Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Swift Transportation — Citi Global Industrials Conference 2013
26 slides from Knight-swift Transportation's conference presentation, Sep 17, 2013
Slide 1: Swift Transportation Fall 2013
Swift Transportation Fall 2013 Swift Confidential & Proprietary
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer This presentation, including documents which are incorporated by reference and accompanying comments, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but
Slide 3: Transportation Industry & Swift
Transportation Industry & Swift Swift Confidential & Proprietary 3
Slide 4: Swift Transportation at a glance
Swift Transportation at a glance Multi faceted $4 billion transportation solution provider Focused on profitable revenue growth, asset utilization, and continuous improvement Largest fleet of truckload equipment in America Largest North American terminal network Diverse suite of equipment and servic
Slide 5: Swift Transportation at a glance
Swift Transportation at a glance 8,700+ 17,000+ 59,000+ 40 Major Intermodal Tractors Trailers Terminals containers Leading Market Position Swift has the largest fleet of truckload equipment Swift Confidential & Proprietary 5
Slide 6: U.S. Freight Transportation Market
U.S. Freight Transportation Market 1 2010 - $694B 2022 - $1,152B Rail Pipeline Rail Pipeline Air Private Water Air Water Intermodal 5.7% Intermodal 4.7% 4.0% Truckload 1.6% 1.6% 3.4% 1.4% 2.7% 36.2% Rail Private Carload Rail Truckload 6.5% 38.6% Carload 5.8% LTL 5.8% 4.3% CAGR LTL 7.0% For-Hire Truc
Slide 7: Nationwide Terminal Network
Nationwide Terminal Network (3) (2) Nationwide terminal network allows us to be close to our customers on a regional basis and our driver’s homes 7
Slide 8: Extensive Transportation Service Offerings
Extensive Transportation Service Offerings Demonstrated ability to provide total transportation solutions with a comprehensive suite of services and equipment offerings 100% of Swift’s Top 20 customers utilize multiple service offerings Transportation Solutions Equipment Selection Dry Van Temp. Flat
Slide 9: 2013 and Beyond- The Vision
2013 and Beyond- The Vision The Evolutionary The Growth Period The Transformation The Results Period Period 1991-2006 Period 2012-2017 1966-1990 2007-2011 (and beyond) • Founded • Privatization - Debt • Profitable Revenue • 1990 IPO • Flatbed • Recession Growth • 20%+ Revenue CAGR • Refrigerated • S
Slide 10: Total Revenue and Earnings 1990-2013
Total Revenue and Earnings 1990-2013 ($ mm) Total Revenue (1) 4,052 $4,100 3,549 3,197 3,173 3,265 3,400 3,334 3,493 2,826 2,930 $3,100 2,571 2,398 2,112 2,101 $2,100 1,259 1,061 $1,100 714 873 458 562 233 277 366 156 190 $100 (6) (4) '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 (2) '02 '03 '04 '
Slide 11: The Three Pillars of Value Creation
The Three Pillars of Value Creation Profitable Revenue Growth Improved Asset Utilization Continuous Improvement (Cost Control & Profitability) Strengthen and grow core Maximize use of drivers Four Disciplines of Execution customer relationships by cross available hours (Plus 1, HOS) (4DX) selling su
Slide 12: Central Refrigerated Acquisition
Central Refrigerated Acquisition Swift Confidential & Proprietary 12
Slide 13: Central Refrigerated “At a Glance”
Central Refrigerated “At a Glance” REVENUE Swift acquired 100% of Central Refrigerated on August 6, ($ in millions) (y-o-y growth) 2013 for total implied enterprise value of $225 million $485 $504 $500 $447 30% $189 million in cash and assumption of $36 million in $400 $373 $349 capital lease ob
Slide 14: Strategic Fit
