Slide 1: 3Q 2019 Earnings Presentation
3Q 2019 EARNINGS PRESENTATION October 24, 2019
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, 3Q 2019 Highlights
WERNER OVERVIEW, 3Q 2019 HIGHLIGHTS Derek Leathers President and Chief Executive Officer
Slide 4: Werner Overview
WERNER OVERVIEW Premium Truckload Transportation & Logistics Services Provider 2018 Revenues by Segment Headquarters Omaha, NE 2% Truckload Transportation Services (TTS)* 21% Market Cap1 $2.6B Werner Logistics Schools/Other 77% Dedicated 4,620 Fleet Size1 One-Way 2018 Revenues by Vertical 2018 Reven
Slide 5: 3Q 2019 and YTD 2019 Highlights
3Q 2019 AND YTD 2019 HIGHLIGHTS Revenues decreased 2% to $618M 3Q19 GAAP EPS decreased 15% to $0.56 Financial Adj. EPS decreased 11% to $0.57 Highlights Adj. operating income decreased 12% to $54.2M Adj. operating margin decreased ~90 bps to 8.8% Revenues increased 2% to $1,842M GAAP E
Slide 6: Total Company and Segment Financial Results
TOTAL COMPANY AND SEGMENT FINANCIAL RESULTS John Steele Executive Vice President, Treasurer and Chief Financial Officer
Slide 7: 3Q 2019 Financial Performance
3Q 2019 FINANCIAL PERFORMANCE ($M) Total Revenues Adjusted Operating Income Adjusted EPS and Operating Margin $80 0 20. 0% $79 0 $78 0 $77 0 $76 0 $61.3 $75 0 $70 .0 $74 0 $630 $73 0 $72 0 18. 0% $618 $71 0 $70 0 $69 0 $68 0 $54.2 $0.64 $67 0 $66 0 $65 0 $64 0 $60 .0 16. 0% $63 0 $62 0 $61 0 $0.57 $
Slide 8: Truckload Transportation Services (TTS) Results
TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 3Q18 3Q19 Change YoY Revenues ($M) $484.8 $480.4 (1%) TTS RPTPW1 (1.5%) Dedicated RPTPW +4.1% Adj. Op. Income ($M) $56.8 $49.7 (13%) One-Way TL RPTPW1 (7.6%), including (5.6%) lower Adj. Op. Margin 11.7% 10.3% (140) bps One-Way TL RPTM1 and (2.0%
Slide 9: TTS 3Q Fleet Metrics
TTS 2 3Q FLEET METRICS Dedicated Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $232 4,401 4,592 $214 $25 0 $3,734 $3,888 $20 0 $15 0 $10 0 $50 $- 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 One-Way Truckload Trucking Revenues1 ($M) Average Trucks Revenues / Truck / Week1 $25 0 $4,523 $
Slide 10: Werner Logistics Results
WERNER LOGISTICS RESULTS 3Q18 3Q19 Change YoY Revenues ($M) $129.4 $121.3 (6%) Intermodal had significant volume and small price declines Truckload Logistics (transactional and contractual Gross Margin 15.9% 15.2% (70) bps brokerage) had a double-digit volume increase and a double-digit price de
Slide 11: Business Update and Financial Outlook
BUSINESS UPDATE AND FINANCIAL OUTLOOK Derek Leathers President and Chief Executive Officer
Slide 12: Five T's Strategy Execution
FIVE T’S STRATEGY EXECUTION 01 Tractors Maintained truck age at 1.8 years; keep at or near this level going forward 02 Trailers Lowered trailer age to 4.0 years, lowest level since 2000 03 Talent Utilizing performance pay and metrics to drive performance and attract high performing talent 04 T
Slide 13: Werner Dedicated Fleet Network
WERNER DEDICATED FLEET NETWORK Network well-aligned with our terminals and driving schools Established in 1991; one of the nation’s top 5 dedicated fleets Combined with our proprietary information systems to optimize freight solutions 4,620 trucks, more than 150 fleets Over 90% of the U.S. p
Slide 14: Werner Dedicated Fleet Network
WERNER DEDICATED FLEET NETWORK Revenues by Vertical YTD 2019 99%+ on-time, every time, safety-focused service 7% Discount Retail (including dollar stores) 62% retail, with discount retail emphasis 14% Home Improvement Retail All-miles pricing 41% Other Retail Shorter-haul shipments 17% Food
Slide 15: Full Year 2019 Outlook
FULL YEAR 2019 OUTLOOK REAFFIRMED GUIDANCE VALUES COMMENTS TTS Truck Growth from Low end of range; continue to expect no truck 3% to 5% truck growth Year-End 2018 growth in 4Q19 Gains on Sales of Equipment $18M to $20M Low end of range Net Capital Expenditures $275M to $300M Low end of range Current
Slide 16: Q&A
WERNE WE KEEP AMERICA MOViNnGe Q&A
Slide 17: Summary – Invest With Us
SUMMARY – INVEST WITH US We have Heavy capex New fleet, Long-term We are a balanced our period behind us; updated terminal margin and stronger, better revenue portfolio Current capex network, return positioned toward more normalized; Free enhanced fleet expectations company than we consistent cash f
Slide 18: Appendix
WERNE WE KEEP AMERICA MOViNnGe APPENDIX
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Operating revenues $ 618,264 $ 629,735 $ 1,841,914 $ 1,811,549 Operating expenses 564,907 566,349 1,682,096 1,662,265 Adjusted for
Slide 20: For more information visit Werner.com
WERNE WE KEEP AMERICA MOViNnGe For more information visit Werner.com | fp ¥ fing S|