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 January 26, 2017, issued by Swift Transportation Company |
Swift Transportation Company | |||||
(Registrant) | |||||
Date: | January 26, 2017 | /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 December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
Operating Revenue | $ | 1,038.6 | $ | 1,089.8 | $ | 1,139.5 | $ | 4,031.5 | $ | 4,229.3 | $ | 4,298.7 | |||||||||||
Revenue xFSR (1)(2) | $ | 950.8 | $ | 996.2 | $ | 960.2 | $ | 3,722.9 | $ | 3,782.0 | $ | 3,535.4 | |||||||||||
Operating Ratio | 92.7 | % | 88.8 | % | 88.4 | % | 94.0 | % | 91.2 | % | 91.4 | % | |||||||||||
Adjusted Operating Ratio (2) | 91.6 | % | 87.4 | % | 85.8 | % | 92.9 | % | 89.8 | % | 89.0 | % | |||||||||||
Diluted EPS | $ | 0.38 | $ | 0.51 | $ | 0.41 | $ | 1.10 | $ | 1.38 | $ | 1.12 | |||||||||||
Adjusted EPS (2) | $ | 0.40 | $ | 0.53 | $ | 0.55 | $ | 1.22 | $ | 1.49 | $ | 1.38 | |||||||||||
(1) Revenue xFSR is operating revenue, excluding fuel surcharge revenue | |||||||||||||||||||||||
(2) See GAAP to Non-GAAP reconciliation in the schedules following this letter |
• | Diluted EPS was $0.38 and Adjusted EPS was $0.40 |
• | We repurchased $2.1 million of our Class A common stock in the fourth quarter |
• | Net Debt and Net Leverage Ratio were $1,057.7 million and 1.98, respectively, as of December 31, 2016 |
• | Consolidated Average Operational Truck Count declined by 210 trucks from the third quarter of 2016, and 746 trucks year over year in the fourth quarter, in a continued effort to drive improvements in asset utilization |
• | Favorable discrete tax items resulted in an effective tax rate of 27.8% |
• | Truckload Revenue xFSR for the fourth quarter of 2016 was $472.7 million, compared to $503.3 million in the fourth quarter of 2015 |
• | Excess carrier capacity and pricing pressure continue to challenge the marketplace |
• | Total loaded miles driven within the period decreased 3.8% year over year, although utilization increased slightly primarily due to a 3.9% reduction in Average Operational Truck Count |
• | Deadhead percentage improved 30 basis points year over year |
• | Operating Ratio and Adjusted Operating Ratio for the fourth quarter of 2016 were 90.9% and 90.0%, respectively |
![]() | 1 |
• | Dedicated Revenue xFSR grew 6.7% year over year to $241.0 million |
• | Weekly Revenue xFSR per Tractor improved 6.5% year over year, and has increased sequentially for the past five quarters |
• | Average Operational Truck Count increased 86 trucks sequentially, due to growth with our existing dedicated customers and seasonal surge |
• | Operating Ratio and Adjusted Operating Ratio for the fourth quarter of 2016 were 90.0% and 89.3%, respectively |
• | Swift Refrigerated Revenue xFSR for the fourth quarter of 2016 was $73.8 million, compared to $82.7 million in the fourth quarter of 2015 |
• | Weekly Revenue xFSR per Tractor increased 3.8% year over year, due to a 6.5% increase in asset utilization |
• | Deadhead percentage improved 60 basis points year over year, and 10 basis points sequentially |
• | Operating Ratio and Adjusted Operating Ratio for the fourth quarter of 2016 were 96.5% and 96.0%, respectively |
• | Intermodal Revenue xFSR for the fourth quarter of 2016 was $85.1 million, compared to $90.0 million in the fourth quarter of 2015 |
• | Load Counts were inconsistent and pressured throughout the quarter |
