Delaware | 001-35007 | 20-5589597 | |||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||
2200 South 75th Avenue, Phoenix, Arizona | 85043 | ||||
(Address of principal executive offices) | (Zip Code) | ||||
(602) 269-9700 | |||||
(Registrant's telephone number, including area code) | |||||
N/A | |||||
(Former name or former address, if changed since last report) | |||||
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | Description | |
Exhibit 99 | Letter to stockholders dated July 27, 2015, issued by Swift Transportation Company |
Swift Transportation Company | |||||
(Registrant) | |||||
Date: | July 27, 2015 | /s/ Virginia Henkels | |||
Virginia Henkels | |||||
Executive Vice President and Chief Financial Officer |
Exhibit 99 |
P.O. Box 29243 - Phoenix, Arizona 85038-9243 | ||
2200 S. 75th Avenue - Phoenix, Arizona 85043 | ||
(602) 269-9700 | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
Unaudited | |||||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||||
Operating Revenue | $ | 1,059.4 | $ | 1,075.9 | $ | 1,029.1 | $ | 2,074.5 | $ | 2,084.3 | $ | 2,010.7 | |||||||||||
Revenue xFSR(1) | $ | 935.9 | $ | 876.3 | $ | 830.1 | $ | 1,830.8 | $ | 1,693.3 | $ | 1,614.7 | |||||||||||
Operating Ratio | 90.7 | % | 91.3 | % | 90.3 | % | 91.6 | % | 93.3 | % | 91.5 | % | |||||||||||
Adjusted Operating Ratio(2) | 89.1 | % | 88.8 | % | 87.5 | % | 90.1 | % | 91.3 | % | 89.0 | % | |||||||||||
EBITDA(2) | $ | 158.1 | $ | 146.7 | $ | 162.7 | $ | 293.3 | $ | 251.2 | $ | 293.1 | |||||||||||
Adjusted EBITDA(2) | $ | 159.5 | $ | 155.0 | $ | 163.6 | $ | 297.7 | $ | 263.5 | $ | 299.6 | |||||||||||
Diluted EPS | $ | 0.35 | $ | 0.28 | $ | 0.35 | $ | 0.62 | $ | 0.37 | $ | 0.57 | |||||||||||
Adjusted EPS(2) | $ | 0.37 | $ | 0.33 | $ | 0.35 | $ | 0.65 | $ | 0.44 | $ | 0.59 | |||||||||||
1Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||||||||||||||
2 See GAAP to Non-GAAP reconciliation in the schedules following this letter |
• | Adjusted EPS increased 12.1% to $0.37 and was negatively impacted by $0.03 after-tax for a legal settlement relating to a non-operational contractual dispute |
• | Consolidated Revenue xFSR increased 6.8% |
• | Consolidated Average Operational Truck Count increased 816 trucks, or 4.8%, year over year in the second quarter, 308 of which were added in 2015 |
• | Net Debt and Net Leverage Ratio increased slightly as anticipated to $1,356.8 million and 2.07, respectively, as of June 30, 2015, due to increased capital expenditures |
• | New amended and restated credit agreement was completed effective July 27, 2015, which is expected to result in an estimated $7 million reduction in annual interest expense going forward (based on current borrowing levels) |
1 |
• | As anticipated, the Adjusted Operating Ratio in our Truckload segment increased 120 basis points to 86.0%, primarily driven by the compounding impact of both sets of targeted wage increases for drivers and pay increases for owner-operators. The two pay increases were implemented on August 1, 2014 and May 1, 2015. |
• | Truckload pricing increases continued to gain momentum, resulting in a 4.9% increase in Revenue xFSR per loaded mile |
• | Driver retention and overall satisfaction with Swift continue to trend favorably, as evidenced by a 15% improvement in our operations turnover metric |
• | Dedicated Revenue xFSR grew 15.1% driven by the addition of multiple new customer contracts over the last 12 months |
• | Weekly Revenue xFSR per Tractor improved 4.8% year over year |
• | Adjusted Operating Ratio improved 360 bps sequentially to 89.1% |
• | CRS Adjusted Operating Ratio improved 300 basis points year over year to 92.7%, in spite of the two large driver and owner-operator wage and pay increases previously mentioned |
• | Adjusted Operating Ratio and Operating Income reached strongest levels since acquisition in August 2013 |
• | Process initiated to change name to Swift Refrigerated |
• | Intermodal Revenue xFSR grew 5.0% on Container on Flat Car growth of 14.6%, partially offset by a continued reduction in Trailer on Flat Car loads |
• | Adjusted Operating Ratio improved 250 basis points to 98.1% due to improved container utilization, dray efficiencies, and safety trends |
2 |
Three Months Ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 555.7 | $ | 575.5 | $ | 588.7 | |||||
Revenue xFSR(1)(2)(3) | $ | 485.4 | $ | 459.1 | $ | 468.6 | |||||
Operating Ratio | 87.8 | % | 87.9 | % | 89.0 | % | |||||
Adjusted Operating Ratio(3) | 86.0 | % | 84.8 | % | 86.2 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,571 | $ | 3,453 | $ | 3,270 | |||||
Total Loaded Miles(4) | 261,609 | 259,583 | 274,830 | ||||||||
Average Operational Truck Count | 10,456 | 10,228 | 11,021 | ||||||||
Deadhead Percentage | 11.8 | % | 11.7 | % | 11.4 | % | |||||
1 In millions | |||||||||||
2 Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||
3 See GAAP to Non-GAAP reconciliation in the schedules following this letter | |||||||||||
4 Total Loaded Miles presented in thousands |
3 |
Three Months Ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 234.2 | $ | 223.1 | $ | 182.7 | |||||
