RXO(US:RXO)2025-05-07 20:16Revenue and Growth - Revenue for the first quarter of 2025 increased by 57.0% to $1.433 billion, compared to $913 million in the same quarter of 2024, driven by a $503 million increase in truck brokerage revenue due to the Coyote acquisition[76] Costs and Expenses - Cost of transportation and services for Q1 2025 was $1.153 billion, or 80.5% of revenue, up from $699 million, or 76.6% of revenue in Q1 2024, primarily due to the Coyote acquisition[77] - Direct operating expenses decreased to $48 million in Q1 2025, down 9.4% from $53 million in Q1 2024, representing 3.3% of revenue compared to 5.8% in the prior year[78] - SG&A expenses rose to $210 million in Q1 2025, an increase of 44.8% from $145 million in Q1 2024, but as a percentage of revenue, it decreased to 14.7% from 15.9%[79] - Depreciation and amortization expense for Q1 2025 was $32 million, including $16 million related to the Coyote acquisition[80] Acquisition Details - The company acquired Coyote for $1.038 billion in cash, with an additional $10 million for working capital adjustments paid in Q1 2025[68] Tax and Compliance - The effective income tax rate for Q1 2025 was 19.2%, down from 27.7% in Q1 2024, primarily due to nondeductible expenses during a pre-tax loss[82] - The company was in compliance with all covenants and provisions of its outstanding debt and financing arrangements as of March 31, 2025[86] Liquidity and Capital Expenditures - The company expects existing liquidity and sources of capital to be sufficient to support operations over the next 12 months[84] - The company’s capital expenditures for 2025 will focus on strategic investments in technology, equipment, and real estate[85] Assets and Liabilities - Total current assets decreased by $84 million (6.3%) from December 31, 2024, to March 31, 2025, primarily due to a $77 million decrease in accounts receivable[87] - Total liabilities decreased by $85 million from December 31, 2024, to March 31, 2025, mainly due to a sequential decrease in third-party transportation costs[87] - Total assets decreased by $110 million from December 31, 2024, to March 31, 2025, due to decreases in accounts receivable, operating lease assets, and cash[87] Cash Flow - Net cash provided by operating activities decreased by $9 million, reflecting a $16 million increase in net loss compared to the same period in 2024[88] - Investing activities used $25 million of cash in the first three months of 2025, an increase of $14 million compared to $11 million in the same period in 2024[89] - Financing activities provided $7 million of cash in the first three months of 2025, compared to $6 million in the same period in 2024, with $35 million in net proceeds from borrowings[90] - The primary source of cash in the first three months of 2025 was $35 million in net proceeds from borrowings, partially offset by $17 million in tax withholding payments[90] Market Risks - The company remains exposed to market risks related to foreign currency exchange rates, commodity prices, interest rates, and diesel fuel prices[92] Accounting Estimates - There have been no significant changes in the company's critical accounting estimates since December 31, 2024[91] Cash and Cash Equivalents - The company experienced a $19 million decrease in cash and cash equivalents due to timing of transaction-related payments associated with the Coyote acquisition[87]