Werner Enterprises, Inc. · NASDAQ:WERN
Werner Enterprises — Q4 2024 Earnings Presentation
29 slides from Werner Enterprises's earnings presentation, Feb 6, 2025
Slide 1: 4Q24 and Full Year 2024 Earnings Presentation
4Q24 AND FULL YEAR 2024 EARNINGS PRESENTATION FEBRUARY 6, 2025 1
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: Business Overview
BUSINESS OVERVIEW DEREK LEATHERS Chairman and Chief Executive Officer
Slide 4: Werner Overview (WERN)
WERNER OVERVIEW (WERN) 6TH 69 2,278 TOTAL DRIVERS IN COMPANY YEARS IN OMAHA, NE LARGEST HISTORY WITH ONE MILLION OR MORE SAFE DRIVING BUSINESS HEADQUARTERS DEDICATED CARRIER IN U.S.3 MILES WITH WERNER 4,840 DEDICATED 4 > 90% DEDICATED CUSTOMER 2,610 ONE-WAY TRUCKLOAD 4 $2.2B 1.6% 1 1 2 2 12,896 295
Slide 5: 4Q24 and FY24 Financial Highlights
4Q24 AND FY24 FINANCIAL HIGHLIGHTS 4Q24 2024 HIGHLIGHTS Y/Y Change Y/Y Change • Dedicated continued to display resiliency; growing Revenues $755M $3,030M revenue per truck 27 of 28 quarters and 10 of the last (8)% (8)% 11 years GAAP EPS $0.19 $0.55 • Engineering of the One-Way fleet resulted in 8% (
Slide 6: DRIVE Strategy Supports 2025 Strategic Priorities
DRIVESM STRATEGY SUPPORTS 2025 STRATEGIC PRIORITIES WERNER DRIVESM BUILDING ON 5Ts AND SHAPING OUR FUTURE DRIVING GROWTH IN CORE BUSINESS • Expanding TTS & Logistics adjusted operating income margin • Increasing One-Way rates • Growing Dedicated fleet size DRIVING OPERATIONAL EXCELLENCE • Resolute f
Slide 7: 2025 Market Outlook
2025 MARKET OUTLOOK • Truckload fundamentals to gradually improve throughout the year, including improving rates • Carriers continue exiting the market • Consumers remain resilient and non-discretionary spending holds up, while discretionary picks up, spending on goods vs. services back to historica
Slide 8: Financial Results
FINANCIAL RESULTS CHRIS WIKOFF Executive Vice President, Treasurer and Chief Financial Officer
Slide 9: 4Q24 Results
4Q24 RESULTS ADJUSTED OPERATING INCOME1 ($M) TOTAL REVENUES ($M) AND ADJUSTED OPERATING MARGIN1 ADJUSTED EPS1 $861 $12 0.0 20. 0% 18. 0% $11 0.0 $822 $10 0.0 $89.9 16. 0% $0.99 $1. 20 $90 .0 14. 0% $80 .0 $1. 00 12. 0% $70 .0 $0. 80 10. 0% $60 .0 $755 $50 .0 10.4% $39.2 8.0 % $0.39 $0. 60 $40 .0 6.0
Slide 10: 4Q24 Truckload Transportation Services (TTS) Results
4Q24 TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 4Q22 4Q23 4Q24 4Q24 vs. 4Q23 Revenues ($M) $634.8 $580.1 $527.3 (9)% Revenues, net FSC ($M) $525.2 $495.4 $469.7 (5)% Adjusted Operating Income1 ($M) $83.1 $37.2 $14.6 (61)% Adjusted Operating Margin1, 2 15.8% 7.5% 3.1% (440) bps Adjusted Operatin
Slide 11: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE TTS FLEET DOWN 7% Y/Y TO 7,450; RPTPW UP 3% AND INCREASED 23 OUT OF LAST 28 QUARTERS TRUCKING REVENUES2 ($M) AVERAGE TRUCKS REVENUES / TRUCK / WEEK2 DEDICATED TRUCKLOAD $1,217 $1,236 $1,164 $4,501 $4,541 $4,593 $4,428 $4,496 $4,546 5,417 5,239 5,284 5,284 4,836 4,924 $317 $
Slide 12: 4Q24 Werner Logistics Results
4Q24 WERNER LOGISTICS RESULTS 4Q22 4Q23 4Q24 4Q24 vs. 4Q23 Revenues ($M) $213.5 $227.0 $213.2 (6)% Revenues, less purchased $39.0 $33.8 $31.4 (7)% transportation expense ($M)1 Adjusted Operating Income ($M)1 $8.0 $3.0 $2.4 (21)% Adjusted Operating Margin1 3.8% 1.3% 1.1% (20) bps Y/Y COMMENTARY (4Q24
Slide 13: Cost Savings Program Generating Significant Savings Across Multiple Years
COST SAVINGS PROGRAM GENERATING SIGNIFICANT SAVINGS ACROSS MULTIPLE YEARS 2025 COST & 2024 Salaries and Wages CONTAINMENT FOCUS 20232023 Supplies and Maintenance ~$100M Professional Services • >60% structural and sustainable Actualized Savings Other • Disciplined approach through: • Operational Inno
Slide 14: Strong Capital & Cash Flow Generation
