Achieved significant margin improvement in both transportation and logistics Closed a record $716 million of new business in the quarter GREENWICH, Conn. - XPO Logistics, Inc. (NYSE: XPO) today announced financial results for the first quarter 2017. Revenue was $3.54 billion for the quarter, compared with $3.55 billion for the same period in 2016. Revenue increased year-over-year by $122.6 million excluding the first quarter 2016 revenue from the North American truckload unit divested in October 2016. Net income attributable to common shareholders was $19.5 million for the quarter, or earnings of $0.16 per diluted share, compared with a net loss attributable to common shareholders of $23.2 million, or a loss of $0.21 per diluted share, for the same period in 2016. Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $37.9 million, or adjusted earnings of $0.30 per diluted share for the first quarter of 2017, excluding the items detailed below. This compares with an adjusted net loss attributable to common shareholders of $9.3 million, or an adjusted loss of $0.08 per diluted share, for the same period in 2016. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.    The adjusted net income attributable to common shareholders for the quarter excludes: $21.0 million, or $13.3 million after-tax, of integration and rebranding costs; $11.9 million, or $7.4 million after-tax, from unrealized losses on foreign currency contracts; and $9.0 million, or $5.6 million after-tax, of debt extinguishment costs related to the refinancing of an existing term loan; and a tax benefit of $5.8 million primarily related to state tax planning initiatives. Adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), a non-GAAP financial measure, improved to $290.0 million for the quarter, excluding $21.0 million of integration and rebranding costs. This reflects a 16% increase over $249.3 million of adjusted EBITDA for the same period in 2016. For the first three months of 2017, cash flow from operations was $15.0 million, and free cash flow, a non-GAAP financial measure, was cash usage of $86.9 million.  Reaffirms Financial Targets The company reaffirmed its full year targets for adjusted EBITDA of at least $1.35 billion for 2017 and at least $1.575 billion for 2018. The company also reaffirmed its 2017–2018 cumulative free cash flow target of approximately $900 million, including at least $350 million of free cash flow generated in 2017. CEO Comments   Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “We started the year on a strong note by solidly beating our expectations for earnings, and continuing to expand margins in both transportation and logistics. In North American less-than-truckload, we increased operating income by a robust 49%, in part by running our line-haul, cross-dock and pickup-and-delivery operations more efficiently. Our market-leading position in e-commerce continued to drive growth in last mile and contract logistics, and our intermodal unit won the largest contract in any business line in XPO history.” Jacobs continued, “We anticipate that our performance will remain on a trajectory of high growth and high returns. We have a larger, more integrated sales organization feeding active bids into our $3 billion pipeline. The $716 million of sales we closed through March was a first quarter record for our company, up significantly from $429 million a year ago. Our global procurement team has already achieved $80 million of annual savings, and we’re using our technology to better utilize our labor and capacity — all while helping our customers manage their supply chains more efficiently.” First Quarter 2017 Results by Segment Transportation: The company's transportation segment generated revenue of $2.28 billion for the quarter, compared with $2.30 billion for the same period in 2016, reflecting the divestiture of the North American truckload unit on October 27, 2016. The divested operations contributed $128.8 million of revenue in the first quarter of 2016. Organic revenue growth for the segment was led by last mile and truck brokerage, partially offset by lower revenue in expedited and global forwarding, and unfavorable foreign exchange rates.  Operating income for the transportation segment increased to $100.8 million, compared with operating income of $75.4 million a year ago. Adjusted EBITDA for the segment improved by 13.4%, after absorbing the negative impact of EBITDA divested with the truckload unit. The increases in operating income and adjusted EBITDA were primarily due to a 390 basis point improvement in adjusted operating margin in the North American less-than-truckload unit, as well as growth in North American last mile and European transportation. Logistics: The company’s logistics segment generated total revenue of $1.30 billion for the quarter, compared with $1.26 billion for the same period in 2016. The year-over-year increase in revenue was primarily due to growth in contract logistics in Europe, notably e-commerce and cold chain contracts in the United Kingdom, the Netherlands and Italy. This was partially offset by the unfavorable impact of currency fluctuations, particularly with the British pound sterling. In North America, growth was largely driven by gains in the e-commerce, food and beverage, and industrial sectors, partially offset by a decline in managed transportation revenue. Operating income for the logistics segment increased to $47.2 million, compared with $31.9 million a year ago. Adjusted EBITDA for the segment improved to $98.8 million, compared with $87.8 million a year ago. The increases in operating income and adjusted EBITDA were primarily due to revenue growth, productivity improvements in European contract logistics and SG&A cost reduction in North American contract logistics. Corporate: Corporate SG&A expense was $34.4 million for the quarter, compared with $44.9 million for the same period in 2016. The decrease in corporate expense primarily reflects lower integration costs year-over-year.