Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q1 2022 Earnings Presentation
31 slides from Knight-swift Transportation's earnings presentation, Apr 20, 2022
Slide 1: Knight-Swift Transportation
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 Q1 2022 Comparative Results
KNX Q1 2022 Comparative Results Knight-Swift Consolidated Q1 2022 Q1 2021 Change (Dollars in thousands, except per share data) Total revenue $ 1,826,989 $ 1,223,014 49.4 % Revenue xFSC $ 1,647,878 $ 1,133,105 45.4 % Operating income $ 298,086 $ 162,259 83.7 % Adj. Operating Income 1 $ 320,117 $ 175,
Slide 4: Segment Overview
Segment Overview Truckload Less-than-Truckload Q1 2022 Revenue Diversification Q1 2022 TTM Q1 '22 1 Q1 2022 Revenue xFSR 2 $ 941.5M $ 3,750.0M Revenue xFSR $ 214.7M Adjusted Op Income $ 205.4M $ 832.4M Adjusted Op Income $ 30.3M LTL Adjusted OR 78.2 % 77.8 % Adjusted OR 85.9 % 13% ~ 13,250 irregular
Slide 5: Operating Performance – Truckload
Operating Performance – Truckload Truckload Financial Metrics • 29.4% year-over-year improvement in Adjusted Q1 2022 Q1 2021 Change Operating Income (Dollars in thousands) Revenue xFSC $941,534 $872,814 7.9 % • 78.2% Adjusted Operating Ratio in Q1 2022 compared to 81.8% the previous year Operating i
Slide 6: Operating Performance – LTL
Operating Performance – LTL LTL Financial Metrics • $30.3M of Adjusted Operating Income Q1 2022 • 85.9% Adjusted Operating Ratio in Q1 2022 a (Dollars in thousands) sequential improvement of 410 bps from Q4 2021 Revenue xFSC $214,675 • 12.0% increase in LTL Revenue xFSC per shipment Operating income
Slide 7: Operating Performance – Logistics
Operating Performance – Logistics Logistics Financial Metrics • 427.1% increase in Adjusted Operating income to $39.9M Q1 2022 Q1 2021 Change (Dollars in thousands) with minimal capital investment Revenue ex intersegment $280,171 $115,722 142.1 % • 76.9% increase in load count Operating income $39,6
Slide 8: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics • $11.7M year-over-year improvement in Operating Income Q1 2022 Q1 2021 Change (Dollars in thousands) • 86.1% Operating Ratio during Q1 2022 compared with 96.8% the prior year Revenue ex intersegment $109,192 $106,971 2.1 % Operating in
Slide 9: Operating Performance – Non-Reportable
Operating Performance – Non-Reportable • $67.0M increase in Revenue driven by expanded insurance and maintenance Non-Reportable Financial Metrics services provided to 3rd party carriers, and additional equipment leasing and warehousing Q1 2022 Q1 2021 Change activities (Dollars in thousands) Revenue
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value TTM Free Cash Flow 1 • Free Cash Flow1 of $352.4M in Q1 and 2018 - Q1 2022 $998.3M TTM $1,250M • Generated a Return on Net Tangible $1,000M Assets1 of 23.8% TTM $750M • Increased dividend $0.02 or 20% during the quarter $500M • Repurchased $150M of shares in Q1 $250M • D
Slide 11: KNX - An Industrial Growth Company
KNX - An Industrial Growth Company GROWTH DIVERSIFICATION RESILIENCE • LTL strength with organic • 13% of revenue is LTL • 71k+ Trailers expansion and M&A • Over 90% of dry van truckload opportunities • 30% of revenue is asset light moves involve a trailer pool • Logistics & Power Only (Logistics, I
Slide 12: Diversification leading to consistent performance
Diversification leading to consistent performance 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 Percent of Adjusted Operating Income 1 Rolling 4 Quarter Ad
Slide 13: 200+ Locations Not Easily Replicated
200+ Locations Not Easily Replicated Full Truckload • 18,000 Tractors • 71,000 Trailers • Cross-Border & Mexico Less-Than-Truckload • 3,100 Tractors • 8,300 Trailers • 4,300+ Doors 13
Slide 14: Environmental, Social & Corporate Governance ("ESG")
Environmental, Social & Corporate Governance ("ESG") 14
Slide 15: Market Outlook FY 2022
Market Outlook FY 2022 • Strong contract rates lead to an increase in commitments with less spot exposure • Trailer pool capacity remains at a premium • Declining spot rates, historically high used equipment market, limited availability to new equipment and high fuel costs increase barriers to entry
Slide 16: 2022 Guidance
2022 Guidance Expected Adjusted EPS for the full year 2022 of $5.20 - $5.40, an increase from previous quarter's full year guidance of $5.10 - $5.30 Full Year Guidance Assumptions • Double digit truckload contract rate increases while spot rates moderate year-over-year • Stable truck count with a mo
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter Ended March 31, 2022 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 1,826,989 $ 1,223,014 Total operating expenses (1,528,903) (1,060,755) Operating income $ 298,086 $ 162,259 Operat
Slide 19: 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 The reported results do not include the results of o
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended March 31, 2022 2021 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 208,337 $ 129,790 Adjusted for: Income tax expense attributable to
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended March 31, 2022 2021 GAAP: Earnings per diluted share $ 1.25 $ 0.77 Adjusted for: Income tax expense attributable to Knight-Swift 0.42 0.27 Income before income taxes attributable t
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Truckload Segment 2022 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 1,080,531 $ 962,947 Total operating expenses (875,414) (804,464) Operating income $ 205,11
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Logistics Segment 2022 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 282,039 $ 118,887 Total operating expenses (242,438) (111,310) Operating income $ 39,601 $
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) LTL Segment 2 Quarter Ended March 31, 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 255,125 Total operating expenses (228,748) Operating income $ 26,377 Operating ratio 89.7 % Non-GAA
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended March 31, Intermodal Segment 2022 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 109,222 $ 107,066 Total operating expenses (94,052) (103,609) Operating income $ 15,170 $
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Three Months Three Months Truckload Segment Ended Year Ended Ended TTM March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,080,53
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Three Months Three Months Logistics Segment Ended Year Ended Ended TTM March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 282,039
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Three Months Three Months Intermodal Segment Ended Year Ended Ended TTM March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 109,222
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Net Tangible Assets 1 (Unaudited) March 31, 2022 2021 (Dollars in thousands) Total Assets $ 10,695,806 $ 8,519,475 Adjusted for: Intangible assets, net (1,814,883) (1,393,346) Goodwill (3,518,589) (2,958,709) Tangible Assets $ 5,362,334 $ 4,167,420 Total Liabilities
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Income Before Income Taxes and Adjusted Net Income 1 2 (Unaudited) Three Months Three Months Year Ended TTM Ended Ended December 31, 2021 March 31, 2022 March 31, 2022 March 31, 2021 (Dollars in thousands) GAAP: Net income attributable to Knight-Swift $ 208,337 743,3
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Free Cash Flow 1 (Unaudited) Three Months Three Months Ended Year Ended Ended TTM March 31, 2022 December 31, 2021 March 31, 2021 March 31, 2022 GAAP: Cash flows from operations $ 456,860 $ 1,190,153 $ 306,113 $ 1,340,900 Adjusted for: Proceeds from sale of property and equip
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