Daseke Posts Net Loss but Revenue Jumps 20% in 2Q
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Daseke Inc. reported a net loss of $6.4 million, or 10 cents per share, in the quarter ended June 30, compared with net income of $13.5 million, or 22 cents per share, in the year-ago quarter.
The flatbed, logistics and truckload company based in Addison, Texas, said revenue surged 20% to $450.6 million from $376.9 million in the second quarter of 2018.
Chairman and CEO Don Daseke said a softer freight market was overcome by focusing on what its segments and subsidiaries could offer clients.
“Our unique and leading specialized solutions transportation segment delivered another quarter of consistent performance, which helped us overcome a softer environment in the flatbed solutions market and deliver 20% top-line revenue growth, or nearly 1% on an organic, acquisition-adjusted basis,” Daseke said in an Aug. 5 news release.
Daseke
Chief Financial Officer Bharat Mahajan told investors in a conference call that all profitability results in the second quarter include increased investments in Daseke Logistics, information technology system upgrades and new management positions. Mahajan also cited costs relating to timing differences in Daseke’s self-funded health insurance plans and higher auto-liability insurance costs and claims.
The company said operating income in the second quarter was $4.7 million, compared with $8.5 million in the year-ago quarter.
Included in operating expenses for the second quarter of 2019 was $5.9 million of depreciation expense related to the net impact of the step-up in basis of acquired assets, and $3.9 million for the amortization of intangibles, for a total noncash impact of $9.8 million, Daseke officials said.
Daseke said its specialized solutions revenue increased 29% to $280.7 million, compared with $218.4 million in the 2018 quarter. Operating income in the second quarter of 2019 was $11.1 million compared with $7.1 million in the year-ago quarter.
In the segment of flatbed, revenue in the second quarter increased 8% to $174.9 million, compared with $162.2 million in the year-ago quarter. Operating income was $6.1 million, compared to $9.3 million in the 2018 period.
Daseke has a fleet of approximately 6,000 tractors, 13,000 flatbed and specialized trailers, and more than 1 million square feet of industrial warehousing space.
Daseke Inc. ranks No. 21 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
