XPO Narrows Loss, Boosts Revenue, Sets Targets
XPO Logistics Inc. narrowed its fourth-quarter loss to $9.9 million, excluding a charge related to an equity offering, while continuing its path of rapid revenue growth.
Revenue more than tripled to $830.7 million, reflecting a combination of acquisitions and 39% more revenue from existing businesses. The year-earlier net loss was $11.3 million.
CEO Bradley Jacobs, whose company ranks No. 12 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico, told TT, “We’re ahead of plan, and we're still in the early stages of our growth.”
The Greenwich, Connecticut-based company set 2015 targets, including revenue of $5.25 billion at an annualized rate, a $2 billion increase over last year.
Jacobs told TT the revenue growth will include $1.5 billion from acquisitions and $500 million in organic growth.
He said contract logistics, last-mile deliveries and brokerage will be the areas of focus for acquisitions.
Contract logistics is attractive to leverage a 2014 acquisition, and last-mile targets will add density to that business segment. Brokerage acquisitions are being targeted because “bigger is better” in that sector, he said.
“We want to get lane density so that we are the first call when someone wants to find capacity,” he said.
Earnings this year before interest, taxes, depreciation and amortization were pegged at $300 million.
The brokerage, logistics and expedited operator’s net loss, including the charge related to stock conversion, was $51.5 million, or 77 cents per share.
Fourth-quarter revenue more than doubled to $664.2 million at the transportation unit that includes brokerage, last-mile and forwarding business. Income before interest and taxes more than tripled to $10.7 million.
The contract business operating as New Breed Logistics contributed income before taxes and interest of $13.1 million.
