Roadrunner Transportation Systems (NYSE:RRTS), a transportation and logistics service provider, priced its IPO on May 12 at $14 per share, the low end of its expected range.
Business Overview (from prospectus)
We are a leading non-asset based transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload and intermodal brokerage, and domestic and international air. Following the GTS merger, third-party logistics and transportation management solutions will be added to our services. We utilize a proprietary web-enabled technology system and a broad third-party network of transportation providers to serve a diverse customer base in terms of end market focus and annual freight expenditures. Our third-party transportation providers consist of individuals or small teams that own or lease their own over-the-road transportation equipment and provide us with dedicated freight capacity (which we refer to as independent contractors), and asset-based, over-the-road transportation companies that provide us with freight capacity under non-exclusive contractual arrangements (which we refer to as purchased power). Across all transportation modes, from pickup to delivery, we leverage relationships with a diverse group of over 9,000 third-party carriers to provide scalable capacity and reliable, customized service to our more than 35,000 customers in North America. Although we service large national accounts, we primarily focus on small to mid-size shippers, which we believe represent an expansive and underserved market.
Offering: 10.6 million shares at $14 per share. Net proceeds of approximately $156 million will be used for debt repayment.
Revenues decreased $87.0 million to $450.4 million during 2009 from $537.4 million during 2008...Purchased transportation costs decreased by $78.0 million to $354.1 million during 2009 from $432.1 million during 2008...Other operating expenses decreased to $80.7 million during 2009 from $96.0 million during 2008...Operating income increased by $5.9 million to $13.2 million during 2009 from $7.3 million in 2008...Net loss decreased by $2.1 million to $1.8 million during 2009 from a net loss of $3.8 million during 2008...
We compete in the North American transportation and logistics services sector. Our marketplace is extremely competitive and highly fragmented. We compete with a large number of other non-asset based logistics companies, asset-based carriers, integrated logistics companies, and third-party freight brokers, many of whom have larger customer bases and more resources than we do. According to Transport Topics, a transportation industry publication, we are one of the 20 largest LTL providers in North America. Based on our industry knowledge, we believe that we are the largest non-asset based provider of LTL services in North America in terms of revenue.
Active participants in our markets include global asset-based integrated logistics companies such as FedEx Corporation (NYSE:FDX) and United Parcel Service, Inc., (NYSE:UPS) against whom we compete in all of our service lines; asset-based freight haulers, such as Arkansas Best Corporation (ABFS), Con-Way, Inc. (NYSE:CNW), Old Dominion Freight Line Inc. (NASDAQ:ODFL), and YRC Worldwide, Inc. (NASDAQ:YRCW), against whom we compete in our core LTL and TL service offerings; non-asset based freight brokerage companies, such as C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) and Landstar System, Inc. (NASDAQ:LSTR), against whom we compete in our core LTL and TL service offerings.