XPO Logistics Halves Loss, Acquires Bridge Terminal Transport
Freight transportation and logistics provider, XPO Logistics Inc., announced it had narrowed its first quarter loss while it has reached an agreement to purchase Bridge Terminal Transport Services Inc.
It reported a net loss of $14.7 million for the quarter, compared with a net loss of $28.3 million for the same period in 2014, or 20 cents per diluted share, compared with a net loss of 70 cents per diluted share a year earlier.
Total gross revenue increased 148.9% year-over-year to $703 million.
“Our first quarter performance reflects the resilience of our diversified service offering,” said Bradley Jacobs, chairman and CEO. “We generated strong results in our last mile and expedite businesses, and in our logistics segment. These gains were offset by a weak spot market for freight brokerage and the disruption of our intermodal business due to the West Coast port slowdowns. March was a more broadly favorable operating environment, with an upswing that continued into April.”
The Connecticut-based company also said it entered into a definitive agreement to acquire Bridge Terminal Transport Services Inc., one of the largest asset-light drayage providers in the United States.
The $100 million transaction, subject to regulatory review, is expected to close in the second quarter of 2015.
BTT had revenue of $232 million for the 12 months ending March 31.
In business for 33 years, BTT arranges ground transportation through a network of 28 terminals and approximately 1,300 independent owner operators, with approximately 250 employees and 1,800 customers, according to XPO.
“Our purchase of BTT will almost triple our drayage capacity to over 2,000 independent owner operators,” said Jacobs. “When we close the transaction, we’ll have approximately 6,200 independent owner operators in our network, providing service to our customers in intermodal, last mile and expedite. We’ll integrate BTT and rebrand the operations under our single, global brand of XPO Logistics.”
The news comes just a few days after XPO said it would to acquire a majority interest in the France-based Norbert Dentressangle, a global provider of contract logistics, for about $3.5 billion.
Plans also call for XPO to launch a tender offer for the remaining shares.
“This is a defining moment in the growth of XPO,” said Jacobs. “Our planned acquisition of Norbert Dentressangle will catapult XPO to a top ten global logistics company. It will more than triple our EBITDA (earnings before interest, taxes, depreciation and amortization) to $545 million and increase our revenue to about $8.5 billion upon completion of the tender offer, nearly achieving our 2017 financial targets two years ahead of plan.”
In light of XPO’s acquisitions, the company has raised its 2015 targets to an annual revenue run rate of at least $9.5 billion and an annual EBITDA run rate of at least $625 million by December 31, more than twice its EBITDA target three months ago.