Knight-Swift Transportation Holdings Inc. · NYSE:KNX
Knight-Swift Transportation — Q4 2020 Earnings Presentation
24 slides from Knight-Swift Transportation's earnings presentation, 2021
Slide 1: KNX 4Q20 Earnings Presentation
Exhibit 99.2 KNX 4Q20 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: Disclosure
Disclosure On September 8, 2017, pursuant to the Agreement and Plan of Merger, dated as of April 9, 2017, by Swift Transportation Company (“Swift”), Bishop Merger Sub, Inc., a direct wholly owned subsidiary of Swift, (“Merger Sub”), and Knight Transportation, Inc. (“Knight”), Merger Sub merged with
Slide 4: KNX Overview
KNX Overview Q4 '20 FY 2020 Revenue (ex. fuel surcharge and intersegment transactions) $ 940.9M $ 3,480.6M Trucking Adjusted Operating Ratio 1 79.3 % 83.0 % • 13,374 irregular route tractors, 5,099 dedicated tractors, and 57,644 combined trailers • Dry Van, Refrigerated, Dedicated, Flatbed, Drayage,
Slide 5: Fourth Quarter 2020 Comparative Results
Fourth Quarter 2020 Comparative Results Knight-Swift Consolidated Q4 '20 Q4 '19 Change (Dollars in thousands, except per share data) Total revenue $ 1,277,961 $ 1,196,810 6.8 % Revenue xFSC $ 1,207,202 $ 1,085,412 11.2 % Operating income $ 194,691 $ 99,593 95.5 % Adj. Operating Income 1 $ 216,975 $
Slide 6: Operating Performance – Trucking
Operating Performance – Trucking Trucking Financial Metrics • 9.2% growth in Revenue xFSC Q4 '20 Q4 '19 Change • 79.3% Adjusted Operating Ratio in (Dollars in thousands) Q4 2020 compared to 86.2% the Revenue xFSC $940,912 $861,428 9.2 % previous year Operating income $194,609 $118,393 64.4 % • 63.9%
Slide 7: Parity: Knight Trucking and Swift Truckload Difference
Adjusted Operating Ratio Parity Rolling 4 Qtr Difference in Knight Trucking and Swift Truckload Adjusted Operating Ratios 1 10.0% % Difference = Swift Adj OR - Knight Adj OR 8.0% 6.0% 4.0% 2.0% —% (2.0)% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3
Slide 8: Operating Performance – Logistics
Operating Performance – Logistics • 34.8% increase in Revenue Logistics Financial Metrics • 87.5% increase in Operating income Q4 '20 Q4 '19 Change (Dollars in thousands) • 91.2% Adjusted Operating Ratio Revenue ex intersegment $125,039 $92,757 34.8 % during Q4 2020 compared to 93.0% during the prio
Slide 9: Digital Freight Platform
Digital Freight Platform • 3rd party carrier platform went live Spring of 2020 • 20% of Q4 2020 Logistics volume executed using Select • Over 5,000 carriers were digitally matched with loads in Q4 2020 • Provides shippers with the ability to fully leverage available capacity across our asset and ass
Slide 10: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics • 2.8% increase in Revenue Q4 '20 Q4 '19 Change • 94.8% Operating Ratio during (Dollars in thousands) Q4 2020 compared with 99.5% Revenue ex intersegment $114,969 $111,816 2.8 % the prior year Operating income $6,019 $600 903.2 % • 2.4%
Slide 11: Focus on Sustainability
Focus on Sustainability Short-Term Goal (Intensity Based) Long-Term Goal (Intensity Based) " KKNIGHT JU) swirr I TRANSPORTATION
Slide 12: Market Outlook FY 2021
Market Outlook FY 2021 • We expect the strong freight conditions to continue into 2021 • Inventory restocking and strong demand will support a favorable environment into 2021 • Low double digit contract rate increases in 2021 • The challenge of sourcing and retaining drivers will continue and lead t
Slide 13: 2021 Guidance
2021 Guidance Expected Adjusted EPS for the full year 2021 of $3.20 - $3.40 Guidance Assumptions • Contract rate improvements in the low double digits in 2021 • Miles per truck will be flat to slightly negative year-over-year • Stable tractor count • Double digit revenue growth in Logistics • Double
Slide 14: Appendix
Appendix i KKNIGHT UO) Swirr TRANSPORTATION
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date December 31, Year-to-Date December 31, 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 1,277,961 $ 1,196,810 $ 4,673,863 $ 4,843,950 Tota
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 1 Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating ratio to consolidated non-GAAP Adjusted Operating Ratio. 2 "Amortization of intangib
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date December 31, Year-to-Date December 31, 2020 2019 2020 2019 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 14
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter-to-Date December 31, Year-to-Date December 31, 2020 2019 2020 2019 GAAP: Earnings per diluted share $ 0.84 $ 0.39 $ 2.40 $ 1.80 Adjusted for: Income tax expense at
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date December 31, Year-to-Date December 31, Trucking Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 1,011,719 $ 972,826 $ 3,7
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date December 31, Year-to-Date December 31, Logistics Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 127,521 $ 94,894 $ 375,8
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter-to-Date December 31, Year-to-Date December 31, Intermodal Segment 2020 2019 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 115,052 $ 111,967 $ 391
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 December 31, 2020 2019 (Dollars in thousands) Total Assets $8,468,002 $ 8,281,732 Adjusted for: Intangible assets, net (1,389,245) (1,379,459) Goodwill (2,922,964) (2,918,992) Tangible Assets $4,155,793 $ 3,
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Net Leverage and Leverage Ratio 1 2 December 31, 2020 (Dollars in thousands) Term loan $ 300,000 Revolving line of credit 210,000 Accounts receivable securitization 214,000 Other secured debt and finance leases 190,826 Total face value of
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA 1 December 31, 2020 (Dollars in thousands) GAAP: Net income $ 410,002 Adjusted for: Depreciation and amortization of property and equipment 460,7
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