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RXO Reports Third-Quarter Results with Coyote Integration Ahead of Schedule and Complementary Services Momentum

Press Release | Charlotte, NC | November 7, 2024

  • Coyote acquisition completed September 16; integration well underway and progressing smoothly. Raising annualized cost synergy estimate to at least $40 million.
  • Strengthened balance sheet while financing Coyote acquisition; combined company leverage ratio decreased by more than 40%
  • Companywide gross margin of 17.3%; Brokerage gross margin of 13.7%
  • Managed Transportation was awarded more than $300 million in new freight under management
  • Last Mile stop growth continued to accelerate and grew 11% year-over-year

CHARLOTTE, N.C. — November 7, 2024 — RXO (NYSE: RXO) today announced its financial results for the third quarter of 2024.

Drew Wilkerson, chief executive officer of RXO, said, “In the third quarter, our focus on execution enabled us to achieve a solid 13.7% gross margin in our Brokerage business, despite the prolonged soft freight market. Momentum continued within our complementary services. In Managed Transportation, we secured more than $300 million in new business and continue to have a strong sales pipeline of more than $1.3 billion in freight under management. In Last Mile, we grew stops by 11% year-over-year, an acceleration from our second-quarter growth rate.”

Wilkerson continued, “We remain focused strategically investing in our business while controlling costs. Closing the Coyote acquisition in the third quarter makes RXO the third-largest freight broker in North America. Our larger scale enables us to provide customers with more capacity and carriers with more freight. The integration is progressing nicely and we now expect to achieve at least $40 million in cost synergies. The additional savings will be primarily driven by integrating technology platforms and reducing vendor spend. We will continue to provide our customers with superior service, comprehensive solutions, continuous innovation and deep relationships.”

Companywide Results

RXO’s revenue was $1.04 billion in the third quarter, compared to $976 million in the third quarter of 2023. Gross margin was 17.3%, compared to 17.7% in the third quarter of 2023.

The company reported a third-quarter 2024 GAAP net loss of $243 million, compared to a net loss of $1 million in the third quarter of 2023. The third-quarter 2024 GAAP net loss included $248 million in transaction, integration, restructuring and other costs. Adjusted net income in the quarter was $7 million, compared to $6 million in the third quarter of 2023.

Adjusted EBITDA was $33 million, compared to $26 million in the third quarter of 2023. Adjusted EBITDA margin was 3.2%, compared to 2.7% in the third quarter of 2023.

Transaction, integration, restructuring and other costs, and amortization of intangibles, impacted GAAP earnings per share by $1.86, net of tax. For the third quarter, RXO reported a GAAP diluted loss per share of $1.81. Adjusted diluted earnings per share was $0.05.

These results include the impact of RXO’s acquisition of Coyote Logistics, which was completed on September 16, 2024.

Balance Sheet Update

The combined company’s leverage ratio for the last twelve months (LTM) decreased by more than 40%, from 3.0 times to 1.6 times LTM adjusted EBITDA, as a result of the equity financings associated with the acquisition of Coyote Logistics.

Brokerage

Volume in RXO’s legacy Brokerage business, which excludes the impact of Coyote Logistics, declined by 5% year-over-year in the third quarter. Less-than-truckload volume increased by 13% but was offset by a 9% decline in full truckload volume.

Legacy RXO full truckload contract volume has grown by more than 30% since the third quarter of 2021.

Consolidated brokerage gross margin was 13.7% in the third quarter. Legacy RXO brokerage gross margin was 13.8% in the third quarter.

Complementary Services

RXO’s complementary services gross margin was 21.5% for the quarter, up 150 basis points year-over-year.

Managed Transportation was awarded more than $300 million in new freight under management in the quarter. The business has more than $1.3 billion of new freight under management in its sales pipeline.

The number of Last Mile stops grew by 11% year-over-year.

Fourth-Quarter Outlook

RXO expects fourth-quarter 2024 adjusted EBITDA to be between $40 million and $45 million. The company expects fourth-quarter 2024 Brokerage gross margin to be between 12% and 14%.

