Schneider National, Inc. Announces Third Quarter 2024 Results
Schneider National (NYSE: SNDR) reported Q3 2024 results with operating revenues of $1.3 billion, down from $1.4 billion in 2023. Income from operations decreased 8% to $43.1 million, with diluted earnings per share of $0.17. The company updated its full-year adjusted EPS guidance to $0.66-$0.72 and net capital expenditures guidance to approximately $330 million.
Dedicated and Intermodal businesses showed resilience, with Intermodal achieving margin growth through network optimization. However, Network results remained challenged, and auto liability insurance costs increased by $10 million. The company maintained profitable operations in Logistics despite lower brokerage revenue.
Schneider National (NYSE: SNDR) ha riportato i risultati del terzo trimestre 2024 con ricavi operativi di 1,3 miliardi di dollari, in calo rispetto a 1,4 miliardi di dollari nel 2023. Il reddito dalle operazioni è diminuito dell'8% a 43,1 milioni di dollari, con utili per azione diluiti pari a 0,17 dollari. L'azienda ha aggiornato le previsioni di EPS rettificato per l'intero anno a 0,66-0,72 dollari e le previsioni di spese in conto capitale nette a circa 330 milioni di dollari.
I settori Dedicato e Intermodale hanno mostrato resilienza, con il settore Intermodale che ha raggiunto una crescita dei margini grazie all'ottimizzazione della rete. Tuttavia, i risultati della rete sono rimasti sfidanti, e i costi dell'assicurazione per responsabilità automobilistica sono aumentati di 10 milioni di dollari. L'azienda ha mantenuto operazioni redditizie nella Logistica nonostante un calo dei ricavi da intermediazione.
Schneider National (NYSE: SNDR) reportó los resultados del tercer trimestre de 2024 con ingresos operativos de 1.3 mil millones de dólares, en comparación con 1.4 mil millones de dólares en 2023. Los ingresos de las operaciones disminuyeron un 8% a 43.1 millones de dólares, con ganancias por acción diluidas de 0.17 dólares. La compañía actualizó su guía de ganancias por acción ajustadas para todo el año a 0.66-0.72 dólares y su guía de gastos de capital netos a aproximadamente 330 millones de dólares.
Los negocios Dedicados e Intermodales mostraron resiliencia, con el sector Intermodal logrando un crecimiento de márgenes a través de la optimización de la red. Sin embargo, los resultados de la red continuaron enfrentando desafíos, y los costos del seguro de responsabilidad automovilística aumentaron en 10 millones de dólares. La compañía mantuvo operaciones rentables en Logística a pesar de la disminución de los ingresos por corretaje.
슈나이더 내셔널 (NYSE: SNDR)은 2024년 3분기 실적을 보고했으며 운영 수익은 13억 달러로, 2023년 14억 달러에서 감소했습니다. 운영 소득은 8% 감소하여 4310만 달러에 이르렀으며 희석 주당 순이익은 0.17 달러입니다. 회사는 연간 조정 EPS 가이드를 0.66-0.72 달러로, 순 자본 지출 가이드는 약 3억 3천만 달러로 업데이트했습니다.
전담 및 인터모달 사업은 회복력을 보이며, 인터모달 부문은 네트워크 최적화를 통해 마진 성장에 도달했습니다. 그러나 네트워크 성과는 여전히 도전적인 상태였으며, 자동차 책임 보험 비용은 1000만 달러 증가했습니다. 회사는 중개 수익 감소에도 불구하고 물류에서 수익성 있는 운영을 유지했습니다.
Schneider National (NYSE: SNDR) a publié ses résultats du troisième trimestre 2024 avec des revenus opérationnels de 1,3 milliard de dollars, en baisse par rapport à 1,4 milliard de dollars en 2023. Le résultat d'exploitation a diminué de 8 % pour atteindre 43,1 millions de dollars, avec un bénéfice par action dilué de 0,17 dollar. L'entreprise a mis à jour ses prévisions de BPA ajusté pour l'année complète à 0,66-0,72 dollar et ses prévisions d'investissements nets à environ 330 millions de dollars.
