Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q4 2023 Earnings Presentation
21 slides from Knight-swift Transportation's earnings presentation, Jan 24, 2024
Slide 1: Fourth Quarter 2023 Earnings
Fourth Quarter 2023 Earnings
Slide 2: Disclosure
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 statements
Slide 3: KNX Q4 2023 Comparative Results
KNX Q4 2023 Comparative Results Third-Party Insurance $71.7M loss in 4Q23 offsets earnings of core business Total Revenue Revenue xFSC Operating Income Adj. Operating Inc. 1 Third-Party Insurance Business Impact 10.8% 11.6% (91.0%) (78.6%) • $71.7M operating loss in 4Q23 203 219 1,692 ◦ Negatively i
Slide 4: Segment Overview
Segment Overview LTL strength continues while truckload softness persists Truckload 2 Less-than-Truckload Q4 2023 Revenue Diversification Q4 2023 FY 2023 Q4 2023 FY 2023 Revenue xFSC 3 $ 1,155.7M $ 4,031.1M Revenue xFSC $ 232.1M $ 914.6M Adjusted Op Income 1 $ 69.9M $ 314.5M Adjusted Op Income 1 $ 3
Slide 5: Operating Performance - Truckload
Operating Performance - Truckload Modest 4Q seasonality, December softer than anticipated Truckload Financial Metrics • 93.9% Adjusted Operating Ratio1 in Q4 2023 compared to 82.7% the previous year Q4 2023 Q4 2022 Change • U.S. Xpress was able to achieve positive Adjusted Operating (Dollars in thou
Slide 6: Operating Performance - LTL
Operating Performance - LTL Volume growth continues, investing for future expansion LTL Financial Metrics • 85.5% Adjusted Operating Ratio1 in Q4 2023 Q4 2023 Q4 2022 Change • Revenue growth 13.8% and Operating Income growth (Dollars in thousands) 16.3% Revenue xFSC $232,077 $203,996 13.8 % • Revenu
Slide 7: Operating Performance - Logistics
Operating Performance - Logistics Remaining nimble in a challenging environment, U.S. Xpress logistics closing the gap Logistics Financial Metrics • 93.1% Adjusted Operating Ratio1 during the quarter Q4 2023 Q4 2022 Change • 17.8% Gross margin, 430 bps decrease from prior year (Dollars in thousands)
Slide 8: Operating Performance - Intermodal
Operating Performance - Intermodal Focused on load count growth and improving efficiency of our assets Intermodal Financial Metrics • 104.7% operating ratio during Q4 2023 compared with 94.7% the prior year Q4 2023 Q4 2022 Change (Dollars in thousands) • 19.7% year-over-year decrease in average reve
Slide 9: Operating Performance - All Other Segments
Operating Performance - All Other Segments Operating loss driven by Insurance business, exit underway Non-Reportable Financial Metrics Executing Exit of Third Party Insurance Business Q4 2023 Q4 2022 Change • $71.7M operating loss (Dollars in thousands) • 4Q23 Management decision to exit business Re
Slide 10: U.S. Xpress - Business Update
U.S. Xpress - Business Update Achieved positive Adjusted Operating Income in Q4, 99.0% Adjusted Operating Ratio Measurable and meaningful progress continues • Rate per mile up mid-single digits sequentially ◦ Eliminated brokers ◦ Improved freight network ◦ Expanding customer diversity • Increased fo
Slide 11: Market Outlook First Half 2024
Market Outlook First Half 2024 • LTL demand remains strong • LTL improvement in revenue (excluding fuel) per hundredweight year-over-year • Truckload - softness anticipated to continue into 1Q 2024, modest seasonality in 2Q 2024 • Truckload - contract rate sequentially stable • Cost inflation contin
Slide 12: First Half 2024 Guidance
First Half 2024 Guidance Expected Adjusted EPS to be in the range of: Q1 $0.37 to $0.41 Q2 $0.53 to $0.57 Refer to earnings release for guidance assumptions, to view the earnings release, please visit https://investor.knight-swift.com/, "Fourth Quarter 2023 Earnings." 12
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,931,919 $ 1,743,623 $ 7,141,766 $ 7,428,582 Total operating expenses (1,9
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio (Unaudited) 1 Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating ratio to consolidated non-GAAP Adjusted Operating Ratio. 2 The reported results do not include the results of o
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, 2023 2022 2023 2022 (Dollars in thousands, except per share data) GAAP: Net (loss) income attributable to Knight-Swift $ (10,655) $ 148,701 $
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, 2023 2022 2023 2022 GAAP: (Loss) earnings per diluted share $ (0.07) $ 0.92 $ 1.34 $ 4.73 Adjusted for: Income tax expense attributable to Kn
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, 2 Truckload Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,351,970 $ 1,101,040 $ 4,698,655 $ 4,531,115 Tot
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, LTL Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 275,877 $ 251,967 $ 1,082,454 $ 1,069,554 Total operating
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, Logistics Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 164,535 $ 179,333 $ 582,250 $ 920,707 Total operati
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended December 31, Year-to-Date December 31, Intermodal Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 94,431 $ 112,916 $ 410,549 $ 485,786 Total operati
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