Daseke, Inc. (DSKE) Tops Q4 EPS by 8c, Revenues BeaT; Offers FY20 Revenue Guidance Below Consensus

March 10, 2020 8:52 AM EDT

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Daseke, Inc. (NASDAQ: DSKE) reported Q4 EPS of ($0.12), $0.08 better than the analyst estimate of ($0.20). Revenue for the quarter came in at $403 million versus the consensus estimate of $401.37 million.

Fourth Quarter 2019 Highlights

  • Revenue of $403.0 million
  • Net Loss of $18.4 million, or $0.31 per share, which included a non-cash goodwill impairment charge of $6.0 million related to the third quarter impairment analysis
  • Adjusted Net Loss was $7.8 million, or $0.12 per share
  • Adjusted EBITDA was $37.9 million
  • On pace to complete Phase I of Operational Improvement Plan to deliver $30 million in annual operating income improvement on a run-rate basis as exit the first quarter of 2020

Management Commentary

“2019 proved to be a year of significant transformation for Daseke, as we took aggressive action to streamline the business, reset our leadership team, and reposition the Company to drive profitable growth in the future,” said Chris Easter, Chief Executive Officer. “We aggressively executed against Phase I of our Operational Improvement plan, which helped us exceed our goals and significantly offset anticipated market headwinds. Overall, we reduced costs across the business, including the reduction in our company fleet of 8%, company trailers of 8% and non-driver staff of 8%. As importantly, we came together as an organization and remain focused on becoming a more disciplined and efficient company as we move forward.”

Easter concluded, “We enter 2020 from a position of strength, despite ongoing softness in the transportation markets, as we see additional opportunity to build on the operational efficiency and the structural changes that we made in the second half of last year. We are completing the final steps of Phase I of our Operational Improvement Plan and have already begun work on Phase II of the program. Phase II will include the integration of three additional operations, which will reduce our operating units from 13 to 10 upon completion, as well as additional business improvement actions. We anticipate the total impact of our Phase II initiatives will result in a cumulative $15 million of annual operating income improvement on a run-rate basis as we exit the fourth quarter of 2020. In total, we expect that Phase I and II of our Operational Improvement Plan, which began in August of 2019, will deliver $45 million in annual operating income improvements as we enter fiscal 2021, and will position the company for more profitable growth as the industrial market improves.”

GUIDANCE:

Daseke, Inc. sees FY2020 revenue of $1.61-1.69 billion, versus the consensus of $1.71 billion.

  • The Company also anticipates that approximately 80% of capital expenditures in 2020 will be invested in the first two quarters of the year.

For earnings history and earnings-related data on Daseke, Inc. (DSKE) click here.



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