Echo Global Logistics Reports Record First Quarter Revenue;

CHICAGO, IL--(Marketwired - Apr 26, 2017) - Echo Global Logistics, Inc. ( NASDAQ : ECHO ), a leading provider of technology-enabled transportation management services, today reported financial results for the quarter ended March 31, 2017.

"Our record first quarter revenue was led by strong growth in our Managed Transportation business. We signed another $56 million of new contracts during the quarter," said Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer of Echo. "Many of these wins are a strong reflection of the combined benefits of our integration with Command Transportation. We have now achieved more than $70 million of our revenue synergy goal through additional modes and offerings to the Command client base."

First Quarter 2017 Highlights

• Total revenue increased by 3% to $415.8 million from the first quarter of 2016; net revenue ⁽¹⁾ was $74.5 million in the first quarter of 2017, compared to $80.8 million in the first quarter of 2016
• Net loss was $2.9 million in the first quarter of 2017, compared to net income of $0.3 million in the first quarter of 2016; non-GAAP EBITDA ⁽¹⁾ was $10.0 million in the first quarter of 2017, compared to $16.5 million in the first quarter of 2016
• Fully diluted loss per share was $0.10 in the first quarter of 2017, compared to fully diluted EPS of $0.01 in the first quarter of 2016; non-GAAP fully diluted EPS ⁽¹⁾ decreased to $0.09 in the first quarter of 2017, compared to $0.24 in the first quarter of 2016
• Less-than-truckload ("LTL") volume increased 4.2% and Truckload ("TL") (includes Partial TL) volume increased 0.5% from the first quarter of 2016

⁽¹⁾ Represents a non-GAAP financial measure. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see the "Reconciliation of Non-GAAP Financial Measures" section of this Press Release.

Summarized financial results and select operating metrics follow:
		Three months ended March 31,
Dollars in millions, except per share data		2017				2016				% change
		(unaudited)
Transactional revenue		$	333.0			$	332.0			0.3	%
Managed transportation revenue			82.8				73.3			13.0	%
Revenue			415.8				405.3			2.6	%
Transportation costs			341.3				324.5			5.2	%
Net revenue (1)			74.5				80.8			(7.8	) %
Commission expense			22.4				24.8			(9.9	)%
Change in contingent consideration			0.1				(0.2	)		160.0	%
Stock compensation expense			2.7				5.3			(50.1	)%
Other selling, general and administrative			42.1				39.5			6.7	%
Selling, general and administrative expense			67.2				69.5			(3.2	) %
Depreciation			4.5				3.5			26.4	%
Amortization			3.6				4.0			(10.6	)%
Depreciation and amortization			8.0				7.5			6.8	%
(Loss) Income from operations			(0.8	)			3.8			(120.3	) %
Cash interest expense			1.7				1.6			0.6	%
Non-cash interest expense			2.0				1.9			5.9	%
Interest expense			3.6				3.5			3.4	%
(Loss) Income before provision for income taxes			(4.4	)			0.3			(1,485.9	) %
Income tax (benefit) expense			(1.5	)			0.1			(2,881.4	)%
Net (loss) income			(2.9	)			0.3			(1,193.6	) %
Fully diluted (loss) earnings per share		$	(0.10	)		$	0.01			(1,258.2	) %
Diluted shares (1)(2)			28.2				29.8
(1) See the "Reconciliation of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of this Press Release.
(2) For the three months ended March 31, 2017, 423,796 incremental shares related to stock-based awards were not included in the computation of diluted loss per share because of the net loss during the period. Diluted shares used in the reconciliation of non-GAAP fully diluted EPS was 28,579,093.

Reconciliation of Non-GAAP Financial Measures		Three months ended March 31,
Dollars in millions, except per share data		2017			2016			% change
		(unaudited)
Total revenue		$	415.8		$	405.3		2.6%
Transportation costs			341.3			324.5		5.2%
Net revenue (1)		$	74.5		$	80.8		(7.8 )%
Net (loss) income		$	(2.9 )		$	0.3		(1,193.6 )%
Change in contingent consideration			0.1			(0.2)		160.0%
Depreciation			4.5			3.5		26.4%
Amortization			3.6			4.0		(10.6)%
Non-cash interest expense			2.0			1.9		5.9%
Stock compensation expense			2.7			5.3		(50.1)%
Cash interest expense			1.7			1.6		0.6%
Income tax (benefit) expense			(1.5)			0.1		(2,881.4)%
Non-GAAP EBITDA (1)		$	10.0		$	16.5		(39.4 )%
Fully diluted (loss) earnings per share		$	(0.10 )		$	0.01		(1,258.2 )%
Change in contingent consideration			0.00			(0.01)		162.6%
Amortization			0.13			0.13		(6.7)%
Non-cash interest expense			0.07			0.06		10.5%
Stock compensation expense			0.09			0.18		(47.9)%
Tax effect of adjustments			(0.10)			(0.13)		28.1%
Non-GAAP fully diluted EPS (1)		$	0.09		$	0.24		(62.5 )%
Operating Metrics
Net revenue margin			17.9%			19.9%		(202) bps
Total employees			2,415			2,371		1.9%
Sales employees and agents			1,643			1,651		(0.5)%
Truckload (TL) revenue %			67.4%			67.8%		(32) bps
Less than truckload (LTL) revenue %			27.4%			26.1%		129 bps
Intermodal revenue %			3.7%			4.4%		(67) bps
(1) See the "Non-GAAP Financial Measures" section of this Press Release for the definition, and a discussion of, each Non-GAAP financial measure.

