Knight-Swift Transportation Holdings Inc. - FORM 8-K - EX-99.1 - October 21, 2013

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8-K - FORM 8-K - Knight-Swift Transportation Holdings Inc.d614661d8k.htm
EX-99.6 - EX-99.6 - Knight-Swift Transportation Holdings Inc.d614661dex996.htm
EX-99.3 - EX-99.3 - Knight-Swift Transportation Holdings Inc.d614661dex993.htm
EX-99.7 - EX-99.7 - Knight-Swift Transportation Holdings Inc.d614661dex997.htm
EX-99.4 - EX-99.4 - Knight-Swift Transportation Holdings Inc.d614661dex994.htm
EX-99.2 - EX-99.2 - Knight-Swift Transportation Holdings Inc.d614661dex992.htm
EX-99.8 - EX-99.8 - Knight-Swift Transportation Holdings Inc.d614661dex998.htm
EX-99.16 - EX-99.16 - Knight-Swift Transportation Holdings Inc.d614661dex9916.htm
EX-99.33 - EX-99.33 - Knight-Swift Transportation Holdings Inc.d614661dex9933.htm
EX-99.12 - EX-99.12 - Knight-Swift Transportation Holdings Inc.d614661dex9912.htm
EX-99.22 - EX-99.22 - Knight-Swift Transportation Holdings Inc.d614661dex9922.htm
EX-99.15 - EX-99.15 - Knight-Swift Transportation Holdings Inc.d614661dex9915.htm
EX-99.32 - EX-99.32 - Knight-Swift Transportation Holdings Inc.d614661dex9932.htm
EX-99.19 - EX-99.19 - Knight-Swift Transportation Holdings Inc.d614661dex9919.htm
EX-99.20 - EX-99.20 - Knight-Swift Transportation Holdings Inc.d614661dex9920.htm
EX-99.10 - EX-99.10 - Knight-Swift Transportation Holdings Inc.d614661dex9910.htm
EX-99.18 - EX-99.18 - Knight-Swift Transportation Holdings Inc.d614661dex9918.htm
EX-99.26 - EX-99.26 - Knight-Swift Transportation Holdings Inc.d614661dex9926.htm
EX-99.11 - EX-99.11 - Knight-Swift Transportation Holdings Inc.d614661dex9911.htm
EX-99.31 - EX-99.31 - Knight-Swift Transportation Holdings Inc.d614661dex9931.htm
EX-99.28 - EX-99.28 - Knight-Swift Transportation Holdings Inc.d614661dex9928.htm
EX-99.5 - EX-99.5 - Knight-Swift Transportation Holdings Inc.d614661dex995.htm
EX-99.9 - EX-99.9 - Knight-Swift Transportation Holdings Inc.d614661dex999.htm
EX-99.25 - EX-99.25 - Knight-Swift Transportation Holdings Inc.d614661dex9925.htm
EX-99.13 - EX-99.13 - Knight-Swift Transportation Holdings Inc.d614661dex9913.htm
EX-99.30 - EX-99.30 - Knight-Swift Transportation Holdings Inc.d614661dex9930.htm
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EX-99.23 - EX-99.23 - Knight-Swift Transportation Holdings Inc.d614661dex9923.htm
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EX-99.24 - EX-99.24 - Knight-Swift Transportation Holdings Inc.d614661dex9924.htm
EX-99.34 - EX-99.34 - Knight-Swift Transportation Holdings Inc.d614661dex9934.htm
EX-99.17 - EX-99.17 - Knight-Swift Transportation Holdings Inc.d614661dex9917.htm

Exhibit 99.1

CONSOLIDATING STATEMENT OF OPERATIONS (UNAUDITED) (a)

FOR THE THREE MONTHS ENDED MARCH 31, 2013, 2012 AND 2011

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

    Three Months Ended March 31, 2013     Three Months Ended March 31, 2012     Three Months Ended March 31, 2011  
    Swift
Transportation
Company		     Central
Refrigerated
Transportation,
Inc. (b)		     Intercompany
Elimination
Entries		     Total
(recast)		     Swift
Transportation
Company		     Central
Refrigerated
Transportation,
Inc. (b)		     Intercompany
Elimination
Entries		     Total
(recast)		     Swift
Transportation
Company		     Central
Refrigerated
Transportation,
Inc. (b)		     Intercompany
Elimination
Entries		     Total
(recast)		  

Operating revenue

   $ 856,794      $ 125,210      $ (396 )    $ 981,608      $ 826,885      $ 117,302      $ (369 )    $ 943,818      $ 758,889      $ 102,342      $ (488 )    $ 860,743   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

                        

Salaries, wages and employee benefits

     206,607        19,878        —          226,485        200,135        18,991        —          219,126        195,476        17,423        —          212,899   

Operating supplies and expenses

     60,665        11,402        —          72,067        55,042        10,927        —          65,969        57,104        10,965        —          68,069   

Fuel

     151,882        16,234        —          168,116        153,003        16,291        —          169,294        150,281        15,604        —          165,885   

Purchased transportation

     244,817        47,525        (186 )      292,156        233,202        44,447        (219 )      277,430        194,037        36,539        (346 )      230,230   

Rental expense

     29,251        11,393        (21 )      40,623        23,499        9,689        (30 )      33,158        17,989        10,052        (21 )      28,020   

