|
|
|
|
|
Delaware
|
|
20-2454942
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1431 Opus Place, Suite 530
Downers Grove, Illinois
|
|
60515
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
Large accelerated filer
|
|
o
|
|
Accelerated filer
|
|
x
|
Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
|
|
|
|
Emerging growth company
|
|
o
|
|
|
|
|
|
ITEM 1.
|
FINANCIAL STATEMENTS.
|
(In thousands, except par value)
|
June 30,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
29,666
|
|
|
$
|
29,513
|
|
Accounts receivable, net of allowances of $13,576 and $18,573, respectively
|
283,594
|
|
|
272,924
|
|
||
Income tax receivable
|
37,215
|
|
|
40,766
|
|
||
Prepaid expenses and other current assets
|
49,630
|
|
|
31,284
|
|
||
Total current assets
|
400,105
|
|
|
374,487
|
|
||
Property and equipment,
net of accumulated depreciation of $95,771 and $88,453, respectively
|
162,313
|
|
|
171,857
|
|
||
Other assets:
|
|
|
|
||||
Goodwill
|
312,541
|
|
|
312,541
|
|
||
Intangible assets, net
|
61,398
|
|
|
65,549
|
|
||
Other noncurrent assets
|
8,070
|
|
|
9,120
|
|
||
Total other assets
|
382,009
|
|
|
387,210
|
|
||
Total assets
|
$
|
944,427
|
|
|
$
|
933,554
|
|
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current maturities of debt
|
$
|
—
|
|
|
$
|
445,589
|
|
Accounts payable
|
128,184
|
|
|
149,067
|
|
||
Accrued expenses and other current liabilities
|
89,061
|
|
|
89,381
|
|
||
Total current liabilities
|
217,245
|
|
|
684,037
|
|
||
Deferred tax liabilities
|
30,270
|
|
|
44,174
|
|
||
Other long-term liabilities
|
6,768
|
|
|
7,875
|
|
||
Preferred stock
|
546,858
|
|
|
—
|
|
||
Total liabilities
|
801,141
|
|
|
736,086
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
||||
Stockholders’ investment:
|
|
|
|
||||
Common stock $.01 par value; 105,000 shares authorized; 38,417 and 38,341 shares issued and outstanding
|
384
|
|
|
383
|
|
||
Additional paid-in capital
|
402,225
|
|
|
398,602
|
|
||
Retained deficit
|
(259,323
|
)
|
|
(201,517
|
)
|
||
Total stockholders’ investment
|
143,286
|
|
|
197,468
|
|
||
Total liabilities and stockholders’ investment
|
$
|
944,427
|
|
|
$
|
933,554
|
|
(In thousands, except per share amounts)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
$
|
530,579
|
|
|
$
|
483,417
|
|
|
$
|
1,009,499
|
|
|
$
|
949,963
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Purchased transportation costs
|
358,432
|
|
|
315,661
|
|
|
674,717
|
|
|
623,700
|
|
||||
Personnel and related benefits
|
75,672
|
|
|
71,690
|
|
|
150,082
|
|
|
140,039
|
|
||||
Other operating expenses
|
94,758
|
|
|
85,661
|
|
|
191,588
|
|
|
159,534
|
|
||||
Depreciation and amortization
|
9,210
|
|
|
9,179
|
|
|
18,515
|
|
|
18,388
|
|
||||
Total operating expenses
|
538,072
|
|
|
482,191
|
|
|
1,034,902
|
|
|
941,661
|
|
||||
Operating (loss) income
|
(7,493
|
)
|
|
1,226
|
|
|
(25,403
|
)
|
|
8,302
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest expense - preferred stock
