US Xpress Enterprises — Investor Presentation (February 2004)
25 slides from US Xpress Enterprises's investor presentation, Feb 12, 2004
Slide 1: Transportation Excellence
Transportation Excellence
Slide 2: Who We Are Today: U.S. Xpress - Truckload
Who We Are Today U.S. Xpress - Truckload • Leading national truckload transportation provider • Over-the-Road, team expedited, regional and dedicated contract • Fifth largest public truckload carrier – 5,400 trucks – 14,024 trailers – 7,000 employees • 2002 Revenue – $778 million • 2003 Revenue – $8
Slide 3: Who We Are Today: Xpress Global Systems
Who We Are Today Xpress Global Systems • The Leading provider of transportation and distribution services to floorcovering industries • A Leading provider of airport-to- airport transportation services to the airfreight forwarding industry • Pool distribution • 112 company & agent facilities • 2002
Slide 4: Truckload Service Offering
Truckload Service Offering 2003 2002 Over-The- Over-The- Road Road 59% Regional 62% Regional 11% 8% Team Dedicated Dedicated Team Expedited Contract Contract Expedited 20% 10% 7% 23% Amounts in millions.
Slide 5: Truckload Markets
Truckload Markets Regional Service Centers Major Truckload Service Centers
Slide 6: Top 20 Customers
Diversified Customer Base Top 20 Truckload Customers Account for 39 Percent Of 2003 Revenue 1 3.36% 2 2.80% 3 2.58% 4 2.54% Top 20 Customers 5 2.50% 6 2.35% 7 2.23% 8 2.22% 9 2.13% 10 2.12% 11 1.97% 12 1.94% 13 1.76% 14 1.51% 15 1.36% 16 1.31% 17 1.29% 18 1.24% 19 1.12% 20 1.11%
Slide 7: Blue Chip Customer Base
Blue Chip Customer Base • American Suzuki • Home Depot • Anheuser Busch • Kellogg's • BAX Global Log. • Kimberly Clark • Best Buy • Marmaxx Group • Carrier Corp. • Meijer • Clorox • Mohawk Ind. • Coca-Cola Ent. • Owens Corning • Con-Way • Procter & Gamble • Dollar General • Reckitt Benckiser • FedEx
Slide 8: 2003 Truckload Freight Mix
2003 Truckload Freight Mix 1% 1% 5% 17% Consumer Products 19% Retail Contract Linehaul Logistics Manufacturing 25% Food Products 13% Chemical Automotive 19%
Slide 9: Xpress Global Network
Xpress Global Network Terminal Facilities & Agents
Slide 10: Service Offering
Service Offering Xpress Global Floor covering 64% ($88) Airport-To- Airport Amounts in millions. 36% ($50)
Slide 11: Truckload Industry - Looking Forward
Truckload Industry- Looking Forward Challenges • Hours of Service • Higher Revenue Equipment Cost • Supply of Drivers • Pressure on Driver Wages Positives • Improving freight demand • Capacity has declined • Low cost of capital • Improving used truck market • Pricing power
Slide 12: HOS - U.S. Xpress Response
HOS - U.S. Xpress Response • Intensive Training of Driver and Operational Personnel • Proactive Analysis of Freight • Customer Meetings • Technology Improvements – Trailer Tracking – Detention • Moderate Increase in Trailer Assets • Assessorial Rate Increases – Equipment Detention – Multi Stop Charg
Slide 13: Truckload Operating Strategy
Truckload Operating Strategy Expand in Profitable Markets – Regional Services • increasing at over 20% rate – Dedicated Services • increasing at over 20% rate – Team Services Focus on Profitability – Improve Asset Utilization – Price Increases – Reduce Cost Structure
Slide 14: Xpress Global Operating Strategy
Xpress Global Operating Strategy Expand Target Markets – Continued penetration in floorcovering industry – Add Freight Density in Airport Services – Expand Pool Distribution Opportunities Focus on Profitability – Maximize Efficiency of Linehaul Network in Airport Services – Increase use of owner ope
Slide 15: Financial Review
Financial Review
Slide 16: History of Continuous Growth
History Of Continuous Growth 16 % Compounded Annual Revenue Growth Rate 1000 $930.5 $862.3 900 $787.1 $798.0 Acquisitions of 800 Victory & PST $708.2 700 $581.4 600 ($ In Millions) $433.8 500 Development of: $351.1 • Regional Truckload 400 $282.5 • Dedicated TL 300 Services • Airport to Airport 200
Slide 17: Historical Results
Historical Results Operating Income Net Income 30 10 $24.4 25 8 $7.6 $19.9 20 $18.9 6 15 $13.5 4 $2.1 $2.2 10 2 5 0 0 ($1.1) -2 2000 2001 2002 2003 2000 2001 2002 2003 *before extraordinary item. *
Slide 18: Revenue Per Mile Growth
Revenue Per Mile Growth 700,000 $1.32 601,357 606,129 533,628 573,271 578,186 $1.30 $1.30 $1.28 525,000 418,665 $1.26 $1.26 $1.22 $1.24 350,000 $1.22 $1.22 $1.20 $1.19 $1.18 175,000 $1.18 $1.16 $1.14 - $1.12 1998 1999 2000 2001 2002 2003 Total revenue miles (in thousands) Average revenue per mile
Slide 19: Fourth Quarter Review
Fourth Quarter Review Three months ended Dec. 31 2003 2002 % Change Operating Revenue: US Xpress, net of fuel $204,576 $200,618 2.0 Fuel Surcharge 7,814 6,636 17.8 Xpress Global Systems 36,142 31,762 13.8 Inter-company (8,946) (9,589) -6.7 Total Operating Revenue $239,586 $229,427 4.4 Operating Inco
Slide 20: Full Year Review
Full Year Review Twelve months ended Dec. 31 2003 2002 % Change Operating Revenue: US Xpress, net of fuel $793,884 $762,322 4.1 Fuel Surcharge 33,976 15,565 n/a Xpress Global Systems 137,842 114,806 20.1 Inter-company (35,193) (30,345) 16.0 Total Operating Revenue $930,509 $862,348 7.9 Operating Inc
Slide 21: Capitalization & Liquidity
Capitalization & Liquidity Twelve months ended Dec 31 2003 2002 Current Maturities of Long-Term Debt $24,982 $38,956 Long-Term Debt – $100 Million Revolver 0 22,419 Equipment & Real Estate Term Loans 121,597 106,488 Total Long-Term Debt 121,597 128,907 Stockholders’ Equity $167,239 $158,432 Debt to
Slide 22: 2004 Minimum Goals
2004 Minimum Goals • Exceed $1 Billion in Revenue – Truckload, excl. fuel, up 8% to 10% – Xpress Global up 10% to 12% – Tractor fleet growth of 3% to 4% – Truckload avg. rate/mile up 4.5% to 5% • Consolidated Operating Margin Improvement of Approx. 120 bps • Earnings per Share of $.90 to $1.00
Slide 23: Significant Operating Leverage
Significant Operating Leverage Approximate Incremental Impact on Annual Earnings Per Share • Return to historical consolidated operating ratio levels – 95% operating ratio $1.00/share – 93% operating ratio $1.80/share * Excludes effect on interest expense of increased cash flow.
Slide 24: Committed to Long Term Shareholder Growth
Committed to Long Term Shareholder Growth • Broad Service Offering Provides Platform for Growth • Significant Earnings Leverage • Earnings Improvement and Momentum • Compelling Valuation
Slide 25: Thank You
i APRESS ENTERPRISES, INC. Thank You
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