Daseke Reports Record Results for Fourth Quarter and Full Year 2021
Daseke, Inc. reported strong financial results for Q4 and full year 2021, driven by effective freight network optimization and an 'Asset-Right' model. Q4 revenue reached $394.3 million, up 17.5% year-over-year, with a net income of $7.1 million or $0.09 per diluted share. Full-year revenue was $1.56 billion, marking a 7.1% increase. Adjusted EBITDA for Q4 rose 25.9% to $49.6 million. The company anticipates 4% to 7% growth in revenues for 2022, alongside potential challenges from rising operational costs.
- Q4 2021 revenue increased by 17.5% to $394.3 million.
- Record full-year net income of $56.0 million, up from $4.1 million in 2020.
- Adjusted EBITDA for full year 2021 reached $223.1 million, a 24.8% increase.
- Cost pressures related to employee compensation and equipment costs.
- Potential for increased operating costs and inflation impacting 2022 outlook.
Freight network optimization and strategic deployment of 'Asset-Right' model into healthy freight rate environment drive solid fourth quarter and full-year results
ADDISON, Texas, Jan. 25, 2022 (GLOBE NEWSWIRE) -- Daseke, Inc. (NASDAQ: DSKE) (“Daseke” or the “Company”), the premier North American transportation solutions specialist dedicated to servicing challenging industrial end-markets, today reported financial results for the fourth quarter and full year ended December 31, 2021 and provided 2022 outlook.
Fourth Quarter 2021 Highlights:
- Revenue of
$394.3 million , up17.5% year-over-year - Net Income of
$7.1 million , or$0.09 per diluted share attributable to common stockholders, compared to$6.1 million in the fourth quarter of 2020 - Adjusted Net Income ex-Aveda of
$13.0 million , or$0.18 per diluted share attributable to common stockholders - Adjusted EBITDA ex-Aveda of
$49.6 million , up25.9% year-over-year - Cash flows from operating activities of
$29.0 million and Free Cash Flow of$20.2 million - Record fourth quarter Operating ratio of
95.2% and Adjusted Operating Ratio ex-Aveda of92.4%
Full Year 2021 Highlights:
- Revenue of
$1.56 billion , up7.1% year-over-year - Record Net Income of
$56.0 million , or$0.77 per diluted share attributable to common stockholders, compared to$4.1 million in 2020 - Adjusted Net Income ex-Aveda of
$77.8 million , or$1.09 per diluted share attributable to common stockholders - Record Adjusted EBITDA ex-Aveda of
$223.1 million , up24.8% year-over-year - Cash flows from operating activities of
$144.7 million and Free Cash Flow of$149.6 million - Record annual Operating ratio of
92.8% and Adjusted Operating Ratio ex-Aveda of90.9%
Management Commentary
"We are pleased to report seasonally strong results for the fourth quarter, as a capstone to a record-breaking year, marked by decisive execution in the backdrop of a strong freight environment," said Jonathan Shepko, Chief Executive Officer of Daseke. "Our unique operating model, coupled with our unrivaled scale and differentiated capabilities, in support of the industrial end markets we service, have enabled our valued customers to more successfully navigate the global supply chain challenges amidst continued tightness within the transportation market. As we look ahead this year, we expect to extend our track record of performance, with a continued emphasis on best-in-class operational execution, while leveraging our 'asset-right' fleet model to drive value for our employees, customers and shareholders."
Fourth Quarter 2021 Financial Results
Total revenue in the fourth quarter of 2021 increased
The measures in this paragraph are presented ex-Aveda to reflect the exit of the Aveda Transportation and Energy Services ("Aveda") business in 2020. Adjusted Net Income was
The changes in net income, Adjusted Net Income ex-Aveda and Adjusted EBITDA ex-Aveda were primarily driven by the sustained improvement in freight rates and our team's ability to redirect assets to the most profitable lanes, the ongoing benefits from fleet rationalization efforts, better than anticipated performance on insurance and claims, and incremental gain on sale of assets. The above improvements were partially offset by cost pressures related to employee compensation, recruiting costs and equipment costs.
Full Year 2021 Financial Results
Total revenue in 2021 increased
The measures in this paragraph are presented ex-Aveda to reflect the exit of that business in 2020. Total revenue in 2021 increased by
The year-over-year increases in each of these critical profitability metrics were achieved by a combination of the previously disclosed revenue drivers, the cost-savings actions undertaken, including transformation initiatives and fleet downsizing efforts, as well as incremental gain on sale of equipment.
Segment Results
Specialized Solutions – During the fourth quarter of 2021, Specialized Solutions revenue increased
The measures in this paragraph are presented ex-Aveda to reflect the exit of that business in 2020. Adjusted operating income in the fourth quarter of 2021 was
The Specialized Solutions segment benefitted from sustained strength in demand and improving freight rates, primarily serving construction, high security cargo and glass, which was partially offset by the normalization of high-margin wind energy revenues versus the fourth quarter of 2020. In addition to the above, the results were augmented by utilization of our asset-right fleet mix to capture additional brokerage opportunities combined with incremental gain on sale of assets.
For the full year 2021, Specialized Solutions revenue decreased
The full-year measures in this paragraph are presented ex-Aveda to reflect the exit of that business in 2020. Total revenue increased by
These improved full-year results were driven by our team's ability to redeploy assets and capture elevated freight rates in the construction, manufacturing, and high-security cargo verticals, combined with improved gain on sale of assets, which more than offset the decrease in high-margin revenues related to 2020, record wind energy activity and inflationary cost pressures including rising driver and employee compensation, along with supply chain disruptions impacting our fleets.
Flatbed Solutions – During the fourth quarter of 2021, Flatbed Solutions revenue increased
Adjusted operating income in the fourth quarter of 2021 was
In 2021, Flatbed Solutions revenue of
Adjusted operating income in 2021 was
These strong full-year results were driven by the strategic redeployment of assets across the network to better support customers and leverage an improving rate environment, combined with enhanced utilization of our asset-light capacity to capture incremental loads and efforts to right-size the fleet, partially offset by inflationary cost headwinds in the form of driver recruitment and retention, driver and employee compensation, in addition to supply chain disruption impacts on our fleet.
Capital Summary
At December 31, 2021, Daseke had cash and cash equivalents of
For the fourth quarter of 2021, net cash provided by operating activities was
2022 Outlook
"We are encouraged by the operational and strategic progress delivered by our entire team in 2021," said Jason Bates, Chief Financial Officer of Daseke. "Looking ahead, we remain optimistic that our internally-driven, operational improvements and industrial end market tailwinds will combine to improve both top-line revenues and bottom-line financial performance in 2022 relative to our 2021 performance. At this time, we expect consolidated year-over-year revenues in 2022 to increase by
Bates continued, "We estimate our 2022 net capital expenditures to be
Conference Call
Daseke will hold a conference call today at 11:00 a.m. Eastern time to discuss its fourth quarter and full-year 2021 results and 2022 outlook. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call with accompanying presentation slides, available on the Company’s website at https://www.daseke.com. Presentation materials will be posted at the time of the call at investor.daseke.com as well. Interested parties may also participate in the call by dialing (855) 242-9918 and entering the passcode 7036134. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company’s website, under the events section.
About Daseke, Inc.
Daseke, Inc. is the premier North American transportation solutions specialist dedicated to servicing challenging industrial end-markets. Daseke offers comprehensive, best-in-class services to a diversified portfolio of many of North America’s most respected industrial shippers. For more information, please visit www.daseke.com.
