Werner Enterprises, Inc. · NASDAQ:WERN

Werner Enterprises — Morgan Stanley 7th Annual Laguna Conference (September 2019)

18 slides from Werner Enterprises's conference presentation, Sep 12, 2019

  1. Slide 1: Morgan Stanley 7th Annual Laguna Conference

    Morgan Stanley 7th Annual Laguna Conference September 12, 2019

  2. Slide 2: Disclosure Statement

    DISCLOSURE STATEMENT This presentation may 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, and made pursuant to the safe harbor provisions of the Private Securities Lit

  3. Slide 3: Werner Overview

    WERNER OVERVIEW Premium Truckload Transportation & Logistics Services Provider 2018 Revenues by Segment Headquarters Omaha, NE 2% Truckload Transportation Services (TTS) 21% Market Cap1 $2.3B Werner Logistics Schools/Other 77% Dedicated 4,580 Fleet Size1 One-Way 2018 Revenues by Vertical 2018 Revenu

  4. Slide 4: Comprehensive, Customer Focused Solutions

    COMPREHENSIVE, CUSTOMER FOCUSED SOLUTIONS 3,355 Trucks (42%) 4,580 Trucks (58%)  Dry Van  DC to store  Brokerage  Expedited replenishment  Freight Management  Cross Border  Engineered fleets  Intermodal  Temp Control  Private fleet conversion  Global  Specialty equipment  Final Mile 4

  5. Slide 5: Five T's Strategy Execution

    FIVE T’S STRATEGY EXECUTION 01 Trucks  Reduced truck age to 1.8 years; maintain at or near this level going forward 02 Trailers  Reduced trailer age to 4.1 years, lowest level since 2000 03 Talent  Utilizing performance pay and metrics to drive performance and attract high performing talent 04 Te

  6. Slide 6: Modern, Driver-Preferred Fleet

    FIVE T’S EXECUTION STRATEGY MODERN, DRIVER-PREFERRED FLEET 01 Trucks 02 Trailers 03 Talent 04 Terminals 05 Technology TRUCKS TRAILERS  New, modern, well-equipped, aerodynamic, driver-preferred  Newer, modern trailers; average age of 4.1 years fleet from top-quality OEMs  93% dry van, 6% temp cont

  7. Slide 7: Our Driver Strategy Is Working in a Very Competitive Labor Market

    FIVE T’S EXECUTION STRATEGY 01 Trucks OUR DRIVER STRATEGY IS WORKING 02 03 Trailers Talent IN A VERY COMPETITIVE LABOR MARKET 04 Terminals 05 Technology Werner Programs are Attracting and Retaining Talent Photo Caption: CEO Derek Leathers meets with drivers at April 2019 Driver Appreciation Event Ad

  8. Slide 8: Thoughtful Investment in Technology & Innovation

    FIVE T’S EXECUTION STRATEGY THOUGHTFUL INVESTMENT IN TECHNOLOGY & INNOVATION 01 Trucks 02 Trailers 03 Talent 04 Terminals 05 Technology 8

  9. Slide 9: 2Q 2019 and YTD 2019 Highlights

    2Q 2019 AND YTD 2019 HIGHLIGHTS  Revenues increased 1% to $628M 2Q19  GAAP EPS increased 17% to $0.62 Financial  Adj. EPS increased 3% to $0.63 Highlights  Adj. operating income increased 1% to $59.2M  Adj. operating margin decreased ~10 bps to 9.4%  Revenues increased 4% to $1,224M  GAAP EPS

  10. Slide 10: Truckload Transportation Services (TTS) Results

    TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 2Q18 2Q19 Change YoY  TTS RPTPW1 (1.0%) Revenues ($M) $470.3 $480.0 2%  One-Way TL RPTPW1 (6.0%), including (2.7%) lower Adj. Op. Income ($M) $54.7 $52.4 (4%) One-Way TL RPTM1. Below average freight market 2Q19 vs unusually strong freight market 2Q18

  11. Slide 11: TTS 2Q Fleet Metrics

    TTS 2 2Q FLEET METRICS Dedicated Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $250 $227 4,558 $202 4,219 $3,833 $3,683 $200 $150 $100 $50 $‐ 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 One-Way Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $250 $4,461 $193 $

  12. Slide 12: Werner Logistics Results

    WERNER LOGISTICS RESULTS 2Q18 2Q19 Change YoY Revenues ($M) $134.0 $130.9 (2%)  A less robust freight market led to fewer project freight opportunities, significantly lower spot rates and lower volumes, which reduced revenues slightly by 2% YOY Gross Margin 15.7% 16.1% 40 bps  Continued investment

  13. Slide 13: Capex Moderating in 2019; Strong FCF Generation Forthcoming

    CAPEX MODERATING IN 2019; STRONG FCF GENERATION FORTHCOMING Net CapEx and Cash Commentary  2019 Net CapEx normalizes in the ($M) range of $275M to $300M; over the $430 long term, targeting Net CapEx of $418 11-13% of gross revenues $370 2019 $351 $349  Net CapEx expected to be at the Net CapEx: $3

  14. Slide 14: Capital Allocation Strategy

    CAPITAL ALLOCATION STRATEGY  First priority remains continued investment in the business across cycles; operational Continue to and commercial excellence initiatives in place Invest in Growth  Fleet and terminal network improved; continuing upgrades to IT infrastructure, truck and Productivity tec

  15. Slide 15: Summary – Invest With Us

    SUMMARY – INVEST WITH US Focused effort Heavy capex Our new, Long-term We are a over the past period to technologically- margin and stronger, better several years to transform our advanced fleet, return positioned balance the company is updated terminal expectations company than we portfolio toward

  16. Slide 16: Appendix

    WERNER WE KEEP AMERICA MOVING» APPENDIX

  17. Slide 17: GAAP to Non-GAAP Reconciliation

    GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating revenues $ 627,533 $ 619,130 $ 1,223,650 $ 1,181,814 Operating expenses 569,091 568,347 1,117,189 1,095,916 Adjusted for: Insurance

  18. Slide 18: For more information visit Werner.com

    ERNER a P AMERICA MOVINGs For more information visit Werner.com

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