- Operating Revenues $1.3 billion; $1.3 billion in
2023
- Income from Operations $51.0 million; $103.8 million in
2023
- Diluted Earnings per Share $0.20; Adjusted Diluted Earnings
Per Share $0.21
- Updated full year Adjusted Diluted Earnings per Share
guidance to $0.80 - $0.90
- Updated full year Net Capital Expenditures guidance of
$300.0 - $350.0 million
Schneider National, Inc. (NYSE: SNDR, “Schneider” or the
“Company”), a leading transportation and logistics services
company, today announced results for the three months ended June
30, 2024.
“The second quarter showed continued progress toward market
equilibrium as evidenced by moderate seasonality and a tightening
spot market,” said Mark Rourke, President and Chief Executive
Officer of Schneider. “Enterprise results benefited from our
continued emphasis on cost containment and asset efficiency,
contributing to sequentially improved performance across our
multimodal platform of Truckload, Intermodal and Logistics.”
“We have maintained pricing discipline in a highly competitive
bid season, and while certain elements of our portfolio achieved
positive contract pricing during the second quarter renewals, the
rate and pace of the change to date are below our expectations,”
Rourke continued. “For the second half of the year, we anticipate
movement towards more typical freight replenishment and seasonality
trends, contributing to continued improvement in margin performance
across our operating segments.”
Results of Operations (unaudited)
The following table summarizes the Company’s results of
operations for the periods indicated.
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions, except ratios & per
share amounts)
2024
2023
Change
2024
2023
Change
Operating revenues
$
1,316.7
$
1,346.5
(2)%
$
2,635.7
$
2,775.2
(5)%
Revenues (excluding fuel
surcharge)
1,167.9
1,190.9
(2)%
2,331.0
2,440.4
(4)%
Income from operations
51.0
103.8
(51)%
79.7
218.4
(64)%
Adjusted income from
operations
52.3
106.7
(51)%
82.3
221.3
(63)%
Operating ratio
96.1
%
92.3
%
(380) bps
97.0
%
92.1
%
(490) bps
Adjusted operating ratio
95.5
%
91.0
%
(450) bps
96.5
%
90.9
%
(560) bps
Net income
$
35.3
$
77.5
(54)%
$
53.8
$
175.5
(69)%
Adjusted net income
36.3
79.7
(54)%
55.8
177.7
(69)%
Adjusted EBITDA
152.9
199.1
(23)%
283.6
422.5
(33)%
Diluted earnings per share
0.20
0.43
(53)%
0.31
0.98
(68)%
Adjusted diluted earnings per
share
0.21
0.45
(53)%
0.32
0.99
(68)%
Weighted average diluted shares
outstanding
175.8
178.7
(2.9)
176.2
178.9
(2.7)
Enterprise Results
Enterprise income from operations for the second quarter of 2024
was $51.0 million, a decrease of $52.8 million, or 51%, compared to
the same quarter in 2023. Diluted earnings per share in the second
quarter of 2024 was $0.20 compared to $0.43 in the prior year.
Gains on the sales of transportation equipment were $9.9 million
lower compared to the same quarter in 2023.
Cash Flow and Capitalization
At June 30, 2024, the Company had $265.0 million outstanding on
total debt and finance lease obligations compared to $302.1 million
as of December 31, 2023. The Company had cash and cash equivalents
of $103.2 million and $102.4 million as of June 30, 2024 and
December 31, 2023, respectively.
The Company’s cash provided by operating activities for the
second quarter of 2024 increased year over year, while net capital
expenditures were lower year over year largely due to reduced
purchases of transportation equipment. As of June 30, 2024, year to
date free cash flow increased $93.5 million compared to the same
period in 2023.
In February 2023, the Company announced the approval of a $150.0
million stock repurchase program. As of June 30, 2024, the Company
had repurchased 3.6 million Class B shares for a total of $91.9
million under the program to date. In April 2024, the Company’s
Board of Directors declared a $0.095 dividend payable to
shareholders of record as of June 7, 2024, which was paid on July
9, 2024. On July 29, 2024, the Company’s Board of Directors
declared a $0.095 dividend payable to shareholders of record as of
September 13, 2024, expected to be paid on October 8, 2024. As of
June 30, 2024, the Company had returned $33.3 million in the form
of dividends to shareholders year to date.
Results of Operations – Reportable Segments
Truckload
Truckload revenues (excluding fuel surcharge) for the second
quarter of 2024 were $540.3 million, an increase of $7.6 million,
compared to the same quarter in 2023. Results were driven by
organic and acquisitive growth in dedicated, partially offset by
lower network pricing and volumes year over year. Truckload revenue
per truck per week was $3,933, a decrease of 2% compared to the
same quarter in 2023. Network revenue per truck per week increased
3% from the prior quarter, while Dedicated revenue per truck per
week improved 2%.