Les secteurs Dédicacé et Intermodal ont fait preuve de résilience, le secteur Intermodal ayant réussi à réaliser une croissance des marges grâce à l'optimisation du réseau. Cependant, les résultats du réseau sont restés difficiles, et les coûts d'assurance responsabilité automobile ont augmenté de 10 millions de dollars. L'entreprise a maintenu des opérations rentables en Logistique malgré une baisse des revenus de courtage.
Schneider National (NYSE: SNDR) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, mit Betriebseinnahmen von 1,3 Milliarden Dollar, ein Rückgang von 1,4 Milliarden Dollar im Jahr 2023. Das Betriebsergebnis verringerte sich um 8 % auf 43,1 Millionen Dollar, mit einem verwässerten Gewinn pro Aktie von 0,17 Dollar. Das Unternehmen hat seine Prognose für das bereinigte EPS für das Gesamtjahr auf 0,66–0,72 Dollar und die Prognose für Nettokapitalausgaben auf etwa 330 Millionen Dollar aktualisiert.
Die Geschäftsbereiche Dedicado und Intermodal zeigten Widerstandsfähigkeit, wobei Intermodal ein Margenwachstum durch Netzwerkoptimierung erzielte. Die Ergebnisse des Netzwerks blieben jedoch herausfordernd, und die Kosten für die Kfz-Haftpflichtversicherung stiegen um 10 Millionen Dollar. Das Unternehmen hielt profitable Operationen in der Logistik aufrecht, trotz eines Rückgangs der Maklererlöse.
- Intermodal income from operations increased 41% to $15.7 million
- Dedicated truck count grew 4% due to new business growth
- Strong free cash flow with year-to-date increase of $154.2 million compared to 2023
- Contract pricing showed positive momentum with highest renewal rates since Q1 2022
- Operating revenues declined 3% to $1.3 billion
- Income from operations decreased 8% to $43.1 million
- Auto liability insurance costs increased by $10 million
- Lowered full-year adjusted EPS guidance to $0.66-$0.72 from $0.80-$0.90
- Network truck count decreased 12%
Insights
The Q3 2024 results show mixed performance with concerning trends. Operating revenues declined -3% to
Key concerns include:
- Auto liability insurance costs increased by
$10 million - Network business remains challenged with weak seasonality
- Lower gains from equipment sales and equity investments created
$0.04 EPS headwind
The results reflect broader trucking industry challenges, with particular weakness in the Network segment. While contract pricing shows improvement since early 2024, current market rates still don't justify fleet expansion. The
The company's strategic focus on Dedicated and Intermodal segments is prudent given market conditions. The
-
Operating Revenues
;$1.3 billion in 2023$1.4 billion -
Income from Operations
;$43.1 million in 2023$46.7 million -
Diluted Earnings per Share
; Adjusted Diluted Earnings per Share$0.17 $0.18 -
Updated full year Adjusted Diluted Earnings per Share guidance to
-$0.66 $0.72 -
Updated full year Net Capital Expenditures guidance of approximately
$330.0 million
“In the third quarter, our Dedicated and Intermodal businesses demonstrated their resilience, and Logistics maintained its profitable operations,” said Mark Rourke, President and Chief Executive Officer of Schneider. “Dedicated performed well, with a robust new business pipeline, and Intermodal achieved margin growth due to enhanced network optimization, improved dray productivity, and our ongoing cost management actions. Additionally, Logistics continues to effectively manage net revenue and lower the cost of serving customers by advancing our Schneider FreightPower® technology and automation. Finally in our Network truck business, contract pricing continued its positive momentum since the beginning of the year with contract rate renewals at the highest level since first quarter 2022. While this trend is encouraging, present market conditions still do not support additional investment at this time as carriers are not being compensated for the value provided. Network results remain challenged as expected seasonality momentum was not sustained, and we are actively implementing strategies to enhance performance and drive improvement in this offering.”
“From an enterprise standpoint, lower year over year gains on equipment sales and equity investments represented in aggregate a
“As we enter the holiday shipment season, I’d like to thank each of our associates, especially our professional drivers, for their tireless dedication and hard work,” Rourke commented. “We are committed to maximizing shareholder value and advancing our enterprise for long-term success by delivering a seamless customer experience, disciplined execution of our commercial strategy, optimizing our capital allocation across our strategic growth areas, and diligent cost management.”
