Proficient Auto Logistics Reports Third Quarter 2024 Financial Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--November 08, 2024--
Proficient Auto Logistics, Inc. (NASDAQ: PAL) (the "Company" or "Proficient") today reported its financial results for the three months ended September 30, 2024, and comparative summary financial information for the Founding Companies (as defined below) on a combined basis for the three months ended September 30, 2024.
Third Quarter Summary (third quarter 2023 information on a combined basis)
Total Operating Revenue of $91.5 million, a decrease of 12.5%
Total Operating Loss of ($2.2) million, versus operating income of $8.2 million
Adjusted Operating Income(1) of $1.1 million, versus operating income of $8.2 million
Adjusted Operating Ratio(1) of 98.8% compared to 92.2%
Total Units delivered of 499,311, a decrease of 0.4%
(1) Adjusted Operating Income and Adjusted Operating Ratio are non-GAAP
financial measures. See "Summary Unaudited Combined Financial
Information" on the following page for additional information regarding
the use of Adjusted Operating Income and Adjusted Operating Ratio and a
reconciliation to the most comparable GAAP measure.
Rick O'Dell, Proficient's Chief Executive Officer, commented, "Proficient's third quarter financial results reflect broad-based reductions in auto shipments as manufacturers sought to address excessive inventory on dealer lots. Our market share continued to increase over the course of the quarter, however, as evidenced by a year-over-year volume decline of 0.4% in our portfolio compared to an overall 1.9% decline in SAAR for the same period. The soft market reduced the level of demand for our dedicated fleet service as well as much of the opportunity for ad hoc spot buys during the quarter -- both of which typically command a price premium relative to contract services -- and this had a detrimental impact on our revenue mix and operating ratio during the quarter."
Progress continues on Proficient's integration of the five Founding Companies, as well as now bringing Auto Transport Group ("ATG") into this process following the successful completion of its acquisition, which closed on August 16, 2024. The Company is on track to have all operating subsidiaries on a common transportation management system before the end of this year and common financial accounting and reporting systems by January 2025.
On May 13, 2024, Proficient completed the initial public offering (the "IPO") of its common stock. Prior to the IPO, Proficient had entered into agreements to acquire in multiple, separate acquisitions (the "Combinations") five operating businesses and their respective affiliated entities, as applicable, operating under the following names: (i) Delta Auto Transport, Inc. ("Delta"), (ii) Deluxe Auto Carriers, Inc. ("Deluxe"), (iii) Sierra Mountain Group, Inc. ("Sierra"), (iv) Proficient Auto Transport Inc. ("Proficient Transport"), and (v) Tribeca Automotive Inc. ("Tribeca" and, together with Delta, Deluxe, Sierra, and Proficient Transport, the "Founding Companies"). On May 13, 2024, in connection with the closing of the IPO, Proficient also completed the acquisitions of all the Founding Companies.
For accounting and reporting purposes, Proficient has been identified as the designated accounting acquirer of each of the Founding Companies and Proficient Transport has been identified as the designated accounting predecessor to the Company. As a result, the unaudited condensed consolidated financial statements as of, and for the three and nine months ended, September 30, 2024 for each of Proficient and Proficient Transport are to be included in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. The Company is not required to provide, and the Quarterly Report on Form 10-Q will not contain, pro forma financial data giving effect to the completion of the Combinations and the completion of the Company's IPO and the use of the proceeds therefrom. However, the Company is providing below summary unaudited combined financial information for the three and nine months ended September 30, 2024. The summary unaudited combined financial information has been prepared by, and is the responsibility of, Proficient's and the Founding Companies' management. This information has not been subjected to audit, review or agreed-upon procedures of any audit firm, and therefore, there is no independent auditors' opinion or any other form of assurance with respect thereto.
Summary Unaudited Combined Financial Information(1)
($000s) Three months ending - Nine months ending -
-------------------------- -------------------------
9/30/2024 9/30/2023 9/30/2024 9/30/2023
--------- --------- --------- ---------
Total
Operating
Revenue $ 91,506 $ 104,565 $ 293,669 $ 305,150
Total
Operating
Income /
(Loss) (2,186) 8,205 12,856 22,885
Add back:
Amortization
of
Intangibles 2,217 - 3,294 -
Stock
Compensation
expense 1,071 - 1,684 -
--------- --------- --------- ---------
Adjusted
Operating
Income(2) 1,102 8,205 17,834 22,885
Adjusted
Operating
Ratio(2) 98.8% 92.2% 93.9% 92.5%
Income /
(loss) before
income taxes (1,693) 7,235 10,914 19,156
Add back:
Depreciation &
Amortization 8,784 4,781 16,792 14,096
Stock
Compensation
Expense 1,071 - 1,684 -
Interest
Expense 1,397 961 3,831 3,406
--------- --------- --------- ---------
Adjusted
EBITDA(3) 9,559 12,977 33,221 36,658
Adjusted
EBITDA
Margin(3) 10.4% 12.4% 11.3% 12.0%
--------- --------- --------- ---------
(1) The amounts shown above reflect the unaudited summary combined financial
results of the five Founding Companies for the full three-month and
nine-month periods presented without any pro forma adjustments that would
give effect to the completion of the IPO or any related transaction
expenses or adjustments recognized as a result of the IPO and concurrent
Combinations. The results of Proficient (acquiror entity) are included in
the three and nine months ended September 30, 2024; however, they reflect
only those operating expenses incurred following the closing of the IPO
and concurrent Combinations (May 13 -- September 30, 2024). There are no
comparative expenses of Proficient during the three and nine months ended
September 30, 2023.
(2) Our management team reviews Adjusted Operating Income and the related
Adjusted Operating Ratio, both of which are non-GAAP financial measures,
as a basis for comparing the results of financial reporting periods
excluding the impact of non-cash expenses related solely to our recent
IPO and the concurrent corporate combinations. These measures provide
management with the requisite insight regarding progress on operating and
integration initiatives. The table above provides a reconciliation of
Adjusted Operating Income to the most comparable GAAP measure and
Adjusted Operating Ratio flows from that.
(3) Our management team reviews Adjusted EBITDA and Adjusted EBITDA Margin,
both of which are non-GAAP financial measures, to measure the operating
performance and financial condition of our business and to make strategic
decisions. See the Appendix for additional information regarding the use
of Adjusted EBITDA and a reconciliation to the most comparable GAAP
measure and Adjusted EBITDA Margin flows from that.
Revenue and Profitability(1)
Select
Operating
Metrics Three months ending - Nine months ending -
-------------------------- ---------------------------
9/30/2024 9/30/2023 9/30/2024 9/30/2023
--------- ----------- ---------- -----------
Unit Volume
- Company
Deliveries 167,772 165,859 480,222 474,125
Revenue /
Unit -
Company
Deliveries $ 194.18 $ 192.91 $ 197.42 $ 206.53
Unit Volume
-
Subhaulers 331,539 335,442 1,017,094 973,395
Revenue /
Unit -
Subhaulers $ 155.98 $ 189.10 $ 176.18 $ 194.22
Percent
Revenue,
Company 39% 34% 35% 34%
Percent
Revenue,
Subhaulers 61% 66% 65% 66%
(1) The amounts shown above reflect combined information for the five
Founding Companies for the full three-month and nine-month periods
presented without any pro forma adjustments that would give effect to the
completion of the IPO or any related transaction expenses or adjustments
recognized as a result of the IPO and concurrent Combinations. The
information for Proficient (acquiror entity) are included in the three
and nine months ended September 30, 2024.
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