Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $28 million, down from $38 million in Q2 2023, with an adjusted EBITDA margin of 3%, up 140 basis points sequentially but down 90 basis points year-over-year [13][21] - Revenue decreased to $930 million from $963 million year-over-year, with a gross margin of 19%, up 160 basis points sequentially and 40 basis points year-over-year [13][21] - Brokerage gross margin was 14.7%, up 50 basis points sequentially but down 70 basis points year-over-year [14][27] Business Line Data and Key Metrics Changes - Brokerage revenue was $543 million, down 4% sequentially and 3% year-over-year, with full truckload volume down 2% and LTL volume up 40% year-over-year [14][24] - Complementary Services revenue was $421 million, up 10% sequentially but down 4% year-over-year, with last mile stops growing by 7% year-over-year [15][24] - Last mile gross margin increased to 23%, up 240 basis points sequentially and 170 basis points year-over-year, driven by improved volume and profitability initiatives [15][24] Market Data and Key Metrics Changes - The national load-to-truck ratio averaged approximately 4.2% in Q2, indicating a soft freight market but showing some improvement [29][31] - Carrier rates have started to increase, which may put short-term pressure on gross margins, but this is seen as a sign of an unsustainable level for many carriers [8][9] - Demand indicators remain mixed, with inflation moderating but consumer confidence and the labor market showing signs of weakness [9][31] Company Strategy and Development Direction - The company is focused on strategic investments, including the planned acquisition of Coyote Logistics, expected to close in the first half of Q4 2024 [12][37] - RXO aims to continue taking profitable market share and expects to see sequential and year-over-year adjusted EBITDA growth in Q3 2024 [11][21] - The company is committed to improving last mile profitability and has a substantial sales pipeline in managed transportation, exceeding $1.6 billion [6][37] Management's Comments on Operating Environment and Future Outlook - Management noted that while the freight market remains soft, there are encouraging signs, and they expect to capture spot volume and project freight when the market recovers [9][11] - The company anticipates a decline in brokerage volume by low to mid-single digits year-over-year in Q3, with LTL volume expected to grow [10][33] - Management expressed confidence in the ability to grow adjusted EBITDA sequentially and year-over-year despite the current market conditions [11][21] Other Important Information - The company ended the quarter with $7 million in cash and approximately $600 million in committed liquidity, with a gross leverage ratio of 3.3 times trailing 12 months adjusted EBITDA [18][19] - RXO expects annualized cost reductions of approximately $35 million to $40 million, with significant progress made in cost initiatives [20][21] - Adjusted free cash flow was negative $9 million for Q2, slightly better than expectations, impacted by lower profitability levels [17][18] Q&A Session Summary Question: Volume expectations for Q3 - Management expects volume to improve slightly sequentially from Q2 to Q3, despite year-over-year declines in full truckload volume [40][41] Question: Revenue per load outlook - Management noted that full truckload revenue per load inflected positively in June, and they anticipate continued improvement in this metric [42][43] Question: Market conditions and pricing opportunities - Load-to-truck ratios are still below levels that typically indicate strong spot volume opportunities, with expectations for improvement later in the year [44][45] Question: Drivers of sequential EBITDA improvement - The improvement is primarily driven by cost initiatives, with expectations for leverage ratios to decrease in Q3 [45][46] Question: Coyote acquisition financing - Committed financing is in place for the Coyote acquisition, with expectations that it will be credit neutral [46] Question: Bid season pricing strategy - The company has maintained a transparent pricing strategy, which has been well received by customers [49][50] Question: Cost initiatives performance - Cost initiatives are running as expected, with full impact anticipated in Q3 and Q4 [51][52] Question: Headcount outlook - The company plans to maintain headcount at around 15% for growth, with some areas seeing increases and others remaining flat [60][61] Question: Integration preparation for Coyote - Integration planning is ongoing, with excitement about the acquisition and progress being made [67]

RXO (RXO) came out with quarterly earnings of $0.03 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this transportation services provider would post a loss of $0.04 per share when it actually produced a loss of $0.03, delivering a surprise of 25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. RXO, which belongs to ...

The market expects RXO (RXO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price chang ...

Group 1 - RXO shares experienced an 8.5% increase in the last trading session, closing at $29.39, with a notable trading volume compared to typical sessions, and a total gain of 35.1% over the past four weeks [1] - RXO has gained over 44% in the last month, driven by a significant deal with UPS to acquire Coyote Logistics for more than $1 billion, which has positively impacted RXO's stock performance [2] - RXO is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 75%, with revenues projected at $949.34 million, down 1.4% from the previous year [3] Group 2 - The consensus EPS estimate for RXO has been revised 7% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - RXO holds a Zacks Rank of 3 (Hold), indicating a neutral outlook within the Zacks Transportation - Services industry [4] - Another company in the same industry, Global Business Travel Group, Inc. (GBTG), has a consensus EPS estimate of -$0.03, unchanged over the past month, representing an 87% increase compared to the previous year's EPS [5]

ATLANTA, July 09, 2024 (GLOBE NEWSWIRE) -- Shiplify, the primary accessorial revenue identifier for carriers, shippers and third party logistics (3PL) providers, today announced a strategic partnership with RXO, a leading provider of asset-light transportation solutions. The integration of Shiplify's data with RXO's proprietary RXO Connect™ platform provides RXO's less-than-truckload (LTL) customers with accessorial visibility ahead of delivery, improving transparency during the billing process. "Shiplify n ...

Core Insights - Shiplify has announced a strategic partnership with RXO to enhance accessorial revenue identification for LTL customers, improving transparency in the billing process [1][10] - The integration of Shiplify's AI-driven data with RXO's RXO Connect™ platform provides customers with actionable insights and operational efficiency [2][3] Company Overview - Shiplify specializes in accessorial revenue identification for carriers, shippers, and 3PL providers, offering real-time location data to streamline shipping operations [5] - RXO is a leading provider of asset-light transportation solutions, offering tech-enabled truck brokerage services and other logistics solutions across North America [6] Partnership Benefits - The partnership enhances delivery insights by identifying key attributes such as forklift accessibility and multi-tenant locations, ensuring efficient operations [2][9] - Shiplify's data capture helps RXO customers avoid unexpected challenges and fees associated with limited access and residential deliveries [9][10] Technology Integration - RXO has been utilizing AI and machine learning for over a decade, and the integration with Shiplify further refines logistics operations through improved data accuracy [3][8] - The partnership includes a feedback loop mechanism to ensure data accuracy, allowing users to report issues that can be resolved within 24 hours [10]

Shares of RXO Inc. NYSE: RXO are up more than 20% on the week, something investors probably didn't see coming out of the 'boring' transportation sector. This sector is notorious for having a low beta, English for low volatility. RXO stock has a beta below 1.0, meaning the company's stock price will move less than the daily move in the broader S&P 500 index. RXO 52-Week Range $16.94 Price Target $19.90 Get United Parcel Service alerts: The transportation industry is due for a change, particularly the trucklo ...

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 ...