Daseke, Inc. (DSKE) Tops Q4 EPS by 25c, Revenues Beat; Offers FY19 Revenue Mid-Point Guidance Above Consensus

Daseke, Inc. (NASDAQ: DSKE) reported Q4 EPS of $0.05, $0.25 better than the analyst estimate of ($0.20). Revenue for the quarter came in at $447 million versus the consensus estimate of $428.56 million.

• Revenue increased 74% to a record $447.0 million (up 13% on an Acquisition Adjusted1 basis).
• Net loss was $20.1 million, or $0.31 per share, basic and diluted ($0.33 net loss per share attributable to common stockholders, basic and diluted), compared to net income of $38.8 million, or $0.84 basic and $0.64 diluted per share ($0.82 basic and $0.62 diluted net income per share attributable to common stockholders).
• Adjusted Net Income2 for the fourth quarter 2018 was $3.4 million, or $0.05 per share, compared to Adjusted Net Loss2 of $2.4 million, or $0.05 per share.
• Adjusted EBITDA3 increased 73% to $39.9 million (Acquisition Adjusted EBITDA1,3 up 7%). This represents the fifth consecutive quarter that year-over-year Adjusted EBITDA3 growth has exceeded 50%.

“As communicated in our recent pre-announcement, revenue and Adjusted EBITDA for the fourth quarter and full year 2018 met our expectations and resulted in another record year for the company,” said Don Daseke, chairman and CEO. “Our results show the power of the platform we have built and our ability to drive organic growth.”

“Over the course of the last decade we have successfully executed on our strategy of building scale across the organization. Today, we are the market leader with plenty of runway for growth and have consistently produced results aligned with our outlook,” Daseke continued, “I truly believe that we have only scratched the surface of our potential and I am excited for what the next decade will bring.”

Scott Wheeler, president and director added, “In 2018 we exceeded revenue and Adjusted EBITDA expectations, delivered exceptional organic growth and completed several great acquisitions. Our strategic plan for 2019 will be focused on driving continued organic growth, free cash flow generation and reducing net financial leverage. We expect to achieve this by maximizing the existing infrastructure we have built, controlling costs, taking advantage of our scale, and ensuring that we have the people, processes and systems to succeed. I am confident in the organization’s ability to successfully execute on our strategic plan and I look forward to this next stage of growth.”

GUIDANCE:

Daseke, Inc. sees FY2019 revenue of $1.8-1.9 billion, versus the consensus of $1.81 billion.

• Adjusted EBITDA3 is anticipated to range between $200-$210 million, up 15%-20% compared to $174.3 million in 2018, and compared to 2018 Acquisition Adjusted EBITDA1,3 of $190.4 million.
• Net capital expenditures are anticipated to range between $65-$70 million compared to $121 million in 2018.
• The Company anticipates that approximately 70% of capital expenditures in 2019 will be invested in the first two quarters of the year.
• By the end of 2019, leverage (as defined in the Company’s debt agreements) is expected to decline to a multiple of approximately 2.9 times Adjusted EBITDA (as defined in the Company’s debt agreements).

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

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