Revenue xFSR(1)(2)(3) | $ | 211.0 | $ | 183.3 | $ | 148.7 | |||||
Operating Ratio | 90.2 | % | 90.5 | % | 86.7 | % | |||||
Adjusted Operating Ratio(3) | 89.1 | % | 88.5 | % | 83.7 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,343 | $ | 3,191 | $ | 3,396 | |||||
Average Operational Truck Count | 4,854 | 4,420 | 3,367 | ||||||||
1 In millions | |||||||||||
2 Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||
3 See GAAP to Non-GAAP reconciliation in the schedules following this letter |
4 |
Three Months Ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 97.7 | $ | 106.9 | $ | 111.2 | |||||
Revenue xFSR(1)(2)(3) | $ | 83.3 | $ | 86.0 | $ | 87.1 | |||||
Operating Ratio | 93.7 | % | 96.6 | % | 94.9 | % | |||||
Adjusted Operating Ratio(3) | 92.7 | % | 95.7 | % | 93.5 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,418 | $ | 3,543 | $ | 3,367 | |||||
Average Operational Truck Count | 1,874 | 1,867 | 1,990 | ||||||||
Deadhead Percentage | 13.9 | % | 15.1 | % | 12.4 | % | |||||
1 In millions | |||||||||||
2 Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||
3 See GAAP to Non-GAAP reconciliation in the schedules following this letter |
5 |
Three Months Ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 98.5 | $ | 100.9 | $ | 91.0 | |||||
Revenue xFSR(1)(2)(3) | $ | 84.8 | $ | 80.8 | $ | 72.2 | |||||
Operating Ratio | 98.4 | % | 100.5 | % | 99.1 | % | |||||
Adjusted Operating Ratio(3) | 98.1 | % | 100.6 | % | 98.9 | % | |||||
Load Counts | 46,517 | 43,404 | 39,124 | ||||||||
Average Container Counts | 9,150 | 8,717 | 8,717 | ||||||||
1 In millions | |||||||||||
2 Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||
3 See GAAP to Non-GAAP reconciliation in the schedules following this letter |
6 |
YOY | QOQ | |||||||||||||||||||
Q2'15 | Q2'14 | Variance1 | ($ in millions) | Q2'15 | Q1'15 | Variance1 | ||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||
$ | 1,059.4 | $ | 1,075.9 | -1.5 | % | Operating Revenue | $ | 1,059.4 | $ | 1,015.1 | 4.4 | % | ||||||||
$ | (123.5 | ) | $ | (199.6 | ) | -38.1 | % | Less: Fuel Surcharge Revenue | $ | (123.5 | ) | $ | (120.3 | ) | 2.7 | % | ||||
$ | 935.9 | $ | 876.3 | 6.8 | % | Revenue xFSR | $ | 935.9 | $ | 894.8 | 4.6 | % | ||||||||
$ | 276.3 | $ | 238.1 | -16.0 | % | Salaries, Wages & Benefits | $ | 276.3 | $ | 261.7 | -5.6 | % | ||||||||
29.5 | % | 27.2 | % | -230 bps | % of Revenue xFSR | 29.5 | % | 29.2 | % | -30 bps | ||||||||||
$ | 91.1 | $ | 84.1 | -8.3 | % | Operating Supplies & Expenses | $ | 91.1 | $ | 94.2 | 3.3 | % | ||||||||
9.7 | % | 9.6 | % | -10 bps | % of Revenue xFSR | 9.7 | % | 10.5 | % | 80 bps | ||||||||||
$ | 42.2 | $ | 33.3 | -26.7 | % | Insurance & Claims | $ | 42.2 | $ | 44.3 | 4.7 | % | ||||||||
4.5 | % | 3.8 | % | -70 bps | % of Revenue xFSR | 4.5 | % | 5.0 | % | 50 bps | ||||||||||
$ | 7.4 | $ | 7.7 | 3.9 | % | Communications & Utilities | $ | 7.4 | $ | 7.5 | 1.3 | % | ||||||||
0.8 | % | 0.9 | % | 10 bps | % of Revenue xFSR | 0.8 | % | 0.8 | % | 0 bps | ||||||||||
$ | 18.3 | $ | 17.9 | -2.2 | % | Operating Taxes & Licenses | $ | 18.3 | $ | 17.6 | -4.0 | % | ||||||||
2.0 | % | 2.0 | % | 0 bps | % of Revenue xFSR | 2.0 | % | 2.0 | % | 0 bps | ||||||||||
1 Positive numbers represent favorable variances, negative numbers represent unfavorable variances |
Q2'15 | Q2'14 | ($ in millions) | Q2'15 | Q1'15 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 116.7 | $ | 153.7 | Fuel Expense | $ | 116.7 | $ | 106.9 | ||||||
11.0 | % | 14.3 | % | % of Operating Revenue | 11.0 | % | 10.5 | % |
7 |
Q2'15 | Q2'14 | ($ in millions) | Q2'15 | Q1'15 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 294.7 | $ | 340.2 | Purchased Transportation | $ | 294.7 | $ | 288.8 | ||||||
27.8 | % | 31.6 | % | % of Operating Revenue | 27.8 | % | 28.5 | % |
Q2'15 | Q2'14 | ($ in millions) | Q2'15 | Q1'15 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 59.8 | $ | 56.1 | Rental Expense | $ | 59.8 | $ | 62.0 | ||||||
6.4 | % | 6.4 | % | % of Revenue xFSR | 6.4 | % | 6.9 | % | ||||||
$ | 60.4 | $ | 54.8 | Depreciation & Amortization of Property and Equipment | $ | 60.4 | $ | 56.9 | ||||||
6.5 | % | 6.3 | % | % of Revenue xFSR | 6.5 | % | 6.4 | % | ||||||
$ | 120.2 | $ | 110.9 | Combined Rental Expense and Depreciation | $ | 120.2 | $ | 118.9 | ||||||
12.8 | % | 12.7 | % | % of Revenue xFSR | 12.8 | % | 13.3 | % |
8 |
March 31, 2015 | Q2 2015 | June 30, 2015 | |||||||||||
($ in millions) | Changes | ||||||||||||
Unaudited | |||||||||||||
Unrestricted Cash | $ | 68.7 | $ | (15.0 | ) | $ | 53.7 | ||||||
A/R Securitization ($375 mm) | $ | 294.0 | $ | (30.0 | ) | $ | 264.0 | ||||||
Revolver ($450mm) | $ | — | $ | — | $ | — | |||||||
Term Loan A | $ | 494.4 | $ | (6.4 | ) | $ | 488.0 | ||||||
Term Loan B (a) | $ | 396.0 | $ | (1.0 | ) | $ | 395.0 | ||||||
Capital Leases & Other Debt | $ | 209.8 | $ | 53.7 | $ | 263.5 | |||||||
Total Debt | $ | 1,394.2 | $ | 16.3 | $ | 1,410.5 | |||||||
Net Debt | $ | 1,325.5 | $ | 31.3 | $ | 1,356.8 | |||||||
(a) Amounts presented represent face value |
9 |
10 |
11 |
