Chairman and Chief Executive Officer,
“Our asset-based segments contributed approximately 67% of total revenue, 69% of operating income, 63% of total freight revenue, and 72% of adjusted operating income in the quarter. Our Expedited segment experienced comparable freight revenue with approximately 2% fewer tractors, but experienced diminished margins compared to the third quarter last year. Our Dedicated segment experienced reduced freight revenue with approximately 12% fewer tractors and improved margins year over year.
“Our asset-light segments contributed approximately 33% of total revenue, 31% of operating income, 37% of total freight revenue, and 28% of adjusted operating income in the quarter. Compared to a year ago, Managed Freight experienced significant reductions in both revenue and profitability with little to no project related freight in the current quarter. Warehousing was able to grow revenue through new customer startups and improve margins with contractual pricing increases put into place during the quarter. We are continuing to work to increase the operating income and related margins in each of these segments through focused sales efforts within Managed Freight and additional proposed customer rate increases with existing customers within Warehousing.
“Our 49% equity method investment with
A summary of our third quarter financial performance:
Three Months Ended | Nine Months Ended | ||||||||||||||
($000s, except per share information) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Total Revenue | $ | 288,721 | $ | 311,839 | $ | 829,588 | $ | 920,801 | |||||||
Freight Revenue, Excludes Fuel Surcharge | $ | 253,377 | $ | 266,599 | $ | 730,503 | $ | 791,069 | |||||||
Operating Income | $ | 15,141 | $ | 59,059 | $ | 44,556 | $ | 109,779 | |||||||
Adjusted Operating Income(1) | $ | 17,854 | $ | 22,451 | $ | 46,714 | $ | 75,235 | |||||||
Operating Ratio | 94.8 | % | 81.1 | % | 94.6 | % | 88.1 | % | |||||||
Adjusted Operating Ratio(1) | 93.0 | % | 91.6 | % | 93.6 | % | 90.5 | % | |||||||
Net Income | $ | 13,506 | $ | 50,486 | $ | 42,434 | $ | 97,179 | |||||||
Adjusted Net Income(1) | $ | 15,388 | $ | 22,641 | $ | 42,698 | $ | 70,858 | |||||||
Earnings per Diluted Share | $ | 0.99 | $ | 3.39 | $ | 3.09 | $ | 6.12 | |||||||
Adjusted Earnings per Diluted Share(1) | $ | 1.13 | $ | 1.52 | $ | 3.12 | $ | 4.46 | |||||||
(1) Represents non-GAAP measures. |
Truckload Operating Data and Statistics
Three Months Ended | Nine Months Ended | ||||||||||||||
($000s, except statistical information) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Combined Truckload | |||||||||||||||
Total Revenue | $ | 193,661 | $ | 211,216 | $ | 560,068 | $ | 617,370 | |||||||
Freight Revenue, excludes Fuel Surcharge | $ | 158,625 | $ | 166,408 | $ | 461,877 | $ | 488,648 | |||||||
Operating Income | $ | 10,498 | $ | 50,076 | $ | 35,979 | $ | 79,539 | |||||||
Adj. Operating Income(1) | $ | 12,840 | $ | 13,174 | $ | 37,009 | $ | 44,112 | |||||||
Operating Ratio | 94.6 | % | 76.3 | % | 93.6 | % | 87.1 | % | |||||||
Adj. Operating Ratio(1) | 91.9 | % | 92.1 | % | 92.0 | % | 91.0 | % | |||||||
Average Freight Revenue per Tractor per Week | $ | 5,677 | $ | 5,462 | $ | 5,618 | $ | 5,379 | |||||||
Average Freight Revenue per Total Mile | $ | 2.33 | $ | 2.46 | $ | 2.34 | $ | 2.43 | |||||||
Average Miles per Tractor per Period | 32,076 | 29,154 | 93,480 | 86,483 | |||||||||||
Weighted Average Tractors for Period | 2,126 | 2,318 | 2,108 | 2,329 | |||||||||||
Expedited | |||||||||||||||
Total Revenue | $ | 113,419 | $ | 117,793 | $ | 318,388 | $ | 338,234 | |||||||
Freight Revenue, excludes Fuel Surcharge | $ | 91,689 | $ | 91,630 | $ | 259,316 | $ | 264,996 | |||||||
