- Operating Revenues $1.4 billion; $1.7 billion in
2022
- Income from Operations $46.7 million; $145.4 million in
2022
- Diluted Earnings per Share $0.20; $0.70 in 2022
- Updated full year Adjusted Diluted Earnings per Share
guidance to $1.40 - $1.45
Schneider National, Inc. (NYSE: SNDR, “Schneider” or the
“Company”), a leading transportation and logistics services
company, today announced results for the three and nine months
ended September 30, 2023.
“Our enterprise experienced year over year declines in revenue
and earnings in the third quarter, a period which we believe
represents the most challenging phase of this prolonged freight
recession,” said Mark Rourke, President and Chief Executive Officer
of Schneider. “Our results were driven by ongoing price pressures
primarily in our network businesses, as well as other headwinds
such as fuel, bad debt, and lower equipment gains.”
“Though we are feeling the effects of the current environment
across the business, our performance is augmented by our platform
diversity that we have strategically advanced over the past several
years,” commented Rourke. “We are actively onboarding new dedicated
business within our Truckload segment, and while this startup
activity is accompanied by near-term friction costs, we are pleased
with the growth and contributions of this key component of our
portfolio. Dedicated, with the addition of M&M Transport this
quarter, now comprises over 60% of our total Truckload fleet. In
Intermodal, our complementary rail partnerships are providing
synergistic and compelling service and transit times. Our Logistics
segment continues to drive new business into the Enterprise through
both brokerage and Power Only services while effectively managing
through challenging market conditions.”
“As we navigate the late stages of the current freight cycle, we
are preparing our business for the inevitable market recovery and
advancing our strategic growth objectives for Dedicated,
Intermodal, and Logistics,” Rourke stated.
Results of Operations (unaudited)
The following table summarizes the Company’s results of
operations for the periods indicated.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except ratios & per
share amounts)
2023
2022
Change
2023
2022
Change
Operating revenues
$
1,352.0
$
1,675.3
(19)%
$
4,127.2
$
5,042.7
(18)%
Revenues (excluding fuel surcharge)
1,179.4
1,441.8
(18)%
3,619.8
4,394.2
(18)%
Income from operations
46.7
145.4
(68)%
265.1
457.1
(42)%
Adjusted income from operations
47.6
145.5
(67)%
268.9
468.7
(43)%
Operating ratio
96.5
%
91.3
%
(520) bps
93.6
%
90.9
%
(270) bps
Adjusted operating ratio
96.0
%
89.9
%
(610) bps
92.6
%
89.3
%
(330) bps
Net income
$
35.6
$
125.8
(72)%
$
211.1
$
347.7
(39)%
Adjusted net income
36.3
125.9
(71)%
214.0
356.4
(40)%
Diluted earnings per share
0.20
0.70
(71)%
1.18
1.95
(39)%
Adjusted diluted earnings per share
0.20
0.70
(71)%
1.20
2.00
(40)%
Weighted average diluted shares
outstanding
177.7
178.7
(1.0)
178.5
178.6
(0.1)
Enterprise Results
Enterprise net income for the third quarter of 2023 was $35.6
million, a decrease of $90.2 million, or 72%, compared to the same
quarter in 2022. The Company recorded net gains on equity
investments of $2.3 million compared to $25.9 million in the third
quarter of 2022, which is reflected in Other expense (income) - net
on the income statement.
At September 30, 2023, the Company had a total of $289.0 million
outstanding on various debt instruments compared to $215.1 million
as of December 31, 2022. The Company had cash and cash equivalents
of $58.5 million and $385.7 million as of September 30, 2023 and
December 31, 2022, respectively. The Company’s effective tax rate
was 22.8% in the third quarter, compared to 25.0% in the same
quarter of the prior year.
In February 2023, the Company announced the approval of a $150.0
million stock repurchase program. As of September 30, 2023, the
Company has repurchased $50.6 million under the program year to
date. In July 2023, the Company’s Board of Directors declared a
$0.09 dividend payable to shareholders of record as of September 8,
2023. This dividend was paid on October 10, 2023. On October 30,
2023, the Company’s Board of Directors declared a $0.09 dividend
payable to shareholders of record as of December 8, 2023, expected
to be paid on January 8, 2024. As of September 30, 2023, the
Company had returned $47.7 million in the form of dividends to
shareholders year to date.