• | Maintaining a proper cost infrastructure, while also improving operational efficiencies remains our primary focus |
• | Operating Ratio and Adjusted Operating Ratio for the fourth quarter of 2016 were 98.8% and 98.7%, respectively |
![]() | 2 |
Three Months Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 521.2 | $ | 557.2 | $ | 601.5 | |||||
Revenue xFSR (1)(2)(3) | $ | 472.7 | $ | 503.3 | $ | 498.5 | |||||
Operating Ratio | 90.9 | % | 86.5 | % | 85.8 | % | |||||
Adjusted Operating Ratio (3) | 90.0 | % | 85.1 | % | 82.9 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,577 | $ | 3,659 | $ | 3,671 | |||||
Total Loaded Miles (4) | 249,901 | 259,762 | 262,114 | ||||||||
Average Operational Truck Count | 10,055 | 10,465 | 10,333 | ||||||||
Deadhead Percentage | 12.4 | % | 12.7 | % | 12.3 | % | |||||
(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 December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 257.3 | $ | 241.2 | $ | 237.3 | |||||
Revenue xFSR (1)(2)(3) | $ | 241.0 | $ | 226.0 | $ | 202.5 | |||||
Operating Ratio | 90.0 | % | 88.5 | % | 91.8 | % | |||||
Adjusted Operating Ratio (3) | 89.3 | % | 87.7 | % | 90.4 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,641 | $ | 3,418 | $ | 3,210 | |||||
Average Operational Truck Count | 5,037 | 5,030 | 4,802 | ||||||||
(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 December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 84.5 | $ | 94.0 | $ | 103.9 | |||||
Revenue xFSR (1)(2)(3) | $ | 73.8 | $ | 82.7 | $ | 84.2 | |||||
Operating Ratio | 96.5 | % | 96.2 | % | 95.5 | % | |||||
Adjusted Operating Ratio (3) | 96.0 | % | 95.7 | % | 94.4 | % | |||||
Weekly Revenue xFSR per Tractor | $ | 3,578 | $ | 3,448 | $ | 3,558 | |||||
Average Operational Truck Count | 1,570 | 1,824 | 1,800 | ||||||||
Deadhead Percentage | 13.9 | % | 14.5 | % | 15.6 | % | |||||
(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 December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Unaudited | |||||||||||
Operating Revenue (1) | $ | 95.3 | $ | 100.7 | $ | 109.4 | |||||
Revenue xFSR (1)(2)(3) | $ | 85.1 | $ | 90.0 | $ | 89.7 | |||||
Operating Ratio | 98.8 | % | 97.0 | % | 92.9 | % | |||||
Adjusted Operating Ratio (3) | 98.7 | % | 96.6 | % | 91.3 | % | |||||
Load Counts | 44,043 | 45,949 | 46,182 | ||||||||
Average Container Counts | 9,131 | 9,150 | 9,150 | ||||||||
(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 | |||||||||||||||||||
Q4'16 | Q4'15 | Variance (1) | (Dollars in millions) | Q4'16 | Q3'16 | Variance (1) | ||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||
$ | 1,038.6 | $ | 1,089.8 | -4.7 | % | Operating Revenue | $ | 1,038.6 | $ | 1,013.2 | 2.5 | % | ||||||||
$ | (87.8 | ) | $ | (93.6 | ) | -6.2 | % | Less: Fuel Surcharge Revenue | $ | (87.8 | ) | $ | (83.5 | ) | 5.2 | % | ||||
$ | 950.8 | $ | 996.2 | -4.6 | % | Revenue xFSR | $ | 950.8 | $ | 929.7 | 2.3 | % | ||||||||
$ | 279.8 | $ | 290.2 | 3.6 | % | Salaries, Wages, & Benefits | $ | 279.8 | $ | 293.1 | 4.5 | % | ||||||||
29.4 | % | 29.1 | % | -30 bps | % of Revenue xFSR | 29.4 | % | 31.5 | % | 210 | bps | |||||||||
$ | 98.8 | $ | 99.7 | 0.9 | % | Operating Supplies & Expenses | $ | 98.8 | $ | 113.8 | 13.2 | % | ||||||||
10.4 | % | 10.0 | % | -40 bps | % of Revenue xFSR | 10.4 | % | 12.2 | % | 180 | bps | |||||||||
$ | 51.8 | $ | 40.2 | -29.1 | % | Insurance & Claims | $ | 51.8 | $ | 47.4 | -9.4 | % | ||||||||
