Schneider National, Inc. · NYSE:SNDR
Schneider National — Q3 2024 Earnings Presentation
29 slides from Schneider National's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Investor Presentation
THIRD QUARTER 2024 Investor Presentation INNOVATIVE – RESILIENT – DRIVEN
Slide 2: Presentation highlights
Presentation highlights • BUSINESS OVERVIEW • STRATEGY • CAPITAL ALLOCATION • TECHNOLOGY AND INNOVATION • PEOPLE AND VALUES • SECULAR TRENDS • INVEST WITH SNDR • CURRENT RESULTS AND OUTLOOK • APPENDIX 2
Slide 3: By the numbers
by the numbers ALL THIS COULDN'T BE DONE WITHOUT: Tigle AEO)* Ue number of times theft-free loads Schneider loads freight miles circle the globe zero emission miles’ per day" per day* with about 345,000 miles added monthly $5.5 BILLION annual operating revenues* $2.4 BILLION ff swoous I ae third-par
Slide 4: Experienced leadership, focused on growth and delivering shareholder value
BUSINESS OVERVIEW Experienced leadership, focused on growth and delivering shareholder value Mark Rourke Darrell Campbell Jim Filter • Chief Executive Officer and President since • Executive Vice President, Chief Financial • Executive Vice President, Group 2019, previously serving as Executive Vice
Slide 5: Driven by our uncompromising values to deliver the goods
BUSINESS OVERVIEW Driven by our uncompromising values to deliver the goods that enhance the lives of people everywhere. Truckload Segment Over the road freight transportation via dry van, bulk, temperature-controlled and flat-bed trailers across either network (irregular route) or dedicated (structu
Slide 6: Truckload consists primarily of dedicated contract configurations
BUSINESS OVERVIEW Truckload consists primarily of dedicated contract configurations, complemented by a trailer-centric network operation. Dedicated • Contracted and consistent capacity through freight cycles • Multi-year contracts with 90%+ renewal rates on average • Driver-preferred alignment • Orga
Slide 7: Intermodal provides a greener method of transportation
BUSINESS OVERVIEW Intermodal provides a greener method of transportation, leveraging our differentiated company-owned container, chassis and dray model. • Approximately 26,600 company-owned containers and 23,300 company-owned chassis • Over 1,400 company dray tractors, executing the majority of dray
Slide 8: Logistics continues to grow share connecting shippers and carriers
BUSINESS OVERVIEW Logistics continues to grow share by connecting shippers and carriers of all sizes through our advanced brokerage solutions, including Power Only. • Approximately 22,000 qualified carriers in our network • Largest Power Only network in the industry • Enabled by proprietary Schneide
Slide 9: Strong financial position built on diligent capital allocation
BUSINESS OVERVIEW Our strong financial position is built on diligent capital allocation, the relentless pursuit of profitable growth and delivering shareholder value. Operating revenues Income from operations Adjusted diluted earnings per share In millions, except EPS. See Appendix for non-GAAP reconc
Slide 10: Diversity of customers and end-markets served supports resiliency
BUSINESS OVERVIEW Diversity of customers and end-markets served Growing Customer Base: supports resiliency through business cycles. Change in Customer Concentration Diverse End-Market Footprint: 2023 Revenues (xFSC) All other 33% Retail 19% Food and Online-only beverage 14% retail 2% Consumer Transp
Slide 11: Comprehensive North American footprint with industry-leading safety
BUSINESS OVERVIEW Comprehensive North American footprint with industry-leading safety, culture and performance. 11
Slide 12: Our strategy is to deliver a superior portfolio of services
STRATEGY Our strategy is to deliver a superior portfolio of services that enables our business to prosper and achieve sustainable growth in revenue and earnings performance and shareholder value. Strategic approach ► Deploy capital to targeted service offerings in support of our goal Always to enhan
Slide 13: Strategic growth areas are Intermodal, Logistics and Dedicated
STRATEGY Schneider’s strategic growth areas are Intermodal, Logistics and Dedicated. We have purposefully reshaped the portfolio since our April 2017 IPO to enable resiliency through cycles. Increased earnings contribution Increased Dedicated mix within Truckload from Intermodal and Logistics fleet
Slide 14: Use-of-cash strategy balances growth, returns and resilience
CAPITAL ALLOCATION Schneider’s use-of-cash strategy creates a balance between growth, shareholder returns and resilient financial performance. Maintain strong balance sheet Free cash flow Net Capex Total leverage* Fund operating and growth needs Fund acquisitive growth needs Maintain shareholder valu
Slide 15: Disciplined capital deployment and long-term shareholder value
