Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Swift Transportation — Bank of America Merrill Lynch 2015 Transportation Conference
33 slides from Knight-swift Transportation's conference presentation, May 14, 2015
Slide 1: Swift Transportation Overview
Click to edit Master title style Swift Transportation Overview
Slide 2: Swift Transportation Overview
Click to edit Master title style SWIFT TRANSPORTATION OVERVIEW Swift Confidential and Proprietary 2
Slide 3: Swift Transportation at a Glance
Click Transportation Swift to edit Master title at a style Glance • Multi-faceted $4.3 billion transportation solution provider in a fragmented industry prime for consolidation • Broad and unique suite of service and equipment offerings when combined with our expertise can simplify our customers com
Slide 4: Total Revenue and Adjusted Operating Income
Click Revenue Total to edit Master title styleIncome and Operating Total Revenue (1) Adjusted Operating Income (5) Note: Acquisitions recorded with pooling of interests or similar accounting treatment reflected for full year in year of acquisition; MS Carriers - 2001, IEL – 2007, and Central Refrige
Slide 5: Revenue by Service Offering and Industry
Click to edit Revenue MasterOffering by Service title style and Industry Revenue by Service Offering Revenue by Industry FY 2014 Revenue, net of fuel surcharge: $3.5 Billion Diverse revenue base across service offerings & industries Swift Confidential and Proprietary 5
Slide 6: Integrated Swift Flywheel
Click toIntegrated Swift’s edit MasterFlywheel title style Delivering a better life by creating value through revenue growth, Swift Confidential and Proprietary cost control, process improvement and utilization 6
Slide 7: U.S. Freight Transportation Market
Click to edit Transportation U.S. Freight Master title style Market 2013 - $840B 2025 - $1,445B 4.26% CAGR For-Hire Truckload - $321.7B • For-hire truckload projected to grow in absolute size as well as percent of total U.S. freight transportation market over the next 10 years. *Excluding Swift U.S.
Slide 8: Industry Demand
Industry Demand Year-Over-Year Percent Change Quarterly Real GDP & Forecasts Source: ATA’s Economics Department Sources: BEA & ATA For-Hire Truckload Loads For-Hire TL Loads Source: ATA’s Trucking Activity Report Source: ATA’s Trucking Activity Report 8 Swift Confidential and Proprietary Demand for
Slide 9: Truckload Capacity & Pricing
Truckload Capacity & Pricing For-Hire Tractor Changes & U.S. Class 8 Trucks: Average Age Class 8 Tractor Sales Source: ATA’s Trucking Activity Report and ACT Research Source: ACT Research Capacity: Other Thoughts Pricing Proxies & Spot Changes Year-over-Year Percent Change Source: ATA’s Trucking Act
Slide 10: Challenging Driver Market
Challenging Driver Market Driver Shortage Truck Driver Turnover Rates Small Carrier increasing to 95% Source: ATA Source: ATA Median Employee Driver Age Gender Statistics Source: ATA Source: Bureau of Labor Statistics 10 Swift Confidential and Proprietary 10 Driver shortage remains an issue; constra
Slide 11: Summary
Click to edit Master title style Summary • Annual economic growth expected to be better in 2015 than 2014 • Demand for Truckload services expected to remain strong • Capacity remains tight • The driver shortage is as bad as ever. Recent pay increases are helping, but not solving the problem. Source:
Slide 12: Financial Summary
Click to edit Master title style FINANCIAL SUMMARY Swift Confidential and Proprietary 12
Slide 13: Net Debt and Leverage Ratio
ClickDebt Net to edit andMaster title Leverage style Ratio CRS Acquisition *2008 – 2012 data does not include Central Refrigerated Leverage expected to increase slightly but stay Swift Confidential and Proprietary below 2014 levels for 2015 13
Slide 14: Capital Allocation Strategy
