Werner Enterprises, Inc. · NASDAQ:WERN

Werner Enterprises — Baird 2019 Global Industrial Conference

15 slides from Werner Enterprises's conference presentation, Nov 6, 2019

  1. Slide 1: Baird Industrial Conference

    Baird Industrial Conference November 6, 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 $2.6B Werner Logistics Schools/Other 77% Dedicated 4,620 Fleet Size1 One-Way 2018 Revenues by Vertical 2018 Reven

  4. Slide 4: Comprehensive, Customer Focused Solutions

    COMPREHENSIVE, CUSTOMER FOCUSED SOLUTIONS 3,435 Trucks (43%) 4,620 Trucks (57%)  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 Tractors  Maintained truck age at 1.8 years; keep at or near this level going forward 02 Trailers  Lowered trailer age to 4.0 years, lowest level since 2000 03 Talent  Utilizing performance pay and metrics to drive performance and attract and retain high performing

  6. Slide 6: 3Q 2019 and YTD 2019 Highlights

    3Q 2019 AND YTD 2019 HIGHLIGHTS  Revenues decreased 2% to $618M 3Q19  GAAP EPS decreased 15% to $0.56 Financial  Adj. EPS decreased 11% to $0.57 Highlights  Adj. operating income decreased 12% to $54.2M  Adj. operating margin decreased ~90 bps to 8.8%  Revenues increased 2% to $1,842M  GAAP E

  7. Slide 7: Truckload Transportation Services (TTS) Results

    TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 3Q18 3Q19 Change YoY Revenues ($M) $484.8 $480.4 (1%)  TTS RPTPW1 (1.5%)  Dedicated RPTPW +4.1% Adj. Op. Income ($M) $56.8 $49.7 (13%)  One-Way TL RPTPW1 (7.6%), including (5.6%) lower Adj. Op. Margin 11.7% 10.3% (140) bps One-Way TL RPTM1 and (2.0%

  8. Slide 8: TTS 3Q Fleet Metrics

    TTS 2 3Q FLEET METRICS Dedicated Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $232 4,401 4,592 $214 $25 0 $3,734 $3,888 $20 0 $15 0 $10 0 $50 $- 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 One-Way Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $25 0 $4,523 $

  9. Slide 9: Werner Logistics Results

    WERNER LOGISTICS RESULTS 3Q18 3Q19 Change YoY Revenues ($M) $129.4 $121.3 (6%)  Intermodal had significant volume and small price declines  Truckload Logistics (transactional and contractual Gross Margin 15.9% 15.2% (70) bps brokerage) had a double-digit volume increase and a double-digit price de

  10. Slide 10: 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

  11. Slide 11: Capital Allocation Strategy

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

  12. Slide 12: Summary – Invest With Us

    SUMMARY – INVEST WITH US We have Heavy capex New fleet, Long-term We are a balanced our period behind us; updated terminal margin and stronger, better revenue portfolio Current capex network, return positioned toward more normalized; Free enhanced fleet expectations company than we consistent cash f

  13. Slide 13: Appendix

    WERNER WE KEEP AMERICA MOViINGe APPENDIX

  14. Slide 14: GAAP to Non-GAAP Reconciliation

    GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Operating revenues $ 618,264 $ 629,735 $ 1,841,914 $ 1,811,549 Operating expenses 564,907 566,349 1,682,096 1,662,265 Adjusted for

  15. Slide 15: For more information visit Werner.com

    For more information visit Werner.com

Werner Enterprises — Baird 2019 Global Industrial Conference on 6ix