Operating Income | $ | 7,522 | $ | 30,660 | $ | 22,613 | $ | 54,602 | |||||||
Adj. Operating Income(1) | $ | 8,549 | $ | 10,784 | $ | 23,883 | $ | 35,615 | |||||||
Operating Ratio | 93.4 | % | 74.0 | % | 92.9 | % | 83.9 | % | |||||||
Adj. Operating Ratio(1) | 90.7 | % | 88.2 | % | 90.8 | % | 86.6 | % | |||||||
Average Freight Revenue per Tractor per Week | $ | 7,830 | $ | 7,636 | $ | 7,669 | $ | 7,589 | |||||||
Average Freight Revenue per Total Mile | $ | 2.12 | $ | 2.31 | $ | 2.14 | $ | 2.30 | |||||||
Average Miles per Tractor per Period | 48,586 | 43,483 | 139,739 | 128,809 | |||||||||||
Weighted Average Tractors for Period | 891 | 913 | 867 | 895 | |||||||||||
Dedicated | |||||||||||||||
Total Revenue | $ | 80,242 | $ | 93,423 | $ | 241,680 | $ | 279,136 | |||||||
Freight Revenue, excludes Fuel Surcharge | $ | 66,936 | $ | 74,778 | $ | 202,561 | $ | 223,652 | |||||||
Operating Income | $ | 2,976 | $ | 19,416 | $ | 13,366 | $ | 24,937 | |||||||
Adj. Operating Income(1) | $ | 4,291 | $ | 2,390 | $ | 13,126 | $ | 8,497 | |||||||
Operating Ratio | 96.3 | % | 79.2 | % | 94.5 | % | 91.1 | % | |||||||
Adj. Operating Ratio(1) | 93.6 | % | 96.8 | % | 93.5 | % | 96.2 | % | |||||||
Average Freight Revenue per Tractor per Week | $ | 4,124 | $ | 4,050 | $ | 4,185 | $ | 3,999 | |||||||
Average Freight Revenue per Total Mile | $ | 2.69 | $ | 2.68 | $ | 2.67 | $ | 2.60 | |||||||
Average Miles per Tractor per Period | 20,165 | 19,842 | 61,162 | 60,053 | |||||||||||
Weighted Average Tractors for Period | 1,235 | 1,405 | 1,241 | 1,434 | |||||||||||
(1) Represents non-GAAP measures. |
Combined Truckload Revenue
Expedited Truckload Revenue
Dedicated Truckload Revenue
“For the quarter, freight revenue in our Dedicated segment decreased $7.8 million, or 10.5%. Average total tractors decreased by 170 units or 12.1% to 1,235, compared to 1,405 in the prior year quarter. The decrease in tractors was attributable to the exit of underperforming business and truck reductions negotiated with current customers, partially offset by the addition of approximately 220 weighted average tractors as result of the Lew Thompson and
Combined Truckload Operating Expenses
“Salaries and wages and related expenses decreased year-over-year by
“Operations and maintenance related expense decreased year-over-year by
“Fixed equipment costs, inclusive of depreciation and leased transportation equipment remained flat on both an absolute dollar and a cents per total mile basis year over year. Despite the increased cost for new equipment, over the past twelve months, we’ve been successful in replacing older leased tractors that underperformed operationally with newer tractors with improved uptime.”
“Gain on sale of revenue equipment was
Managed Freight Segment
Three Months Ended | Nine Months Ended | ||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Freight Revenue | $ | 69,713 | $ | 78,382 | $ | 193,868 | $ | 244,814 | |||||||
Operating Income | $ | 3,742 | $ | 8,605 | $ | 6,905 | $ | 28,062 | |||||||
Adj. Operating Income (1) | $ | 3,854 | $ | 8,640 | $ | 7,177 | $ | 28,168 | |||||||
Operating Ratio | 94.6 | % | 89.0 | % | 96.4 | % | 88.5 | % | |||||||
Adj. Operating Ratio (1) | 94.5 | % | 89.0 | % | 96.3 | % | 88.5 | % | |||||||
(1) Represents non-GAAP measures. |
“For the quarter, Managed Freight’s freight revenue decreased 11.1%, from the prior year quarter. Operating income and adjusted operating income declined approximately 56.5% compared to the third quarter of 2022 as a result of reduced volumes of high-margin overflow freight from both Expedited and Dedicated truckload operations. Revenue and operating income in this segment are expected to fluctuate with changes in the freight market and our percentage of contracted versus non-contracted freight.”