STRONG CAPITAL & CASH FLOW GENERATION CASH FLOW LIQUIDITY1 ($ millions) ($ millions) $474 $446 $449 Cash, $409 $41 $333 $318 $330 $266 $235 $193 $460 $180 Total Liquidity $140 $131 $95 Available $66 Credit, $419 2020 2021 2022 2023 2024 2 Op. CF Net CapEx FCF SOLID CASH FLOW & LIQUIDITY • Solid quar
Slide 15: Flexible Debt and Low Leverage
FLEXIBLE DEBT AND LOW LEVERAGE DEBT MATURITY SCHEDULE NET DEBT TO LTM EBITDA1 ($ millions) 1.6x $650 1.2x 1.0x 0.6x 0.3x 2025 2026 2027 2028 2029 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 HEALTHY BALANCE SHEET • $650M Debt; down $40M sequentially and up <1% Y/Y • 55% effectively-fixed rate debt •
Slide 16: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION STRATEGIC PRIORITIES CAPEX REINVESTMENT FOR GROWTH Reinvestment for Long-Term Growth 2025 Net CapEx Priorities: • Reinvestments to maintain low-age, safe and modern trucks and trailers • Ongoing strategic reinvestment, although lower than historical ranges • Growth inv
Slide 17: Introducing 2025 Guidance
INTRODUCING 2025 GUIDANCE 2024 Guidance 2024 Actual 2025 Guidance (as of 10/29/24) (as of 12/31/24) (as of 2/6/25) 2025 GUIDANCE TTS Truck Count from BoY to EoY (8)% to (6)% (7)% 1% to 5% (annual) (2024) (annual) Net Capital Expenditures $240M to $260M $235M $185M to $235M (annual) (2024) (annual) T
Slide 18: 2025 Modeling Assumptions
2025 MODELING ASSUMPTIONS • Annual net interest expense expected to be flat, but $3M to $5M higher in 1H25 then approximately the same amount lower in 2H primarily from lower effective interest rates • Gains on sale of property and equipment stabilizes at low levels with improvement in 2H. Planning
Slide 19: Appendix
APPENDIX
Slide 20: Revenues Snapshot
REVENUES SNAPSHOT 2024 REVENUES 2024 REVENUES 2024 REVENUES BY SEGMENT BY VERTICAL BY CUSTOMER Top 50 Customers 2% Retail 62% Top 5 36% 27% 28% $3.0B Food & TOTAL 14% Top 10 48% REVENUES 70% Beverage 71% Manufacturing Top 25 16% 65% & Industrial Truckload Transportation Services (TTS) Logistics & 8%
Slide 21: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) Quarter Ended December 31, Year Ended December 31, 2022 2023 2024 2023 2024 % of Op. % of Op. % of Op. % of
Slide 22: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Free Cash Flow (1), (10) Year Ended Decem ber 31, 2019 2020 2021 2022 2023 2024 $ $ $ $ $ $ Net cash provided by operating activities — (GAAP) $ 426,644 $ 445,909 $ 332,819 $ 44
Slide 23: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA); Non-GAAP Net Debt; and Non-GAAP Net Debt to EBITDA Ratio (1), (11) Year Ended Decem ber 31, 2020 2021 20
Slide 24: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (Unaudited) (In thousands) Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) Quarter Ended December 31, Year Ended December 31, 2022 2023 2024 2023 2024 % of Op. % of Op. % of
Slide 25: Reconciliation of Non-GAAP Financial Measures – TTS Segment (Continued)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (Continued) (Unaudited) (In thousands) Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of
Slide 26: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (Unaudited) (In thousands) Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) Quarter Ended December 31, 2022 2023 2024 % of Op. % of Op. % of Op. $ Rev. $ Rev. $ Rev. Operating revenues — (GAAP) $
Slide 27: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) Non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income attributable to Werner; non- GAAP adjusted diluted earnings per share; non-GAAP free cash
Slide 28: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (10) We consider free cash flow (net cash provided by operating activities less net expenditures for property and equipment) to be a useful measure of our liquidity. We believe it is a more conservative measure of cash flow since capital expenditures are
Slide 29: For More Information, Visit Werner.com
FOR MORE INFORMATION, VISIT WERNER.COM