5.5 | % | 4.0 | % | -150 bps | % of Revenue xFSR | 5.5 | % | 5.1 | % | -40 bps | ||||||||||
$ | 7.7 | $ | 8.5 | 8.6 | % | Communications & Utilities | $ | 7.7 | $ | 7.1 | -8.6 | % | ||||||||
0.8 | % | 0.9 | % | 10 | bps | % of Revenue xFSR | 0.8 | % | 0.8 | % | — | |||||||||
$ | 19.0 | $ | 19.5 | 2.8 | % | Operating Taxes & Licenses | $ | 19.0 | $ | 18.7 | -1.5 | % | ||||||||
2.0 | % | 2.0 | % | — | % of Revenue xFSR | 2.0 | % | 2.0 | % | — | ||||||||||
(1) Positive numbers represent favorable variances. Negative numbers represent unfavorable variances. Variances are calculated based on the precision of the consolidated income statement, presented in thousands, included in the schedules following this letter. |
![]() | 7 |
Q4'16 | Q4'15 | (Dollars in millions) | Q4'16 | Q3'16 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 92.5 | $ | 90.2 | Fuel Expense | $ | 92.5 | $ | 90.5 | ||||||
8.9 | % | 8.3 | % | % of Operating Revenue | 8.9 | % | 8.9 | % |
Q4'16 | Q4'15 | (Dollars in millions) | Q4'16 | Q3'16 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 285.8 | $ | 297.0 | Purchased Transportation | $ | 285.8 | $ | 280.0 | ||||||
27.5 | % | 27.3 | % | % of Operating Revenue | 27.5 | % | 27.6 | % |
Q4'16 | Q4'15 | (Dollars in millions) | Q4'16 | Q3'16 | ||||||||||
Unaudited | Unaudited | |||||||||||||
$ | 55.9 | $ | 59.6 | Rental Expense | $ | 55.9 | $ | 57.0 | ||||||
5.9 | % | 6.0 | % | % of Revenue xFSR | 5.9 | % | 6.1 | % | ||||||
$ | 68.3 | $ | 67.5 | Depreciation & Amortization of Property and Equipment | $ | 68.3 | $ | 67.2 | ||||||
7.2 | % | 6.8 | % | % of Revenue xFSR | 7.2 | % | 7.2 | % | ||||||
$ | 124.2 | $ | 127.1 | Combined Rental Expense and Depreciation | $ | 124.2 | $ | 124.2 | ||||||
13.1 | % | 12.8 | % | % of Revenue xFSR | 13.1 | % | 13.4 | % |
![]() | 8 |
September 30, 2016 | Q4 2016 Changes | December 31, 2016 | |||||||||
Unaudited | |||||||||||
(In millions) | |||||||||||
Unrestricted Cash | $ | 71.3 | $ | 18.1 | $ | 89.4 | |||||
A/R Securitization ($400 million) (1) | 300.0 | (20.0 | ) | 280.0 | |||||||
Revolver ($600 million) | 50.0 | 80.0 | 130.0 | ||||||||
Term Loan A (1) | 594.3 | (100.0 | ) | 494.3 | |||||||
Capital Leases & Other Debt | 250.1 | (7.3 | ) | 242.8 | |||||||
Total Debt | $ | 1,194.4 | $ | (47.3 | ) | $ | 1,147.1 | ||||
Net Debt | $ | 1,123.1 | $ | (65.4 | ) | $ | 1,057.7 | ||||
(1) Amounts presented represent face value |
![]() | 9 |
• | GAAP Diluted EPS of $1.10 and Adjusted EPS of $1.22 |
• | Reduced Net Debt to $1,057.7 million and Leverage Ratio to 1.98 |
• | Completed the repurchase of $117.1 million of the Company's outstanding Class A common stock |
• | Jerry Moyes, Swift's Founder and Chief Executive Officer, announced his retirement effective December 31, 2016 |
• | Richard Stocking, Swift's President and Chief Operating Officer, was appointed Chief Executive Officer by Swift's Board of Directors as Mr. Moyes' successor |
• | Consolidated Average Operational Truck Count reduced 367 units or 2.0%, improving utilization levels |
• | Dedicated Revenue xFSR growth of 8.4% driven by a 7.7% increase in Weekly Revenue xFSR per Tractor |
• | 6.8% improvement in the Swift Refrigerated segment's loaded miles per tractor per week |
![]() | 10 |
• | Improved Intermodal cost infrastructure, centered around utilization, increased dray efficiencies, and overhead reductions; helping mitigate a difficult operating environment |
