Robust driver capacity growth ahead of fourth quarter and 2018
demand
-
Operating Revenues of $1.1 billion, an increase of 5% compared to
third quarter 2016
-
Net Income of $36.9 million, a slight increase compared to third
quarter 2016
-
Diluted Earnings Per Share of $0.21, compared to third quarter 2016
of $0.24
-
Adjusted Diluted Earnings Per Share of $0.23, compared to third
quarter 2016 of $0.24
-
Full year 2017 Adjusted Diluted Earnings Per Share guidance of
$0.92 to $0.97
GREEN BAY, Wis.--(BUSINESS WIRE)--
Schneider National, Inc. (NYSE: SNDR) (“Schneider” or the “Company”), a
leading transportation and logistics services company providing a broad
portfolio of premier truckload, intermodal and logistics solutions and
operating one of the largest for-hire trucking fleets in North America,
today announced results for the third quarter and nine months ended
September 30, 2017.
“In the third quarter, we saw improved demand/supply balance and
increased economic activity, resulting in accelerating pricing," noted
Chris Lofgren, Chief Executive Officer of Schneider. "This was offset by
cost pressures from driver recruiting and pay, continued refining of our
cost structure in the First to Final Mile service offering, as well as
lost revenue and productivity from the hurricanes. Our portfolio of
services displayed resiliency in the quarter as evidenced by our
Intermodal and Logistics segments. Our investments to grow Truckload
driver capacity in the third quarter positioned us well for the
opportunities we expect to emerge in the fourth quarter of 2017 and into
2018."
Lofgren continued, “I personally want to thank all of our associates for
their special efforts related to the two hurricanes. They contributed to
restoring the lives of the people impacted by these events, including
our fellow associates. We are committed as an organization to support
the rebuilding effort."
Results of Operations (unaudited)
The following table sets forth, for the periods indicated, the Company’s results of operations:
|
(in millions, except per share amounts)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating revenues
|
|
|
$
|
1,110.8
|
|
|
$
|
1,053.2
|
|
|
$
|
3,192.4
|
|
|
$
|
2,975.8
|
|
|
Adjusted enterprise revenue (excluding fuel surcharge)
|
|
|
$
|
1,016.9
|
|
|
$
|
971.9
|
|
|
$
|
2,915.6
|
|
|
$
|
2,766.1
|
|
|
Income from operations
|
|
|
$
|
64.1
|
|
|
$
|
70.8
|
|
|
$
|
186.6
|
|
|
$
|
202.5
|
|
|
Adjusted income from operations
|
|
|
$
|
69.2
|
|
|
$
|
72.4
|
|
|
$
|
181.7
|
|
|
$
|
204.1
|
|
|
Operating ratio
|
|
|
|
94.2
|
%
|
|
|
93.3
|
%
|
|
|
94.2
|
%
|
|
|
93.2
|
%
|
|
Adjusted operating ratio
|
|
|
|
93.2
|
%
|
|
|
92.6
|
%
|
|
|
93.8
|
%
|
|
|
92.6
|
%
|
|
Net income
|
|
|
$
|
36.9
|
|
|
$
|
36.8
|
|
|
$
|
106.0
|
|
|
$
|
109.1
|
|
|
Adjusted net income
|
|
|
$
|
40.0
|
|
|
$
|
37.8
|
|
|
$
|
103.0
|
|
|
$
|
110.1
|
|
|
Adjusted EBITDA
|
|
|
$
|
139.7
|
|
|
$
|
142.4
|
|
|
$
|
388.7
|
|
|
$
|
401.8
|
|
|
Diluted earnings per share
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.63
|
|
|
$
|
0.70
|
|
|
Adjusted diluted earnings per share
|
|
|
$
|
0.23
|
|
|
$
|
0.24
|
|
|
$
|
0.61
|
|
|
$
|
0.70
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
177.0
|
|
|
|
156.6
|
|
|
|
169.3
|
|
|
|
156.3
|
|
Results of Operations - Enterprise
Enterprise operating revenues for the third quarter of 2017 were
$1,110.8 million, an increase of $57.6 million, or 5%, compared to the
same quarter in 2016, primarily due to improved demand versus capacity
balances. In addition, increased revenue was generated from demand in
Intermodal and Logistics, productivity in Truckload, the Company's
leasing business, and fuel surcharge revenue.
Adjusted enterprise revenue (excluding fuel surcharge) for the third
quarter of 2017 was $1,016.9 million, an increase of $45.0 million, or
5%, compared to the same quarter in 2016. The combination of the storms,
an improving economy, and the historic surge in demand resulted in
positive movement in pricing across the board, including spot, fall
premium, and contract rates. Integrating this into the Quest platform
enabled the Company to quickly take advantage of these changes, and
favorably impacted revenue per truck per week and revenue per order. In
addition to the pure price impact, yield from productivity accelerated
toward the end of the quarter. Enterprise driver capacity increased over
550 sequentially from the second quarter of 2017; in anticipation of
fourth quarter 2017 and 2018 demand.
Enterprise income from operations for the third quarter of 2017 was
$64.1 million, a decrease of $6.7 million, or 9%, compared to the same
quarter in 2016, primarily due to increased driver costs and the net
negative impact of the two major hurricanes. The Company estimated that
the hurricanes had a $3.0 million net negative income from operations
impact due to lost revenue and productivity, and increased maintenance
and other costs, offset by improved pricing due to market volatility.
Additional factors that contributed to the decrease in income from
operations were decreased gains on sales of equipment, account start-up
costs, and continued refining of the cost structure in the Company's
First to Final Mile service offering, partially offset by truck and
container productivity improvements and effective freight selection.
Adjusted income from operations for the third quarter of 2017 was $69.2
million, a decrease of $3.2 million, or 4%, compared to same quarter in
2016. The Company adjusted its income from operations by $5.4 million
for the duplicate chassis costs related to the cost of idle rental units
due to its conversion to an owned chassis model. The Company is ahead of
its chassis conversion plan and expects it to be completed by the end of
2017 to coincide with the expiration of the existing lease requirements.
