Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q1 2020 Earnings Presentation
26 slides from Knight-swift Transportation's earnings presentation, Apr 22, 2020
Slide 1: KNX 1Q20 Earnings Presentation
Exhibit 99.2 KNX 1Q20 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 statements
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 Q1 '20 TTM Q1 '20 Revenue (ex. fuel surcharge and intersegment transactions) $ 821M $ 3,460M Trucking Adjusted Operating Ratio (1) 86.5% 86.5% • 13,340 irregular route tractors, 5,122 dedicated tractors, and 57,716 combined trailers • Dry Van, Refrigerated, Dedicated, Flatbed, Drayage,
Slide 5: First Quarter 2020 Comparative Results
First Quarter 2020 Comparative Results Knight-Swift Consolidated Q1 '20 Q1 '19 Change (Dollars in thousands, except per share data) Total revenue $ 1,124,798 $ 1,204,535 (6.6 %) Revenue xFSC $ 1,027,095 $ 1,096,956 (6.4 %) Operating income $ 102,119 $ 116,299 (12.2 %) Adj. Operating Income ¹ $ 116,7
Slide 6: Operating Performance – Trucking
Operating Performance – Trucking Trucking Financial Metrics • 86.5% Adjusted Operating Ratio in Q1 2020 compared to 86.7% the previous Q1 '20 Q1 '19 Change year (Dollars in thousands) • Tractor count of 18,462 during Q1 Revenue xFSC $821,084 $865,630 (5.1 %) 2020 was 2.5% lower than Q1 2019 Operatin
Slide 7: Operating Performance – Logistics
Operating Performance – Logistics Logistics Financial Metrics Q1 '20 Q1 '19 Change • 95.2% Adjusted Operating Ratio (Dollars in thousands) during Q1 2020 compared to 91.6% Revenue ex intersegment $76,757 $87,191 (12.0 %) during the prior year Operating income $3,719 $7,283 (48.9 %) • 14.7% Brokerage
Slide 8: Operating Performance – Intermodal
Operating Performance – Intermodal Intermodal Financial Metrics Q1 '20 Q1 '19 Change (Dollars in thousands) • 102.8% Adjusted Operating Revenue ex intersegment $94,622 $115,677 (18.2 %) Ratio during Q1 2020 Operating income/(loss) $(2,737) $2,361 (215.9 %) compared with 98.0% the prior Operating rat
Slide 9: Diverse Customer Base
Diverse Customer Base Customer Mix (Pre-Pandemic) • Large base of customers shipping Essential essential goods provides a stable source Goods of freight volume 61% ◦ Customers with essential goods Non- comprise 61% of Revenue pre- Essential pandemic and 72% in early April Goods 39% • Multiple brands
Slide 10: Strong Balance Sheet
Strong Balance Sheet $622 Million of Available Liquidity Q1 2020 (in thousands) Unrestricted Cash $ 119,132 • $119M of Unrestricted Cash Total Revolver Commitment 800,000 Less Amounts Drawn 294,000 Less Amounts under LOC 31,094 • $475M available under the revolver Available Under Revolver 474,906 To
Slide 11: Historical Leverage Ratio
Historical Leverage Ratio Historically low debt levels and improved Leverage Ratio provides additional flexibility Leverage History ¹ $2,500 4.00 3.50 $2,000 2.85 3.00 s 2.61 o i t n a o i l 2.50 l $1,500 R i 2.02 e M 2.00 g n a i r t 1.99 1.98 e b $1,000 1.27 1.50 v e 1.18 1.19 e D L 1.24 1.00 $500
Slide 12: 2020 Guidance and Market Outlook
2020 Guidance and Market Outlook Due to uncertainties regarding the duration and impact of the COVID-19 pandemic, Knight-Swift is suspending its previously announced annual guidance for 2020 April Trends • Load volumes trending down in the mid to high single digits • Downward pressure on revenue per
Slide 13: Appendix
Appendix 13 KKNIGHT JU) Swirr TRANSPORTATION
Slide 14: GAAP to Non-GAAP Operating Ratio Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Operating Income and Adjusted Operating Ratio 1 Quarter Ended March 31, 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 1,124,798 $ 1,204,535 Total operating expenses (1,022,679) (1,088,236) Operating income $ 1
