Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q1 2021 Earnings Presentation
24 slides from Knight-swift Transportation's earnings presentation, Apr 21, 2021
Slide 1: KNX 1Q21 Earnings Presentation
Exhibit 99.2 KNX 1Q21 Earnings Presentation
Slide 2: Disclosure
2 Disclosure This presentation, including documents incorporated herein by reference, will 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. Such forward- looking stateme
Slide 3: KNX Overview
3 KNX Overview Trucking Q1 '21 TTM Q1 '21 Revenue (ex. fuel surcharge and intersegment transactions) $ 872.8 M $ 3,532.4 M Adjusted Operating Ratio 1 81.8 % 81.9 % • 13,130 irregular route tractors, 5,094 dedicated tractors, and 59,797 combined trailers • Dry Van, Refrigerated, Dedicated, Flatbed, D
Slide 4: First Quarter 2021 Comparative Results
4 First Quarter 2021 Comparative Results Adjustments • $11.7M in Q1 2021 and $11.5M in Q1 2020 of amortization expense from mergers and acquisitions • $1.2M in Q1 2021 of legal accruals • $0.9M in Q1 2020 of impairments • $2.3M in Q1 2020 for Covid-19 incremental costs 1 See GAAP to non-GAAP reconci
Slide 5: Operating Performance – Trucking
5 Operating Performance – Trucking • 6.3% growth in Revenue xFSC • 81.8% Adjusted Operating Ratio in Q1 2021 compared to 86.5% the previous year • 43.3% year-over-year improvement in Adjusted Operating Income • 11.3% Revenue xFSC growth and a 78.5% Adjusted Operating Ratio in Swift Truckload • 10.0%
Slide 6: Operating Performance – Logistics
6 Operating Performance – Logistics • 50.8% increase in Revenue • 103.7% increase in Operating income • 43.0% increase in Brokerage revenue per load • 5.4% increase in Brokerage load counts • Power only loads increased 56.2% from the prior year and now account for over 25% of total Q1 volume • 4,500
Slide 7: Operating Performance – Intermodal
7 Operating Performance – Intermodal • 13.1% increase in Revenue • $6.2M year-over-year improvement in Operating Income • 96.8% Operating Ratio during Q1 2021 compared with 102.9% the prior year • 10.2% year-over-year increase in average revenue per load • 2.6% increase in load counts from Q1 2020 I
Slide 8: Focus on Sustainability
8 Focus on Sustainability KNX improved CO2 emissions per mile by 3.6% in 2020, placing us on track to achieve established goals Knight-Swift Zero Emissions Battery Electric Vehicle
Slide 9: Market Outlook
9 Market Outlook FY 2021 • Over-the-road truckload demand is at unprecedented levels and expected to continue into 2022 • Capacity expansion will be limited as new tractor builds are constrained by parts availability • Inventory restocking and strong demand will continue to support a favorable rate
Slide 10: 2021 Guidance
10 2021 Guidance Increasing expected Adjusted EPS for the full year 2021 from $3.20 - $3.40 to $3.45 - $3.60 Guidance Assumptions • Over-the-road contract rate increases trending in the mid-teens • Miles per truck will be pressured by the driver shortage • Modest pressure on tractor count as sourcin
Slide 11: Appendix
Appendix t KKNIGHT J) Swirr TRANSPORTATION
Slide 12: Non-GAAP Reconciliation: Consolidated Operating Ratio
12 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter Ended March 31, 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,223,014 $ 1,124,798 Total operating expenses (1,060,755) (1,022,679) Operating income
Slide 13: Adjusted Net Income Attributable to Knight-Swift
13 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter Ended March 31, 2021 2020 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 129,790 $ 65,426 Adjusted for: Income ta
Slide 14: Adjusted EPS Reconciliation
14 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter Ended March 31, 2021 2020 GAAP: Earnings per diluted share $ 0.77 $ 0.38 Adjusted for: Income tax expense attributable to Knight-Swift 0.27 0.14 Income before i
Slide 15: Trucking Segment Reconciliation
15 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter Ended March 31, Trucking Segment 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 962,947 $ 919,061 Total operating expenses (804,464) (811,727)
Slide 16: Logistics Segment Reconciliation
16 Non-GAAP Reconciliation Quarter Ended March 31, Logistics Segment 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 118,887 $ 79,198 Total operating expenses (111,310) (75,479) Operating income $ 7,577 $ 3,719 Operating ratio 93.6 % 95.3 % Non-GAAP Presentation Total revenue $ 11
Slide 17: Intermodal Segment Reconciliation
17 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter Ended March 31, Intermodal Segment 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 107,066 $ 94,731 Total operating expenses (103,609) (97,468)
Slide 18: Trucking Segment Trailing Twelve Months
18 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio — Trailing Twelve Months 1 Trucking Segment Three Months Ended March 31, 2021 Year Ended December 31, 2020 Three Months Ended March 31, 2020 TTM March 31, 2021 GAAP Presenta
Slide 19: Logistics Segment Trailing Twelve Months
19 Non-GAAP Reconciliation Logistics Segment Three Months Ended March 31, 2021 Year Ended December 31, 2020 Three Months Ended March 31, 2020 TTM March 31, 2021 GAAP Presentation (Dollars in thousands) Total revenue $ 118,887 $ 375,841 $ 79,198 $ 415,530 Total operating expenses (111,310) (355,596)
Slide 20: Intermodal Segment Trailing Twelve Months
20 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio — Trailing Twelve Months 1 Intermodal Segment Three Months Ended March 31, 2021 Year Ended December 31, 2020 Three Months Ended March 31, 2020 TTM March 31, 2021 GAAP Presen
Slide 21: Return on Net Tangible Assets
21 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 March 31, 2021 2020 (Dollars in thousands) Total Assets $ 8,519,475 $ 8,288,323 Adjusted for: Intangible assets, net (1,393,346) (1,423,666) Goodwill (2,958,709) (2,923,382) Tangible Assets $ 4,167,420 $
Slide 22: Adjusted Income Before Income Taxes and Adjusted Net Income
22 Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income 1 Year-to-Date March 31, 2021 Year-to-Date December 31, 2020 Year-to-Date March 31, 2020 TTM March 31, 2021 (Dollars in thousands) GAAP: Net income attributable to Knight-Swift
Slide 23: Net Leverage and Leverage Ratio
23 Non-GAAP Reconciliation (Unaudited): Net Leverage and Leverage Ratio 1 2 Non-GAAP Reconciliation March 31, 2021 (Dollars in thousands) Term loan $ 300,000 Revolving line of credit 115,000 Accounts receivable securitization 199,000 Other secured debt and finance leases 212,376 Total face value of
Slide 24: EBITDA and Adjusted EBITDA Reconciliation
24 1 Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP EBITDA and Adjusted EBITDA. 2 Refer to Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income – footnote 2. 3 "Other non-cash gains
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