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) |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
Operating revenues |
|
$ |
1,315.7 |
|
|
$ |
1,352.0 |
|
|
(3)% |
|
$ |
3,951.4 |
|
|
$ |
4,127.2 |
|
|
(4)% |
Revenues (excluding fuel surcharge) |
|
|
1,177.6 |
|
|
|
1,179.4 |
|
|
—% |
|
|
3,508.6 |
|
|
|
3,619.8 |
|
|
(3)% |
Income from operations |
|
|
43.1 |
|
|
|
46.7 |
|
|
(8)% |
|
|
122.8 |
|
|
|
265.1 |
|
|
(54)% |
Adjusted income from operations |
|
|
44.3 |
|
|
|
47.6 |
|
|
(7)% |
|
|
126.6 |
|
|
|
268.9 |
|
|
(53)% |
Operating ratio |
|
|
96.7 |
% |
|
|
96.5 |
% |
|
(20) bps |
|
|
96.9 |
% |
|
|
93.6 |
% |
|
(330) bps |
Adjusted operating ratio |
|
|
96.2 |
% |
|
|
96.0 |
% |
|
(20) bps |
|
|
96.4 |
% |
|
|
92.6 |
% |
|
(380) bps |
Net income |
|
$ |
30.6 |
|
|
$ |
35.6 |
|
|
(14)% |
|
$ |
84.4 |
|
|
$ |
211.1 |
|
|
(60)% |
Adjusted net income |
|
|
31.5 |
|
|
|
36.3 |
|
|
(13)% |
|
|
87.3 |
|
|
|
214.0 |
|
|
(59)% |
Adjusted EBITDA |
|
|
143.8 |
|
|
|
145.5 |
|
|
(1)% |
|
|
427.4 |
|
|
|
568.0 |
|
|
(25)% |
Diluted earnings per share |
|
|
0.17 |
|
|
|
0.20 |
|
|
(15)% |
|
|
0.48 |
|
|
|
1.18 |
|
|
(59)% |
Adjusted diluted earnings per share |
|
|
0.18 |
|
|
|
0.20 |
|
|
(10)% |
|
|
0.50 |
|
|
|
1.20 |
|
|
(58)% |
Weighted average diluted shares outstanding |
|
|
175.9 |
|
|
|
177.7 |
|
|
(1.8) |
|
|
176.1 |
|
|
|
178.5 |
|
|
(2.4) |
Enterprise Results
Enterprise income from operations for the third quarter of 2024 was
Cash Flow and Capitalization
At September 30, 2024, the Company had
The Company’s cash provided by operating activities for the third quarter of 2024 increased year over year. Net capital expenditures were lower compared to the same period a year ago primarily due to reduced purchases of transportation equipment. Despite challenging freight market conditions, we have generated strong free cash flow. As of September 30, 2024, year to date free cash flow increased
In February 2023, the Company announced the approval of a
Results of Operations – Reportable Segments
Truckload
Truckload revenues (excluding fuel surcharge) for the third quarter of 2024 were
Truckload income from operations was
Intermodal
Intermodal revenues (excluding fuel surcharge) for the third quarter of 2024 were
Intermodal income from operations for the third quarter of 2024 was
Logistics
Logistics revenues (excluding fuel surcharge) for the third quarter of 2024 were
Logistics income from operations for the third quarter of 2024 was
Business Outlook
(in millions, except per share data) |
Current Guidance |
Prior Guidance |
Adjusted diluted earnings per share |
|
|
Net capital expenditures |
approx. |
|
“The strength of our balance sheet and actions taken to enhance our free cash flow enable us to allocate capital to our strategic priorities, including acquisitive growth,” said Darrell Campbell, Vice President, and Chief Financial Officer of Schneider. “We continue to take measures to improve margins and capital returns, driving resilience and long-term enterprise value.”
