Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q4 2021 Earnings Presentation
24 slides from Knight-swift Transportation's earnings presentation, Jan 26, 2022
Slide 1: Knight-Swift Transportation Holdings
KNIGI SUE TRANSPORTATIO ISWIFTg KNIGHT * SWIFT* AAA COOPER* BARR-NUNN e ABILENE ® MME
Slide 2: Disclosure
Disclosure This presentation, including documents incorporated herein by reference, will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements
Slide 3: KNX Overview
KNX Overview Truckload Less-than-Truckload 1 YTD Revenue Diversification Q4 2021 FY 2021 Q4 2021 FY 2021 Revenue xFSR 2 $ 992.7M $3,681.3M Revenue xFSR $ 177.9M $ 828.3M Adjusted Op Income $ 251.3M $ 785.8M Adjusted Op Income $ 17.3M Adjusted OR 74.7 % 78.7 % Adjusted OR 90.3 % LTL 1 14% ~ 13,200 ir
Slide 4: Growing Shareholder Value
Growing Shareholder $1.5B FY '21 Eleos February 2021 UTXL June 2021 Value AAA Cooper July 2021 Multiple MME December 2021 Acquisitions $57M FY '21 Strong Free Stock $503M since the merger FY '21 FCF of $908M (2) Cash Flow Repurchase Cash conversion ratio of 1.2 (1) Shareholder Value $64M paid out FY
Slide 5: Post Merger Trends
Post Merger Trends Substantial improvement in earnings as a result of significant margin improvements at Swift, growth in our Logistics business, development in new businesses, and investment in an LTL network Full Year Adjusted Operating Income 1 2 Rolling 4 Quarter Adjusted EPS 1 $1,250M $5.00 $1,
Slide 6: 2021 Comparative Results
2021 Comparative Results Knight-Swift Consolidated Q4 2021 Q4 2020 Change YTD 2021 YTD 2020 Change (Dollars in thousands, except per share data) (Dollars in thousands, except per share data) Total revenue $ 1,816,859 $ 1,277,961 42.2 % $ 5,998,019 $ 4,673,863 28.3 % Revenue xFSC $ 1,675,341 $ 1,207,
Slide 7: Operating Performance – Truckload
Operating Performance – Truckload Truckload Financial Metrics • 28.9% year-over-year improvement in Adjusted Operating Income Q4 2021 Q4 2020 Change (Dollars in thousands) • 74.7% Adjusted Operating Ratio in Q4 2021 compared Revenue xFSC $992,692 $940,912 5.5 % to 79.3% the previous year Operating i
Slide 8: Operating Performance – Logistics
Operating Performance – Logistics Logistics Financial Metrics • 310.5% increase in Adjusted Operating income to $45M Q4 2021 Q4 2020 Change with minimal capital investment (Dollars in thousands) • 84.0% increase in load counts Revenue ex intersegment $299,426 $125,039 139.5 % Operating income $44,85
Slide 9: Operating Performance – LTL
Operating Performance – LTL LTL Financial Metrics Q4 2021 • $17.3M of Adjusted Operating Income (Dollars in thousands) • 90.3% Adjusted Operating Ratio in Q4 2021 Revenue xFSC $177,885 • 8.6% increase in LTL Revenue xFSC per shipment Operating income $13,700 compared to proforma Q4 2020 Adjusted Ope
Slide 10: Operating Performance – Intermodal
Operating Performance – Intermodal • 7.5% increase in Revenue Intermodal Financial Metrics • $17.2M year-over-year improvement in Operating Q4 2021 Q4 2020 Change Income (Dollars in thousands) • 81.2% Operating Ratio during Q4 2021 compared Revenue ex intersegment $123,564 $114,969 7.5 % with 94.8%
Slide 11: Operating Performance – Non-Reportable
Operating Performance – Non-Reportable • $58.8M increase in Revenue driven by additional equipment leasing, warehousing Non-Reportable Financial Metrics activities, and expanded services provided to 3rd party carriers Q4 2021 Q4 2020 Change (Dollars in thousands) • $26.4M year-over-year improvement
Slide 12: Market Outlook FY 2022
Market Outlook FY 2022 • We expect strong demand and constrained capacity throughout 2022 for both truckload and LTL markets • Industry capacity expansion continues to be limited by manufacturing constraints • Sourcing and retaining drivers will remain challenging and lead to additional driver wage
Slide 13: 2022 Guidance
2022 Guidance Expected Adjusted EPS for the full year 2022 of $5.10 - $5.30 Full Year Guidance Assumptions • Double digit truckload contract rate increases while spot trends continue through the first half of the year • Stable truck count with a modest sequential improvement in miles per truck • Str
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliation and Adjusted Operating Ratio
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,816,859 $ 1,277,961 $ 5,998,019 $ 4,673,863 Total operating expenses (1
Slide 16: Non-GAAP Reconciliation and Adjusted Operating Ratio (notes)
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio (Unaudited) 1 Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating ratio to consolidated non-GAAP Adjusted Operating Ratio. 2 The reported results do not include the results of o
Slide 17: Adjusted Net Income and Adjusted EPS
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, 2021 2020 2021 2020 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 254,616 $ 142,329 $ 743,3
Slide 18: Adjusted EPS Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, 2021 2020 2021 2020 GAAP: Earnings per diluted share $ 1.52 $ 0.84 $ 4.45 $ 2.40 Adjusted for: Income tax expense attributable to Knight-Sw
Slide 19: Segment and Adjusted Operating Ratio – Truckload
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, Truckload Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,107,868 $ 1,011,719 $ 4,098,005 $ 3,786,030 Tot
Slide 20: Segment and Adjusted Operating Ratio – Logistics
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, Logistics Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 305,041 $ 127,521 $ 817,003 $ 375,841 Total opera
Slide 21: Segment and Adjusted Operating Ratio – LTL
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) LTL Segment 2 Quarter-to-Date December 31, 2021 Year-to-Date December 31, 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 204,402 $ 396,308 Total operating expenses (190,702) (365,139)
Slide 22: Segment and Adjusted Operating Ratio – Intermodal
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter-to-Date December 31, Year-to-Date December 31, Intermodal Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 123,622 $ 115,052 $ 458,867 $ 391,462 Total oper
Slide 23: Return on Net Tangible Assets
Non-GAAP Reconciliation Return on Net Tangible Assets 1 (Unaudited) December 31, 2021 2020 (Dollars in thousands) Total Assets $ 10,655,500 $ 8,468,002 Adjusted for: Intangible assets, net and goodwill (5,346,184) (4,312,209) Tangible Assets $ 5,309,316 $ 4,155,793 Total Liabilities $ 4,112,050 $ 2,
Slide 24: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow 1 (Unaudited) Year-to-Date December 31, 2021 GAAP: Cash flows from operations $ 1,190,153 Adjusted for: Proceeds from sale of property and equipment, including assets held for sale 252,080 Purchases of property and equipment (534,096) Non-GAAP: Free cash flow $
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