The Company also adjusted its income from operations to exclude other
material items in the applicable periods that do not reflect its core
operating performance. See the "Reconciliation of Non-GAAP Financial
Measures" at the end of this release for additional details.
Net interest expense in the third quarter of 2017 decreased $2.2 million
compared to the same quarter in 2016 due to lower debt levels. The
effective income tax rate was 39.2% for the three months ended September
30, 2017 and 42.9% for the same quarter in 2016, driven by the
settlement of Federal and state audits during the prior year. The
quarterly rate is based on the estimated annual effective tax rate. The
Company estimates the annual effective tax rate to be between 39.0% and
40.0%.
Net income for the third quarter of 2017 was $36.9 million, or $0.21 on
a weighted average diluted per share basis, an increase of $0.1 million
compared to same quarter in 2016. Net income as a percent of operating
revenues was 3.3% for the third quarter of 2017. Adjusted net income for
the third quarter of 2017 was $40.0 million, or $0.23 on a weighted
average diluted per share basis, an increase of $2.2 million, or 6%
compared to the same quarter in 2016. The impact on third quarter 2017
earnings per share of additional shares due to the Company's initial
public offering is ($0.03) compared to third quarter 2016.
Adjusted EBITDA for the third quarter of 2017 was $139.7 million, a
decrease of $2.7 million, or 2%, compared to the same quarter in 2016.
Adjusted EBITDA as a percentage of adjusted enterprise revenue
(excluding fuel surcharge) was 13.7% for the third quarter of 2017,
compared to 14.7% in the third quarter of 2016.
Cash Flow and Capitalization
At September 30, 2017, the Company had a total of $445.9 million
outstanding on various debt instruments compared to $699.4 million as of
December 31, 2016. At September 30, 2017, the Company had cash and cash
equivalents of $202.2 million compared to $130.8 million at December 31,
2016. The Company's net increase in cash and cash equivalents of $71.4
million was primarily due to proceeds from the IPO offset by debt
repayments.
The Company’s cash provided by operating activities for the nine months
ending September 30, 2017 decreased $1.8 million, a slight decrease
compared to the same period in 2016. Free cash flow increased $98.2
million compared to the same period in 2016. Capital expenditures
decreased year over year due to lower purchases of transportation
equipment, the result of a combination of factors including the
acceleration of purchases in 2016. The used equipment market has
stabilized in 2017, albeit at historically weak levels. Chassis capital
expenditures for the nine months ended September 30, 2017 were
approximately $87 million.
The Company declared a $0.05 dividend payable to shareholders of record
as of September 20, 2017. This dividend was paid on October 2, 2017. On
October 31, 2017, the Company declared a $0.05 dividend payable to
shareholders of record as of December 15, 2017. This dividend is
expected to be paid on January 8, 2018.
Results of Operations – Reportable Segments
Truckload
-
Revenue (excluding fuel surcharge): $551.7 million; an
increase of 2% compared to third quarter 2016
-
Income from Operations: $41.1 million; a decrease of 23% compared
to third quarter 2016
Truckload revenue (excluding fuel surcharge) increased 2% compared to
the third quarter of 2016. Improved truck productivity and effective
freight selection using the Company's Quest platform more than offset a
2.3% reduction in average total truck count compared to the same quarter
in 2016 due to initiatives earlier in the year to effectively size the
fleet to freight volumes. Revenue per truck per week increased $168, or
4.9%, compared to the same quarter in 2016.
Truckload income from operations decreased 23% in the third quarter of
2017 compared to the same quarter in 2016, primarily due to increased
driver costs, the net negative impact of the hurricanes due to lost
revenue and increased costs, decreased gains on sales of equipment,
account start-up costs, and continued refining of the cost structure in
the Company's First to Final Mile service offering, partially offset by
improvements in freight selection and truck productivity. The Company's
investments in driver recruiting and retention initiatives in the second
and third quarters yielded positive results in the third quarter and are
the primary factors in the sequential Truckload average truck count
increase of 186, or 1.6%, and the Truckload driver workforce increase of
over 500 compared to the second quarter of 2017; in anticipation of
fourth quarter 2017 and 2018 demand.
Intermodal
-
Revenue (excluding fuel surcharge): $196.0 million; an increase of
4% compared to third quarter 2016
-
Income from Operations: $12.2 million; an increase of 12% compared
to third quarter 2016
Intermodal revenue (excluding fuel surcharge) increased 4% in the third
quarter of 2017 compared to the same quarter in 2016. The increase was
due to an 8.3% increase in orders, partially offset by a 3.6% decrease
in revenue per order, that resulted from the competitive pricing market
and growth in the East, which has a shorter length of haul. The
competitive pricing market improved as the quarter progressed and
resulted in an $18, or 1.0%, sequential increase in revenue per order
compared to the second quarter of 2017. Intermodal improved container
productivity 8.5% compared to the same quarter in 2016, with 8,000
additional orders moved on slightly fewer containers.
Intermodal income from operations increased 12% in the third quarter of
2017 compared to the same quarter in 2016. Increased volume and asset
productivity more than offset an improved but continued competitive
pricing environment, the net negative impact of the hurricanes, and an
increase in duplicative costs due to the conversion from leased to owned
chassis. Duplicate chassis costs, which represent the cost of idle
rental units, had a negative impact of $5.4 million, or approximately
280 basis points on Intermodal's third quarter 2017 operating ratio. The
Company is ahead of its chassis conversion plan and expects it to be
completed by the end of 2017 to coincide with the expiration of the
existing lease requirements. The full impact of reduced operational
costs will not be realized until 2018; however, Intermodal has realized
decreased costs due to the new chassis in the areas of productivity,
driver retention, safety, and maintenance.
Logistics
-
Revenue (excluding fuel surcharge): $209.1 million; an
increase of 8% compared to third quarter 2016
-
Income from Operations: $9.1 million; an increase of 8%
compared to third quarter 2016
Logistics revenue (excluding fuel surcharge) increased 8% in the third
quarter of 2017 compared to the same quarter in 2016, primarily due to a
growth of the Company’s brokerage business. Brokerage volume increased
8.8% over the same period in 2016. Brokerage revenue (excluding fuel
surcharge) was 74% of Logistics revenue (excluding fuel surcharge) for
the third quarter of 2017 compared to 71% for same quarter in 2016.