Conference Call

The company will hold a conference call and webcast on Thursday, November 7 at 7 a.m. Eastern Standard Time. Participants can call in toll-free (from U.S./Canada) at 1-800-549-8228; international callers dial +1-289-819-1520. The conference ID is 82059.

A live webcast of the conference call will be available on the investor relations area of the company’s website, http://investors.rxo.com. A replay of the conference call will be available through November 28, 2024, by calling toll-free (from U.S./Canada) 1-888-660-6264; international callers dial +1-289-819-1325. Use the passcode 82059##. Additionally, the call will be archived on http://investors.rxo.com.

For the full press release, click here.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Non-GAAP Financial Measures

We provide reconciliations of the non-GAAP financial measures contained in this release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this release.

The non-GAAP financial measures in this release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted EBITDA margin; and adjusted net income (loss) and adjusted diluted earnings (loss) per share (“adjusted EPS”).

We believe that these adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not reflect, or are unrelated to, RXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should only be used as supplemental measures of our operating performance.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted EPS include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the attached tables. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating RXO’s ongoing performance.

We believe that adjusted EBITDA and adjusted EBITDA margin improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments that management has determined do not reflect our core operating activities and thereby assist investors with assessing trends in our underlying business. We believe that adjusted net income (loss) and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs that management has determined do not reflect our core operating activities, including amortization of acquisition-related intangible assets, transaction and integration costs, restructuring costs and other adjustments as set out in the attached tables, and thereby may assist investors with comparisons to prior periods and assessing trends in our underlying business.

With respect to our financial outlook for the third quarter of 2024 adjusted EBITDA, a reconciliation of this non-GAAP measure to the corresponding GAAP measure is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from this non-GAAP measure. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statement of income and statement of cash flows prepared in accordance with GAAP that would be required to produce such a reconciliation.

Forward-looking Statements

This release includes forward-looking statements, including statements relating to our third-quarter outlook and acquisition of Coyote Logistics. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “predict,” “should,” “will,” “expect,” “project,” “forecast,” “goal,” “outlook,” “target,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC and the following: potential delays in consummating the potential transaction to acquire Coyote Logistics; the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement for the potential transaction; the effect of the pendency or completion of the potential transaction on the parties’ business relationships and business generally; competition and pricing pressures; economic conditions generally; fluctuations in fuel prices; increased carrier prices; severe weather, natural disasters, terrorist attacks or similar incidents that cause material disruptions to our operations or the operations of the third-party carriers and independent contractors with which we contract; our dependence on third-party carriers and independent contractors; labor disputes or organizing efforts affecting our workforce and those of our third-party carriers; legal and regulatory challenges to the status of the third-party carriers with which we contract, and their delivery workers, as independent contractors, rather than employees; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of potential cyber-attacks and information technology or data security breaches; issues related to our intellectual property rights; our ability to access the capital markets and generate sufficient cash flow to satisfy our debt obligations; litigation that may adversely affect our business or reputation; increasingly stringent laws protecting the environment, including transitional risks relating to climate change, that impact our third-party carriers; governmental regulation and political conditions; our ability to attract and retain qualified personnel; our ability to successfully implement our cost and revenue initiatives and other strategies; our ability to successfully manage our growth; our reliance on certain large customers for a significant portion of our revenue; damage to our reputation through unfavorable publicity; our failure to meet performance levels required by our contracts with our customers; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; a determination by the IRS that the distribution or certain related separation transactions should be treated as taxable transactions; and the impact of the separation on our businesses, operations and results. All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

Media Contact
Nina Reinhardt
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Investor Contact
Kevin Sterling
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RXO Named Top Company for Women to Work for in Transportation

Press Release | Charlotte, NC | October 30, 2024

CHARLOTTE, N.C. — October 30, 2024 RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, was named a 2024 Top Company for Women to Work for in Transportation by the Women in Trucking Association. For the second consecutive year, RXO was also named to the “Elite 30” list, which recognizes companies that generated the highest number of industry-wide votes in an online poll.

