RXO, Inc. (NYSE:RXO) Q3 2024 Earnings Conference Call November 7, 2024 7:00 AM ET
Company Participants
Drew Wilkerson - CEO
Jamie Harris - CFO
Jared Weisfeld - Chief Strategy Officer
Conference Call Participants
Ariel Rosa - Citigroup.
Scott Schneeberger - Oppenheimer
David Zazula - Barclays
Joe Hafling - Jefferies
Ken Hoexter - Bank of America
Bruce Chan - Stifel
Scott Group - Wolfe
David Hicks - Raymond James
Operator
Welcome to the RXO Q3 2024 Earnings Conference Call and Webcast. My name is Joelle, and I will be your operator for today's call. Please note that this conference is being recorded.
During this call, the company will make certain forward-looking statements within the meaning of federal securities laws, which, by their nature, involve a number of risks and uncertainties and other factors that could cause actual results to differ materially from those in forward-looking statements.
A discussion of today's factors that could cause actual results to differ materially is contained in the company's SEC filings as well as in the earnings release. You should refer to a copy of company's earnings release in the Investor Relations section on the company's website for additional important information regarding forward-looking statements and disclosures and reconciliations of non-GAAP financial measures that the company uses when discussing its results.
I will now turn the call over to Drew Wilkerson. Mr. Wilkerson, you may begin your conference.
Drew Wilkerson
Good morning, everyone, and thank you for joining today. I'm here in Charlotte with RXO's Chief Financial Officer, Jamie Harris; and Chief Strategy Officer, Jared Weisfeld. There are three main points I want to convey this morning. First, we completed our transformative acquisition of Coyote Logistics in the quarter. The acquisition significantly increases RXO's earning power over the long term. The integration is ahead of schedule, and we're already seeing early wins from the combined business. As a result, we're raising our estimate for cost synergies and now expect at least $40 million.
In addition, we expect to achieve significant benefits within cost of purchase transportation once our tech platforms are integrated. Our balance sheet is even stronger than it was pre-acquisition. Our leverage decreased by more than 40% as a result of our successful equity financing.
Second, while the market remains soft, RXO continued to deliver on our financial commitments for adjusted EBITDA, adjusted free cash flow and brokerage gross margin. Importantly, we achieved these solid results while completing a transformative acquisition.