Logistics income from operations increased 8% in the third quarter of
2017 compared to the same quarter in 2016, primarily due to brokerage
growth which was enhanced by the expansion of gross margins in the
quarter partly due to the market volatility caused by the hurricanes.
Business Outlook
Lofgren commented, “Overall, we expect market strengthening to continue
for the foreseeable future, especially given the significant amount of
building materials that will need to be moved into Texas, Florida and
the Southeastern part of the U.S., as well as the enforcement of the ELD
mandate. The availability of new jobs in the construction industry in
the South, will put additional pressure on driver hiring and retention.
That said, we are encouraged by our success in hiring drivers in the
third quarter. The interplay of continually improving price, partially
offset by costs due to driver availability, will determine market
dynamics in 2018. Also, building out our First to Final Mile service
offering will require additional investment. Therefore, to account for
third quarter performance and these near-term effects, we are revising
our full year 2017 adjusted diluted earnings per share range to $0.92 to
$0.97. We continue to anticipate capital expenditures for 2017 to be in
the range of $350 million to $400 million, which includes $100 million
for chassis."
Non-GAAP Financial Measures
We have presented certain non-GAAP financial measures, including
adjusted enterprise revenue (excluding fuel surcharge), adjusted income
from operations, adjusted operating ratio, adjusted net income, adjusted
diluted earnings per share adjusted EBITDA, and free cash flow.
Management believes the use of non-GAAP measures assists investors in
understanding our business, as further described below. The non-GAAP
information provided is used by our management and may not be comparable
to similar measures disclosed by other companies. The non-GAAP measures
used herein have limitations as analytical tools, and you should not
consider them in isolation or as substitutes for analysis of our results
as reported under GAAP.
A reconciliation of net income per share to adjusted diluted earnings
per share as projected for 2017 is not provided. Schneider does not
forecast net income per share as we cannot, without unreasonable effort,
estimate or predict with certainty various components of net income. The
components of net income that we cannot predict include expenses for
items that do not relate to our core operating performance such as
duplicate chassis costs or costs related to potential future acquisition
as well as related tax impact of these items. Further, in the future,
other items with similar characteristics to those currently included in
adjusted net income, that have a similar impact on the comparability of
periods, and which are not known at this time, may exist and impact
adjusted net income.
About Schneider National, Inc.
We are a leading transportation and logistics services company providing
a broad portfolio of premier truckload, intermodal and logistics
solutions and operate one of the largest for-hire trucking fleets in
North America. We believe we have developed a differentiated business
model that is difficult to replicate due to our scale, breadth of
complementary service offerings and proprietary technology platform. Our
highly flexible and balanced business combines asset-based truckload
services with asset-light intermodal and non-asset logistics offerings,
enabling us to serve our customers’ diverse transportation needs. Since
our founding in 1935, we believe we have become an iconic and trusted
brand within the transportation industry by adhering to a culture of
safety “first and always” and upholding our responsibility to our
associates, our customers and the communities that we serve.
Special Note Regarding Forward-Looking Statements
This earnings release contains forward-looking statements, within the
meaning of the United States Private Securities Litigation Reform Act of
1995, which are intended to come within the safe harbor protection
provided by such Act. These forward-looking statements reflect our
current expectations, beliefs, plans, or forecasts with respect to,
among other things, future events and financial performance and trends
in our business and industry. Forward-looking statements are often
characterized by words or phrases such as “may,” “will,” “could,”
“should,” “would,” “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “target,” “prospects,” “potential” and
“forecast,” and other words, terms, and phrases of similar meaning.
Forward-looking statements involve estimates, expectations, projections,
goals, forecasts, assumptions, risks, and uncertainties. We caution
readers that a forward-looking statement is not a guarantee of future
performance and that actual results could differ materially from those
contained in the forward-looking statement.
Such risks and uncertainties include, among others, those discussed
under the heading “Risk Factors” in our Prospectus dated April 5, 2017
filed with the Securities and Exchange Commission (SEC) pursuant to Rule
424(b) of the Securities Act of 1933, as amended, which is deemed to be
part of our Registration Statement on Form S-1 (File No. 333-215244), as
well as other filings with the SEC. In addition to any such risks,
uncertainties, and other factors discussed elsewhere herein, risks,
uncertainties, and other factors that could cause or contribute to
actual results differing materially from those expressed or implied by
the forward-looking statements include, but are not limited to, the
following: economic and business risks inherent in the truckload
industry, including competitive pressures pertaining to pricing,
capacity, and service; risks associated with the loss of a significant
customer or customers; fluctuations in the price or availability of
fuel, the volume and terms of diesel fuel purchase commitments, and our
ability to recover fuel costs through our fuel surcharge programs; our
ability to attract and retain qualified drivers, including
owner-operators, in the operation of our intermodal and trucking
businesses; risks related to demand for our service offerings; our
ability to recruit, develop, and retain our key associates; the impact
of laws and regulations that apply to our business, including those that
relate to the environment, taxes, employees, and owner-operators, our
captive insurance company, and the increased costs of compliance with
existing or future federal, state, and local regulations; significant
systems disruptions, including those caused by cybersecurity breaches;
negative seasonal patterns generally experienced in the trucking
industry during traditionally slower shipping periods and winter months;
risks associated with severe weather and similar events; exposure to
claims and lawsuits in the ordinary course of our business and the risk
of insurance claims through our captive insurance company; our ability
to effectively manage and implement our growth and diversification
strategies and cost saving initiatives; risks associated with
acquisitions and other strategic transactions; risks associated with
obtaining materials, equipment, and services from our vendors and
suppliers; risks associated with cross-border operations and doing
business in foreign countries; risks associated with financial and
credit markets, including our ability to service indebtedness and fund
capital expenditures and strategic initiatives; and risks associated
with reliance on third parties with respect to certain of our
businesses, including railroads with respect to our intermodal business
and third-party capacity providers for our Logistics brokerage business.
