Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q3 2023 Earnings Presentation
21 slides from Knight-swift Transportation's earnings presentation, Oct 19, 2023
Slide 1: Third Quarter 2023 Earnings
KNIGHT 7) SWIFT; \. TRANSPORTATION _ TRANSPORTATION Third Quarter 2023 Earnings (s)
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: KNX Q3 2023 Comparative Results
KNX Q3 2023 Comparative Results Truckload market remains challenging while LTL demand is strong (U.S. Xpress now included) Total Revenue Revenue xFSC Operating Income Adj. Operating Inc. 1 6.5% 7.6% (69.5%) (60.8%) 1,775 1,650 1,897 2,020 265 279 In millions In millions 81 109 3Q22 3Q23 3Q22 3Q23 3Q
Slide 4: Segment Overview
Segment Overview LTL strength helping offset truckload freight demand weakness Truckload 2 Less-than-Truckload Q3 2023 Revenue Diversification Q3 2023 YTD Q3 2023 Q3 2023 YTD Q3 2023 Revenue xFSC 3 $ 1,180.0M $ 2,875.3M Revenue xFSC $ 240.0M $ 682.5M Adjusted Op Income 1 $ 60.1M $ 244.6M Adjusted Op
Slide 5: Operating Performance - Truckload
Operating Performance - Truckload Demand stable, but lower rates and rising fuel prices were headwinds Truckload Financial Metrics • 94.9% Adjusted Operating Ratio1 in Q3 2023 compared to 81.8% the previous year Q3 2023 Q3 2022 Change • Excluding the results of U.S. Xpress, Adjusted Operating (Dolla
Slide 6: Operating Performance - LTL
Operating Performance - LTL Continued strong performance, poised for further growth LTL Financial Metrics • 84.9% Adjusted Operating Ratio1 in Q3 2023 Q3 2023 Q3 2022 Change • $36.2M of Adjusted Operating Income1 (Dollars in thousands) • Volumes built throughout the quarter as a result of Revenue xF
Slide 7: Operating Performance - Logistics
Operating Performance - Logistics Remaining nimble in a challenging environment, U.S. Xpress making meaningful progress Logistics Financial Metrics • 93.3% Adjusted Operating Ratio1 during the quarter • 18.0% Gross margin, 290 bps decrease from prior year Q3 2023 Q3 2022 Change (Dollars in thousands
Slide 8: Operating Performance - Intermodal
Operating Performance - Intermodal Competitive truckload market continues to challenge revenue Intermodal Financial Metrics • 104.5% operating ratio during Q3 2023 compared with 90.2% the prior year Q3 2023 Q3 2022 Change (Dollars in thousands) • 26.6% year-over-year decrease in average revenue per
Slide 9: Operating Performance - Non-Reportable
Operating Performance - Non-Reportable Insurance challenges continue, evaluating strategic alternatives Non-Reportable Financial Metrics Executing Strategic Pivot on Third Party Insurance Q3 2023 Q3 2022 Change • Significantly reduced exposure to third party insurance (Dollars in thousands) risk in
Slide 10: U.S. Xpress - Business Update
U.S. Xpress - Business Update Ahead of schedule, positioning for accretion Measurable and meaningful progress underway • Cost per mile improved mid-single digits sequentially • Rate per mile up low-single digits sequentially • Converted 9 of 10 locations to terminal-centric model • Reduced spot expo
Slide 11: Market Outlook Q4 2023
Market Outlook Q4 2023 • LTL demand remains solid as recent disruption continues to be sorted out • LTL improvement in revenue (excluding fuel) per hundredweight year-over-year • Truckload - muted peak season demand with limited non-contract opportunities • Truckload - spot rates show minimal improv
Slide 12: 2023 Guidance
2023 Guidance Updated expected Adjusted EPS for 2023 from $2.10 - $2.30 to new range of $2.10 - $2.20 Q4 2023 Guidance Assumptions • Truckload rates stabilize at current levels for the fourth quarter • Truckload tractor count down modestly sequentially • Excluding the results of U.S. Xpress miles pe
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 2,019,936 $ 1,896,839 $ 5,209,847 $ 5,684,959 Total operating expenses (1
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio (Unaudited) 1 Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating ratio to consolidated non-GAAP Adjusted Operating Ratio. 2 The reported results do not include the results of o
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, 2023 2022 2023 2022 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 60,194 $ 194,795 $ 227,80
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income Attributable to Knight-Swift and Adjusted EPS 1 2 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, 2023 2022 2023 2022 GAAP: Earnings per diluted share $ 0.37 $ 1.21 $ 1.41 $ 3.80 Adjusted for: Income tax expense attributable to Knight-Sw
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, 2 Truckload Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 1,380,781 $ 1,160,735 $ 3,346,685 $ 3,430,075 T
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, LTL Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 284,168 $ 278,615 $ 806,577 $ 817,587 Total operating e
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, Logistics Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 159,489 $ 210,673 $ 417,715 $ 741,374 Total opera
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, Intermodal Segment 2023 2022 2023 2022 GAAP Presentation (Dollars in thousands) Total revenue $ 101,219 $ 130,777 $ 316,118 $ 372,870 Total oper
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