• | trends and expectations relating to our operations, Revenue xFSR, expenses, other revenue, pricing, profitability and related metrics; |
• | the anticipated benefits of our driver satisfaction and retention initiatives; |
• | projected Adjusted EPS for full year 2015; |
• | the timing and level of fleet size and equipment and container count; |
• | expected trends in insurance claims expense resulting from our safety initiatives; and |
• | estimated capital expenditures for the remainder of 2015. |
• | economic conditions, including future recessionary economic cycles and downturns in customers’ business cycles, particularly in market segments and industries in which we have a significant concentration of customers; |
• | increasing competition from trucking, rail, intermodal, and brokerage competitors; |
• | our ability to execute or integrate any future acquisitions successfully; |
• | increases in driver compensation to the extent not offset by increases in freight rates and difficulties in driver recruitment and retention; |
• | our ability to attract and maintain relationships with owner-operators; |
• | our ability to retain or replace key personnel; |
• | our dependence on third parties for intermodal and brokerage business; |
• | potential failure in computer or communications systems; |
• | seasonal factors such as harsh weather conditions that increase operating costs; |
12 |
• | the regulatory environment in which we operate, including existing regulations and changes in existing regulations, or violations by us of existing or future regulations; |
• | the possible re-classification of our owner-operators as employees; |
• | changes in rules or legislation by the National Labor Relations Board or Congress and/or union organizing efforts; |
• | our Compliance Safety Accountability safety rating; |
• | government regulations with respect to our captive insurance companies; |
• | uncertainties and risks associated with our operations in Mexico; |
• | a significant reduction in, or termination of, our trucking services by a key customer; |
• | our significant ongoing capital requirements; |
• | the amount and velocity of changes in fuel prices and our ability to recover fuel prices through our fuel surcharge program; |
• | volatility in the price or availability of fuel; |
• | increases in new equipment prices or replacement costs; |
• | our level of indebtedness and our ability to service our outstanding indebtedness, including compliance with our indebtedness covenants, and the impact such indebtedness may have on the way we operate our business; |
• | restrictions contained in our debt agreements; |
• | adverse impacts of insuring risk through our captive insurance companies, including our need to provide restricted cash and similar collateral for anticipated losses; |
• | potential volatility or decrease in the amount of earnings as a result of our claims exposure through our captive insurance companies; |
• | the potential impact of the significant number of shares of our common stock that is outstanding; |
• | goodwill impairment; |
• | our intention to not pay dividends; |
• | conflicts of interest or potential litigation that may arise from other businesses owned by Jerry Moyes, including pledges of Swift stock and guarantees related to other businesses by Jerry Moyes; |
• | the significant amount of our stock and related control over the Company by Jerry Moyes; |
• | related-party transactions between the Company and Jerry Moyes; and |
• | that our acquisition of Central may be challenged by our stockholders. |
13 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Operating revenue: | |||||||||||||||
Revenue, excluding fuel surcharge revenue | $ | 935,899 | $ | 876,337 | $ | 1,830,763 | $ | 1,693,336 | |||||||
Fuel surcharge revenue | 123,505 | 199,561 | 243,785 | 391,008 | |||||||||||
Operating revenue | 1,059,404 | 1,075,898 | 2,074,548 | 2,084,344 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries, wages and employee benefits | 276,326 | 238,093 | 537,980 | 467,459 | |||||||||||
Operating supplies and expenses | 91,147 | 84,077 | 185,351 | 164,902 | |||||||||||
Fuel | 116,668 | 153,677 | 223,575 | 309,699 | |||||||||||
Purchased transportation | 294,677 | 340,249 | 583,488 | 659,418 | |||||||||||
Rental expense | 59,846 | 56,135 | 121,821 | 107,854 | |||||||||||
Insurance and claims | 42,206 | 33,321 | 86,513 | 75,769 | |||||||||||
Depreciation and amortization of property and equipment | 60,415 | 54,791 | 117,342 | 110,966 | |||||||||||
Amortization of intangibles | 4,203 | 4,203 | 8,407 | 8,407 | |||||||||||
Gain on disposal of property and equipment | (10,230 | ) | (8,312 | ) | (14,162 | ) | (11,471 | ) | |||||||
Communication and utilities | 7,399 | 7,716 | 14,898 | 14,886 | |||||||||||
Operating taxes and licenses | 18,271 | 17,926 | 35,859 | 36,263 | |||||||||||
Total operating expenses | 960,928 | 981,876 | 1,901,072 | 1,944,152 | |||||||||||
Operating income | 98,476 | 94,022 | 173,476 | 140,192 | |||||||||||
Other expenses (income): | |||||||||||||||
Interest expense | 10,109 | 21,453 | 20,497 | 44,678 | |||||||||||
Derivative interest expense | 1,111 | 1,618 | 3,904 | 3,271 | |||||||||||
