William B. Cassidy, Senior Editor | Nov 03, 2011 12:10PM EDT
Acquisitions, rate hikes and a surge in freight pushed revenue up 38.2 percent to $226.2 million in the third quarter at Roadrunner Transportation System.
Roadrunner’s acquisition of four companies over the past nine months added $33.5 million in top-line revenue, but higher pricing helped boost bottom-line profit.
The asset-light less-than-truckload and truckload carrier’s net profit jumped 63.7 percent from a year ago to $7.2 million, with an operating profit of $12.8 million. That compares with a $7.4 million net profit in the second quarter on a 30.4 percent year-over-year increase in total revenue to $208.3 million.
The Cudahy, Wis.-based company benefited from a spike in LTL freight in the second half of the third quarter, while its truckload revenue more than doubled. LTL tonnage was flat in July but spiked more than 8 percent year-over-year in August and September, pushing LTL revenue up 17.7 percent to $126.2 million.
For the full quarter, tonnage rose 6 percent and LTL shipments 6.3 percent. Roadrunner is the 16th largest LTL carrier, according to SJ Consulting Group. Revenue per hundredweight, or LTL yield, rose 4.2 percent excluding fuel surcharges, and 10.6 percent with the surcharges included, the company said.
Roadrunner rolled out a 6.9 percent general rate increase in August. The 4.2 percent increase in yield shows that overall, pricing rose slightly less than that.
Higher prices and volume growth increased Roadrunner’s truckload revenue 102 percent to $79.3 million. TMS brokerage revenue rose 20.6 percent to $21.7 million.
The company acquired brokerage firm Prime Logistics, truckload carrier Bruenger Trucking and intermodal drayage company Morgan Southern this year.
The $632 million company restructured its management in the second quarter as it diversified, naming a president for its LTL and truckload operations.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc