Attached files
| file | filename |
|---|---|
| 8-K - SWFT-03.08.2017-8K-MID-QUARTER CALL AND SEGMENT RECAST - Knight-Swift Transportation Holdings Inc. | swft-03082017x8kxmidxquart.htm |
| EX-99.3 - QUARTERLY OPERATING STATISTICS BY REPORTABLE SEGMENT (UNAUDITED) - Knight-Swift Transportation Holdings Inc. | exhibit993quarterlyoperati.htm |
| EX-99.2 - QUARTERY FINANCIAL INFORMATION BY SEGMENT (UNAUDITED) - Knight-Swift Transportation Holdings Inc. | exhibit992quarterlyfinanci.htm |
| EX-99.1 - Q1 MID-FIRST QUARTER CONFERENCE CALL TRANSCRIPT, DATED MARCH 8, 2017 - Knight-Swift Transportation Holdings Inc. | exhibit991mid-firstquarter.htm |
Exhibit 99.4
NON-GAAP RECONCILIATION:
QUARTERLY ADJUSTED OPERATING RATIO BY REPORTABLE SEGMENT (UNAUDITED)(1)(2)
FOR THE TWO-YEAR PERIOD ENDED DECEMBER 31, 2016
(Dollars in thousands)
Three Months Ended | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | 2015 | 2016 | |||||||||||||||||||||||||||||||
Truckload: | ||||||||||||||||||||||||||||||||||||||||
Operating revenue | $ | 538,341 | $ | 555,715 | $ | 552,816 | $ | 557,242 | $ | 492,522 | $ | 517,593 | $ | 516,692 | $ | 521,242 | $ | 2,204,114 | $ | 2,048,049 | ||||||||||||||||||||
Less: Fuel surcharge revenue | (69,561 | ) | (70,281 | ) | (63,363 | ) | (53,945 | ) | (36,705 | ) | (43,847 | ) | (47,549 | ) | (48,575 | ) | (257,150 | ) | (176,676 | ) | ||||||||||||||||||||
Revenue xFSR | 468,780 | 485,434 | 489,453 | 503,297 | 455,817 | 473,746 | 469,143 | 472,667 | 1,946,964 | 1,871,373 | ||||||||||||||||||||||||||||||
Operating expense | 481,487 | 487,771 | 495,804 | 482,045 | 456,235 | 467,118 | 469,022 | 473,893 | 1,947,107 | 1,866,268 | ||||||||||||||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (69,561 | ) | (70,281 | ) | (63,363 | ) | (53,945 | ) | (36,705 | ) | (43,847 | ) | (47,549 | ) | (48,575 | ) | (257,150 | ) | (176,676 | ) | ||||||||||||||||||||
Adjusted operating expense | 411,926 | 417,490 | 432,441 | 428,100 | 419,530 | 423,271 | 421,473 | 425,318 | 1,689,957 | 1,689,592 | ||||||||||||||||||||||||||||||
Operating Ratio | 89.4 | % | 87.8 | % | 89.7 | % | 86.5 | % | 92.6 | % | 90.2 | % | 90.8 | % | 90.9 | % | 88.3 | % | 91.1 | % | ||||||||||||||||||||
Adjusted Operating Ratio | 87.9 | % | 86.0 | % | 88.4 | % | 85.1 | % | 92.0 | % | 89.3 | % | 89.8 | % | 90.0 | % | 86.8 | % | 90.3 | % | ||||||||||||||||||||
Dedicated: | ||||||||||||||||||||||||||||||||||||||||
Operating revenue | $ | 135,929 | $ | 146,812 | $ | 145,381 | $ | 152,243 | $ | 142,911 | $ | 146,119 | $ | 156,382 | $ | 161,491 | $ | 580,365 | $ | 606,903 | ||||||||||||||||||||
Less: Fuel surcharge revenue | (17,276 | ) | (17,963 | ) | (15,975 | ) | (13,322 | ) | (9,222 | ) | (11,432 | ) | (12,904 | ) | (13,576 | ) | (64,536 | ) | (47,134 | ) | ||||||||||||||||||||
Revenue xFSR | 118,653 | 128,849 | 129,406 | 138,921 | 133,689 | 134,687 | 143,478 | 147,915 | 515,829 | 559,769 | ||||||||||||||||||||||||||||||
Operating expense | 124,856 | 128,634 | 130,717 | 132,100 | 124,170 | 125,601 | 132,775 | 142,240 | 516,307 | 524,786 | ||||||||||||||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (17,276 | ) | (17,963 | ) | (15,975 | ) | (13,322 | ) | (9,222 | ) | (11,432 | ) | (12,904 | ) | (13,576 | ) | (64,536 | ) | (47,134 | ) | ||||||||||||||||||||
Adjusted operating expense | 107,580 | 110,671 | 114,742 | 118,778 | 114,948 | 114,169 | 119,871 | 128,664 | 451,771 | 477,652 | ||||||||||||||||||||||||||||||
Operating Ratio | 91.9 | % | 87.6 | % | 89.9 | % | 86.8 | % | 86.9 | % | 86.0 | % | 84.9 | % | 88.1 | % | 89.0 | % | 86.5 | % | ||||||||||||||||||||
Adjusted Operating Ratio | 90.7 | % | 85.9 | % | 88.7 | % | 85.5 | % | 86.0 | % | 84.8 | % | 83.5 | % | 87.0 | % | 87.6 | % | 85.3 | % | ||||||||||||||||||||
Refrigerated: | ||||||||||||||||||||||||||||||||||||||||
Operating revenue | $ | 177,414 | $ | 185,089 | $ | 182,181 | $ | 182,859 | $ | 169,688 | $ | 178,162 | $ | 177,435 | $ | 180,338 | $ | 727,543 | $ | 705,623 | ||||||||||||||||||||
Less: Fuel surcharge revenue | (18,834 | ) | (19,703 | ) | (15,351 | ) | (13,147 | ) | (6,699 | ) | (10,720 | ) | (11,417 | ) | (13,370 | ) | (67,035 | ) | (42,206 | ) | ||||||||||||||||||||
Revenue xFSR | 158,580 | 165,386 | 166,830 | 169,712 | 162,989 | 167,442 | 166,018 | 166,968 | 660,508 | 663,417 | ||||||||||||||||||||||||||||||