Interest income | (591 | ) | (692 | ) | (1,178 | ) | (1,458 | ) | |||||||
Loss on debt extinguishment | — | 6,990 | — | 9,903 | |||||||||||
Non-cash impairments of non-operating assets | — | — | 1,480 | — | |||||||||||
Legal settlement | 6,000 | — | 6,000 | — | |||||||||||
Other | (984 | ) | (710 | ) | (1,589 | ) | (1,574 | ) | |||||||
Total other expenses (income), net | 15,645 | 28,659 | 29,114 | 54,820 | |||||||||||
Income before income taxes | 82,831 | 65,363 | 144,362 | 85,372 | |||||||||||
Income tax expense | 31,877 | 25,165 | 55,568 | 32,869 | |||||||||||
Net income | $ | 50,954 | $ | 40,198 | $ | 88,794 | $ | 52,503 | |||||||
Basic earnings per share | $ | 0.36 | $ | 0.28 | $ | 0.62 | $ | 0.37 | |||||||
Diluted earnings per share | $ | 0.35 | $ | 0.28 | $ | 0.62 | $ | 0.37 | |||||||
Shares used in per share calculations: | |||||||||||||||
Basic | 142,540 | 141,308 | 142,371 | 141,143 | |||||||||||
Diluted | 144,212 | 143,393 | 144,182 | 143,265 |
14 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
Diluted earnings per share | $ | 0.35 | $ | 0.28 | $ | 0.35 | $ | 0.62 | $ | 0.37 | $ | 0.57 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Income tax expense | 0.22 | 0.18 | 0.19 | 0.39 | 0.23 | 0.29 | |||||||||||||||||
Income before income taxes | 0.57 | 0.46 | 0.54 | 1.00 | 0.60 | 0.86 | |||||||||||||||||
Non-cash impairments of non-operating assets (2) | — | — | — | 0.01 | — | — | |||||||||||||||||
Loss on debt extinguishment (3) | — | 0.05 | — | — | 0.07 | 0.04 | |||||||||||||||||
Amortization of certain intangibles (4) | 0.03 | 0.03 | 0.03 | 0.05 | 0.05 | 0.06 | |||||||||||||||||
Adjusted income before income taxes | 0.60 | 0.53 | 0.57 | 1.06 | 0.72 | 0.95 | |||||||||||||||||
Provision for income tax expense at effective rate | 0.23 | 0.20 | 0.22 | 0.41 | 0.28 | 0.37 | |||||||||||||||||
Adjusted EPS | $ | 0.37 | $ | 0.33 | $ | 0.35 | $ | 0.65 | $ | 0.44 | $ | 0.59 |
(i) | amortization of the intangibles from our 2007 going-private transaction, |
(ii) | non-cash impairments, |
(iv) | excludable transaction costs, |
(v) | mark-to-market adjustments on our interest rate swaps, recognized in the income statement, and |
(vi) | amortization of previous losses recorded in accumulated other comprehensive income (loss) (“AOCI”) related to the interest rate swaps we terminated upon our IPO and refinancing transactions in December 2010. |
(2) | In September 2013, the Company agreed to advance up to $2.3 million, pursuant to an unsecured promissory note, to an independent fleet contractor that transported freight on Swift's behalf. In March 2015, management became aware that the independent contractor violated various covenants outlined in the unsecured promissory note, which created an event of default that made the principal and accrued interest immediately due and payable. As a result of this event of default, as well as an overall decline in the independent contractor's financial condition, management re-evaluated the fair value of the unsecured promissory note. As of March 31, 2015, management determined that the remaining balance due from the independent contractor to the Company was not collectible, which resulted in a $1.5 million pre-tax adjustment that was recorded in "Non-cash impairments of non-operating assets" in the Company's consolidated income statements. |
(3) | During the six months ended June 30, 2014, the Company used cash on hand to repurchase $39.2 million in principal of its Senior Secured Second Priority Notes, priced at 110.50%, in the form of open market transactions. Including principal, premium and accrued interest, the Company paid $44.7 million. The repurchase of the Senior Secured Second Priority Notes resulted in a loss on debt extinguishment of $4.7 million, representing the write-off of the unamortized original issue discount. |
(4) | For each three and six month period presented, amortization of certain intangibles reflects the non-cash amortization expense of $3.9 million and $7.8 million, respectively, relating to certain intangible assets identified in the 2007 going-private transaction through which Swift Corporation acquired Swift Transportation Co. |
15 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||||||||
Operating revenue | $ | 1,059,404 | $ | 1,075,898 | $ | 1,029,071 | $ | 2,074,548 | $ | 2,084,344 | $ | 2,010,679 | |||||||||||
Less: Fuel surcharge revenue | 123,505 | 199,561 | 198,924 | 243,785 | 391,008 | 395,981 | |||||||||||||||||
Revenue xFSR | 935,899 | 876,337 | 830,147 | 1,830,763 | 1,693,336 | 1,614,698 | |||||||||||||||||
Operating expense | 960,928 | 981,876 | 928,805 | 1,901,072 | 1,944,152 | 1,840,695 | |||||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Fuel surcharge revenue | (123,505 | ) | (199,561 | ) | (198,924 | ) | (243,785 | ) | (391,008 | ) | (395,981 | ) | |||||||||||
Amortization of certain intangibles (2) | (3,912 | ) | (3,912 | ) | (3,912 | ) | (7,824 | ) | (7,824 | ) | (7,824 | ) | |||||||||||
Adjusted operating expense | 833,511 | 778,403 | 725,969 | 1,649,463 | 1,545,320 | 1,436,890 | |||||||||||||||||
