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P E O P L E • T E C H N O L O G Y • R E S U L T S
Echo Global Logistics
November 2017
Investor Presentation
1
Echo Global Logistics
Leading provider of technology-enabled transportation and supply chain management solutions
Proprietary technology platform linking over 35,000 clients with a network of over 49,000 carriers
• Transportation cost savings
• Access to extensive transportation network
• Centralized system to meet all transportation needs
• Dedicated account teams provide superior client
service
• Web-based applications address entire shipment
order and delivery process
• Aligns demand with network capacity
• Increases utilization of assets
• Optimizes open lanes and backhauls
• Lower client service costs
• Shortens billing cycle, improving working capital
Value Proposition to Shippers Value Proposition to Carriers
One of the largest growing 3PLs with gross revenue approaching $2Bn
2
Unique Logistics Platform
Differentiated Relationship-driven
Customer and Carrier Network
Proprietary Technology that Optimizes Brokerage
Value Proposition
Stability and Consistencythrough Freight
and Business Cycles
Track Record of Significant Growth
Projected to Continue
Strong Culture and Management Team
1 2
3 4
5 6
Favorable Long-term Industry Fundamentals
Echo’s Key Attributes and Highlights
3
Broad Cross-Country Employee Network
Critical Component of Value Proposition for Shippers
Service MarketTransportation
SpendTL
Partial
TLLTL Intermodal Expedited
Domestic
AirInternat’l
Small
Parcel
Transactional
(Brokerage)
SMB$25K –
$50MM
National$50MM –
$2Bn+
Managed
Transportation
(Enterprise)
SMB$500K –
$10MM
National$10MM –
$200MM
Indicates primary market
need, offered by Echo
Indicates secondary market
need, offered by Echo
Echo at a Glance
Detroit,MI Chicago,IL
Bend,OR Boston,MA Green Bay,WI
Jacksonville,FL
Denver,CO
Minneapolis,MN
Houston,TX
Yorba Linda,CA
Rochester,NY
Sacramento,CA
Watsonville,CA
Portland,OR
San Ramon,CA
Clearwater,FL
Albany,IN
Long Beach,CA
San Francisco, CA
Sandy,UTLockport,IL
Dallas,TX
Kansas City,KS St. Louis,MO
Atlanta,GA
Nashville,TN
Park City,UT
Lake Havasu,AZ
Scottsdale,AZ
Port Sanilac, MI
4
• Industry and market share leader, a one-stop-shop for shippers
• Robust pricing engine capable of managing and simplifying
complex pricing structures across multiple carriers and shippers
• Multi-channel automation
• Data capture and analytics tools to optimize pricing and
carrier selection
• Efficient back office integration to manage billing and
payments on high volume, transaction based systems
Product OfferingsDiverse Multimodal Portfolio
Truckload Brokerage
• Differentiated model to efficiently aggregate capacity in
fragmented market
• Centralized, role-based execution
• Highly scalable matching capability
• Quick access to market information
• Highly automated leveraging internal and external data
• Smaller carriers increasingly interested in doing business with
brokers
1. Fleet size available for 85% of carriers as of Q3 2017
TL Carrier Profile by Fleet Size (# of trucks) (1)
LTL Brokerage Managed Transportation
• Managed service offering leverages transportation
experts with robust TMS technology
• Ability to drive measureable savings by utilizing Echo’s
multi-modal capabilities
• Highly efficient execution with multiple automation points
for both shippers and carriers
• Moving up market with fee based services
• Strong procurement capability across all modes of
transportation5
< 1026%
10-50 33%
50-100 13%
100-500 13%
>500 15%
Building on a Strong
Track Record of Growth
2009
Echo IPO
2006
Doug Waggoner joins
Echo from USF
Bestway
2005
Echo founded
2005 – 2016
Gross Revenue CAGR
65%
Gross Revenue ($MM)
2015• Command
