Slide 1: 4Q 2020 and Full Year 2020 Earnings Presentation
4Q 2020 AND FULL YEAR 2020 EARNINGS PRESENTATION February 4, 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, 4Q 2020 and Full Year 2020 Highlights
WERNER OVERVIEW, 4Q 2020 AND FULL YEAR 2020 HIGHLIGHTS Derek Leathers Vice Chairman, President and Chief Executive Officer
Slide 4: Werner Overview
WERNER OVERVIEW Premium Truckload Transportation & Logistics Services Provider Omaha, NE $2.7B 4,945 2,885 12,732 0.9% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 2020 Revenues by Segment 2020 Revenues by Vertical 2020 Revenues by Customer 2% Top 50
Slide 5: 4Q 2020 and Full Year 2020 Highlights
4Q 2020 AND FULL YEAR 2020 HIGHLIGHTS 4Q 2020 Full Year 2020 Revenues at $620M 4% to $2.4B GAAP EPS 26% to $0.88 2% to $2.44 Financial Highlights Adjusted EPS 33% to $0.89 8% to $2.59 Adjusted operating income 30% to $82.7M 7% to $241.9M Adjusted TTS operating margin1 420 bps to 18.2% 170 bps to 14.
Slide 6: Total Company and Segment Financial Results
TOTAL COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income ($M) Adjusted EPS and Operating Margin $0.89 $80 0.0 $79 0.0 20. 0% $78 0.0 $77 0.0 $82.7 $76 0.0 $75 0.0 $90 .0 $74 0.0 $73 0.0 $72 0.0 $71 0.0 18. 0% $621.8 $620.3 $70 0.0 $0.69 $69 0.0 $68 0.0 $590.2 $0.67 $67 0.0 $80 .
Slide 8: Full Year Financial Performance
FULL YEAR FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted Operating Income ($M) Adjusted EPS and Operating Margin $2.59 20. 0% $27 0.0 $3, 000 $2, 990 $2, 980 $2, 970 $2, 960 $26 0.0 $241.9 $2.39 $2, 950 $2.38 $2, 940 $228.6 $2, 930 $2, 920 $2, 910 $225.9 $2, 900 $2, 890 $25 0.0 $2, 880 $2, 870 $
Slide 9: Truckload Transportation Services (TTS) Quarterly Results
TRUCKLOAD TRANSPORTATION SERVICES (TTS) QUARTERLY RESULTS 4Q19 3Q20 4Q20 4Q ∆ YoY Revenues ($M) $486.6 $458.3 $475.0 (2)% Adjusted Op. Income ($M) $60.4 $65.2 $79.9 32% Adjusted Op. Margin1 14.0% 15.5% 18.2% 420 bps Adjusted OR1 86.0% 84.5% 81.8% (420) bps YoY Commentary (4Q20 vs. 4Q19) ▪ Revenues r
Slide 10: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 $4,075 $1,2 00 $3,827 $4,012 $3,888 $973 4,661 4,693 4,872 $1,0 00 $914 4,593 $80 0 $60 0 $258 $40 0 $237 $20 0 $- 2019 2020 4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020 4Q19 4Q20 One-Way Trucklo
Slide 11: Werner Logistics Quarterly Results
WERNER LOGISTICS QUARTERLY RESULTS 4Q19 3Q20 4Q20 4Q ∆ YoY Revenues ($M) $120.1 $117.4 $130.1 8% Gross Margin 15.3% 10.8% 12.5% (280) bps Operating Income $3.4 $(0.9) $2.6 (22)% ($M) Operating Margin 2.8% (0.7)% 2.0% (80) bps YoY Commentary (4Q20 vs. 4Q19) ▪ Truckload Logistics revenues (62% of tota
Slide 12: Strong FCF Generation; Expected to Continue
STRONG FCF GENERATION; EXPECTED TO CONTINUE COMMENTARY ($M) $446 $430 $427 ▪ FCF generation of $180M in 2020 $418 ▪ 2021 Net CapEx expected to be in the $349 range of $275M to $300M; over the $310 long-term, targeting Net CapEx at 11- $283 $284 13% of annual revenues $266 $180 ▪ Investment focused o
Slide 13: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Priorities Capital Allocation History 2018-2020 $1.4B Continual and Consistent Investment in the Five T’s Share Buybacks ▪ Reinvestments in new, feature-rich trucks and trailers, including the $171M Dividends latest safety technology, that extend sustainable competitiv
Slide 14: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Vice Chairman, President and Chief Executive Officer
Slide 15: 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 2020 RESULTS ▪ Maintain the age of our industry-leading modern ▪ Delivered customer satisfaction with new truck fleet, which includes state-of-the-art safety and reliable fleet: 100%
Slide 16: Our Formalized Approach to Sustainability
OUR FORMALIZED APPROACH TO SUSTAINABILITY Environmental Social Governance Industry leader in Strong Foundation of Robust Corporate Environmental, Health Community and Stakeholder Governance Grounded in and Safety Impact Engagement Ethics, Risk Management and Best Practices Building on our Foundation
Slide 17: 2020 and 2021 Guidance Metrics and Assumptions
2020 AND 2021 GUIDANCE METRICS AND ASSUMPTIONS 4Q20 4Q20 2021 ANNUAL 2020 AND 2021 GUIDANCE ACTUAL GUIDANCE 2021 GUIDANCE (AS OF 10/28/20) (AS OF 12/31/20) (AS OF 2/4/21) COMMENTARY Targeted growth with strong performing Dedicated fleet; Augmenting TTS TTS Truck Growth capacity with a growing power-
Slide 18: Q&A
Q&A
Slide 19: Invest With Us
INVEST WITH US Consistent and flexible execution of 5 T’s + S strategy during COVID ✓ enabled Werner to achieve record operating income and adjusted earnings per share in 2020 Strong freight demand expected in 2021; balanced revenue ✓ portfolio and consumer-centric freight base with winning customer
Slide 20: Appendix
APPENDIX
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Operating revenues $ 620,302 $ 621,787 $ 2,372,178 $ 2,463,701 Operating expenses 538,851 556,133 2,144,740 2,238,229 Operating income 81,4
Slide 22: For More Information, Visit Werner.com
FOR MORE INFORMATION, VISIT WERNER.COM