“We expect modest improvement in the fourth quarter over a year ago driven by continued stabilization across most of our businesses and improved seasonality, as we continue to position the enterprise for a more sustained market recovery. Based on our third quarter results and our shifted expectations of the timing of freight market improvement, we have updated our full year adjusted diluted earnings per share guidance to
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
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 800-715-9871 toll-free or 646-307-1963 (conference ID: 2793697). 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating revenues |
$ |
1,315.7 |
|
|
$ |
1,352.0 |
|
|
$ |
3,951.4 |
|
|
$ |
4,127.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Purchased transportation |
|
491.0 |
|
|
|
540.0 |
|
|
|
1,493.0 |
|
|
|
1,634.9 |
|
Salaries, wages, and benefits |
|
347.8 |
|
|
|
340.4 |
|
|
|
1,055.2 |
|
|
|
1,003.7 |
|
Fuel and fuel taxes |
|
94.3 |
|
|
|
115.7 |
|
|
|
302.7 |
|
|
|
325.5 |
|
Depreciation and amortization |
|
101.9 |
|
|
|
96.8 |
|
|
|
307.2 |
|
|
|
281.8 |
|
Operating supplies and expenses—net |
|
169.4 |
|
|
|
138.5 |
|
|
|
480.2 |
|
|
|
427.0 |
|
Insurance and related expenses |
|
36.4 |
|
|
|
26.6 |
|
|
|
100.7 |
|
|
|
77.0 |
|
Other general expenses |
|
31.8 |
|
|
|
47.3 |
|
|
|
89.6 |
|
|
|
112.2 |
|
Total operating expenses |
|
1,272.6 |
|
|
|
1,305.3 |
|
|
|
3,828.6 |
|
|
|
3,862.1 |
|
Income from operations |
|
43.1 |
|
|
|
46.7 |
|
|
|
122.8 |
|
|
|
265.1 |
|
Other expenses (income): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
(1.0 |
) |
|
|
(1.6 |
) |
|
|
(2.7 |
) |
|
|
(6.3 |
) |
Interest expense |
|
3.6 |
|
|
|
3.3 |
|
|
|
11.9 |
|
|
|
10.1 |
|
Other expenses (income)—net |
|
1.2 |
|
|
|
(1.1 |
) |
|
|
2.6 |
|
|
|
(17.3 |
) |
Total other expenses (income)—net |
|
3.8 |
|
|
|
0.6 |
|
|
|
11.8 |
|
|
|
(13.5 |
) |
Income before income taxes |
|
39.3 |
|
|
|
46.1 |
|
|
|
111.0 |
|
|
|
278.6 |
|
Provision for income taxes |
|
8.7 |
|
|
|
10.5 |
|
|
|
26.6 |
|
|
|
67.5 |
|
Net income |
$ |
30.6 |
|
|
$ |
35.6 |
|
|
$ |
84.4 |
|
|
$ |
211.1 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
175.2 |
|
|
|
176.9 |
|
|
|
175.6 |
|
|
|
177.7 |
|
Basic earnings per share |
$ |
0.17 |
|
|
$ |
0.20 |
|
|
$ |
0.48 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average diluted shares outstanding |
|
175.9 |
|
|
|
177.7 |
|
|
|
176.1 |
|
|
|
178.5 |
|
Diluted earnings per share |
$ |
0.17 |
|
|
$ |
0.20 |
|
|
$ |
0.48 |
|
|
$ |
1.18 |
|
|
|
|
|
|
|
|
|
SCHNEIDER NATIONAL, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
(in millions) |
||||||
|
|
|
|
|
||
|
|
September 30,
|
|
December 31,
|
||
Assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
179.0 |
|
$ |
102.4 |
Trade accounts receivable—net |
|
|
541.1 |
|
|
575.7 |
Other current assets |
|
|
367.7 |
|
|
432.8 |
Net property and equipment |
|
|
2,581.2 |
|
|
2,581.7 |
Other noncurrent assets |
|
|
905.7 |
|
|
864.6 |
Total Assets |
|
$ |
4,574.7 |
