Loading...
•
Jun 30, 2023
Knight-Swift Q2 2023 Earnings Report
Knight-Swift reported a decrease in revenue and earnings for Q2 2023 due to soft demand and pressure on pricing, while LTL segment remained a bright spot.
Key Takeaways
Knight-Swift Transportation Holdings Inc. reported a decrease in net income attributable to Knight-Swift to $63.3 million, with GAAP earnings per diluted share at $0.39. Consolidated total revenue decreased by 20.8% to $1.6 billion, and consolidated operating income decreased by 71.1% to $94.0 million.
Truckload Adjusted Operating Ratio was 91.8% with a 15.5% year-over-year decrease in revenue, excluding fuel surcharge and intersegment transactions.
LTL Adjusted Operating Ratio was 85.1%, with revenues, excluding fuel surcharge and intersegment transactions, increasing 2.0% year-over-year.
Logistics Adjusted Operating Ratio was 91.6% with a gross margin of 19.4%, while load count decreased 35.0% year-over-year.
Intermodal segment had a 106.4% operating ratio, as revenue per load declined 24.5%, partially offset by load count growth of 4.0% year-over year.
Knight-Swift
Knight-Swift
Knight-Swift Revenue by Segment
Revenue by Segment
Truckload Revenue
CapyFin.comLTL Revenue
CapyFin.comLogistics Revenue
CapyFin.comIntermodal Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Knight-Swift now expects that Adjusted EPS for full-year 2023 will range from $2.10 to 2.30, which includes a projected U.S. Xpress loss of $0.25 to $0.30 post acquisition, inclusive of incremental interest expense associated with the acquisition.
Positive Outlook
- Truckload tractor count to be down modestly with miles per tractor improving slightly on a year-over-year basis in the second half of the year
- LTL revenue, excluding fuel surcharge increases modestly year-over-year with relatively stable sequential margin profile subject to typical seasonality
- Logistics volume and revenue per load remains under pressure in the third quarter before improving sequentially in the fourth quarter, with an operating ratio of approximately 90% for the year
- Intermodal Operating Ratio roughly breakeven for the full year with volumes up year-over-year
- Non-reportable to have modest revenue growth for the year and operating income in the second half roughly in line on a year-over-year basis as insurance losses are expected to moderate
Challenges Ahead
- Truckload rates continue to be pressured, with a year-over-year decrease in overall revenue per mile of high single to low double digit percent for the full year
- U.S. Xpress projected loss of $0.25 to $0.30 post acquisition, inclusive of incremental interest expense associated with the acquisition.
- Expect approximately $20 million increase in interest expense in the second half of 2023 as compared to the first half, reflecting approximately $800 million additional debt from U.S. Xpress acquisition and assuming Fed hiking cycle is nearly complete
- Net cash capital expenditures for the full year 2023 expected range of $700 million - $750 million, which has been updated from $640 million to $690 million to include anticipated expenditures for U.S. Xpress.
- Expected tax rate of 25% to 26% for the full year 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income