Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Swift Transportation — Stifel Nicolaus Transportation and Logistics Conference 2014
34 slides from Knight-swift Transportation's conference presentation, Feb 11, 2014
Slide 1: Transportation Conferences
Transportation Conferences February 11-12, 2014
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer This presentation, including documents which are incorporated by reference and accompanying comments, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but a
Slide 3: Swift & the Transportation Industry
SWIFT & THE TRANSPORTATION INDUSTRY Swift Confidential and Proprietary 3
Slide 4: Swift Transportation at a Glance
Swift Transportation at a Glance • Multi-faceted $4.1 billion transportation solution provider in a fragmented industry prime for consolidation • Broad and unique suite of service and equipment offerings when combined with our expertise can simplify our customers complex logistics needs • Capacity s
Slide 5: U.S. Freight Transportation Market
U.S. Freight Transportation Market 1 2012 - $795B 2024 - $1,301B Rail Air 4.0% Pipeline Rail Pipeline 4.3% Private Water Air 3.5% Intermodal 5.2% Intermodal Private Truckload 1.5% 2.5% 1.8% Truckload Water 1.4% 33.4% Rail 36.7% Rail Carload Carload 6.7% 7.2% LTL 8.0% LTL 6.5% 4.2% CAGR For-Hire For-
Slide 6: Extensive Transportation Service Offerings
Extensive Transportation Service Offerings • Demonstrated ability to provide total transportation solutions with a comprehensive suite of services and equipment offerings • 100% of Swift’s Top 20 customers and 75% of top 50 utilize multiple service offerings Transportation Solutions Equipment Select
Slide 7: Nationwide Terminal Network
Nationwide Terminal Network Nationwide terminal network allows us to be close to our customers on a Swift Confidential and Proprietary regional basis and our driver’s homes 7
Slide 8: Our Purpose
Our Purpose SM Driving value through Best in Class transportation solutions Swift Confidential and Proprietary 8
Slide 9: Swift's Long-Term Financial Goals
Swift’s Long-Term Financial Goals* Increase our RONA by 1% annual CAGR for each of the next 5 years Targeting EPS Growth Reduce our leverage of 20% for 2012 and ratio to roughly 1.5X 15% CAGR from by 2017 2013-2017 Creating Shareholder Value *Goals shared in our May 2012 Investor/Analyst Day Committ
Slide 10: The Three Pillars of Value Creation
The Three Pillars of Value Creation Profitable Revenue Growth Improved Asset Utilization Continuous Improvement (Cost Control & Profitability) Strengthen and grow core Maximize use of drivers Four Disciplines of Execution customer relationships by cross available hours (Plus 1) (4DX) selling suite o
Slide 11: 2014 Strategic Focus Teams
2014 Strategic Focus Teams Revenue Growth Cost Control Strategic Focus Team Strategic Focus Teams Driver Success Strategic Focus Teams Utilization Strategic Focus Team Our SFT’s are the levers that will propel our flywheel Swift Confidential and Proprietary 11
Slide 12: Total Revenue and Operating Income
Total Revenue and Operating Income Total Revenue (1) Adjusted Operating Income (5) Note: Acquisitions recorded with pooling of interests or similar accounting treatment reflected for full year in year of acquisition; MS Carriers - 2001, IEL – 2007, and Central Refrigerated – 2013 (1) Operating Incom
Slide 13: Adjusted EPS Growth Targets and Performance
Adjusted EPS Growth Targets and Performance (1) (1) (2) (1) 2011 & 2012 represent Swift only (2) 2014 AOP Swift and CRS combined Exceeding our goals Swift Confidential and Proprietary 13
Slide 14: Leverage Ratio Targets and Performance
Leverage Ratio Targets and Performance (1) (1) (2) (1) 2011 & 2012 represent Swift only (2) 2014 AOP Swift and CRS combined Delivering on commitments Swift Confidential and Proprietary 14
Slide 15: Swift's Integrated Flywheel
Swift’s Integrated Flywheel Delivering a better life by creating value through revenue growth, cost Swift Confidential and Proprietary control, process improvement and utilization 15
Slide 16: Financial Summary
FINANCIAL SUMMARY Swift Confidential and Proprietary 16
Slide 17: Full Year 2013 Consolidated Metrics
Full Year 2013 Consolidated Metrics Continuous Improvement Note: Historical results restated to include Central Refrigerated Swift Confidential and Proprietary 17
Slide 18: Full Year 2013 Truckload Segment Metrics
Full Year 2013 Truckload Segment Metrics Productivity improvements driving results Swift Confidential and Proprietary 18
