Daseke Reports Net Income of $15.7M for Q3
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Daseke Inc. reported that its third-quarter bottom line result rebounded to a profit from a loss a year ago.
The Addison, Texas-based flatbed transportation and logistics company on Oct. 30 posted net income of $15.7 million, or 22 cents per share , attributable to common stockholders, for the three months ending Sept. 30. That compared with a net loss of $273.3 million, or a loss of $4.25 a share, during the same time the previous year. Total revenue decreased by 17% to $375.8 million from $450.4 million.
Wall Street analysts polled by Zacks Consensus Estimate were looking for a loss of 1 cent per share and quarterly revenue of $354.75 million.
“We are pleased to report another very strong quarter of financial and operational results,” Daseke CEO Chris Easter said in a statement. “While we continue to face demand headwinds that have negatively impacted the company’s freight volumes and revenues, the significant work we have undertaken to improve our operational performance and our financial returns helped to more than overcome those top-line challenges.”
Easter added, “The ongoing commitment to our key focus areas, including cost discipline and best-in-class operations, has helped solidify our foundation and established improved consistency to our results. This more resilient foundation has better positioned Daseke to execute upon unique market opportunities.”
The specialized solutions segment reported revenue decreased 18% to $235.2 million from $288 million during the prior year quarter. Net income for the segment increased to $20.4 million from a net loss of $162.0 million during the same time last year. This was primarily driven by strong wind energy and high-security cargo revenues and margins, which were partially offset by lower freight volumes. Rate per mile in the quarter decreased 7% to $3.28, but revenue per tractor increased 4.7% to $67,500.
The flatbed solutions segment reported Q3 revenue decreased 15% to $144.5 million from $169.8 million during the same time last year. Net income for the segment increased to $4.6 million from a net loss of $96.3 million. While the segment felt the impact of lower freight volumes due to the impact of the coronavirus pandemic on various industrial end markets and fleet downsizing efforts, those effects were partially offset by operational integrations and business improvement plans, as well as slightly improved freight rates and brokerage revenues. Rate per mile increased 2% $1.94 from the prior year quarter. Revenue per tractor increased 1% to $43,000.
Daseke ranks No. 23 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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