Use of Non-GAAP Measures
This news release includes non-GAAP financial measures for the Company and its reporting segments, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income, Adjusted Net Income (Loss), Adjusted earnings per share, Adjusted Operating Ratio, Free Cash Flow and net debt. This news release also includes GAAP and non-GAAP measures appended with ex-Aveda, which represent the measure excluding the impact of our Aveda business, which we disposed of in 2020. Although we ceased generating revenues from our Aveda business and completed the wind-down of our Aveda operations in 2020, we continued to recognize income and expenses from our Aveda business in 2021. Such income and expenses relate primarily to workers compensation claims and insurance proceeds.
Please note that the non-GAAP measures described below are not a substitute for, or more meaningful than, net income (loss), cash flows from operating activities, operating income or any other measure prescribed by GAAP, and there are limitations to using non-GAAP measures. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital, tax structure and the historic costs of depreciable assets. Also, other companies in Daseke’s industry may define these non‐GAAP measures differently than Daseke does, and as a result, it may be difficult to use these non‐GAAP measures to compare the performance of those companies to Daseke’s performance. Because of these limitations, these non-GAAP measures should not be considered a measure of the income generated by Daseke’s business or discretionary cash available to it to invest in the growth of its business. Daseke’s management compensates for these limitations by relying primarily on Daseke’s GAAP results and using these non-GAAP measures supplementally.
You can find the reconciliation of these non‐GAAP measures to the nearest comparable GAAP measures in the tables below.
Adjusted EBITDA
Daseke defines Adjusted EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest, (iii) income taxes, and (iv) other material items that management believes do not reflect our core operating performance. Adjusted EBITDA ex-Aveda is defined as Adjusted EBITDA less the Adjusted EBITDA of the Aveda business, which we disposed of in 2020. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue, and Adjusted EBITDA ex-Aveda margin is defined as Adjusted EBITDA ex-Aveda divided by total revenue ex-Aveda.
We have not reconciled non‐GAAP forward-looking measures to their corresponding GAAP measures because certain items that impact these measures are unavailable or cannot be reasonably predicted without unreasonable efforts. In particular, we have not reconciled our expectations as to forward-looking Adjusted EBITDA to net income due to the difficulty in making an accurate projection as to the change in fair value of warrant liability, which will have a significant impact on our GAAP net income; accordingly, a reconciliation of forward-looking Adjusted EBITDA to net income is not available without unreasonable efforts.
The Company’s board of directors and executive management team use Adjusted EBITDA and Adjusted EBITDA ex-Aveda (collectively discussed below as "Adjusted EBITDA Metrics") as key measures of its performance and for business planning. Adjusted EBITDA Metrics assist them in comparing the Company’s operating performance over various reporting periods on a consistent basis because they remove from the Company’s operating results the impact of items that, in their opinion, do not reflect the Company’s core operating performance. Adjusted EBITDA Metrics also allow the Company to more effectively evaluate its operating performance by comparing the results of operations against its peers without regard to its or its peers’ financing method or capital structure. The Company’s method of computing Adjusted EBITDA Metrics is substantially consistent with that used in its debt covenants and also is routinely reviewed by its executive management for that purpose. The Company believes its presentation of Adjusted EBITDA Metrics is useful because it provides investors and industry analysts the same information that the Company uses internally for purposes of assessing its core operating performance.
Adjusted Net Income (Loss) and Adjusted Earnings Per Share
Daseke defines Adjusted Net Income (Loss) as net income (loss) adjusted for material items that management believes do not reflect our core operating performance. Daseke defines Adjusted Net Income (Loss) per share as Adjusted Net Income (Loss) divided by the weighted average number of shares of common stock outstanding during the period under the two-class method.
The Company’s board of directors and executive management team use these measures as key measures of its performance and for business planning. These measures assist them in comparing its operating performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that, in its opinion, do not reflect the Company’s core operating performance. The Company believes its presentation of these measures are useful because they provide investors and industry analysts the same information that it uses internally for purposes of assessing its core operating performance.
Adjusted Operating Income (Loss) and Adjusted Operating Ratio
The Company uses Adjusted Operating Income (Loss) and Adjusted Operating Ratio as a supplement to its GAAP results in evaluating certain aspects of its business, as described below. The Company defines Adjusted Operating Income (Loss) as (a) total revenue less (b) Adjusted Operating Expenses. The Company defines Adjusted Operating Expenses as total operating expenses less material items that management believes do not reflect our core operating performance. The Company defines Adjusted Operating Ratio as Adjusted Operating Expenses, as a percentage of total revenue. The Company defines previously defined terms appended with ex-Aveda as their previously defined term excluding the impact of the Aveda business, which we disposed of in 2020.
The Company’s board of directors and executive management team view these non-GAAP measures, and their key drivers of revenue quality, growth, expense control and operating efficiency, as very important measures of the Company’s performance. These measures assist them in comparing the Company’s performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that, in its opinion, do not reflect the Company’s core operating performance. The Company believes its presentation of these non-GAAP measures are useful because they provide investors and industry analysts the same information that it uses internally for purposes of assessing its core operating profitability.
Free Cash Flow
Daseke defines Free Cash Flow as net cash provided by operating activities less purchases of property and equipment, plus proceeds from sale of property and equipment, as such amounts are shown on the face of the Statements of Cash Flows.
The Company’s board of directors and executive management team use Free Cash Flow to assess the Company’s liquidity and ability to repay maturing debt, fund operations and make additional investments. The Company believes Free Cash Flow provides useful information to investors because it is an important indicator of the Company’s liquidity, including its ability to reduce net debt, make strategic investments and repurchase stock.
Net Debt
Daseke defines net debt as total debt less cash and cash equivalents. The Company’s board of directors and executive management team use net debt to help assess the Company’s liquidity and evaluate and plan for future liquidity needs. The Company believes that the presentation of net debt is useful to investors because it provides additional information regarding the Company’s overall liquidity, financial flexibility, capital structure and leverage.
Management’s view of Core Operating Performance
In the non-GAAP measures discussed above, management refers to certain material items that management believes do not reflect the Company’s core operating performance, which management believes represent its performance in the ordinary, ongoing and customary course of its operations. Management views the Company’s core operating performance as its operating results excluding the impact of items including, but not limited to, stock-based compensation, impairments, amortization of intangible assets, restructuring, business transformation costs, and severance. Management believes excluding these items enables investors to evaluate more clearly and consistently the Company’s core operational performance in the same manner that management evaluates its core operational performance.
Forward‐Looking Statements
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “should,” “could,” “would,” “forecast,” “seek,” “target,” “predict,” and “potential,” the negative of these terms, or other comparable terminology. Projected financial information, including our guidance outlook, are forward-looking statements. Forward-looking statements may also include statements about the Company’s goals, including its restructuring actions and cost reduction initiatives; the Company’s financial strategy, liquidity and capital required for its business strategy and plans; the Company’s competition and government regulations; general economic conditions; and the Company’s future operating results.
These forward-looking statements are based on information available as of the date of this release, and current expectations, forecasts and assumptions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that the Company anticipates. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements.
