Shares in Roadrunner Transportation RRTS -17.69% Systems Inc. tumbled to below $1 a share on Monday, accelerating a recent selloff as the trucking company grapples with an operational overhaul and fallout from accounting problems that led to the indictment this year of two former executives.
Roadrunner’s stock has plunged nearly 80% since mid-March, when it was trading at $4.14 per share. The Illinois-based company said it had engaged Barclays BCS 1.74% Capital Inc. to advise the business.
Roadrunner shares fell to 87 cents a share Monday, down nearly 18% from Friday’s close.
The company, which grew rapidly in recent years through a series of acquisitions, has been losing money despite a buoyant freight market, as it restates several years of financial reports and overhauls its operations.
Roadrunner said in a statement that it was working with Barclays and Elliott Management Corp., a major shareholder, on its capital structure and “long-term business plans.”
“We are encouraged by the current trends in all three of our business segments and are continuing to move forward in implementing improvements in our operational and corporate structure which are designed to support future growth,” Roadrunner said in the statement.
The company lost $42 million in the second quarter, up from a $37.9 million loss in the same quarter last year, on higher interest costs while its revenue increased 5% to $558 million in the June quarter. It also reported $8.6 million in corporate restructuring and restatement costs in the second quarter.
The losses follow a $91.2 million reported net loss in fiscal 2017.
In June, federal prosecutors charged two former Roadrunner executives for their alleged role in a complicated accounting and securities fraud scheme that authorities said resulted in the loss of more than $245 million in shareholder value. The company had previously said it would restate earnings going back several years after disclosing accounting problems in the wake of a rapid spate of acquisitions.
Roadrunner said the company has taken corrective actions since January of 2017 to strengthen its internal compliance processes and controls, including replacing its former management team.
Roadrunner last week also disclosed a data breach after employees clicked on phishing emails earlier this year.
The company’s woes stand in contrast to the broader transportation sector, where stock prices have been rising steadily this summer on strong freight demand ahead of what is expected be a busy peak shipping season.
Write to Jennifer Smith at [email protected]