Flatbed-Focused Builders Transportation Joins Daseke

Daseke, Inc. (NASDAQ: DSKE) (NASDAQ: DSKEW), the largest flatbed, specialized transportation and logistics solutions company in North America, is being joined by Builders Transportation Co., a Memphis-based carrier of steel, aluminum and metal products.

Builders Transportation operates a fleet of more than 300 company trucks and nearly 500 spread-axle trailers.

The company is solely focused on traditional flatbed operations through the 48 contiguous states, primarily in the eastern two-thirds of the U.S., hauling coil steel, wire products, structural and sheet steel, aluminum products, building materials, cast iron, steel pipe and machinery. It has won Carrier of the Year awards from several of their core customers.   

Under the terms of the purchase agreement, Daseke acquired Builders Transportation for a total consideration of $53.8 million, which included $3.4 million in Daseke stock. For the trailing 12-month period ended June 2018, Builders Transportation did an estimated $72.4 million in revenue and an estimated $9.7 million in Adjusted EBITDA. 

“We’ve had Builders Transportation on our radar for quite some time – we’ve been impressed with the focus and family-rooted culture of the company,” said Don Daseke, chief executive officer of Daseke. “They work with A-list customers, and like our other operating companies, have a passion for their people. The company has been in business since 1954 and it has a long legacy as a family-run operation. They will be a great addition to the Daseke family.”

Builders Transportation has been family owned and operated since Frank Phillips Sr. purchased the six-truck operation in 1961 and, along with his sons, has steadily grown the business to where it is today.

According to John Phillips, CEO of Builders Transportation, Daseke is the right fit, at the right time. “Over the years, we’ve had companies approach us, but we never took any of that seriously – we didn’t want to give up what our family has built,” he said. “We have a long history and are very protective of our heritage. We have people here who have been with us their entire career. Being with Daseke lets us continue being who we are, and that’s critically important to us.”

“The group of operating companies we’re joining reads like the ‘who’s who’ in flatbed and specialized trucking,” said Gene Phillips, COO of Builders Transportation. “We’re looking forward to sharing best practices and comparing notes on business strategy with our new sister companies. The consolidated purchasing power, through Daseke Fleet Services, is also very compelling. We expect it will help us reduce our costs and make us even stronger.”

[1] Based on the internally prepared financial statements of Builders Transportation Co.

[1] Net income of $2.1 million plus depreciation and amortization of $6.6 million, and interest of $1.0 million results in Adjusted EBITDA of $9.7 million.

About Daseke Inc. 

Daseke Inc. is a leading consolidator and the largest owner of flatbed and specialized transportation and logistics capacity in North America. Daseke offers comprehensive, best-in-class services to many of the world’s most respected industrial shippers through experienced people, more than 5,200 tractors, more than 11,000 flatbed and specialized trailers, and million-plus square feet of industrial warehousing space. Daseke is uniquely positioned as the largest carrier, yet has only a small percent market share, of the highly fragmented flatbed and specialized transportation market. For more information, please visit www.daseke.com.

Non-GAAP Measures

This presentation contains financial information from Aveda’s 2017 and 2016 audited financial statements prepared in Canadian $ (C$) and in accordance with International Financial Reporting Standards (IFRS) and filed on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) on April 16, 2018. Standardized EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is Standardized EBITDA, excluding foreign exchange gains or losses which are primarily related to the US dollar activities of the Company and can vary significantly depending on exchange rate fluctuations, which are beyond the control of the Company, and write downs of intangible assets, goodwill impairment, financing costs, gains or losses on disposal of assets, stock based compensation, fees and expenses on settlement of debt and losses on extinguishment of debt, acquisition earn out adjustments, and gain or loss on business combination.

Forward-Looking Statements

This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Projected financial information are forward-looking statements. Forward-looking statements, including those with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Daseke, are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, general economic risks (such as downturns in customers’ business cycles and disruptions in capital and credit markets), driver shortages and increases in driver compensation or owner-operator contracted rates, loss of senior management or key operating personnel, Daseke’s ability to recognize the anticipated benefits of recent acquisitions, Daseke’s ability to identify and execute future acquisitions successfully, 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, Daseke’s ability to generate sufficient cash to service all of its indebtedness, restrictions in Daseke’s existing and future debt agreements, increases in interest rates, the impact of governmental regulations and other governmental actions related to Daseke and its operations, litigation and governmental proceedings, and insurance and claims expenses. For additional information regarding known material factors that could cause actual results to differ from those expressed in forward-looking statements, please see Daseke’s filings with the Securities and Exchange Commission, available at www.sec.gov, the Annual Report on Form 10-K for the year ended December 31, 2017, particularly the section “Risk Factors.” You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Daseke undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.