BUCHANAN — XPO Logistics Inc., a leading provider of non-asset based, third-party logistics in the transportation industry, Monday announced financial results for the third quarter of 2011.
Total revenue from continuing operations was $47.4 million, a 6.6 percent increase from the same period last year.
The company reported net income of $190,000 compared with net income of $1.7 million for the same period in 2010.
Earnings per share for the third quarter of 2011 reflect a $44.6 million non-cash accounting charge related to the beneficial conversion features of the previously announced equity investment led by Jacobs Private Equity, LLC. This accounting charge resulted in a $5.38 loss per diluted share, compared with earnings of 21 cents per diluted share for the same period in 2010.
“While our overall operating results in the quarter were mixed, we’re encouraged by the opportunities to enhance the earnings power of all three of our business units,” Bradley Jacobs, chairman and chief executive officer, said. “We have an extensive plan in place to expand XPO through acquisitions, organic growth and the optimization of our operations. In addition, we’ve assembled a highly experienced management team with the specific expertise required for this strategy.
“We began taking action immediately after we closed the equity investment in early September. For example, we’re opening a new truck brokerage location in Phoenix this month to replicate the high-growth model of our Bounce Logistics operation. This is the first of what we intend to be an aggressive expansion of our truck brokerage footprint.”
Express-1 (expedited transportation solutions) generated revenue of $23.4 million, a 9.4 percent increase from the same period in 2010. Gross margin percentage was 21.4 percent, compared with 24.8 percent in 2010. Operating income was $2.5 million for the quarter, a 3 percent decrease from the same period last year.
The year-over-year decrease in operating income for the quarter primarily reflects a higher percentage of third-party brokered loads in 2011.
, and the loss of one-time project work from 2010 that was not replaced this year.