Results of Operations – Reportable Segments
Truckload
Truckload revenues (excluding fuel surcharge) for the third
quarter of 2023 were $535.3 million, a decrease of $35.9 million,
or 6%, compared to the same quarter in 2022. Results were driven by
unfavorable pricing in network, partially offset by the impact of
organic dedicated growth and M&M Transport revenues. The impact
of productivity improvements were more than offset by pricing
declines in the quarter. Truckload revenue per truck per week was
$3,909, a decrease of 6% compared to the same quarter in 2022.
Revenue per truck per week in network decreased 16%, while revenue
per truck per week in dedicated increased 2%, compared to the same
quarter in 2022.
Truckload income from operations was $24.5 million in the third
quarter of 2023, a decrease of $58.7 million, or 71%, compared to
the same quarter in 2022 due to lower price in network, higher fuel
and other inflationary costs, bad debt, and friction costs related
to dedicated new business implementations. Truckload operating
ratio was 95.4% in the third quarter of 2023, compared to 85.4% in
the third quarter of 2022.
Intermodal
Intermodal revenues (excluding fuel surcharge) for the third
quarter of 2023 were $263.0 million, a decrease of $71.7 million,
or 21%, compared to the same quarter in 2022 driven by lower
revenue per order and volume, which decreased 16% and 9%,
respectively, compared to the third quarter of 2022.
Intermodal income from operations for the third quarter of 2023
was $11.1 million, a decrease of $20.0 million, or 64%, compared to
the same quarter in 2022, due to negative pricing and volume
pressures, partially offset by lower rail and dray-related costs.
Intermodal operating ratio was 95.8% in the third quarter of 2023,
compared to 90.7% in the third quarter of 2022.
Logistics
Logistics revenues (excluding fuel surcharge) for the third
quarter of 2023 were $326.0 million, a decrease of $138.2 million,
or 30%, compared to the same quarter in 2022 primarily due to
decreased revenue per order, which continues to be unfavorably
impacted by lower market prices, and lower brokerage volumes which
decreased 11% year over year.
Logistics income from operations for the third quarter of 2023
was $8.5 million, a decrease of $19.4 million, or 70%, compared to
the same quarter in 2022 due to lower volumes and net revenue per
order, and decreased port dray earnings. Logistics operating ratio
was 97.4% in the third quarter of 2023, compared to 94.0% in the
third quarter of 2022.
Business Outlook
(in millions, except per share data)
Current Guidance
Prior Guidance
Adjusted diluted earnings per share
$1.40 - $1.45
$1.75 - $1.90
Net capital expenditures
$550.0 - $575.0
$525.0 - $575.0
“Our second half 2023 earnings are clearly challenged by ongoing
pricing pressures, muted seasonality, and transitory cost items,”
said Darrell Campbell, Executive Vice President and Chief Financial
Officer of Schneider. “We are intently focused on margin
restoration particularly in our network businesses, which includes
the proactive execution of pricing strategies and positioning our
Enterprise for improving market conditions, which we expect to
materialize in the first half of 2024. Our updated guidance for
full year 2023 adjusted diluted EPS is $1.40 - $1.45 and for net
capital expenditures is a range of $550 - $575 million, with a full
year effective tax rate estimated at 24.5%.”
Non-GAAP Financial Measure
The Company has presented certain non-GAAP financial measures,
including revenues (excluding fuel surcharge), adjusted income from
operations, adjusted operating ratio, adjusted net income, and
adjusted diluted earnings per share. Management believes the use of
non-GAAP measures assists investors in understanding the business,
as further described below. The non-GAAP information provided is
used by Company 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 should not be
considered in isolation or as substitutes for analysis of results
as reported under GAAP.
