Knight Transportation, Inc. (NYSE: KNX), one of North America’s largest
and most diversified truckload transportation companies, today reported
revenue and net income for the second quarter and six months ended June
30, 2015.
Key financial highlights for the second quarter and first six months of
2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
% Chg
|
|
2015
|
|
2014
|
|
% Chg
|
|
Total revenue
|
|
$
|
301,822
|
|
$
|
264,155
|
|
14.3
|
%
|
|
$
|
592,103
|
|
$
|
513,318
|
|
15.3
|
%
|
|
Revenue, excluding trucking fuel surcharge
|
|
$
|
268,623
|
|
$
|
218,908
|
|
22.7
|
%
|
|
$
|
525,837
|
|
$
|
424,504
|
|
23.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
41,619
|
|
$
|
38,899
|
|
7.0
|
%
|
|
$
|
87,922
|
|
$
|
70,149
|
|
25.3
|
%
|
|
Adjusted operating income(1)
|
|
$
|
48,782
|
|
$
|
38,899
|
|
25.4
|
%
|
|
$
|
95,085
|
|
$
|
70,149
|
|
35.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, attributable to Knight
|
|
$
|
27,638
|
|
$
|
25,761
|
|
7.3
|
%
|
|
$
|
57,200
|
|
$
|
44,824
|
|
27.6
|
%
|
|
Adjusted net income, attributable to Knight(2)
|
|
$
|
32,033
|
|
$
|
25,761
|
|
24.3
|
%
|
|
$
|
61,595
|
|
$
|
44,824
|
|
37.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share
|
|
$
|
0.33
|
|
$
|
0.31
|
|
6.0
|
%
|
|
$
|
0.69
|
|
$
|
0.55
|
|
25.4
|
%
|
|
Adjusted earnings per diluted share(2)
|
|
$
|
0.39
|
|
$
|
0.31
|
|
22.8
|
%
|
|
$
|
0.74
|
|
$
|
0.55
|
|
35.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company previously announced a quarterly cash dividend of $0.06 per
share to shareholders of record on June 5, 2015, which was paid on June
26, 2015.
Dave Jackson, President and Chief Executive Officer, commented on the
quarter, “During the second quarter we continued to successfully execute
our internal initiatives to grow our business, improve margins, and
drive operational efficiencies. We grew our consolidated revenue,
excluding trucking fuel surcharge, by 22.7% while improving our adjusted
operating income by 25.4%. Both our trucking and logistics segments
contributed to our growth as we continue to expand our service offerings
to meet the ever-changing supply chain needs of our customers.”
During the second quarter of 2015 we accrued $7.2 million of expense
($4.4 million after-tax) related to expected settlement costs for two
class action lawsuits involving employment-related claims in California
and Oregon. We have provided adjusted financial information that
excludes these expenses from our results of operations. We believe the
comparability of our results is improved by excluding these infrequent
expenses that are unrelated to our core operations.
The following chart reflects our consolidated financial performance and
that of our trucking and our logistics segments for the second quarter
and first six months of 2015 and 2014.
