Company Quick10K Filing
Quick10K
Daseke
10-Q 2019-09-30 Quarter: 2019-09-30
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
8-K 2019-11-12 Regulation FD, Exhibits
8-K 2019-11-12 Earnings, Exhibits
8-K 2019-09-19 Officers, Shareholder Vote
8-K 2019-09-05 Officers, Regulation FD, Other Events, Exhibits
8-K 2019-09-03 Officers, Regulation FD, Other Events, Exhibits
8-K 2019-08-26 Officers, Regulation FD, Exhibits
8-K 2019-08-14 Officers, Regulation FD, Other Events, Exhibits
8-K 2019-08-05 Earnings, Exhibits
8-K 2019-08-05 Regulation FD, Exhibits
8-K 2019-05-20 Officers
8-K 2019-05-06 Earnings, Exhibits
8-K 2019-05-06 Regulation FD, Exhibits
8-K 2019-03-08 Earnings, Exhibits
8-K 2019-02-26 Officers
8-K 2019-02-12 Regulation FD, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2019-01-16 Officers
8-K 2018-11-14 Regulation FD, Exhibits
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-11-06 Regulation FD, Exhibits
8-K 2018-08-30 Officers, Exhibits
8-K 2018-08-09 Earnings, Exhibits
8-K 2018-08-09 Regulation FD, Exhibits
8-K 2018-06-29 Officers, Regulation FD, Exhibits
8-K 2018-06-25 Regulation FD, Exhibits
8-K 2018-06-15 Enter Agreement, Off-BS Arrangement
8-K 2018-06-06 M&A, Sale of Shares, Exhibits
8-K 2018-05-22 Sale of Shares, Amend Bylaw, Shareholder Vote, Exhibits
8-K 2018-05-08 Regulation FD, Exhibits
8-K 2018-04-16 Regulation FD, Exhibits
8-K 2018-04-13 Enter Agreement, Sale of Shares, Exhibits
8-K 2018-02-14 Enter Agreement, Exhibits
8-K 2018-02-12 Earnings
8-K 2018-01-10 Officers
EXPE Expedia 19,003
GATX GATX 2,634
TOUR Tuniu 1,265
LIND Lindblad Expeditions Holdings 866
DESP despegar.com 782
PRSC Providence Service 719
BRS Bristow Group 509
ERA Era Group 205
PHII PHI 194
YTRA Yatra Online 0
DSKE 2019-09-30
Part I – Financial Information
Item 1. Financial Statements (Unaudited)
Note 1 – Nature of Operations and Summary of Significant Accounting Policies
Note 2 – Leases
Note 3 – Acquisitions
Note 4 – Prepaid and Other Current Assets
Note 5 – Goodwill and Intangible Assets
Note 6 – Integration and Restructuring
Note 7 – Property and Equipment
Note 8 – Accrued Expenses and Other Liabilities
Note 9 – Long-Term Debt
Note 10 – Income Taxes
Note 11 – Stockholders’ Equity
Note 12 – Stock-Based Compensation
Note 13 – Defined Contribution Plan
Note 14 – Commitments and Contingencies
Note 15 – Reportable Segments
Note 16 – Earnings (Loss) per Share
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 5. Other Information
Item 6. Exhibits
EX-10.1 dske-20190930ex1018c0eb4.htm
EX-10.5 dske-20190930ex105f41785.htm
EX-10.6 dske-20190930ex106866c00.htm
EX-10.7 dske-20190930ex107e86194.htm
EX-10.8 dske-20190930ex108a07ba7.htm
EX-31.1 dske-20190930ex311ab4e34.htm
EX-31.2 dske-20190930ex3123b1c3d.htm
EX-32.1 dske-20190930ex321b4e7c6.htm
EX-32.2 dske-20190930ex322cb6da7.htm

Daseke Earnings 2019-09-30

DSKE 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 dske-20190930x10q.htm 10-Q dske_Current_Folio_10Q

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

 

OR

 

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ________ to _________

 

Picture 4

DASEKE, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

Delaware
(State or other jurisdiction of incorporation or organization)

 

001-37509
(Commission
File Number)

 

47-3913221
(IRS Employer
Identification No.)