The effect of the COVID-19 pandemic may remain prevalent for a significant period of time and may adversely affect the Company’s business, results of operations and financial condition even after the COVID-19 pandemic has subsided. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous evolving factors and future developments that it cannot predict. There are no comparable recent events that provide guidance as to the effect the COVID-19 global pandemic may have, and, as a result, the ultimate impact of the pandemic is highly uncertain and subject to change. Additionally, the Company will regularly evaluate its capital structure and liquidity position. From time to time and as opportunities arise, the Company may access the debt capital markets and modify its debt arrangements to optimize its capital structure and liquidity position.
Forward-looking statements are subject to risks and uncertainties (many of which are beyond our control) that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, general economic and business risks, such as downturns in customers’ business cycles and disruptions in capital and credit markets, the impact to the Company’s business and operations resulting from the COVID-19 pandemic, the Company’s ability to execute and realize all of the expected benefits of its integration, business improvement and comprehensive restructuring plans, the Company’s ability to complete recent or future divestitures successfully, the Company’s ability to adequately address downward pricing and other competitive pressures, driver shortages and increases in driver compensation or owner-operator contracted rates, loss of senior management or key operating personnel, our ability to realize intended benefits from its recent or future acquisitions, seasonality and the impact of weather and other catastrophic events, fluctuations in the price or availability of diesel fuel, increased prices for, or decreases in the availability of, new revenue equipment and decreases in the value of used revenue equipment, the Company’s ability to generate sufficient cash to service all of the Company’s indebtedness, restrictions in its existing and future debt agreements, increases in interest rates, changes in existing laws or regulations, including environmental and worker health safety laws and regulations and those relating to tax rates or taxes in general, the impact of governmental regulations and other governmental actions related to the Company and its operations, litigation and governmental proceedings, and insurance and claims expenses. You should not place undue reliance on these forward-looking statements. For additional information regarding known material factors that could cause our actual results to differ from those expressed in forward-looking statements, please see Daseke’s filings with the Securities and Exchange Commission, available at www.sec.gov, including Daseke’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, particularly the section titled “Risk Factors”.
Investor Relations:
Alpha IR Group
Joseph Caminiti or Chris Hodges
312-445-2870
DSKE@alpha-ir.com
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Condensed Statements of Operations | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (In millions, except share and per share data) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Revenues: | |||||||||||||||||||
| Company freight | $ | 154.4 | $ | 154.1 | $ | 629.7 | $ | 676.8 | |||||||||||
| Owner operator freight | 121.2 | 101.8 | 486.5 | 408.9 | |||||||||||||||
| Brokerage | 71.9 | 49.5 | 269.0 | 234.3 | |||||||||||||||
| Logistics | 10.3 | 8.6 | 39.2 | 37.4 | |||||||||||||||
| Fuel surcharge | 36.5 | 21.6 | 132.4 | 96.7 | |||||||||||||||
| Total revenue | 394.3 | 335.6 | 1,556.8 | 1,454.1 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Salaries, wages and employee benefits | 97.6 | 93.8 | 378.3 | 399.4 | |||||||||||||||
| Fuel | 28.2 | 20.2 | 107.3 | 87.3 | |||||||||||||||
| Operations and maintenance | 35.7 | 32.7 | 143.8 | 169.1 | |||||||||||||||
| Purchased freight | 154.3 | 117.1 | 598.5 | 491.4 | |||||||||||||||
| Administrative and other expenses | 42.2 | 41.8 | 144.8 | 155.2 | |||||||||||||||
| Depreciation and amortization | 21.4 | 26.9 | 88.1 | 98.3 | |||||||||||||||
| Gain on disposition of property and equipment | (4.0 | ) | (3.0 | ) | (17.1 | ) | (6.9 | ) | |||||||||||
| Impairment | — | 2.0 | — | 15.4 | |||||||||||||||
| Restructuring charges | 0.1 | 0.9 | 0.3 | 9.5 | |||||||||||||||
| Total operating expenses | 375.5 | 332.4 | 1,444.0 | 1,418.7 | |||||||||||||||
| Income from operations | 18.8 | 3.2 | 112.8 | 35.4 | |||||||||||||||
| Other expense (income) | 4.3 | (2.5 | ) | 30.8 | 31.5 | ||||||||||||||
| Income before income taxes | 14.5 | 5.7 | 82.0 | 3.9 | |||||||||||||||
| Income tax expense (benefit) | 7.4 | (0.4 | ) | 26.0 | (0.2 | ) | |||||||||||||
| Net income | 7.1 | 6.1 | 56.0 | 4.1 | |||||||||||||||
| Net income | $ | 7.1 | $ | 6.1 | $ | 56.0 | $ | 4.1 | |||||||||||
| Less dividends to Series A convertible preferred stockholders | (1.2 | ) | (1.2 | ) | (5.0 | ) | (4.9 | ) | |||||||||||
| Net income (loss) attributable to common stockholders | $ | 5.9 | $ | 4.9 | $ | 51.0 | $ | (0.8 | ) | ||||||||||
| Income (loss) per common share: | |||||||||||||||||||
| Basic | $ | 0.09 | $ | 0.08 | $ | 0.79 | $ | (0.01 | ) | ||||||||||
| Diluted | $ | 0.09 | $ | 0.07 | $ | 0.77 | $ | (0.01 | ) | ||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 62,489,277 | 65,023,174 | 63,744,456 | 64,775,275 | |||||||||||||||
| Diluted | 64,885,771 | 66,149,361 | 65,409,258 | 64,775,275 | |||||||||||||||
| Dividends declared per Series A convertible preferred share | $ | 1.91 | $ | 1.91 | $ | 7.63 | $ | 7.63 | |||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||
| Consolidated Condensed Balance Sheets | ||||||||||
| (Unaudited) | ||||||||||
| (In millions) | ||||||||||
| December 31, | ||||||||||
| 2021 | 2020 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 147.5 | $ | 176.2 | ||||||
| Accounts receivable, net | 172.3 | 154.4 | ||||||||
| Other current assets | 30.0 | 34.5 | ||||||||