A reconciliation of net income per share to adjusted diluted
earnings per share as projected for 2023 is not provided. Schneider
does not forecast net income per share as the Company cannot,
without unreasonable effort, estimate or predict with certainty
various components of net income. The components of net income that
cannot be predicted include expenses for items that do not relate
to core operating performance, such as costs related to potential
future acquisitions, as well as the 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.
Schneider National, Inc. and its subsidiaries (together
“Schneider,” the “Company,” “we,” “us,” or “our”) are among the
largest providers of surface transportation and logistics solutions
in North America. We offer a multimodal portfolio of services and
an array of capabilities and resources that leverage artificial
intelligence, data science, and analytics to provide innovative
solutions that coordinate the timely, safe, and effective movement
of customer products. The Company offers truckload, intermodal, and
logistics services to a diverse customer base throughout the
continental United States, Canada, and Mexico. We were founded in
1935 and have been a publicly held holding company since our IPO in
2017. Our stock is publicly traded on the NYSE under the ticker
symbol SNDR.
Our diversified portfolio of complementary service offerings
enables us to serve the varied needs of our customers and to
allocate capital that maximizes returns across all market cycles
and economic conditions. Our service offerings include
transportation of full-truckload freight, which we directly
transport utilizing either our company-owned transportation
equipment and company drivers, owner-operators, or third-party
carriers under contract with us. We have arrangements with most of
the major North American rail carriers to transport freight in
containers. We also provide customized freight movement,
transportation equipment, labor, systems, and delivery services
tailored to meet individual customer requirements, which typically
involve long-term contracts. These arrangements are generally
referred to as dedicated services and may include multiple pickups
and drops, local deliveries, freight handling, specialized
equipment, and freight network design. In addition, we provide
comprehensive logistics services with a network of thousands of
qualified third-party carriers. We also lease equipment to third
parties through our wholly owned subsidiary Schneider Finance,
Inc., which is primarily engaged in leasing trucks to
owner-operators, including, but not limited to, owner-operators
with whom we contract, and we provide insurance for both company
drivers and owner-operators through our wholly owned insurance
subsidiary.
Conference Call and Webcast Information
The Company will host an earnings conference call today at 10:30
a.m. Eastern Time. The conference call can be accessed by dialing
888-660-6621 toll-free or 646-960-0589 (conference ID: 7923455). A
replay will be available after the call through November 9 by
dialing 800-770-2030 toll-free or 647-362-9199 with the same
conference ID. A live webcast of the conference call can also be
accessed on the Investor Relations section of the Company’s
website, Schneider.com, along with the current quarterly investor
presentation.
Source: Schneider SNDR
SCHNEIDER NATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share
data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Operating revenues
$
1,352.0
$
1,675.3
$
4,127.2
$
5,042.7
Operating expenses:
Purchased transportation
540.0
735.0
1,634.9
2,254.0
Salaries, wages, and benefits
340.4
356.0
1,003.7
1,034.4
Fuel and fuel taxes
115.7
133.4
325.5
390.9
Depreciation and amortization
96.8
88.2
281.8
258.3
Operating supplies and expenses—net
138.5
149.7
427.0
392.0
Insurance and related expenses
26.6
26.5
77.0
78.0
Other general expenses
47.3
41.1
112.2
178.0
Total operating expenses
1,305.3
1,529.9
3,862.1
4,585.6
Income from operations
46.7
145.4
265.1
457.1
Other expenses (income):
Interest income
(1.6
)
(0.8
)
(6.3
)