• | Improved safety trends and fuel efficiency resulting from the investment in new equipment |
• | Reduced our effective tax rate to 30.6% due to federal domestic production deductions, certain income tax credits received by our foreign and domestic subsidiaries and a reduction in our uncertain tax position reserve |
• | Economic recession and/or softening of freight volumes |
• | Pricing pressure / irrational competitor behavior |
• | Negative safety trends (frequency and severity) and/or claims development |
• | Further weakening of the used truck market |
• | Significant increases in fuel prices |
• | Qualified driver availability |
• | See other risk factors listed below |
• | Further operational and cost control improvements |
• | Cross-selling suite of services to new and existing customers |
• | Positive safety trends (frequency and severity) and/or claims development |
• | Potential favorable changes in corporate tax rate legislation |
• | The impact of new ELD enforcement on capacity and pricing |
• | Customer core carrier consolidation |
![]() | 11 |
• | trends and expectations relating to our operations, growth in the Dedicated segment, expenses, other revenue, pricing and demand, utilization, profitability, Adjusted EPS, and related metrics; |
• | fuel price trends; |
• | risks and opportunities in 2017; |
• | the expected benefits of our cost cutting and similar strategic actions; |
• | the impact on the transportation industry and the Company of the new ELD regulations; |
• | estimate gains on the disposal of property and equipment; |
• | our expected first and second quarter 2017 EPS and Adjusted EPS; |
• | our expected 2017 effective tax rate; |
• | the timing and level of fleet size changes and equipment and container count; and |
• | estimated net capital expenditures for 2017. |
• | 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; |
• | additional risks arising from our contractual agreements with owner-operators that do not exist with our Company drivers; |
• | 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; |
• | the regulatory environment in which we operate 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; |
![]() | 12 |
• | 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; |
• | volatility in the price or availability of fuel as well as our ability to recover fuel prices through our fuel surcharge program; |
• | fluctuations in new equipment prices or replacement costs, and the potential failure of manufactures to meet their sale and trade back obligations; |
• | the impact that our substantial leverage may have on the way we operate our business and our ability to service our debt, including compliance with our debt 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 eligible for future sale; |
• | 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; and |
• | related-party transactions between the Company and Jerry Moyes. |
![]() | 13 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Operating revenue: | |||||||||||||||||||||||
Revenue, excluding fuel surcharge revenue | $ | 950,809 | $ | 996,239 | $ | 960,226 | $ | 3,722,863 | $ | 3,781,976 | $ | 3,535,391 | |||||||||||
Fuel surcharge revenue | 87,805 | 93,562 | 179,274 | 308,654 | 447,346 | 763,333 | |||||||||||||||||
