Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q3 2021 Earnings Presentation
24 slides from Knight-swift Transportation's earnings presentation, Oct 20, 2021
Slide 1: KNX 3Q21 Earnings Presentation
Exhibit 99.2 KNX 3Q21 Earnings Presentation
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 statement
Slide 3: KNX Overview
KNX Overview (1) LTL YTD Revenue includes proforma results of ACT prior to the July 5th acquisition (2) Excludes intersegment transactions 3
Slide 4: Growing Shareholder Value
Growing Shareholder Value (1) Defined as YTD Free Cash Flow / YTD Adjusted Net Income (2) See GAAP to non-GAAP reconciliation in the schedules following this presentation. 4
Slide 5: Third Quarter 2021 Comparative Results
Third Quarter 2021 Comparative Results Knight-Swift Consolidated Q3 '21 Q3 '20 Change (Dollars in thousands, except per share data) Total revenue $ 1,642,445 $ 1,210,406 35.7 % Revenue xFSC $ 1,510,572 $ 1,137,313 32.8 % Operating income $ 270,087 $ 165,461 63.2 % Adj. Operating Income 1 $ 283,108 $
Slide 6: Operating Performance – Truckload
Operating Performance – Truckload Truckload Financial Metrics Q3 '21 Q3 '20 Change (Dollars in thousands) • 22.3% year-over-year improvement Revenue xFSC $933,205 $902,592 3.4 % in Adjusted Operating Income Operating income $206,543 $168,781 22.4 % • 77.8% Adjusted Operating Ratio in Adjusted Operat
Slide 7: Operating Performance – Logistics
Operating Performance – Logistics • $27.5M in Adjusted Operating Logistics Financial Metrics Income with minimal capital Q3 '21 Q3 '20 Change investment (Dollars in thousands) • Power-only revenue more than Revenue ex intersegment $221,374 $96,237 130.0 % tripled leading to a 130.0% increase Operati
Slide 8: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics Q3 '21 Q3 '20 Change • 14.1% increase in Revenue (Dollars in thousands) Revenue ex intersegment $112,754 $98,808 14.1 % • $9.3M year-over-year improvement in Operating Operating income $9,544 $250 3,717.6 % Income Adjusted Operating Inc
Slide 9: Operating Performance – LTL
Operating Performance – LTL LTL Financial Metrics • $21M of Adjusted Operating Income Q3 '21 (Dollars in • 87.5% Adjusted Operating Ratio in thousands) Q3 2021 Revenue xFSC $167,900 • 7.9% increase in LTL Revenue Operating income $17,469 xFSC per shipment compared to Adjusted Operating Income 1 $20,
Slide 10: Operating Performance – Non-Reportable
Operating Performance – Non-Reportable • 57.9% increase in Revenue driven by additional equipment Non-Reportable Financial Metrics leasing, warehousing activities, and expanded services Q3 '21 Q3 '20 Change provided to 3rd party carriers (Dollars in thousands) • $15.5M year-over-year Revenue $89,393
Slide 11: Formally Launched Iron Truck Services
Formally Launched Iron Truck Services Extending our transportation infrastructure, knowledge, and scale, while creating valuable 3rd party carrier relationships. irontruckservices.com 11
Slide 12: Market Outlook Q4 2021 and FY 2022
Market Outlook Q4 2021 and FY 2022 • In addition to expecting unprecedented demand in Q4, we anticipate similar strength for truckload services throughout 2022 • Capacity expansion continues to be limited as new tractor and trailer builds are constrained by parts availability and labor shortages • S
Slide 13: 2021 Guidance
2021 Guidance Increasing expected Adjusted EPS for the full year 2021 to $4.50 - $4.55 from $3.90 - $4.05 previously Q4 Guidance Assumptions • Recent rate trends to continue • Strong opportunities for project business • Miles per truck will remain pressured by the driver shortage and a network shift
Slide 14: Appendix
Appendix i KKNIGHT UO) Swirr TRANSPORTATION
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 2 Quarter-to-Date September 30, Year-to-Date September 30, 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,642,445 $ 1,210,406 $ 4,181,160 $ 3,395,902
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 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
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 Quarter-to-Date September 30, Year-to-Date September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 Quarter-to-Date September 30, Year-to-Date September 30, 2021 2020 2021 2020 GAAP: Earnings per diluted share $ 1.23 $ 0.71 $ 2.93 $ 1.57 Adjusted for: Income tax expens
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date September 30, Year-to-Date September 30, Truckload Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,041,332 $ 975,881 $
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date September 30, Year-to-Date September 30, Logistics Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 226,338 $ 99,018 $ 511
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date September 30, Year-to-Date September 30, Intermodal Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 112,801 $ 98,859 $ 33
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 LTL Segment 2 Quarter and Year-to-Date September 30, 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 191,906 Total operating expenses (174,437) Operating income
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 September 30, 2021 2020 (Dollars in thousands) Total Assets $10,354,982 $ 8,501,361 Adjusted for: Intangible assets, net (1,793,924) (1,400,719) Goodwill (3,461,898) (2,922,967) Tangible Assets $5,099,160 $
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income 1 2 Year-to-Date Year-to-Date Year-to-Date TTM September 30, December 31, September 30, September 30, 2021 2020 2020 2021 (Dollars in thousands) GAAP: Net income attributable to K
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