(1.5
)
Interest expense
3.3
2.1
10.1
7.1
Other expense (income)—net
(1.1
)
(23.6
)
(17.3
)
(12.3
)
Total other expenses (income)—net
0.6
(22.3
)
(13.5
)
(6.7
)
Income before income taxes
46.1
167.7
278.6
463.8
Provision for income taxes
10.5
41.9
67.5
116.1
Net income
$
35.6
$
125.8
$
211.1
$
347.7
Weighted average shares outstanding
176.9
178.0
177.7
177.9
Basic earnings per share
$
0.20
$
0.71
$
1.19
$
1.95
Weighted average diluted shares
outstanding
177.7
178.7
178.5
178.6
Diluted earnings per share
$
0.20
$
0.70
$
1.18
$
1.95
SCHNEIDER NATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)
September 30,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
58.5
$
385.7
Trade accounts receivable—net
612.1
643.7
Other current assets
476.4
320.9
Net property and equipment
2,557.6
2,280.0
Other noncurrent assets
875.7
687.9
Total Assets
$
4,580.3
$
4,318.2
Liabilities and Shareholders’
Equity
Trade accounts payable
$
281.1
$
276.7
Current maturities of debt and finance
lease obligations
70.5
73.3
Other current liabilities
259.0
286.9
Long-term debt and finance lease
obligations
218.5
141.8
Deferred income taxes
589.8
538.2
Other noncurrent liabilities
204.3
164.1
Shareholders’ Equity
2,957.1
2,837.2
Total Liabilities and Shareholders’
Equity
$
4,580.3
$
4,318.2
SCHNEIDER NATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)
(in millions)
Nine Months Ended
September 30,
2023
2022
Net cash provided by operating
activities
$
486.1
$
578.3
Net cash used in investing activities
(776.8
)
(371.5
)
Net cash used in financing activities
(36.5
)
(101.9
)
Net increase (decrease) in cash and cash
equivalents
$
(327.2
)
$
104.9
Net capital expenditures
$
(428.3
)
$
(258.4
)
Schneider National, Inc. Revenues and
Income (Loss) from Operations by Segment (unaudited)
Revenues by Segment
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Truckload
$
535.3
$
571.2
$
1,605.0
$
1,691.2
Intermodal
263.0
334.7
790.1
971.9
Logistics
326.0
464.2
1,051.6
1,531.2
Other
78.4
97.3
249.5
274.2
Fuel surcharge
172.6
233.5
507.4
648.5
Inter-segment eliminations
(23.3
)
(25.6
)
(76.4
)
(74.3
)
Operating revenues
$
1,352.0
$
1,675.3
$
4,127.2
$
5,042.7
Income (Loss) from Operations by Segment
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Truckload
$
24.5
$
83.2
$
151.9
$
283.3
Intermodal
11.1
31.1
64.8
112.3
Logistics
8.5
27.9
39.8
117.1
Other
2.6
3.2
8.6
(55.6
)
Income from operations
$
46.7
$
145.4
$
265.1
$
457.1
Schneider National, Inc. Key
Performance Indicators by Segment (unaudited)
We monitor and analyze a number of KPIs in order to manage our
business and evaluate our financial and operating performance.
Truckload
The following table presents our Truckload segment KPIs for the
periods indicated, consistent with how revenues and expenses are
reported internally for segment purposes.
The two operations that make up our Truckload segment are as
follows:
- Dedicated - Transportation services with equipment
devoted to customers under long-term contracts.
- Network - Transportation services of one-way
shipments.
Impacts from M&M and deBoer are included within dedicated
operations below beginning in the third quarter of 2023 and 2022,
respectively.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Dedicated
Revenues (excluding fuel surcharge)
(1)
$
324.9
$
306.7
$
930.7
$
892.1
Average trucks (2) (3)
6,358
6,020
6,115
5,908
Revenue per truck per week (4)
$
3,986
$
3,925
$
3,958
$
3,922
Network
Revenues (excluding fuel surcharge)
(1)
$
210.1
$
265.3
$
674.4
$
796.6
Average trucks (2) (3)
4,319
4,526
4,392
4,533
Revenue per truck per week (4)
$
3,795
$
4,514
$
3,993
$
4,564
Total Truckload
Revenues (excluding fuel surcharge)
(5)
$
535.3
$
571.2
$
1,605.0
$
1,691.2
Average trucks (2) (3)
10,677
10,546
10,507
10,441
Revenue per truck per week (4)
$
3,909
$
4,178
$
3,972
$
4,201
Average company trucks (3)
8,762
8,560
8,570
8,420
Average owner-operator trucks (3)
1,915
1,986
1,937
2,021
Trailers (6)
47,007
42,980
47,007
42,980
Operating ratio (7)
95.4
%
85.4
%
90.5
%
83.2
%
(1)
Revenues (excluding fuel
surcharge), in millions, exclude revenue in transit.