 

 

 

 

 

15455 Dallas Parkway, Suite 550
Addison, Texas

 

75001

(Address of Principal Executive Offices)

 

(Zip Code)

 

 

 

 

 

Registrant’s Telephone Number, Including Area Code: (972) 248-0412

 

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒     No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes  ☒      No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

 

☐ Large accelerated filer

 

 

 

☒ Accelerated filer

☐ Non-accelerated filer

 

 

 

☐ Smaller reporting company

 

 

 

 

☐ Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐        No  ☒

 

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

DSKE

The NASDAQ Capital Market

 

Common shares of the registrant outstanding at November 8, 2019 were 64,589,075.

 

 

 

DASEKE, INC.

FORM 10-Q

For the Quarterly Period Ended September 30, 2019

INDEX

 

 

 

 

 

    

Page No.

Part I. Financial Information 

 

1

Item 1. Financial Statements (Unaudited) 

 

1

Consolidated Balance Sheets 

 

1

Consolidated Statements of Operations and Comprehensive Income (Loss) 

 

2

Consolidated Statement of Changes in Stockholders' Equity 

 

3

Consolidated Statements of Cash Flows 

 

5

Notes to Consolidated Financial Statements 

 

7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 

 

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk 

 

60

Item 4. Controls and Procedures 

 

60

Part II. Other Information 

 

62

Item 1. Legal Proceedings 

 

62

Item 1A. Risk Factors 

 

62

Item 5. Other Information 

 

62

Item 6. Exhibits Index 

 

63

Signatures 

 

64

 

 

 

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This Quarterly Report on Form 10-Q (this Report) of Daseke, Inc. (Daseke or the Company) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except as otherwise indicated by the context, references in this Report to “we,” “us” and “our” are to the consolidated business of the Company. All statements in this Report, including those made by the management of the Company, other than statements of historical fact, are forward-looking statements. These forward-looking statements are based on management’s estimates, projections and assumptions as of the date hereof. Forward-looking statements may contain words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “should,” “could,” “would,” “forecast,” “seek,” “target,” “predict,” and “potential,” the negative of these terms, or other comparable terminology. Forward-looking statements may include statements about the Company’s goals; the Company’s financial strategy, liquidity and capital required for its business strategy and plans; the Company’s competition and government regulations; general economic conditions; and the Company’s future operating results.

 

These forward-looking statements are based on information available as of the date of this Report (or, in the case of forward-looking statements incorporated herein by reference, as of the date of the applicable filed document), and current expectations, forecasts and assumptions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that the Company anticipates. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements.

 

Forward-looking statements are subject to risks and uncertainties (many of which are beyond the Company’s control) that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, general economic and business risks, driver shortages and increases in driver compensation or owner-operator contracted rates, loss of senior management or key operating personnel, seasonality and the impact of weather and other catastrophic events, fluctuations in the price or availability of diesel fuel, increased prices for, or decreases in the availability of, new revenue equipment and decreases in the value of used revenue equipment, the failure of any restructuring actions and cost reduction initiatives that the Company undertakes to meet the expected results, the Company’s ability to generate sufficient cash to service all of the Company’s indebtedness, restrictions in its existing and future debt agreements, increases in interest rates, changes in existing laws or regulations, including environmental and worker health safety laws and regulations and those relating to tax rates or taxes in general, the impact of governmental regulations and other governmental actions related to the Company and its operations, litigation and governmental proceedings, and insurance and claims expenses. For additional information regarding known material factors that could cause the Company’s actual results to differ from its projected results, please see the Company’s filings with the Securities and Exchange Commission (the SEC), particularly the section titled “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K, filed with the SEC on March 8, 2019, and the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2019.

 

All forward-looking statements, expressed or implied, attributed to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue.

 

 

 

 

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

DASEKE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except share data)

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

 

 

2019

 

2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

  

 

 

  

Cash and cash equivalents

 

$

79.6

 

$

46.0

Accounts receivable, net of allowance of $2.6 at September 30, 2019 and $1.2 at December 31, 2018

 

 

230.3

 

 

209.2

Drivers’ advances and other receivables

 

 

8.0

 

 

5.5

Current portion of net investment in sales-type leases

 

 

 —

 

 

16.2

Parts supplies

 

 

3.9

 

 

4.9

Prepaid and other current assets

 

 

21.9

 

 

26.3

Total current assets

 

 

343.7

 

 

308.1

 

