Slide 1: 2Q23 Earnings Presentation
2Q23 EARNINGS PRESENTATION AUGUST 3, 2023 1
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: Second Quarter 2023 Overview
SECOND QUARTER 2023 OVERVIEW DEREK LEATHERS Chairman, President and Chief Executive Officer
Slide 4: Werner Overview (WERN)
WERNER OVERVIEW (WERN) 6TH 67 2,165 TOTAL DRIVERS IN COMPANY YEARS IN BUSINESS OMAHA, NE LARGEST HISTORY WITH ONE MILLION OR MORE SAFE DRIVING HEADQUARTERS DEDICATED CARRIER IN U.S.3 MILES WITH WERNER 5,2604 DEDICATED > 95% DEDICATED CUSTOMER 3,0254 ONE-WAY TRUCKLOAD $3.0B1 1.1%1 14,3842 8,2854 TTS
Slide 5: Werner Drive Supports Execution of Strategic Priorities
WERNER DRIVESM SUPPORTS EXECUTION OF STRATEGIC PRIORITIES WERNER DRIVESM EXPERIENCED & 67-year history rooted in our values and BUILDING ON 5Ts AND SHAPING OUR FUTURE REPUTABLE BRAND recognized for superior safety and service OPERATIONAL Built for and trusted to solve the most complex enterprise fre
Slide 6: 2Q 2023 Highlights
2Q 2023 HIGHLIGHTS 2Q23 2Q23 Highlights YoY Change $811M • Trucking revenues net of fuel surcharges decreased less than 1% Revenues (3)% • Durable Dedicated segment performed as expected; positive $0.47 revenue per truck YoY growth GAAP EPS (58)% • Optimization of One-Way fleet minimized single-digi
Slide 7: Stable and Durable TTS Revenue Base
STABLE AND DURABLE TTS REVENUE BASE TTS RPTPW* YoY Change 2Q23 YoY CHANGE 4% 12% TTS Revenue/Tractor/Week* (RPTPW) increased YoY 18 of last 22 quarters 2% 10% 0% 8% -2% 6% -4% 4% -6% 2% -8% 0% Q2 revenue metrics performing better -10% -2% than industry benchmarks -12% -4% -14% TTS RPTPW* Dedicated R
Slide 8: Driving Innovation for Growth
DRIVING INNOVATION FOR GROWTH BEST-OF-BREED BRANDED TECHNOLOGY COMPETITIVE TECHNOLOGY PARTNERS + SOLUTIONS = ADVANTAGE Equipment Driver Operating Lifecycle Connectivity Efficiency Management Automated Dynamic Superior Customer Brokerage Pricing Engine Experience Logistics - Logistics - • Logistics 1
Slide 9: Second Quarter 2023 Financial Results
SECOND QUARTER 2023 FINANCIAL RESULTS CHRIS WIKOFF Executive Vice President, Treasurer and Chief Financial Officer
Slide 10: 2Q 2023 Results
2Q 2023 RESULTS TOTAL REVENUES ($M) ADJUSTED OPERATING INCOME1 ($M) ADJUSTED EPS1 AND ADJUSTED OPERATING MARGIN1 $836 $811 25. 0% $12 0.0 $11 0.0 $650 $0.87 $0.86 $10 0.0 20. 0% $90 .0 $79.1 $77.6 $80 .0 15. 0% $70 .0 $60 .0 $51.1 $0.52 $50 .0 10. 0% $40 .0 12.2% $30 .0 9.3% 5.0 % 6.3% $20 .0 $10 .0
Slide 11: 2Q 2023 Truckload Transportation Services (TTS) Results
2Q 2023 TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 2Q21 2Q22 2Q23 2Q23 vs. 2Q22 Revenues ($M) $491.2 $613.6 $570.2 (7)% Revenues, net of fuel surcharges ($M) $433.8 $495.0 $493.5 (0.3)% Adjusted Operating Income1 ($M) $74.4 $66.2 $47.9 (28)% Adjusted Operating Margin1, 2 17.1% 13.4% 9.7% (370)
Slide 12: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE TRUCKING REVENUES2 ($M) AVERAGE TRUCKS REVENUES / TRUCK / WEEK2 DEDICATED TRUCKLOAD $300 $310 5,276 $4,452 $4,517 4,949 5,184 $4,079 $262 2Q21 2Q22 2Q23 2Q21 2Q22 2Q23 2Q21 2Q22 2Q23 ONE-WAY TRUCKLOAD $25 0 $188 $4,709 $4,665 $4,423 $20 0 $166 $177 3,102 3,075 $15 0 2,715 $
Slide 13: 2Q 2023 Werner Logistics Results
2Q 2023 WERNER LOGISTICS RESULTS 2Q21 2Q22 2Q23 2Q23 vs. 2Q22 Revenues ($M) $141.7 $203.9 $224.5 10% Revenues, less purchased $17.3 $37.6 $39.2 4% transportation expense ($M) Adjusted Operating Income ($M)1 $3.9 $13.0 $5.5 (58)% Adjusted Operating Margin1 2.8% 6.4% 2.4% (400) bps YoY COMMENTARY (2Q2
