The company is buying the brokerage business of UPS. Building scale RXO, which was spun out of trucking company XPO in November 2022, is focused on brokerage, or connecting customers in need of shipping services to shippers. The deal would make RXO the third-largest U.S. broker, adding about 15,000 customers to its existing 4,000 and pushing RXO deeper into verticals including food and beverage. "RXO's highly accretive acquisition of Coyote will immediately increase the scale of our brokerage business, prov ...

Key Takeaways RXO shares soared in intraday trading Monday, a day after the package delivery firm agreed to buy UPS's freight brokerage unit, Coyote Logistics, for $1.025 billion. RXO said the acquisition would created the third-largest brokered transportation provider in North America, and be immediately accreditive to its adjusted EPS and adjusted free cash flow. UPS explained that the deal would help the company focus more on its core business. RXO (RXO) shares soared in intraday trading Monday, a day af ...

Exhibit 2.1 EXECUTION VERSION PURCHASE AGREEMENT BY AND BETWEEN UNITED PARCEL SERVICE OF AMERICA, INC., UPS CORPORATE FINANCE S.À R.L., UPS SCS (UK) LTD. AND RXO, INC. Dated as of June 21, 2024 TABLE OF CONTENTS | | | Page | | --- | --- | --- | | ARTICLE I DEFINITIONS | | 2 | | Section 1.1 | Definitions | 2 | | Section 1.2 | Other Definitions | 20 | | Section 1.3 | Construction | 22 | | ARTICLE II PURCHASE AND SALE | | 23 | | Section 2.1 | Purchase and Sale of Equity Interests | 23 | | Section 2.2 | Purchas ...

Monty Rakusen Summary Following my coverage on RXO, Inc. (NYSE:RXO) in Dec'23, which I reiterated a hold rating as I was worried about the pricing headwinds despite positive indicators for a volume recovery, this post is to provide an update on my thoughts on the business and stock. I am upgrading my recommendation from hold to buy as I see greater visibility to a recovery in the coming years, with expectations that RXO can accelerate growth to 20% in FY26 and EBITDA margins to hit 6%. Investment thesis On ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ Form 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 UNITED STATES or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-41514 _______________________ ...

RXO, Inc. (NYSE:RXO) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET Company Participants Drew Wilkerson - CEO James Harris - CFO Jared Weisfeld - CSO Conference Call Participants Stephanie Moore - Jefferies Tom Wadewitz - UBS Scott Schneeberger - Oppenheimer Brandon Oglenski - Barclays Ken Hoexter - Bank of America Jason Seidl - TD Cowen Ravi Shanker - Morgan Stanley Jordan Alliger - Goldman Sachs Daniel Imbro - Stephens Inc. Kevin Gainey - Thompson Davis Operator Welcome to the 1Q 2024 RXO Earning ...

– LTL: up more than 30% 14 7 Diverse exposure across attractive end markets Adjusted diluted earnings (loss) per share 2 $ (0.03) $ 0.11 Financial reconciliations (cont.) RXO • Stock-based compensation: $24-$26M 3 16 1 See the "Non-GAAP financial measures" section. 2 Includes the cash component of these line items. 3 Adjusted EBITDA for all periods presented is reconciled above. 4 Free cash flow conversion from adjusted EBITDA is calculated as free cash flow divided by adjusted EBITDA. 5 Adjusted free cash ...