(2)
Includes company and
owner-operator trucks.
(3)
Calculated based on beginning and
end of month counts and represents the average number of trucks
available to haul freight over the specified timeframe.
(4)
Calculated excluding fuel
surcharge and revenue in transit, consistent with how revenue is
reported internally for segment purposes, using weighted
workdays.
(5)
Revenues (excluding fuel
surcharge), in millions, include revenue in transit at the
operating segment level and, therefore does not sum with amounts
presented above.
(6)
Includes entire fleet of owned
trailers, including trailers with leasing arrangements between
Truckload and Logistics.
(7)
Calculated as segment operating
expenses divided by segment revenues (excluding fuel surcharge)
including revenue in transit and related expenses at the operating
segment level.
Intermodal
The following table presents the KPIs for our Intermodal segment
for the periods indicated.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Orders (1)
105,351
115,743
308,718
345,533
Containers
27,185
28,308
27,185
28,308
Trucks (2)
1,457
1,691
1,457
1,691
Revenue per order (3)
$
2,461
$
2,936
$
2,573
$
2,803
Operating ratio (4)
95.8
%
90.7
%
91.8
%
88.4
%
(1)
Based on delivered rail orders.
(2)
Includes company and owner-operator trucks
at the end of the period.
(3)
Calculated using rail revenues excluding
fuel surcharge and revenue in transit, consistent with how revenue
is reported internally for segment purposes.
(4)
Calculated as segment operating expenses
divided by segment revenues (excluding fuel surcharge) including
revenue in transit and related expenses at the operating segment
level.
Logistics
The following table presents the KPI for our Logistics segment
for the periods indicated.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Operating ratio (1)
97.4%
94.0%
96.2%
92.4%
(1)
Calculated as segment operating expenses
divided by segment revenues (excluding fuel surcharge) including
revenue in transit and related expenses at the operating segment
level.
Schneider National, Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited)
In this earnings release, we present the following non-GAAP
financial measures: (1) revenues (excluding fuel surcharge), (2)
adjusted income from operations, (3) adjusted operating ratio, (4)
adjusted net income, and (5) adjusted diluted earnings per share.
We also provide 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 (1) removing the
impact of items from our operating results that, in our opinion, do
not reflect our core operating performance, (2) providing investors
with the same information our management uses internally to assess
our core operating performance, and (3) presenting comparable
financial results between periods. In addition, in the case of
revenues (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 external factor of fluctuating fuel prices
and the programs we have in place to manage such 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 relevant factors affecting our results of operations
and our industry.
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 report in
isolation or as substitutes for, or alternatives to, analysis of
our results as reported under GAAP. The exclusion of unusual or
infrequent 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 infrequent 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.
Adjustments to arrive at non-GAAP measures are made at the
enterprise level, with the exception of fuel surcharge revenues,
which are not included in segment revenues.
Revenues (excluding fuel surcharge)
We define “revenues (excluding fuel surcharge)” as operating
revenues less fuel surcharge revenues, which are excluded from
revenues at the segment level. Included below is a reconciliation
of operating revenues, the most closely comparable GAAP financial
measure, to revenues (excluding fuel surcharge).
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Operating revenues
$
1,352.0
$
1,675.3
$
4,127.2
$
5,042.7
Less: Fuel surcharge revenues
172.6
233.5
507.4
648.5
Revenues (excluding fuel surcharge)
$
1,179.4
$
1,441.8
$
3,619.8
$
4,394.2
Adjusted income from operations
We define “adjusted income from operations” as income from
operations, adjusted to exclude material items that do not reflect
our core operating performance. Included below is a reconciliation
of income from operations, which is the most directly comparable
GAAP measure, to adjusted income from operations. Excluded items
for the periods shown are explained in the table and notes
below.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Income from operations
$
46.7
$
145.4
$
265.1
$
457.1
Litigation and audit assessments (1)
(2)
—
—
2.9
62.2
Acquisition-related costs (3)
0.9
0.1
0.9
0.3
Property gain—net (4)
—
—
—
(50.9
)
Adjusted income from operations
$
47.6
$
145.5
$
268.9
$
468.7
(1)
Includes $2.9 million for the nine months
ended September 30, 2023 and $5.2 million for the nine months ended
September 30, 2022 for charges related to adverse audit assessments
for prior period state sales tax on rolling stock equipment used
within that state.