|
25,040
|
|
|
—
|
|
|
25,040
|
|
|
—
|
|
||||
Interest expense - debt
|
3,315
|
|
|
5,695
|
|
|
9,840
|
|
|
11,303
|
|
||||
Total interest expense
|
28,355
|
|
|
5,695
|
|
|
34,880
|
|
|
11,303
|
|
||||
Loss from debt extinguishment
|
9,827
|
|
|
—
|
|
|
9,827
|
|
|
—
|
|
||||
Loss before benefit from income taxes
|
(45,675
|
)
|
|
(4,469
|
)
|
|
(70,110
|
)
|
|
(3,001
|
)
|
||||
Benefit from income taxes
|
(7,812
|
)
|
|
(1,730
|
)
|
|
(12,304
|
)
|
|
(1,162
|
)
|
||||
Net loss
|
$
|
(37,863
|
)
|
|
$
|
(2,739
|
)
|
|
$
|
(57,806
|
)
|
|
$
|
(1,839
|
)
|
Loss per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.99
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(1.51
|
)
|
|
$
|
(0.05
|
)
|
Diluted
|
$
|
(0.99
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(1.51
|
)
|
|
$
|
(0.05
|
)
|
Weighted average common stock outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
38,412
|
|
|
38,319
|
|
|
38,389
|
|
|
38,302
|
|
||||
Diluted
|
38,412
|
|
|
38,319
|
|
|
38,389
|
|
|
38,302
|
|
(In thousands)
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(57,806
|
)
|
|
$
|
(1,839
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
19,302
|
|
|
19,761
|
|
||
Loss (gain) on disposal of property and equipment
|
492
|
|
|
(236
|
)
|
||
Share-based compensation
|
1,268
|
|
|
1,126
|
|
||
Change in fair value of preferred stock
|
8,928
|
|
|
—
|
|
||
Amortization of preferred stock issuance costs
|
16,112
|
|
|
—
|
|
||
Loss from debt extinguishment
|
9,827
|
|
|
—
|
|
||
Provision for bad debts
|
1,601
|
|
|
1,450
|
|
||
Deferred tax provision
|
(13,904
|
)
|
|
367
|
|
||
Changes in:
|
|
|
|
||||
Accounts receivable
|
(12,271
|
)
|
|
(4,095
|
)
|
||
Income tax receivable
|
3,551
|
|
|
(4,230
|
)
|
||
Prepaid expenses and other assets
|
3,438
|
|
|
12,922
|
|
||
Accounts payable
|
(20,883
|
)
|
|
17,257
|
|
||
Accrued expenses and other liabilities
|
988
|
|
|
(7,025
|
)
|
||
Net cash (used in) provided by operating activities
|
(39,357
|
)
|
|
35,458
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(7,278
|
)
|
|
(10,631
|
)
|
||
Proceeds from sale of property and equipment
|
1,970
|
|
|
5,082
|
|
||
Net cash used in investing activities
|
(5,308
|
)
|
|
(5,549
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings under revolving credit facilities
|
63,368
|
|
|
121,745
|
|
||
Payments under revolving credit facilities
|
(236,068
|
)
|
|
(141,394
|
)
|
||
Debt payments
|
(277,750
|
)
|
|
(7,500
|
)
|
||
Debt issuance costs
|
(842
|
)
|
|
(677
|
)
|
||
Cash collateralization of letters of credit
|
(20,737
|
)
|
|
—
|
|
||
Payments of debt extinguishment costs
|
(4,911
|
)
|
|
—
|
|
||
Preferred stock issuance costs
|
(16,112
|
)
|
|
—
|
|
||
Proceeds from issuance of preferred stock and warrants
|
540,500
|
|
|
—
|
|
||
Payments of contingent purchase obligations
|
—
|
|
|
(798
|
)
|
||
Issuance of restricted stock units, net of taxes paid
|
(215
|
)