Warehousing Segment
Three Months Ended | Nine Months Ended | ||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Freight Revenue | $ | 25,039 | $ | 21,809 | $ | 74,758 | $ | 57,607 | |||||||
Operating Income | $ | 901 | $ | 378 | $ | 1,672 | $ | 2,178 | |||||||
Adj. Operating Income(1) | $ | 1,160 | $ | 637 | $ | 2,522 | $ | 2,955 | |||||||
Operating Ratio | 96.4 | % | 98.3 | % | 97.8 | % | 96.3 | % | |||||||
Adj. Operating Ratio(1) | 95.4 | % | 97.1 | % | 96.6 | % | 94.9 | % | |||||||
(1) Represents non-GAAP measures. |
“For the quarter, Warehousing’s freight revenue increased 14.8% versus the prior year quarter. The increase in revenue was primarily driven by the year-over-year impact of new customer business added during the current year as well as customer rate increases that began during the quarter. Operating income and adjusted operating income for the Warehousing segment increased
Capitalization, Liquidity and Capital Expenditures
“The increase in net indebtedness during the year is primarily attributable to acquisition investments of approximately
“At
“Our net capital investment through
“For the balance of 2023, our baseline expectation for net capital equipment expenditures is
Outlook
Conference Call Information
The Company will host a live conference call tomorrow,
(1) See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating income (loss), operating ratio, net income, and earnings per diluted share, we use adjusted operating income (loss), adjusted operating ratio, adjusted net income, and adjusted earnings per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income (loss), adjusted operating ratio, adjusted net income, and adjusted diluted earnings per share are not substitutes for operating income (loss), operating ratio, net income, and earnings per diluted share measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures are useful because it provides investors and securities analysts with supplemental information that we use internally for purposes of assessing profitability. Further, our Board and management use non-GAAP operating income (loss), operating ratio, net income, and earnings per diluted share measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income (loss), adjusted operating ratio, adjusted net income, and adjusted diluted earnings per share improves comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income (loss), adjusted operating ratio, adjusted net income, and adjusted earnings per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.
This press release contains certain statements that may be considered 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, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” "intends," “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. 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. In this press release, statements relating to expected freight demand, volume, and rates, future growth, future revenue, operating income, operating expenses, and margins, future availability and covenant testing under our ABL credit facility, expected fleet age, operating efficiency, and cost, net capital expenditures, capital allocation alternatives, progress toward our strategic goals, the resiliency of our model, the expected impact of our acquisition of
For further information contact:
PBunn@covenantlogistics.com
TGrant@covenantlogistics.com
For copies of Company information contact:
BMcKenzie@covenantlogistics.com
Key Financial and Operating Statistics | |||||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($s in 000s, except per share data) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Freight revenue | $ | 253,377 | $ | 266,599 | (5.0 | %) | $ | 730,503 | $ | 791,069 | (7.7 | %) | |||||||||||