We do not intend, and undertake no obligation, to update any of our
forward-looking statements after the date of this report to reflect
actual results or future events or circumstances. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements.
|
|
|
SCHNEIDER NATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
OPERATING REVENUES
|
|
|
$
|
1,110.8
|
|
|
$
|
1,053.2
|
|
|
$
|
3,192.4
|
|
|
$
|
2,975.8
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Purchased transportation
|
|
|
403.9
|
|
|
381.2
|
|
|
1,158.7
|
|
|
1,077.6
|
|
Salaries, wages, and benefits
|
|
|
307.4
|
|
|
289.8
|
|
|
910.0
|
|
|
848.2
|
|
Fuel and fuel taxes
|
|
|
76.3
|
|
|
66.6
|
|
|
220.7
|
|
|
184.4
|
|
Depreciation and amortization
|
|
|
70.5
|
|
|
70.0
|
|
|
207.0
|
|
|
197.7
|
|
Operating supplies and expenses
|
|
|
135.3
|
|
|
129.1
|
|
|
369.2
|
|
|
333.0
|
|
Insurance and related expenses
|
|
|
22.2
|
|
|
19.8
|
|
|
64.3
|
|
|
57.1
|
|
Other general expenses, net
|
|
|
31.1
|
|
|
25.9
|
|
|
75.9
|
|
|
75.3
|
|
Total operating expenses
|
|
|
1,046.7
|
|
|
982.4
|
|
|
3,005.8
|
|
|
2,773.3
|
|
INCOME FROM OPERATIONS
|
|
|
64.1
|
|
|
70.8
|
|
|
186.6
|
|
|
202.5
|
|
OTHER EXPENSES (INCOME):
|
|
|
|
|
|
|
|
|
|
|
Interest expense—net
|
|
|
3.6
|
|
|
5.8
|
|
|
13.7
|
|
|
15.7
|
|
Other expenses (income)—net
|
|
|
(0.2
|
)
|
|
0.5
|
|
|
(0.3
|
)
|
|
1.8
|
|
Total other expenses
|
|
|
3.4
|
|
|
6.3
|
|
|
13.4
|
|
|
17.5
|
|
INCOME BEFORE INCOME TAXES
|
|
|
60.7
|
|
|
64.5
|
|
|
173.2
|
|
|
185.0
|
|
PROVISION FOR INCOME TAXES
|
|
|
23.8
|
|
|
27.7
|
|
|
67.2
|
|
|
75.9
|
|
NET INCOME
|
|
|
$
|
36.9
|
|
|
$
|
36.8
|
|
|
$
|
106.0
|
|
|
$
|
109.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
176.9
|
|
|
156.4
|
|
|
169.2
|
|
|
156.1
|
|
Basic earnings per share
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.63
|
|
|
$
|
0.70
|
|
Weighted average diluted shares outstanding
|
|
|
177.0
|
|
|
156.6
|
|
|
169.3
|
|
|
156.3
|
|
Diluted earnings per share
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.63
|
|
|
$
|
0.70
|
|
Dividends per share of common stock
|
|
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.15
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHNEIDER NATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
202.2
|
|
|
$
|
130.8
|
|
Marketable securities
|
|
|
44.0
|
|
|
52.5
|
|
Trade accounts receivable—net of allowance of $4.0 million and $3.5
million, respectively
|
|
|
500.8
|
|
|
444.0
|
|
Other receivables
|
|
|
24.5
|
|
|
41.8
|
|
Current portion of lease receivables—net of allowance of $1.4
million and $1.0 million, respectively
|
|
|
99.7
|
|
|
100.2
|
|
Inventories
|
|
|
94.0
|
|
|
74.1
|
|
Prepaid expenses and other current assets
|
|
|
95.2
|
|
|
80.2
|
|
Total current assets
|
|
|
1,060.4
|
|
|
923.6
|
|
NONCURRENT ASSETS:
|
|
|
|
|
|
|
Property and equipment:
|
|
|
|
|
|
|
Transportation equipment
|
|
|
2,745.1
|
|
|
2,596.7
|
|
Land, buildings, and improvements
|
|
|
183.5
|
|
|
178.9
|
|
Other property and equipment
|
|
|
174.0
|
|
|
191.6
|
|
Total property and equipment
|
|
|
3,102.6
|
|
|
2,967.2
|
|
Accumulated depreciation
|
|
|
1,242.2
|
|
|
1,209.2
|
|
Net property and equipment
|
|
|
1,860.4
|
|
|
1,758.0
|
|
Lease receivables
|
|
|
141.5
|
|
|
132.1
|
|
Capitalized software and other noncurrent assets
|
|
|
76.0
|
|
|
76.9
|
|
Goodwill
|
|
|
164.5
|
|
|
164.0
|
|
Total noncurrent assets
|
|
|
2,242.4
|
|
|
2,131.0
|
|
TOTAL
|
|
|
$
|
3,302.8
|
|
|
$
|
3,054.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHNEIDER NATIONAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
LIABILITIES, TEMPORARY EQUITY, AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Trade accounts payable
|
|
|
$
|
284.4
|
|
|
$
|
227.3
|
|
Accrued salaries and wages
|
|
|
78.9
|
|
|
81.8
|
|
Claims accruals - current
|
|
|
47.0
|
|
|
52.2
|
|
Current maturities of debt and capital lease obligations
|
|
|
22.1
|
|
|
258.7
|
|
Dividends payable
|
|
|
8.8
|
|
|
—
|
|
Other current liabilities
|
|
|
58.7
|
|
|
57.3
|
|
Total current liabilities
|
|
|
499.9
|
|
|
677.3
|
|
NONCURRENT LIABILITIES:
|
|
|
|
|
|
|
Long-term debt and capital lease obligations
|
|
|
422.9
|
|
|
439.6
|
|
Claims accruals - noncurrent
|
|
|
100.6
|
|
|
111.5
|
|
Deferred income taxes
|
|
|
587.5
|
|
|
538.6
|
|
Other
|
|
|
75.1
|
|
|
101.2
|
|
