
Echo Global Logistics Inc. has purchased a transportation brokerage operation while reporting a near 70% increase in its fourth quarter 2014 net income.
Echo Global Logistics Makes Purchase, Increases Profit Almost 70%


Echo Global Logistics Inc. has purchased a transportation brokerage operation while reporting a near 70% increase in its fourth quarter 2014 net income.
The Illinois-based third party logistics and supply chain services provider has bought Xpress Solutions Inc. also based in the state, and is doing business under the Echo banner.
Founded in 1999, Xpress is a non-asset provider of both less-than-truckload and truckload services with a regional focus in the Midwest, according to Echo.
Steve Rotondi, founder of Xpress and a 20-year veteran of the transportation industry, will assume the title of regional vice president. All existing management and employees will remain with Echo subsequent to the acquisition.
"Xpress Solutions has shown consistent and impressive growth and is an excellent strategic and cultural fit," said Doug Waggoner, CEO of Echo. "Further, this acquisition provides us with a portfolio of small and middle market shippers who will benefit from the full range of technology-enabled transportation solutions we are able to provide."
According to Echo, Xpress has grown revenue by approximately 20% in each of the last three years. It delivered approximately $13 million of gross revenue in 2014.
Meantime, Echo also announced it increased its net profit in the final quarter of last year from $2.7 million in 2013 to $4.7 million, while diluted earnings per share increased from 12 cents to 20 cents. Total revenue grew 36% to $300 million from a year earlier.
For all of 2014, net income increased from $14.2 million to $16.8 million while diluted earnings per share moved higher from 61 cents to 71 cents. Total revenue grew 33% to $1.17 billion as truckload revenue grew 57% to $619.2 million and LTL revenue grew 18% to $432.1 million.
"With an excellent 2014 behind us, we are expecting another year of strong growth in 2015. We will continue to invest in our people and technology as we move towards our 2017 targets of $2 billion in revenue and $100 million in non-GAAP EBITDA," said Kyle Sauers, chief financial officer. "We are initiating 2015 full year revenue guidance in the range of $1.30 billion to $1.38 billion and selling, general and administrative costs of $120 million to $125 million, excluding the impact of any potential acquisitions or acquisition related costs."

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