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|
|
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(dollars in thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
Chg
|
|
2015
|
|
2014
|
|
Chg
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, excluding trucking fuel surcharge
|
|
$
|
268,623
|
|
|
$
|
218,908
|
|
|
22.7
|
%
|
|
$
|
525,837
|
|
|
$
|
424,504
|
|
|
23.9
|
%
|
|
Adjusted operating income(1)
|
|
$
|
48,782
|
|
|
$
|
38,899
|
|
|
25.4
|
%
|
|
$
|
95,085
|
|
|
$
|
70,149
|
|
|
35.5
|
%
|
|
Adjusted operating ratio(1)
|
|
|
81.8
|
%
|
|
|
82.2
|
%
|
|
-40 bps
|
|
|
81.9
|
%
|
|
|
83.5
|
%
|
|
-160 bps
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, excluding trucking fuel surcharge
|
|
$
|
212,368
|
|
|
$
|
171,021
|
|
|
24.2
|
%
|
|
$
|
414,573
|
|
|
$
|
332,848
|
|
|
24.6
|
%
|
|
Adjusted operating income(3)
|
|
$
|
45,107
|
|
|
$
|
35,856
|
|
|
25.8
|
%
|
|
$
|
87,254
|
|
|
$
|
64,977
|
|
|
34.3
|
%
|
|
Adjusted operating ratio(3)
|
|
|
78.8
|
%
|
|
|
79.0
|
%
|
|
-20 bps
|
|
|
79.0
|
%
|
|
|
80.5
|
%
|
|
-150 bps
|
|
Logistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
56,255
|
|
|
$
|
47,887
|
|
|
17.5
|
%
|
|
$
|
111,264
|
|
|
$
|
91,656
|
|
|
21.4
|
%
|
|
Operating income
|
|
$
|
3,675
|
|
|
$
|
3,043
|
|
|
20.8
|
%
|
|
$
|
7,831
|
|
|
$
|
5,172
|
|
|
51.4
|
%
|
|
Operating ratio
|
|
|
93.5
|
%
|
|
|
93.6
|
%
|
|
-10 bps
|
|
|
93.0
|
%
|
|
|
94.4
|
%
|
|
-140 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
In the second quarter, the trucking segment adjusted operating ratio
improved to 78.8% from 79.0% for the same quarter last year. The
trucking segment experienced revenue growth, excluding trucking fuel
surcharge, of 24.2% while improving adjusted operating income by 25.8%.
Despite less transactional customer demand, we continue to experience
positive results from our efforts to improve yield. Revenue per tractor,
excluding fuel surcharge, increased 2.7%, year over year, attributable
to a 6.7% improvement in revenue per loaded mile, a 2.6% increase in
length of haul, off-set by a 1.4% decrease in average miles per tractor,
and an increase in our non-paid empty mile percentage. Our improvements
in our revenue per tractor were partially offset by increased salaries
and wages, increased driver recruiting and hiring costs, and rising
equipment prices.
In the second quarter, the logistics segment operating ratio improved to
93.5% from 93.6% for the same quarter last year. We continued to grow
profitably by increasing revenue 17.5% while improving operating income
by 20.8%. Our brokerage business, which is the largest component of our
logistics segment, increased revenue 31.3% with a 38.4% improvement in
operating income, when compared to the same quarter last year. Load
volume in the brokerage business increased 64.3% while revenue per load
was negatively impacted primarily as a result of lower fuel surcharge
and a shorter length of haul. Revenue in our intermodal business
declined year over year 16.1%, however, we achieved an 89.5% operating
ratio as compared to 99.0% the same quarter last year. We continue to
invest in our logistics capabilities in order to provide more solutions
to our customers, while improving our return on capital.
Attracting and retaining high quality driving associates remains a
significant challenge. The current shortage of qualified driving
associates has been and will continue to be a headwind for adding
additional capacity. Our driver development and training programs remain
a primary focus area for our management team.
Our tractor fleet remains one of the most modern fleets in the industry
with an average age of 1.7 years. The used equipment market remained
strong during the quarter and resulted in gain on sale of revenue
equipment in the second quarter of 2015 of $5.2 million, compared to
$4.6 million in the second quarter of 2014.
Our reported effective tax rate for the quarter was 36.3%, compared with
37.6% in the second quarter last year. The difference in tax rate year
over year amounted to an increase of approximately $0.01 to our diluted
earnings per share.
During the second quarter of 2015 we purchased approximately 1.0 million
shares of our common stock for $30.3 million. We currently have
approximately 6.4 million shares available under our stock repurchase
authorization. Over the last twelve months ended June 30, 2015 we have
returned $50.3 million to our shareholders in the form of quarterly
dividends and stock repurchases. We ended the quarter with $10.9 million
of cash, $85.0 million of long term debt, and $700.2 million of
shareholders' equity. Our net capital expenditures for the quarter were
$33.9 million, while our cash flow from operations was $49.4 million.
The company will hold a conference call on July 22, 2015, at 4:30 PM
EDT, to further discuss its results of operations for the quarter ended
June 30, 2015. The dial in number for this conference call is
1-855-733-9163. Slides to accompany this call will be posted on the
company’s website and will be available to download prior to the
scheduled conference time. To view the presentation, please visit http://investor.knighttrans.com/events,
''Second Quarter 2015 Conference Call Presentation.''