 

 

 

 

 

 

Property and equipment, net

 

 

463.1

 

 

572.7

Intangible assets, net

 

 

111.0

 

 

208.8

Goodwill

 

 

145.7

 

 

258.4

Right-of-use assets

 

 

97.0

 

 

 —

Other long-term assets

 

 

29.6

 

 

42.9

Total assets

 

$

1,190.1

 

$

1,390.9

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

24.0

 

$

22.2

Accrued expenses and other liabilities

 

 

54.2

 

 

46.5

Accrued payroll, benefits and related taxes

 

 

39.6

 

 

21.7

Accrued insurance and claims

 

 

18.6

 

 

18.1

Current portion of long-term debt

 

 

61.6

 

 

63.5

Other current liabilities

 

 

49.9

 

 

21.9

Total current liabilities

 

 

247.9

 

 

193.9

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

639.1

 

 

622.7

Deferred tax liabilities

 

 

66.2

 

 

126.8

Other long-term liabilities

 

 

79.6

 

 

0.5

Total liabilities

 

 

1,032.8

 

 

943.9

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

  

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

  

 

 

  

Series A convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized; 650,000
shares issued with liquidation preference of $65.0 at September 30, 2019 and December 31, 2018

 

 

65.0

 

 

65.0

Common stock, par value $0.0001 per share; 250,000,000 shares authorized, 64,583,275 and
64,455,174 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively

 

 

 —

 

 

 —

Additional paid-in-capital

 

 

436.6

 

 

433.9

Accumulated deficit

 

 

(343.7)

 

 

(51.0)

Accumulated other comprehensive loss

 

 

(0.6)

 

 

(0.9)

Total stockholders’ equity

 

 

157.3

 

 

447.0

Total liabilities and stockholders’ equity

 

$

1,190.1

 

$

1,390.9

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

1

DASEKE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In millions, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

September 30, 

 

    

2019

    

2018

    

2019

    

2018

Revenues:

 

 

  

 

 

  

 

 

  

 

 

  

Company freight

 

$

205.2

 

$

206.9

 

$

618.2

 

$

511.4

Owner operator freight

 

 

118.3

 

 

122.6

 

 

351.1

 

 

330.7

Brokerage

 

 

78.6

 

 

82.2

 

 

222.8

 

 

188.4

Logistics

 

 

13.5

 

 

11.6

 

 

39.0

 

 

31.3

Fuel surcharge

 

 

34.8

 

 

38.3

 

 

102.9

 

 

104.3

Total revenue

 

 

450.4

 

 

461.6

 

 

1,334.0

 

 

1,166.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

  

 

 

  

 

 

  

 

 

  

Salaries, wages and employee benefits

 

 

127.7

 

 

114.8

 

 

371.1

 

 

287.7

Fuel

 

 

34.1

 

 

38.9

 

 

105.3

 

 

103.7

Operations and maintenance

 

 

56.8

 

 

51.5

 

 

164.7

 

 

126.4

Communications

 

 

1.0

 

 

0.9

 

 

3.2

 

 

2.4

Purchased freight

 

 

155.5

 

 

170.6

 

 

458.5

 

 

429.9

Administrative expenses

 

 

21.4

 

 

16.1

 

 

54.7

 

 

41.3

Sales and marketing

 

 

1.3

 

 

1.0

 

 

3.8

 

 

2.3

Taxes and licenses

 

 

4.8

 

 

4.7

 

 

14.7

 

 

12.3

Insurance and claims

 

 

13.4

 

 

12.7

 

 

38.1

 

 

32.4

Acquisition-related transaction expenses

 

 

 —

 

 

0.6

 

 

 —

 

 

2.4

Depreciation and amortization

 

 

38.3

 

 

36.8

 

 

119.5

 

 

93.8

Gain on disposition of property and equipment

 

 

(1.0)

 

 

(0.9)

 

 

(2.1)

 

 

(1.5)

Impairment

 

 

306.8

 

 

 —

 

 

306.8

 

 

2.8

Restructuring charges

 

 

6.9

 

 

 —

 

 

6.9

 

 

 —

Total operating expenses

 

 

767.0

 

 

447.7

 

 

1,645.2

 

 

1,135.9

Income (loss) from operations

 

 

(316.6)

 

 

13.9

 