2017 Full Year Guidance

"We expect total revenue for the second quarter of 2017 to be between $455 million and $485 million and also reiterate our full year 2017 total revenue guidance of $1.85 billion to $1.97 billion," said Kyle Sauers, Chief Financial Officer of Echo.

Conference Call

A conference call, with accompanying presentation slides, will be broadcast live on April 26, 2017 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer; Dave Menzel, President and Chief Operating Officer; and Kyle Sauers, Chief Financial Officer, will host the call. To participate in the call, dial 877-303-6235 (toll free) or 631-291-4837 (toll) and reference "Echo Global Logistics." To listen to a live webcast of the call, visit the Echo website at http://ir.echo.com . A replay of the webcast will be available for one year following the live webcast in the Investor Relations section of the Echo website. To listen to an audio replay, call 855-859-2056 (toll free) or 404-537-3406 (toll) and enter conference ID 6285901. The audio replay will be available through May 3, 2017.

Non-GAAP Financial Measures

This release includes the following financial measures defined as "Non-GAAP financial measures" by the Securities and Exchange Commission (the "SEC"): Net Revenue, Non-GAAP EBITDA and Non-GAAP Fully Diluted EPS. Net revenue is calculated as total revenue less transportation costs. Non-GAAP EBITDA is defined as net (loss) income excluding the effects of changes in contingent consideration, depreciation, amortization, stock compensation expense, cash and non-cash interest expense and income taxes. Non-GAAP Fully Diluted EPS is defined as fully diluted EPS excluding changes in contingent consideration, amortization, non-cash interest expense, stock compensation expense and the tax effect of these adjustments. We believe such measures provide useful information to investors, because they provide information about the financial performance of the Company's ongoing business.

Net revenue, Non-GAAP EBITDA and Non-GAAP Fully Diluted EPS are used by management in its financial and operational decision-making and evaluation of overall operating performance. These measures may be different from similar measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure, see "Reconciliation of Non-GAAP Financial Measures" included in this release.

Forward-Looking Statements

This release contains statements relating to future results. These statements are forward-looking statements under the federal securities laws. We can give no assurance that any future results discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. For a discussion of important factors that could affect our actual results, please refer to our SEC filings, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2016.

Echo Global Logistics, Inc.
Condensed Consolidated Statements of Operations
			Three Months Ended March 31,
			2017				2016
			(unaudited)
Revenue			$	415,752,274			$	405,277,532
Costs and expenses:
	Transportation costs			341,254,013				324,450,717
	Selling, general and administrative expenses			67,237,322				69,476,488
	Depreciation and amortization			8,038,259				7,529,333
(Loss) Income from operations				(777,320	)			3,820,994
Interest expense				(3,624,136	)			(3,503,395	)
(Loss) Income before provision for income taxes				(4,401,456	)			317,599
Income tax benefit (expense)				1,529,413				(54,988	)
Net (loss) income			$	(2,872,043	)		$	262,611
Basic (loss) earnings per share			$	(0.10	)		$	0.01
Diluted (loss) earnings per share			$	(0.10	)		$	0.01

Echo Global Logistics, Inc.
Condensed Consolidated Balance Sheets
				March 31,  2017			December 31,  2016
				(unaudited)
		Cash and cash equivalents		$	24,255,299		$	16,646,089
		Accounts receivable, net of allowance for doubtful accounts			232,675,128			231,430,645
		Other current assets			21,931,400			20,224,140
		Total noncurrent assets			495,420,461			498,467,042
Total assets				$	774,282,288		$	766,767,916
		Accounts payable		$	147,062,830		$	135,386,424
		Other current liabilities			27,929,976			32,554,271
		Convertible notes, net			205,359,414			203,564,011
		Other noncurrent liabilities			38,078,500			37,113,480
		Stockholders' equity			355,851,568			358,149,730
Total liabilities and stockholders' equity				$	774,282,288		$	766,767,916

Echo Global Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
		Three Months Ended March 31,
		2017				2016
		(unaudited)
Net cash provided by operating activities		$	14,110,158			$	14,349,978
Net cash used in investing activities			(4,044,500	)			(4,311,663	)
Net cash used in financing activities			(2,456,448	)			(23,041,832	)
Increase (Decrease) in cash and cash equivalents			7,609,210				(13,003,517	)
Cash and cash equivalents, beginning of period			16,646,089				56,522,194
Cash and cash equivalents, end of period		$	24,255,299			$	43,518,677

About Echo Global Logistics

Echo Global Logistics, Inc. ( NASDAQ : ECHO ) is a leading provider of technology-enabled transportation and supply chain management services. Headquartered in Chicago with more than 30 offices around the country, Echo offers freight brokerage and Managed Transportation solutions for all major modes, including truckload, partial truckload, LTL, intermodal, and expedited. Echo maintains a proprietary, web-based technology platform that compiles and analyzes data from its network of over 40,000 transportation providers to serve clients across a wide range of industries and simplify the critical tasks involved in transportation management. For more information on Echo Global Logistics, visit: www.echo.com .

ECHO: Earnings