Slide 15: Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter Ended March 31, 2020 2019 (Dollars In thousands) GAAP: Net income attributable to Knight-Swift $ 65,426 $ 87,938 Adjusted for: Income tax expense attributable to K
Slide 16: Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 Quarter Ended March 31, 2020 2019 GAAP: Earnings per diluted share $ 0.38 $ 0.51 Adjusted for: Income tax expense attributable to Knight-Swift 0.14 0.16 Income before inco
Slide 17: Segment Quarter Ended March 31, Trucking Segment
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio ¹ Quarter Ended March 31, Trucking Segment 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 919,061 $ 973,245 Total operating expenses (811,727) (858,070) Ope
Slide 18: Segment Quarter Ended March 31, Logistics Segment
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio ¹ Quarter Ended March 31, Logistics Segment 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 79,198 $ 88,952 Total operating expenses (75,479) (81,669) Operat
Slide 19: Segment Quarter Ended March 31, Intermodal Segment
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio ¹ Quarter Ended March 31, Intermodal Segment 2020 2019 GAAP Presentation (Dollars in thousands) Total revenue $ 94,731 $ 116,367 Total operating expenses (97,468) (114,006) Ope
Slide 20: Segment — Trailing Twelve Months, Trucking
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio — Trailing Twelve Months ¹ Three Months Year Ended Three Months Trucking Segment Ended December 31, Ended TTM March 31, 2020 2019 March 31, 2019 March 31, 2020 GAAP Presentatio
Slide 21: Segment — Trailing Twelve Months, Logistics
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio — Trailing Twelve Months ¹ Three Months Year Ended Three Months Logistics Segment Ended December 31, Ended TTM March 31, 2020 2019 March 31, 2019 March 31, 2020 GAAP Presentati
Slide 22: Segment — Trailing Twelve Months, Intermodal
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Segment Adjusted Operating Income and Adjusted Operating Ratio — Trailing Twelve Months ¹ Three Months Year Ended Three Months Intermodal Segment Ended December 31, Ended TTM March 31, 2020 2019 March 31, 2019 March 31, 2020 GAAP Presentat
Slide 23: Return on Net Tangible Assets
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Return on Net Tangible Assets 1 March 31, 2020 2019 (Dollars in thousands) Total Assets $ 8,288,323 $ 8,081,142 Adjusted for: Intangible assets, net (1,423,666) (1,410,227) Goodwill (2,923,382) (2,919,222) Tangible Assets $ 3,941,275 $ 3,7
Slide 24: Adjusted Income Before Income Taxes and Adjusted Net Income
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Adjusted Income Before Income Taxes and Adjusted Net Income 1 Three Months Year Ended Three Months Ended December 31, Ended TTM March 31, 2020 2019 March 31, 2019 March 31, 2020 (Dollars in thousands) GAAP: Net income attributable to Knigh
Slide 25: Net Leverage, Adjusted Net Leverage, Leverage Ratio and Adjusted Leverage Ratio
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Net Leverage, Adjusted Net Leverage, Leverage Ratio and Adjusted Leverage Ratio 1 TTM March 31, 2020 ($ in thousands) Term loan $ 365,000 Revolving line of credit 294,000 Accounts receivable securitization 180,000 Other secured debt and fi
Slide 26: EBITDA and EBITDAR
Non-GAAP Reconciliation Non-GAAP Reconciliation (Unaudited): Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Earnings before Interest, Taxes, Depreciation, Amortization, and Rent ("EBITDAR") 1 TTM March 31, 2020 December 31, 2019 March 31, 2019 March 31, 2020 ($ in thou
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