Adjusted operating income | $ | 102,388 | $ | 97,934 | $ | 104,178 | $ | 181,300 | $ | 148,016 | $ | 177,808 | |||||||||||
Operating Ratio | 90.7 | % | 91.3 | % | 90.3 | % | 91.6 | % | 93.3 | % | 91.5 | % | |||||||||||
Adjusted Operating Ratio | 89.1 | % | 88.8 | % | 87.5 | % | 90.1 | % | 91.3 | % | 89.0 | % |
(1) | Our definition of the non-GAAP measure, Adjusted Operating Ratio, starts with (a) operating expense and (b) operating revenue, which are GAAP financial measures. We subtract the following items from (a) to arrive at (c) adjusted operating expense: |
(i) | fuel surcharge revenue, |
(ii) | amortization of the intangibles from our 2007 going-private transaction, |
(iii) | non-cash operating impairment charges, |
(iv) | other special non-cash items, and |
(v) | excludable transaction costs. |
(2) | Includes the items discussed in note (4) to the Non-GAAP Reconciliation: Adjusted EPS. |
16 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income | $ | 50,954 | $ | 40,198 | $ | 49,879 | $ | 88,794 | $ | 52,503 | $ | 80,171 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Depreciation and amortization of property and equipment | 60,415 | 54,791 | 56,880 | 117,342 | 110,966 | 111,750 | |||||||||||||||||
Amortization of intangibles | 4,203 | 4,203 | 4,203 | 8,407 | 8,407 | 8,407 | |||||||||||||||||
Interest expense | 10,109 | 21,453 | 24,762 | 20,497 | 44,678 | 51,124 | |||||||||||||||||
Derivative interest expense | 1,111 | 1,618 | 532 | 3,904 | 3,271 | 1,094 | |||||||||||||||||
Interest income | (591 | ) | (692 | ) | (546 | ) | (1,178 | ) | (1,458 | ) | (1,137 | ) | |||||||||||
Income tax expense | 31,877 | 25,165 | 26,963 | 55,568 | 32,869 | 41,650 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 158,078 | $ | 146,736 | $ | 162,673 | $ | 293,334 | $ | 251,236 | $ | 293,059 | |||||||||||
Non-cash equity compensation (2) | 1,400 | 1,292 | 893 | 2,883 | 2,353 | 1,498 | |||||||||||||||||
Loss on debt extinguishment (3) | — | 6,990 | — | — | 9,903 | 5,044 | |||||||||||||||||
Non-cash impairments of non-operating assets (4) | — | — | — | 1,480 | — | — | |||||||||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) | $ | 159,478 | $ | 155,018 | $ | 163,566 | $ | 297,697 | $ | 263,492 | $ | 299,601 |
(1) | Our definition of the non-GAAP measure, Adjusted EBITDA, starts with (a) net income (loss), the most comparable GAAP measure. We add the following items back to (a) to arrive at Adjusted EBITDA |
(i) | depreciation and amortization, |
(ii) | interest and derivative interest expense, including fees and charges associated with indebtedness, net of interest income, |
(iii) | income taxes, |
(iv) | non-cash equity compensation expense, |
(v) | non-cash impairments, |
(vi) | other special non-cash items, and |
(vii) | excludable transaction costs. |
(2) | Represents recurring non-cash equity compensation expense, on a pre-tax basis. In accordance with the terms of our senior credit agreement, this expense is added back in the calculation of Adjusted EBITDA for covenant compliance purposes. |
(3) | Includes the items discussed in note (3) to the Non-GAAP Reconciliation: Adjusted EPS. |
(4) | Includes the item discussed in note (2) to the Non-GAAP Reconciliation: Adjusted EPS. |
17 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
(dollar amounts in thousands) | ||||||||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||
Truckload | $ | 555,715 | $ | 575,481 | $ | 588,724 | 1,094,056 | $ | 1,128,538 | $ | 1,148,319 | |||||||||||
Dedicated | 234,213 | 223,098 | 182,651 | 451,988 | 416,751 | 361,877 | ||||||||||||||||
Central Refrigerated | 97,688 | 106,911 | 111,238 | 193,256 | 213,674 | 217,640 | ||||||||||||||||
Intermodal | 98,507 | 100,911 | 90,994 | 188,861 | 192,224 | 174,258 | ||||||||||||||||
Subtotal | 986,123 | 1,006,401 | 973,607 | 1,928,161 | 1,951,187 | 1,902,094 | ||||||||||||||||
Non-reportable segment (1) | 93,869 | 83,491 | 71,915 | 185,491 | 159,157 | 143,972 | ||||||||||||||||
Intersegment eliminations | (20,588 | ) | (13,994 | ) | (16,451 | ) | (39,104 | ) | (26,000 | ) | (35,387 | ) | ||||||||||
Consolidated operating revenue | $ | 1,059,404 | $ | 1,075,898 | $ | 1,029,071 | 2,074,548 | $ | 2,084,344 | $ | 2,010,679 | |||||||||||
Operating Income (Loss): | ||||||||||||||||||||||
Truckload | $ | 67,944 | $ | 69,596 | $ | 64,614 | 124,798 | $ | 101,503 | $ | 107,017 | |||||||||||
Dedicated | 22,967 | 21,112 | 24,263 | 37,312 | 32,642 | 43,217 | ||||||||||||||||
Central Refrigerated | 6,117 | 3,662 | 5,660 | 10,916 | 6,082 | 10,381 | ||||||||||||||||
Intermodal | 1,601 | (495 | ) | 788 | 358 | (1,421 | ) | (816 | ) | |||||||||||||
Subtotal | 98,629 | 93,875 | 95,325 | 173,384 | 138,806 | 159,799 | ||||||||||||||||
Non-reportable segment (1) | (153 | ) | 147 | 4,941 | 92 | 1,386 | 10,185 | |||||||||||||||
Consolidated operating income | $ | 98,476 | $ | 94,022 | $ | 100,266 | 173,476 | $ | 140,192 | $ | 169,984 | |||||||||||
Operating Ratio: | ||||||||||||||||||||||
Truckload | 87.8 | % | 87.9 | % | 89.0 | % | 88.6 | % | 91.0 | % | 90.7 | % | ||||||||||
Dedicated | 90.2 | % | 90.5 | % | 86.7 | % | 91.7 | % | 92.2 | % | 88.1 | % | ||||||||||
