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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