Daseke Reports $424.6M Revenue for Q3
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Daseke Inc. saw revenue and earnings increase during the third quarter of 2021, the company reported Oct. 22.
The Addison, Texas-based flatbed transportation and logistics company posted net income of $20.9 million, or 30 cents a diluted share, for the three months ending Sept 30. That compared with $12.7 million, 17 cents, during the same time the previous year.
The total revenue increased by 13% to $424.6 million from $375.8 million.
“We are pleased to report another quarter of strong operating and financial results, as Daseke continued to decisively execute against the backdrop of a strong freight environment,” Daseke CEO Jonathan Shepko said in a statement. “Once again, we demonstrated the strength of our operating model, effectively flexing our ‘asset-right’ fleet in order to service the needs of our customers in this unprecedented market.”
Investment analysts on Wall Street had been looking for 32 cents per share and quarterly revenue of $420.05 million, according to Zacks Consensus Estimate.
“Prospectively, we plan to deliver meaningful value to our shareholders by continuing to leverage our scale and our differentiated capabilities,” Shepko said, “while also maintaining a keen focus on advancing our operational improvement initiatives.”
The specialized solutions segment reported that revenue increased 3.7% to $244 million from $235.2 million during the same time last year. Income for operations decreased 4.8% to $29.6 million from $31.1 million. The segment includes company freight, owner-operator freight, brokerage and logistics.
Company freight revenue from specialized solutions decreased 4.5% to $123.9 million from $129.7 million last year. Owner-operator freight revenue increased 13% to $42.6 million from $37.7 million. Brokerage revenue increased 7.7% to $51.5 million from $47.8 million. Logistics revenue decreased 5.5% to $8.6 million from $9.1 million.
The specialized solutions segment benefited from sustained demand strength and improving freight rates, which were primarily serving construction, high-security cargo and glass. That was partially offset by the normalization of high-margin wind energy market project revenue versus the prior-year quarter. The business mix shift led to a 4% increase in average freight rate per mile, while revenue per tractor increased by 4.1% versus last year.
The flatbed solutions segment saw revenue increase 27.3% to $184 million from $144.5 million. Income from operations for the segment increased 127.4% to $21.1 million from $9.3 million. The segment was also broken down among company freight, owner-operator freight, brokerage and logistics.
Company freight revenue for flatbed solutions decreased 4.2% to $45.1 million from $47.1 million last year. Owner-operator freight increased 32.7% to $89.2 million from $67.2 million. Brokerage revenue increased 72.7% to $30.4 million from $17.6 million. Logistics revenue increase 57.1% to $1.1 million from $700,000.
The flatbed solutions segment benefited from year-over-year improvement in the freight rate environment. Rates for the company increased a record 32.5% compared to the prior-year quarter and more than offset the impact of prior fleet downsizing and the mix shift toward asset-light reflecting constraints due to asset availability. Freight volumes declined due to fleet-rightsizing efforts over the prior year and into 2021, coupled with outstanding truck backfill orders due to new truck shortages in the market. But load volume increased as excess capacity was directed to the brokerage business.
Daseke ranks No. 26 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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