Operating revenue | 1,038,614 | 1,089,801 | 1,139,500 | 4,031,517 | 4,229,322 | 4,298,724 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries, wages, and employee benefits | 279,779 | 290,199 | 263,219 | 1,148,610 | 1,111,946 | 970,683 | |||||||||||||||||
Operating supplies and expenses | 98,783 | 99,665 | 88,712 | 389,968 | 387,735 | 342,073 | |||||||||||||||||
Fuel | 92,459 | 90,184 | 133,057 | 345,281 | 416,782 | 591,855 | |||||||||||||||||
Purchased transportation | 285,757 | 297,049 | 333,738 | 1,116,709 | 1,180,403 | 1,321,268 | |||||||||||||||||
Rental expense | 55,932 | 59,592 | 61,781 | 226,258 | 240,501 | 229,290 | |||||||||||||||||
Insurance and claims | 51,845 | 40,155 | 45,804 | 192,733 | 179,545 | 159,246 | |||||||||||||||||
Depreciation and amortization of property and equipment | 68,250 | 67,541 | 55,787 | 267,134 | 251,735 | 221,122 | |||||||||||||||||
Amortization of intangibles | 4,203 | 4,203 | 4,203 | 16,814 | 16,814 | 16,814 | |||||||||||||||||
Impairments | 807 | — | — | 807 | — | 2,308 | |||||||||||||||||
Gain on disposal of property and equipment | (1,376 | ) | (8,466 | ) | (4,583 | ) | (18,285 | ) | (32,453 | ) | (27,682 | ) | |||||||||||
Communication and utilities | 7,746 | 8,472 | 7,664 | 28,723 | 31,606 | 29,871 | |||||||||||||||||
Operating taxes and licenses | 18,958 | 19,500 | 17,651 | 74,753 | 74,604 | 71,806 | |||||||||||||||||
Total operating expenses | 963,143 | 968,094 | 1,007,033 | 3,789,505 | 3,859,218 | 3,928,654 | |||||||||||||||||
Operating income | 75,471 | 121,707 | 132,467 | 242,012 | 370,104 | 370,070 | |||||||||||||||||
Other expenses (income): | |||||||||||||||||||||||
Interest expense | 7,053 | 8,723 | 15,014 | 30,598 | 38,350 | 80,064 | |||||||||||||||||
Derivative interest expense | — | — | 1,468 | — | 3,972 | 6,495 | |||||||||||||||||
Interest income | (623 | ) | (701 | ) | (674 | ) | (2,634 | ) | (2,526 | ) | (2,909 | ) | |||||||||||
Loss on debt extinguishment | — | — | 27,152 | — | 9,567 | 39,909 | |||||||||||||||||
Non-cash impairments of non-operating assets | — | — | — | — | 1,480 | — | |||||||||||||||||
(Gain) loss on sale of real property | — | (5 | ) | — | — | 133 | — | ||||||||||||||||
Legal settlements and reserves | — | — | — | 3,000 | 6,000 | — | |||||||||||||||||
Other income, net | (828 | ) | (1,179 | ) | (1,699 | ) | (3,921 | ) | (3,658 | ) | (4,115 | ) | |||||||||||
Total other expenses (income), net | 5,602 | 6,838 | 41,261 | 27,043 | 53,318 | 119,444 | |||||||||||||||||
Income before income taxes | 69,869 | 114,869 | 91,206 | 214,969 | 316,786 | 250,626 | |||||||||||||||||
Income tax expense | 19,427 | 42,367 | 32,715 | 65,702 | 119,209 | 89,474 | |||||||||||||||||
Net income | $ | 50,442 | $ | 72,502 | $ | 58,491 | $ | 149,267 | $ | 197,577 | $ | 161,152 | |||||||||||
Basic earnings per share | $ | 0.38 | $ | 0.52 | $ | 0.41 | $ | 1.11 | $ | 1.39 | $ | 1.14 | |||||||||||
Diluted earnings per share | $ | 0.38 | $ | 0.51 | $ | 0.41 | $ | 1.10 | $ | 1.38 | $ | 1.12 | |||||||||||
Shares used in per share calculations: | |||||||||||||||||||||||
Basic | 132,702 | 140,532 | 141,869 | 134,139 | 142,018 | 141,431 | |||||||||||||||||
Diluted | 133,940 | 141,631 | 143,695 | 135,494 | 143,668 | 143,475 |
![]() | 14 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Diluted earnings per share | $ | 0.38 | $ | 0.51 | $ | 0.41 | $ | 1.10 | $ | 1.38 | $ | 1.12 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Income tax expense | 0.15 | 0.30 | 0.23 | 0.48 | 0.83 | 0.62 | |||||||||||||||||
