Slide 1: 3Q 2022 Earnings Presentation
3Q 2022 EARNINGS PRESENTATION November 2, 2022
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 3Q 2022
Derek Leathers Chairman, President and Chief Executive Officer Werner Overview 3Q 2022
Slide 4: Werner Overview
WERNER OVERVIEW PREMIUM TRUCKLOAD TRANSPORTATION & LOGISTICS SERVICES PROVIDER 8,580 TTS Trucks1 Omaha, NE $2.4B 14,490 1.3% Headquarters Market Cap1 Associates2 Dividend Yield1 5,430 3,150 Dedicated1 One-Way1 2021 REVENUES BY SEGMENT 2021 REVENUES BY VERTICAL 2021 REVENUES BY CUSTOMER 2% 23% Top 5
Slide 5: 3Q 2022 Financial Highlights
3Q 2022 FINANCIAL HIGHLIGHTS Adjusted EPS3 Trending $1.20 $4.50 Qtr Adj EPS $1.00 $4.00 Revenues 18% to $828M 4 Qtr Rolling Adj EPS $3.50 $0.80 $3.00 GAAP EPS (8%) to $0.86 $0.60 $2.50 $0.40 Adjusted EPS3 14% to $0.90 $2.00 $0.20 $1.50 Adjusted operating income1,3 8% to $79.5M $0.00 $1.00 1Q16 2Q16
Slide 6: 3Q 22 Company and Segment Financial Results
John Steele EVP, Treasurer and Chief Financial Officer 3Q 2022 Company and Segment Financial Results
Slide 7: 3Q 2022 Financial Performance
3Q 2022 FINANCIAL PERFORMANCE Adjusted Operating Income1 ($M) Total Revenues ($M) Adjusted EPS1 $12 0.0 and Adjusted Operating Margin1 25. 0% $11 0.0 $828 $10 0.0 20. 0% $0.90 $79.5 $85 0 $0.79 $90 .0 $703 $84 0 $73.9 $83 0 $82 0 $81 0 $80 0 $79 0 $78 0 $0.69 $77 0 $76 0 $75 0 $80 .0 $64.3 $74 0 $73
Slide 8: Truckload Transportation Services (TTS) Results
TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 3Q20 3Q21 3Q22 3Q22 vs. 3Q21 Revenues ($M) $458.3 $527.7 $621.9 18% Adjusted Operating Income1 ($M) $65.2 $65.4 $76.3 17% Adjusted Operating Margin1, 2 15.5% 14.0% 14.9% 90 bps Adjusted Operating Ratio1, 2 84.5% 86.0% 85.1% (90) bps YoY Commentary (3Q2
Slide 9: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE Trucking Revenues 2 ($M) Average Trucks Revenues / Truck / Week2 DEDICATED TRUCKLOAD $314 5,051 5,359 $4,508 $271 4,567 $4,115 $4,129 $244 3Q20 3Q21 3Q22 3Q20 3Q21 3Q22 3Q20 3Q21 3Q22 ONE-WAY TRUCKLOAD $25 0 $4,708 $4,624 3,154 $4,366 $190 $190 3,048 3,110 $20 0 $173 $15 0
Slide 10: Dedicated Fleet Provides Resilience and Stability
DEDICATED FLEET PROVIDES RESILENCE AND STABILITY Dedicated Fleet Strategically Increased to 63% of TTS Fleet From 48% in 2013 Our Dedicated Customers Require and Value Premium Service Business Model is Durable and Consistent ▪ High service business with 99%+ on-time, safety-focused service with cust
Slide 11: Werner Logistics Results
WERNER LOGISTICS RESULTS 3Q20 3Q21 3Q22 3Q22 vs. 3Q21 Revenues ($M) $117.4 $158.0 $187.1 18% Revenues, less purchased $12.7 $23.0 $32.2 40% transportation expense ($M) Adjusted Operating Income ($M)1 $(0.9) $7.6 $5.6 (26%) Adjusted Operating Margin1 (0.7)% 4.8% 3.0% (180) bps YoY Commentary (3Q22 vs
Slide 12: Strong FCF Generation; Expected to Continue
STRONG FCF GENERATION; EXPECTED TO CONTINUE COMMENTARY ($M) • FCF generation of $140M in 2021 $446 • 2022 Net CapEx expected to be $418 $427 in the range of $300M to $325M; over the long-term, targeting Net $349 CapEx at 11-13% of annual $333 revenues $283 $284 $266 • Investment focused on maintaini
Slide 13: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION PRIORITIES Capital Allocation History Continual and Consistent Investment in the Business 2018-2021 $1.9B • Reinvestments in new, feature-rich trucks and trailers, including the Share latest safety technology, that extend sustainable competitive Buybacks $275M advantag
Slide 14: Business Update & Financial Outlook
Derek Leathers Chairman, President and Chief Executive Officer Business Update & Financial Outlook
Slide 15: Capital Allocation – Recent Acquisitions
CAPITAL ALLOCATION – RECENT ACQUISITIONS Areas of Focus Additive Services Financial North America Footprint Customer Service Talent Companies with services Acquired companies North American truckload Superior customer service Strong management team with that add to or complement expected to be accre
Slide 16: Recent Progress of Our ESG Initiatives
RECENT PROGRESS OF OUR ESG INITIATIVES 3Q 2022 Sampling of Previous Milestones • Released our CSR update report in September which provides a benchmark of our 2021 progress on our ESG goals and initiatives • Adopted SASB Disclosure Framework and aligned with specific U.N. SDGs • Announced recent pil
Slide 17: 2022 Guidance Metrics and Assumptions
2022 GUIDANCE METRICS AND ASSUMPTIONS Prior Guidance Actual New Guidance Commentary (as of 8/3/22) (as of 9/30/22) (as of 11/2/22) 2022 Guidance 2% to 5% 3% 3% to 5% Includes Baylor trucks acquired 10/1/22; TTS truck growth from BoY to EoY (annual) (YTD22) (annual) rest of fleet flat to slightly low
Slide 18: Q&A
WERNER WE KEEP AMERICA MOViNGe Q&A
Slide 19: Invest With Us
INVEST WITH US Positioned for strong performance in a truckload freight market that is moderating from peak levels ✓ • Large, stable and growing Dedicated fleet with winning customers who value our superior service; attractive driving positions with frequent home time • Diversified One-Way fleet wit
Slide 20: Appendix
WERNER WE KEEP AMERICA MoviNge Appendix
Slide 21: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 21
Slide 22: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 22
Slide 23: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 23
Slide 24: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 24
Slide 25: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 25
Slide 26: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 26
Slide 27: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (unaudited) (In thousands) 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 28
Slide 29: Thank you
Thank you FOR MORE INFORMATION, VISIT WERNER.COM