(2)
Includes a charge of $57.0 million for an
adverse settlement related to a lawsuit with former owners of WSL,
inclusive of prejudgment interest and the former owners’ attorneys’
fees, for the nine months ended September 30, 2022.
(3)
Advisory, legal, and accounting costs
related to the acquisitions of M&M in 2023 and deBoer in
2022.
(4)
Net gain on the sale of our Canadian
facility due to a change in approach to servicing Canada.
Adjusted operating ratio
We define “adjusted operating ratio” as operating expenses,
adjusted to exclude material items that do not reflect our core
operating performance, divided by revenues (excluding fuel
surcharge). Included below is a reconciliation of operating ratio,
which is the most directly comparable GAAP measure, to adjusted
operating ratio.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except ratios)
2023
2022
2023
2022
Total operating expenses
$
1,305.3
$
1,529.9
$
3,862.1
$
4,585.6
Divide by: Operating revenues
1,352.0
1,675.3
4,127.2
5,042.7
Operating ratio
96.5
%
91.3
%
93.6
%
90.9
%
Total operating expenses
$
1,305.3
$
1,529.9
$
3,862.1
$
4,585.6
Adjusted for:
Fuel surcharge revenues
(172.6
)
(233.5
)
(507.4
)
(648.5
)
Litigation and audit assessments
—
—
(2.9
)
(62.2
)
Acquisition-related costs
(0.9
)
(0.1
)
(0.9
)
(0.3
)
Property gain—net
—
—
—
50.9
Adjusted total operating expenses
$
1,131.8
$
1,296.3
$
3,350.9
$
3,925.5
Operating revenues
$
1,352.0
$
1,675.3
$
4,127.2
$
5,042.7
Less: Fuel surcharge revenues
172.6
233.5
507.4
648.5
Revenues (excluding fuel surcharge)
$
1,179.4
$
1,441.8
$
3,619.8
$
4,394.2
Adjusted operating ratio
96.0
%
89.9
%
92.6
%
89.3
%
Adjusted net income
We define “adjusted net income” as net income, adjusted to
exclude material items that do not reflect our core operating
performance. Included below is a reconciliation of net income,
which is the most directly comparable GAAP measure, to adjusted net
income.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2023
2022
2023
2022
Net income
$
35.6
$
125.8
$
211.1
$
347.7
Litigation and audit assessments
—
—
2.9
62.2
Acquisition-related costs
0.9
0.1
0.9
0.3
Property gain—net
—
—
—
(50.9
)
Income tax effect of non-GAAP adjustments
(1)
(0.2
)
—
(0.9
)
(2.9
)
Adjusted net income
$
36.3
$
125.9
$
214.0
$
356.4
(1)
Our estimated tax rate on non-GAAP items
is determined annually using the applicable consolidated federal
and state effective tax rate, modified to remove the impact of tax
credits and adjustments that are not applicable to the specific
items. Due to the differences in the tax treatment of items
excluded from non-GAAP income, as well as the methodology applied
to our estimated annual tax rates as described above, our estimated
tax rate on non-GAAP items may differ from our GAAP tax rate and
from our actual tax liabilities.
Adjusted diluted earnings per share (1)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Diluted earnings per share
$
0.20
$
0.70
$
1.18
$
1.95
Non-GAAP adjustments, tax effected
—
—
0.02
0.05
Adjusted diluted earnings per share
$
0.20
$
0.70
$
1.20
$
2.00
(1)
Table may not sum due to rounding.
