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Daseke Inc. reported second-quarter net income climbed out of the red compared with the year-ago period, lifted by changes over the past year to operational and cost improvement plans.
The Addison, Texas-based flatbed transportation and logistics company posted net income of $500,000, or 1 cent a diluted share, for the three months ending June 30. That compared with a net loss of $6.4 million, or 12 cents, during the same time the previous year.
Revenue, however, decreased 22% to $351.7 million from $450.6 million.
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“While the last few months have been challenging for our industry and our people, I am very proud of how our entire team has stepped up in the face of significant change to safely deliver both value for our customers and strong results for our stakeholders,” Daseke CEO Chris Easter said in a statement. “The earnings power of our organization is starting to show through despite the challenging environment brought on by the pandemic.”
Easter added those improvements were driven by the transformational work the company has done over the past year to improve operations and financial returns. He said the improved operational and costs plans helped the company more than double its quarterly operating income performance over the year despite softer market conditions impeding top-line results.
“We took swift action at the onset of the pandemic to drive out cost and best optimize our assets for the changing environment,” Easter said. “These actions, on top of the extensive operational improvements and integrations we’ve executed, have created further resilience in our business model.”
The results were mixed when it came to expectations by investment analysts on Wall Street, who had been looking for a loss of 9 cents per share and quarterly revenue of $373.15 million, according to Zacks Consensus Estimate.
The specialized solutions segment reported quarterly revenue decreased 21% to $221.5 million compared with $280.7 million during the same time the previous year. Net income was $8.7 million compared with $6.1 million in the prior year. Rate per mile of $3.16 was down 11% from the year before, and revenue per tractor decreased 13% to $56,400.
The flatbed solutions segment reported that revenue decreased 22% to $137.2 million from $174.9 million the same quarter the year before. Net income for the segment was $6 million, compared with $2.3 million the prior year. Rate per mile decline 7% from the prior year to $1.80. Revenue per tractor decreased 5% to $40,100.
Daseke was founded in 2008. It has a fleet of more than 5,500 tractors and 12,000 flatbed and specialized trailers.
Easter said the company’s freight volumes incrementally improved week-to-week through May and June, albeit off a low base, after troughing in April.
“We anticipate that we will see consolidated freight volumes incrementally improve over the coming months, in line with the overall economy’s pace of recovery,” he said.
Daseke ranks No. 23 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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