Daseke Provides Business Update (6/18/20)
Company expects to generate positive cash flows from operating activities, positive Free Cash Flow, and further strengthen liquidity position during fiscal second quarter
Freight volumes improved five of last six weeks since the April low point
ADDISON, Texas, (GLOBE NEWSWIRE) -- Daseke, Inc. (NASDAQ: DSKE) (“Daseke” or the “Company”), the largest flatbed and specialized transportation and logistics solutions company in North America, provided an update on its business, operations and strong liquidity position as of June 1, 2020.
Freight volumes have improved five of the last six weeks since troughing during the month of April
Company expects positive cash flows from operating activities and positive Free Cash Flow in the second quarter ending June 30, 2020
At June 1, 2020 the Company had more than $220 million of available liquidity, including approximately $80 million available under the revolving credit facility and cash and cash equivalents
Cash and cash equivalents as of June 1, 2020 increased to over $140 million compared to $107.5 million at the end of the first quarter
Financial results continue to benefit from the previously launched integration, business improvement and comprehensive restructuring plans, which have strengthened the Company and continued to support positive operating profits and free cash flow generation
Daseke has made substantial progress on the strategic divestiture of its Aveda assets and expects to conclude the process by the end of the third quarter 2020
“As the leader in the North American flatbed and specialized transportation market, Daseke continues to move the industrial economy as many of the companies in the end markets we serve are essential service providers and critical components to the economy,” said Chris Easter, Chief Executive Officer of Daseke. “Our business model remains stable and resilient, supported by a highly diverse, blue-chip customer base and a substantial asset-light business, which brings a highly variable cost structure. Further, the proactive efforts we’ve taken over the last year to streamline our operations and improve our business flexibility have helped Daseke generate positive free cash flow and drive further operational and cost efficiencies, despite the headwinds to volumes related to the pandemic during the quarter.”
Easter continued, “Additionally, excluding the Memorial holiday week, we’ve seen sequential volume improvements for five straight weeks across the month of May and the beginning of June. We will remain agile and adaptive to changes in the environment, as we continue to deliver on our goals to improve operating income results and consistently grow our cash flows.”
Easter concluded, “Lastly, we’ve made substantial progress in the strategic divestiture of our Aveda assets, which focus primarily on the oil & gas end market. We expect to complete the process by the end of the third quarter, at which time our exposure to the oil & gas end market will fall from approximately 13% of revenue in 2019, to less than 2% moving forward. More importantly, we will have further streamlined our business from 16 operating companies at this time last year, to 9 following completion of the process. We have materially transformed our business and are well positioned to drive improved operating performance and long-term growth as the U.S. economy continues to build momentum and recover from the pandemic.”
About Daseke, Inc.
Daseke, Inc. is the largest flatbed and specialized transportation and logistics company in North America. Daseke offers comprehensive, best-in-class services to many of the world’s most respected industrial shippers through experienced people, a fleet of more than 5,000 tractors and 11,500 flatbed and specialized trailers. For more information, please visit www.daseke.com. https://www.globenewswire.com/news-release/2020/06/18/2050078/0/en/Daseke-Provides-Business-Update.html