William B. Cassidy, Senior Editor | May 03, 2012 12:04PM EDT
Roadrunner Transportation Systems increased its profit 70.5 percent in the first quarter to $7.9 million as revenue rose 38.2 percent to $236.6 million.
Roadrunner was the fastest growing trucking company among the 50 largest U.S. motor carriers in 2011, according to data from SJ Consulting Group.
The Cudahy, Wis.-based company increased trucking revenue 35.1 percent to $768 million in 2011, ranking 25th on The Journal of Commerce list of Top 50 carriers.
The less-than-truckload and truckload operator saw LTL revenue rise 18.2 percent to $119 million as Roadrunner gained customers and moved into new markets.
LTL tonnage was up 11 percent and shipments 12.8 percent, while LTL yield, a measure of pricing, rose 3.9 percent year-over-year excluding fuel surcharges.
Adding shippers, expanding into new territory and building density helped Roadrunner improve its LTL net revenue margin to 25.8 percent in the quarter.
The carrier’s LTL operating profit rose to $8.5 million or 7.1 percent of LTL revenue, compared with $4.9 million or 4.8 percent of LTL revenue a year ago.
Roadrunner also benefited from several acquisitions over the past year that bolstered its core trucking operations and added or expanded services.
Truckload revenue rose 79.6 percent year-over-year to $98 million, with 91 percent of that increase coming from acquisitions Roadrunner completed in 2011.
The impact of those acquisitions and operating leverage gained from revenue growth led to a 127.1 percent increase in truckload operating profit of $5.7 million.
Roadrunner’s transportation management services or TMS revenue jumped 25.2 percent from a year ago to $20.7 million, growth also fueled by acquisition.
The brokerage unit’s operating profit rose from $1.3 million in the year-ago quarter to $2.2 million, or 10.7 percent of TMS revenue, the company said Wednesday.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter @wbcassidy_joc.