Income before income taxes | 0.52 | 0.81 | 0.63 | 1.59 | 2.20 | 1.75 | |||||||||||||||||
Non-cash impairments (2) | 0.01 | — | — | 0.01 | — | 0.02 | |||||||||||||||||
Non-cash impairments of non-operating assets (3) | — | — | — | — | 0.01 | — | |||||||||||||||||
Loss on debt extinguishment (4) | — | — | 0.19 | — | 0.07 | 0.28 | |||||||||||||||||
Amortization of certain intangibles (5) | 0.03 | 0.03 | 0.03 | 0.12 | 0.11 | 0.11 | |||||||||||||||||
Moyes retirement package (6) | — | — | — | 0.05 | — | — | |||||||||||||||||
Adjusted income before income taxes | 0.56 | 0.84 | 0.85 | 1.76 | 2.39 | 2.15 | |||||||||||||||||
Provision for income tax expense at effective rate | (0.15 | ) | (0.31 | ) | (0.30 | ) | (0.54 | ) | (0.90 | ) | (0.77 | ) | |||||||||||
Adjusted EPS (1) | $ | 0.40 | $ | 0.53 | $ | 0.55 | $ | 1.22 | $ | 1.49 | $ | 1.38 |
(i) | amortization of the intangibles from our 2007 going-private transaction, |
(ii) | non-cash impairments, |
(iii) | other special non-cash items, |
(iv) | excludable transaction costs, |
(v) | mark-to-market adjustments on our interest rate swaps, recognized in the income statement, |
(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, and |
(vii) | severance expense, including cash and equity award impact, related to the departure of certain executive leadership. |
(3) | During the three months ended, March 31, 2015, the Company recorded an impairment loss related to an uncollectible note receivable. 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. At 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 impairment that was recorded in "Non-cash impairments of non-operating assets" in the Company's consolidated income statement. |
![]() | 15 |
(6) | In conjunction with the Company's September 8, 2016 announcement that Jerry Moyes would retire from his position as Chief Executive Officer effective December 31, 2016, the Company entered into an agreement with Mr. Moyes to memorialize the terms of his retirement. The Company has contracted with Mr. Moyes to serve as a non-employee consultant from January 1, 2017 through December 31, 2019, during which time the Company will pay Mr. Moyes a monthly consulting fee of $0.2 million in cash. Additionally, the Company modified the vesting terms and forfeiture conditions of Mr. Moyes' previously-granted equity awards. As a result of the terms of the agreement, the Company incurred a one-time expense in September 2016 totaling $7.1 million, consisting of $6.8 million in accrued consulting fees and $0.3 million for the impact of the equity award modifications. The amounts are included in "Salaries, wages, and employee benefits" within the non-reportable segments' income statement. |
![]() | 16 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Operating revenue | $ | 1,038,614 | $ | 1,089,801 | $ | 1,139,500 | $ | 4,031,517 | $ | 4,229,322 | $ | 4,298,724 | |||||||||||
Less: Fuel surcharge revenue | (87,805 | ) | (93,562 | ) | (179,274 | ) | (308,654 | ) | (447,346 | ) | (763,333 | ) | |||||||||||
Revenue, excluding fuel surcharge revenue | $ | 950,809 | $ | 996,239 | $ | 960,226 | $ | 3,722,863 | $ | 3,781,976 | $ | 3,535,391 | |||||||||||
Operating expense | $ | 963,143 | $ | 968,094 | $ | 1,007,033 | $ | 3,789,505 | $ | 3,859,218 | $ | 3,928,654 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Fuel surcharge revenue | (87,805 | ) | (93,562 | ) | (179,274 | ) | (308,654 | ) | (447,346 | ) | (763,333 | ) | |||||||||||
