Echo Global Logistics Reports Record Second Quarter 2021 Results

CHICAGO, July 28, 2021 /PRNewswire/ -- Echo Global Logistics, Inc. (NASDAQ: ECHO), a leading provider of technology-enabled transportation management services, today reported financial results for the quarter ended June 30, 2021.

"Echo's record setting second quarter results reflect strong execution across our uniquely flexible business model and its ability to create significant value for our customers in the robust yet constrained freight environment. Our combination of technology and people helped deliver numerous quarterly revenue and profitability records and improved metrics across the business," said Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer at Echo. Mr. Waggoner continued, "Looking ahead we will continue to leverage our investments in technology and drive strong execution to further capture both size and scale through the second half of the year."

Second Quarter 2021 Highlights

• Revenue increased 81.6% to $934.5 million from the second quarter of 2020
• Gross profit increased 59.1% to $132.2 million from the second quarter of 2020
• Adjusted gross profit⁽¹⁾ increased 54.5% to $136.1 million from the second quarter of 2020
• Truckload ("TL") revenue increased 95.1% to $687.0 million from the second quarter of 2020, and TL volume increased 26.6% from the second quarter of 2020
• Less than truckload ("LTL") revenue increased 53.7% to $217.6 million from the second quarter of 2020, and LTL volume increased 27.4% from the second quarter of 2020
• Transactional revenue increased 80.7% to $716.9 million and Managed Transportation revenue increased 84.6% to $217.7 million from the second quarter of 2020
• Net income increased to $18.4 million, compared to $1.0 million in the second quarter of 2020
• Fully diluted earnings per share ("EPS") increased to $0.69 in the second quarter of 2021; non-GAAP fully diluted EPS⁽¹⁾ increased to $0.84 in the second quarter of 2021
• Adjusted EBITDA⁽¹⁾ grew 144.5% to $36.2 million, compared to $14.8 million in the second quarter of 2020

2021 Third Quarter and Full Year Guidance

Pete Rogers, Chief Financial Officer at Echo, concluded, "We remain very encouraged by our record results thus far this year, as they demonstrate the value we are creating for both our shippers and carrier partners. In turn, this is driving our ability to continue winning new business and capture market share. Given the strong start to the first half of the year and solid market fundamentals, we are expecting revenue for the third quarter to be between $910M and $940M, representing 34% year over year growth at the midpoint. In addition, we are raising our full year revenue guidance to be between $3.45B – $3.55B, representing 39% year over year growth and an 8% increase from our most recent guidance."

Conference Call

A conference call, with accompanying presentation slides, will be broadcast live on July 28, 2021 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer; Dave Menzel, President and Chief Operating Officer; and Pete Rogers, Chief Financial Officer, will host the call. To participate in the call, dial 877-303-6235 (toll free) or 631-291-4837 (toll) and reference "Echo Global Logistics." To listen to a live webcast of the call, visit the Echo website at https://ir.echo.com. A replay of the webcast will be available for one year following the live webcast in the Investor Relations section of the Echo website. To listen to an audio replay, call 855-859-2056 (toll free) or 404-537-3406 (toll) and enter conference ID 7568389. The audio replay will be available through August 4, 2021.

Non-GAAP Financial Measures

This release includes the following financial measures defined as "Non-GAAP financial measures" by the Securities and Exchange Commission (the "SEC"): Adjusted gross profit, adjusted gross profit margin, EBITDA, Adjusted EBITDA and Non-GAAP fully diluted EPS. Adjusted gross profit is calculated as gross profit adjusted to exclude internal use software depreciation. It also represents revenue minus transportation costs. Adjusted gross profit margin is calculated as adjusted gross profit (as previously defined) divided by revenue. EBITDA is defined as net income excluding the effects of depreciation, amortization, cash and non-cash interest expense and income taxes. Adjusted EBITDA is defined as EBITDA (as previously defined) excluding the changes in contingent consideration and stock compensation expense. Non-GAAP fully diluted EPS is defined as fully diluted EPS excluding changes in contingent consideration, amortization, non-cash interest expense, stock compensation expense and the tax effect of these adjustments. We believe such measures provide useful information to investors because they provide information about the financial performance of the Company's ongoing business.

Adjusted gross profit, adjusted gross profit margin, EBITDA, Adjusted EBITDA and Non-GAAP fully diluted EPS are used by management in its financial and operational decision-making and evaluation of overall operating performance. These measures may be different from similar measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation of Non-GAAP Financial Measures" included in this release.

Forward-Looking Statements

All statements made in this release, other than statements of historical fact, are or may be deemed to be forward-looking statements. These statements are forward-looking statements under the federal securities laws. We can give no assurance that any future results discussed in these statements will be achieved. These statements are based on current plans and expectations of Echo Global Logistics and involve risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. Information concerning these risks, uncertainties and other factors is contained under the headings "Risk Factors" and "Forward-Looking Statements" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020, and other filings with the SEC.

About Echo Global Logistics

Echo Global Logistics, Inc. (NASDAQ: ECHO) is a leading Fortune 1000 provider of technology-enabled transportation and supply chain management services. Headquartered in Chicago with more than 30 offices around the country, Echo offers freight brokerage and Managed Transportation solutions for all major modes, including truckload, partial truckload, LTL, intermodal, and expedited. Echo maintains a proprietary, web-based technology platform that compiles and analyzes data from its network of over 50,000 transportation providers to serve 35,000 clients across a wide range of industries and simplify the critical tasks involved in transportation management. For more information on Echo Global Logistics, visit: www.echo.com.

ECHO: Earnings

INVESTOR RELATIONS CONTACTS:

Pete Rogers
Chief Financial Officer
Echo Global Logistics
312-676-4584

Zach Jecklin
SVP of Strategy
Echo Global Logistics
312-784-2046

MEDIA CONTACT:

Christopher Clemmensen
SVP of Marketing
Echo Global Logistics
312-784-2132

Summarized financial results and select operating metrics are as follows:

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SOURCE Echo Global Logistics, Inc.