Adjusted operating income, adjusted operating ratio, adjusted net income
attributable to Knight, and adjusted earnings per diluted share (EPS)
are non-GAAP financial measures and are not intended to replace
financial measures calculated in accordance with GAAP. These non-GAAP
financial measures supplement our GAAP results in evaluating certain
parts of our business. We believe that using these measures affords a
more consistent basis for comparing our results of operations from
period to period. The information required by Item 10(e) of Regulation
S-K under the Securities Act of 1933 and the Securities Exchange Act of
1934 and Regulation G under the Securities Exchange Act of 1934,
including a reconciliation to their most directly comparable financial
measures calculated in accordance with GAAP, is included in the tables
at the end of this press release.
Knight Transportation, Inc. is a provider of multiple truckload
transportation and logistics services using a nationwide network of
business units and service centers in the U.S. to serve customers
throughout North America. In addition to operating one of the country’s
largest tractor fleets, Knight also contracts with third-party equipment
providers to provide a broad range of truckload services to its
customers while creating quality driving jobs for our driving associates
and successful business opportunities for independent contractors.
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|
|
INCOME STATEMENT DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(Unaudited, in thousands, except per share amounts)
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Revenue, before fuel surcharge
|
|
$
|
268,623
|
|
|
$
|
218,908
|
|
|
$
|
525,837
|
|
|
$
|
424,504
|
|
|
Fuel surcharge
|
|
|
33,199
|
|
|
|
45,247
|
|
|
|
66,266
|
|
|
|
88,814
|
|
|
TOTAL REVENUE
|
|
|
301,822
|
|
|
|
264,155
|
|
|
|
592,103
|
|
|
|
513,318
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
84,381
|
|
|
|
64,750
|
|
|
|
164,407
|
|
|
|
125,483
|
|
|
Fuel expense - gross
|
|
|
42,362
|
|
|
|
52,192
|
|
|
|
80,451
|
|
|
|
104,201
|
|
|
Operations and maintenance
|
|
|
21,547
|
|
|
|
17,156
|
|
|
|
41,675
|
|
|
|
34,176
|
|
|
Insurance and claims
|
|
|
7,995
|
|
|
|
7,462
|
|
|
|
16,928
|
|
|
|
14,885
|
|
|
Operating taxes and licenses
|
|
|
4,725
|
|
|
|
3,861
|
|
|
|
10,581
|
|
|
|
7,926
|
|
|
Communications
|
|
|
1,077
|
|
|
|
1,178
|
|
|
|
2,217
|
|
|
|
2,457
|
|
|
Depreciation and amortization
|
|
|
27,364
|
|
|
|
21,951
|
|
|
|
54,524
|
|
|
|
43,738
|
|
|
Purchased transportation
|
|
|
60,619
|
|
|
|
56,319
|
|
|
|
120,164
|
|
|
|
108,288
|
|
|
Miscellaneous operating expenses
|
|
|
10,133
|
|
|
|
387
|
|
|
|
13,234
|
|
|
|
2,015
|
|
|
Total operating expenses
|
|
|
260,203
|
|
|
|
225,256
|
|
|
|
504,181
|
|
|
|
443,169
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
41,619
|
|
|
|
38,899
|
|
|
|
87,922
|
|
|
|
70,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
104
|
|
|
|
109
|
|
|
|
236
|
|
|
|
222
|
|
|
Interest expense
|
|
|
(211
|
)
|
|
|
(87
|
)
|
|
|
(493
|
)
|
|
|
(204
|
)
|
|
Other income
|
|
|
2,436
|
|
|
|
2,591
|
|
|
|
4,899
|
|
|
|
3,457
|
|
|
Income before income taxes
|
|
|
43,948
|
|
|
|
41,512
|
|
|
|
92,564
|
|
|
|
73,624
|
|
|
INCOME TAXES
|
|
|
15,759
|
|
|
|
15,496
|
|
|
|
34,434
|
|
|
|
28,276
|
|
|
Net income
|
|
|
28,189
|
|
|
|
26,016
|
