Cudahy-based Roadrunner Transportation Systems Inc. reported a jump in profit and revenues during the third quarter, but the company also withdrew its fiscal guidance for the year citing market conditions and uncertainties.
Net income during the quarter was up 37 percent to $7.9 million and earnings increased from 15 cents to 21 cents per diluted share. Revenue during the quarter increased 7 percent to $532.2 million.
The company attributed the revenue increase primarily to its ground expedite business where it receives a management fee instead of 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,” said Mark DiBlasi, Roadrunner chief executive officer.
While the company’s truckload logistics segment reported a $58.5 million increase in revenue to $310.5 million, the less-than-truckload segment was down $5.2 million to $106.4 million and global solutions was off $10.9 million to $83.3 million.
DiBlasi said truckload logistics is experiencing excess capacity and lower margins while less-than-truckload continues to suffer from weak freight demand in general industrial markets.
The company also said it completed the first step of its annual goodwill impairment analysis and determined the varying value for its less-than-truckload segment exceeded its fair value. The second step, measuring the amount of goodwill impairment, will be completed in the fourth quarter. The company said it could not provide a reasonable estimate of the non-cash goodwill impairment loss it will record.