Fuel surcharge revenue | 35,344 | 45,240 | (21.9 | %) | 99,085 | 129,732 | (23.6 | %) | |||||||||||||||
Total revenue | $ | 288,721 | $ | 311,839 | (7.4 | %) | $ | 829,588 | $ | 920,801 | (9.9 | %) | |||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries, wages, and related expenses | 102,314 | 104,537 | 302,753 | 300,980 | |||||||||||||||||||
Fuel expense | 35,173 | 42,471 | 100,692 | 126,457 | |||||||||||||||||||
Operations and maintenance | 16,984 | 22,468 | 50,328 | 60,248 | |||||||||||||||||||
Revenue equipment rentals and purchased transportation | 72,046 | 78,943 | 203,045 | 244,281 | |||||||||||||||||||
Operating taxes and licenses | 3,381 | 3,238 | 10,161 | 8,718 | |||||||||||||||||||
Insurance and claims | 13,074 | 12,947 | 36,810 | 35,752 | |||||||||||||||||||
Communications and utilities | 1,254 | 1,339 | 3,753 | 3,723 | |||||||||||||||||||
General supplies and expenses | 11,774 | 11,201 | 38,169 | 28,416 | |||||||||||||||||||
Depreciation and amortization | 18,182 | 14,357 | 51,701 | 41,734 | |||||||||||||||||||
Gain on disposition of property and equipment, net | (602 | ) | (38,721 | ) | (12,380 | ) | (39,287 | ) | |||||||||||||||
Total operating expenses | 273,580 | 252,780 | 785,032 | 811,022 | |||||||||||||||||||
Operating income | 15,141 | 59,059 | 44,556 | 109,779 | |||||||||||||||||||
Interest expense, net | 2,637 | 935 | 5,530 | 2,256 | |||||||||||||||||||
Income from equity method investment | (5,335 | ) | (7,400 | ) | (16,659 | ) | (21,261 | ) | |||||||||||||||
Income from continuing operations before income taxes | 17,839 | 65,524 | 55,685 | 128,784 | |||||||||||||||||||
Income tax expense | 4,483 | 15,563 | 13,701 | 32,130 | |||||||||||||||||||
Income from continuing operations | 13,356 | 49,961 | 41,984 | 96,654 | |||||||||||||||||||
Income from discontinued operations, net of tax | 150 | 525 | 450 | 525 | |||||||||||||||||||
Net income | $ | 13,506 | $ | 50,486 | $ | 42,434 | $ | 97,179 | |||||||||||||||
Basic earnings per share | |||||||||||||||||||||||
Income from continuing operations | $ | 1.03 | $ | 3.47 | $ | 3.21 | $ | 6.24 | |||||||||||||||
Income from discontinued operations | $ | 0.01 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||||||||||||
Net income | $ | 1.04 | $ | 3.50 | $ | 3.24 | $ | 6.27 | |||||||||||||||
Diluted earnings per share | |||||||||||||||||||||||
Income from continuing operations | $ | 0.98 | $ | 3.36 | $ | 3.06 | $ | 6.09 | |||||||||||||||
Income from discontinued operations | $ | 0.01 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||||||||||||
Net income | $ | 0.99 | $ | 3.39 | $ | 3.09 | $ | 6.12 | |||||||||||||||
Basic weighted average shares outstanding (000s) | 12,947 | 14,405 | 13,082 | 15,495 | |||||||||||||||||||
Diluted weighted average shares outstanding (000s) | 13,679 | 14,892 | 13,739 | 15,875 |
Segment Freight Revenues | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($s in 000's) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Expedited - Truckload | $ | 91,689 | $ | 91,630 | 0.1 | % | $ | 259,316 | $ | 264,996 | (2.1 | %) | |||||||||||
Dedicated - Truckload | 66,936 | 74,778 | (10.5 | %) | 202,561 | 223,652 | (9.4 | %) | |||||||||||||||
Combined Truckload | 158,625 | 166,408 | (4.7 | %) | 461,877 | 488,648 | (5.5 | %) | |||||||||||||||
Managed Freight | 69,713 | 78,382 | (11.1 | %) | 193,868 | 244,814 | (20.8 | %) | |||||||||||||||
Warehousing | 25,039 | 21,809 | 14.8 | % | 74,758 | 57,607 | 29.8 | % | |||||||||||||||
Consolidated Freight Revenue | $ | 253,377 | $ | 266,599 | (5.0 | %) | $ | 730,503 | $ | 791,069 | (7.7 | %) |
Truckload Operating Statistics | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||
Average freight revenue per loaded mile | $ | 2.64 | $ | 2.79 | (5.4 | %) | $ | 2.66 | $ | 2.74 | (2.9 | %) | |||||||||||