|
|
(177
|
)
|
||
Payment of capital lease obligation
|
(2,415
|
)
|
|
(2,939
|
)
|
||
Net cash provided by (used in) financing activities
|
44,818
|
|
|
(31,740
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
153
|
|
|
(1,831
|
)
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning of period
|
29,513
|
|
|
7,930
|
|
||
End of period
|
$
|
29,666
|
|
|
$
|
6,099
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Supplemental cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
9,727
|
|
|
$
|
9,686
|
|
Cash paid for (refunds from) income taxes, net
|
$
|
(2,426
|
)
|
|
$
|
910
|
|
|
TL
|
|
LTL
|
|
Ascent
|
|
Total
|
||||||||
Goodwill
|
$
|
99,214
|
|
|
$
|
—
|
|
|
$
|
213,327
|
|
|
$
|
312,541
|
|
|
TL
|
|
LTL
|
|
Ascent
|
|
Total
|
||||||||
Accumulated goodwill impairment charges
|
$
|
157,538
|
|
|
$
|
197,312
|
|
|
$
|
17,231
|
|
|
$
|
372,081
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
||||||||||||
TL
|
$
|
54,973
|
|
|
$
|
(15,878
|
)
|
|
$
|
39,095
|
|
|
$
|
54,973
|
|
|
$
|
(13,606
|
)
|
|
$
|
41,367
|
|
LTL
|
1,358
|
|
|
(1,117
|
)
|
|
241
|
|
|
1,358
|
|
|
(1,083
|
)
|
|
275
|
|
||||||
Ascent
|
38,427
|
|
|
(16,365
|
)
|
|
22,062
|
|
|
38,427
|
|
|
(14,520
|
)
|
|
23,907
|
|
||||||
Total
|
$
|
94,758
|
|
|
$
|
(33,360
|
)
|
|
$
|
61,398
|
|
|
$
|
94,758
|
|
|
$
|
(29,209
|
)
|
|
$
|
65,549
|
|
Remainder 2017
|
$
|
4,046
|
|
2018
|
7,932
|
|
|
2019
|
7,629
|
|
|
2020
|
7,257
|
|
|
2021
|
7,075
|
|
|
Thereafter
|
27,459
|
|
|
Total
|
$
|
61,398
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Senior debt:
|
|
|
|
||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
172,700
|
|
Term loan
|
—
|
|
|
277,750
|
|
||
Total senior debt
|
—
|
|
|
450,450
|
|
||
Less: Debt issuance costs
|
—
|
|
|
(4,861
|
)
|
||
Total senior debt, net of debt issuance costs
|
—
|
|
|
445,589
|
|
||
Less: Current maturities
|
—
|
|
|
(445,589
|
)
|
||
Total debt, net of current maturities
|
$
|
—
|
|
|
$
|
—
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Preferred stock:
|
|
|
|
||||
Series B Preferred
|
$
|
143,417
|
|
|
$
|
—
|
|
Series C Preferred
|
62,077
|
|
|
—
|
|
||
Series D Preferred
|
5,636
|
|
|
—
|
|
||
Series E Preferred
|
88,604
|
|
|
—
|
|
||
Series F Preferred
|
247,124
|
|
|
—
|
|
||
Total Preferred stock
|
$
|
546,858
|
|
|
$
|
—
|
|
|
Series B
|
Series C
|
Series D
|
Series E
|
Series F
|
Shares at $0.01 Par Value at issuance
|
155,000
|
55,000
|
100
|
90,000
|
240,500
|
Shares outstanding as of June 30, 2017
|
155,000
|
55,000
|
100
|
90,000
|
240,500
|
Price / Share
|
$1,000
|
$1,000
|
$1.00
|
$1,000
|
$1,000
|
Dividend Rate
|
Adjusted LIBOR + 3.00% + Additional Rate (4.75-12.50%) based on leverage. Additional 3.00% upon certain triggering events.
|
Adjusted LIBOR + 3.00% + Additional Rate (4.75-12.50%) based on leverage. Additional 3.00% upon certain triggering events.
|
Right to participate equally and ratably in all cash dividends paid on common stock.