• Xpress
2014
• OFS
• Comcar
• One Stop
2013 • Open Mile
2012• Purple Plum
• Sharp
2011
• Nationwide
• Advantage
• TTS
2010
• Lubenow
• DSI
• Resource Group
• FLI
• DNA
2009• FMI
• Raytrans
2007• Bestway
• TMG
Acquisition History
2014
Echo exceeds $1Bn
in gross revenue
2017+
- Realization of synergies from Command
- Human capital and infrastructure in
place to support next phase of growth
- Continue to take market share
organically and through acquisitions
•Average multiple paid (1) of
7.9x EBITDA
Note
1. Transaction Value / LTM EBITDA excluding Command and EBITDA estimated as first six months following acquisition annualized for Purple Plum, Lubenow, FLI and DNA transactions; with Command the average is 8.2x
2. 2017 reflects the midpoint of revenue guidance given during the earnings call on October 25, 20176
733
95
203
260
426
603
758
884
1,173
1,512
1,716
1,875
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(2)
Industry Leading Technology Platform
Transportation Demand (Shippers)
Transportation Supply / Capacity (Carriers)
• Thousands of shippers
• Thousands of origins and
destinations
• Multiple modes
• Variable weights and sizes
• Various shipping requirements
and restrictions
• Thousands of carriers
• Thousands of origins and
destinations
• Multiple modes
• Various capabilities
Echo Technology
• Aggregates supply and demand
• Analytics optimize marketplace
• Integrated across modes
• Shippers and carriers use the same system
• Unmatched TL capabilities
• Interface dynamically changes with new
information to alert and motivate user to
make optimal choices (gamification)
• Designed in-house by engineering and
transportation experts
7
Echo’s Culture Attracts Top Talent
The Echo Way – Our Core Values
Bring Your Own Do What’s Right Better is the Only Option
Carry The Load Together Work Hard & Hustle
“The Hub”Learning
Management
System: Live
stream
meetings,
Social Groups,
Knowledge
Banks
Echo Engage
Recognition, Sentiment
Polling, Achievements,
Performance & Career
Discussions, Real time
feedback, Goals
Echo News Network Intranet streamlining
communication with
real time updates &
business collaboration
tools
Virtual Meet ups Live streaming
and video chats
Applicant Tracking Promoting internal
movement,
improve hiring
manager
experience and
candidate selection
effectiveness`
Award-Winning Culture Connected Workforce
Employees
8
324
646
835 929
1,157
1,364 1,297
1,734
2,335 2,350 2,472
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q317
104 114 119 127
107 127 134 142 146
157 161 175
185 196
0
75
150
225
300
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E
Echo outperformed through financial crisis ($MM)
Attractive Market
Gross Revenue ($Bn)The US 3PL market has grown meaningfully
from $104 billion in 2005 to $161 billion for 2015
Growing US 3PL Market
$203$260
$426
Source Armstrong & Associates Research
▪ Carrier Market (Trucks/Trucking Companies)
‒ Approximately 3 million drivers in U.S., ~80% work for company with <10 trucks
‒ Top 10 truckload (TL) carriers represent 5% of U.S. market
‒ Shortage of drivers makes Echo’s network of carriers more valuable
▪ Brokerage Market
‒ Only a handful of players of meaningful scale
‒ Industry customer service levels improving, but there is large opportunity to differentiate for companies that execute effectively
‒ Remains highly fragmented with hundreds of small brokers
Significant
Brokerage
Opportunity
Sources: Armstrong & Associates, Inc; U.S. Department of Transportation,“Examining the Appropriateness of the Current Financial Responsibility for Motor Carriers, Brokers, and Freight
Forwards – Report to Congress,” April 2014; CarrierDirect, “Outlook for the Domestic Transport and Logistics Market in 2H2014 and Beyond,” July 2014