Average freight revenue per total mile | $ | 2.33 | $ | 2.46 | (5.3 | %) | $ | 2.34 | $ | 2.43 | (3.7 | %) | |||||||||||
Average freight revenue per tractor per week | $ | 5,677 | $ | 5,462 | 3.9 | % | $ | 5,618 | $ | 5,379 | 4.4 | % | |||||||||||
Average miles per tractor per period | 32,076 | 29,154 | 10.0 | % | 93,480 | 86,483 | 8.1 | % | |||||||||||||||
Weighted avg. tractors for period | 2,126 | 2,318 | (8.3 | %) | 2,108 | 2,329 | (9.5 | %) | |||||||||||||||
Tractors at end of period | 2,149 | 2,280 | (5.7 | %) | 2,149 | 2,280 | (5.7 | %) | |||||||||||||||
Trailers at end of period | 5,871 | 5,420 | 8.3 | % | 5,871 | 5,420 | 8.3 | % |
Selected Balance Sheet Data | |||||||
($s in '000's, except per share data) | |||||||
Total assets | $ | 892,158 | $ | 796,645 | |||
Total stockholders' equity | $ | 394,024 | $ | 377,128 | |||
Total indebtedness, comprised of total debt and finance leases, net of cash | $ | 183,449 | $ | 46,356 | |||
Net Indebtedness to Capitalization Ratio | 31.8 | % | 10.9 | % | |||
Leverage Ratio(1) | 1.68 | 0.34 | |||||
Tangible book value per end-of-quarter basic share | $ | 16.91 | $ | 19.97 |
(1) | Leverage Ratio is calculated as average total indebtedness, comprised of total debt and finance leases, net of cash, divided by the trailing twelve months sum of operating income (loss), depreciation and amortization, and gain on disposition of property and equipment, net. |
Non-GAAP Reconciliation (Unaudited) | |||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio(1) | |||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
GAAP Presentation | 2023 | 2022 | bps Change | 2023 | 2022 | bps Change | |||||||||||||||||
Total revenue | $ | 288,721 | $ | 311,839 | $ | 829,588 | $ | 920,801 | |||||||||||||||
Total operating expenses | 273,580 | 252,780 | 785,032 | 811,022 | |||||||||||||||||||
Operating income | $ | 15,141 | $ | 59,059 | $ | 44,556 | $ | 109,779 | |||||||||||||||
Operating ratio | 94.8 | % | 81.1 | % | 1,370 | 94.6 | % | 88.1 | % | 650 | |||||||||||||
Non-GAAP Presentation | 2023 | 2022 | bps Change | 2023 | 2022 | bps Change | |||||||||||||||||
Total revenue | $ | 288,721 | $ | 311,839 | $ | 829,588 | $ | 920,801 | |||||||||||||||
Fuel surcharge revenue | (35,344 | ) | (45,240 | ) | (99,085 | ) | (129,732 | ) | |||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge) | 253,377 | 266,599 | 730,503 | 791,069 | |||||||||||||||||||
Total operating expenses | 273,580 | 252,780 | 785,032 | 811,022 | |||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Fuel surcharge revenue | (35,344 | ) | (45,240 | ) | (99,085 | ) | (129,732 | ) | |||||||||||||||
Amortization of intangibles (2) | (2,220 | ) | (1,121 | ) | (5,142 | ) | (3,185 | ) | |||||||||||||||
Gain on disposal of terminals, net | - | 38,542 | 7,627 | 38,542 | |||||||||||||||||||
Contingent consideration liability adjustment | (493 | ) | (813 | ) | (2,485 | ) | (813 | ) | |||||||||||||||
Transaction and executive retirement | - | - | (2,158 | ) | - | ||||||||||||||||||
Adjusted operating expenses | 235,523 | 244,148 | 683,789 | 715,834 | |||||||||||||||||||
Adjusted operating income | 17,854 | 22,451 | 46,714 | 75,235 | |||||||||||||||||||
Adjusted operating ratio | 93.0 | % | 91.6 | % | 140 | 93.6 | % | 90.5 | % | 310 |
(1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio. |
(2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. |
Non-GAAP Reconciliation (Unaudited) | |||||||||||||||
Adjusted Net Income and Adjusted EPS(1) | |||||||||||||||
(Dollars in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
GAAP Presentation - Net income | $ | 13,506 | $ | 50,486 | $ | 42,434 | $ | 97,179 | |||||||
Adjusted for: | |||||||||||||||
Amortization of intangibles(2) | 2,220 | 1,121 | 5,142 | 3,185 | |||||||||||
Discontinued operations reversal of loss contingency(3) | (200 | ) | (700 | ) | (600 | ) | (700 | ) | |||||||
