Slide 1: 1Q 2021 Earnings Presentation
1 Q 2 0 2 1 E A R N I N G S P R E S E N TAT I O N April 28, 2021
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
Slide 3: Werner Overview, 1Q 2021 Highlights
WERNER OVERVIEW, 1Q 2021 HIGHLIGHTS Derek Leathers Vice Chairman, President and Chief Executive Officer
Slide 4: Werner Overview
W E R N E R OV E R V I E W Premium Truckload Transportation & Logistics Services Provider Omaha, NE $3.1B 4,920 2,815 12,639 0.9% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 2020 Revenues by Se gment 2 0 2 0 Reve n u e s b y Ve r t i c a l 2020 Reve
Slide 5: 1Q 2021 Highlights
1Q 2021 HIGHLIGHTS Revenues 4% to $616M GAAP EPS 106% to $0.68 Financial Adjusted EPS 72% to $0.68 Highlights Adjusted operating income 68% to $62.7M Adjusted TTS operating margin1 570 bps to 14.2% Strategic Updates and Other Developments Comparisons to prior year quarter unless otherwise noted ▪ Re
Slide 6: 1Q 2021 Company and Segment Financial Results
1Q 2021 COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: 1Q 2021 Financial Performance
1Q 2021 FINANCIAL PERFORMANCE $80 0 $79 0 Total Revenues ($M) Adjusted Operating Income ($M) 20. 0% Adjusted EPS $78 0 and Operating Margin $77 0 $76 0 $90 .0 $75 0 $74 0 $73 0 $72 0 18. 0% $71 0 $70 0 $69 0 $616 $0.68 $68 0 $67 0 $80 .0 $596 $593 $66 0 $65 0 $64 0 16. 0% $63 0 $62 0 $61 0 $60 0 $62
Slide 8: Truckload Transportation Services (TTS) Results
T R U C K L O A D T R A N S P O R TAT I O N S E R V I C E S ( T T S ) R E S U LT S 1Q19 1Q20 1Q21 1Q21 vs. 1Q20 Revenues ($M) $462.9 $464.9 $462.9 Flat Adjusted Operating Income ($M) $44.1 $35.3 $58.9 67% Adjusted Operating Margin1 10.9% 8.5% 14.2% 570 bps Adjusted Operating Ratio1 89.1% 91.5% 85.8%
Slide 9: TTS Fleet Metrics Update
T T S 1 F L E E T M E T R I C S U P DAT E Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 $254 $25 0 $231 $218 4,934 $3,874 $3,957 4,530 4,591 $3,694 $20 0 $15 0 $10 0 $50 $- 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 One-Way Truckload Trucking Revenues2 ($M) Av
Slide 10: Werner Logistics Results
W E R N E R L O G I S T I C S R E S U LT S 1Q19 1Q20 1Q21 1Q21 vs. 1Q20 Revenues ($M) $117.4 $112.2 $137.9 23% Gross Margin 17.3% 14.5% 12.6% (190) bps Adjusted Operating Income ($M) $4.7 $1.1 $3.6 228% Adjusted Operating Margin 4.0% 1.0% 2.6% 160 bps YoY Commentary (1Q21 vs. 1Q20) ▪ Truckload Logis
Slide 11: Strong FCF Generation; Expected to Continue
S T R O N G F C F G E N E R AT I O N ; E X P E C T E D T O C O N T I N U E ($M) COMMENTARY $446 $430 $427 $418 ▪ FCF generation of $180M in 2020 $349 ▪ 2021 Net CapEx expected to be in the $310 range of $275M to $300M; over the $283 $284 $266 long-term, targeting Net CapEx at 11- 13% of annual reven
Slide 12: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Priorities Continual and Consistent Investment in the Five T’s + S Capital Allocation History 2018-2020 $1.4B ▪ Reinvestments in new, feature-rich trucks and trailers, including the latest safety technology, that extend sustainable competitive advantages for Share cust
Slide 13: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Vice Chairman, President and Chief Executive Officer
Slide 14: 5 T's + S Are Core Components of Our Strategy
5 T’S + S ARE CORE COMPONENTS OF OUR STRATEGY COMMITTED TO REMAINING AT THE FOREFRONT OF OUR INDUSTRY KEY FOCUS AREAS 1Q21 UPDATES ▪ Maintain the age of our industry-leading ▪ Despite OEM production and delivery 1. Trucks modern truck fleet, which includes state-of- challenges, maintained the age of
Slide 15: Our Formalized Approach to Sustainability
O U R F O R M A L I Z E D A P P R OA C H T O S U S TA I N A B I L I T Y Environmental Social Governance Build on Strong Foundation as an Foster and Empower an Inclusive Continue to Uphold Transparency, Industry Leader, Focused on Culture that Upholds Our Core Ethics and Integrity in Our Reducing Our
Slide 16: 2021 Guidance Metrics and Assumptions
2 0 2 1 G U I DA N C E M E T R I C S A N D A S S U M P T I O N S Prior Actual New (as of 2/4/21) (as of 3/31/21) (as of 4/28/21) Commentary 2021 Guidance 1% to 3% (1)% 1% to 3% Continue to expect modest fleet growth for full TTS truck growth from BoY to EoY (annual) (1Q21) (annual) year 2021 $12M to
Slide 17: Q&A
Q&A
Slide 18: Invest With Us
INVEST WITH US ✓ Consistent and flexible execution of 5 T’s + S strategy during COVID enabled Werner to achieve record first quarter adjusted operating income and adjusted EPS ✓ Strong freight demand expected in 2021; balanced revenue portfolio and consumer-centric freight base with winning customer
Slide 19: Appendix
APPENDIX
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended March 31, 2021 2020 Operating revenues $ 616,446 $ 592,703 Operating expenses 553,975 561,637 Operating income 62,471 31,066 Total other expense (income) 583 1,010 Income before income taxes 61,88
Slide 21: For More Information, Visit werner.com
F O R M O R E I N F O R M AT I O N , V I S I T W E R N E R . C O M