Special Note Regarding Forward-Looking Statements
This earnings release contains forward-looking statements,
within the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company’s current
expectations, beliefs, plans, or forecasts with respect to, among
other things, future events and financial performance and trends in
the business and industry. The words “may,” “will,” “could,”
“should,” “would,” “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “prospects,” “potential,” “budget,”
“forecast,” “continue,” “predict,” “seek,” “objective,” “goal,”
“guidance,” “outlook,” “effort,” “target,” and similar words,
expressions, terms, and phrases among others, generally identify
forward-looking statements, which speak only as of the date the
statements were made. Forward-looking statements involve estimates,
expectations, projections, goals, forecasts, assumptions, risks,
and uncertainties. Readers are cautioned 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.
The statements in this news release are based on currently
available information and the current expectations, forecasts, and
assumptions of the Company’s management concerning risks and
uncertainties that could cause actual outcomes or results to differ
materially from those outcomes or results that are projected,
anticipated, or implied in these statements. Such risks and
uncertainties include, among others, those discussed in Part I,
Item 1A, “Risk Factors,” of the Company’s Annual Report on Form
10-K filed on February 17, 2023, subsequent Reports on Form 10-Q
and 8-K, and other filings we make with the U.S. Securities and
Exchange Commission. 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:
inflation, both in the U.S. and globally; our ability to
successfully manage operational challenges and disruptions, as well
as related federal, state, and local government responses arising
from future pandemics; economic and business risks inherent in the
truckload and transportation industry, including inflation, freight
cycles, and competitive pressures pertaining to pricing, capacity,
and service; our ability to effectively manage tight truck capacity
brought about by driver shortages and successfully execute our
yield management strategies; our ability to maintain key customer
and supply arrangements (including dedicated arrangements) and to
manage disruption of our business due to factors outside of our
control, such as natural disasters, acts of war or terrorism,
disease outbreaks, or pandemics; volatility in the market valuation
of our investments in strategic partners and technologies; our
ability to manage and effectively implement our growth and
diversification strategies and cost saving initiatives; our
dependence on our reputation and the Schneider brand and the
potential for adverse publicity, damage to our reputation, and the
loss of brand equity; risks related to demand for our service
offerings; risks associated with the loss of a significant customer
or customers; capital investments that fail to match customer
demand or for which we cannot obtain adequate funding; fluctuations
in the price or availability of fuel, the volume and terms of
diesel fuel purchase agreements, our ability to recover fuel costs
through our fuel surcharge programs, and potential changes in
customer preferences (e.g. truckload vs. intermodal services)
driven by diesel fuel prices; fluctuations in the value and demand
for our used Class 8 heavy-duty tractors and trailers; our ability
to attract and retain qualified drivers and owner-operators; our
reliance on owner-operators to provide a portion of our truck
fleet; our dependence on railroads in the operation of our
intermodal business; service instability, availability, and/or
increased costs from third-party capacity providers used by our
business; changes in the outsourcing practices of our third-party
logistics customers; difficulty in obtaining material, equipment,
goods, and services from our vendors and suppliers; variability in
insurance and claims expenses and the risks of insuring claims
through our captive insurance company; the impact of laws and
regulations that apply to our business, including those that relate
to the environment, taxes, associates, owner-operators, and our
captive insurance company; changes to those laws and regulations
and the increased costs of compliance with existing or future
federal, state, and local regulations; political, economic, and
other risks from cross-border operations and operations in multiple
countries; risks associated with financial, credit, and equity
markets, including our ability to service indebtedness and fund
capital expenditures and strategic initiatives; 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; significant
systems disruptions, including those caused by cybersecurity events
and firmware defects; exposure to claims and lawsuits in the
ordinary course of business; our ability to adapt to new
technologies and new participants in the truckload and
transportation industry.
The Company undertakes no obligation to publicly release any
revision to its forward looking statements to reflect events or
circumstances after the date of this earnings release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101330644/en/
Steve Bindas, Director of Investor Relations 920-357-SNDR
investor@schneider.com
Schneider National (NYSE:SNDR)
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