Gain on disposal of terminal, net | - | (38,542 | ) | (7,627 | ) | (38,542 | ) | ||||||||
Contingent consideration liability adjustment | 493 | 813 | 2,485 | 813 | |||||||||||
Transaction and executive retirement | - | - | 2,158 | - | |||||||||||
Total adjustments before taxes | 2,513 | (37,308 | ) | 1,558 | (35,244 | ) | |||||||||
Provision for income tax expense at effective rate | (631 | ) | 9,463 | (294 | ) | 8,923 | |||||||||
Tax effected adjustments | $ | 1,882 | $ | (27,845 | ) | $ | 1,264 | $ | (26,321 | ) | |||||
- | - | (1,000 | ) | - | |||||||||||
Non-GAAP Presentation - Adjusted net income | $ | 15,388 | $ | 22,641 | $ | 42,698 | $ | 70,858 | |||||||
GAAP Presentation - Diluted earnings per share ("EPS") | $ | 0.99 | $ | 3.39 | $ | 3.09 | $ | 6.12 | |||||||
Adjusted for: | |||||||||||||||
Amortization of intangibles(2) | 0.16 | 0.08 | 0.37 | 0.20 | |||||||||||
Discontinued operations reversal of loss contingency(3) | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.04 | ) | |||||||
Gain on disposal of terminal, net | - | (2.59 | ) | (0.55 | ) | (2.43 | ) | ||||||||
Contingent consideration liability adjustment | 0.04 | 0.05 | 0.18 | 0.05 | |||||||||||
Transaction and executive retirement | - | - | 0.16 | - | |||||||||||
Total adjustments before taxes | 0.19 | (2.51 | ) | 0.12 | (2.22 | ) | |||||||||
Provision for income tax expense at effective rate | (0.05 | ) | 0.64 | (0.02 | ) | 0.56 | |||||||||
- | - | (0.07 | ) | - | |||||||||||
Tax effected adjustments | $ | 0.14 | ($ | 1.87 | ) | $ | 0.03 | - | |||||||
Non-GAAP Presentation - Adjusted EPS | $ | 1.13 | $ | 1.52 | $ | 3.12 | $ | 4.46 |
(1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS. | |
(2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. | |
(3) | "Discontinued Operations reversal of loss contingency" reflects the non-cash reversal of a previously recorded loss contingency that is no longer considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS. |
Non-GAAP Reconciliation (Unaudited) | |||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio(1) | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended | ||||||||||||||||||||||||||||||||||||||
GAAP Presentation | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | ||||||||||||||||||||||||||||||
Total revenue | $ | 113,419 | $ | 80,242 | $ | 193,661 | $ | 69,713 | $ | 25,347 | $ | 117,793 | $ | 93,423 | $ | 211,216 | $ | 78,382 | $ | 22,241 | |||||||||||||||||||
Total operating expenses | 105,897 | 77,266 | $ | 183,163 | $ | 65,971 | 24,446 | 87,133 | 74,007 | 161,140 | 69,777 | 21,863 | |||||||||||||||||||||||||||
Operating income | $ | 7,522 | $ | 2,976 | $ | 10,498 | $ | 3,742 | $ | 901 | $ | 30,660 | $ | 19,416 | $ | 50,076 | $ | 8,605 | $ | 378 | |||||||||||||||||||
Operating ratio | 93.4 | % | 96.3 | % | 94.6 | % | 94.6 | % | 96.4 | % | 74.0 | % | 79.2 | % | 76.3 | % | 89.0 | % | 98.3 | % | |||||||||||||||||||
Non-GAAP Presentation | |||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 113,419 | $ | 80,242 | $ | 193,661 | $ | 69,7131 | $ | 25,347 | $ | 117,793 | $ | 93,423 | $ | 211,216 | $ | 78,382 | $ | 22,241 | |||||||||||||||||||
Fuel surcharge revenue | (21,730 | ) | (13,306 | ) | (35,036 | ) | - | (308 | ) | (26,163 | ) | (18,645 | ) | (44,808 | ) | - | (432 | ) | |||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge) | 91,689 | 66,936 | 158,625 | 69,713 | 25,039 | 91,630 | 74,778 | 166,408 | 78,382 | 21,809 | |||||||||||||||||||||||||||||
Total operating expenses | 105,897 | 77,266 | 183,163 | 65,971 | 24,446 | 87,133 | 74,007 | 161,140 | 69,777 | 21,863 | |||||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (21,730 | ) | (13,306 | ) | (35,036 | ) | - | (308 | ) | (26,163 | ) | (18,645 | ) | (44,808 | ) | - | (432 | ) | |||||||||||||||||||||