|
Adjusted LIBOR + 5.25% + Additional Rate (8.50%). Additional 3.00% upon certain triggering events.
|
Adjusted LIBOR + 6.25% at closing. Additional 3.00% upon certain triggering events.
|
Dividend rate as of 6/30/2017
|
16.50%
|
16.50%
|
14.75%
|
14.75%
|
7.25%
|
Redemption Term
|
8 Years
|
8 Years
|
8 Years
|
6 Years
|
6 Years
|
Redemption Rights
|
From Closing Date:
12-24 months: 105% 24-36 months: 103% |
65% premium (subject to stock movement)
|
|
From Closing Date:
0-12 months: 106.5% 12-24 months: 103.5% |
(a)
Refinancing Date:
101.0% upon redemption with New ABL Facility
(b) From Closing Date: Refinancing Date-12 months: 106.5% 12-24 months: 103.5% |
•
|
the Series B Preferred Stock using a lattice model that takes into consideration the Company's call right on the instrument based on simulated future interest rates;
|
•
|
the Series C Preferred stock using a lattice model that takes into consideration the future redemption value on the instrument, which is tied to the Company's stock price;
|
•
|
the Series D Preferred Stock using a static discounted cash flow approach, where the expected redemption value of the instrument is based on the value of the Company's stock as of the measurement date grown at the risk-free rate;
|
•
|
the Series E Preferred Stock via application of both (i) a static discounted cash flow approach and (ii) a lattice model that takes into consideration the Company's call right on this instrument based on simulated future interest rates; and
|
•
|
the Series F Preferred Stock using a static discounted cash flow approach that assumes the Series F will be fully redeemed in 2017.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
June 30,
|
||||
|
2017
|
|
2017
|
||||
Balance, beginning of period
|
$
|
—
|
|
|
$
|
—
|
|
Issuance of preferred stock at fair value
|
537,930
|
|
|
537,930
|
|
||
Change in fair value of preferred stock
(1)
|
8,928
|
|
|
8,928
|
|
||
Balance, end of period
|
$
|
546,858
|
|
|
$
|
546,858
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
June 30,
|
||||
|
2016
|
|
2016
|
||||
Balance, beginning of period
|
$
|
4,913
|
|
|
$
|
4,913
|
|
Payments of contingent purchase obligations
|
(798
|
)
|
|
(798
|
)
|
||
Interest expense
|
96
|
|
|
96
|
|
||
Balance, end of period
|
$
|
4,211
|
|
|
$
|
4,211
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Beginning balance
|
$
|
177,940
|
|
|
$
|
557,471
|
|
|
$
|
197,468
|
|
|
$
|
556,439