Slide 19: Full Year 2013 Dedicated Segment Metrics
Full Year 2013 Dedicated Segment Metrics Tremendous growth potential at attractive margins Swift Confidential and Proprietary 19
Slide 20: Full Year 2013 Central Refrigerated Metrics
Full Year 2013 Central Refrigerated Metrics Synergistic opportunities for growth and margin improvements Swift Confidential and Proprietary 20
Slide 21: Full Year 2013 Intermodal Segment Metrics
Full Year 2013 Intermodal Segment Metrics Poised for growth and margin expansion with renewed focus Swift Confidential and Proprietary 21
Slide 22: Operational Fleet as of December 2013
Operational Fleet as of December 2013 Model Year Company & IEL Company & IEL Sleeper Fleet Total Fleet 2014 4,130 4,386 2013 3,636 3,776 2012 3,149 3,467 2011 1,127 1,146 2010 522 530 2009 636 1,084 2008 & Older 210 550 Total 13,410 14,939 Average Age 1.8 2.1 Young and healthy fleet Swift Confidenti
Slide 23: Net Debt and Leverage Ratio
Net Debt and Leverage Ratio CRS Acquisition *2008 – 2012 data does not include Central Refrigerated Continuing to make progress on our commitment to reduce leverage Swift Confidential and Proprietary 23
Slide 24: Debt Summary
Debt Summary Facility Face Value Maturity Funded Rate A/R Securitization ($325MM) $264,000 Jul-16 CP/L+95 Revolver ($400MM) 17,000 Sep-16 L+325 Term Loan B-1 229,000 Dec-16 L+275 L+300 (100bps Term Loan B-2 410,000 Dec-17 floor) Other Debt 17,480 Various Capital Leases 171,516 Various 2nd Lien Notes
Slide 25: Swift's Long-Term Financial Goals
Swift’s Long-Term Financial Goals* Increase our RONA by 1% annual CAGR for each of the next 5 years Targeting EPS Growth Reduce our leverage of 20% for 2012 and ratio to roughly 1.5X 15% CAGR from by 2017 2013-2017 Creating Shareholder Value *Goals shared in our May 2012 Investor/Analyst Day Committ
Slide 26: Questions?
QUESTIONS? Swift Confidential and Proprietary 26
Slide 27: Appendix
APPENDIX Swift Confidential and Proprietary 27
Slide 28: 2014 and Beyond – The Vision
2014 and Beyond – The Vision The Evolutionary The Growth Period The Transformation The Results Period Period 1991-2006 Period 2012-2017 1966-1990 2007-2011 (and beyond) • Founded • Privatization - Debt • Profitable Revenue • 1990 IPO • Flatbed • Recession Growth • 20%+ Revenue CAGR • Refrigerated •
Slide 29: Revenue by Service Offering and Industry
Revenue by Service Offering and Industry Revenue by Service Offering Revenue by Industry FY 2013 Revenue, net of fuel surcharge: $3.3 Billion Opportunity to grow while reducing cyclicality by expanding Swift Confidential and Proprietary consumer products, food and beverage and manufacturing 29
Slide 30: Large, Diverse, Blue-Chip Customer Base
Large, Diverse, Blue-Chip Customer Base Aligning with Best in Class Customers for Long-Term Relationships Swift’s customer base requires complex transportation services Swift Confidential and Proprietary 30
Slide 31: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Year Ended December 31, 2013 2012 2011 Diluted earnings (loss) per share $ 1.09 $ 1.00 $ 0.74 Adjusted for: Income tax (benefit) expense 0.71 0.44 0.42 Income (loss) before income taxes 1.80 1.44 1.15 Non-cash impairments - 0.02 - Non-cash impairments of non-operating ass
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended December 31, 2013 2012 2011 (Dollars in thousands) Operating revenue $ 4,118,195 $ 3,976,085 $ 3,778,963 Less: fuel surcharge revenue 791,481 794,514 750,203 Revenue xFSR $ 3,326,714 $ 3,181,571 $ 3,028,760 Net income (loss) $ 155,422 $ 140,087 $ 102,747 Adj
Slide 33: Adjusted Operating Income and Operating Ratio Reconciliation by Segment
Adjusted Operating Income and Operating Ratio Reconciliation by Segment Year Ended December 31, 2013 2012 2011 (Dollars in thousands) Truckload: Operating revenue $ 2,313,035 $ 2,282,342 $ 2,336,056 Less: Fuel surcharge revenue 473,139 483,623 491,823 Revenue xFSR 1,839,896 1,798,719 1,844,233 Opera
Slide 34: Adjusted Operating Income and Operating Ratio Reconciliation by Segment – cont.
Adjusted Operating Income and Operating Ratio Reconciliation by Segment – cont. Year Ended December 31, 2013 2012 2011 (Dollars in thousands) Central Refrigerated: Operating revenue $ 533,993 $ 484,657 $ 447,173 Less: Fuel surcharge revenue 103,858 104,322 96,084 Revenue xFSR 430,135 380,335 351,089
Swift Transportation — Stifel Nicolaus Transportation and Logistics Conference 2014 on 6ix