Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q1 2023 Earnings Presentation
21 slides from Knight-swift Transportation's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023 Earnings
KNIGHT 7) SWIFT; \. TRANSPORTATION _ TRANSPORTATION First Quarter 2023 Earnings (s)
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 Q1 2023 Comparative Results
KNX Q1 2023 Comparative Results Strong margins as we navigate challenging freight environment Total Revenue Revenue xFSC Operating Income Adj. Operating Inc. 1 (10.4%) (12.0%) (51.4%) (48.9%) 1,827 1,637 1,648 320 1,450 298 In millions In millions 145 164 Creating Value To Drive Growth 1Q22 1Q23 1Q2
Slide 4: Segment Overview
Segment Overview Solid OR performance in a challenging environment Truckload Less-than-Truckload Q1 2023 Revenue Diversification Q1 2023 Q1 2023 Revenue xFSC 2 $ 866.0M Revenue xFSC $ 213.9M Adjusted Op Income 1 $ 116.2M Adjusted Op Income 1 $ 30.5M Truckload 981.5 57.3 % Adjusted OR 1 86.6 % Adjust
Slide 5: Operating Performance - Truckload
Operating Performance - Truckload Controlling cost in difficult environment, positioning for recovery Truckload Financial Metrics • 86.6% Adjusted Operating Ratio1 in Q1 2023 compared to 78.2% the previous year Q1 2023 Q1 2022 Change • 43.4% year-over-year decrease in Adjusted Operating (Dollars in
Slide 6: Operating Performance - LTL
Operating Performance - LTL Strong performance as we continue to expand our network to drive growth • 85.7% Adjusted Operating Ratio1 in Q1 2023 LTL Financial Metrics • $30.5M of Adjusted Operating Income1 Q1 2023 Q1 2022 Change (Dollars in thousands) • 5.1% increase in LTL Revenue xFSC per shipment
Slide 7: Operating Performance - Logistics
Operating Performance - Logistics Solid margins in a challenging freight environment Logistics Financial Metrics • 90.4% Adjusted Operating Ratio1 during the quarter, a 470 basis point deterioration from the prior year; 400 basis point Q1 2023 Q1 2022 Change deterioration sequentially (Dollars in th
Slide 8: Operating Performance - Intermodal
Operating Performance - Intermodal Encouraged for near-term opportunities for volume improvement Intermodal Financial Metrics • 1.3% decrease in Revenue excluding intersegment transactions Q1 2023 Q1 2022 Change (Dollars in thousands) • 95.4% operating ratio during Q1 2023 compared with 86.1% the pr
Slide 9: Operating Performance - Non-Reportable
Operating Performance - Non-Reportable Growth trajectory expected to temporarily slow Q1 Non-Reportable Performance: Non-Reportable Financial Metrics • 20.7% increase in revenue to $142.0M Q1 2023 Q1 2022 Change (Dollars in thousands) • ($15.6M) in operating loss Revenue $141,986 $117,639 20.7 % ◦ T
Slide 10: U.S. Xpress - Go Forward Plan / Business Evolution
U.S. Xpress - Go Forward Plan / Business Evolution Acquisition announced March 22nd, anticipated to close early Q3 Adjusted Operating Ratio in the high 80's will result in a mid-teens return on invested capital (1) Total Transportation of Mississippi LLC 10
Slide 11: Market Outlook
Market Outlook • Continued softness in freight demand with non-contract rates trending below contract rates through the first half of 2023 as shippers work through higher inventory levels • Capacity continues to exit at an accelerating rate • Freight volumes begin to improve during 2nd half of the y
Slide 12: 2023 Guidance Update
1 2023 Guidance Update Updated expected Adjusted EPS for 2023 from $4.05 - $4.25 to new range of $3.35 - $3.55 Key Changes Prior Guidance Updated Guidance Commentary • Contract rates continue under pressure, TL - Revenue • Overall revenue per mile decreases mid- single • Overall revenue per mile dec
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,636,932 $ 1,826,989 Total operating expenses (1,492,145) (1,528,903) Operating income $ 144,787 $ 298,086 Operatin
Slide 15: Non-GAAP Reconciliation
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 "Amortization of intangibles" reflects the non-cash
Slide 16: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 (Unaudited) Quarter Ended March 31, 2023 2022 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 104,284 $ 208,337 Adjusted for: Income tax expense attributable to K
Slide 17: Non-GAAP Reconciliation: Adjusted EPS
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 (Unaudited) Quarter Ended March 31, 2023 2022 GAAP: Earnings per diluted share $ 0.64 $ 1.25 Adjusted for: Income tax expense attributable to Knight-Swift 0.20 0.42 Income before income taxes attributable to
Slide 18: Non-GAAP Reconciliation: Truckload Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Truckload Segment 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,012,245 $ 1,080,531 Total operating expenses (896,346) (875,414) Operating income $ 115,
Slide 19: Non-GAAP Reconciliation: LTL Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, LTL Segment 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 255,304 $ 255,125 Total operating expenses (228,722) (228,748) Operating income $ 26,582 $ 26,37
Slide 20: Non-GAAP Reconciliation: Logistics Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Logistics Segment 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 138,283 $ 282,039 Total operating expenses (125,463) (242,438) Operating income $ 12,820 $
Slide 21: Non-GAAP Reconciliation: Intermodal Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Intermodal Segment 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 110,572 $ 109,222 Total operating expenses (105,470) (94,052) Operating income $ 5,102 $
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