After cleaning up mess, Roadrunner CEO Jamroz plots new future
Chris Jamroz, CEO of Roadrunner, is ready for the company's next phase. (Photo: Roadrunner)\Jim Allen, FreightWaves)
Chris Jamroz, CEO of Roadrunner, is ready for the company's next phase. (Photo: Roadrunner)\Jim Allen, FreightWaves)

With Roadrunner Transport recently completing a restructuring of its ownership, the LTL carrier now has its sights set on a bigger stage: getting back to being traded on an exchange where the world will know how it’s doing every 90 days.

In an interview with FreightWaves, Chris Jamroz, the company’s CEO and chairman and a significant holder of equity in Roadrunner (OTC: RRTS), also said he sees the company staying in its LTL niche, as a carrier of freight between key metro areas rather than seeking the sort of massive distribution network of hundreds of warehouses found at other large LTL carriers.

The late-November deal saw Prospero Staff Capital buy out all but a small share of Roadrunner equity from Elliott Investment Management, which had owned about 90% of the company since a 2019 transaction.

Prospero is a Jamroz investment vehicle that teamed with investor Ted Kellner to buy out Elliott Management, which Jamroz said had “made money on this investment. It’s probably taken a little bit longer than they had anticipated at the beginning. But it was a good investment. They’re happy and they’re moving on.”

What remains as ownership is a small stake still owned by Elliott (Jamroz would not disclose the number but it appears to be about 2%), about an 8% float of publicly traded shares in the hands of investors. The stock is traded on the so-called over-the-counter “pink sheets.”

That limited float provides a daily volume of about 21,500 shares, per Barchart. The stock also is up about 100% in the last month given the kick it got from the announcement of the new ownership. It closed Friday at $2.08 per share.

Setting a new course for public equity markets

Jamroz said he does not intend for that structure to remain in place.

When Jamroz came aboard as executive chairman in 2019, his plan was to bring about a turnaround that, if successful, “would come and lift the stock again, and that’s today,” he said.

Jamroz was unsparing in describing the company he walked into in 2019. It had been battered by an accounting scandal that led to indictments in 2018. According to Jamroz, he did not invest in Roadrunner when he joined. Rather, he followed the strategy he had taken at other companies where he led a turnaround by taking an equity stake of 20% to 30%

Jamroz said Roadrunner chose to delist from the New York Stock Exchange because “sometimes in a severe trauma, you have put patients under a drug-induced coma because they wouldn’t survive with what needs to be done. That was the same with Roadrunner.”

“It looked terrible,” Jamroz said of Roadrunner when he joined. “It looked like it had every sign of looking like I would have my first bankruptcy on my stellar resume. And everybody was telling me, Chris, you have this King Midas reputation. Why would you want to risk it?”