Click toAllocation Capital edit Master title style Strategy Recruiting Expense Current State Reinvest in fleet Retention Recruiting Safety/Claims Expense Fuel Economy Grow organically 2009 2010 2011 2012 Recruiting Expense 2013 2014 Repay debt Insurance and Claims Expense Opportunistic
Slide 15: Truckload: Relative Valuation
Click to edit Truckload: MasterValuation Relative title styleSlide PRICE / FY15 EPS 21.3x 2014 FY Adj. EPS = $1.38 22.0x Avg. 18.1x 19.7x 20.0x 2015 FY Adj. EPS guidance of $1.64 - $1.74 20.0x Price / 2015 EPS 18.0x 17.2x 17.1x 16.4x Low-end and high-end of guidance 16.0x 15.0x represents 19%
Slide 16: Questions
Click to edit Master title style QUESTIONS Swift Confidential and Proprietary 16
Slide 17: Appendix
Click to edit Master title style APPENDIX Swift Confidential and Proprietary 17
Slide 18: Partnerships with our Blue-Chip Customer Base
Click to edit Creating Master title Partnerships withstyle our Blue-Chip Customer Base Aligning with Best in Class Customers for Long-Term Relationships Swift’s customer base requires complex transportation services Swift Confidential and Proprietary 18
Slide 19: Providing Our Customers Solutions They Need
Click to edit Providing Masterour Solutions titleCustomers style Need Demonstrated ability to provide total transportation solutions with a comprehensive suite of services and equipment offerings • 100% of Swift’s Top 20 customers and 75% of top 50 utilize multiple service offerings Transportation S
Slide 20: Swift's Unique Footprint
Click to edit Master title style Swift’s unique footprint puts us closer to our customers and the homes of our drivers Swift Confidential and Proprietary 20
Slide 21: Our Purpose
Click to edit Master title style Our Purpose SM Driving value through Best in Class transportation solutions Swift Confidential and Proprietary 21
Slide 22: Annual Driver Employee Compensation
Annual Click to Employee Driver edit Master title Compensation style 2013 Median Pay Including Incentives and Bonuses *Solo Drivers Only Source: ATA’s Driver Compensation Study 2014
Slide 23: Truck Driver Age Demographics
Click Truckto edit Master Driver title style Age Demographics Swift Confidential and Proprietary 23
Slide 24: Swift Consolidated Metrics
Click Swiftto edit MasterMetrics Consolidated title style Note: All prior year data includes Central Refrigerated Swift Confidential and Proprietary 24
Slide 25: Truckload Segment Metrics
Click to edit Truckload Master Metrics Segment title style Swift Confidential and Proprietary 25
Slide 26: Dedicated Segment Metrics
Click to edit Dedicated Master Metrics Segment title style Swift Confidential and Proprietary 26
Slide 27: Central Refrigerated Segment Metrics
Click to Refrigerated Central edit Master title style Metrics Segment Swift Confidential and Proprietary 27
Slide 28: Intermodal Segment Metrics
Click to editSegment Intermodal Master title style Metrics Swift Confidential and Proprietary 28
Slide 29: Swift Consolidated Metrics - Q1
Click Swiftto edit MasterMetrics Consolidated title style - Q1 Note: All prior year data includes Central Refrigerated Swift Confidential and Proprietary 29
Slide 30: Truckload Segment Metrics - Q1
Click to edit Truckload Master Metrics Segment title style – Q1 Swift Confidential and Proprietary 30
Slide 31: Dedicated Segment Metrics - Q1
Click to edit Dedicated Master Metrics Segment title style – Q1 Swift Confidential and Proprietary 31
Slide 32: Central Refrigerated Metrics - Q1
Click to Refrigerated Central edit Master title style Metrics – Q1 Segment Swift Confidential and Proprietary 32
Slide 33: Intermodal Segment Metrics - Q1
Click to editSegment Intermodal Master title style– Q1 Metrics Swift Confidential and Proprietary 33
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