XPO Logistics has announced its financial results for the third quarter of 2014. It reported total gross revenue of $662.47m, an increase of 241.5% year-on-year. The company also recorded an operating loss of $13.64m for the quarter, an improvement compared to a loss of $18.42m for the same period of 2013. Accordingly XPO Logistics’ margin stood at -2.06%.
XPO Logistics’ revenue growth was the result of investment in the company through the acquisitions of New Breed, Pacer and ACL. The company also invested heavily in its cold starts over the year and achieved organic growth of 48% across its existing businesses. XPO Logistics’ operating loss reflects this high level of investment.
Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics said, “The third quarter was transformational for us on many fronts. We raised $1.2bn of capital to fund our growth. We generated a net revenue increase of more than 400%, reflecting the benefit of acquisitions and 48% organic growth. And we turned in our strongest adjusted EBITDA performance to date, $24m, which reflects less than a month of owning New Breed, our largest acquisition so far. We delivered 58% organic growth in our freight brokerage business, and more than doubled the revenue run rate of our brokerage cold-starts in 12 months to $250m.”
He went on, “All of our acquisitions are on track and thriving. In September, we gained critical mass when we acquired New Breed. Our contract logistics business is off to a great start, ahead of plan in its first month out of the gate. In July, we acquired ACL, which recently had a big e-commerce customer win as part of XPO Last Mile. And in intermodal, our team is doing a very good job of meeting shipper requirements in a congested rail market.”
Jacobs concluded, “We’ve built a range of technology-based supply chain services that has grabbed the attention of shippers in North America. And we’re currently in discussions with a number of attractive acquisition prospects in a very active pipeline. Our targets are primarily in our existing lines of business, including contract logistics, last mile and freight brokerage.”
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