Truckload income from operations was $30.7 million in the second
quarter of 2024, a decrease of $34.1 million, or 53%, compared to
the same quarter in 2023 primarily due to lower network pricing and
volumes, as well as decreased gains on the sale of transportation
equipment. Truckload operating ratio was 94.3% in the second
quarter of 2024 compared to 87.8% in the second quarter of 2023. A
level of seasonal freight volumes as well as targeted productivity
actions favorably impacted operating ratio, which improved 290
basis points from the first quarter of 2024.
Intermodal
Intermodal revenues (excluding fuel surcharge) for the second
quarter of 2024 were $253.1 million, a decrease of $7.9 million, or
3%, compared to the same quarter in 2023, largely due to lower
revenue per order compared to the same quarter in 2023. Volumes
were up slightly compared to the same period a year ago.
Intermodal income from operations for the second quarter of 2024
was $14.6 million, a decrease of $9.1 million, or 38%, compared to
the same quarter in 2023. Results were primarily due to lower
revenue per order, partially offset by network management,
operational and dray cost improvements. Intermodal operating ratio
was 94.2% in the second quarter of 2024, compared to 90.9% in the
second quarter of 2023. Volume growth and productivity actions
favorably impacted operating ratio, which improved 300 basis points
from the first quarter of 2024.
Logistics
Logistics revenues (excluding fuel surcharge) for the second
quarter of 2024 were $318.8 million, a decrease of $24.6 million,
or 7%, compared to the same quarter in 2023, driven by decreased
revenue per order and 4% lower brokerage volume compared to the
same quarter in the prior year. Power Only continued to recognize
volume growth year over year as well as momentum from the prior
quarter.
Logistics income from operations for the second quarter of 2024
was $11.2 million, a decrease of $1.6 million, or 13%, compared to
the same quarter in 2023 primarily due to lower brokerage volumes
and decreased net revenue per order. Logistics operating ratio was
96.5% in the second quarter of 2024, compared to 96.3% in the
second quarter of 2023. Effective gross margin management
contributed to the 180 basis point improvement in operating ratio
compared to the first quarter of 2024.
Business Outlook
(in millions, except per share
data)
Current Guidance
Prior Guidance
Adjusted diluted earnings per
share
$0.80 - $0.90
$0.85 - $1.00
Net capital expenditures
$300.0 - $350.0
$350.0 - $400.0
“Our results for the second quarter reflected progress in both
external market dynamics and our continued internal efforts to
restore margins,” said Darrell Campbell, Executive Vice President
and Chief Financial Officer of Schneider. “We are approximately
three quarters of the way through the freight allocation season in
our network businesses and those outcomes have shifted the timing
of achieving the level of pricing improvements that we previously
anticipated. As a result, we are updating our full year 2024
adjusted diluted earnings per share guidance to a range of $0.80 -
$0.90, as well as net capital expenditures guidance to a range of
$300 - $350 million.”
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, adjusted
EBITDA, free cash flow, 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 2024 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
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.
SCHNEIDER NATIONAL, INC. CONSOLIDATED
STATEMENTS OF INCOME (Unaudited) (in millions, except per share
data)
Three Months Ended
Six Months
Ended
June 30,
June 30,
2024
2023
2024
2023
Operating revenues
$
1,316.7
$
1,346.5
$
2,635.7
$
2,775.2
Operating expenses:
Purchased transportation
493.3
531.8
1,002.0
1,094.9
Salaries, wages, and benefits
352.3
325.5
707.4
663.3
Fuel and fuel taxes
100.7
96.8
208.4
209.8
Depreciation and amortization
102.5
93.2
205.3
185.0
Operating supplies and
expenses—net
157.2
140.6
310.8
288.5
Insurance and related
expenses
33.2
25.7
64.3
50.4
Other general expenses
26.5
29.1
57.8
64.9
Total operating expenses
1,265.7
1,242.7
2,556.0
2,556.8
Income from operations
51.0
103.8
79.7
218.4
Other expenses (income):
Interest income
(0.9
)
(2.6
)
(1.7
)
(4.7
)
Interest expense
4.3
2.4
8.3
6.8
Other expense (income)—net