|
$ |
4,557.2 |
|
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|
|
|
|
||
Trade accounts payable |
|
$ |
208.5 |
|
$ |
241.3 |
Current maturities of debt and finance lease obligations |
|
|
139.0 |
|
|
104.5 |
Other current liabilities |
|
|
309.7 |
|
|
260.4 |
Long-term debt and finance lease obligations |
|
|
124.7 |
|
|
197.6 |
Deferred income taxes |
|
|
569.0 |
|
|
595.7 |
Other noncurrent liabilities |
|
|
256.6 |
|
|
200.9 |
Shareholders’ Equity |
|
|
2,967.2 |
|
|
2,956.8 |
Total Liabilities and Shareholders’ Equity |
|
$ |
4,574.7 |
|
$ |
4,557.2 |
SCHNEIDER NATIONAL, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
(in millions) |
|||||||
|
|
|
|
||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
486.6 |
|
|
$ |
486.1 |
|
Net cash used in investing activities |
|
(287.1 |
) |
|
|
(776.8 |
) |
Net cash used in financing activities |
|
(122.9 |
) |
|
|
(36.5 |
) |
Net increase (decrease) in cash and cash equivalents |
$ |
76.6 |
|
|
$ |
(327.2 |
) |
|
|
|
|
||||
Net capital expenditures |
$ |
(274.6 |
) |
|
$ |
(428.3 |
) |
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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Truckload |
|
$ |
532.2 |
|
|
$ |
535.3 |
|
|
$ |
1,610.6 |
|
|
$ |
1,605.0 |
|
Intermodal |
|
|
264.7 |
|
|
|
263.0 |
|
|
|
765.0 |
|
|
|
790.1 |
|
Logistics |
|
|
313.7 |
|
|
|
326.0 |
|
|
|
957.4 |
|
|
|
1,051.6 |
|
Other |
|
|
105.2 |
|
|
|
78.4 |
|
|
|
295.1 |
|
|
|
249.5 |
|
Fuel surcharge |
|
|
138.1 |
|
|
|
172.6 |
|
|
|
442.8 |
|
|
|
507.4 |
|
Inter-segment eliminations |
|
|
(38.2 |
) |
|
|
(23.3 |
) |
|
|
(119.5 |
) |
|
|
(76.4 |
) |
Operating revenues |
|
$ |
1,315.7 |
|
|
$ |
1,352.0 |
|
|
$ |
3,951.4 |
|
|
$ |
4,127.2 |
|
Income (Loss) from Operations by Segment |
||||||||||||||
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Truckload |
|
$ |
23.7 |
|
|
$ |
24.5 |
|
$ |
69.3 |
|
|
$ |
151.9 |
Intermodal |
|
|
15.7 |
|
|
|
11.1 |
|
|
37.3 |
|
|
|
64.8 |
Logistics |
|
|
7.6 |
|
|
|
8.5 |
|
|
24.2 |
|
|
|
39.8 |
Other |
|
|
(3.9 |
) |
|
|
2.6 |
|
|
(8.0 |
) |
|
|
8.6 |
Income from operations |
|
$ |
43.1 |
|
|
$ |
46.7 |
|
$ |
122.8 |
|
|
$ |
265.1 |
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.
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Dedicated |
|
|
|
|
|
|
|
|
||||||||
Revenues (excluding fuel surcharge) (1) |
|
$ |
347.5 |
|
|
$ |
324.9 |
|
|
$ |
1,035.3 |
|
|
$ |
930.7 |
|
Average trucks (2) (3) |
|
|
6,617 |
|
|
|
6,358 |
|
|
|
6,672 |
|
|
|
6,115 |
|
Revenue per truck per week (4) |
|
$ |
4,070 |
|
|
$ |
3,986 |
|
|
$ |
4,020 |
|
|
$ |
3,958 |
|
Network |
|
|
|
|
|
|
|
|
||||||||
Revenues (excluding fuel surcharge) (1) |
|
$ |
185.2 |
|
|
$ |
210.1 |
|
|
$ |
575.2 |
|
|
$ |
674.4 |
|
Average trucks (2) (3) |
|
|
3,780 |
|
|
|
4,319 |
|
|
|
3,980 |
|
|
|
4,392 |
|
Revenue per truck per week (4) |
|
$ |
3,798 |
|
|
$ |
3,795 |
|
|
$ |
3,744 |
|
|
$ |
3,993 |
|
Total Truckload |
|
|
|
|
|
|
|
|
||||||||
Revenues (excluding fuel surcharge) (5) |
|
$ |
532.2 |
|
|
$ |
535.3 |
|
|
