Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Swift Transportation — Baird's 2014 Industrial Conference
22 slides from Knight-swift Transportation's conference presentation, Nov 11, 2014
Slide 1: November 2014
Click to edit Master title style November 2014
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 $4.1 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: The Swift History
ClickHistory The to editofMaster Swift title style The Evolutionary The Growth Period The Transformation The Results Period Period 1991-2006 Period 2012-2017 1966-1990 2007-2011 (and beyond) • Founded • Privatization - Debt • Profitable Revenue • 1990 IPO • Flatbed • Recession Growth • 20%+ Revenue
Slide 5: Total Revenue and 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 6: Extensive Transportation Service Offerings
Click to edit Extensive Master title style Transportation Service Offerings • 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 Transpor
Slide 7: 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 2013 Revenue, net of fuel surcharge: $3.3 Billion Opportunity to grow while reducing cyclicality by expanding Swift Confidential and Proprietary consumer products, food and bev
Slide 8: Large, Diverse, Blue-Chip Customer Base
Click to Large, edit Master Diverse, title style 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 8
Slide 9: Click to edit Master title style
Click to edit Master title style 9
Slide 10: Our Purpose
Click to edit Master title style Our Purpose SM Driving value through Best in Class transportation solutions Swift Confidential and Proprietary 10
Slide 11: Swift's Long-Term Financial Goals
Click toLong-Term Swift’s edit Master title style Financial Goals* Increase our RONA by 1% annual CAGR for each of the next 5 years Targeting EPS Growth Reduce our leverage of 20% for 2012 and ratio to roughly 1.5X 15% CAGR from by 2017 2013-2017 Creating Shareholder Value *Goals shared in our May 2
Slide 12: Initiatives to Drive Value
Click to edit Initiatives toMaster title style Drive Value Delivering a better life by creating value through revenue growth, cost control, process improvement and utilization 12
Slide 13: Swift's Integrated Flywheel
Click toIntegrated Swift’s edit MasterFlywheel title style Delivering a better life by creating value through revenue growth, cost control, process improvement and utilization 13
Slide 14: Financial Summary
Click to edit Master title style FINANCIAL SUMMARY Swift Confidential and Proprietary 14
Slide 15: YTD September 2014 Consolidated Results
Click to edit Master title style YTD September 2014 Consolidated Results Total Revenue Revenue xFSR Adjusted Operating Ratio Adjusted EPS Achieving revenue growth, but margins have been challenged due to Q1 weather, driver market, Central systems integration, Rail service issues and Dedicated startu
Slide 16: YTD September 2014 Truckload Segment Metrics
Click to edit Master title style YTD September 2014 Truckload Segment Metrics Revenue xFSR Adjusted Operating Ratio Weekly Revenue xFSR per Tractor Deadhead % TL Revenue flat; but OR improvements driven by customer rate increases, productivity improvements, fuel efficiency, and gains on sale; partia
Slide 17: YTD September 2014 Dedicated Segment Metrics
Click to edit Master title style YTD September 2014 Dedicated Segment Metrics Revenue xFSR Adjusted Operating Ratio Weekly Revenue xFSR per Tractor Truck Count Significant growth also creating start-up costs and inefficiencies; OR expected to improve going forward
Slide 18: YTD September 2014 Intermodal Segment Metrics
Click to edit Master title style YTD September 2014 Intermodal Segment Metrics Revenue xFSR Adjusted Operating Ratio Average Container Count Load Counts COFC growth of 12.4% YTD offset by TOFC reductions; Weather and rail service issues impacting OR; Mix and productivity should lead to improved YOY
Slide 19: YTD September 2014 Central Segment Metrics
Click to edit Master title style YTD September 2014 Central Segment Metrics Revenue xFSR Adjusted Operating Ratio Deadhead % Weekly Revenue xFSR per Tractor 1st Half hindered by weather, system integration issues, driver turnover; 2nd Half structural alignment and pay package changes expected to dri
Slide 20: Debt Profile 2013-2014
Click Debt to edit Master Profile title style 2013-2014 $000's Projected Pro forma 12/31/2013 9/30/2014 12/31/2014 Face Value Maturity Rate Debt Profile Face Value Maturity Rate Face Value 264,000 Jul-16 CP/L+95 A/R Securitization 315,000 Jul-16 CP/L+95 365,000 17,000 Sep-16 L+325 Revolver 82,000 Ju
Slide 21: Net Debt and Leverage Ratio
ClickDebt Net to edit andMaster title Leverage style Ratio CRS Acquisition *2008 – 2012 data does not include Central Refrigerated Continuing to make progress on our goal to Swift Confidential and Proprietary reduce leverage to target range of 1x-2x 21
Slide 22: Questions
Click to edit Master title style QUESTIONS Swift Confidential and Proprietary 22
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