Business Model and Operations - The company operates an asset-light business model that generates strong free cash flow and high returns on invested capital[26]. - The proprietary RXO Connect™ digital brokerage platform enhances service delivery and operational productivity, leveraging advanced technology for real-time freight management[29]. - The company’s managed transportation service includes bespoke load planning and performance monitoring, enhancing revenue synergy across its service offerings[19]. - The company’s last mile service is the largest provider of outsourced last mile transportation for heavy goods in the U.S., serving a diverse customer base[20]. - The company benefits from a long-tenured customer base across various sectors, including e-commerce and retail, which supports revenue stability[26]. - The company aims to capitalize on increasing broker penetration in the for-hire trucking industry, driven by shippers' growing preference for digital brokerage services[30]. - The company’s freight forwarding service covers approximately 150 countries and territories, enhancing its global reach and operational capabilities[21]. Financial Performance and Customer Base - The top 20 customers accounted for approximately 38% of the company's revenue in 2023, with the largest customer contributing about 9.5%[32]. - The top five customers accounted for approximately 21% of the company's total revenue for the year ended December 31, 2023, with the largest customer representing about 9.5%[115]. - The company has experienced higher volumes in the fourth quarter due to peak season demand from consumer sectors[53]. - RXO's volumes typically increase in the fourth quarter due to peak season demand from customers in consumer sectors[53]. Workforce and Employee Engagement - As of December 31, 2023, the company operated with a total workforce of 8,432, including 6,051 full-time and part-time employees and 2,381 temporary workers[56]. - 45% of the company's employees are in hourly roles, while 55% are in salaried positions, with approximately 38% of employees being female[56]. - The company has a strong commitment to diversity, equity, and inclusion, encouraging employees to bring their authentic selves to work[57]. - RXO's total rewards program is designed to attract and retain talent, providing competitive compensation and benefits from day one[59]. - The company has a focus on professional development and offers numerous career development opportunities, including workshops and leadership training[58]. Regulatory and Compliance - The company is subject to various federal and state regulations, including those related to emissions and independent contractor classifications, which could impact operational costs and legal exposure[49][50]. - RXO's operations are subject to various regulations, including those from the Federal Motor Carrier Safety Administration and state regulations affecting motor carriers[38][40]. - The company is subject to environmental regulations concerning hazardous materials and emissions, with a focus on compliance and risk management[50][51]. - The company maintains insurance for various liabilities, including commercial automobile liability and workers' compensation, with coverage limits deemed reasonable based on historical claims[52]. Market Conditions and Risks - The transportation services industry is highly competitive, with risks including reduced revenues and profit margins due to competition from other companies and pricing pressures during economic downturns[69]. - Economic recessions can significantly impact demand for transportation services, leading to reduced revenues and increased competition for pricing[70]. - Fluctuations in fuel prices can materially affect profitability, as fuel expenses are a major cost for independent contractors and third-party carriers[73]. - A reduction in overall freight volume can limit growth opportunities, and financial distress among customers may lead to increased working capital needs[75]. - Labor disputes and organizing efforts could disrupt operations, negatively impacting revenues and customer relationships[87]. - The company relies on third-party carriers for operations, and any changes in their classification as independent contractors could increase operational costs and liabilities[83]. - Cybersecurity risks pose a threat to the company's operations, with potential breaches leading to operational difficulties and reputational harm[93]. - Changes in international trade policies and tariffs could adversely affect global transportation volumes and customer demand[75]. Corporate Structure and Governance - The company completed its separation from XPO, Inc. on November 1, 2022, and began trading on the New York Stock Exchange under the ticker symbol "RXO"[22]. - RXO began regular trading as a standalone public company on November 1, 2022, with historical financial information not necessarily indicative of future results[122]. - RXO's historical financial results included allocations of corporate expenses from XPO, which may be less than the expenses incurred as a separate entity[123]. - RXO may face increased volatility in cash flows and working capital requirements post-Separation, potentially necessitating additional financing[123]. - The company has a strong governance structure and commitment to employee engagement, which supports its operational effectiveness and corporate culture[54]. - RXO's amended and restated certificate of incorporation includes provisions that may deter hostile takeovers, potentially affecting stockholder interests[136]. - The Separation may trigger tax liabilities under Section 355(e) of the Internal Revenue Code, with RXO required to indemnify XPO for such taxes[138]. - RXO's exclusive forum provision may discourage lawsuits against the company and its directors[139].

RXO, Inc. (NYSE:RXO) Q4 2023 Earnings Conference Call February 8, 2024 8:00 AM ET Company Participants Drew Wilkerson - CEO James Harris - CFO Jared Weisfeld - CSO Conference Call Participants Ken Hoexter - Bank of America Jordan Alliger - Goldman Sachs Stephanie Moore - Jefferies Brandon Oglenski - Barclays Allison Poliniak - Wells Fargo Scott Schneeberger - Oppenheimer Ravi Shanker - Morgan Stanley Scott Group - Wolfe Research Bruce Chan - Stifel Jack Atkins - Stephens Operator Welcome to RXO Q4 2023 Earn ...

$140 Adjusted EBITDA and margin %1Brokerage y/y volume growth Solid execution in a prolonged soft freight market RXO's brokerage business continues to outperform and gain profitable market share | --- | --- | --- | --- | --- | --- | |-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|----------------------------------------------------------------------------------------|-------|- ...