Total noncurrent liabilities
|
|
|
1,186.1
|
|
|
1,190.9
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
TEMPORARY EQUITY - REDEEMABLE COMMON SHARES
|
|
|
|
|
|
|
Redeemable common shares at December 31, 2016, Class A, no par
value, shares authorized: 250,000,000, shares issued and
outstanding: 83,029,500
|
|
|
—
|
|
|
563.2
|
|
Redeemable common shares at December 31, 2016, Class B, no par
value, shares authorized: 750,000,000, shares issued and
outstanding: 73,294,560
|
|
|
—
|
|
|
497.2
|
|
Accumulated earnings
|
|
|
—
|
|
|
125.1
|
|
Accumulated other comprehensive income
|
|
|
—
|
|
|
0.9
|
|
Total temporary equity
|
|
|
—
|
|
|
1,186.4
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Class A common shares at September 30, 2017, no par value, shares
authorized: 250,000,000, shares issued and outstanding: 83,029,500
|
|
|
—
|
|
|
—
|
|
Class B common shares at September 30, 2017, no par value, shares
authorized: 750,000,000, shares issued and outstanding: 93,841,183
|
|
|
—
|
|
|
—
|
|
Additional paid-in capital
|
|
|
1,535.9
|
|
|
—
|
|
Retained earnings
|
|
|
80.5
|
|
|
—
|
|
Accumulated other comprehensive income
|
|
|
0.4
|
|
|
—
|
|
Total shareholders' equity
|
|
|
1,616.8
|
|
|
—
|
|
TOTAL
|
|
|
$
|
3,302.8
|
|
|
$
|
3,054.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHNEIDER NATIONAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
106.0
|
|
|
$
|
109.1
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
207.0
|
|
|
197.7
|
|
|
Gain on sale of property and equipment
|
|
|
(6.4
|
)
|
|
(15.1
|
)
|
|
Deferred income taxes
|
|
|
48.8
|
|
|
49.3
|
|
|
WSL contingent consideration adjustment
|
|
|
(13.2
|
)
|
|
—
|
|
|
Other noncash items
|
|
|
3.1
|
|
|
(1.0
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Receivables
|
|
|
(39.0
|
)
|
|
—
|
|
|
Other assets
|
|
|
(9.5
|
)
|
|
(7.7
|
)
|
|
Payables
|
|
|
22.1
|
|
|
6.3
|
|
|
Other liabilities
|
|
|
(3.2
|
)
|
|
(21.1
|
)
|
|
Net cash provided by operating activities
|
|
|
315.7
|
|
|
317.5
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Purchases of transportation equipment
|
|
|
(274.1
|
)
|
|
(359.7
|
)
|
|
Purchases of other property and equipment
|
|
|
(27.3
|
)
|
|
(29.5
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
51.8
|
|
|
39.6
|
|
|
Proceeds from lease receipts and sale of off-lease inventory
|
|
|
42.4
|
|
|
47.4
|
|
|
Purchases of lease equipment
|
|
|
(89.8
|
)
|
|
(68.7
|
)
|
|
Sales of marketable securities
|
|
|
8.4
|
|
|
11.1
|
|
|
Advance funding of dividends to transfer agent
|
|
|
(6.7
|
)
|
|
—
|
|
|
Purchases of marketable securities
|
|
|
—
|
|
|
(4.0
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
|
—
|
|
|
(78.2
|
)
|
|
Net cash used in investing activities
|
|
|
(295.3
|
)
|
|
(442.0
|
)
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds under revolving credit agreements
|
|
|
—
|
|
|
174.9
|
|
|
Payments under revolving credit agreements
|
|
|
(135.0
|
)
|
|
(89.9
|
)
|
|
Proceeds from other debt
|
|
|
—
|
|
|
0.6
|
|
|
Payments of debt and capital lease obligations
|
|
|
(118.5
|
)
|
|
(37.7
|
)
|
|
Payment of deferred consideration related to acquisition
|
|
|
(19.4
|
)
|
|
—
|
|
|
Proceeds from IPO, net of issuance costs
|
|
|
340.6
|
|
|
—
|
|
|
Dividends paid
|
|
|
(16.6
|
)
|
|
—
|
|
|
Redemptions of redeemable common shares
|
|
|
(0.1
|
)
|
|
(1.4
|
)
|
|
Proceeds from issuances of redeemable common shares
|
|
|
—
|
|
|
2.3
|
|
|
Net cash provided by financing activities
|
|
|
51.0
|
|
|
48.8
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
71.4
|
|
|
(75.7
|
)
|
|
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
Beginning of period
|
|
|
130.8
|
|
|
160.7
|
|
|
End of period
|
|
|
$
|
202.2
|
|
|
$
|
85.0
|
|
|
ADDITIONAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
Noncash investing and financing activity:
|
|
|
|
|
|
|
Equipment purchases in accounts payable
|
|
|
$
|
57.4
|
|
|
$
|
40.0
|
|
|
Dividends declared but not yet paid
|
|
|
$
|
8.8
|
|
|
$
|
—
|
|
|
Increase in redemption value of redeemable common shares
|
|
|
$
|
—
|
|
|
$
|
(110.0
|
)
|
|
Cash paid (refunded) during the year for:
|
|
|
|
|
|
|
Interest
|
|
|
$
|
16.6
|
|
|
$
|
14.7
|
|
|
Income taxes—net of refunds
|
|
|
$
|
(10.4
|
)
|
|
$
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schneider National, Inc.