| Total current assets | 349.8 | 365.1 | ||||||||
| Property and equipment, net | 397.7 | 402.7 | ||||||||
| Goodwill and intangible assets, net | 227.0 | 233.9 | ||||||||
| Other long-term assets | 112.6 | 125.2 | ||||||||
| Total assets | $ | 1,087.1 | $ | 1,126.9 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 14.7 | $ | 16.5 | ||||||
| Accrued expenses and other liabilities | 43.6 | 35.7 | ||||||||
| Current portion of long-term debt | 55.5 | 54.0 | ||||||||
| Other current liabilities | 98.1 | 84.5 | ||||||||
| Total current liabilities | 211.9 | 190.7 | ||||||||
| Long-term debt, net of current portion | 531.4 | 618.6 | ||||||||
| Other long-term liabilities | 167.8 | 178.8 | ||||||||
| Total liabilities | 911.1 | 988.1 | ||||||||
| Stockholders’ equity | 176.0 | 138.8 | ||||||||
| Total liabilities and stockholders’ equity | $ | 1,087.1 | $ | 1,126.9 | ||||||
| Daseke, Inc. and Subsidiaries | ||||||||||
| Consolidated Condensed Statements of Cash Flow | ||||||||||
| (Unaudited) | ||||||||||
| (In millions) | ||||||||||
| Years Ended December 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Net cash provided by operating activities | $ | 144.7 | $ | 144.9 | ||||||
| Net cash provided by investing activities | 4.9 | 31.6 | ||||||||
| Net cash used in financing activities | (178.2 | ) | (96.4 | ) | ||||||
| Effect of exchange rates on cash and cash equivalents | (0.1 | ) | 0.4 | |||||||
| Net increase (decrease) in cash and cash equivalents | $ | (28.7 | ) | $ | 80.5 | |||||
| Property and equipment acquired with debt or finance lease obligations | $ | 64.7 | $ | 58.3 | ||||||
| Property and equipment sold for notes receivable | $ | 0.5 | $ | 0.3 | ||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||
| Reconciliation of net cash provided by operating activities to Free Cash Flow | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Net cash provided by operating activities | $ | 29.0 | $ | 22.5 | $ | 144.7 | $ | 144.9 | ||||||||||||
| Purchases of property and equipment | (19.5 | ) | (19.2 | ) | (53.7 | ) | (37.2 | ) | ||||||||||||
| Proceeds from sale of property and equipment | 10.7 | 16.8 | 58.6 | 68.8 | ||||||||||||||||
| Free Cash Flow | $ | 20.2 | $ | 20.1 | $ | 149.6 | $ | 176.5 | ||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||
| Reconciliation of total debt to net debt | ||||||||||
| (Unaudited) | ||||||||||
| (In millions) | ||||||||||
| As of December 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Term Loan Facility | $ | 397.0 | $ | 483.5 | ||||||
| Equipment term loans | 169.0 | 164.9 | ||||||||
| Finance lease obligations | 28.5 | 31.3 | ||||||||
| Total debt | 594.5 | 679.7 | ||||||||
| Less: cash and cash equivalents | (147.5 | ) | (176.2 | ) | ||||||
| Net debt | $ | 447.0 | $ | 503.5 | ||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||
| Supplemental Information: Specialized Solutions | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (In millions, except rate per mile and revenue per tractor) | |||||||||||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||||||||||
| 2021 | 2020 | Increase (Decrease) | |||||||||||||||||||||||||
| $ | % | $ | % | $ | % | ||||||||||||||||||||||
| REVENUE(1): | |||||||||||||||||||||||||||
| Company freight | $ | 115.0 | 52.2 | $ | 112.1 | 57.1 | $ | 2.9 | 2.6 | ||||||||||||||||||
| Owner operator freight | 40.7 | 18.5 | 33.8 | 17.2 | 6.9 | 20.4 | |||||||||||||||||||||
| Brokerage | 37.5 | 17.0 | 31.9 | 16.2 | 5.6 | 17.6 | |||||||||||||||||||||
| Logistics | 9.1 | 4.1 | 8.1 | 4.1 | 1.0 | 12.3 | |||||||||||||||||||||
| Fuel surcharge | 18.0 | 8.2 | 10.6 | 5.4 | 7.4 | 69.8 | |||||||||||||||||||||
| Total revenue | 220.3 | 100.0 | 196.5 | 100.0 | 23.8 | 12.1 | |||||||||||||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||||||||||||
| Total operating expenses | 203.6 | 92.4 | 182.3 | 92.8 | 21.3 | 11.7 | |||||||||||||||||||||
| Operating ratio | 92.4 | % | 92.8 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio | 91.7 | % | 92.8 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio ex-Aveda | 90.1 | % | 92.8 | % | |||||||||||||||||||||||
| INCOME FROM OPERATIONS | $ | 16.7 | 7.6 | $ | 14.2 | 7.2 | $ | 2.5 | 17.6 | ||||||||||||||||||
| OPERATING STATISTICS: | |||||||||||||||||||||||||||
| Company miles | 35.3 | 37.8 | (2.5 | ) | (6.6 | ) | |||||||||||||||||||||
| Owner operator miles | 11.3 | 11.5 | (0.2 | ) | (1.7 | ) | |||||||||||||||||||||
| Total miles (in millions)(2) | 46.6 | 49.3 | (2.7 | ) | (5.5 | ) | |||||||||||||||||||||
| Rate per mile | $ | 3.34 | $ | 2.96 | $ | 0.38 | 12.9 | ||||||||||||||||||||
| Rate per mile ex-Aveda | $ | 3.34 | $ | 2.96 | $ | 0.38 | 12.9 | ||||||||||||||||||||
| Revenue per tractor | $ | 66,800 | $ | 59,100 | $ | 7,700 | 13.0 | ||||||||||||||||||||
| Revenue per tractor ex-Aveda | $ | 66,800 | $ | 59,100 | $ | 7,700 | 13.0 | ||||||||||||||||||||
| Company-operated tractors, at quarter-end | 1,819 | 1,960 | (141 | ) | (7.2 | ) | |||||||||||||||||||||
| Owner-operated tractors, at quarter-end | 507 | 501 | 6 | 1.2 | |||||||||||||||||||||||
| Number of trailers, at quarter-end | 7,059 | 7,324 | (265 | ) | (3.6 | ) | |||||||||||||||||||||
| Company-operated tractors, average for the quarter | 1,822 | 1,969 | (147 | ) | (7.5 | ) | |||||||||||||||||||||
| Owner-operated tractors, average for the quarter | 509 | 500 | 9 | 1.8 | |||||||||||||||||||||||
| Total tractors, average for the quarter | 2,331 | 2,469 | (138 | ) | (5.6 | ) | |||||||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company’s consolidated results. | |||||||||||||||||||||||||||
| (2) Miles are estimated based on information received as the date of filing. Miles may change quarter to quarter when final information is received from each operating segment. | |||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||
| Supplemental Information: Specialized Solutions | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (In millions, except rate per mile and revenue per tractor) | |||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||
| 2021 | 2020 | Increase (Decrease) | |||||||||||||||||||||||||
| $ | % | $ | % | $ | % | ||||||||||||||||||||||
| REVENUE(1): | |||||||||||||||||||||||||||
