
824
|
|
||
Global Solutions
|
|
1,690
|
|
|
63
|
|
||
Corporate
|
|
132
|
|
|
686
|
|
||
Total
|
|
$
|
7,574
|
|
|
$
|
15,833
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Assets:
|
|
|
|
|
||||
TL
|
|
$
|
763,542
|
|
|
$
|
768,064
|
|
LTL
|
|
645,590
|
|
|
669,518
|
|
||
Global Solutions
|
|
317,771
|
|
|
319,703
|
|
||
Corporate
|
|
5,508
|
|
|
11,274
|
|
||
Eliminations
|
|
(421,826
|
)
|
|
(449,003
|
)
|
||
Total
|
|
$
|
1,310,585
|
|
|
$
|
1,319,556
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
|
|
Three Months Ended
|
||||||||||||
|
|
March 31,
|
||||||||||||
|
|
2016
|
|
2015
|
||||||||||
|
|
(In thousands, except for %’s)
|
||||||||||||
|
|
$
|
|
% of
Revenues
|
|
$
|
|
% of
Revenues
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||
TL
|
|
$
|
273,804
|
|
|
58.8
|
%
|
|
$
|
271,995
|
|
|
55.6
|
%
|
LTL
|
|
113,430
|
|
|
24.4
|
%
|
|
131,645
|
|
|
26.9
|
%
|
||
Global Solutions
|
|
82,927
|
|
|
17.8
|
%
|
|
92,746
|
|
|
19.0
|
%
|
||
Eliminations
|
|
(4,529
|
)
|
|
(1.0
|
)%
|
|
(7,416
|
)
|
|
(1.5
|
)%
|
||
Total
|
|
465,632
|
|
|
100.0
|
%
|
|
488,970
|
|
|
100.0
|
%
|
||
Purchased transportation costs:
|
|
|
|
|
|
|
|
|
||||||
TL
|
|
178,167
|
|
|
65.1
|
%
|
|
179,409
|
|
|
66.0
|
%
|
||
LTL
|
|
78,708
|
|
|
69.4
|
%
|
|
90,294
|
|
|
68.6
|
%
|
||
Global Solutions
|
|
56,128
|
|
|
67.7
|
%
|
|
66,204
|
|
|
71.4
|
%
|
||
Eliminations
|
|
(4,529
|
)
|
|
(1.0
|
)%
|
|
(7,416
|
)
|
|
(1.5
|
)%
|
||
Total
|
|
308,474
|
|
|
66.2
|
%
|
|
328,491
|
|
|
67.2
|
%
|
||
Other operating expenses
(1)
:
|
|
|
|
|
|
|
|
|
||||||
TL
|
|
82,939
|
|
|
30.3
|
%
|
|
72,682
|
|
|
26.7
|
%
|
||
LTL
|
|
32,553
|
|
|
28.7
|
%
|
|
31,857
|
|
|
24.2
|
%
|
||
Global Solutions
|
|
17,843
|
|
|
21.5
|
%
|
|
18,996
|
|
|
20.5
|
%
|
||
Corporate
|
|
3,681
|
|
|
0.8
|
%
|
|
3,265
|
|
|
0.7
|
%
|
||
Total
|
|
137,016
|
|
|
29.4
|
%
|
|
126,800
|
|
|
25.9
|
%
|
||
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
||||||
TL
|
|
6,844
|
|
|
2.5
|
%
|
|
4,433
|
|
|
1.6
|
%
|
||
LTL
|
|
1,010
|
|
|
0.9
|
%
|
|
835
|
|
|
0.6
|
%
|
||
Global Solutions
|
|
1,288
|
|
|
1.6
|
%
|
|
1,281
|
|
|
1.4
|
%
|
||
Corporate
|
|
394
|
|
|
0.1
|
%
|
|
328
|
|
|
0.1
|
%
|
||
Total
|
|
9,536
|
|
|
2.0
|
%
|
|
6,877
|
|
|
1.4
|
%
|
||
Operating income:
|
|
|
|
|
|
|
|
|
||||||
TL
|
|
5,854
|
|
|
2.1
|
%
|
|
15,471
|
|
|
5.7
|
%
|
||
LTL
|
|
1,159
|
|
|
1.0
|
%
|
|
8,659
|
|
|
6.6
|
%
|
||
Global Solutions
|
|
7,668
|
|
|
9.2
|
%
|
|
6,265
|
|
|
6.8
|
%
|
||
Corporate
|
|
(4,075
|
)
|
|
(0.9
|
)%
|
|
(3,593
|
)
|
|
(0.7
|
)%
|
||
Total
|
|
10,606
|
|
|
2.3
|
%
|
|
26,802
|
|
|
5.5
|
%
|
||
Interest expense
|
|
5,608
|
|
|
1.2
|
%
|
|
4,609
|
|
|
0.9
|
%
|
||
Income before provision for income taxes
|
|
4,998
|
|
|
1.1
|
%
|
|
22,193
|
|
|
4.5
|
%
|
||
Provision for income taxes
|
|
1,933
|
|
|
0.4
|
%
|
|
8,589
|
|
|
1.8
|
%
|
||
Net income available to common stockholders
|
|
$
|
3,065
|
|
|
0.7
|
%
|
|
$
|
13,604
|
|
|
2.8
|
%
|
(1)
|
Reflects the sum of personnel and related benefits, other operating expenses, and acquisition transaction expenses.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
25,426
|
|
|
$
|
12,284
|
|
Investing activities
|
(7,361
|
)
|
|
(15,311
|
)
|
||
Financing activities
|
(18,665
|
)
|
|
3,666
|
|
||
Net change in cash and cash equivalents
|
$
|
(600
|
)
|
|
$
|
639
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1.
|
LEGAL PROCEEDINGS.
|
ITEM 1A.
|
RISK FACTORS.
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Exhibit
|
|
|
|
|
|
|
10.29
|
|
Employment Agreement, dated January 18, 2016 by and between the Registrant and Curtis W. Stoelting
|
|
|
|
10.30
|
|
Form of Stock Option Agreement
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a)
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a)
|
|
|
|
32.1
|
|
Section 1350 Certification of Chief Executive Officer
|
|
|
|
32.2
|
|
Section 1350 Certification of Chief Financial Officer
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
ROADRUNNER TRANSPORTATION SYSTEMS, INC.
|
|
|
|
|
Date: May 10, 2016
|
By:
|
|
/s/ Mark A. DiBlasi
|
|
|
|
Mark A. DiBlasi
|
|
|
|
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date: May 10, 2016
|
By:
|
|
/s/ Peter R. Armbruster
|
|
|
|
Peter R. Armbruster
|
|
|
|
Chief Financial Officer, Treasurer, and Secretary (Principal
Financial Officer and Principal Accounting Officer)
|
Date: May 10, 2016
|
|
/s/ Mark A. DiBlasi
|
|
|
Mark A. DiBlasi
Chief Executive Officer
|
Date: May 10, 2016
|
|
/s/ Peter R. Armbruster
|
|
|
Peter R. Armbruster
Chief Financial Officer, Treasurer, and Secretary
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Mark A. DiBlasi
|
Mark A. DiBlasi
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Peter R. Armbruster
|
Peter R. Armbruster
|
Chief Financial Officer, Treasurer and Secretary
|