Knight-Swift Transportation Holdings Inc. - FORM 8-K - EX-99.2 - 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-99.8 - 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-99.1 - EX-99.1 - Knight-Swift Transportation Holdings Inc.d614661dex991.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
EX-99.27 - EX-99.27 - Knight-Swift Transportation Holdings Inc.d614661dex9927.htm
EX-99.14 - EX-99.14 - Knight-Swift Transportation Holdings Inc.d614661dex9914.htm
EX-99.21 - EX-99.21 - Knight-Swift Transportation Holdings Inc.d614661dex9921.htm
EX-99.23 - EX-99.23 - Knight-Swift Transportation Holdings Inc.d614661dex9923.htm
EX-99.29 - EX-99.29 - Knight-Swift Transportation Holdings Inc.d614661dex9929.htm
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 99.2

CONSOLIDATING STATEMENT OF OPERATIONS (UNAUDITED) (a)

FOR THE THREE MONTHS ENDED JUNE 30, 2013, 2012 AND 2011

(IN THOUSANDS)

 

    Three Months Ended June 30, 2013     Three Months Ended June 30, 2012     Three Months Ended June 30, 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

   $ 898,104      $ 131,400      $ (433 )    $ 1,029,071      $ 872,584      $ 119,921      $ (422 )    $ 992,083      $ 850,470      $ 112,047      $ (680 )    $ 961,837   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

                        

Salaries, wages and employee benefits

     202,757        21,095        —          223,852        198,618        18,949        —          217,567        202,556        17,550        —          220,106   

Operating supplies and expenses

     68,136        10,860        —          78,996        63,379        11,092        —          74,471        58,766        10,596        —          69,362   

Fuel

     144,377        16,509        —          160,886        145,826        16,513        —          162,339        168,537        17,704        —          186,241   

Purchased transportation

     257,471        50,870        (224 )      308,117        252,685        45,573        (302 )      297,956        223,680        41,810        (540 )      264,950   

Rental expense

     30,541        12,475        (20 )      42,996        26,576        9,890        (20 )      36,446        19,224        10,292        (20 )      29,496   

Insurance and claims

     29,207        4,579        (189 )      33,597        26,278        3,170        (100 )      29,348        27,876        4,404        (120 )      32,160   

Depreciation and amortization of property and equipment

     52,527        4,353        —          56,880        50,389        4,779        —          55,168        51,553        3,194        —          54,747   

Amortization of intangibles

     4,203        —          —          4,203        4,215        —          —          4,215        4,617        —          —          4,617   

Gain on disposal of property and equipment

     (4,681 )      (462 )      —          (5,143 )      (3,478 )      (1,547 )      —          (5,025 )      (700 )      (31 )      —          (731 ) 

Communication and utilities

     5,433        468        —          5,901        5,975        595        —          6,570        6,335        515        —          6,850   

Operating taxes and licenses

     15,852        2,668        —          18,520        15,444        2,535        —          17,979        15,459        2,452        —          17,911   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expense

     805,823        123,415        (433 )      928,805        785,907        111,549        (422 )      897,034        777,903        108,486        (680 )      885,709   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     92,281        7,985        —          100,266        86,677        8,372        —          95,049        72,567        3,561        —          76,128   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other (income) expenses:

                        

Interest expense

     23,760        1,002        —          24,762        29,553        1,022        —          30,575        36,631        934        —          37,565   

Derivative interest expense

     532        —          —          532        2,108        —          —          2,108        4,003        —          —          4,003   

Interest income

     (517 )      (29 )      —          (546 )      (439 )      (12 )      —          (451 )      (471 )      (26 )      —          (497 ) 

Loss on debt extinguishment

     —          —          —          —          1,279        —          —          1,279        —          —          —          —     

Other

     (1,323 )      (1 )      —          (1,324 )      (1,299 )      (15 )      —          (1,314 )      (664 )      (108 )      —          (772 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other (income) expenses, net

     22,452        972        —          23,424        31,202        995        —          32,197        39,499        800        —          40,299   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     69,829        7,013        —          76,842        55,475        7,377        —          62,852        33,068        2,761        —          35,829   

Income tax expense

     26,888        75        —          26,963        21,776        156        —          21,932        13,485        48        —          13,533   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 42,941      $ 6,938      $ —        $ 49,879      $ 33,699      $ 7,221      $ —        $ 40,920      $ 19,583      $ 2,713      $ —        $ 22,296   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP Diluted EPS

   $ 0.30      $ 0.05 (d)      $ 0.35      $ 0.24      $ 0.05 (d)      $ 0.29      $ 0.14      $ 0.02 (d)      $ 0.16   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EPS (c)

   $ 0.32      $ 0.03 (d)      $ 0.35      $ 0.27      $ 0.03 (d)      $ 0.31      $ 0.18      $ 0.01 (d)      $ 0.19   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Diluted weighted average shares used in per share calculation

     141,838        141,838 (d)        141,838        139,640        139,640 (d)        139,640        140,716        140,716 (d)        140,716   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Operating Ratio

     89.7 %      93.9 %        90.3 %      90.1 %      93.0 %        90.4 %      91.5 %      96.8 %        92.1 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted Operating Ratio (e)

     86.7 %      92.4 %        87.5 %      87.0 %      91.0 %        87.5 %      88.6 %      95.9 %        89.4 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

EBITDA

   $ 150,334      $ 12,339        $ 162,673      $ 141,301      $ 13,166        $ 154,467      $ 129,401      $ 6,863        $ 136,264   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EBITDA (f)

   $ 151,167      $ 12,399        $ 163,566      $ 144,046      $ 13,228        $ 157,274      $ 131,720      $ 6,916        $ 138,636   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

 

(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 June 30, 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 June 30, 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 June 30, 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 June 30, 2013, 2012 and 2011.

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