| Company freight | $ | 460.0 | 52.7 | $ | 495.6 | 55.4 | $ | (35.6 | ) | (7.2 | ) | ||||||||||||||||
| Owner operator freight | 158.6 | 18.1 | 152.5 | 17.1 | 6.1 | 4.0 | |||||||||||||||||||||
| Brokerage | 157.1 | 18.0 | 165.6 | 18.5 | (8.5 | ) | (5.1 | ) | |||||||||||||||||||
| Logistics | 34.1 | 3.9 | 34.5 | 3.9 | (0.4 | ) | (1.2 | ) | |||||||||||||||||||
| Fuel surcharge | 64.2 | 7.3 | 45.5 | 5.1 | 18.7 | 41.1 | |||||||||||||||||||||
| Total revenue | 874.0 | 100.0 | 893.7 | 100.0 | (19.7 | ) | (2.2 | ) | |||||||||||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||||||||||||
| Total operating expenses | 788.2 | 90.2 | 840.4 | 94.0 | (52.2 | ) | (6.2 | ) | |||||||||||||||||||
| Operating ratio | 90.2 | % | 94.0 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio | 89.5 | % | 91.2 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio ex-Aveda | 89.0 | % | 90.0 | % | |||||||||||||||||||||||
| INCOME FROM OPERATIONS | $ | 85.8 | 9.8 | $ | 53.3 | 6.0 | $ | 32.5 | 61.0 | ||||||||||||||||||
| OPERATING STATISTICS: | |||||||||||||||||||||||||||
| Company miles | 148.1 | 155.2 | (7.1 | ) | (4.6 | ) | |||||||||||||||||||||
| Owner operator miles | 47.6 | 49.7 | (2.1 | ) | (4.2 | ) | |||||||||||||||||||||
| Total miles (in millions)(2) | 195.7 | 204.9 | (9.2 | ) | (4.5 | ) | |||||||||||||||||||||
| Rate per mile | $ | 3.16 | $ | 3.16 | $ | (0.00 | ) | (0.1 | ) | ||||||||||||||||||
| Rate per mile ex-Aveda | $ | 3.16 | $ | 3.03 | $ | 0.13 | 4.3 | ||||||||||||||||||||
| Revenue per tractor | $ | 260,900 | $ | 224,300 | $ | 36,600 | 16.3 | ||||||||||||||||||||
| Revenue per tractor ex-Aveda | $ | 260,900 | $ | 222,000 | $ | 38,900 | 17.5 | ||||||||||||||||||||
| Company-operated tractors, at period-end | 1,819 | 1,960 | (141 | ) | (7.2 | ) | |||||||||||||||||||||
| Owner-operated tractors, at period-end | 507 | 501 | 6 | 1.2 | |||||||||||||||||||||||
| Number of trailers, at period-end | 7,059 | 7,324 | (265 | ) | (3.6 | ) | |||||||||||||||||||||
| Company-operated tractors, average for the period | 1,863 | 2,255 | (392 | ) | (17.4 | ) | |||||||||||||||||||||
| Owner-operated tractors, average for the period | 508 | 634 | (126 | ) | (19.9 | ) | |||||||||||||||||||||
| Total tractors, average for the period | 2,371 | 2,889 | (518 | ) | (17.9 | ) | |||||||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company’s consolidated results. | |||||||||||||||||||||||||||
| (2) Miles are estimated based on information received as the date of filing. Miles may change quarter to quarter when final information is received from each operating segment. | |||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||
| Supplemental Information: Flatbed Solutions | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (In millions, except rate per mile and revenue per tractor) | |||||||||||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||||||||||
| 2021 | 2020 | Increase (Decrease) | |||||||||||||||||||||||||
| $ | % | $ | % | $ | % | ||||||||||||||||||||||
| REVENUE(1): | |||||||||||||||||||||||||||
| Company freight | $ | 41.2 | 23.4 | $ | 43.9 | 30.9 | $ | (2.7 | ) | (6.2 | ) | ||||||||||||||||
| Owner operator freight | 81.0 | 45.9 | 68.6 | 48.2 | 12.4 | 18.1 | |||||||||||||||||||||
| Brokerage | 34.5 | 19.6 | 17.7 | 12.5 | 16.8 | 94.9 | |||||||||||||||||||||
| Logistics | 1.1 | 0.6 | 0.7 | 0.5 | 0.4 | 57.1 | |||||||||||||||||||||
| Fuel surcharge | 18.6 | 10.5 | 11.2 | 7.9 | 7.4 | 66.1 | |||||||||||||||||||||
| Total revenue | 176.4 | 100.0 | 142.1 | 100.0 | 34.3 | 24.1 | |||||||||||||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||||||||||||
| Total operating expenses | 158.8 | 90.0 | 138.1 | 97.2 | 20.7 | 15.0 | |||||||||||||||||||||
| Operating ratio | 90.0 | % | 97.2 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio | 89.4 | % | 94.9 | % | |||||||||||||||||||||||
| INCOME FROM OPERATIONS | $ | 17.6 | 10.0 | $ | 4.0 | 2.8 | $ | 13.6 | 341.1 | ||||||||||||||||||
| OPERATING STATISTICS: | |||||||||||||||||||||||||||
| Company miles | 16.5 | 20.9 | (4.4 | ) | (21.1 | ) | |||||||||||||||||||||
| Owner operator miles | 32.4 | 34.5 | (2.1 | ) | (6.1 | ) | |||||||||||||||||||||
| Total miles (in millions)(2) | 48.9 | 55.4 | (6.5 | ) | (11.7 | ) | |||||||||||||||||||||
| Rate per mile | $ | 2.50 | $ | 2.03 | $ | 0.47 | 23.1 | ||||||||||||||||||||
| Revenue per tractor | $ | 51,300 | $ | 43,000 | $ | 8,300 | 19.3 | ||||||||||||||||||||
| Company-operated tractors, at quarter-end | 804 | 993 | (189 | ) | (19.0 | ) | |||||||||||||||||||||
| Owner-operated tractors, at quarter-end | 1,567 | 1,598 | (31 | ) | (1.9 | ) | |||||||||||||||||||||
| Number of trailers, at quarter-end | 4,207 | 4,255 | (48 | ) | (1.1 | ) | |||||||||||||||||||||
| Company-operated tractors, average for the quarter | 810 | 1,012 | (202 | ) | (20.0 | ) | |||||||||||||||||||||
| Owner-operated tractors, average for the quarter | 1,570 | 1,603 | (33 | ) | (2.1 | ) | |||||||||||||||||||||
| Total tractors, average for the quarter | 2,380 | 2,615 | (235 | ) | (9.0 | ) | |||||||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company’s consolidated results. | |||||||||||||||||||||||||||
| (2) Miles are estimated based on information received as the date of filing. Miles may change quarter to quarter when final information is received from each operating segment. | |||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||
| Supplemental Information: Flatbed Solutions | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (In millions, except rate per mile and revenue per tractor) | |||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||
| 2021 | 2020 | Increase (Decrease) | |||||||||||||||||||||||||
| $ | % | $ | % | $ | % | ||||||||||||||||||||||
| REVENUE(1): | |||||||||||||||||||||||||||
| Company freight | $ | 178.7 | 25.7 | $ | 191.2 | 33.0 | $ | (12.5 | ) | (6.5 | ) | ||||||||||||||||
| Owner operator freight | 330.1 | 47.5 | 262.1 | 45.3 | 68.0 | 25.9 | |||||||||||||||||||||
| Brokerage | 112.3 | 16.2 | 70.3 | 12.1 | 42.0 | 59.7 | |||||||||||||||||||||
| Logistics | 4.7 | 0.7 | 2.9 | 0.5 | 1.8 | 62.1 | |||||||||||||||||||||