$ |
1,610.6 |
|
|
$ |
1,605.0 |
|
Average trucks (2) (3) |
|
|
10,397 |
|
|
|
10,677 |
|
|
|
10,652 |
|
|
|
10,507 |
|
Revenue per truck per week (4) |
|
$ |
3,971 |
|
|
$ |
3,909 |
|
|
$ |
3,917 |
|
|
$ |
3,972 |
|
Average company trucks (3) |
|
|
8,997 |
|
|
|
8,762 |
|
|
|
9,083 |
|
|
|
8,570 |
|
Average owner-operator trucks (3) |
|
|
1,400 |
|
|
|
1,915 |
|
|
|
1,569 |
|
|
|
1,937 |
|
Trailers (6) |
|
|
47,257 |
|
|
|
47,007 |
|
|
|
47,257 |
|
|
|
47,007 |
|
Operating ratio (7) |
|
|
95.5 |
% |
|
|
95.4 |
% |
|
|
95.7 |
% |
|
|
90.5 |
% |
(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, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Orders (1) |
|
|
106,345 |
|
|
|
105,351 |
|
|
|
309,927 |
|
|
|
308,718 |
|
Containers |
|
|
26,603 |
|
|
|
27,185 |
|
|
|
26,603 |
|
|
|
27,185 |
|
Trucks |
|
|
1,417 |
|
|
|
1,457 |
|
|
|
1,417 |
|
|
|
1,457 |
|
Revenue per order (2) |
|
$ |
2,470 |
|
|
$ |
2,461 |
|
|
$ |
2,452 |
|
|
$ |
2,573 |
|
Operating ratio (3) |
|
|
94.1 |
% |
|
|
95.8 |
% |
|
|
95.1 |
% |
|
|
91.8 |
% |
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Operating ratio (1) |
|
97.6 |
% |
|
97.4 |
% |
|
97.5 |
% |
|
96.2 |
% |
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Operating revenues |
|
$ |
1,315.7 |
|
$ |
1,352.0 |
|
$ |
3,951.4 |
|
$ |
4,127.2 |
Less: Fuel surcharge revenues |
|
|
138.1 |
|
|
172.6 |
|
|
442.8 |
|
|
507.4 |
Revenues (excluding fuel surcharge) |
|
$ |
1,177.6 |
|
$ |
1,179.4 |
|
$ |
3,508.6 |
|
$ |
3,619.8 |
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) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Income from operations |
|
$ |
43.1 |
|
$ |
46.7 |
|
$ |
122.8 |
|
$ |
265.1 |
Litigation and audit assessments (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
2.9 |
Acquisition-related costs (2) |
|
|
— |
|
|
0.9 |
|
|
— |
|
|
0.9 |
Amortization of intangible assets (3) |
|
|
1.2 |
|
|
— |
|
|
3.8 |
|
|
— |
Adjusted income from operations |
|
$ |
44.3 |
|
$ |
47.6 |
|
$ |
126.6 |
|
$ |
268.9 |
(1) |
Includes |
|
(2) |
Advisory, legal, and accounting costs related to the acquisition of M&M in 2023. |
|
(3) |
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in millions, except ratios) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Total operating expenses |
|
$ |
1,272.6 |
|
|
$ |
1,305.3 |
|
|
$ |
3,828.6 |
|
|
$ |
3,862.1 |
|
Divide by: Operating revenues |
|
|
1,315.7 |
|
|
|
1,352.0 |
|
|
|
3,951.4 |
|
|
|
4,127.2 |
|
Operating ratio |
|
|
96.7 |
% |
|
|
96.5 |
% |
|
|
96.9 |
% |
|
|
93.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Total operating expenses |
|
$ |
1,272.6 |
|
|
$ |
1,305.3 |
|
|
$ |
3,828.6 |
|
|
$ |
3,862.1 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
||||||||
Fuel surcharge revenues |
|
|
(138.1 |
) |
|
|
(172.6 |
) |
|
|
(442.8 |
) |
|
|
(507.4 |
) |
Litigation and audit assessments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.9 |
) |
Acquisition-related costs |
|
|
— |
|
|
|
(0.9 |
) |
|
|
— |
|
|
|
(0.9 |
) |
Amortization of intangible assets |