|
|
Net loss
|
(37,863
|
)
|
|
(2,739
|
)
|
|
(57,806
|
)
|
|
(1,839
|
)
|
||||
Share-based compensation
|
658
|
|
|
577
|
|
|
1,268
|
|
|
1,126
|
|
||||
Issuance of warrants
|
2,571
|
|
|
—
|
|
|
2,571
|
|
|
—
|
|
||||
Issuance of restricted stock units, net of taxes paid
|
(20
|
)
|
|
(13
|
)
|
|
(215
|
)
|
|
(177
|
)
|
||||
Tax deficiency on share-based compensation
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
(285
|
)
|
||||
Ending balance
|
$
|
143,286
|
|
|
$
|
555,264
|
|
|
$
|
143,286
|
|
|
$
|
555,264
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
TL
|
$
|
321,168
|
|
|
$
|
282,225
|
|
|
$
|
605,015
|
|
|
$
|
555,569
|
|
LTL
|
121,968
|
|
|
122,346
|
|
|
230,744
|
|
|
236,699
|
|
||||
Ascent
|
89,119
|
|
|
83,627
|
|
|
177,502
|
|
|
167,005
|
|
||||
Eliminations
|
(1,676
|
)
|
|
(4,781
|
)
|
|
(3,762
|
)
|
|
(9,310
|
)
|
||||
Total
|
$
|
530,579
|
|
|
$
|
483,417
|
|
|
$
|
1,009,499
|
|
|
$
|
949,963
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
TL
|
$
|
3,667
|
|
|
$
|
(110
|
)
|
|
$
|
3,434
|
|
|
$
|
3,688
|
|
LTL
|
(3,264
|
)
|
|
781
|
|
|
(5,985
|
)
|
|
2,526
|
|
||||
Ascent
|
6,738
|
|
|
6,788
|
|
|
13,054
|
|
|
14,192
|
|
||||
Corporate
|
(14,634
|
)
|
|
(6,233
|
)
|
|
(35,906
|
)
|
|
(12,104
|
)
|
||||
Total
|
$
|
(7,493
|
)
|
|
$
|
1,226
|
|
|
$
|
(25,403
|
)
|
|
$
|
8,302
|
|
Interest expense
|
28,355
|
|
|
5,695
|
|
|
34,880
|
|
|
11,303
|
|
||||
Loss from debt extinguishment
|
9,827
|
|
|
—
|
|
|
9,827
|
|
|
—
|
|
||||
Loss before benefit from income taxes
|
$
|
(45,675
|
)
|
|
$
|
(4,469
|
)
|
|
$
|
(70,110
|
)
|
|
$
|
(3,001
|
)
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
||||||||
TL
|
$
|
6,571
|
|
|
$
|
6,700
|
|
|
$
|
13,238
|
|
|
$
|
13,442
|
|
LTL
|
953
|
|
|
865
|
|
|
1,914
|
|
|
1,734
|
|
||||
Ascent
|
1,257
|
|
|
1,233
|
|
|
2,522
|
|
|
2,455
|
|
||||
Corporate
|
429
|
|
|
381
|
|
|
841
|
|
|
757
|
|
||||
Total
|
$
|
9,210
|
|
|
$
|
9,179
|
|
|
$
|
18,515
|
|
|
$
|
18,388
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
TL
|
$
|
2,216
|
|
|
$
|
1,856
|
|
|
$
|
5,625
|
|
|
$
|
4,994
|
|
LTL
|
387
|
|
|
1,303
|
|
|
631
|
|
|
2,414
|
|
||||
Ascent
|
120
|
|
|
1,275
|
|
|
337
|
|
|
2,964
|
|
||||
Corporate
|
625
|
|
|
150
|
|
|
685
|
|
|
259
|
|
||||
Total
|
$
|
3,348
|
|
|
$
|
4,584
|
|
|
$
|
7,278
|
|
|
$
|
10,631
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Assets:
|
|
|
|
|
||||
TL
|
|
$
|
483,616
|
|
|
$
|
498,330