| Fuel surcharge | 68.9 | 9.9 | 52.4 | 9.1 | 16.5 | 31.5 | |||||||||||||||||||||
| Total revenue | 694.7 | 100.0 | 578.9 | 100.0 | 115.8 | 20.0 | |||||||||||||||||||||
| OPERATING EXPENSES(1): | |||||||||||||||||||||||||||
| Total operating expenses | 622.1 | 89.5 | 546.3 | 94.4 | 75.8 | 13.9 | |||||||||||||||||||||
| Operating ratio | 89.5 | % | 94.4 | % | |||||||||||||||||||||||
| Adjusted Operating Ratio | 88.9 | % | 93.2 | % | |||||||||||||||||||||||
| INCOME FROM OPERATIONS | $ | 72.6 | 10.5 | $ | 32.6 | 5.6 | $ | 40.0 | 122.7 | ||||||||||||||||||
| OPERATING STATISTICS: | |||||||||||||||||||||||||||
| Company miles | 74.6 | 96.3 | (21.7 | ) | (22.5 | ) | |||||||||||||||||||||
| Owner operator miles | 135.3 | 141.6 | (6.3 | ) | (4.4 | ) | |||||||||||||||||||||
| Total miles (in millions)(2) | 209.9 | 237.9 | (28.0 | ) | (11.8 | ) | |||||||||||||||||||||
| Rate per mile | $ | 2.42 | $ | 1.91 | $ | 0.51 | 26.7 | ||||||||||||||||||||
| Revenue per tractor | $ | 208,300 | $ | 168,400 | $ | 39,900 | 23.7 | ||||||||||||||||||||
| Company-operated tractors, at period-end | 804 | 993 | (189 | ) | (19.0 | ) | |||||||||||||||||||||
| Owner-operated tractors, at period-end | 1,567 | 1,598 | (31 | ) | (1.9 | ) | |||||||||||||||||||||
| Number of trailers, at period-end | 4,207 | 4,255 | (48 | ) | (1.1 | ) | |||||||||||||||||||||
| Company-operated tractors, average for the period | 852 | 1,118 | (266 | ) | (23.8 | ) | |||||||||||||||||||||
| Owner-operated tractors, average for the period | 1,591 | 1,574 | 17 | 1.1 | |||||||||||||||||||||||
| Total tractors, average for the period | 2,443 | 2,692 | (249 | ) | (9.2 | ) | |||||||||||||||||||||
| (1) Includes intersegment revenues and expenses, as applicable, which are eliminated in the Company’s consolidated results. | |||||||||||||||||||||||||||
| (2) Miles are estimated based on information received as the date of filing. Miles may change quarter to quarter when final information is received from each operating segment. | |||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||
| Reconciliation of Operating Ratio to Adjusted Operating Ratio ex-Aveda | ||||||||||||||||||||||||||||||
| Reconciliation of Operating Income to Adjusted Operating Income ex-Aveda | ||||||||||||||||||||||||||||||
| Reconciliation of Revenue to Revenue ex-Aveda | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Consolidated | Flatbed | Specialized | ||||||||||||||||||||||||||||
| Revenue | $ | 394.3 | $ | 335.6 | $ | 176.4 | $ | 142.1 | $ | 220.3 | $ | 196.5 | ||||||||||||||||||
| Less Aveda revenue | — | — | — | — | ||||||||||||||||||||||||||
| Revenue ex-Aveda | $ | 394.3 | $ | 335.6 | $ | 220.3 | $ | 196.5 | ||||||||||||||||||||||
| Operating expenses | 375.5 | 332.4 | 158.8 | 138.1 | 203.6 | 182.3 | ||||||||||||||||||||||||
| Less Aveda operating expenses | (3.4 | ) | 1.4 | (3.4 | ) | 1.4 | ||||||||||||||||||||||||
| Operating expenses ex-Aveda | 372.1 | 333.8 | 200.2 | 183.7 | ||||||||||||||||||||||||||
| Operating income | $ | 18.8 | $ | 3.2 | $ | 17.6 | $ | 4.0 | $ | 16.7 | $ | 14.2 | ||||||||||||||||||
| Operating income ex-Aveda | $ | 22.2 | $ | 1.8 | $ | 20.1 | $ | 12.8 | ||||||||||||||||||||||
| Operating ratio | 95.2 | % | 99.1 | % | 90.0 | % | 97.2 | % | 92.4 | % | 92.8 | % | ||||||||||||||||||
| Operating ratio ex-Aveda | 94.4 | % | 99.5 | % | 90.9 | % | 93.5 | % | ||||||||||||||||||||||
| Stock based compensation | 3.3 | 1.0 | 0.2 | 0.1 | 0.5 | 0.3 | ||||||||||||||||||||||||
| Impairment | — | 2.0 | — | 2.0 | — | — | ||||||||||||||||||||||||
| Amortization of intangible assets | 1.8 | 1.7 | 0.8 | 0.8 | 1.0 | 0.9 | ||||||||||||||||||||||||
| Other (1) | 2.5 | 5.7 | — | 0.3 | 0.1 | (1.3 | ) | |||||||||||||||||||||||
| Adjusted Operating Expenses | 367.9 | 322.0 | 157.8 | 134.9 | 202.0 | 182.4 | ||||||||||||||||||||||||
| Less Aveda operating expense adjustments | — | 1.4 | — | 1.4 | ||||||||||||||||||||||||||
| Adjusted Operating Expenses ex-Aveda | 364.5 | 322.0 | 198.6 | 182.4 | ||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 26.4 | $ | 13.6 | $ | 18.6 | $ | 7.2 | $ | 18.3 | $ | 14.1 | ||||||||||||||||||
| Adjusted Operating Income ex-Aveda | $ | 29.8 | $ | 13.6 | $ | 21.7 | $ | 14.1 | ||||||||||||||||||||||
| Adjusted Operating Ratio | 93.3 | % | 96.0 | % | 89.4 | % | 94.9 | % | 91.7 | % | 92.8 | % | ||||||||||||||||||
| Adjusted Operating Ratio ex-Aveda | 92.4 | % | 96.0 | % | 90.1 | % | 92.8 | % | ||||||||||||||||||||||
| (1) Other primarily includes business transformation costs, restructuring and severance. | ||||||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||
| Reconciliation of Operating Ratio to Adjusted Operating Ratio ex-Aveda | ||||||||||||||||||||||||||||||
| Reconciliation of Operating Income to Adjusted Operating Income ex-Aveda | ||||||||||||||||||||||||||||||
| Reconciliation of Revenue to Revenue ex-Aveda | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
| Consolidated | Flatbed | Specialized | ||||||||||||||||||||||||||||
| Revenue | $ | 1,556.8 | $ | 1,454.1 | $ | 694.7 | $ | 578.9 | $ | 874.0 | $ | 893.7 | ||||||||||||||||||
| Less Aveda revenue | — | (51.7 | ) | — | (51.7 | ) | ||||||||||||||||||||||||
| Revenue ex-Aveda | $ | 1,556.8 | $ | 1,402.4 | $ | 874.0 | $ | 842.0 | ||||||||||||||||||||||
| Operating expenses | 1,444.0 | 1,418.7 | 622.1 | 546.3 | 788.2 | 840.4 | ||||||||||||||||||||||||
| Less Aveda operating expenses | (3.9 | ) | (77.7 | ) | (3.9 | ) | (77.7 | ) | ||||||||||||||||||||||
| Operating expenses ex-Aveda | 1,440.1 | 1,341.0 | 784.3 | 762.7 | ||||||||||||||||||||||||||
| Operating income | $ | 112.8 | $ | 35.4 | $ | 72.6 | $ | 32.6 | $ | 85.8 | $ | 53.3 | ||||||||||||||||||
| Operating income ex-Aveda | $ | 116.7 | $ | 61.4 | $ | 89.7 | $ | 79.3 | ||||||||||||||||||||||
| Operating ratio | 92.8 | % | 97.6 | % | 89.5 | % | 94.4 | % | 90.2 | % | 94.0 | % | ||||||||||||||||||
| Operating ratio (ex-Aveda) | 92.5 | % | 95.6 | % | 89.7 | % | 90.6 | % | ||||||||||||||||||||||
| Stock based compensation | 8.6 | 6.0 | 0.6 | 0.7 | 1.3 | 1.4 | ||||||||||||||||||||||||
| Impairment | — | 15.4 | — | 2.0 | — | 13.4 | ||||||||||||||||||||||||
| Amortization of intangible assets | 6.9 | 7.2 | 3.0 | 3.2 | 3.9 | 4.0 | ||||||||||||||||||||||||