|
|
|
58,130
|
|
|
|
45,348
|
|
|
Net income attributable to noncontrolling interest
|
|
|
(551
|
)
|
|
|
(255
|
)
|
|
|
(930
|
)
|
|
|
(524
|
)
|
|
NET INCOME ATTRIBUTABLE TO KNIGHT TRANSPORTATION
|
|
$
|
27,638
|
|
|
$
|
25,761
|
|
|
$
|
57,200
|
|
|
$
|
44,824
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share
|
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
0.70
|
|
|
$
|
0.56
|
|
|
Diluted Earnings Per Share
|
|
$
|
0.33
|
|
|
$
|
0.31
|
|
|
$
|
0.69
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Basic
|
|
|
81,894
|
|
|
|
80,864
|
|
|
|
81,959
|
|
|
|
80,684
|
|
|
Weighted Average Shares Outstanding - Diluted
|
|
|
82,852
|
|
|
|
81,835
|
|
|
|
83,020
|
|
|
|
81,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA:
|
|
|
|
|
|
|
06/30/15
|
|
12/31/14
|
|
ASSETS
|
|
|
|
|
(Unaudited, in thousands)
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
10,930
|
|
$
|
17,066
|
|
Trade receivables, net of allowance for doubtful accounts
|
|
|
|
|
134,960
|
|
|
143,531
|
|
Notes receivable, net of allowance for doubtful accounts
|
|
|
|
|
804
|
|
|
1,020
|
|
Prepaid expenses
|
|
|
|
|
|
16,044
|
|
|
17,423
|
|
Assets held for sale
|
|
|
|
|
|
12,159
|
|
|
23,248
|
|
Other current assets
|
|
|
|
|
|
13,297
|
|
|
13,345
|
|
Income Tax Receivable
|
|
|
|
|
|
6,733
|
|
|
19,432
|
|
Current deferred tax assets
|
|
|
|
|
|
5,094
|
|
|
3,187
|
|
Total Current Assets
|
|
|
|
|
|
200,021
|
|
|
238,252
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
771,754
|
|
|
752,046
|
|
Notes receivable, long-term
|
|
|
|
|
|
3,827
|
|
|
4,065
|
|
Goodwill
|
|
|
|
|
|
47,058
|
|
|
47,067
|
|
Intangible Assets, net
|
|
|
|
|
|
3,325
|
|
|
3,575
|
|
Other assets and restricted cash
|
|
|
|
|
|
27,749
|
|
|
37,280
|
|
Total Long-term Assets
|
|
|
|
|
|
853,713
|
|
|
844,033
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
$
|
1,053,734
|
|
$
|
1,082,285
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
28,074
|
|
$
|
19,122
|
|
Accrued payroll and purchased transportation
|
|
|
|
|
|
24,581
|
|
|
34,127
|
|
Accrued liabilities
|
|
|
|
|
|
29,287
|
|
|
20,604
|
|
Claims accrual - current portion
|
|
|
|
|
|
19,325
|
|
|
18,532
|
|
Dividend payable - current portion
|
|
|
|
|
|
303
|
|
|
200
|
|
Total Current Liabilities
|
|
|
|
|
|
101,570
|
|
|
92,585
|
|
|
|
|
|
|
|
|
|
|
Claims accrual - long-term portion
|
|
|
|
|
|
12,066
|
|
|
11,505
|
|
Long-term dividend payable and other liabilities
|
|
|
|
|
|
2,168
|
|
|
2,513
|
|
Deferred tax liabilities
|
|
|
|
|
|
150,872
|
|
|
162,007
|
|
Long-term debt
|
|
|
|
|
|
85,000
|
|
|
134,400
|
|
Total Long-term Liabilities
|
|
|
|
|
|
250,106
|
|
|
310,425
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
351,676
|
|
|
403,010
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
813
|
|
|
818
|
|
Additional paid-in capital
|
|
|
|
|
|
198,369
|
|
|
185,184
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
6,178
|
|
|
12,231
|
|
Retained earnings
|
|
|
|
|
|
494,855
|
|
|
479,527
|
|
Total Knight Transportation Shareholders' Equity
|
|
|
|
|
700,215
|
|
|
677,760
|
|
Noncontrolling interest
|
|
|
|
|
|
1,843
|
|
|
1,515
|
|
Total Shareholders' Equity
|
|
|
|
|
|
702,058
|
|
|
679,275
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
|
$
|
1,053,734
|
|
$
|
1,082,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
(Unaudited)
|
|
|
|
|
(Unaudited)
|