CAPITAL ALLOCATION Committed to disciplined capital deployment and delivering long-term shareholder value. Share repurchase program Quarterly dividends As of Sept 30, 2024* *Does not include the $2.00 special dividend paid in Nov 2020 • Announced our inaugural $150.0 million, three-year share • Comm
Slide 16: Technology and Innovation
TECHNOLOGY AND INNOVATION We are driven to continually enhance our technology platforms and digital solutions to stay ahead of the needs of our customers, shippers and associates. • Our proprietary Schneider FreightPower® platform and marketplace drive growth into the enterprise by advancing and sim
Slide 17: Living out our core values in support of our vision
PEOPLE AND VALUES How we do it is as important: Living out our core values in support of our vision. SAFETY FIRST RESPECT INTEGRITY IN EXCELLENCE AND ALWAYS FOR ALL EVERY ACTION IN WHAT WE DO Schneider trucks are spec’d Schneider has provided nearly $11 Schneider named one of TIME Schneider surpasse
Slide 18: People and Values: 2023 Corporate Responsibility Report
LIVING 2023 Corporate Responsibility Report 9.7% 94 18% 13% 180 18 reduetion of reduction in battery electric of our drivers are percentage of associates active company third party and emissions per emissions at vehicles (BEVs) women, ahead of associate have military drivers who have customer awards
Slide 19: Secular trends that drive our strategy and future growth
SECULAR TRENDS Secular trends that drive our strategy and our future growth. Truckload Intermodal Logistics Customers value committed contract freight Increased focus on sustainability goals for Operating conditions are expected to in order to build reliability and resiliency all stakeholders. remai
Slide 20: Positioned for value creation and growth
INVEST WITH SNDR Positioned for value creation and growth at the forefront of Premier multimodal transportation platform the transportation industry. • Most diverse logistics and Technology leader transportation platform in North and innovator America. • Portfolio of services enables growth • Propri
Slide 21: Committed to maximizing shareholder value
CURRENT RESULTS AND OUTLOOK We continue to implement margin and capital restorative actions which are positively impacting every segment of our business and We are committed to maximizing positioning our multimodal platform of services for resiliency, shareholder value and advancing our growth, and
Slide 22: 3Q24 Enterprise Results
CURRENT RESULTS AND OUTLOOK 3Q24 Enterprise Results Operating Revenues excluding revenues fuel surcharge • Intermodal and Logistics contributed 52% to segment revenues and 50% to segment earnings in the quarter. • As of September 30, 2024, year to date free cash flow increased $154M compared to the
Slide 23: 3Q24 Truckload Results
CURRENT RESULTS AND OUTLOOK 3Q24 Truckload Results Revenues excluding Income from fuel surcharge operations • Revenues decreased 1% YoY due to lower Network volumes, partially offset by Dedicated growth. • Both Dedicated and Network revenue per truck per week increased YoY. • Earnings decreased 3% Y
Slide 24: 3Q24 Intermodal Results
CURRENT RESULTS AND OUTLOOK 3Q24 Intermodal Results Revenues excluding Income from fuel surcharge operations • Revenues increased 1% YoY primarily due to 3% volume growth. Revenue per order was essentially flat YoY. • Earnings increased 41% YoY. In addition to volume growth, internal cost actions, n
Slide 25: 3Q24 Logistics Results
CURRENT RESULTS AND OUTLOOK 3Q24 Logistics Results Revenues excluding Income from fuel surcharge operations • Revenues decreased 4% YoY primarily due to lower brokerage revenue per order. Brokerage volumes were down 1% YoY. • Earnings decreased 11% YoY primarily due to lower brokerage net revenue pe
Slide 26: Expect modest improvement in the fourth quarter
CURRENT RESULTS AND OUTLOOK We expect modest improvement in the fourth quarter over a year ago driven by continued stabilization across most of our businesses and improved seasonality, as we continue to position the enterprise for a more sustained market recovery. Based on our third quarter results
Slide 27: Disclaimer and Forward-Looking Statements
Special Note Regarding Forward-Looking Statements This presentation contains and, any commentary or discussion by management of the content of this presentation may Disclaimer and Forward- include “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995 (the “
Slide 28: Appendix
Appendix
Slide 29: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliation—Revenues Excluding Fuel Non-GAAP Reconciliation—Adjusted Income from Operations1 Surcharge1 ($M) 3Q23 3Q24 ($M) 3Q23 3Q24 Operating revenues $1,352 $1,316 Income from operations $47 $43 Less: fuel surcharge revenues 173 138 Acquisition-related costs3 1 - Revenues exc