Roadrunner Completes Strategic Transformation, Focuses on LTL Business
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Roadrunner Transportation Systems said it consists solely of its less-than-truckload operations, having finished its multiyear restructuring plan earlier this year.
“The real key takeaway for us is that Roadrunner’s best days was when we were focused on LTL,” Roadrunner President Frank Hurst told Transport Topics Aug. 25. “We’re getting back to our roots of being a strong LTL company focused on quality and service throughout the U.S.”
Roadrunner began the restructuring plan to refocus on core competencies and turn around its finances.
The Downers Grove, Ill.-based company made the final steps in the plan to return to an LTL even as the coronavirus was wreaking havoc on the economy earlier this year.
“We have a lot of improvements we need to continue to make as a company and we got a good line of sight on those items,” Hurst said.
Roadrunner announced the completion of its restructuring plan Aug. 17 after finalizing the sales of three truckload segment businesses. Rich Logistics and Integrated Services were sold to an undisclosed strategic buyer. Roadrunner Temperature Controlled was sold to Laurel Oak Capital Partners.
Ascent Global Logistics was a major piece of the logistics side of the company but was officially spun off into a privately held business Aug. 7.
Roadrunner disclosed it was narrowing its strategic focus to the LTL and logistics segments in August 2019. The company sold its Intermodal Services group in November 2019. It then divested its flatbed unit in December 2019. The Prime Distribution segment was sold in March and Stagecoach in April.
“The results of the transformation and divestitures of businesses that we have done has really allowed for a net cash position today,” Hurst said. “Meaning even though we have a very modest amount of debt today, we have more cash than debt. It’s the healthiest balance sheet we’ve had in recent history.”
Hurst added that the improved finances have not been the main goal of the restructuring plan. The real focus is ensuring the company is providing quality services. It is also about the customer and driver experience. He said if those things are done right the finances will take care of themselves.
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“It’s important to talk about the structural changes we’ve made as an organization but this is really about a culture shift,” Hurst said. “We really feel if we’re going to have a premier LTL service throughout the U.S., then it’s really important to us that we have a high level of engagement with our employees, our independent contractors and partners.”
Roadrunner also opened new facilities in Riverside, Calif., on July 22 and in Philadelphia on Aug. 3. A new Chicago service center has recently opened. The company has also been growing its fleet.
“Our structure today will always be around LTL,” Hurst said. “This is a massive market. We’re one of only a handful of companies that has a national LTL network. I think that’s important because we have a really amazing platform that we build on. It’s a very flexible and agile network.”
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