|
|
Revenues and Income from Operations by Segment
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenues by Segment
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Truckload
|
|
|
$
|
551.7
|
|
|
$
|
540.8
|
|
|
$
|
1,616.8
|
|
|
$
|
1,551.0
|
|
|
Intermodal
|
|
|
196.0
|
|
|
187.6
|
|
|
571.4
|
|
|
559.7
|
|
|
Logistics
|
|
|
209.1
|
|
|
194.3
|
|
|
584.7
|
|
|
539.9
|
|
|
Other
|
|
|
85.4
|
|
|
66.5
|
|
|
214.5
|
|
|
171.5
|
|
|
Fuel surcharge
|
|
|
93.9
|
|
|
81.3
|
|
|
276.8
|
|
|
209.7
|
|
|
Inter-segment eliminations
|
|
|
(25.3
|
)
|
|
(17.3
|
)
|
|
(71.8
|
)
|
|
(56.0
|
)
|
|
Operating revenues
|
|
|
$
|
1,110.8
|
|
|
$
|
1,053.2
|
|
|
$
|
3,192.4
|
|
|
$
|
2,975.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations by Segment
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Truckload
|
|
|
$
|
41.1
|
|
|
$
|
53.6
|
|
|
$
|
132.9
|
|
|
$
|
157.5
|
|
|
Intermodal (1)
|
|
|
12.2
|
|
|
10.9
|
|
|
30.0
|
|
|
31.6
|
|
|
Logistics
|
|
|
9.1
|
|
|
8.4
|
|
|
20.8
|
|
|
21.7
|
|
|
Other (2)
|
|
|
1.7
|
|
|
(2.1
|
)
|
|
2.9
|
|
|
(8.3
|
)
|
|
Income from operations
|
|
|
64.1
|
|
|
70.8
|
|
|
186.6
|
|
|
202.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Duplicate chassis cost (1)
|
|
|
5.4
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
WSL contingent consideration adjustment (2)
|
|
|
(0.3
|
)
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
|
Acquisition costs (3)
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
IPO costs (4)
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
Adjusted income from operations
|
|
|
$
|
69.2
|
|
|
$
|
72.4
|
|
|
$
|
181.7
|
|
|
$
|
204.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
By the end of 2017, the Company expects Intermodal to have completed
its migration to an owned chassis model, which requires the
replacement of rental chassis with owned chassis to improve safety
and reliability and to increase driver retention. During 2017, we
expect to add 10,000 to our owned chassis units, resulting in a
total of more than 15,000 owned chassis. The existing lease
requirements do not expire until December 31, 2017. Accordingly, the
Company is adjusting its income from operations for rental costs
related to idle chassis as rented units are replaced.
|
|
(2)
|
|
In the second and third quarters of 2017, the Company recorded a
combined $13.2 million fair value adjustment to the contingent
consideration related to the acquisition of WSL.
|
|
(3)
|
|
Costs related to the June 1, 2016 acquisition of WSL.
|
|
(4)
|
|
Costs related to the Company's initial public offering (IPO).
|
|
|
|
|
|
|
|
Schneider National, Inc.
|
|
Key Performance Indicators by Segment
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Truckload
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Dedicated standard
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge) (1)
|
|
|
$
|
73.4
|
|
|
$
|
75.0
|
|
|
$
|
216.7
|
|
|
$
|
225.3
|
|
|
Average trucks (2) (3)
|
|
|
1,654
|
|
|
1,760
|
|
|
1,641
|
|
|
1,766
|
|
|
Revenue per truck per week (4)
|
|
|
$
|
3,458
|
|
|
$
|
3,304
|
|
|
$
|
3,436
|
|
|
$
|
3,305
|
|
|
Dedicated specialty
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge) (1)
|
|
|
$
|
110.8
|
|
|
$
|
99.5
|
|
|
$
|
311.4
|
|
|
$
|
283.5
|
|
|
Average trucks (2) (3)
|
|
|
2,333
|
|
|
2,113
|
|
|
2,231
|
|
|
2,038
|
|
|
Revenue per truck per week (4)
|
|
|
$
|
3,700
|
|
|
$
|
3,651
|
|
|
$
|
3,631
|
|
|
$
|
3,604
|
|
|
For-hire standard
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge) (1)
|
|
|
$
|
289.7
|
|
|
$
|
290.2
|
|
|
$
|
853.5
|
|
|
$
|
876.6
|
|
|
Average trucks (2) (3)
|
|
|
6,345
|
|
|
6,600
|
|
|
6,341
|
|
|
6,707
|
|
|
Revenue per truck per week (4)
|
|
|
$
|
3,556
|
|
|
$
|
3,408
|
|
|
$
|
3,502
|
|
|
$
|
3,386
|
|
|
For-hire specialty
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge) (1)
|
|
|
$
|
77.8
|
|
|
$
|
76.1
|
|
|
$
|
235.2
|
|
|
$
|
165.6
|
|
|
Average trucks (2) (3)
|
|
|
1,558
|
|
|
1,691
|
|
|
1,602
|
|
|
1,158
|
|
|
Revenue per truck per week (4)
|
|
|
$
|
3,882
|
|
|
$
|
3,488
|
|
|
$
|
3,817
|
|
|
$
|
3,704
|
|
|
Total Truckload
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge) (1)
|
|
|
$
|
551.7
|
|
|
$
|
540.8
|
|
|
$
|
1,616.8
|
|
|
$
|
1,551.0
|
|
|
Average trucks (2) (3)
|
|
|
11,890
|
|
|
12,164
|
|
|
11,815
|
|
|
11,669
|
|
|
Revenue per truck per week (4)
|
|
|
$
|
3,614
|
|
|
$
|
3,446
|
|
|
$
|
3,560
|
|
|
$
|
3,444
|
|
|
Average company trucks (3)
|
|
|
9,119
|
|
|
9,476
|
|
|
9,059
|
|
|
9,006
|
|
|
Average owner-operator trucks (3)
|
|
|
2,771
|
|
|
2,688
|
|
|
2,756
|
|
|
2,663
|
|
|
Trailers
|
|
|
38,615
|
|
|
38,098
|
|
|
38,615
|
|
|
38,098
|
|
|
Operating ratio (5)
|
|
|
92.6
|
%
|
|
90.1
|
%
|
|
91.8
|
%
|
|
89.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Revenue (excluding fuel surcharge) in millions
|
|
(2)
|
|
Includes company trucks and owner-operator trucks
|
|
(3)
|
|
Calculated based on beginning and ending month counts and represents
the average number of trucks available to haul freight over the
specified time frame
|
|
(4)
|
|
Calculated excluding fuel surcharge, consistent with how revenue is
reported internally for segment purposes, using weighted workdays
|
|
(5)
|
|
Calculated as segment operating expenses divided by segment revenue
(excluding fuel surcharge)
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Orders
|
|
|
104,452
|
|
|
96,418
|
|
|
305,074
|
|
|
281,426
|
|
|
Containers
|
|
|
17,557
|
|
|
17,568
|
|
|
17,557
|
|
|
17,568
|
|
|
Trucks (1)
|
|
|
1,293
|
|
|
1,288
|
|
|
1,293
|
|
|
1,288
|
|
|
Revenue per order (2)
|
|
|
$
|
1,876
|
|
|
$
|
1,946
|
|
|
$
|
1,873
|
|
|
$
|
1,989
|
|
|
Operating ratio (3)
|
|
|
93.8
|
%
|
|
94.2
|
%
|
|
94.7
|
%
|
|
94.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes company trucks and owner-operator trucks at the end of the
period
|
|
(2)
|
|
Calculated excluding fuel surcharge, consistent with how revenue is
reported internally for segment purposes
|
|
(3)
|
|
Calculated as segment operating expenses divided by segment revenue
(excluding fuel surcharge)
|
|
|
|
|
|
Logistics
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating ratio (1)
|
|
|
95.6
|
%
|
|
95.7
|
%
|
|
96.4
|
%
|
|
96.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Calculated as segment operating expenses divided by segment revenue
(excluding fuel surcharge)
|
|
|
|
|
Schneider National, Inc.
