Echo Global Posts First-Quarter Net Loss Despite Revenue Record
Third-party logistics provider Echo Global Logistics reported record revenue for a first-quarter on April 26, but its small profit from the same quarter a year ago became a net loss, as purchased transportation costs increased and net revenue declined.
Chicago-based Echo lost $2.87 million, or 10 cents a share, on revenue of $415.8 million for the three months ended March 31. During the same time in 2016, the company made $262,600, or 1 cent, on revenue of $405.3 million.
Brokerage revenue was nearly flat, gaining just 0.3%, year-over-year, to $333 million, but the managed transportation segment grew by 13% to $82.8 million from $73.3 million in the 2016 quarter.
“We signed another $56 million of new contracts during the quarter,” Chairman and CEO Doug Waggoner said.
Echo ranks No. 39 on the Transport Topics Top 50 list of the largest logistics companies in North America.
The margin of net revenue — gross revenue less purchased transportation — deteriorated by two percentage points to 17.9% in the quarter just ended from 19.9% in the year-ago period.
Quarterly transportation costs rose 5.2% to $341.3 million from $324.5 million. That dug into net revenue, which declined to $74.5 million from $80.8 million.
An operating profit of $3.82 million in the year-ago quarter became an operating loss of $777,300 in this year’s first three months.
