Knight-swift Transportation Holdings Inc. · NYSE:KNX
Knight-swift Transportation — Q3 2024 Earnings Presentation
20 slides from Knight-swift Transportation's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings A KNIGHT-SWIFT
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: Q3 2024 Comparative Results
Q3 2024 Comparative Results Consolidated operating ratio improves sequentially as environment stabilizes Total Revenue Revenue xFSC Operating Income Adj. Operating Inc. 1 (7.1%) (5.3%) 0.4% (7.1%) 1,775 1,681 81 81 109 102 2,020 In millions 1,877 In millions 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 N
Slide 4: Q3 2024 Segment Overview
Q3 2024 Segment Overview Collaborating across our diversified brands to create customer value Revenue Adjusted Op Adjusted Q3 2024 Revenue Diversification xFSC2 Income1 OR1 ~16,300 irregular route and Truckload $1,107.5M $48.5M 95.6% ~6,500 dedicated tractors LTL 17% Less-than- 162 Service Centers T
Slide 5: Operating Performance - Truckload
Operating Performance - Truckload Driving disciplined cost reduction as we position to leverage market improvements Truckload Financial Metrics Q3 2024 Q3 2023 Change • Revenue per mile inflected positively sequentially in Q3 with (Dollars in millions) stable miles per tractor Revenue xFSC $1,107.5
Slide 6: Operating Performance - Less-Than-Truckload
Operating Performance - Less-Than-Truckload LTL expansion strategy accelerated with acquisition of DHE LTL Financial Metrics Q3 2024 Q3 2023 Change • Revenue xFSC increased 16.7% year over year driven by: (Dollars in millions) ◦ 9.2% year-over-year increase in LTL Revenue xFSC per Revenue xFSC $280.
Slide 7: Less-Than-Truckload - DHE Transportation Acquisition Complements Organic Expansion
Less-Than-Truckload - DHE Transportation Acquisition Complements Organic Expansion Unlocking meaningful strategic value by expanding to now serve ~70% of U.S. population • Acquired the non-union regional less-than- truckload division (DHE) of Dependable Highway Express, Inc. • Strong Southwest LTL o
Slide 8: Operating Performance - Logistics
Operating Performance - Logistics Executing our disciplined pricing strategy to maintain profitability Logistics Financial Metrics Q3 2024 Q3 2023 Change • 94.5% Adjusted Operating Ratio1 during the quarter, 100 bps (Dollars in millions) improvement from Q2 Revenue ex intersegment $143.6 $158.6 (9.5
Slide 9: Operating Performance - Intermodal
Operating Performance - Intermodal Continue pushing toward profitable growth with a disciplined pricing approach into 2025 Intermodal Financial Metrics Q3 2024 Q3 2023 Change • Operating ratio improved 310 bps year-over-year (Dollars in millions) • Load count up 7.2% year-over-year as we drive diver
Slide 10: Operating Performance - All Other Segments
Operating Performance - All Other Segments All other segments profitable after 3rd party insurance exit in 1Q All Other Financial Metrics Q3 2024 Q3 2023 Change • Revenue decline largely as a result of winding down our (Dollars in millions) third-party insurance program at the end of Q1 2024 Revenue
Slide 11: EPS Guidance
EPS Guidance Expect Adjusted EPS to be in the range of $0.32 - $0.36 in Q4 and $0.29 - $0.33 in Q1 Guidance Assumptions • Revenue up slightly sequentially in Q4 and down sequentially low-to-mid single-digit % into Q1 Truckload • Operating margins improving modestly sequentially in Q4 and declining m
Slide 12: Appendix
Appendix A KNIGHT-SWIFT
Slide 13: Non-GAAP Reconciliation: Adjusted Operating Income and Adjusted Operating Ratio
Non-GAAP Reconciliation Adjusted Operating Income and Adjusted Operating Ratio 1 2 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 1,876,676 $ 2,019,936 $ 5,545,797 $ 5,209,847 Total operating expenses (1
Slide 14: Non-GAAP Reconciliation: Adjusted Operating Income and Adjusted Operating Ratio (Unaudited)
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 15: Non-GAAP Reconciliation: Adjusted Net Income and Adjusted EPS
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, 2024 2023 2024 2023 (Dollars in thousands, except per share data) GAAP: Net income attributable to Knight-Swift $ 30,464 $ 60,194 $ 48,129
Slide 16: Non-GAAP Reconciliation: Adjusted Net Income and Adjusted EPS
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, 2024 2023 2024 2023 GAAP: Earnings per diluted share $ 0.19 $ 0.37 $ 0.30 $ 1.41 Adjusted for: Income tax expense attributable to Knight-Sw
Slide 17: Non-GAAP Reconciliation: Truckload Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, Truckload Segment 2 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 1,258,156 $ 1,380,781 $ 3,785,408 $ 3,346,685 T
Slide 18: Non-GAAP Reconciliation: LTL Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, LTL Segment 2 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 325,412 $ 284,168 $ 914,012 $ 806,577 Total operating
Slide 19: Non-GAAP Reconciliation: Logistics Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, Logistics Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 143,581 $ 159,489 $ 402,010 $ 417,715 Total opera
Slide 20: Non-GAAP Reconciliation: Intermodal Segment
Non-GAAP Reconciliation Segment Adjusted Operating Income and Adjusted Operating Ratio 1 (Unaudited) Quarter Ended September 30, Year-to-Date September 30, Intermodal Segment 2024 2023 2024 2023 GAAP Presentation (Dollars in thousands) Total revenue $ 102,679 $ 101,219 $ 288,192 $ 316,118 Total oper
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