Insurance and claims

     27,771        3,956        (189 )      31,538        30,580        3,709        (120 )      34,169        22,725        3,411        (121 )      26,015   

Depreciation and amortization of property and equipment

     50,332        4,538        —          54,870        50,394        4,798        —          55,192        50,358        2,716        —          53,074   

Amortization of intangibles

     4,204        —          —          4,204        4,303        —          —          4,303        4,727        —          —          4,727   

Impairments

     —          —          —          —          1,065        —          —          1,065        —          —          —          —     

Gain on disposal of property and equipment

     (2,354 )      (494 )      —          (2,848 )      (4,390 )      (129 )      —          (4,519 )      (2,255 )      (137 )      —          (2,392 ) 

Communication and utilities

     6,092        473        —          6,565        6,246        483        —          6,729        6,460        556        —          7,016   

Operating taxes and licenses

     15,540        2,574        —          18,114        15,904        2,425        —          18,329        15,258        2,338        —          17,596   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expense

     794,807        117,479        (396 )      911,890        768,983        111,631        (369 )      880,245        712,160        99,467        (488 )      811,139   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     61,987        7,731        —          69,718        57,902        5,671        —          63,573        46,729        2,875        —          49,604   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other (income) expenses:

                        

Interest expense

     25,574        788        —          26,362        32,776        1,077        —          33,853        37,501        724        —          38,225   

Derivative interest expense

     562        —          —          562        2,545        —          —          2,545        4,680        —          —          4,680   

Interest income

     (573 )      (18 )      —          (591 )      (397 )      (21 )      —          (418 )      (467 )      (12 )      —          (479 ) 

Loss on debt extinguishment

     5,044        —          —          5,044        20,940        —          —          20,940        —          —          —          —     

Gain on sale of real property

     (6,078 )      —          —          (6,078 )      —          —          —          —          —          —          —          —     

Other

     (496 )      (64 )      —          (560 )      (602 )      (127 )      —          (729 )      (511 )      (93 )      —          (604 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other (income) expenses, net

     24,033        706        —          24,739        55,262        929        —          56,191        41,203        619        —          41,822   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     37,954        7,025        —          44,979        2,640        4,742        —          7,382        5,526        2,256        —          7,782   

Income tax expense (benefit)

     14,613        74        —          14,687        (3,548 )      103        —          (3,445 )      2,321        40        —          2,361   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 23,341      $ 6,951      $ —        $ 30,292      $ 6,188      $ 4,639      $ —        $ 10,827      $ 3,205      $ 2,216      $ —        $ 5,421   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP Diluted EPS

   $ 0.17      $ 0.05 (d)      $ 0.21      $ 0.04      $ 0.03 (d)      $ 0.08      $ 0.02      $ 0.02 (d)      $ 0.04   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EPS (c)

   $ 0.21      $ 0.03 (d)      $ 0.24      $ 0.14      $ 0.02 (d)      $ 0.16      $ 0.06      $ 0.01 (d)      $ 0.07   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Diluted weighted average shares used in per share calculation

     141,259        141,259 (d)        141,259        140,392        140,392 (d)        140,392        138,900        138,900 (d)        138,900   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Operating Ratio

     92.8 %      93.8 %        92.9 %      93.0 %      95.2 %        93.3 %      93.8 %      97.2 %        94.2 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted Operating Ratio (e)

     90.4 %      92.1 %        90.6 %      90.5 %      93.8 %        90.9 %      91.8 %      96.5 %        92.3 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

EBITDA

   $ 118,053      $ 12,333        $ 130,386      $ 92,261      $ 10,596        $ 102,857      $ 102,325      $ 5,684        $ 108,009   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EBITDA (f)

   $ 123,642      $ 12,393        $ 136,035      $ 115,533      $ 10,657        $ 126,190      $ 104,749      $ 5,719        $ 110,468   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

 

(a) On August 6, 2013, Swift Transportation Company (the “Company” or “Swift”) entered into a Stock Purchase Agreement with the shareholders of Central Refrigerated Transportation, Inc. (“Central”), pursuant to which the Company acquired all of the outstanding capital stock of Central (the “Acquisition”) in a cash transaction valued at $225 million. Mr. Jerry Moyes, the Chief Executive Officer and controlling stockholder of Swift, was the majority shareholder of Central. Given Mr. Moyes’ majority ownership in both Swift and Central, the Acquisition is accounted for as a combination of entities under common control similar to the pooling of interest method. Under common control accounting, the historical results of Central have been combined with Swift’s. The above consolidating statement of operations for the three months ended March 31, 2013, 2012 and 2011 reflects the combination of the entities as if the Acquisition was effective on January 1, 2011.
(b) Certain amounts have been reclassified to conform with current presentation.
(c) See the reconciliation of Adjusted EPS at schedule titled “Consolidating Adjusted EPS Reconciliation (Unaudited)” for the three months ended March 31, 2013, 2012 and 2011.
(d) Represents Central’s pro forma diluted and adjusted EPS based on Swift’s diluted weighted average share count for the applicable period.
(e) See the reconciliation of Adjusted OR at the schedule titled “Consolidating Adjusted Operating Income and Operating Ratio Reconciliation (Unaudited)” for the three months ended March 31, 2013, 2012 and 2011.
(f) See the reconciliation of Adjusted EBITDA at the schedule titled “Consolidating Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Unaudited)” for the three months ended March 31, 2013, 2012 and 2011.

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