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Background and Strategy We were founded in 1986 as a provider of expedited freight transportation, primarily using two-person driver teams in transcontinental lanes. Since that time, we have grown from 25 tractors to approximately 2,300 tractors and expanded our services to include a wide array of transportation and logistics services for our customers.
Operating margin is thin at 0.25%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.9%, essentially flat. Margins also contracted 3.7pp. This is a business that needs a catalyst.
ROIC dropped from 4.73% to 0.24%, capital efficiency is deteriorating. Negative free cash flow of -$34M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$1.20B
▲ +2.9% YoY
Net Income (TTM)
$5M
▼ -79.8% YoY
Op. Margin
0.13%
▼ -3.7pp YoY
ROIC
0.17%
▼ -4.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$8M
▼ -12.8% YoY
Op. Cash Flow (TTM)
$118M
▼ -7.5% YoY
Net Debt
$281M
Cash & Equiv.
$11M
5Y CAGR: +6.8%
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