XPO Logistics, Inc. (NYSE:XPO) Q1 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 08:30 am ET

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XPO Logistics, Inc. (NYSE:XPO) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the XPO Logistics Q1 2018 Earnings Conference Call and Webcast. My name is Melissa, and I'll be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded.

Before the call begins, let me read a brief statement on behalf of the Company regarding forward-looking statements and the use of non-GAAP financial measures. During this call, the Company will be making certain forward-looking statements within the meaning of applicable security laws, which, by their nature, involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the Company's SEC filings. The forward-looking statements in the Company's earnings release or made on this call are made only as of today and the Company has no obligation to update any of these forward-looking statements, except to the extent required by law.

During this call, the Company may also refer to certain non-GAAP financial measures as defined under applicable SEC rules. Reconciliations of such non-GAAP financial measures to the most comparable GAAP measures are contained in the Company's earnings release and the related financial tables or in the Investors section on the Company's website at www.xpo.com. You can find a copy of the Company's earnings release, which contains additional important information regarding forward-looking statements and non-GAAP financial measures in the Investors section on the Company's website.

I will now turn the call over to Brad Jacobs. Mr. Jacobs, you may begin.

Executive
Bradley S. Jacobs

Thank you, operator. Good morning, everybody. Thanks for joining our earnings call. With me in Greenwich are John Hardig, our CFO; Scott Malat, our Chief Strategy Officer; and Tavio Headley our Head of IR.

First of all, I'm happy to welcome Kenny Wagers to the team as our new Chief Operating Officer and to congratulate Troy Cooper on his promotion to President. These appointments will support the high levels of organic and acquisition related growth we're anticipating.

As you saw from the press release, we had a strong start to 2018. We posted record first quarter revenue, net income, EPS and adjusted EBITDA. We generated robust organic revenue growth of 11% and we increased our adjusted EBITDA 14% year-over-year to a first quarter record of $330 million. The growth was broad-based across our operations. We grew contract logistics organic revenue 14% and last mile 15%, driven by demand from our e-commerce customers. And in a tight market, we grew freight brokerage revenues 30%. Our logistics business keeps picking up steam. We brought 20 new sites online in the first quarter. We're now opening on average two facilities a week.

Company-wide, our sales pipeline stands at a record $3.66 billion, which is 23% higher than a year ago. In the first quarter, we signed up new business of $972 million, that's up 36%, and a new quarterly record for us. Since the beginning of the year, we've been launching one