Amortization of intangibles(2) | (534 | ) | (1,315 | ) | (1,849 | ) | (112 | ) | (259 | ) | (534 | ) | (293 | ) | (827 | ) | (35 | ) | (259 | ) | |||||||||||||||||||
Gain on disposal of terminal, net | - | - | - | - | - | 21,223 | 17,319 | 38,542 | - | - | |||||||||||||||||||||||||||||
Contingent consideration liability adjustment | (493 | ) | - | (493 | ) | - | - | (813 | ) | - | (813 | ) | - | - | |||||||||||||||||||||||||
Adjusted operating expenses | 83,140 | 62,645 | 145,785 | 65,859 | 23,879 | 80,846 | 72,388 | 153,234 | 69,742 | 21,172 | |||||||||||||||||||||||||||||
Adjusted operating income | 8,549 | 4,291 | 12,840 | 3,854 | 1,160 | 10,784 | 2,390 | 13,174 | 8,640 | 637 | |||||||||||||||||||||||||||||
Adjusted operating ratio | 90.7 | % | 93.6 | % | 91.9 | % | 94.5 | % | 95.4 | % | 88.2 | % | 96.8 | % | 92.1 | % | 89.0 | % | 97.1 | % | |||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||
GAAP Presentation | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | ||||||||||||||||||||||||||||||
Total revenue | $ | 318,388 | $ | 241,680 | $ | 560,068 | $ | 193,868 | $ | 75,652 | $ | 338,234 | $ | 279,136 | $ | 617,370 | $ | 244,814 | $ | 58,617 | |||||||||||||||||||
Total operating expenses | 295,775 | $ | 228,314 | $ | 524,089 | $ | 186,963 | $ | 73,980 | $ | 283,632 | $ | 254,199 | $ | 537,831 | $ | 216,752 | $ | 56,439 | ||||||||||||||||||||
Operating income | $ | 22,613 | $ | 13,366 | $ | 35,979 | $ | 6,905 | $ | 1,672 | $ | 54,602 | $ | 24,937 | $ | 79,539 | $ | 28,062 | $ | 2,178 | |||||||||||||||||||
Operating ratio | 92.9 | % | 94.5 | % | 93.6 | % | 96.4 | % | 97.8 | % | 83.9 | % | 91.1 | % | 87.1 | % | 88.5 | % | 96.3 | % | |||||||||||||||||||
Non-GAAP Presentation | |||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 318,388 | $ | 241,680 | $ | 560,068 | $ | 193,868 | $ | 75,652 | $ | 338,234 | $ | 279,136 | $ | 617,370 | $ | 244,814 | $ | 58,617 | |||||||||||||||||||
Fuel surcharge revenue | (59,072 | ) | (39,119 | ) | ($ | 98,191 | ) | - | (894 | ) | (73,238 | ) | (55,484 | ) | (128,722 | ) | - | (1,010 | ) | ||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge) | 259,316 | 202,561 | 461,877 | 193,868 | 74,758 | 264,996 | 223,652 | 488,648 | 244,814 | 57,607 | |||||||||||||||||||||||||||||
Total operating expenses | 295,775 | 228,314 | 524,089 | 186,963 | 73,980 | 283,632 | 254,199 | 537,831 | 216,752 | 56,439 | |||||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue | (59,072 | ) | (39,119 | ) | (98,191 | ) | - | (894 | ) | (73,238 | ) | (55,484 | ) | (128,722 | ) | - | (1,010 | ) | |||||||||||||||||||||
Amortization of intangibles(2) | (1,600 | ) | (2,583 | ) | (4,183 | ) | (182 | ) | (777 | ) | (1,423 | ) | (879 | ) | (2,302 | ) | (106 | ) | (777 | ) | |||||||||||||||||||
Gain on disposal of terminal, net | 3,928 | 3,699 | 7,627 | - | - | 21,223 | 17,319 | 38,542 | - | - | |||||||||||||||||||||||||||||
Contingent consideration liability adjustment | (2,485 | ) | - | (2,485 | ) | - | - | (813 | ) | - | (813 | ) | - | - | |||||||||||||||||||||||||
Transaction and executive retirement | (1,113 | ) | (876 | ) | (1,989 | ) | (90 | ) | (79 | ) | - | - | - | - | - | ||||||||||||||||||||||||
Adjusted operating expenses | 235,433 | 189,435 | 424,868 | 186,691 | 72,230 | 229,381 | 215,155 | 444,536 | 216,646 | 54,652 | |||||||||||||||||||||||||||||
Adjusted operating income | 23,883 | 13,126 | 37,009 | 7,177 | 2,528 | 35,615 | 8,497 | 44,112 | 28,168 | 2,955 | |||||||||||||||||||||||||||||
Adjusted operating ratio | 90.8 | % | 93.5 | % | 92.0 | % | 96.3 | % | 96.6 | % | 86.6 | % | 96.2 | % | 91.0 | % | 88.5 | % | 94.9 | % |
(1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio. | |
(2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. |
Source:
2023 GlobeNewswire, Inc., source