 

(311.2)

 

 

30.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

  

 

 

  

 

 

  

 

 

  

Interest income

 

 

(0.3)

 

 

(0.2)

 

 

(0.7)

 

 

(1.2)

Interest expense

 

 

12.8

 

 

11.9

 

 

38.2

 

 

33.2

Write-off of deferred financing fees

 

 

2.0

 

 

 —

 

 

2.0

 

 

 —

Other

 

 

 —

 

 

(0.7)

 

 

(1.3)

 

 

(2.5)

Total other expense

 

 

14.5

 

 

11.0

 

 

38.2

 

 

29.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before benefit for income taxes

 

 

(331.1)

 

 

2.9

 

 

(349.4)

 

 

0.7

Provision (benefit) for income taxes

 

 

(57.8)

 

 

0.7

 

 

(60.4)

 

 

(14.2)

Net income (loss)

 

 

(273.3)

 

 

2.2

 

 

(289.0)

 

 

14.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

  

 

 

  

 

 

  

 

 

  

Foreign currency translation adjustments, net of tax of $0.1, $0.1, $(0.2) and $(0.1), respectively

 

 

(0.2)

 

 

0.3

 

 

0.3

 

 

(0.6)

Comprehensive income (loss)

 

 

(273.5)

 

 

2.5

 

 

(288.7)

 

 

14.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

(273.3)

 

 

2.2

 

 

(289.0)

 

 

14.9

Less dividends to Series A convertible preferred stockholders

 

 

(1.2)

 

 

(1.2)

 

 

(3.7)

 

 

(3.7)

Net income (loss) attributable to common stockholders

 

$

(274.5)

 

$

1.0

 

$

(292.7)

 

$

11.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

  

 

 

  

 

 

  

 

 

  

Basic and Diluted

 

$

(4.25)

 

$

0.01

 

$

(4.54)

 

$

0.18

Weighted-average common shares outstanding:

 

 

  

 

 

  

 

 

  

 

 

  

Basic and Diluted

 

 

64,583,275

 

 

65,289,320

 

 

64,525,777

 

 

60,413,694

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per Series A convertible preferred share

 

$

1.91

 

$

1.91

 

$

5.72

 

$

5.72

 

The accompanying notes are an integral part of the consolidated financial statements.

 

2

 

DASEKE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

Nine Months Ended September 30, 2019

(Unaudited)

(In millions, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A Convertible

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Preferred Stock

 

Common Stock

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Par

 

Additional

 

Accumulated

 

Comprehensive

 

 

 

 

    

Shares

    

Amount

    

Shares

    

Value

    

Paid- In Capital

    

Deficit

    

Income (Loss)

    

Total

Balance at January 1, 2019

 

650,000

 

$

65.0

 

64,455,174

 

$

 —

 

$

433.9

 

$

(51.0)

 

$

(0.9)

 

$

447.0

Vesting of restricted stock units

 

 —

 

 

 —

 

14,498

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.2)

 

 

 —

 

 

(1.2)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1.0

 

 

 —

 

 

 —

 

 

1.0

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

0.1

 

 

0.1

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(9.3)

 

 

 —

 

 

(9.3)

Balance at March 31, 2019

 

650,000

 

$

65.0

 

64,469,672

 

$

 —

 

$

434.9

 

$

(61.5)

 

$

(0.8)

 

$

437.6

Vesting of restricted stock units

 

 —

 

 

 —

 

110,321

 

 

 —

 

 

(0.2)

 

 

 —

 

 

 —

 

 

(0.2)

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.3)

 

 

 —

 

 

(1.3)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

0.9

 

 

 —

 

 

 —

 

 

0.9

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

0.4

 

 

0.4

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(6.4)

 

 

 —

 

 

(6.4)

Balance at June 30, 2019

 

650,000

 

$

65.0

 

64,579,993

 

$

 —

 

$

435.6

 

$

(69.2)

 

$

(0.4)

 

$

431.0

Vesting of restricted stock units

 

 —

 

 

 —

 

3,282

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.2)

 

 

 —

 

 

(1.2)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1.0

 

 

 —

 

 

 —

 

 

1.0

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(0.2)

 

 

(0.2)

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(273.3)

 

 

 —

 

 

(273.3)

Balance at September 30, 2019

 

650,000

 

$

65.0

 

64,583,275

 

$

 —

 

$

436.6

 

$

(343.7)

 

$

(0.6)

 

$

157.3

 

The accompanying notes are an integral part of the consolidated financial statements.