0.6
0.8
1.4
(16.2
)
Total other expenses
(income)—net
4.0
0.6
8.0
(14.1
)
Income before income taxes
47.0
103.2
71.7
232.5
Provision for income taxes
11.7
25.7
17.9
57.0
Net income
$
35.3
$
77.5
$
53.8
$
175.5
Weighted average shares
outstanding
175.5
178.1
175.7
178.1
Basic earnings per share
$
0.20
$
0.44
$
0.31
$
0.99
Weighted average diluted shares
outstanding
175.8
178.7
176.2
178.9
Diluted earnings per share
$
0.20
$
0.43
$
0.31
$
0.98
SCHNEIDER NATIONAL, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions)
June 30,
December 31,
2024
2023
Assets
Cash and cash equivalents
$
103.2
$
102.4
Trade accounts receivable—net
551.7
575.7
Other current assets
395.5
432.8
Net property and equipment
2,590.7
2,581.7
Other noncurrent assets
906.8
864.6
Total Assets
$
4,547.9
$
4,557.2
Liabilities and Shareholders’
Equity
Trade accounts payable
$
218.0
$
241.3
Current maturities of debt and
finance lease obligations
139.2
104.5
Other current liabilities
302.1
260.4
Long-term debt and finance lease
obligations
125.8
197.6
Deferred income taxes
577.3
595.7
Other noncurrent liabilities
233.9
200.9
Shareholders’ Equity
2,951.6
2,956.8
Total Liabilities and
Shareholders’ Equity
$
4,547.9
$
4,557.2
SCHNEIDER NATIONAL, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in
millions)
Six Months
Ended
June 30,
2024
2023
Net cash provided by operating
activities
$
280.2
$
303.2
Net cash used in investing
activities
(178.1
)
(364.1
)
Net cash used in financing
activities
(101.3
)
(75.6
)
Net increase (decrease) in cash
and cash equivalents
$
0.8
$
(136.5
)
Net capital expenditures
$
(181.6
)
$
(298.1
)
Schneider National, Inc.
Revenues and Income (Loss) from Operations by Segment
(unaudited)
Revenues by Segment
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Truckload
$
540.3
$
532.7
$
1,078.4
$
1,069.7
Intermodal
253.1
261.0
500.3
527.1
Logistics
318.8
343.4
643.7
725.6
Other
95.6
78.9
189.9
171.1
Fuel surcharge
148.8
155.6
304.7
334.8
Inter-segment eliminations
(39.9
)
(25.1
)
(81.3
)
(53.1
)
Operating revenues
$
1,316.7
$
1,346.5
$
2,635.7
$
2,775.2
Income (Loss) from Operations by
Segment
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Truckload
$
30.7
$
64.8
$
45.6
$
127.4
Intermodal
14.6
23.7
21.6
53.7
Logistics
11.2
12.8
16.6
31.3
Other
(5.5
)
2.5
(4.1
)
6.0
Income from operations
$
51.0
$
103.8
$
79.7
$
218.4
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.
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Dedicated
Revenues (excluding fuel
surcharge) (1)
$
346.4
$
302.8
$
687.8
$
605.8
Average trucks (2) (3)
6,683
5,973
6,697
5,961
Revenue per truck per week
(4)
$
4,025
$
3,948
$
3,997
$
3,963
Network
Revenues (excluding fuel
surcharge) (1)
$
193.8
$
230.2
$
390.0
$
464.3
Average trucks (2) (3)
3,982
4,390
4,080
4,429
Revenue per truck per week
(4)
$
3,778
$
4,083
$
3,719
$
4,089
Total Truckload
Revenues (excluding fuel
surcharge) (5)
$
540.3
$
532.7
$
1,078.4
$
1,069.7
Average trucks (2) (3)
10,665
10,363
10,777
10,390
Revenue per truck per week
(4)
$
3,933
$
4,005
$
3,892
$
4,017
Average company trucks (3)
9,077
8,400
9,124
8,437
Average owner-operator trucks
(3)
1,588
1,963
1,653
1,953
Trailers (6)
47,154
44,714
47,154
44,714
Operating ratio (7)
94.3
%
87.8
%
95.8
%
88.1
%
(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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Orders (1)
103,088
102,622
203,582
203,367
Containers
26,695
27,419
26,695
27,419
Trucks
1,408
1,568
1,408
1,568
Revenue per order (2)
$
2,446
$
2,572
$
2,443
$
2,600
Operating ratio (3)
94.2
%
90.9
%
95.7
%
89.8
%
(1)
Based on delivered rail orders.
(2)
Calculated using rail revenues excluding
fuel surcharge and revenue in transit, consistent with how revenue
is reported internally for segment purposes.
(3)
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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Operating ratio (1)
96.5
%
96.3
%
97.4
%
95.7
%
(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, (5) adjusted EBITDA, (6) free cash flow, and
(7) 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. Free cash flow is used as a measure to assess
overall liquidity and does not represent residual cash flow
available for discretionary expenditures as it excludes certain
mandatory expenditures such as repayment of maturing debt.
