Knight-Swift Transportation Holdings Inc. - FORM 8-K - EX-99.3 - 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-99.7 - 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-99.1 - 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 99.3

CONSOLIDATING STATEMENT OF OPERATIONS (UNAUDITED) (a)

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

(IN THOUSANDS)

 

    Six Months Ended June 30, 2013     Six Months Ended June 30, 2012     Six 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

   $ 1,754,898      $ 256,610      $ (829 )    $ 2,010,679      $ 1,699,469      $ 237,223      $ (791 )    $ 1,935,901      $ 1,609,359      $ 214,389      $ (1,168 )    $ 1,822,580   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

                        

Salaries, wages and employee benefits

     409,364        40,973        —          450,337        398,753        37,940        —          436,693        398,032        34,973        —          433,005   

Operating supplies and expenses

     128,801        22,262        —          151,063        118,421        22,019        —          140,440        115,870        21,561        —          137,431   

Fuel

     296,259        32,743        —          329,002        298,829        32,804        —          331,633        318,818        33,308        —          352,126   

Purchased transportation

     502,288        98,395        (410 )      600,273        485,887        90,020        (521 )      575,386        417,717        78,349        (886 )      495,180   

Rental expense

     59,792        23,868        (41 )      83,619        50,075        19,579        (50 )      69,604        37,213        20,344        (41 )      57,516   

Insurance and claims

     56,978        8,535        (378 )      65,135        56,858        6,879        (220 )      63,517        50,601        7,815        (241 )      58,175   

Depreciation and amortization of property and equipment

     102,859        8,891        —          111,750        100,783        9,577        —          110,360        101,911        5,910        —          107,821   

Amortization of intangibles

     8,407        —          —          8,407        8,518        —          —          8,518        9,344        —          —          9,344   

Impairments

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

Gain on disposal of property and equipment

     (7,035 )      (956 )      —          (7,991 )      (7,868 )      (1,676 )      —          (9,544 )      (2,955 )      (168 )      —          (3,123 ) 

Communication and utilities

     11,525        941        —          12,466        12,221        1,078        —          13,299        12,795        1,071        —          13,866   

Operating taxes and licenses

     31,392        5,242        —          36,634        31,348        4,960        —          36,308        30,717        4,790        —          35,507   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expense

     1,600,630        240,894        (829 )      1,840,695        1,554,890        223,180        (791 )      1,777,279        1,490,063        207,953        (1,168 )      1,696,848   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     154,268        15,716        —          169,984        144,579        14,043        —          158,622        119,296        6,436        —          125,732   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other (income) expenses:

                        

Interest expense

     49,334        1,790        —          51,124        62,329        2,099        —          64,428        74,132        1,658        —          75,790   

Derivative interest expense

     1,094        —          —          1,094        4,653        —          —          4,653        8,683        —          —          8,683   

Interest income

     (1,090 )      (47 )      —          (1,137 )      (836 )      (33 )      —          (869 )      (938 )      (38 )      —          (976 ) 

Loss on debt extinguishment

     5,044        —          —          5,044        22,219        —          —          22,219        —          —          —          —     

Gain on sale of real property

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

Other

     (1,819 )      (65 )      —          (1,884 )      (1,901 )      (142 )      —          (2,043 )      (1,175 )      (201 )      —          (1,376 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other (income) expenses, net

     46,485        1,678        —          48,163        86,464        1,924        —          88,388        80,702        1,419        —          82,121   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     107,783        14,038        —          121,821        58,115        12,119        —          70,234        38,594        5,017        —          43,611   

Income tax expense

     41,501        149        —          41,650        18,228        259        —          18,487        15,806        88        —          15,894   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 66,282      $ 13,889      $ —        $ 80,171      $ 39,887      $ 11,860      $ —        $ 51,747      $ 22,788      $ 4,929      $ —        $ 27,717   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP Diluted EPS

   $ 0.47      $ 0.10 (d)      $ 0.57      $ 0.29      $ 0.08 (d)      $ 0.37      $ 0.16      $ 0.04 (d)      $ 0.20   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EPS (c)

   $ 0.52      $ 0.06 (d)      $ 0.59      $ 0.41      $ 0.05 (d)      $ 0.46      $ 0.24      $ 0.02 (d)      $ 0.27   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Diluted weighted average shares used in per share calculation

     141,652        141,652 (d)        141,652        139,652        139,652 (d)        139,652        139,812        139,812 (d)        139,812   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Operating Ratio

     91.2 %      93.9 %        91.5 %      91.5 %      94.1 %        91.8 %      92.6 %      97.0 %        93.1 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted Operating Ratio (e)

     88.5 %      92.3 %        89.0 %      88.7 %      92.4 %        89.2 %      90.1 %      96.2 %        90.8 % 
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

EBITDA

   $ 268,387      $ 24,672        $ 293,059      $ 233,562      $ 23,762        $ 257,324      $ 231,726      $ 12,547        $ 244,273   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Adjusted EBITDA (f)

   $ 274,809      $ 24,792        $ 299,601      $ 259,579      $ 23,885        $ 283,464      $ 236,469      $ 12,635        $ 249,104   
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

 

(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 six 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 six 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 six 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 six months ended June 30, 2013, 2012 and 2011.

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