|
|
(1.2 |
) |
|
|
— |
|
|
|
(3.8 |
) |
|
|
— |
|
Adjusted total operating expenses |
|
$ |
1,133.3 |
|
|
$ |
1,131.8 |
|
|
$ |
3,382.0 |
|
|
$ |
3,350.9 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues |
|
$ |
1,315.7 |
|
|
$ |
1,352.0 |
|
|
$ |
3,951.4 |
|
|
$ |
4,127.2 |
|
Less: Fuel surcharge revenues |
|
|
138.1 |
|
|
|
172.6 |
|
|
|
442.8 |
|
|
|
507.4 |
|
Revenues (excluding fuel surcharge) |
|
$ |
1,177.6 |
|
|
$ |
1,179.4 |
|
|
$ |
3,508.6 |
|
|
$ |
3,619.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted operating ratio |
|
|
96.2 |
% |
|
|
96.0 |
% |
|
|
96.4 |
% |
|
|
92.6 |
% |
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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
|
$ |
30.6 |
|
|
$ |
35.6 |
|
|
$ |
84.4 |
|
|
$ |
211.1 |
|
Litigation and audit assessments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
Acquisition-related costs |
|
|
— |
|
|
|
0.9 |
|
|
|
— |
|
|
|
0.9 |
|
Amortization of intangible assets |
|
|
1.2 |
|
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
Income tax effect of non-GAAP adjustments (1) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.9 |
) |
|
|
(0.9 |
) |
Adjusted net income |
|
$ |
31.5 |
|
|
$ |
36.3 |
|
|
$ |
87.3 |
|
|
$ |
214.0 |
|
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net income |
|
$ |
30.6 |
|
$ |
35.6 |
|
$ |
84.4 |
|
$ |
211.1 |
Interest expense, net |
|
|
2.6 |
|
|
1.7 |
|
|
9.2 |
|
|
3.8 |
Provision for income taxes |
|
|
8.7 |
|
|
10.5 |
|
|
26.6 |
|
|
67.5 |
Depreciation and amortization |
|
|
101.9 |
|
|
96.8 |
|
|
307.2 |
|
|
281.8 |
Litigation and audit assessments |
|
|
— |
|
|
— |
|
|
— |
|
|
2.9 |
Acquisition-related costs |
|
|
— |
|
|
0.9 |
|
|
— |
|
|
0.9 |
Adjusted EBITDA |
|
$ |
143.8 |
|
$ |
145.5 |
|
$ |
427.4 |
|
$ |
568.0 |
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
|
$ |
206.4 |
|
|
$ |
182.9 |
|
|
$ |
486.6 |
|
|
$ |
486.1 |
|
Purchases of transportation equipment |
|
|
(107.7 |
) |
|
|
(156.2 |
) |
|
|
(328.1 |
) |
|
|
(500.6 |
) |
Purchases of other property and equipment |
|
|
(8.4 |
) |
|
|
(8.5 |
) |
|
|
(27.8 |
) |
|
|
(33.9 |
) |
Proceeds from sale of property and equipment |
|
|
23.1 |
|
|
|
34.5 |
|
|
|
81.3 |
|
|
|
106.2 |
|
Net capital expenditures |
|
|
(93.0 |
) |
|
|
(130.2 |
) |
|
|
(274.6 |
) |
|
|
(428.3 |
) |
Free cash flow |
|
$ |
113.4 |
|
|
$ |
52.7 |
|
|
$ |
212.0 |
|
|
$ |
57.8 |
|
Adjusted diluted earnings per share (1)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Diluted earnings per share |
|
$ |
0.17 |
|
$ |
0.20 |
|
$ |
0.48 |
|
$ |
1.18 |
Non-GAAP adjustments, tax effected |
|
|
0.01 |
|
|
— |
|
|
0.02 |
|
|
0.02 |
Adjusted diluted earnings per share |
|
$ |
0.18 |
|
$ |
0.20 |
|
$ |
0.50 |
|
$ |
1.20 |
(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
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/20241105889630/en/
Steve Bindas, Director of Investor Relations
920-357-SNDR
investor@schneider.com
Source: Schneider SNDR
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