Roadrunner Reports on Net Loses in 2017
Roadrunner Transportation Systems reported a net loss of $91.2 million for full-year 2017 compared with a loss of $360.3 million in 2016, according to industry reports. The diluted loss per share was $2.37 for 2017 compared with a diluted loss per share of $9.40 for 2016.
The Downers Grove, Ill.-based truckload and less-than-truckload carrier reported a 2017 operating loss of $36.5 million, compared with a loss of $403.8 million in 2016, financial reports show.
Revenues totaled $2.1 billion in 2017, up nearly 3 percent from $2 billion the previous year.
The truckload segment contributed revenues of $1.3 billion, a 4.7-percent rise from $1.2 billion in 2016. The less-than-truckload segment had revenues of $463.5 million, up from $461.5 million. The Ascent logistics unit reported revenues of $328.3 million, a 2-percent drop from $335.5 million in 2016. Ascent provides freight management and forwarding and other services.
“We are happy to complete our 2017 annual report, which gets us another step closer to becoming current with our SEC reporting,” said Curt Stoelting, company chief executive.
He said the company plans to release its first-quarter 2018 results this month. That would make Roadrunner current with Securities and Exchange Commission (SEC) requirements for being listed on a stock exchange.
Roadrunner Efforts to Improve Financial Condition
The release of full-year 2017 results is part of Roadrunner’s efforts to amend and refile its financial statements after a company-led investigation that found the previous management team made substantial accounting errors over several years.
According to the indictment, the scheme was designed to mislead shareholders, auditors and regulators about Roadrunner’s financial condition “to maintain and increase the market price of Roadrunner’s stock.”An SEC and U.S. Justice Department (DOJ) investigation of the matter led to the June 15 indictment of two former Roadrunner finance executives for multiple counts of conspiracy and wire and securities fraud in a scheme DOJ said led to a loss of $245 million in shareholder value.
According to the indictment, the scheme was designed to mislead shareholders, auditors and regulators about Roadrunner’s financial condition “to maintain and increase the market price of Roadrunner’s stock.” This was done while those charged continued to receive their pay, stock and other benefits, according to the indictment.
The indictment lists but doesn’t name five co-conspirators, including a former board member, who were part of the alleged scheme.