Roadrunner Freight Revenue and Competitors

Roadrunner Freight Systems, Inc. ("Roadrunner") is a super-regional, less-than-truckload ("LTL") motor freight trucking company, focusing on providing two to three day delivery service on LTL shipments to destinations over 500 miles. The Company ships direct to customers, delivery agents or terminals without stopping at a break bulk (a large terminal where freight is sorted and reloaded), thereby reducing handling, claims and delivery times by two to three days over its competitors. Roadrunner was founded in 1984; William J. Troyk, one of its original founders, remains Chairman of the Board and a stockholder. The Company currently has approximately 400 employees and operates approximately 100 tractors and trailers for line-haul operations (terminal-to-terminal) and 110 tractors and 500 trailers for city operations (pickup and delivery). The Company's strategy of utilizing owner/operators and partnering with other freight companies substantially reduces the Company's capital expenditures and provides flexibility in meeting changes in the freight market. All of the Company's owner/operators and most of its employees are on an incentive-based compensation system which results in a motivated workforce and a cost structure which is more variable than its competitors, enabling the Company to maintain its profitability during industry downturns.