| Third party debt refinancing charges | 2.3 | — | — | — | — | — | ||||||||||||||||||||||||
| Other (1) | 6.7 | 19.5 | 0.6 | 0.7 | 1.1 | 6.5 | ||||||||||||||||||||||||
| Adjusted Operating Expenses | 1,419.5 | 1,370.6 | 617.9 | 539.7 | 781.9 | 815.1 | ||||||||||||||||||||||||
| Less Aveda operating expense adjustments | — | (20.1 | ) | — | (20.1 | ) | ||||||||||||||||||||||||
| Adjusted Operating Expenses ex-Aveda | 1,415.6 | 1,313.0 | 778.0 | 757.5 | ||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 137.3 | $ | 83.5 | $ | 76.8 | $ | 39.2 | $ | 92.1 | $ | 78.6 | ||||||||||||||||||
| Adjusted Operating Income ex-Aveda | $ | 141.2 | $ | 89.4 | $ | 96.0 | $ | 84.5 | ||||||||||||||||||||||
| Adjusted Operating Ratio | 91.2 | % | 94.3 | % | 88.9 | % | 93.2 | % | 89.5 | % | 91.2 | % | ||||||||||||||||||
| Adjusted Operating Ratio ex-Aveda | 90.9 | % | 93.6 | % | 89.0 | % | 90.0 | % | ||||||||||||||||||||||
| (1) Other primarily includes business transformation costs, restructuring and severance. | ||||||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA ex-Aveda by Segment | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Net Income (Loss) Margin to Adjusted EBITDA ex-Aveda Margin by Segment | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
| Flatbed | Specialized | Corporate | Consolidated | Flatbed | Specialized | Corporate | Consolidated | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 2.0 | $ | (6.0 | ) | $ | 11.1 | $ | 7.1 | $ | 40.6 | $ | 42.7 | $ | (27.3 | ) | $ | 56.0 | |||||||||||||||||||||||
| Depreciation and amortization | 8.7 | 12.4 | 0.3 | 21.4 | 35.2 | 51.8 | 1.1 | 88.1 | |||||||||||||||||||||||||||||||||
| Interest income | — | — | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.1 | ) | — | (0.3 | ) | ||||||||||||||||||||||||||||
| Interest expense | 0.8 | 1.3 | 5.3 | 7.4 | 4.3 | 5.8 | 23.4 | 33.5 | |||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 0.4 | 4.7 | 2.3 | 7.4 | 13.7 | 21.1 | (8.8 | ) | 26.0 | ||||||||||||||||||||||||||||||||
| Stock based compensation | 0.2 | 0.5 | 2.6 | 3.3 | 0.6 | 1.3 | 6.7 | 8.6 | |||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | — | — | (2.8 | ) | (2.8 | ) | — | — | (1.6 | ) | (1.6 | ) | |||||||||||||||||||||||||||||
| Corporate expense allocation | 14.4 | 16.9 | (31.3 | ) | — | 14.4 | 16.9 | (31.3 | ) | — | |||||||||||||||||||||||||||||||
| Third party debt refinancing charges | — | — | — | — | — | — | 2.3 | 2.3 | |||||||||||||||||||||||||||||||||
| Other (1) | — | 0.1 | 2.4 | 2.5 | 0.6 | 1.2 | 4.8 | 6.6 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 26.5 | $ | 29.9 | $ | (10.2 | ) | $ | 46.2 | $ | 109.2 | $ | 140.7 | $ | (30.7 | ) | $ | 219.2 | |||||||||||||||||||||||
| Less Aveda Adjusted EBITDA | (3.4 | ) | (3.4 | ) | (3.9 | ) | (3.9 | ) | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA ex-Aveda | $ | 33.3 | $ | 49.6 | $ | 144.6 | $ | 223.1 | |||||||||||||||||||||||||||||||||
| Total revenue | 176.4 | 220.3 | (2.4 | ) | 394.3 | 694.7 | 874.0 | (11.9 | ) | 1,556.8 | |||||||||||||||||||||||||||||||
| Total revenue ex-Aveda | 220.3 | 394.3 | 874.0 | 1,556.8 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) margin | 1.1 | % | (2.7 | ) | % | (462.5 | ) | % | 1.8 | % | 5.8 | % | 4.9 | % | 229.4 | % | 3.6 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin | 15.0 | % | 13.6 | % | 425.0 | % | 11.7 | % | 15.7 | % | 16.1 | % | 258.0 | % | 14.1 | % | |||||||||||||||||||||||||
| Adjusted EBITDA margin ex-Aveda | 15.1 | % | 12.6 | % | 16.5 | % | 14.3 | % | |||||||||||||||||||||||||||||||||
| (1) Other primarily includes business transformation costs, restructuring and severance. | |||||||||||||||||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA ex-Aveda by Segment | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Net Income (Loss) Margin to Adjusted EBITDA ex-Aveda Margin by Segment | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
| Flatbed | Specialized | Corporate | Consolidated | Flatbed | Specialized | Corporate | Consolidated | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (11.0 | ) | $ | 10.5 | $ | 6.6 | $ | 6.1 | $ | 3.9 | $ | 26.9 | $ | (26.7 | ) | $ | 4.1 | |||||||||||||||||||||||
| Depreciation and amortization | 10.6 | 16.1 | 0.2 | 26.9 | 38.3 | 59.1 | 0.9 | 98.3 | |||||||||||||||||||||||||||||||||
| Interest income | — | (0.1 | ) | — | (0.1 | ) | (0.2 | ) | (0.1 | ) | (0.3 | ) | (0.6 | ) | |||||||||||||||||||||||||||
| Interest expense | 2.3 | 2.6 | 5.9 | 10.8 | 9.5 | 11.4 | 24.0 | 44.9 | |||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (3.5 | ) | (9.0 | ) | 12.1 | (0.4 | ) | 3.4 | 5.1 | (8.7 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
| Stock based compensation | 0.1 | 0.3 | 0.6 | 1.0 | 0.7 | 1.4 | 3.9 | 6.0 | |||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | — | — | 1.2 | 1.2 | — | — | 2.1 | 2.1 | |||||||||||||||||||||||||||||||||
| Impairment | 2.0 | — | — | 2.0 | 2.0 | 13.4 | — | 15.4 | |||||||||||||||||||||||||||||||||
| Arbitrated decrease in contingent consideration | — | (13.7 | ) | — | (13.7 | ) | — | (13.7 | ) | — | (13.7 | ) | |||||||||||||||||||||||||||||
| Corporate expense allocation | 16.3 | 24.6 | (40.9 | ) | — | 16.3 | 24.6 | (40.9 | ) | — | |||||||||||||||||||||||||||||||
| Other (1) | 0.3 | (1.3 | ) | 6.7 | 5.7 | 0.7 | 6.5 | 12.3 | 19.5 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 17.1 | $ | 30.0 | $ | (7.6 | ) | $ | 39.5 | $ | 74.6 | $ | 134.6 | $ | (33.4 | ) | $ | 175.8 | |||||||||||||||||||||||
| Less Aveda Adjusted EBITDA | 0.1 | 0.1 | (2.9 | ) | (2.9 | ) | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA ex-Aveda | $ | 29.9 | $ | 39.4 | $ | 137.5 | $ | 178.7 | |||||||||||||||||||||||||||||||||
| Total revenue | 142.1 | 196.5 | (3.0 | ) | 335.6 | 578.9 | 893.7 | (18.5 | ) | 1,454.1 | |||||||||||||||||||||||||||||||
| Total revenue ex-Aveda | 196.5 | 335.6 | 842.0 | 1,402.4 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) margin | (7.7 | ) | % | 5.3 | % | (220.0 | ) | % | 1.8 | % | 0.7 | % | 3.0 | % | 144.3 | % | 0.3 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin | 12.0 | % | 15.3 | % | 253.3 | % | 11.8 | % | 12.9 | % | 15.1 | % | 180.5 | % | 12.1 | % | |||||||||||||||||||||||||
