Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q2 2024 Earnings Presentation
22 slides from Knight-swift Transportation's earnings presentation, Jul 24, 2024
Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings
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: Q2 2024 Comparative Results
Q2 2024 Comparative Results Navigating trough, preparing to maximize returns when cycle inflects Total Revenue Revenue xFSC Operating Income Adj. Operating Inc. 1 Adjusted EPS results include a $0.06 per 18.9% 18.1% (32.5%) (22.8%) share charge for the settlement of a TL 1,847 115 1,642 auto liabili
Slide 4: Q2 2024 Segment Overview
Q2 2024 Segment Overview TL experienced seasonal build in demand, LTL continues network expansion Revenue Adjusted Op Adjusted Q2 2024 Revenue Diversification xFSC2 Income1 OR1 ~16,400 irregular route and Truckload $1,102.8M $31.2M 97.2% ~6,500 dedicated tractors LTL 16% Less-than- 133 Service Cente
Slide 5: Operating Performance - Truckload
Operating Performance - Truckload Revenue per tractor increases year over year as utilization improves Truckload Financial Metrics Q2 2024 Q2 2023 Change • 97.2% Adjusted Operating Ratio1 in Q2 2024 compared to (Dollars in millions) 91.8% the previous year Revenue xFSC $1,102.8 $829.4 33.0 % • Claim
Slide 6: Operating Performance - Less-Than-Truckload
Operating Performance - Less-Than-Truckload LTL market continues to be healthy as we execute network expansion LTL Financial Metrics Q2 2024 Q2 2023 Change • 85.9% Adjusted Operating Ratio1 in Q2 2024 (Dollars in millions) ◦ 13.4% year-over-year increase in LTL Revenue xFSC per Revenue xFSC $263.1 $
Slide 7: Operating Performance - Logistics
Operating Performance - Logistics Disciplined pricing and sequentially stable volumes help improve profitability in 2Q Logistics Financial Metrics Q2 2024 Q2 2023 Change • 95.5% Adjusted Operating Ratio1 during the quarter, 160 bps (Dollars in millions) improvement from prior quarter Revenue ex inte
Slide 8: Operating Performance - Intermodal
Operating Performance - Intermodal 460 bps improvement in Intermodal Operating Ratio as we push path toward profitability Intermodal Financial Metrics Q2 2024 Q2 2023 Change • 101.8% operating ratio during Q2 2024 compared with (Dollars in millions) 106.4% the prior year Revenue ex intersegment $97.
Slide 9: Operating Performance - All Other Segments
Operating Performance - All Other Segments All other segments profitable after 3rd party insurance exit in 1Q All Other Financial Metrics Q2 2024 Q2 2023 Change • Revenue decline largely as a result of winding down our (Dollars in millions) third-party insurance program at the end of Q1 2024 Revenue
Slide 10: EPS Guidance
EPS Guidance Expect Adjusted EPS to be in the range of $0.31 - $0.35 in Q3 and $0.32 - $0.36 in Q4 Guidance Assumptions • Revenue up slightly sequentially into Q3 and again into Q4; Adjusted OR steadily improving into the low to mid-90's in Q3 and Q4 Truckload • Tractor count down modestly sequentia
Slide 11: Appendix
Appendix A KNIGHT-SWIFT
Slide 12: Non-GAAP Reconciliation: Adjusted Operating Income and Ratio
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 1,846,654 $ 1,552,979 $ 3,669,121 $ 3,189,911 Total operating expenses (1,783,194)
Slide 13: Non-GAAP Reconciliation: Adjusted Operating Income and 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 14: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, 2024 2023 2024 2023 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 20,300 $ 63,326 $ 17,665 $ 167,610
Slide 15: Non-GAAP Reconciliation: Adjusted EPS
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, 2024 2023 2024 2023 GAAP: Earnings per diluted share $ 0.13 $ 0.39 $ 0.11 $ 1.04 Adjusted for: Income tax expense attributable to Knight-Swift 0.07 0
Slide 16: Non-GAAP Reconciliation: Truckload Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, 2 Truckload Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 1,264,237 $ 953,659 $ 2,527,252 $ 1,965,904 Total operati
Slide 17: Non-GAAP Reconciliation: LTL Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, LTL Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 306,478 $ 267,105 $ 588,600 $ 522,409 Total operating expenses (2
Slide 18: Non-GAAP Reconciliation: Logistics Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, Logistics Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 131,700 $ 119,943 $ 258,429 $ 258,226 Total operating expen
Slide 19: Non-GAAP Reconciliation: Intermodal Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended June 30, Year-to-Date June 30, Intermodal Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 97,528 $ 104,327 $ 185,513 $ 214,899 Total operating expen
Slide 20: Earnings Power Through The Cycles: Truckload
Earnings Power Through The Cycles as Communicated Q1 2024 We expect to deliver industry-leading truckload margins regardless of cycle Uniquely positioned to meaningfully improve Typical Cycles Current Cycle margins and cash flow when the market inflects Mid twenties margin during peak 1. Distinctive
Slide 21: Earnings Power Through The Cycles: LTL and Logistics
Earnings Power Through The Cycles as Communicated Q1 2024 Growing a nationwide LTL network and improving less asset-intensive businesses Less-Than-Truckload - Growing business while expanding margins • Significant truckload free cash flow funds organic and inorganic LTL investments as we build a nat
Slide 22: Capital Deployment as Communicated Q1 2024
Capital Deployment as Communicated Q1 2024 Strong free cash flow, prudent capital structure, and disciplined capital allocation drive long-term value for all stakeholders Prudent capital structure • Target optimal leverage position of 1.00 to 1.25 turns of EBITDA • Strong balance sheet provides flex
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