|
|
LTL
|
|
92,292
|
|
|
129,899
|
|
||
Ascent
|
|
292,449
|
|
|
302,164
|
|
||
Corporate
|
|
76,632
|
|
|
4,189
|
|
||
Eliminations
(1)
|
|
(562
|
)
|
|
(1,028
|
)
|
||
Total
|
|
$
|
944,427
|
|
|
$
|
933,554
|
|
•
|
$200.0 million
asset-based revolving line of credit, of which
$20.0 million
may be used for swing line loans and
$30.0 million
may be used for letters of credit;
|
•
|
$56.8 million
term loan facility; and
|
•
|
$35.0 million
asset-based facility available to finance future capital expenditures.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||
($ in thousands, except for %'s)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
$
|
|
% of
Revenues
|
|
$
|
|
% of
Revenues
|
|
$
|
|
% of
Revenues
|
|
$
|
|
% of
Revenues
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TL
|
$
|
321,168
|
|
|
60.5
|
%
|
|
$
|
282,225
|
|
|
58.4
|
%
|
|
$
|
605,015
|
|
|
59.9
|
%
|
|
$
|
555,569
|
|
|
58.5
|
%
|
LTL
|
121,968
|
|
|
23.0
|
%
|
|
122,346
|
|
|
25.3
|
%
|
|
230,744
|
|
|
22.9
|
%
|
|
236,699
|
|
|
24.9
|
%
|
||||
Ascent
|
89,119
|
|
|
16.8
|
%
|
|
83,627
|
|
|
17.3
|
%
|
|
177,502
|
|
|
17.6
|
%
|
|
167,005
|
|
|
17.6
|
%
|
||||
Eliminations
|
(1,676
|
)
|
|
(0.3
|
)%
|
|
(4,781
|
)
|
|
(1.0
|
)%
|
|
(3,762
|
)
|
|
(0.4
|
)%
|
|
(9,310
|
)
|
|
(1.0
|
)%
|
||||
Total
|
$
|
530,579
|
|
|
100.0
|
%
|
|
$
|
483,417
|
|
|
100.0
|
%
|
|
$
|
1,009,499
|
|
|
100.0
|
%
|
|
$
|
949,963
|
|
|
100.0
|
%
|
Purchased transportation costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TL
|
$
|
211,854
|
|
|
66.0
|
%
|
|
$
|
179,008
|
|
|
63.4
|
%
|
|
$
|
392,995
|
|
|
65.0
|
%
|
|
$
|
355,399
|
|
|
64.0
|
%
|
LTL
|
86,792
|
|
|
71.2
|
%
|
|
84,970
|
|
|
69.5
|
%
|
|
162,711
|
|
|
70.5
|
%
|
|
164,731
|
|
|
69.6
|
%
|
||||
Ascent
|
61,463
|
|
|
69.0
|
%
|
|
56,464
|
|
|
67.5
|
%
|
|
122,751
|
|
|
69.2
|
%
|
|
112,880
|
|
|
67.6
|
%
|
||||
Eliminations
|
(1,676
|
)
|
|
(0.3
|
)%
|
|
(4,781
|
)
|
|
(1.0
|
)%
|
|
(3,740
|
)
|
|
(0.4
|
)%
|
|
(9,310
|
)
|
|
(1.0
|
)%
|
||||
Total
|
$
|
358,433
|
|
|
67.6
|
%
|
|
$
|
315,661
|
|
|
65.3
|
%
|
|
$
|
674,717
|
|
|
66.8
|
%
|
|
$
|
623,700
|
|
|
65.7
|
%
|
Other operating expenses
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TL
|
$
|
99,076
|
|
|
30.8
|
%
|
|
$
|
96,627
|
|
|
34.2
|
%
|
|
$
|
195,348
|
|
|
32.3
|
%
|
|
$
|
183,040
|
|
|
32.9
|
%
|
LTL
|
37,487
|
|
|
30.7
|
%
|
|
35,730
|
|
|
29.2
|
%
|
|
72,104
|
|
|
31.2
|
%
|
|
67,708
|
