Daseke, Inc. (DSKE) Reports Q3 Revenues Beat; Offers FY19 Revenue Outlook
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Daseke, Inc. (NASDAQ: DSKE) reported Q3 EPS of ($4.25), versus $0.01 reported last year. Revenue for the quarter came in at $450.4 million versus the consensus estimate of $433.86 million.
Third Quarter 2019 Highlights
- Revenue of $450.4 million
- Net loss was $273.3 million, or $4.25 per share, which included non-cash impairment charges to goodwill, intangibles, property and equipment, right of use assets and other long-term assets of $306.8 million, triggered by restructuring efforts
- Adjusted EBITDA1 was $43.2 million
- Net cash flows from operating activities of $89.4 million and Free Cash Flow1 of $95.8 million for the first nine months of fiscal 2019
- Debt, net of cash, reduced by $16.5 million during the quarter
- Rightsized board and executive management team
- Accelerated and increased operational and cost improvement goal during the quarter and remain on target for $30 million improvement in operating income on a run rate basis by end of the first quarter of 2020 (based off the Company’s first six months revenues and operating cost run rate, on an annualized basis)
- Created an internal Leadership Council of business unit leaders
- Appointed new heads of Flatbed and Specialized segments, as well as new Transformation Office
- Reaffirmed 2019 outlook, including Adjusted EBITDA1 target of $165 - $175 million
“We took decisive actions to drive immediate operational changes across the Company during the third quarter,” said Chris Easter, Interim Chief Executive Officer. “We believe our accelerated operational integrations, business improvement plans and corporate rightsizing will drive positive impacts in the business. We believe we have an opportunity to better leverage our strengthened leadership position as the largest flatbed, specialized transportation and logistics solutions company in North America, as well as the best talent in our industry across our operating companies, remains clearly in front of us.”
Easter concluded, “Our performance during the third quarter reflects our ability to drive positive operational changes across the organization despite a weaker than normal macro environment. While our Flatbed Solutions segment continued to be impacted by softer end markets and lower rates during the period, our Specialized Solutions segment proved resilient and grew its top line by 1.5 percent year-over-year. We remain on target to deliver a $30 million improvement in operating income on a run rate basis by the end of the first quarter in 2020, which represents the first phase of our operational improvement initiatives. We expect the continued implementation of our operational improvement initiatives to drive an improved operating ratio and stronger profitability results in the future.”
Daseke, Inc. sees FY2019 revenue of $1.7-1.75 billion, versus the consensus of $1.73 billion.
For earnings history and earnings-related data on Daseke, Inc. (DSKE) click here.
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