|
|
|
OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Tractor*
|
|
$
|
44,087
|
|
|
$
|
42,938
|
|
|
2.7
|
%
|
|
|
$
|
86,532
|
|
|
$
|
83,546
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-paid Empty Mile Percent
|
|
|
11.6
|
%
|
|
|
9.4
|
%
|
|
23.4
|
%
|
|
|
|
11.6
|
%
|
|
|
9.5
|
%
|
|
22.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Haul
|
|
|
510
|
|
|
|
497
|
|
|
2.6
|
%
|
|
|
|
505
|
|
|
|
499
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Ratio (1)
|
|
|
81.8
|
%
|
|
|
82.2
|
%
|
|
|
|
|
|
81.9
|
%
|
|
|
83.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tractors - Total
|
|
|
4,817
|
|
|
|
3,983
|
|
|
|
|
|
|
4,791
|
|
|
|
3,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Trailers - Total
|
|
|
11,588
|
|
|
|
9,046
|
|
|
|
|
|
|
11,491
|
|
|
|
9,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Capital Expenditures (in thousands)
|
|
$
|
33,852
|
|
|
$
|
55,632
|
|
|
|
|
|
$
|
39,610
|
|
|
$
|
61,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From Operations (in thousands)
|
|
$
|
49,439
|
|
|
$
|
41,365
|
|
|
|
|
|
$
|
107,711
|
|
|
$
|
77,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes trucking segment revenue excluding fuel surcharge.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation Schedules:
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Non-GAAP reconciliation
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income, operating ratio, and adjusted operating
ratio reconciliation (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
301,822
|
|
|
|
264,155
|
|
|
|
|
592,103
|
|
|
|
513,318
|
|
|
Less: Trucking fuel surcharge
|
|
|
33,199
|
|
|
|
45,247
|
|
|
|
|
66,266
|
|
|
|
88,814
|
|
|
Revenue, excluding trucking fuel surcharge
|
|
|
268,623
|
|
|
|
218,908
|
|
|
|
|
525,837
|
|
|
|
424,504
|
|
|
Operating expense
|
|
|
260,203
|
|
|
|
225,256
|
|
|
|
|
504,181
|
|
|
|
443,169
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Trucking fuel surcharge
|
|
|
(33,199
|
)
|
|
|
(45,247
|
)
|
|
|
|
(66,266
|
)
|
|
|
(88,814
|
)
|
|
Accrual for class action lawsuits (b)
|
|
|
(7,163
|
)
|
|
|
-
|
|
|
|
|
(7,163
|
)
|
|
|
-
|
|
|
Adjusted operating expenses
|
|
|
219,841
|
|
|
|
180,009
|
|
|
|
|
430,752
|
|
|
|
354,355
|
|
|
Adjusted operating income
|
|
|
48,782
|
|
|
|
38,899
|
|
|
|
|
95,085
|
|
|
|
70,149
|
|
|
Operating ratio
|
|
|
86.2
|
%
|
|
|
85.3
|
%
|
|
|
|
85.2
|
%
|
|
|
86.3
|
%
|
|
Adjusted operating ratio
|
|
|
81.8
|
%
|
|
|
82.2
|
%
|
|
|
|
81.9
|
%
|
|
|
83.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
Non-GAAP reconciliation
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to Knight and adjusted earnings
per diluted share reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Knight
|
|
$
|
27,638
|
|
|
$
|
25,761
|
|
|
|
$
|
57,200
|
|
|
$
|
44,824
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Accrual for class action lawsuits (net of tax)(b)
|
|
$
|
4,395
|
|
|
|
-
|
|
|
|
$
|
4,395
|
|
|
|
-
|
|
|
Adjusted net income attributable to Knight
|
|
$
|
32,033
|
|
|
$
|
25,761
|
|
|
|
$
|
61,595
|
|
|
$
|
44,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding - Diluted
|
|
|
82,852
|
|
|
|
81,835
|
|
|
|
|
83,020
|
|
|
|
81,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share
|
|
$
|
0.334
|
|
|
$
|
0.315
|
|
|
|
$
|
0.689
|
|
|
$
|
0.549
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Accrual for class action lawsuits (b)
