GlobalTranz releases data points with all performance numbers pointed higher

But Farrell, in the prepared statement, said GlobalTranz has plans to record revenue of $1.9 billion in 2021 “following [the company’s] strong finish in 2020.” In his email to FreightWaves, Farrell said reaching that target would require growth in revenue percentage-wise “in the high teens.”

Among the other key data points provided by GlobalTranz, the company’s gross profit rose 24% from the fourth quarter of 2019. The growth in revenue and gross profit was “driven by the continued expansion of GlobalTranz’s Managed Transportation Services and Final Mile Delivery offerings … as GlobalTranz’s shipper costumers reached out for transportation solutions during a peak season marked by historically high freight volumes.”

The growth in the company’s EBITDA was 67% over the fourth quarter of 2019, the company said.

In his email to FreightWaves, Farrell said the revenue growth in the fourth quarter and for the full year was a result of both more “freight under management in our managed transportation business” as well as additional increases in volume for existing and new customers. 

“In Q4 and through much of 2020, capacity was tight, which put pressure on gross margins overall,” Farrell said in his email. “We were able to manage through this with our strong carrier partner relationships.”

Farrell returned to the company as CEO in September following the departure of Renee Krug.

A key number for earnings at all transportation companies in the fourth quarter was purchased transportation, as tight driver markets and strong demand for freight resulted in that line item being higher in the earnings reports of both carriers and 3PLs. In response to the FreightWaves email, Farrell said it ran into the same tight market for capacity as others. “That said, through modal optimization, optimization solutions, efficiencies from our technology and strong carrier partner relationships, we were able to generate strong gross margins,” he wrote. 

In the ratings agencies’ actions of 2020, both S&P Global Ratings and Moody’s further reduced their ratings for GlobalTranz that were already non-investment level. A high level of debt was cited as one of the key reasons, but part of that debt was a result of GlobalTranz doing what a lot of companies did at the start of the pandemi: pull down the revolving credit line to ensure adequate liquidity. 

Farrell said all of those revolving funds were repaid when GlobalTranz found it did not need them. However, the ratings agencies have not taken action yet to alter the debt rating.

GlobalTranz’s prepared statement on its earnings spoke about the company’s Managed Transportations Solutions segment, which it said saw revenue rise by more than 61% year-on-year. GlobalTranz said the growth was spurred in part by the Final Mile Offering in July and the Pop-Up Fleet solution a month later. 

GlobalTranz acquired Cerasis at the start of 2020, and the company statement said the acquisition made the Final Mile Offering possible. A feature of GlobalTranz’s TMS, it matches up an LTL carrier with a final-mile carrier. 

The company said that last-mile deliveries processed through the GlobalTranz network “doubled in the fourth quarter compared to the first quarter of 2020.” 

GlobalTranz describes the Pop-up Fleet Solution as having the ability to quickly offer capacity to companies with their own dedicated trucking division but that on short notice need capacity. 

More articles by John Kingston

GlobalTranz workers had job classification changes, now want overtime pay

BMO’s transportation sector numbers tell story of stronger trucking market

Ryder’s used vehicle sales climb in value, nearing or surpassing targets