XPO Logistics Posts Smaller Loss, Purchases New Breed Logistics
XPO Logistics posted a smaller net loss in the second quarter of the year compared to a year ago, while announcing an acquisition along with the completion of an earlier purchase.


XPO Logistics posted a smaller net loss in the second quarter of the year compared to a year ago, while announcing an acquisition along with the completion of an earlier purchase.
The Connecticut-based company reported a net loss of $13.8 million for the quarter, compared to $17.4 million. The net loss available to common shareholders was $14.5 million, or a loss of 28 cents per diluted share, compared with a net loss of $18.1 million, or a loss of $1.00 per diluted share, for the same period in 2013.
Total gross revenue increased 323.8% year-over-year to $581 million and net revenue increased 530.1% to $121.9 million.
For the six months ended June 30, XPO reported total revenue of $863.4 million, a 243.9% increase from the first six months of 2013. Net loss was $41.9 million for the first six months of 2014, compared with net loss of $31.9 million for the same period last year.
XPO raised its full year 2014 financial target for an annual revenue run of more than $3 billion by December 31, up from a prior target of $2.75 billion.
The company's freight brokerage business generated total gross revenue of $493.4 million for the quarter, a 417.4% increase from the same period in 2013. Expedited transportation business generated total gross revenue of $36.2 million for the quarter, a 37% increase from the same time a year earlier. The freight forwarding business generated total gross revenue of $54.2 million for the quarter, a 180.2% increase from the same period in 2013.
In June, the company rebranded two of its core businesses with the Express-1 expedited transportation business now operating as XPO Express, and the 3PD Inc. last mile business now operating as XPO Last Mile.
XPO Logistics also said Tuesday it has entered into a definitive agreement to acquire New Breed Holding Co., a provider of non-asset based, complex, technology-enabled contract logistics for blue chip customers.
Cost of the New Breed transaction is $615 million.
New Breed had revenue of approximately $597 million and adjusted earnings of approximately $77 million for the 12 months ended June 30. The transaction is expected to close in the third quarter of 2014.
Founded in 1968, New Breed became focused on technology-oriented supply chains under Louis DeJoy, who became chairman and chief executive officer in 1983, according to XPO. It said DeJoy transformed New Breed from a regional business with 10 employees into a provider of contract logistics services. Once the transaction is complete, DeJoy will lead XPO’s contract logistics business as its chief executive from the current operations center in High Point, N.C.
New Breed specializes in services for multi-channel distribution, reverse logistics, transportation management, freight bill audit and payment, lean manufacturing support, aftermarket support and supply chain optimization, according to XPO.
XPO said it will gain entry into the most desirable sector of contract logistics; customized services with solid margins, high contractual revenue renewal rates and low cyclicality. New Breed’s revenue renewal rate for the past three years has been approximately 99%, according to the company.
“We’ll be able to deliver integrated, end-to-end logistics solutions for any company, of any size, with any combination of transportation needs,” said Bradley Jacobs, chairman and chief executive officer of XPO Logistics. “We’ll gain leadership in one of the most financially attractive sectors of contract logistics, and we’ll use our new platform to engage customers in our broader offering, just as we’ve done over the past 12 months with our acquisitions of 3PD, NLM and Pacer. When the transaction is complete, we’ll have an IT workforce of more than twice its current size, and about 10,000 employees at over 200 locations.”
On Monday, the company completed its acquisition of Atlantic Central Logistics for a cash purchase price of $36.5 million.
Founded in 1980, ACL provides last mile logistics through approximately 200 contracted carriers and 160 employees at 14 East Coast locations.
“The acquisition of ACL expands our presence in the high-growth e-commerce sector, where we manage more last-mile deliveries of heavy goods than any other logistics provider, said, Karl Meyer, chief executive officer of XPO Last Mile. “ACL’s delivery patterns complement those of XPO Last Mile, allowing us to leverage capacity as we increase our volume.
More details on these announcements are on the XPO Logistics website.
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