Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q2 2021 Earnings Presentation
23 slides from Knight-swift Transportation's earnings presentation, Jul 21, 2021
Slide 1: KNX 2Q21 Earnings Presentation
KNX 2Q21 Earnings Presentation
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 statement
Slide 3: KNX Overview
KNX Overview Q2 '21 YTD 2021 Revenue (ex. fuel surcharge and intersegment transactions) $ 882.6M $ 1,755.4M Trucking Adjusted Operating Ratio 1 80.9 % 81.3 % • 12,967 irregular route tractors, 5,067 dedicated tractors, and 60,858 combined trailers • Dry Van, Refrigerated, Dedicated, Flatbed, Drayage
Slide 4: Investment in Growth
Investment in Growth • Abilene - Mar 2018 - Expands full truckload services • NTTS - Jul 2019 - Provides academy accreditation • Hayes - Jan 2020 - Adds footprint into warehousing space • Eleos - Feb 2021 - Provides modern in-cab technology for 3rd party carriers • UTXL - Jun 2021 - Adds expedited b
Slide 5: Second Quarter 2021 Comparative Results
Second Quarter 2021 Comparative Results Knight-Swift Consolidated Q2 '21 Q2 '20 Change (Dollars in thousands, except per share data) Total revenue $ 1,315,701 $ 1,060,698 24.0 % Revenue xFSC $ 1,212,872 $ 997,597 21.6 % Operating income $ 191,115 $ 102,167 87.1 % Adj. Operating Income 1 $ 204,637 $
Slide 6: Operating Performance – Trucking
Operating Performance – Trucking Trucking Financial Metrics Q2 '21 Q2 '20 Change • 42.8% year-over-year improvement (Dollars in thousands) in Adjusted Operating Income Revenue xFSC $882,560 $816,033 8.2 % Operating income $168,457 $107,788 56.3 % • 80.9% Adjusted Operating Ratio in Q2 2021 compared
Slide 7: Operating Performance – Logistics
Operating Performance – Logistics Logistics Financial Metrics • 141.8% increase in Revenue (120.6% Q2 '21 Q2 '20 Change (Dollars in thousands) excluding the UTXL acquisition) Revenue ex intersegment $162,167 $67,066 141.8 % • 372.5% increase in Operating income Operating income $14,356 $3,038 372.5
Slide 8: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics Q2 '21 Q2 '20 Change (Dollars in thousands) • 39.4% increase in Revenue Revenue ex intersegment $115,294 $82,699 39.4 % • $10.3M year-over-year Operating income (loss) $5,812 $(4,475) improvement in Operating Income Adjusted Operating I
Slide 9: Operating Performance – Non-Reportable
Operating Performance – Non-Reportable • 47.5% increase in Revenue driven by additional equipment Non-Reportable Financial Metrics leasing, warehousing activities, and expanded services Q2 '21 Q2 '20 Change provided to 3rd party carriers (Dollars in thousands) • $6.7M year-over-year Revenue $66,795
Slide 10: Acquisition of AAA Cooper (ACT)
Acquisition of AAA Cooper (ACT) • ACT acquired on July 5, 2021 • #15 on Transport Topics list of 2021 Top LTL carriers • Operations include less-than-truckload, dedicated, and other services • Approximately 70 Service Centers, with a terminal door count of over 3,400 • Nearly 3,000 Tractors and 7,00
Slide 11: Market Outlook 2H21 and Beyond
Market Outlook 2H21 and Beyond • We expect the unprecedented demand for over-the-road truckload capacity to continue throughout 2022 • Capacity expansion continues to be limited as new tractor builds are constrained by parts availability • Sourcing and retaining drivers will remain challenging and l
Slide 12: 2021 Guidance
2021 Guidance Increasing expected Adjusted EPS for the full year 2021 to $3.90 - $4.05 from $3.45 - $3.60 previously Guidance Assumptions • Over-the-road contract rate increases trending in the mid-teens • Recent acquisitions expected to add $0.16 to EPS in the second half of 2021 • Miles per truck
Slide 13: Appendix
Appendix 3 KKKNIGHT GY) SWIFT’ TRANSPORTATION
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 1,315,701 $ 1,060,698 $ 2,538,715 $ 2,185,496 Total operat
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date June 30, Year-to-Date June 30, 2021 2020 2021 2020 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 152,804 $
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date June 30, Year-to-Date June 30, 2021 2020 2021 2020 GAAP: Earnings per diluted share $ 0.92 $ 0.47 $ 1.69 $ 0.85 Adjusted for: Income tax expense attributab
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Trucking Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 985,858 $ 879,369 $ 1,948,805 $ 1
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Logistics Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 166,737 $ 70,104 $ 285,624 $ 149
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date June 30, Year-to-Date June 30, Intermodal Segment 2021 2020 2021 2020 GAAP Presentation (Dollars in thousands) Total revenue $ 115,378 $ 82,820 $ 222,444 $ 17
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 June 30, 2021 2020 (Dollars in thousands) Total Assets $8,682,459 $ 8,279,028 Adjusted for: Intangible assets, net (1,403,483) (1,412,192) Goodwill (2,971,023) (2,922,970) Tangible Assets $4,307,953 $ 3,943,
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income 1 Year-to-Date Year-to-Date Year-to-Date TTM December 31, June 30, 2021 June 30, 2020 June 30, 2021 2020 (Dollars in thousands) GAAP: Net income attributable to Knight-Swift $ 282
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Net Leverage and Leverage Ratio 1 2 June 30, 2021 (Dollars in thousands) Term loan $ 300,000 Revolving line of credit 55,000 Accounts receivable securitization 279,000 Other secured debt and finance leases 238,067 Total face value of debt
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA 1 Year-to-Date Year-to-Date Year-to-Date TTM June 30, 2021 December 31, 2020 June 30, 2020 June 30, 2021 (Dollars in thousands) GAAP: Net income
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