Daseke Reports Record 2Q 2018 Earnings, Increases Full-Year Outlook
Flatbed and specialized trucking company Daseke Inc. reported strong growth for the second quarter of 2018, as acquisitions the growing company made during the past 12 months propelled its financial results.
Separately, the company announced that it has added another fleet to its portfolio.
Daseke on Aug. 9 reported that second-quarter net income jumped to $13.5 million, or 20 cents per share, compared with a loss of $4.1 million, or 15 cents per share, in the 2017 period. Second-quarter revenue increased to $376.9 million compared with $197.3 million, a 91% year-over-year improvement.
“The momentum in our business has continued into the second quarter, with strong growth in revenue and adjusted [earnings before interest, taxes, depreciation and amortization],” said CEO Don Daseke in a statement.
In the company’s flatbed division, revenue increased 87% to $162.2 million compared with $86.9 million a year ago. Daseke said the December 2017 acquisition of TSH & Co. played a major role in the increase, as did a 13% increase in flatbed rate per mile and 7% growth in revenue per tractor. The division’s operating income rose 47% to $9.3 million from $6.3 million in 2017.
Daseke’s specialized segment saw second-quarter revenue up 95% to nearly $218.4 million compared with $112 million in 2017. The improvement was driven by six acquisitions since May 2017 as well as a 10% increase in specialized rate per mile and 17% growth in revenue per tractor. Operating income for the segment rose 55% to $7.1 million from $4.6 million in 2017.
On an Aug. 9 conference call with analysts and reporters, Daseke’s leadership announced an increase in the company’s full-year outlook. Daseke now expects 2018 revenue of approximately $1.55 billion, up from the previous estimate of $1.35 billion. The company reported full-year 2017 revenue of $846.3 million.
Daseke said the second-quarter results show the company’s long-term plans to expand and earn more of the flatbed and specialized transportation market is working.
“Long term we’ll be judged by our results, we’ll be judged by our growth rate, we’ll be judged by our execution,” he said.
The company on Aug. 2 announced its latest acquisition — the purchase of Memphis, Tenn.-based Builders Transportation Co. for $53.8 million, including $3.4 million in Daseke stock. As has been the case in other acquisitions, Daseke is retaining the company’s senior leadership and employees.
“We’ve had Builders Transportation on our radar for quite some time – we’ve been impressed with the focus and family-rooted culture of the company,” Daseke remarked. “The company has been in business since 1954 and it has a long legacy as a family-run operation.”
“We look for quality companies that have a long history, a long legacy, a proven management team that is looking to stay and be with us and help us build Daseke — and Builders hits that mark,” Daseke Senior Vice President Greg Hirsch told Transport Topics.
“It’s about the people. Some of these people have been with us their entire career — some of our drivers have been with us 30 years, a million miles — and just the thought of turning it over to someone else never really felt right,” Builders CEO John Phillips told TT.
Builders operates primarily in the eastern two-thirds of the United States, hauling coil steel, wire products, structural and sheet steel, aluminum, building materials, cast iron and other products. It has more than 320 trucks and nearly 500 spread-axle trailers. The company generated more than $72 million in business in 2017.