| Adjusted EBITDA margin ex-Aveda | 15.2 | % | 11.7 | % | 16.3 | % | 12.7 | % | |||||||||||||||||||||||||||||||||
| (1) Other primarily includes business transformation costs, restructuring and severance. | |||||||||||||||||||||||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted Net Income ex-Aveda | ||||||||||||||||||||
| Reconciliation of Net Income (Loss) to Net Income (Loss) ex-Aveda | ||||||||||||||||||||
| Reconciliation of Earnings Per Share to Adjusted Earnings Per Share ex-Aveda | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions, except share and per share data) | ||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Net income (loss) | $ | 7.1 | 6.1 | $ | 56.0 | 4.1 | ||||||||||||||
| Less Aveda net income (loss) | (6.9 | ) | 13.0 | (7.3 | ) | (11.9 | ) | |||||||||||||
| Net income (loss) ex-Aveda | 14.0 | (6.9 | ) | 63.3 | 16.0 | |||||||||||||||
| Adjusted for: | ||||||||||||||||||||
| Income tax expense (benefit) | 7.4 | (0.4 | ) | 26.0 | (0.2 | ) | ||||||||||||||
| Less Aveda Income tax expense (benefit) | 3.0 | (2.8 | ) | 2.8 | (5.8 | ) | ||||||||||||||
| Income tax expense ex-Aveda | 4.4 | 2.4 | 23.2 | 5.6 | ||||||||||||||||
| Income before income taxes | 14.5 | 5.7 | 82.0 | 3.9 | ||||||||||||||||
| Income (loss) before income taxes ex-Aveda | 18.4 | (4.5 | ) | 86.5 | 21.6 | |||||||||||||||
| Add: | ||||||||||||||||||||
| Stock based compensation | 3.3 | 1.0 | 8.6 | 6.0 | ||||||||||||||||
| Impairment | — | 2.0 | — | 15.4 | ||||||||||||||||
| Arbitrated decrease in contingent consideration | — | (13.7 | ) | — | (13.7 | ) | ||||||||||||||
| Amortization of intangible assets | 1.8 | 1.7 | 6.9 | 7.2 | ||||||||||||||||
| Debt refinancing related charges | — | — | 3.8 | — | ||||||||||||||||
| Change in fair value of warrant liability | (2.8 | ) | 1.2 | (1.6 | ) | 2.1 | ||||||||||||||
| Other (1) | 2.5 | 5.7 | 6.6 | 19.5 | ||||||||||||||||
| Adjusted income before income taxes | 19.3 | 3.6 | 106.3 | 40.4 | ||||||||||||||||
| Less Aveda adjustments | — | (15.1 | ) | — | 6.4 | |||||||||||||||
| Adjusted income before income taxes ex-Aveda | 23.2 | 8.5 | 110.8 | 51.7 | ||||||||||||||||
| Income tax (expense) benefit at adjusted effective rate | (10.2 | ) | 0.7 | (33.0 | ) | (12.1 | ) | |||||||||||||
| Adjusted Net Income ex-Aveda | $ | 13.0 | $ | 9.2 | $ | 77.8 | $ | 39.6 | ||||||||||||
| Net income | $ | 7.1 | $ | 6.1 | $ | 56.0 | $ | 4.1 | ||||||||||||
| Less Series A preferred dividends | (1.2 | ) | (1.2 | ) | (5.0 | ) | (4.9 | ) | ||||||||||||
| Net income (loss) attributable to common stockholders | 5.9 | 4.9 | 51.0 | (0.8 | ) | |||||||||||||||
| Allocation of earnings to non-vested participating restricted stock units | — | — | (0.4 | ) | — | |||||||||||||||
| Numerator for basic EPS - income (loss) available to common stockholders - two class method | $ | 5.9 | $ | 4.9 | $ | 50.6 | $ | (0.8 | ) | |||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Add back Series A preferred dividends | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Add back allocation earnings to participating securities | — | — | 0.4 | — | ||||||||||||||||
| Reallocation of earnings to participating securities considering potentially dilutive securities | — | — | (0.4 | ) | — | |||||||||||||||
| Numerator for diluted EPS - income (loss) available to common shareholders - two class method | $ | 5.9 | $ | 4.9 | $ | 50.6 | $ | (0.8 | ) | |||||||||||
| (1) Other primarily includes business transformation costs, restructuring and severance. | ||||||||||||||||||||
| Daseke, Inc. and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Earnings Per Share to Adjusted Earnings Per Share ex-Aveda (continued) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions, except share and per share data) | ||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Adjusted Net Income ex-Aveda | $ | 13.0 | $ | 9.2 | $ | 77.8 | $ | 39.6 | ||||||||||||
| Less Series A preferred dividends | (1.2 | ) | (1.2 | ) | (5.0 | ) | (4.9 | ) | ||||||||||||
| Allocation of earnings to non-vested participating restricted stock units | (0.1 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | ||||||||||||
| Numerator for basic EPS - adjusted income available to common shareholders ex-Aveda - two class method | $ | 11.7 | $ | 7.9 | $ | 72.2 | $ | 34.2 | ||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Add back Series A preferred dividends | $ | — | $ | — | $ | 5.0 | $ | — | ||||||||||||
| Add back allocation earnings to participating securities | 0.1 | 0.1 | 0.6 | 0.5 | ||||||||||||||||
| Reallocation of earnings to participating securities considering potentially dilutive securities | (0.1 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | ||||||||||||
| Numerator for diluted EPS - adjusted income available to common shareholders ex-Aveda - two class method | $ | 11.7 | $ | 7.9 | $ | 77.2 | $ | 34.2 | ||||||||||||
| Basic EPS | ||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 0.09 | $ | 0.08 | $ | 0.79 | $ | (0.01 | ) | |||||||||||
| Adjusted Net Income attributable to common stockholders ex-Aveda | $ | 0.19 | $ | 0.12 | $ | 1.13 | $ | 0.53 | ||||||||||||
| Diluted EPS | ||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 0.09 | $ | 0.07 | $ | 0.77 | $ | (0.01 | ) | |||||||||||
| Adjusted Net Income attributable to common stockholders ex-Aveda | $ | 0.18 | $ | 0.12 | $ | 1.09 | $ | 0.52 | ||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||
| Basic | 62,489,277 | 65,023,174 | 63,744,456 | 64,775,275 | ||||||||||||||||
| Diluted | 64,885,771 | 66,149,361 | 65,409,258 | 64,775,275 | ||||||||||||||||
| Basic - adjusted ex-Aveda | 62,489,277 | 65,023,174 | 63,744,456 | 64,775,275 | ||||||||||||||||
| Diluted - adjusted ex-Aveda | 64,885,771 | 66,149,361 | 71,061,431 | 65,671,246 | ||||||||||||||||
FAQ
What were the Q4 2021 revenue results for Daseke (DSKE)?
What is the net income reported by Daseke (DSKE) for 2021?
What is Daseke's (DSKE) 2022 revenue growth outlook?
How did Daseke (DSKE) perform in terms of adjusted EBITDA in Q4 2021?
What challenges does Daseke (DSKE) foresee for 2022?
