Non asset-based 3PL XPO Logistics reported second quarter revenue of $137.1 million yesterday, marking a 151.4 percent annual increase. The company added that gross margin dollars rose 128.4 percent annually to $19.3 million, with gross margin percentage 14.1 percent. XPO had a quarterly net loss of $17.4 million compared to a net loss of $5.2 million during the second quarter of 2012, which company officials said reflect “the positive impact of acquisitions from prior periods and significant organic growth, offset by planned strategic investments long-term value creation, transaction-related costs and litigation costs. The company recently announced it plans to acquire 3PD Inc., the largest non-asset, third party provider of heavy goods, last-mile logistics in North America, for roughly $365 million, with the sale price comprised of $357 million in cash and $8 million in restricted XPO stock. The deal is expected to be made official by the end of the third quarter. XPO’s Freight brokerage group had a very strong quarter, with total revenue of $95.4 million for a 587.2 percent annual gain, with a gross margin percentage of 13.2 percent, topping 11.0 percent during the second quarter of 2012. These increases, said XPO, were largely due to acquisitions and the ongoing expansion of its brokerage cold-start locations (which are defined by XPO as opening up new offices in new locations). Freight brokerage had a quarterly operating loss of $5.0 million compared to $825,000 last year, which it said was due to an increase in SG&A costs for sales force expansion, technology and training. Other business groups at XPO also had strong quarters, including: -Expedited transportation with revenue at $26.4 for a 2.8 percent annual gain, and gross margin at 15.9 percent, down from 20.0 percent, which XPO said was due to a soft expedited market environment and revenue from air charter. Quarterly operating income was 1.2 million, down from $2.6 million last year, due to the impact of a lower gross margin percentage; and Freight forwarding had $19.3 million in total revenue for a 17.4 percent annual increase, due in large part to the growth in company-owned locations and higher international volume shipments, with gross margin at 13.3 percent compared to 11.0 percent last year. Quarterly operating income—at $478,000—was up 119.3 percent, with XPO saying it was due to a higher gross margin that was partially offset by SG&A expenses related to previous cold-start openings.
Posted on: Wed, 31 Jul 2013 22:02:02 +0000
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