|
|
28.6
|
%
|
||||
Ascent
|
19,661
|
|
|
22.1
|
%
|
|
19,142
|
|
|
22.9
|
%
|
|
39,175
|
|
|
22.1
|
%
|
|
37,478
|
|
|
22.4
|
%
|
||||
Corporate
|
14,205
|
|
|
2.7
|
%
|
|
5,852
|
|
|
1.2
|
%
|
|
35,043
|
|
|
3.5
|
%
|
|
11,347
|
|
|
1.2
|
%
|
||||
Total
|
$
|
170,429
|
|
|
32.1
|
%
|
|
$
|
157,351
|
|
|
32.5
|
%
|
|
$
|
341,670
|
|
|
33.8
|
%
|
|
$
|
299,573
|
|
|
31.5
|
%
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TL
|
$
|
6,571
|
|
|
2.0
|
%
|
|
$
|
6,700
|
|
|
2.4
|
%
|
|
$
|
13,238
|
|
|
2.2
|
%
|
|
$
|
13,442
|
|
|
2.4
|
%
|
LTL
|
953
|
|
|
0.8
|
%
|
|
865
|
|
|
0.7
|
%
|
|
1,914
|
|
|
0.8
|
%
|
|
1,734
|
|
|
0.7
|
%
|
||||
Ascent
|
1,257
|
|
|
1.4
|
%
|
|
1,233
|
|
|
1.5
|
%
|
|
2,522
|
|
|
1.4
|
%
|
|
2,455
|
|
|
1.5
|
%
|
||||
Corporate
|
429
|
|
|
0.1
|
%
|
|
381
|
|
|
0.1
|
%
|
|
841
|
|
|
0.1
|
%
|
|
757
|
|
|
0.1
|
%
|
||||
Total
|
$
|
9,210
|
|
|
1.7
|
%
|
|
$
|
9,179
|
|
|
1.9
|
%
|
|
$
|
18,515
|
|
|
1.8
|
%
|
|
$
|
18,388
|
|
|
1.9
|
%
|
Operating (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TL
|
$
|
3,667
|
|
|
1.1
|
%
|
|
$
|
(110
|
)
|
|
—
|
%
|
|
$
|
3,434
|
|
|
0.6
|
%
|
|
$
|
3,688
|
|
|
0.7
|
%
|
LTL
|
(3,264
|
)
|
|
(2.7
|
)%
|
|
781
|
|
|
0.6
|
%
|
|
(5,985
|
)
|
|
(2.6
|
)%
|
|
2,526
|
|
|
1.1
|
%
|
||||
Ascent
|
6,738
|
|
|
7.6
|
%
|
|
6,788
|
|
|
8.1
|
%
|
|
13,054
|
|
|
7.4
|
%
|
|
14,192
|
|
|
8.5
|
%
|
||||
Corporate
|
(14,634
|
)
|
|
(2.8
|
)%
|
|
(6,233
|
)
|
|
(1.3
|
)%
|
|
(35,906
|
)
|
|
(3.6
|
)%
|
|
(12,104
|
)
|
|
(1.3
|
)%
|
||||
Total
|
$
|
(7,493
|
)
|
|
(1.4
|
)%
|
|
$
|
1,226
|
|
|
0.3
|
%
|
|
$
|
(25,403
|
)
|
|
(2.5
|
)%
|
|
$
|
8,302
|
|
|
0.9
|
%
|
Interest expense
|
28,355
|
|
|
5.3
|
%
|
|
5,695
|
|
|
1.2
|
%
|
|
34,880
|
|
|
3.5
|
%
|
|
11,303
|
|
|
1.2
|
%
|
||||
Loss from debt extinguishment
|
9,827
|
|
|
1.9
|
%
|
|
—
|
|
|
—
|
%
|
|
9,827
|
|
|
1.0
|
%
|
|
—
|
|
|
—
|
%
|
||||
Loss before provision for income taxes
|
$
|
(45,675
|
)
|
|
(8.6
|
)%
|
|
$
|
(4,469
|
)
|
|
(0.9
|
)%
|
|
$
|
(70,110
|
)
|
|
(6.9
|
)%
|
|
$
|
(3,001
|
)
|
|
(0.3
|
)%
|
Benefit from income taxes
|
(7,812
|
)
|
|
(1.5
|
)%
|
|
(1,730
|
)
|
|
(0.4
|
)%
|
|
(12,304
|
)
|
|
(1.2
|
)%
|
|
(1,162
|
)
|
|
(0.1
|
)%
|
||||
Net loss
|
$
|
(37,863
|
)
|
|
(7.1
|
)%
|
|
$
|
(2,739
|
)
|
|
(0.6
|
)%
|
|
$
|
(57,806
|
)
|
|
(5.7
|
)%
|
|
$
|
(1,839
|
)
|
|
(0.2
|
)%
|
(1)
|
Reflects the sum of personnel and related benefits and other operating expenses.
