Slide 1: 1Q 2022 Earnings Presentation
1 Q 2 0 2 2 E A R N I N G S P R E S E N TAT I O N May 3, 2022
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: Werner Overview, 1Q 2022
WERNER OVERVIEW, 1Q 2022 Derek Leathers Chairman, President and Chief Executive Officer
Slide 4: Werner Overview
W E R N E R OV E R V I E W Premium Truckload Transportation & Logistics Services Provider Omaha, NE $2.6B 5,185 3,040 13,908 1.2% Headquarters Market Cap1 Dedicated One-Way Associates2 Dividend Yield1 Fleet Size1 Fleet Size1 2021 Revenues by Segment 2 0 2 1 Reve n u e s b y Ve r t i c a l 2021 Reven
Slide 5: 1Q 2022 Highlights
1Q 2022 HIGHLIGHTS Revenues 24% to $765M GAAP EPS 20% to $0.82 Financial Adjusted EPS1 40% to $0.96 Highlights Adjusted operating income1 37% to $86.2M Adjusted TTS operating margin1, 2 220 bps to 16.4% Strategic Updates and Other Developments Comparisons to prior year quarter unless otherwise noted
Slide 6: 1Q 2022 Company and Segment Financial Results
1Q 2022 COMPANY AND SEGMENT FINANCIAL RESULTS John Steele EVP, Treasurer and Chief Financial Officer
Slide 7: 1Q 2022 Financial Performance
1Q 2022 FINANCIAL PERFORMANCE Total Revenues ($M) Adjusted EPS1 $764.6 $86.2 $800 20.0% $790 $780 $770 $760 $90.0 $750 $740 $730 $720 18.0% $616.4 $710 $700 $0.96 $690 $592.7 $680 $670 $80.0 $660 $650 $640 16.0% $630 $62.7 $620 $610 $600 $590 $70.0 $580 $570 $560 14.0% $550 11.3% $540 $530 $520 $0.6
Slide 8: Truckload Transportation Services (TTS) Results
T R U C K L O A D T R A N S P O R TAT I O N S E R V I C E S ( T T S ) R E S U LT S 1Q20 1Q21 1Q22 1Q22 vs. 1Q21 Revenues ($M) $464.9 $462.9 $558.4 21% Adjusted Operating Income1 ($M) $35.3 $58.9 $78.3 33% Adjusted Operating Margin1,2 8.5% 14.2% 16.4% 220 bps Adjusted Operating Ratio1,2 91.5% 85.8% 8
Slide 9: TTS Fleet Metrics Update
T T S 1 F L E E T M E T R I C S U P DAT E Dedicated Truckload Trucking Revenues2 ($M) Average Trucks Revenues / Truck / Week2 4,934 5,174 4,591 $4,247 $286 $3,874 $3,957 $254 $231 1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 One-Way Truckload $250 Trucking Revenues2 ($M) Average Trucks Revenues / Tr
Slide 10: Stability and Durability of Werner's Dedicated Fleet
S TA B I L I T Y A N D D U R A B I L I T Y O F W E R N E R ’ S D E D I C AT E D F L E E T 2021 Revenues by Vertical Growing Business Segment Within TTS 2% Dedicated fleet percentage of TTS fleet has grown from 46% in Discount Retail (including dollar stores) 5% 2009 to 53% in 2016 to 63% in 2021 H
Slide 11: Werner Premium Fleet Benefits
WERNER PREMIUM FLEET BENEFITS Werner Fleet Sales Strategy Maximizes Trucks Trailers Resale Value Modern truck fleet, with GPS tracking, from Modern 53’ trailers with an average age of 4.6 years2 • Nearly 30 years in the remarketing business top-quality OEMs with an average age of 2.3 • 95% dry van,
Slide 12: Werner Logistics Results
W E R N E R L O G I S T I C S R E S U LT S 1Q20 1Q21 1Q22 1Q22 vs. 1Q21 Revenues ($M) $112.2 $137.9 $189.0 37% Revenues, less purchased $16.2 $17.3 $31.5 82% transportation expense ($M) Adjusted Operating Income ($M) 1 $1.1 $3.6 $9.2 158% Adjusted Operating Margin1 1.0% 2.6% 4.9% 230 bps YoY Comment
Slide 13: Strong FCF Generation; Expected to Continue
S T R O N G F C F G E N E R AT I O N ; E X P E C T E D T O C O N T I N U E ($M) COMMENTARY $446 $418 $427 FCF generation of $140M in 2021 $349 $333 2022 Net CapEx expected to be in the range of $250M to $300M; over the $283 $284 $266 long-term, targeting Net CapEx at 11- 13% of annual revenues $
Slide 14: Disciplined Capital Allocation
D I S C I P L I N E D C A P I TA L A L L O C AT I O N Priorities Continual and Consistent Investment in the 5 Ts + S Capital Allocation History 2018-2021 $1.9B Reinvestments in new, feature-rich trucks and trailers, including the latest safety technology, that extend sustainable competitive advant
Slide 15: Update on Business & Financial Outlook
UPDATE ON BUSINESS & FINANCIAL OUTLOOK Derek Leathers Chairman, President and Chief Executive Officer
Slide 16: 5 Ts + S Are Core Components of Our Strategy
5 TS + S ARE CORE COMPONENTS OF OUR STRATEGY COMMITTED TO REMAINING AT THE FOREFRONT OF OUR INDUSTRY KEY FOCUS AREAS RELEVANT UPDATES Maintain the age of our industry-leading Truck and and trailer age increased modern truck fleet, which includes state- slightly, due to OEM new equipment 1. Truck
Slide 17: The Evolution of Our ESG Effort
THE EVOLUTION OF OUR ESG EFFORT “While ESG concepts have long been woven into the fabric of Werner’s history, the release of our inaugural CSR report further elevates our commitment to conducting business in a socially and environmentally responsible manner. We are excited to demonstrate our ongoing
Slide 18: 2022 Guidance Metrics and Assumptions
2 0 2 2 G U I DA N C E M E T R I C S A N D A S S U M P T I O N S 2022 Guidance Actual 2022 Guidance (as of 2/3/22) (as of 3/31/22) (as of 5/3/22) Commentary 2022 Guidance 2% to 5% (1%) 2% to 5% Subject to driver availability and timing of delivery TTS truck growth from BoY to EoY (annual) (1Q22) (an
Slide 19: Q&A
Q&A
Slide 20: Invest With Us
INVEST WITH US Positioned for strong performance in a truckload freight market that is beginning to moderate from peak levels • Large, stable and growing Dedicated fleet with winning customers who value our superior service; attractive driving positions with frequent home time • Diversified One-Wa
Slide 21: Appendix
APPENDIX
Slide 22: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (unaudited) (In thousands, except per share amounts) 22
Slide 23: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 23
Slide 24: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTION SERVICES (TTS) SEGMENT (unaudited) (In thousands) 24
Slide 25: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (unaudited) (In thousands) 25
Slide 26: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 26
Slide 27: For More Information, Visit werner.com
F O R M O R E I N F O R M AT I O N , V I S I T W E R N E R . C O M