Roadrunner Loss Widens Amid Financial Probe
The asset-light trucking and logistics provider Roadrunner Transportation Systems Inc. reported its first quarter operating results on Monday that showed a bigger loss than it reported a year earlier as it also said its now in compliance with government reporting rules.

The asset-light trucking and logistics provider Roadrunner Transportation Systems Inc. reported its first quarter operating results on Monday that showed a bigger loss than it reported a year earlier as it also said its now in compliance with government reporting rules.
Its net loss increased to $23.6 million for the first quarter of 2018, compared to a net loss of $19.9 million for the first quarter of 2017. According to the company, this was primarily due to higher interest costs related to the company’s preferred stock issued in May 2017.
Revenues for the quarter ended March 31 totaled $570, a 19% increase from $478.9 million for the quarter a year earlier.
“Comparable quarter to quarter operating results in our truckload and express services and Ascent segments improved significantly in the first quarter of 2018 versus 2017,” said Curt Stoelting, CEO. “We expect positive trends in these segments to continue in 2018. As part of our investment in turning around the LTL segment, we expected to incur higher operating losses in the first quarter of 2018 than in the prior year.”
According to him, the company’s less-than-truckload management team is working to improve the quality of freight and the density within the company’s key lanes as well as improving its service and operating metrics.
“By accelerating our focus on reducing our service area and eliminating unprofitable freight, we expect a reduction in 2018 second quarter revenue as compared to the prior year second quarter, Stoelting said. “We expect a sequential quarterly improvement in LTL operating results in the 2018 second quarter and we anticipate improvements in operating trends in the second half of 2018 compared to the first half.”
Earlier this year the company announced the integration and rebranding of several operating companies, including Roadrunner Truckload Plus, into Ascent Global Logistics. More recently the company announced the integration of its time definite ground and air transportation operations. Also the company restructured its temperature controlled truckload business by completing the integration of multiple operating companies into one business unit.
These latest numbers follow Roadrunner releasing full 2017 numbers about two weeks earlier in which it reported a net loss was $91.2 million compared to a net loss of $360.3 million all of 2016.
According to Roadrunner, the company is now current when it comes to reporting requirements from the Securities and Exchange Commission.
Earlier, Roadrunner said it discovered significant financial errors made by the company’s previous management team when it came to its accounting practices and has been working clear up past financial statements.
The matter has gotten the attention of the U.S. Justice Department. So far, at least two former Roadrunner executives have been indicted for their alleged role in an accounting fraud scheme.
Related: 5 More Fleets Report Improved 1st Quarter Results
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