|
|
$
|
0.053
|
|
|
$
|
0.000
|
|
|
|
$
|
0.053
|
|
|
$
|
0.000
|
|
|
Adjusted earnings per diluted share
|
|
$
|
0.387
|
|
|
$
|
0.315
|
|
|
|
$
|
0.742
|
|
|
$
|
0.549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
Non-GAAP reconciliation
|
|
|
|
|
|
|
|
|
|
|
Operating ratio and adjusted operating ratio for trucking segment (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited, in thousands, except per share amounts)
|
|
Trucking
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
245,567
|
|
|
|
216,268
|
|
|
|
|
480,839
|
|
|
|
421,662
|
|
|
Less: Trucking fuel surcharge
|
|
|
33,199
|
|
|
|
45,247
|
|
|
|
|
66,266
|
|
|
|
88,814
|
|
|
Revenue, excluding trucking fuel surcharge
|
|
|
212,368
|
|
|
|
171,021
|
|
|
|
|
414,573
|
|
|
|
332,848
|
|
|
Operating expense
|
|
|
207,623
|
|
|
|
180,412
|
|
|
|
|
400,748
|
|
|
|
356,685
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Trucking fuel surcharge
|
|
|
(33,199
|
)
|
|
|
(45,247
|
)
|
|
|
|
(66,266
|
)
|
|
|
(88,814
|
)
|
|
Accrual for class action lawsuits (b)
|
|
|
(7,163
|
)
|
|
|
-
|
|
|
|
|
(7,163
|
)
|
|
|
-
|
|
|
Adjusted operating expenses
|
|
|
167,261
|
|
|
|
135,165
|
|
|
|
|
327,319
|
|
|
|
267,871
|
|
|
Adjusted operating income
|
|
|
45,107
|
|
|
|
35,856
|
|
|
|
|
87,254
|
|
|
|
64,977
|
|
|
Operating ratio
|
|
|
84.5
|
%
|
|
|
83.4
|
%
|
|
|
|
83.3
|
%
|
|
|
84.6
|
%
|
|
Adjusted operating ratio
|
|
|
78.8
|
%
|
|
|
79.0
|
%
|
|
|
|
79.0
|
%
|
|
|
80.5
|
%
|
|
|
|
(a) Operating ratio as reported in this press release is based upon
total operating expenses, net of fuel surcharge, as a percentage of
revenue before fuel surcharge. We measure our revenue, before fuel
surcharge, and our operating expenses, net of fuel surcharge,
because we believe that eliminating this sometimes volatile source
of revenue affords a more consistent basis for comparing our results
of operations from period to period.
|
|
|
|
|
(b) During the second quarter of 2015 we accrued $7.2 million of
expense ($4.4 million after-tax) related to two class action
lawsuits involving employment related claims.
|
|
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements generally may be identified by their use
of terms or phrases such as ''expects,'' ''estimates,''
''anticipates,'' ''projects,'' ''believes,'' ''plans,''
''intends,'' ''may,'' ''will,'' ''should,'' ''could,''
''potential,'' ''continue,'' ''future,'' and terms or phrases of
similar substance. Forward-looking statements are based upon the
current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which
cannot be predicted or quantified, which could cause future events
and actual results to differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements.
Accordingly, actual results may differ from those set forth in the
forward-looking statements. Readers should review and consider the
factors that may affect future results and other disclosures by
the Company in its press releases, stockholder reports, Annual
Report on Form 10-K, and other filings with the Securities and
Exchange Commission. We disclaim any obligation to update or
revise any forward-looking statements to reflect actual results or
changes in the factors affecting the forward-looking information.
|
Knight Transportation, Inc.David A. Jackson, President and CEOorAdam W. Miller, CFO602-606-6315