Central Refrigerated | 93.7 | % | 96.6 | % | 94.9 | % | 94.4 | % | 97.2 | % | 95.2 | % | ||||||||||
Intermodal | 98.4 | % | 100.5 | % | 99.1 | % | 99.8 | % | 100.7 | % | 100.5 | % | ||||||||||
Adjusted Operating Ratio (2): | ||||||||||||||||||||||
Truckload | 86.0 | % | 84.8 | % | 86.2 | % | 86.9 | % | 88.7 | % | 88.2 | % | ||||||||||
Dedicated | 89.1 | % | 88.5 | % | 83.7 | % | 90.8 | % | 90.4 | % | 85.3 | % | ||||||||||
Central Refrigerated | 92.7 | % | 95.7 | % | 93.5 | % | 93.4 | % | 96.4 | % | 93.8 | % | ||||||||||
Intermodal | 98.1 | % | 100.6 | % | 98.9 | % | 99.8 | % | 100.9 | % | 100.6 | % |
(1) | The other non-reportable segment includes the Company's logistics and freight brokerage services, as well as support services provided by its subsidiaries to customers and owner-operators, including repair and maintenance shop services, equipment leasing, and insurance. Intangible asset amortization related to the 2007 going-private transactions is also included in this other non-reportable segment. |
(2) | For more details, refer to the Non-GAAP Reconciliation: Adjusted Operating Income and Operating Ratio by Segment. |
18 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Truckload: | ||||||||||||||||||||||
Weekly revenue xFSR per tractor | $ | 3,571 | $ | 3,453 | $ | 3,270 | 3,516 | $ | 3,335 | $ | 3,227 | |||||||||||
Total loaded miles (1) | 261,609 | 259,583 | 274,830 | 516,535 | 514,009 | 536,680 | ||||||||||||||||
Deadhead miles percentage | 11.8 | % | 11.7 | % | 11.4 | % | 11.8 | % | 11.7 | % | 11.3 | % | ||||||||||
Average operational truck count: | ||||||||||||||||||||||
Company | 7,465 | 6,822 | 7,733 | 7,400 | 6,987 | 7,613 | ||||||||||||||||
Owner-Operator | 2,991 | 3,406 | 3,288 | 3,096 | 3,445 | 3,290 | ||||||||||||||||
Total | 10,456 | 10,228 | 11,021 | 10,496 | 10,432 | 10,903 | ||||||||||||||||
Dedicated: | ||||||||||||||||||||||
Weekly revenue xFSR per tractor | $ | 3,343 | $ | 3,191 | $ | 3,396 | 3,275 | $ | 3,184 | $ | 3,391 | |||||||||||
Average operational truck count: | ||||||||||||||||||||||
Company | 3,983 | 3,650 | 2,735 | 3,933 | 3,405 | 2,709 | ||||||||||||||||
Owner-Operator | 871 | 770 | 632 | 875 | 731 | 638 | ||||||||||||||||
Total | 4,854 | 4,420 | 3,367 | 4,808 | 4,136 | 3,347 | ||||||||||||||||
Central Refrigerated: | ||||||||||||||||||||||
Weekly revenue xFSR per tractor | $ | 3,418 | $ | 3,543 | $ | 3,367 | 3,412 | $ | 3,383 | $ | 3,349 | |||||||||||
Total loaded miles (1) | 43,215 | 42,937 | 49,239 | 85,095 | 85,694 | 96,339 | ||||||||||||||||
Deadhead miles percentage | 13.9 | % | 15.1 | % | 12.4 | % | 14.0 | % | 14.6 | % | 12.2 | % | ||||||||||
Average operational truck count: | ||||||||||||||||||||||
Company | 1,283 | 1,057 | 1,043 | 1,273 | 1,057 | 1,020 | ||||||||||||||||
Owner-Operator | 591 | 810 | 947 | 590 | 882 | 927 | ||||||||||||||||
Total | 1,874 | 1,867 | 1,990 | 1,863 | 1,939 | 1,947 | ||||||||||||||||
Intermodal: | ||||||||||||||||||||||
Average operational truck count: | ||||||||||||||||||||||
Company | 521 | 409 | 301 | 501 | 394 | 298 | ||||||||||||||||
Owner-Operator | 95 | 68 | 29 | 91 | 71 | 24 | ||||||||||||||||
Total | 616 | 477 | 330 | 592 | 465 | 322 | ||||||||||||||||
Load Count | 46,517 | 43,404 | 39,124 | 88,457 | 82,007 | 74,763 | ||||||||||||||||
Average Container Count | 9,150 | 8,717 | 8,717 | 9,150 | 8,717 | 8,717 |
(1) | Total loaded miles presented in thousands. |
19 |
As of | ||||||||
June 30, 2015 | December 31, 2014 | June 30, 2014 | ||||||
Tractors | ||||||||
Company: | ||||||||
Owned | 6,753 | 6,083 | 5,618 | |||||
Leased – capital leases | 2,077 | 1,700 | 2,059 | |||||
Leased – operating leases | 6,897 | 6,099 | 5,880 | |||||
Total company tractors | 15,727 | 13,882 | 13,557 | |||||
Owner-operator: | ||||||||
Financed through the Company | 3,843 | 4,204 | 4,473 | |||||
Other | 1,097 | 750 | 567 | |||||
Total owner-operator tractors | 4,940 | 4,954 | 5,040 | |||||
Total tractors | 20,667 | 18,836 | 18,597 | |||||
Trailers | 63,142 | 61,652 | 57,462 | |||||
Containers | 9,150 | 9,150 | 8,717 |
20 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Truckload: | |||||||||||||||||||||||
Operating revenue | $ | 555,715 | $ | 575,481 | $ | 588,724 | $ | 1,094,056 | $ | 1,128,538 | $ | 1,148,319 | |||||||||||
Less: Fuel surcharge revenue | 70,281 | 116,414 | 120,144 | 139,842 | 228,062 | 238,483 | |||||||||||||||||
Revenue xFSR | 485,434 | 459,067 | 468,580 | 954,214 | 900,476 | 909,836 | |||||||||||||||||
Operating expense | 487,771 | 505,885 | 524,110 | 969,258 | 1,027,035 | 1,041,302 | |||||||||||||||||
Adjusted for: Fuel surcharge revenue | (70,281 | ) | (116,414 | ) | (120,144 | ) | (139,842 | ) | (228,062 | ) | (238,483 | ) | |||||||||||
Adjusted operating expense | 417,490 | 389,471 | 403,966 | 829,416 | 798,973 | 802,819 | |||||||||||||||||
Adjusted operating income | $ | 67,944 | $ | 69,596 | $ | 64,614 | $ | 124,798 | $ | 101,503 | $ | 107,017 | |||||||||||
Adjusted Operating Ratio | 86.0 | % | 84.8 | % | 86.2 | % | 86.9 | % | 88.7 | % | 88.2 | % | |||||||||||
Operating Ratio | 87.8 | % | 87.9 | % | 89.0 | % | 88.6 | % | 91.0 | % | 90.7 | % | |||||||||||