Reconciliation of Non - GAAP
Financial Measures
(unaudited)
In this earnings release, we present the following non-GAAP financial
measures: (1) adjusted enterprise revenue (excluding fuel surcharge),
(2) adjusted income from operations, (3) adjusted operating ratio, (4)
adjusted net income, (5) adjusted diluted earnings per share, (6)
adjusted EBITDA and (7) free cash flow. We also provide below
reconciliations of these measures to the most directly comparable
financial measures calculated and presented in accordance with GAAP.
Management believes the use of each of these non-GAAP measures assists
investors in understanding our business by (a) removing the impact of
items from our operating results that, in our opinion, do not reflect
our core operating performance, (b) providing investors with the same
information our management uses internally to assess our core operating
performance and (c) presenting comparable financial results between
periods. In addition, in the case of adjusted enterprise revenue
(excluding fuel surcharge), we believe the measure is useful to
investors because it isolates volume, price, and cost changes directly
related to industry demand and the way we operate our business from the
exogenous factor of fluctuating fuel prices and the programs we have in
place to manage fuel price fluctuations. Fuel-related costs and their
impact on our industry are important to our results of operations, but
they are often independent of other, more germane factors affecting our
results of operations and our industry. With respect to free cash flow,
we believe the measure provides investors with an important perspective
on the cash available to fund our business after payment of capital
expenditures related to the necessary components of ongoing operations.
Free cash flow does not represent the residual cash flow available for
discretionary expenditures as it excludes certain mandatory expenditures
such as repayment of maturing debt. We use free cash flow as a measure
to assess overall liquidity.
Although we believe these non-GAAP measures are useful to investors,
they have limitations as analytical tools and may not be comparable to
similar measures disclosed by other companies. You should not consider
the non-GAAP measures in this release in isolation or as substitutes
for, or alternatives to, analysis of our results as reported under GAAP.
The exclusion of unusual or non-recurring items or other adjustments
reflected in the non-GAAP measures should not be construed as an
inference that our future results will not be affected by unusual or
non-recurring items or by other items similar to such adjustments. Our
management compensates for these limitations by relying primarily on our
GAAP results in addition to using the non-GAAP measures.
Adjusted enterprise revenue (excluding fuel surcharge)
Adjusted enterprise revenue (excluding fuel surcharge) is a non-GAAP
financial measure and is defined as operating revenues less fuel
surcharge revenue. The following is a reconciliation of operating
revenues, the most closely comparable GAAP financial measure, to
adjusted enterprise revenue (excluding fuel surcharge).
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating revenues
|
|
|
$
|
1,110.8
|
|
|
$
|
1,053.2
|
|
|
$
|
3,192.4
|
|
|
$
|
2,975.8
|
|
Less: Fuel surcharge revenue
|
|
|
93.9
|
|
|
81.3
|
|
|
276.8
|
|
|
209.7
|
|
Adjusted enterprise revenue (excluding fuel surcharge)
|
|
|
$
|
1,016.9
|
|
|
$
|
971.9
|
|
|
$
|
2,915.6
|
|
|
$
|
2,766.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations
Adjusted income from operations is a non-GAAP financial measure and is
defined as income from operations, adjusted to exclude material items
that do not reflect our core operating performance, which are shown
below. The following is a reconciliation of income from operations,
which is the most directly comparable GAAP measure, to adjusted income
from operations.
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Income from operations
|
|
|
$
|
64.1
|
|
|
$
|
70.8
|
|
|
$
|
186.6
|
|
|
$
|
202.5
|
|
Duplicate chassis costs (1)
|
|
|
5.4
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
WSL contingent consideration adjustment (2)
|
|
|
(0.3
|
)
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
Acquisition costs (3)
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
IPO costs (4)
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
Adjusted income from operations
|
|
|
$
|
69.2
|
|
|
$
|
72.4
|
|
|
$
|
181.7
|
|
|
$
|
204.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
By the end of 2017, the Company expects Intermodal to have completed
its migration to an owned chassis model, which requires the
replacement of rental chassis with owned chassis to improve safety
and reliability and to increase driver retention. During 2017 we
expect to add 10,000 to our owned chassis units, resulting in a
total of more than 15,000 owned chassis. The existing lease
requirements do not expire until December 31, 2017. Accordingly, the
Company is adjusting its income from operations for rental costs
related to idle chassis as rented units are replaced.
|
|
(2)
|
|
In the second and third quarters of 2017, the Company recorded a
combined $13.2 million fair value adjustment to the contingent
consideration related to the acquisition of WSL.
|
|
(3)
|
|
Costs related to the June 1, 2016 acquisition of WSL.
|
|
(4)
|
|
Costs related to the Company's initial public offering (IPO).
|
|
|
|
|
Adjusted operating ratio
Adjusted operating ratio is a non-GAAP financial measure and is defined
as operating expenses, adjusted to exclude material items that do not
reflect our core operating performance; which are shown below, divided
by adjusted enterprise revenue (excluding fuel surcharge). The following
is a reconciliation of operating ratio, which is the most directly
comparable GAAP measure, to adjusted operating ratio.