3

DASEKE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

Nine Months Ended September 30, 2018

(Unaudited)

(In millions, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A Convertible

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Preferred Stock

 

Common Stock

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Par

 

Additional

 

Retained

 

Comprehensive

 

 

 

 

    

Shares

    

Amount

 

Shares

    

Value

    

Paid- In Capital

    

Earnings

    

Income (Loss)

    

Total

Balance at January 1, 2018

 

650,000

 

$

65.0

 

48,712,288

 

$

 —

 

$

277.9

 

$

7.3

 

$

1.0

 

$

351.2

Exercise of stock options

 

 —

 

 

 —

 

5,000

 

 

 —

 

 

0.1

 

 

 —

 

 

 —

 

 

0.1

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.2)

 

 

 —

 

 

(1.2)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

0.9

 

 

 —

 

 

 —

 

 

0.9

Issuance of common stock

 

 —

 

 

 —

 

8,545,000

 

 

 —

 

 

84.5

 

 

 —

 

 

 —

 

 

84.5

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(0.3)

 

 

(0.3)

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(0.8)

 

 

 —

 

 

(0.8)

Balance at March 31, 2018

 

650,000

 

$

65.0

 

57,262,288

 

$

 —

 

$

363.4

 

$

5.3

 

$

0.7

 

$

434.4

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.3)

 

 

 —

 

 

(1.3)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

0.9

 

 

 —

 

 

 —

 

 

0.9

Issuance of common stock

 

 —

 

 

 —

 

1,612,979

 

 

 —

 

 

15.4

 

 

 —

 

 

 —

 

 

15.4

Issuance of earnout shares

 

 —

 

 

 —

 

5,000,000

 

 

 —

 

 

48.2

 

 

(48.2)

 

 

 —

 

 

 —

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(0.6)

 

 

(0.6)

Net income

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

13.5

 

 

 —

 

 

13.5

Balance at June 30, 2018

 

650,000

 

$

65.0

 

63,875,267

 

$

 —

 

$

427.9

 

$

(30.7)

 

$

0.1

 

$

462.3

Exercise of warrants

 

 —

 

 

 —

 

 2

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Vesting of restricted stock units

 

 —

 

 

 —

 

74,713

 

 

 —

 

 

(0.4)

 

 

 —

 

 

 —

 

 

(0.4)

Series A convertible preferred stock dividend

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(1.2)

 

 

 —

 

 

(1.2)

Stock-based compensation expense

 

 —

 

 

 —

 

 —

 

 

 —

 

 

0.9

 

 

 —

 

 

 —

 

 

0.9

Issuance of common stock

 

 —

 

 

 —

 

495,389

 

 

 —

 

 

4.4

 

 

 —

 

 

 —

 

 

4.4

Foreign currency translation adjustments

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

0.3

 

 

0.3

Net income

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

2.2

 

 

 —

 

 

2.2

Balance at September 30, 2018

 

650,000

 

$

65.0

 

64,445,371

 

$

 —

 

$

432.8

 

$

(29.7)

 

$

0.4

 

$

468.5

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

4

DASEKE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 

 

    

2019

    

2018

Cash flows from operating activities

 

 

  

 

 

  

Net income (loss)

 

$

(289.0)

 

$

14.9

Adjustments to reconcile net income (loss) to net cash provided by operating activities

 

 

 

 

 

 

Depreciation

 

 

107.1

 

 

81.6

Amortization of intangible assets

 

 

12.4

 

 

12.2

Amortization of deferred financing fees

 

 

2.4

 

 

2.2

Non-cash operating lease expense

 

 

19.7

 

 

 —

Write-off of deferred financing fees

 

 

2.0

 

 

 —

Stock-based compensation expense

 

 

2.9

 

 

2.7

Deferred taxes

 

 

(60.4)

 

 

(16.1)

Bad debt expense

 

 

2.7

 

 

0.6

Gain on disposition of property and equipment

 

 

(2.1)

 

 

(1.5)

Gain on disposition of building

 

 

 —

 

 

(0.8)

Deferred gain recognized on sales-type leases