XPO Logistics has announced its financial results for the full year 2014. It reported total revenue of $2.36bn, a 235.55% increase from 2013. The company also recorded an operating income loss of $40.9m, an improvement from the loss of $52.3 recorded in 2013 on a revenue of just $702.3m. Accordingly XPO Logistics’ margin stood at -1.74%.
The year-on-year growth in XPO Logistics’ revenue was primarily the result of the acquisitions of Pacer International, ACL and New Breed Logistics, but the company also stated that it saw organic growth of 45%.
The operating loss was primarily the result of the $23.6m costs associated with the acquisition and rationalisation of Pacer International, ACL and New Breed Logistics during 2015. A $40.9m accounting cost related to the beneficial conversion features of the $700m equity placement in September 2014 and debt commitment fees of $14.4m also contributed to the result.
Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics said, “We built broad-based momentum across our operations with significant strength in our truck brokerage and contract logistics businesses, and a sales force focused on cross-selling our capabilities in the fastest-growing areas of logistics. Our infrastructure, which we put in place to support a much larger organization, is beginning to return significant operating leverage.”
Jacobs continued, “We set high expectations for 2014 and we delivered. Now we’re executing toward our 2015 targets of at least $5.25bn of revenue run rate and $300m of EBITDA run rate by year-end. We’ve opened two cold-starts in the last two months, and we recently completed our purchase of UX Specialized Logistics. We’re primed to capitalize on our acquisition pipeline with $1.5bn of fresh powder. We’re ahead of plan, and we’re still in the early stages of our growth.”
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