Echo Global Logistics Reports Q2 2014 Results; Revenue Up 36% Year Over Year
Echo Global Logistics, Inc., a leading provider of technology-enabled transportation and supply chain management services, reported today financial results for the quarter ended June 30, 2014
"Echo's growth model delivered outstanding results as we completed another record quarter of revenue and profitability, driven by strong organic growth and the impact of our recently completed acquisitions," stated Doug Waggoner, Chief Executive Officer of Echo. "We continue to focus on delivering the highest levels of customer service to our clients which is driving our success in the market," said Waggoner. He continued, "We believe this success is fueling our ability to continue to expand our impressive carrier network and provide reliable access to capacity in this evolving market."
Second Quarter 2014 Highlights
Total revenue increased 36% to $305.1 million from the second quarter of 2013
Non-GAAP EBITDA increased 30% to $11.8 million from the second quarter of 2013*
Non-GAAP net income increased 31% to $5.1 million from the second quarter of 2013*
Non-GAAP fully diluted EPS increased 31% to $0.22 from the second quarter of 2013*
* All non-GAAP financial measures exclude the effects of changes in contingent consideration payable and acquisition-related transaction costs. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS" included in this release.
Summarized financial results and select operating metrics follow:
Raising 2014 Revenue Guidance Again
"We are committed to the long term growth plans discussed during our recent investor day and continue to make investments to drive revenue and profitability," commented Kyle Sauers, Chief Financial Officer of Echo. Sauers continued, "We are seeing strong results from the investments made thus far this year. As a result, we are increasing our revenue guidance for the full year 2014 to be in the range of $1.14 to $1.18 billion, not including the potential impact of any new acquisitions throughout the remainder of the year, and SG&A costs to be in the range of $102 to $105 million."
A conference call, with accompanying presentation slides, will be broadcast live on July 24, 2014 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Doug Waggoner, Chief Executive Officer, Dave Menzel, Chief Operating Officer, and Kyle Sauers, Chief Financial Officer, will host the call. To participate in the call, dial (877) 303-6235 (toll free) or (631) 291-4837 (toll) and reference "Echo Global Logistics." To listen to a live webcast of the call, visit the Echo website at http://ir.echo.com. A replay of the webcast will be available for one year following the live webcast in the Investor Relations section of the Echo website.
Non-GAAP Financial Measures
This release includes the following financial measures defined as "non-GAAP financial measures" by the Securities and Exchange Commission (the "SEC"): Non-GAAP EBITDA, Non-GAAP Operating Income, Non-GAAP EBITDA Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS. We refer to these Non-GAAP financial measures to describe earnings and earnings per share excluding the effects of changes in contingent consideration payable and acquisition-related transaction costs. We believe such measures provide useful information to investors because they provide information about the financial performance of the Company's ongoing business.
Non-GAAP EBITDA, Non-GAAP Operating Income, Non-GAAP EBITDA Margin, Non-GAAP Net Income and Non-GAAP Fully Diluted EPS are used by management in its financial and operational decision-making and evaluation of overall operating performance. These measures may be different from similar measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation to GAAP Operating Income, Operating Margin, Net Income and Fully Diluted EPS" included in this release.
This release contains statements relating to future results. These statements are forward-looking statements under the federal securities laws. We can give no assurance that any future results discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. For a discussion of important factors that could affect our actual results, please refer to our SEC filings, including the "Risk Factors" section of our Form 10-K for the year ended December 31, 2013 we filed with the SEC.