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Total operating expenses
|
|
|
$
|
1,046.7
|
|
|
$
|
982.4
|
|
|
$
|
3,005.8
|
|
|
$
|
2,773.3
|
|
|
Divide by: Operating revenues
|
|
|
1,110.8
|
|
|
1,053.2
|
|
|
3,192.4
|
|
|
2,975.8
|
|
|
Operating ratio
|
|
|
94.2
|
%
|
|
93.3
|
%
|
|
94.2
|
%
|
|
93.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
$
|
1,110.8
|
|
|
$
|
1,053.2
|
|
|
$
|
3,192.4
|
|
|
$
|
2,975.8
|
|
|
Less: Fuel surcharge revenue
|
|
|
93.9
|
|
|
81.3
|
|
|
276.8
|
|
|
209.7
|
|
|
Adjusted enterprise revenue (excluding fuel surcharge)
|
|
|
$
|
1,016.9
|
|
|
$
|
971.9
|
|
|
$
|
2,915.6
|
|
|
$
|
2,766.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
$
|
1,046.7
|
|
|
$
|
982.4
|
|
|
$
|
3,005.8
|
|
|
$
|
2,773.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(93.9
|
)
|
|
(81.3
|
)
|
|
(276.8
|
)
|
|
(209.7
|
)
|
|
Duplicate chassis costs
|
|
|
(5.4
|
)
|
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
|
WSL contingent consideration adjustment
|
|
|
0.3
|
|
|
—
|
|
|
13.2
|
|
|
—
|
|
|
Acquisition costs
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
IPO costs
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
Adjusted total operating expenses
|
|
|
$
|
947.7
|
|
|
$
|
899.5
|
|
|
$
|
2,733.9
|
|
|
$
|
2,562.0
|
|
|
Adjusted operating ratio
|
|
|
93.2
|
%
|
|
92.6
|
%
|
|
93.8
|
%
|
|
92.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted diluted earnings per share
Adjusted net income and adjusted diluted earnings per share are non-GAAP
financial measures and are defined as net income and diluted earnings
per share, adjusted to exclude material items that do not reflect our
core operating performance, which are show below. The following is a
reconciliation of net income, which is the most directly comparable GAAP
measure, to adjusted net income.
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
|
|
|
$
|
36.9
|
|
|
$
|
36.8
|
|
|
$
|
106.0
|
|
|
$
|
109.1
|
|
|
Duplicate chassis costs
|
|
|
5.4
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
WSL contingent consideration adjustment
|
|
|
(0.3
|
)
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
|
Acquisition costs
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
IPO costs
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
Income tax effect of non-GAAP adjustments
|
|
|
(2.0
|
)
|
|
(0.6
|
)
|
|
1.9
|
|
|
(0.6
|
)
|
|
Adjusted net income
|
|
|
$
|
40.0
|
|
|
$
|
37.8
|
|
|
$
|
103.0
|
|
|
$
|
110.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of diluted earnings per share, which
is the most directly comparable GAAP measure, to adjusted diluted
earnings per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Diluted earnings per share
|
|
|
$0.21
|
|
|
$0.24
|
|
|
$0.63
|
|
|
$0.70
|
|
Non-GAAP adjustments, tax effected
|
|
|
0.02
|
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
Adjusted diluted earnings per share
|
|
|
$
|
0.23
|
|
|
$
|
0.24
|
|
|
$
|
0.61
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure and is defined as net
income, plus provision for income taxes, interest expense and
depreciation and amortization, and is further adjusted to exclude other
non-operating expenses, and other material items that do not reflect our
core operating performance, which are show below. The following is a
reconciliation of net income, which is the most directly comparable GAAP
measure, to adjusted EBITDA.
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income
|
|
|
$
|
36.9
|
|
|
$
|
36.8
|
|
|
$
|
106.0
|
|
|
$
|
109.1
|
|
Provision for income taxes
|
|
|
23.8
|
|
|
27.7
|
|
|
67.2
|
|
|
75.9
|
|
Interest expense – net
|
|
|
3.6
|
|
|
5.8
|
|
|
13.7
|
|
|
15.7
|
|
Depreciation and amortization
|
|
|
70.5
|
|
|
70.0
|
|
|
207.0
|
|
|
197.7
|
|
Other - net
|
|
|
(0.2
|
)
|
|
0.5
|
|
|
(0.3
|
)
|
|
1.8
|
|
Duplicate chassis cost
|
|
|
5.4
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
WSL contingent consideration adjustment
|
|
|
(0.3
|
)
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
Acquisition costs
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
IPO costs
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
Adjusted EBITDA
|
|
|
$
|
139.7
|
|
|
$
|
142.4
|
|
|
$
|
388.7
|
|
|
$
|
401.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
Free cash flow is a non-GAAP financial measure and is defined as net
cash provided by operating activities less net cash used for capital
expenditures. The following is a reconciliation of net cash provided by
operating activities, which is the most directly comparable GAAP
measure, to free cash flow.
|
|
|
|
|
|
(in millions)
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2017
|
|
2016
|
|
Net cash provided by operating activities
|
|
|
$
|
315.7
|
|
|
$
|
317.5
|
|
|
|
|
|
|
|
|
|
Purchases of transportation equipment
|
|
|
(274.1
|
)
|
|
(359.7
|
)
|
|
Purchases of other property and equipment
|
|
|
(27.3
|
)
|
|
(29.5
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
51.8
|
|
|
39.6
|
|
|
Net capital expenditures
|
|
|
(249.6
|
)
|
|
(349.6
|
)
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
$
|
66.1
|
|
|
$
|
(32.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171107005292/en/
Source: Schneider SNDR