“RXO is proud to be recognized by the Women in Trucking Association,” said Heidi Ratti, Chief Human Resources Officer at RXO. “We remain committed to creating an inclusive workplace that empowers all employees and values diverse perspectives. RXO supports female employees and will continue to build and develop programs and benefits to foster the professional success of all women.”

RXO provides a comprehensive benefits package to eligible employees that includes extensive medical and dental coverage, paid time off, a 401(k) plan with company matching, tuition reimbursement, as well as pregnancy and family benefits. Furthermore, RXO facilitates a range of learning and development opportunities aimed at enhancing professional growth. Employees are also encouraged to participate in various employee affinity groups, such as the Women’s Inclusion Network, to foster connections and networking among colleagues.

Award nominees were evaluated based on several key features, including establishing a corporate culture that promotes gender diversity, competitive compensation and benefits packages, flexible work hours and opportunities for professional development and career advancement. The selection of winners was determined through an industry-wide vote that engaged more than 31,000 logistics professionals.

For more information on RXO, please visit https://rxo.com.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit RXO.com for more information and connect with RXO on LinkedIn,  Facebook, Instagram, X and YouTube.

 

Media Contact
Erin Kelly
[email protected]
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RXO Presents the 2024 Carolina Panthers Oorah Hooah Classic 7-on-7 Football Tournament

Press Release | Charlotte, NC | October 9, 2024

CHARLOTTE, N.C. — October 9, 2024 RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, presented the Oorah Hooah Classic 7-on-7 Football Tournament with the Carolina Panthers at Bank of America Stadium on Tuesday. The event featured 7-on-7 style football games between active-duty service members from the Army and Marines. More than 50 active-duty service members stationed at Fort Liberty and Camp Lejeune competed on four teams in three games of pool play, culminating in a single-elimination tournament to decide the champion.

“It’s an honor to be back here for the second consecutive year with the Carolina Panthers for this incredible event that celebrates our service members through the spirit of competition,” said Dennis McCaffrey, senior vice president of enterprise sales at RXO. “At RXO, we take immense pride in our military community. Many of our leaders are veterans, and we are committed to supporting military personnel by providing meaningful career opportunities. I am a veteran Marine, and it is a privilege to give back to those who serve our country.”

The teams were joined by active Panthers players, including Austin Corbett, Brady Christensen, Nick Scott and Jammie Robinson. The players spent the afternoon coaching and cheering on the military teams.

“We are thrilled to partner with RXO to host the Oorah Hooah Classic at Bank of America Stadium,” said Riley Fields, Director of Community Relations for the Panthers. “This day of competition is a wonderful way for us to show our appreciation for the region’s military members and express our sincerest gratitude for their service.”

During the tournament, local leaders from Veteran’s Bridge Home accepted a $10,000 donation from RXO, supporting veterans in navigating employment, fostering social connections and facilitating the seamless reintegration of their families. RXO also hosted several veteran employees and customers at the event.

RXO is the official supply chain and logistics partner of the Panthers. For more information, visit www.rxo.com.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit RXO.com for more information and connect with RXO on LinkedIn,  Facebook, Instagram, X and YouTube.

About the Carolina Panthers

The Carolina Panthers became the 29th National Football League franchise on October 26, 1993. The Panthers began play in the 1995 season, winning an expansion-team-record seven games. In 28 seasons, Carolina has won six division titles, including three consecutive NFC South division titles from 2013-15. The Panthers have played in 17 playoff games, winning two NFC Championships and appearing in Super Bowl XXXVIII and Super Bowl 50. David A. Tepper, the founder and president of global hedge fund Appaloosa Management, L.P. and a well-known philanthropist, is the owner of the Carolina Panthers. Truly representing both Carolinas, the Panthers play their home games at Bank of America Stadium in Charlotte, N.C., just miles from the North Carolina-South Carolina border. Serving the two-state region is a priority for the team. The Panthers work with over 3,800 community partners, non-profit agencies and schools in the Carolinas each year and are committed to positively impacting the region by providing philanthropic funding, resources and opportunities throughout the Carolinas.

