Revenues for the third quarter of 2016 rose 7 percent year-over-year, which Roadrunner CEO Mark DiBlasi said was largely related to the company’s ground expedite business.
Roadrunner Transportation Systems, Inc., an asset-light transportation and logistics services provider based in Cudahy, Wis., reported a 37.1 percent year-over-year surge in net income for the third quarter of 2016 to $7.9 million.
Revenues for the quarter rose 7 percent from the third quarter of 2015 to $532.2 million, which Roadrunner CEO Mark DiBlasi said was largely driven by the company’s ground expedite business, in which it receives a management fee versus transportation or brokerage margins.
“Our remaining transportation businesses, when compared to the prior year, are experiencing continuing declines in freight rates and volumes across most end markets and lower fuel surcharge revenue, which declined by $7.4 million quarter-over-quarter,” DiBlasi said.
Meanwhile, operating income for the quarter, which included a $4.9 million gain from the sale of a non-core business and $2.1 million of downsizing costs, surged 31.6 percent year-over-year to $18.9 million, Roadrunner said.
Roadrunner said investors should not rely on its previously issued guidance for the fiscal year ending Dec. 31, 2016. “We will not provide guidance until we have more clarity that market conditions and uncertainties have stabilized,” the company said.
The investment bank Stifel lowered its earnings per share estimates for Roadrunner for 2016, 2017 and 2018 from $0.54, $0.95 and $1.02 to $0.42, $0.75 and $0.91, respectively.
Roadrunner’s net income, revenues rise in Q3
