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Echo Global Logistics reported decreased revenue and net income as the softer freight market and weaker spot prices took a toll on earnings.
Doug Waggoner, board chairman and CEO of the Chicago-based logistics company, said the silver lining was in some volume numbers.
“We again grew volumes in our truckload contract freight, less-than-truckload freight and managed transportation business,” Waggoner said in a July 24 news release. “In addition, we improved our net revenue margin again this quarter, while at the same time reducing our selling, general and administrative costs and increasing our free cash flow compared to the prior year.”
Echo Global earned $5.1 million, or 19 cents a share, on gross revenue of $553.8 million in the three months ended June 30, compared with $7.7 million, or 28 cents a share, on gross revenue of $634.8 million in the same period a year ago.
Net revenue, which is gross revenue minus the cost of purchased transportation, fell 5.8% to $100.6 million in the second quarter of 2018, from $106.8 million in 2018.
Echo said managed transportation revenue decreased 4.9% to $125.6 million, and transactional revenue, which consists primarily of load matching, decreased 14.8% to $428.2 million, both from the second quarter of 2018.
Looking ahead, Chief Financial Officer Kyle Sauers said the company expects revenue for the third quarter to be between $530 million and $570 million, and Echo Global is updating full year 2019 revenue guidance to be in the range of $2.1 billion to $2.25 billion.
Echo ranks No. 38 on the Transport Topics Top 50 list of the largest logistics companies in North America.