Dedicated: | |||||||||||||||||||||||
Operating revenue | $ | 234,213 | $ | 223,098 | $ | 182,651 | $ | 451,988 | $ | 416,751 | $ | 361,877 | |||||||||||
Less: Fuel surcharge revenue | 23,256 | 39,775 | 33,998 | 44,898 | 76,309 | 68,431 | |||||||||||||||||
Revenue xFSR | 210,957 | 183,323 | 148,653 | 407,090 | 340,442 | 293,446 | |||||||||||||||||
Operating expense | 211,246 | 201,986 | 158,388 | 414,676 | 384,109 | 318,660 | |||||||||||||||||
Adjusted for: Fuel surcharge revenue | (23,256 | ) | (39,775 | ) | (33,998 | ) | (44,898 | ) | (76,309 | ) | (68,431 | ) | |||||||||||
Adjusted operating expense | 187,990 | 162,211 | 124,390 | 369,778 | 307,800 | 250,229 | |||||||||||||||||
Adjusted operating income | $ | 22,967 | $ | 21,112 | $ | 24,263 | $ | 37,312 | $ | 32,642 | $ | 43,217 | |||||||||||
Adjusted Operating Ratio | 89.1 | % | 88.5 | % | 83.7 | % | 90.8 | % | 90.4 | % | 85.3 | % | |||||||||||
Operating Ratio | 90.2 | % | 90.5 | % | 86.7 | % | 91.7 | % | 92.2 | % | 88.1 | % | |||||||||||
Central Refrigerated: | |||||||||||||||||||||||
Operating revenue | $ | 97,688 | $ | 106,911 | $ | 111,238 | $ | 193,256 | $ | 213,674 | $ | 217,640 | |||||||||||
Less: Fuel surcharge revenue | 14,410 | 20,941 | 24,162 | 28,878 | 44,118 | 49,012 | |||||||||||||||||
Revenue xFSR | 83,278 | 85,970 | 87,076 | 164,378 | 169,556 | 168,628 | |||||||||||||||||
Operating expense | 91,571 | 103,249 | 105,578 | 182,340 | 207,592 | 207,259 | |||||||||||||||||
Adjusted for: Fuel surcharge revenue | (14,410 | ) | (20,941 | ) | (24,162 | ) | (28,878 | ) | (44,118 | ) | (49,012 | ) | |||||||||||
Adjusted operating expense | 77,161 | 82,308 | 81,416 | 153,462 | 163,474 | 158,247 | |||||||||||||||||
Adjusted operating income | $ | 6,117 | $ | 3,662 | $ | 5,660 | $ | 10,916 | $ | 6,082 | $ | 10,381 | |||||||||||
Adjusted Operating Ratio | 92.7 | % | 95.7 | % | 93.5 | % | 93.4 | % | 96.4 | % | 93.8 | % | |||||||||||
Operating Ratio | 93.7 | % | 96.6 | % | 94.9 | % | 94.4 | % | 97.2 | % | 95.2 | % | |||||||||||
Intermodal: | |||||||||||||||||||||||
Operating revenue | $ | 98,507 | $ | 100,911 | $ | 90,994 | $ | 188,861 | $ | 192,224 | $ | 174,258 | |||||||||||
Less: Fuel surcharge revenue | 13,664 | 20,104 | 18,814 | 26,754 | 38,468 | 36,825 | |||||||||||||||||
Revenue xFSR | 84,843 | 80,807 | 72,180 | 162,107 | 153,756 | 137,433 | |||||||||||||||||
Operating expense | 96,906 | 101,406 | 90,206 | 188,503 | 193,645 | 175,074 | |||||||||||||||||
Adjusted for: Fuel surcharge revenue | (13,664 | ) | (20,104 | ) | (18,814 | ) | (26,754 | ) | (38,468 | ) | (36,825 | ) | |||||||||||
Adjusted operating expense | 83,242 | 81,302 | 71,392 | 161,749 | 155,177 | 138,249 | |||||||||||||||||
Adjusted operating income (loss) | $ | 1,601 | $ | (495 | ) | $ | 788 | $ | 358 | $ | (1,421 | ) | $ | (816 | ) | ||||||||
Adjusted Operating Ratio | 98.1 | % | 100.6 | % | 98.9 | % | 99.8 | % | 100.9 | % | 100.6 | % | |||||||||||
Operating Ratio | 98.4 | % | 100.5 | % | 99.1 | % | 99.8 | % | 100.7 | % | 100.5 | % |
21 |
June 30, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 53,651 | $ | 105,132 | |||
Restricted cash | 64,309 | 45,621 | |||||
Restricted investments, held to maturity, amortized cost | 18,284 | 24,510 | |||||
Accounts receivable, net | 451,799 | 478,999 | |||||
Equipment sales receivable | — | 288 | |||||
Income tax refund receivable | 4,399 | 18,455 | |||||
Inventories and supplies | 18,633 | 18,992 | |||||
Assets held for sale | 8,049 | 2,907 | |||||
Prepaid taxes, licenses, insurance and other | 47,137 | 51,441 | |||||
Deferred income taxes | 39,348 | 44,861 | |||||
Current portion of notes receivable | 9,093 | 9,202 | |||||
Total current assets | 714,702 | 800,408 | |||||
Property and equipment, at cost: | |||||||
Revenue and service equipment | 2,194,255 | 2,061,835 | |||||
Land | 127,865 | 122,835 | |||||
Facilities and improvements | 263,645 | 268,025 | |||||
Furniture and office equipment | 78,809 | 67,740 | |||||
Total property and equipment | 2,664,574 | 2,520,435 | |||||
Less: accumulated depreciation and amortization | 1,049,974 | 978,305 | |||||
Net property and equipment | 1,614,600 | 1,542,130 | |||||
Other assets | 34,928 | 41,855 | |||||
Intangible assets, net | 291,526 | 299,933 | |||||
Goodwill | 253,256 | 253,256 | |||||
Total assets | $ | 2,909,012 | $ | 2,937,582 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 123,438 | $ | 160,186 | |||
Accrued liabilities | 114,171 | 100,329 | |||||
Current portion of claims accruals | 74,465 | 81,251 | |||||
Current portion of long-term debt (1) | 30,860 | 31,445 | |||||
Current portion of capital lease obligations | 52,499 | 42,902 | |||||
Fair value of interest rate swaps | 2,213 | 6,109 | |||||
Total current liabilities | 397,646 | 422,222 | |||||
Revolving line of credit | — | 57,000 | |||||
Long-term debt, less current portion (1) | 858,879 | 871,615 | |||||
Capital lease obligations, less current portion | 203,447 | 158,104 | |||||
Claims accruals, less current portion | 148,559 | 143,693 | |||||
Deferred income taxes | 464,206 | 480,640 | |||||
Securitization of accounts receivable | 264,000 | 334,000 | |||||