|
|
Series B
|
Series C
|
Series D
|
Series E
|
Series F
|
Shares at $0.01 Par Value at issuance
|
155,000
|
55,000
|
100
|
90,000
|
240,500
|
Shares outstanding as of June 30, 2017
|
155,000
|
55,000
|
100
|
90,000
|
240,500
|
Price / Share
|
$1,000
|
$1,000
|
$1.00
|
$1,000
|
$1,000
|
Dividend Rate
|
Adjusted LIBOR + 3.00% + Additional Rate (4.75-12.50%) based on leverage. Additional 3.00% upon certain triggering events.
|
Adjusted LIBOR + 3.00% + Additional Rate (4.75-12.50%) based on leverage. Additional 3.00% upon certain triggering events.
|
Right to participate equally and ratably in all cash dividends paid on common stock.
|
Adjusted LIBOR + 5.25% + Additional Rate (8.50%). Additional 3.00% upon certain triggering events.
|
Adjusted LIBOR + 6.25% at closing. Additional 3.00% upon certain triggering events.
|
Dividend rate as of 6/30/2017
|
16.50%
|
16.50%
|
14.75%
|
14.75%
|
7.25%
|
Redemption Term
|
8 Years
|
8 Years
|
8 Years
|
6 Years
|
6 Years
|
Redemption Rights
|
From Closing Date:
12-24 months: 105% 24-36 months: 103% |
65% premium (subject to stock movement)
|
|
From Closing Date:
0-12 months: 106.5% 12-24 months: 103.5% |
(a)
Refinancing Date:
101.0% upon redemption with New ABL Facility
(b) From Closing Date: Refinancing Date-12 months: 106.5% 12-24 months: 103.5% |
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(39,357
|
)
|
|
$
|
35,458
|
|
Investing activities
|
(5,308
|
)
|
|
(5,549
|
)
|
||
Financing activities
|
44,818
|
|
|
(31,740
|
)
|
||
Net change in cash and cash equivalents
|
$
|
153
|
|
|
$
|
(1,831
|
)
|
•
|
the Series B Preferred Stock using a lattice model that takes into consideration our call right on the instrument based on simulated future interest rates;
|
•
|
the Series C Preferred stock using a lattice model that takes into consideration the future redemption value on the instrument, which is tied to our stock price;
|
•
|
the Series D Preferred Stock using a static discounted cash flow approach, where the expected redemption value of the instrument is based on the value of our stock as of the measurement date grown at the risk-free rate;
|
•
|
the Series E Preferred Stock via application of both (i) a static discounted cash flow approach and (ii) a lattice model that takes into consideration our call right on this instrument based on simulated future interest rates; and
|
•
|
the Series F Preferred Stock using a static discounted cash flow approach that assumes the Series F will be fully redeemed in 2017.
|
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
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
3.5
|
|
|
|
|
|
3.6
|
|
|
|
|
|
3.7
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.36
|
|
|
|
|
|
10.37
|
|
|
|
|
|
10.38
|
|
|
|
|
|
10.39
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
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: March 29, 2018
|
By:
|
|
/s/ Terence R. Rogers
|
|
|
|
Terence R. Rogers
|
|
|
|
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
|
Date: March 29, 2018
|
|
/s/
Curtis W. Stoelting
|
|
|
Curtis W. Stoelting
|
|
|
Chief Executive Officer (Principal Executive Officer)
|
Date: March 29, 2018
|
|
/s/ Terence R. Rogers
|
|
|
Terence R. Rogers
|
|
|
Chief Financial Officer (Principal Financial Officer and Principal Accounting 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/
Curtis W. Stoelting
|
Curtis W. Stoelting
|
Chief Executive Officer (Principal 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/ Terence R. Rogers
|
Terence R. Rogers
|
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|