Slide 14: 2023 Cost Savings Program $40M+
2023 COST SAVINGS PROGRAM COST CONTAINMENT FOCUS & DISCIPLINE COST CONTAINMENT FOCUS & DISCIPLINE • Focused discipline across all business lines $40M+ • Initiatives aimed at gross cost savings to mitigate PROJECTED TOTAL inflationary costs and difficult operating environment 2023 SAVINGS • Sequentia
Slide 15: Strong Capital & Cash Flow Generation
STRONG CAPITAL & CASH FLOW GENERATION CASH FLOW LIQUIDITY1 ($ millions) ($ millions) Cash, $47 $446 $449 $418 $427 $349 $333 $318 $284 $282 $266 $254 $143 $180 $140 $193 $511 $131 Total Liquidity $69 $28 2018 2019 2020 2021 2022 YTD 2023 Available Credit, Oper CF Net CapEx FCF $464 SOLID CASH FLOW &
Slide 16: Flexible Debt and Low Leverage
FLEXIBLE DEBT AND LOW LEVERAGE DEBT MATURITY SCHEDULE NET DEBT TO LTM EBITDA ($ millions) 1.1x 1.0x $550 0.9x 0.6x 0.3x $88 $2 2023 2024 2025 2026 2027 12/31/20 12/31/21 12/31/22 3/31/23 6/30/23 HEALTHY BALANCE SHEET • $640M Debt ($594M Net Debt) • 58% effectively-fixed rate debt • Long-term, low-co
Slide 17: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION PRIORITIES CAPITAL ALLOCATION HISTORY Strategic Reinvestment for Sustainable Competitive Advantages 2018-2022 & Long-Term Growth • Reinvestments in new, feature-rich trucks and trailers, including the latest safety technology, for customers and drivers Share • Technolo
Slide 18: 2023 Updated Market Outlook and Modeling Assumptions
2023 UPDATED MARKET OUTLOOK AND MODELING ASSUMPTIONS MARKET OUTLOOK MODELING ASSUMPTIONS • Freight demand steady in Dedicated, beginning to stabilize in • Annual net interest expense increase by $20-25M in 2023 with One-Way and Logistics in 3Q, then expect modest seasonal higher debt and interest ra
Slide 19: 2023 Guidance Metrics and Assumptions
2023 GUIDANCE METRICS AND ASSUMPTIONS PRIOR GUIDANCE ACTUAL 2023 GUIDANCE COMMENTARY (As of 5/3/23) (As of 6/30/23) (As of 8/3/23) 2022 GUIDANCE (2)% to 1% (4)% (4)% to (2)% Adjusting fleet size to adapt TTS truck count from BoY to EoY (annual) (YTD23) (annual) to a softer freight market $350M to $4
Slide 20: Competitive Advantages Across All Business Conditions
COMPETITIVE ADVANTAGES ACROSS ALL BUSINESS CONDITIONS CORE OPERATIONAL STRENGTHS BREADTH DIVERSIFIED NORTH AMERICA TECHNOLOGY TOP CUSTOMER SCALE FOOTPRINT & INNOVATION TALENT PORTFOLIO • 8,285 trucks1 • Top 5 U.S. public • Comprehensive North • Accelerate Werner • Access to top talent • Diversified
Slide 21: Appendix
APPENDIX
Slide 22: Revenues Snapshot
REVENUES SNAPSHOT 2022 REVENUES 2022 REVENUES 2022 REVENUES BY SEGMENT BY VERTICAL BY CUSTOMER Top 50 Customers 2% Retail 60% Top 5 35% 24% $3.3B Manufacturing & 17% Top 10 46% TOTAL 74% Industrial REVENUES Food & 15% Top 25 63% Beverage Truckload Transportation Services (TTS) Logistics & Other 8% T
Slide 23: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) 23
Slide 24: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (Unaudited) (In thousands) 24
Slide 25: Reconciliation of Non-GAAP Financial Measures – TTS Segment (continued)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (continued) (Unaudited) (In thousands) 25
Slide 26: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (Unaudited) (In thousands) 26
Slide 27: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 27
Slide 28: Thank You
THANK YOU FOR MORE INFORMATION, VISIT WERNER.COM