Other liabilities | 181 | 14 | |||||
Total liabilities | 2,336,918 | 2,467,288 | |||||
Stockholders' equity: | |||||||
Preferred stock | — | — | |||||
Class A common stock | 917 | 911 | |||||
Class B common stock | 510 | 510 | |||||
Additional paid-in capital | 791,776 | 781,124 | |||||
Accumulated deficit | (221,223 | ) | (310,017 | ) | |||
Accumulated other comprehensive income (loss) | 12 | (2,336 | ) | ||||
Noncontrolling interest | 102 | 102 | |||||
Total stockholders' equity | 572,094 | 470,294 | |||||
Total liabilities and stockholders' equity | $ | 2,909,012 | $ | 2,937,582 |
(1) | As of June 30, 2015, the Company's total long-term debt had a carrying value of $889.7 million, comprised of: |
22 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 88,794 | $ | 52,503 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property, equipment and intangibles | 125,749 | 119,373 | |||||
Amortization of debt issuance costs, original issue discount, and losses on terminated swaps | 5,228 | 5,077 | |||||
Gain on disposal of property and equipment less write-off of totaled tractors | (13,507 | ) | (10,522 | ) | |||
Impairments | 1,480 | — | |||||
Deferred income taxes | (12,636 | ) | (25,538 | ) | |||
Provision for losses on accounts receivable | 3,612 | 1,604 | |||||
Non-cash loss on debt extinguishment and write-offs of deferred financing costs and original issue discount | — | 9,903 | |||||
Non-cash equity compensation | 2,883 | 2,353 | |||||
Excess tax benefits from stock-based compensation (1) | (2,460 | ) | (1,835 | ) | |||
Income effect of mark-to-market adjustment of interest rate swaps | (325 | ) | (43 | ) | |||
Increase (decrease) in cash resulting from changes in: | |||||||
Accounts receivable | 23,588 | (43,526 | ) | ||||
Inventories and supplies | 359 | (2,334 | ) | ||||
Prepaid expenses and other current assets | 18,360 | 28,128 | |||||
Other assets | 4,551 | 6,556 | |||||
Accounts payable, accrued and other liabilities (1) | 2,527 | 41,784 | |||||
Net cash provided by operating activities | 248,203 | 183,483 | |||||
Cash flows from investing activities: | |||||||
Increase in restricted cash | (18,688 | ) | (1,982 | ) | |||
Proceeds from maturities of investments (2) | 20,975 | 19,642 | |||||
Purchases of investments (2) | (14,825 | ) | (19,755 | ) | |||
Proceeds from sale of property and equipment | 46,663 | 77,088 | |||||
Capital expenditures | (166,697 | ) | (135,068 | ) | |||
Payments received on notes receivable | 3,536 | 2,226 | |||||
Expenditures on assets held for sale | (11,461 | ) | (1,991 | ) | |||
Payments received on assets held for sale | 4,299 | 13,603 | |||||
Payments received on equipment sale receivables | 12 | 385 | |||||
Net cash used in investing activities | (136,186 | ) | (45,852 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of long-term debt and capital leases | (48,777 | ) | (707,386 | ) | |||
Proceeds from long-term debt | 4,504 | 450,000 | |||||
Net (repayments) borrowings on revolving line of credit | (57,000 | ) | 82,000 | ||||
Borrowings under accounts receivable securitization | 25,000 | 95,000 | |||||
Repayment of accounts receivable securitization | (95,000 | ) | (40,000 | ) | |||
Payment of deferred loan costs | — | (10,541 | ) | ||||
Proceeds from common stock issued | 5,315 | 5,811 | |||||
Excess tax benefits from stock-based compensation | 2,460 | 1,835 | |||||
Net cash used in financing activities | (163,498 | ) | (123,281 | ) | |||
Net (decrease) increase in cash and cash equivalents | (51,481 | ) | 14,350 | ||||
Cash and cash equivalents at beginning of period | 105,132 | 59,178 | |||||
Cash and cash equivalents at end of period | $ | 53,651 | $ | 73,528 |
23 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 25,575 | $ | 49,331 | |||
Income taxes | 50,807 | 22,041 | |||||
Non-cash investing activities: | |||||||
Equipment purchase accrual | $ | 8,991 | $ | 19,916 | |||
Notes receivable from sale of assets | 3,548 | 4,015 | |||||
Equipment sales receivables | — | 453 | |||||
Non-cash financing activities: | |||||||
Capital lease additions | $ | 85,821 | $ | 38,043 | |||
Accrued deferred loan costs | — | 1,433 |
(1) | Beginning in 2015, we separately present excess tax benefits from stock-based compensation within "Net cash provided by operating activities." The prior period presentation has been retrospectively adjusted to reclassify the amount out of "Accounts payable, accrued and other liabilities" and into the new line item "Excess tax benefits from stock-based compensation." The change in presentation has no net impact on “Net cash provided by operating activities.” |
(2) | Also beginning in 2015, the Company presents gross amounts of its investment in securities activities as "Proceeds from maturities of investments" and "Purchases of investments" in the consolidated statements of cash flows. The prior period presentation has been retrospectively adjusted to accommodate this gross presentation. The change in presentation has no net impact on "Net cash used in investing activities." |
24 |
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