Media Contact
Erin Kelly
[email protected]
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Two RXO Leaders Named Recipients of 2024 Women in Supply Chain Award

Press Release | Charlotte, NC | September 19, 2024

Charlotte, NC- September 19, 2024- RXO (NYSE: RXO) leaders Karin Bridges and Lindsey Martinez were named as winners of this year’s Women in Supply Chain Award by Supply & Demand Chain Executive and Food Logistics. The award honors female supply chain leaders and executives whose accomplishments, mentorships and examples set a foundation for women in all levels of a company’s supply chain network.

“We’re thrilled to celebrate the achievements of two exceptional RXO leaders – Karin and Lindsey,” said Drew Wilkerson, chief executive officer of RXO. “Their remarkable professionalism and drive set a high standard within the organization and the entire industry. They serve as inspiring examples for all leaders to follow.”

Bridges serves as the senior director of operations for freight forwarding at RXO and was named to the Trailblazers category. This award honors female leaders who continue to pave the way for future females in logistics. Bridges, with more than 20 years of experience in the industry, leads more than 260 employees across branches in Miami, Orlando, Monterrey, Dallas, Chicago and China. Her leadership has motivated her team and driven success through productivity improvement, prioritization and removing silos to foster stronger connections. In the past year, Bridges oversaw the combination of RXO’s freight forwarding and managed transportation businesses, developing solutions to create more value for customers and carriers.

Martinez, director of procurement for RXO’s managed transportation business, was named to the DEI Pioneer category, which celebrates female leaders who continue to create and execute diversity, equity and inclusion efforts. In Martinez’s six years at RXO, she has significantly and positively impacted RXO’s business by revamping strategies, streamlining processes and optimizing spend. Her actions have resulted in a 50 percent decrease in the time it takes to launch a new customer. Internally, Martinez is involved in the empowerment of women in the industry. She actively participates in RXO’s Women’s Inclusion Network and also serves on the board of the Transportation Club of Detroit, working to expand its community contributions through scholarships.

“Every year, this award continues to amaze me. But this year especially, it’s all about the quality of the submissions. These women are doing remarkable things for their communities, organizations and teams and are paving the way for future young female leaders to be a part of an industry that’s making a difference,” says Marina Mayer, Editor-in-Chief of Food Logistics and Supply & Demand Chain Executive and Co-Founder of the Women in Supply Chain Forum.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Celebrates 2024 Top Carriers for National Truck Driver Appreciation Week

Press Release | Charlotte, NC | September 18, 2024

Charlotte, NC- September 18, 2024- RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, recognized National Truck Driver Appreciation Week by honoring its top brokerage and managed transportation carriers with awards.

The 20 brokerage carriers are recognized for their outstanding performance and dedication to customer satisfaction. The winning carriers are spread across 11 states in the U.S and scored in categories including: small fleet, medium fleet, large fleet, digital booking, mode (flatbed, reefer, LTL), RXO Extra™ (fuel, factoring, maintenance, tires, innovators) and sustainability.

Since the beginning of 2024, these carriers have completed more than 55,000 loads, covering more than 4.2 million miles. The average carrier rating with RXO is an impressive 95, which can only be achieved through building and maintaining a strong record of excellent service. RXO scores carriers based on a wide range of factors, including on-time pickup and delivery rates, dropped deliveries and auto-tracking.

For RXO’s managed transportation business, the winners of the top carrier award include:

    • Old Dominion Freight Line (LTL-National)
    • Southeastern Freight Lines (LTL-Regional)
    • Frisard’s Trucking Company, Inc. (Truckload – Dry Van)
    • Decker Truck Line Inc. (Truckload – Specialized)
    • OL USA (Global-Ocean)
    • CNW Courier Network (Global Air)
    • Capital Trucking LLC (Expedite Specialized)
    • Charger Logistics Inc (Expedite LTL)
    • Bolt Express LLC (Expedite Ground)

The winning managed transportation carriers handled a total of 101,777 shipments across four modes: dry van truckload, specialized truckload, national LTL and regional LTL. These carriers maintained an impressive average carrier scorecard rating of 94 across six key scoring metrics including on-time performance, visibility, tender acceptance, claims, safety and billing.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Completes Acquisition of Coyote Logistics

Press Release | Charlotte, NC | September 16, 2024

Charlotte, NC- September 16, 2024- RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, today announced it has completed its acquisition of Coyote Logistics from UPS for a purchase price of $1.025 billion. The company is now the third-largest provider of brokered transportation in North America.

