Financial Performance - Operating revenue for the three months ended June 30, 2024, was $55,908,597, compared to $32,992,576 for the same period in 2023, reflecting a year-over-year increase of approximately 69%[9] - The net loss for the six months ended June 30, 2024, was $3,861,773, translating to a loss per share of $0.43[9] - Total operating expenses for the three months ended June 30, 2024, were $58,516,930, compared to $31,072,677 for the same period in 2023, marking an increase of about 88%[9] - The company reported an operating loss of $2,918,211 for the three months ended June 30, 2024, compared to an operating income of $1,919,899 for the same period in 2023[9] - For the six months ended June 30, 2024, the net loss was $3,861,773, compared to a net income of $3,242,693 for the same period in 2023[12] - Total revenue for the six months ended June 30, 2024, was $202,163,000, compared to $203,121,000 for the same period in 2023, reflecting a slight decrease of 0.5%[44] - Basic earnings per share for the six months ended June 30, 2024, was $0.93, compared to $0.91 for the same period in 2023[44] - Total operating revenue for the six months ended June 30, 2024, was $55,908,597, a decrease from $67,245,707 in the same period of 2023, representing a decline of approximately 16.9%[88] - The net loss for the six months ended June 30, 2024, was $(3,861,773), compared to a net loss of $(20,403,275) for the same period in 2023[91] - Total truckload revenue, excluding fuel surcharge, was $18,349,462 for the six months ended June 30, 2024, down from $23,731,555 in 2023, a decrease of about 22.6%[88] - Total brokerage revenue for the six months ended June 30, 2024, was $37,559,135, compared to $43,514,152 in 2023, reflecting a decrease of approximately 13.7%[88] Assets and Liabilities - Proficient's total current assets as of June 30, 2024, reached $84,086,119, a significant increase from $23,427,551 as of December 31, 2023[8] - Total liabilities as of June 30, 2024, amounted to $140,420,861, compared to $26,361,641 as of December 31, 2023, indicating a substantial increase[8] - Cash and cash equivalents increased to $36,292,813 as of June 30, 2024, from just $4,273 as of December 31, 2023[8] - Accounts receivable, net, rose to $40,060,701 as of June 30, 2024, up from $19,799,044 at the end of 2023, showing a growth of approximately 102%[8] - Proficient's total assets as of June 30, 2024, were $458,647,709, a significant increase from $42,995,033 as of December 31, 2023[9] - As of June 30, 2024, total equity was $318,226,848, reflecting an increase from the previous balance of $389,171 as of March 31, 2024[11] - The balance of retained earnings increased to $7,748,792 as of December 31, 2023, from $4,264,734 as of June 30, 2023[10] - As of June 30, 2024, accrued liabilities totaled $21,751,346, a significant increase from $7,803,359 as of December 31, 2023, reflecting a growth of approximately 178%[53] - The total long-term debt as of June 30, 2024, was $33,189,156, with future maturities totaling $52,384,201, indicating a structured repayment plan over the coming years[62] Acquisitions and Goodwill - Goodwill recorded as of June 30, 2024, was $127,428,122, reflecting the company's acquisitions and growth strategy[8] - The company completed an IPO, resulting in the issuance of 15,768,333 shares, raising $212,291,849 in paid-in capital[11] - Proficient Auto Logistics, Inc. completed its IPO on May 13, 2024, and simultaneously acquired five operating businesses, referred to as the Founding Companies[17] - The total consideration for the acquisitions includes cash and shares of common stock, with specific earn-out provisions based on EBITDA performance for 2024[34] - The Company utilizes push-down accounting for the acquisitions, impacting the condensed consolidated financial statements[19] - The acquisitions are accounted for under ASC 805, with Proficient identified as the accounting acquirer[39] - The fair value of acquired intangible assets is determined using significant estimates, including forecasted revenues and profits[25] - The company recognized $127,428,122 in goodwill primarily from expected synergies and workforce value from acquisitions[42] - The company recorded a contingent liability of $3,095,114 related to an earn-out provision for the acquisition of Deluxe[45] - The company recorded a contingent liability of $4,000,000 related to a class action settlement, which was recognized as an expense in the fiscal year ending December 31, 2022[94] Cash Flow and Expenses - The company reported net cash flows provided by operating activities of $4,364,579 for the six months ended June 30, 2024, compared to $3,668,486 for the same period in 2023[12] - The company incurred stock-based compensation of $6,675,636 during the six months ended June 30, 2024[12] - The company recorded depreciation expense of $3,420,587 for the six months ended June 30, 2024[51] - Depreciation and amortization for the six months ended June 30, 2024, totaled $4,497,031, compared to $1,215,374 in the same period of 2023[89] - Total compensation expense related to restricted stock awards was $6.6 million for the six months ended June 30, 2024, with $17,922,309 of unrecognized compensation expense expected to be recognized over the next four years[84] Compliance and Regulatory Matters - The company was not in compliance with its covenants under the Deluxe line of credit agreement as of June 30, 2024, but obtained a waiver from its bank[58] - The company is currently delinquent in its filings of Retirement Plan Information Returns with the Department of Labor for plan years 2019 through 2022, which may result in penalties[96] Business Model and Strategy - The company has developed a differentiated business model focused on auto transportation and logistics services, catering to major automotive manufacturers and EV producers[15] - Proficient Auto Logistics, Inc. was formed to consolidate several operating companies within the automobile transportation industry, officially changing its name on October 17, 2023[14] - The Founding Companies primarily engage in transporting vehicles for automobile manufacturers, with operations across various regions in the United States[33][36] - The company plans to acquire Auto Transport Group, LC for approximately $28.7 million in cash and 1.02 million shares of common stock, pending customary closing conditions[97]
Proficient Auto Logistics, Inc.(PAL) - 2024 Q2 - Quarterly Report