Operating expense | 169,343 | 174,183 | 176,650 | 171,610 | 164,903 | 165,427 | 190,959 | 170,814 | 691,786 | 692,103 | ||||||||||||||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (18,834 | ) | (19,703 | ) | (15,351 | ) | (13,147 | ) | (6,699 | ) | (10,720 | ) | (11,417 | ) | (13,370 | ) | (67,035 | ) | (42,206 | ) | ||||||||||||||||||||
Adjusted operating expense | 150,509 | 154,480 | 161,299 | 158,463 | 158,204 | 154,707 | 179,542 | 157,444 | 624,751 | 649,897 | ||||||||||||||||||||||||||||||
Operating Ratio | 95.5 | % | 94.1 | % | 97.0 | % | 93.8 | % | 97.2 | % | 92.9 | % | 107.6 | % | 94.7 | % | 95.1 | % | 98.1 | % | ||||||||||||||||||||
Adjusted Operating Ratio | 94.9 | % | 93.4 | % | 96.7 | % | 93.4 | % | 97.1 | % | 92.4 | % | 108.1 | % | 94.3 | % | 94.6 | % | 98.0 | % | ||||||||||||||||||||
Exhibit 99.4
Intermodal: | ||||||||||||||||||||||||||||||||||||||||
Operating revenue | $ | 90,354 | $ | 98,507 | $ | 100,966 | $ | 100,745 | $ | 82,548 | $ | 90,066 | $ | 92,260 | $ | 95,283 | $ | 390,572 | $ | 360,157 | ||||||||||||||||||||
Less: Fuel surcharge revenue | (13,090 | ) | (13,664 | ) | (12,903 | ) | (10,784 | ) | (6,692 | ) | (8,305 | ) | (9,294 | ) | (10,166 | ) | (50,441 | ) | (34,457 | ) | ||||||||||||||||||||
Revenue xFSR | 77,264 | 84,843 | 88,063 | 89,961 | 75,856 | 81,761 | 82,966 | 85,117 | 340,131 | 325,700 | ||||||||||||||||||||||||||||||
Operating expense | 91,597 | 96,906 | 100,243 | 97,698 | 85,456 | 89,163 | 91,902 | 94,183 | 386,444 | 360,704 | ||||||||||||||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (13,090 | ) | (13,664 | ) | (12,903 | ) | (10,784 | ) | (6,692 | ) | (8,305 | ) | (9,294 | ) | (10,166 | ) | (50,441 | ) | (34,457 | ) | ||||||||||||||||||||
Non-cash impairments | — | — | — | — | — | — | — | (37 | ) | — | (37 | ) | ||||||||||||||||||||||||||||
Adjusted operating expense | 78,507 | 83,242 | 87,340 | 86,914 | 78,764 | 80,858 | 82,608 | 83,980 | 336,003 | 326,210 | ||||||||||||||||||||||||||||||
Operating Ratio | 101.4 | % | 98.4 | % | 99.3 | % | 97.0 | % | 103.5 | % | 99.0 | % | 99.6 | % | 98.8 | % | 98.9 | % | 100.2 | % | ||||||||||||||||||||
Adjusted Operating Ratio | 101.6 | % | 98.1 | % | 99.2 | % | 96.6 | % | 103.8 | % | 98.9 | % | 99.6 | % | 98.7 | % | 98.8 | % | 100.2 | % | ||||||||||||||||||||
(1) | During the first quarter of 2017, Swift Transportation Company (the "Company") reorganized its reportable segments to reflect management’s revised reporting structure of its Dedicated and Refrigerated (formerly "Swift Refrigerated") reportable segments. In association with the reorganization, the operations of our dedicated grocery line of business, which was previously reported within the Company’s Dedicated segment, will now be reported within the Company's Refrigerated segment. This will result in all of our temperature-controlled lines of business reporting under the Refrigerated segment. |
(2) | Our definition of the non-GAAP measure, Adjusted Operating Ratio, starts with (a) operating expense and (b) operating revenue, which are GAAP financial measures. We subtract the following items from (a) to arrive at (c) adjusted operating expense: |
(i)fuel surcharge revenue,
(ii)amortization of the intangibles from our 2007 going-private transaction,
(iii)non-cash operating impairment charges,
(iv)other special non-cash items,
(v)excludable transaction costs, and
(vi)severance expense, including cash and equity award impact, related to the departure of certain executive leadership.
We then subtract fuel surcharge revenue from (b) to arrive at (d) Revenue xFSR. Adjusted Operating Ratio is equal to (c) adjusted operating expense as a percentage of (d) Revenue xFSR.
We net fuel surcharge revenue against fuel expense in the calculation of our Adjusted Operating Ratio, thereby excluding fuel surcharge revenue from operating revenue in the denominator. Because fuel surcharge revenue is so volatile, we believe excluding it provides for more transparency and comparability. Additionally, we believe that comparability of our performance is improved by excluding impairments, non-comparable intangibles from our 2007 going-private transaction and other special items.