This acquisition enhances RXO’s market position, diversifies and expands its customer base and broadens its carrier network. For customers, RXO now offers increased network density and additional power lanes. For carriers, RXO offers access to more customers with opportunities to reduce deadhead miles.

“We’re thrilled to welcome Coyote’s employees, customers and carriers to RXO,” said Drew Wilkerson, chief executive officer of RXO. “This acquisition enables us to provide customers with even more capacity. Our larger scale will provide carriers with access to more freight. As we work to integrate Coyote’s people and technology into our business, we remain focused on providing the best service, most comprehensive set of solutions, continuous innovation and deep relationships for our customers.”

Coyote Logistics was founded in 2006 and acquired by UPS in 2015.

Goldman Sachs & Co. LLC served as financial advisor to RXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as its legal advisor.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Launches Prepay Fuel Option for Carriers

Press Release | Charlotte, NC | August 27, 2024

Charlotte, NC- August 27, 2024- RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, launched a prepay capability through the RXO Fuel Card. The new prepay solution enables drivers to plan their fuel spend and more effectively maintain their budgets.  

 Carriers can preload funds to the RXO Fuel Card using their personal credit or debit card. Additionally, the new pay-as-you-go option has a quick approval process, no setup fee and allows drivers to take advantage of RXO’s Fuel Card discounts. Carriers can easily access the prepay interface via RXO Connect™, RXO’s proprietary platform for shippers and carriers.  

 “RXO is committed to providing our carrier network with solutions that make their business more efficient and profitable,” said Lou Amo, president of RXO’s truck brokerage business. “The prepay capabilities give carriers added flexibility to save even more on a significant cost component of their business.”  

 Other benefits of RXO’s Fuel Card include fuel discounts, with an average of $0.48 per gallon. The card is widely accepted at more than 9,000 locations nationwide without any minimum gallon requirements. Fuel card members also benefit from the RXO Extra discount marketplace including savings on maintenance services and tires. 

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Dedicated Transportation Named 2024 SmartWay High Performer

Press Release | Charlotte, NC | August 15, 2024

Charlotte, NC- August 15, 2024- RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, announced its dedicated transportation business was recognized as a 2024 SmartWay High Performer by the U.S. Environmental Protection Agency (EPA) in the Truckload / Dry Van Truck Carrier Carbon Metrics category.

EPA’s SmartWay program is dedicated to enhancing the efficiency and sustainability of supply chain transportation. RXO was recognized for the second straight year for achieving efficiency and/or air quality performance within the top-ranked performance range.

“It is an honor to be recognized again by the EPA as a SmartWay High Performer,” said Brian Dean, president of RXO’s managed transportation business. “Our dedication to customer service and supply chain sustainability is steadfast, and SmartWay’s tools for measuring, benchmarking and enhancing transportation efficiency are crucial to our efforts.”

SmartWay reports that fewer than 10 percent of all participating carriers achieve the efficiency levels required to be recognized for reduced carbon emissions. Carbon emissions correlate with fuel consumption, and SmartWay High Performers use less fuel per mile and per ton of freight transported.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Announces $550 Million Private Financing

Press Release | Charlotte, NC | August 12, 2024

  • Company intends to use the proceeds for the planned acquisition of Coyote Logistics
  • Coyote acquisition expected to close in the first half of the fourth quarter

Charlotte, NC- August 12, 2024-RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, today announced that it has entered into purchase agreements with MFN Partners, LP and certain accounts managed by Orbis Investments for a $550 million private financing.

The company intends to use the proceeds from the transaction to finance a portion of the pending acquisition of Coyote Logistics, UPS’ technology-driven, asset-light based truckload freight brokerage services business. The acquisition is expected to close in the first half of the fourth quarter.