Highly Fragmented North American Broker and Carrier Market
9
Multiple Growth Drivers
Grow and Enhance
Sales Force
Productivity and
Sales Offering
Placeholder for EPS 2
• Growth of sales force and productivity gains
• Evolution of managed transportation business to reach larger accounts
and opportunities
• Growth of intermodal offering
• LTL SEO automated selling
Productivity vs Tenure
Continue
Acquisitions
• Growth from future acquisitions
– Brokerage market is highly fragmented with hundreds of smaller players
– Echo has completed 20 acquisitions in 8 years
Placeholder for EPS 2
Normalization of
Market Environment
• Market conditions have been historically challenging for much of 2015 and
2016. Truckload rates rose sharply during Q3 2017.
• Echo is well positioned to take advantage of the market reversion to
normal market conditions
Realization of
Command Synergies
• Significant revenue opportunities through selling multi-modal offering to
legacy Command clients and expanded TL platform for Echo clients
• Technology and office integration October 2016
Echo
Command
1
4
3
2
10
15.3 16.6
17.7 19.8
21.0 20.5 20.2
23.5
27.5
30.0 31.4
32.6
10.0
15.0
20.0
25.0
30.0
35.0
Months
Sales Force MaturityDriving Productivity Gains
Sales Tenure (Months) (1)Months
• Tenure is lengthening
• Increasing share of wallet
• Expanding truckload national accounts
Client Rep Productivity by Months of
Tenure (2) (3)
Gross Profit (000s)
Highlights
Notes
1. Headcount includes both client and carrier-facing sales representatives. Tenure shown is trailing twelve month average
2. Chart compares total annualized gross profit generated per average inside sales client representative by months of tenure
3. Includes all existing and ex-employees11
0
250
500
750
1,000
Oct14-Sep15 Oct15-Sep16 Oct16-Sep17
Freight Cycle Dynamics
Illustrative Freight CycleIndex of Supply and Demand
Supply Demand
Strong Macro
Environment
Weak Macro
Environment
Demand Exceeds
Supply
• Good margins
• Significant
volumes of spot
at high margins
Expanding
margins as
demand falls
faster than supply
Soft Market
• Reduced prices
• Plenty of
capacity
Contracting
margins as
demand rises
faster than supply
Demand Exceeds
Supply
• Good margins
• Significant
volumes of spot
at high margins
A B C D A
12
Awards and Recognition
• #1 – Inbound Logistics’ Readers’ Choice Top 10 3PL
Excellence Awards (2017)
• Inbound Logistics’ Top 10 3PLs (2011–2017)
• Inbound Logistics’ Top 100 3PLs (2007–2017)
• #4 – Transport Topics’ Top Freight Brokerage Firms
(2016, 2017)
• Transport Topics’ Top 50 Logistics Companies (2014–
2017)
• Global Trade’s America’s Leading 3PLs (2013–2017)
• Built in Chicago’s Top 100 Digital Companies (2012–
2017)
• Target Corp Outstanding Partnership Award (2015)
• Food Logistics’ Top Green Providers (2015, 2016)
• Food Logistics’ Top 3PL & Cold Storage Providers (2015,
2016)
• EPA SmartWay Transport Partner (2010–2017)
• #47 – Crain’s Chicago Business’s 50 Fastest-Growing
Companies (2016)
• Quaker Oats: Regional Broker of the Year (2015)
• Berry Plastics Truckload Carrier of the Year (2014, 2015)
• Chicago’s 101 Best & Brightest Places to Work For
(2016, 2017)
13
Financial Performance & 2017 Guidance
Gross Revenue Net Revenue
EBITDA(1)
$ MM $ MM
$ MM
603758
884
1,173
1,5121,716
0
750
1,500
2,250
3,000
2011 2012 2013 2014 2015 2016
117143
156
208
290
319
0
100
200
300
400
2011 2012 2013 2014 2015 2016
28 36
37
50
7072
0
23
45
68
90
2011 2012 2013 2014 2015 2016
19.4% 18.9% 17.6% 17.7% 19.2% 18.6%
% of Gross Revenue
24% 25% 24% 24% 24% 23%
% of Net Revenue
26% 17% 33% 29% 13%
% Growth
Note
1. EBITDA refers to Non-GAAP EBITDA less Integration Costs
2017 Guidance
FY-2017 Q4-2017
Gross Revenue $1.855 - 1.895B $460 – 500M
Commission % 30.0 – 31.0% 30.0 – 31.0%
G&A $170 – 172M $41.5 – 43.5M
14
Historical Financial Information
Reconciliation of Non- GAAP Financial Measures
dollars in millions, except per share data FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Net Income 12.0$ 12.3$ 14.2$ 16.8$ 7.8$ 1.6$
Change in contingent consideration (0.2) (0.1) 0.1 2.2 0.2 (0.1)
Depreciation 5.8 7.0 8.2 10.0 12.4 16.3
Amortization 2.5 2.2 2.3 3.9 11.7 15.8
Acquisition related transaction costs - - - 1.5 6.6 -
Non-cash interest expense - - - - 4.9 7.6
Term Loan B commitment fees (non-recurring interest expense) - - - - 2.0 -
Non-recurring settlement costs - 0.7 - - - -
Loss related to Shipper Direct acquisition - 2.5 - - - -
Stock compensation expense 1.3 2.7 3.3 4.4 14.0 13.1
Cash interest expense - - - - 4.3 6.6
Other expense 0.3 0.4 0.4 0.3 0.2 -
Income tax expense (benefit) 6.6 7.9 8.6 10.4 3.7 (0.2)
Non-GAAP EBITDA 28.3$ 35.6$ 37.1$ 49.5$ 67.8$ 60.8$
Fully diluted EPS 0.53$ 0.54$ 0.61$ 0.71$ 0.28$ 0.05$
Change in contingent consideration (0.01) - - 0.09 0.01 (0.00)
Amortization 0.11 0.10 0.10 0.17 0.42 0.54
Acquisition-related transaction costs - - - 0.06 0.23 -
Non-cash interest expense - - - - 0.17 0.26
Term Loan B commitment fees (non-recurring interest expense) - - - - 0.07 -
Non-recurring settlement costs - 0.11 - - - -
Loss related to Shipper Direct acquisition - 0.03 - - - -
Stock Compensation Expense 0.06 0.12 0.14 0.19 0.50 0.45
Tax effect of adjustments (0.06) (0.11) (0.09) (0.20) (0.52) (0.47)
Non-GAAP fully diluted EPS 0.63$ 0.77$ 0.76$ 1.02$ 1.16$ 0.83$
15