Strategic Fit 2012 CENTRAL REFRIGERATED REVENUE MIX ($485 MILLION) REFRIGERATED SERVICE OVERLAP Brokerage / Intermodal Other - 10% SWIFT CENTRAL REF 4% OTR Refrigerated Over the Road (OTR) / Irregular Route Dedicated 63% Refrigerated Dedicated Fleet 23% Intermodal Brokerage PF 2012 SWI
Slide 15: Financial Summary
Financial Summary Swift Confidential & Proprietary 15
Slide 16: Consolidated Results
Consolidated Results Revenue xFSR (1) (2) (1) (2) $3,750 89.0% Adjusted Operating Ratio $3,500 Combined 88.8% Swift & Central Combined Swift & $3,252 88.5% Central $3,250 88.3% 88.3% 88.3% $3,000 $2,854 $2,803 88.0% 87.9% $2,750 $2,680 87.8% 87.8% 87.7% $2,501 $2,500 87.5% $2,250 87.3% $2,000 87.0%
Slide 17: Adjusted Operating Ratio Trends by Segment
Adjusted Operating Ratio Trends by Segment 90.0% 90.0% (1) (2) 88.9% Truckload (1) (2) Dedicated 89.0% 88.5% 88.2% 87.9% 88.0% 87.5% 88.0% 87.1% 86.4% 87.0% 86.3% 86.0% 85.2% 85.3% 86.0% 85.0% 84.0% 84.0% 83.0% 82.0% 2010 2011 2012 YTD Q2'12 YTD Q2'13 2010 2011 2012 YTD Q2'12 YTD Q2'13 105.0% (1) (2
Slide 18: Creating Value for Swift
Creating Value for Swift * Increase our RONA by 1% annual CAGR for each of the next 5 years Targeting EPS Growth Reduce our leverage of 20% for 2012 and ratio to roughly 1.5X 15% CAGR from by 2017 2013-2017 Creating Shareholder Value *Goals shared in our May 2012 Investor/Analyst Day Swift Confident
Slide 19: Net Debt and Leverage Ratio
Net Debt and Leverage Ratio Net Debt & Leverage Ratio ($ Millions) $3,000 6.35 6.16 $2,750 $2,500 $2,250 3.86 $2,000 3.17 2.78 2.58 2.73 $1,750 $2,601 $2,499 $1,500 $1,919 $1,250 $1,705 $1,680 $1,531 $1,455 $1,000 $750 2008 2009 2010 2011 2012 Q2 2013 Q2 2013 Proforma Net Debt Leverage Ratio Continu
Slide 20: Consolidated Adjusted EPS
Consolidated Adjusted EPS (1) (2) Adjusted EPS $1.25 $1.00 $1.00 $0.79 $0.75 (3) $0.58 $0.52 (3) $0.50 $0.46 $0.41 $0.25 $- 2011 2012 YTD Q2'12 YTD Q2'13 YTD Q2'12 YTD Q2'13 Combined Combined Swift & Swift & Central Central Strong adjusted EPS growth; exceeding previously outlined targets (1) See GA
Slide 21: Creating Value for Swift
Creating Value for Swift * 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 2012 Investor/Analyst Day Swift Confident
Slide 22: Appendix
Appendix Swift Confidential & Proprietary 22
Slide 23: Combined Swift and Central Refrigerated reconciliation table
Combined Swift and Central Refrigerated reconciliation table LTM June 30, 2013 Central Swift Refrigerated Eliminations of Transportation Transportation, Intercompany Swift & Central Company Inc. Transactions Combined (Unaudited) Operating revenue $ 3,548,611 $ 504,053 $ (1,157) $ 4,051,507 Less: Fue
Slide 24: Central Refrigerated reconciliation table
Central Refrigerated reconciliation table YTD December 31, LTM June 30, YTD June 30, YTD June 30, 2010 2011 2012 2013 2013 2012 (Unaudited) (Unaudited) (Unaudited) Operating revenue $ 372,837 $ 447,204 $ 484,665 $ 504,053 $ 256,614 $ 237,226 Less: Fuel surcharge revenue 61,104 96,084 104,322 105,219
Slide 25: Central Refrigerated EBITDA(R) reconciliation
Central Refrigerated EBITDA(R) reconciliation YTD December 31, LTM June 30, 2009 2010 2011 2012 2013 (Unaudited) Net income $ 2,572 $ 9,024 $ 12,196 $ 25,499 $ 27,528 Adjusted for: Depreciation and amortization 7,707 8,860 13,925 19,010 18,324 Interest expense 2,801 2,457 4,008 3,958 3,649 Income ta
Slide 26: Combined Swift and Central Refrigerated Adj. EPS reconciliation
Combined Swift and Central Refrigerated Adj. EPS reconciliation YTD June 30, 2012 2013 (Unaudited) Swift Transportation Company Adjusted EPS, as reported (a) $ 0.41 $ 0.52 Adjusted for: Impact of Central Refrigerated to Adjusted EPS (b) 0.05 0.06 Combined Adjusted EPS $ 0.46 $ 0.58 (a) As reported i
Swift Transportation — Citi Global Industrials Conference 2013 on 6ix