In the transaction, the company is selling an aggregate of 20,954,780 shares of its common stock at a price of $20.21 per share, and pre-funded warrants to purchase 6,259,471 shares of common stock, at a price of $20.20 per warrant. The per-share price of $20.21 represents the closing price of RXO’s stock on June 21, 2024, the last day of trading before RXO announced it had reached a definitive agreement to purchase Coyote Logistics.

Goldman Sachs & Co. LLC is serving as financial advisor to RXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal advisor.

The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and the securities have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. The company has agreed to use commercially reasonable efforts to file a registration statement with the SEC registering the resale of the common stock sold in the transaction and has agreed to hold a special meeting to obtain stockholder approval for exercise of a portion of the pre-funded warrants no later than the end of 2024.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Forward Looking Statements

This release includes forward-looking statements, including statements relating to the expected use of proceeds of the private financing and time period to consummate the potential transaction to acquire Coyote Logistics. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “may,” “will,” “should,” “could,” “expect,” “intend,” “plan,” “anticipate,” “potential,” “outlook” or “shall,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC and the following: potential delays in consummating the potential transaction to acquire Coyote Logistics; the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement for the potential transaction; the effect of the pendency or completion of the potential transaction on the parties’ business relationships and business generally; competition and pricing pressures; economic conditions generally; fluctuations in fuel prices; increased carrier prices; severe weather, natural disasters, terrorist attacks or similar incidents that cause material disruptions to our operations or the operations of the third-party carriers and independent contractors with which we contract; our dependence on third-party carriers and independent contractors; labor disputes or organizing efforts affecting our workforce and those of our third-party carriers; legal and regulatory challenges to the status of the third-party carriers with which we contract, and their delivery workers, as independent contractors, rather than employees; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of potential cyber-attacks and information technology or data security breaches; issues related to our intellectual property rights; our ability to access the capital markets and generate sufficient cash flow to satisfy our debt obligations; litigation that may adversely affect our business or reputation; increasingly stringent laws protecting the environment, including transitional risks relating to climate change, that impact our third-party carriers; governmental regulation and political conditions; our ability to attract and retain qualified personnel; our ability to successfully implement our cost and revenue initiatives and other strategies; our ability to successfully manage our growth; our reliance on certain large customers for a significant portion of our revenue; damage to our reputation through unfavorable publicity; our failure to meet performance levels required by our contracts with our customers; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; a determination by the IRS that the distribution or certain related separation transactions should be treated as taxable transactions; and the impact of the separation on our businesses, operations and results. All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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RXO Receives 2024 Quest for Quality Award from Logistics Management

Press Release | Charlotte, NC | August 12, 2024

Charlotte, NC- August 12, 2024-

RXO (NYSE: RXO), a leading provider of asset-light transportation solutions, received the Quest for Quality award from Logistics Management in the Bulk Motor Carriers category.

“It’s a great honor to be recognized for the outstanding service we provide to our bulk transport customers,” said Lou Amo, president of RXO’s brokerage business. “This recognition is a testament to the hard work and dedication of our team. We’re committed to providing outstanding service, comprehensive solutions, continuous innovation and the deepest customer relationships in the industry.”

In its 41st year, the Logistics Management Quest for Quality awards program recognizes the highest level of service and performance excellence for carriers, ports and logistics providers worldwide. The awards are the culmination of a six-month research project conducted by Peerless Research Group (PRG). To determine the ‘best of the best,’ transportation and supply chain decision makers rate carriers, logistics providers and port operators in categories such as on-time performance, value and customer service.

RXO’s truckload services include bulk transport services, offering the flexibility to move liquid bulk, dry bulk and ISO container shipments.

For more information on RXO, visit https://rxo.com.

About RXO

RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit  RXO.com  for more information and connect with RXO on  Facebook, X,  LinkedIn,  Instagram  and  YouTube.

Media Contact
Erin Kelly
[email protected]
Investor Contact
Kevin Sterling
[email protected]
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