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
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Operating revenues
$
1,316.7
$
1,346.5
$
2,635.7
$
2,775.2
Less: Fuel surcharge revenues
148.8
155.6
304.7
334.8
Revenues (excluding fuel
surcharge)
$
1,167.9
$
1,190.9
$
2,331.0
$
2,440.4
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
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Income from operations
$
51.0
$
103.8
$
79.7
$
218.4
Litigation and audit assessments
(1)
—
2.9
—
2.9
Amortization of intangible assets
(2)
1.3
—
2.6
—
Adjusted income from
operations
$
52.3
$
106.7
$
82.3
$
221.3
(1)
Includes $2.9 million for the three and
six months ended June 30, 2023 for charges related to adverse audit
assessments for prior period state sales tax on rolling stock
equipment used within that state. Refer to Note 12, Commitments and
Contingencies, for additional details.
(2)
Amortization expense related to intangible
assets acquired through recent business acquisitions. As we
finalized our purchase accounting adjustments related to intangible
assets, we made the decision to exclude the related amortization
expense from adjusted income from operations and adjusted net
income beginning in the fourth quarter of 2023. Although intangible
assets contribute to our revenue generation, the amortization of
intangible assets does not directly relate to transportation
services provided to our customers.
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
Six Months Ended
June 30,
June 30,
(in millions, except ratios)
2024
2023
2024
2023
Total operating expenses
$
1,265.7
$
1,242.7
$
2,556.0
$
2,556.8
Divide by: Operating revenues
1,316.7
1,346.5
2,635.7
2,775.2
Operating ratio
96.1
%
92.3
%
97.0
%
92.1
%
Total operating expenses
$
1,265.7
$
1,242.7
$
2,556.0
$
2,556.8
Adjusted for:
Fuel surcharge revenues
(148.8
)
(155.6
)
(304.7
)
(334.8
)
Litigation and audit
assessments
—
(2.9
)
—
(2.9
)
Amortization of intangible
assets
(1.3
)
—
(2.6
)
—
Adjusted total operating
expenses
$
1,115.6
$
1,084.2
$
2,248.7
$
2,219.1
Operating revenues
$
1,316.7
$
1,346.5
$
2,635.7
$
2,775.2
Less: Fuel surcharge revenues
148.8
155.6
304.7
334.8
Revenues (excluding fuel
surcharge)
$
1,167.9
$
1,190.9
$
2,331.0
$
2,440.4
Adjusted operating ratio
95.5
%
91.0
%
96.5
%
90.9
%
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
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Net income
$
35.3
$
77.5
$
53.8
$
175.5
Litigation and audit
assessments
—
2.9
—
2.9
Amortization of intangible
assets
1.3
—
2.6
—
Income tax effect of non-GAAP
adjustments (1)
(0.3
)
(0.7
)
(0.6
)
(0.7
)
Adjusted net income
$
36.3
$
79.7
$
55.8
$
177.7
(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 EBITDA
We define “adjusted EBITDA” as net income, adjusted to exclude
net interest expense, our provision for income taxes, depreciation
and amortization, and certain 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 EBITDA.
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Net income
$
35.3
$
77.5
$
53.8
$
175.5
Interest expense (income),
net
3.4
(0.2
)
6.6
2.1
Provision for income taxes
11.7
25.7
17.9
57.0
Depreciation and amortization
102.5
93.2
205.3
185.0
Litigation and audit
assessments
—
2.9
—
2.9
Adjusted EBITDA
$
152.9
$
199.1
$
283.6
$
422.5
Free cash flow
We define “free cash flow” as net cash provided by operating
activities less net cash used for capital expenditures.
Three Months Ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Net cash provided by operating
activities
$
182.6
$
120.1
$
280.2
$
303.2
Purchases of transportation
equipment
(97.1
)
(201.3
)
(220.4
)
(344.4
)
Purchases of other property and
equipment
(7.4
)
(12.9
)
(19.4
)
(25.3
)
Proceeds from sale of property
and equipment
34.8
37.0
58.2
71.6
Net capital expenditures
(69.7
)
(177.2
)
(181.6
)
(298.1
)
Free cash flow
$
112.9
$
(57.1
)
$
98.6
$
5.1
Adjusted diluted earnings per share
(1)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Diluted earnings per share
$
0.20
$
0.43
$
0.31
$
0.98
Non-GAAP adjustments, tax
effected
0.01
0.01
0.01
0.01
Adjusted diluted earnings per
share
$
0.21
$
0.45
$
0.32
$
0.99
(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 23, 2024, 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 truck capacity
brought about by cyclical 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/20240731923548/en/
Steve Bindas, Director of Investor Relations 920-357-SNDR
investor@schneider.com
Schneider National (NYSE:SNDR)
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