Amortization of certain intangibles (2) | (3,912 | ) | (3,912 | ) | (3,912 | ) | (15,648 | ) | (15,648 | ) | (15,648 | ) | |||||||||||
Non-cash impairments (3) | (807 | ) | — | — | (807 | ) | — | (2,308 | ) | ||||||||||||||
Moyes retirement package (4) | — | — | — | (7,079 | ) | — | — | ||||||||||||||||
Adjusted operating expense | $ | 870,619 | $ | 870,620 | $ | 823,847 | $ | 3,457,317 | $ | 3,396,224 | $ | 3,147,365 | |||||||||||
Operating Ratio | 92.7 | % | 88.8 | % | 88.4 | % | 94.0 | % | 91.2 | % | 91.4 | % | |||||||||||
Adjusted Operating Ratio | 91.6 | % | 87.4 | % | 85.8 | % | 92.9 | % | 89.8 | % | 89.0 | % |
(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, |
(v) | excludable transaction costs, and |
(vi) | severance expense, including cash and equity award impact, related to the departure of certain executive leadership. |
![]() | 17 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net income | $ | 50,442 | $ | 72,502 | $ | 58,491 | $ | 149,267 | $ | 197,577 | $ | 161,152 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Depreciation and amortization of property and equipment | 68,250 | 67,541 | 55,787 | 267,134 | 251,735 | 221,122 | |||||||||||||||||
Amortization of intangibles | 4,203 | 4,203 | 4,203 | 16,814 | 16,814 | 16,814 | |||||||||||||||||
Interest expense | 7,053 | 8,723 | 15,014 | 30,598 | 38,350 | 80,064 | |||||||||||||||||
Derivative interest expense | — | — | 1,468 | — | 3,972 | 6,495 | |||||||||||||||||
Interest income | (623 | ) | (701 | ) | (674 | ) | (2,634 | ) | (2,526 | ) | (2,909 | ) | |||||||||||
Income tax expense | 19,427 | 42,367 | 32,715 | 65,702 | 119,209 | 89,474 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 148,752 | 194,635 | 167,004 | 526,881 | 625,131 | 572,212 | |||||||||||||||||
Non-cash impairments (2) | 807 | — | — | 807 | — | 2,308 | |||||||||||||||||
Non-cash equity compensation (3) | 1,326 | 1,907 | 1,504 | 6,017 | 6,525 | 5,396 | |||||||||||||||||
Loss on debt extinguishment (4) | — | — | 27,152 | — | 9,567 | 39,909 | |||||||||||||||||
Non-cash impairments of non-operating assets (5) | — | — | — | — | 1,480 | — | |||||||||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) | $ | 150,885 | $ | 196,542 | $ | 195,660 | $ | 533,705 | $ | 642,703 | $ | 619,825 |
(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. |
![]() | 18 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Operating revenue: | |||||||||||||||||||||||
Truckload | $ | 521,242 | $ | 557,242 | $ | 601,541 | $ | 2,048,049 | $ | 2,204,114 | $ | 2,301,010 | |||||||||||
Dedicated | 257,323 | 241,152 | 237,302 | 971,246 | 927,657 | 892,078 | |||||||||||||||||
Swift Refrigerated | 84,506 | 93,950 | 103,858 | 341,280 | 380,251 | 417,980 | |||||||||||||||||
Intermodal | 95,283 | 100,745 | 109,391 | 360,157 | 390,572 | 401,577 | |||||||||||||||||
Subtotal | 958,354 | 993,089 | 1,052,092 | 3,720,732 | 3,902,594 | 4,012,645 | |||||||||||||||||
Non-reportable segments (1) | 98,046 | 118,114 | 103,690 | 386,349 | 407,781 | 342,969 | |||||||||||||||||
Intersegment eliminations | (17,786 | ) | (21,402 | ) | (16,282 | ) | (75,564 | ) | (81,053 | ) | (56,890 | ) | |||||||||||
Consolidated operating revenue | $ | 1,038,614 | $ | 1,089,801 | $ | 1,139,500 | $ | 4,031,517 | $ | 4,229,322 | $ | 4,298,724 | |||||||||||
Operating income (loss): | |||||||||||||||||||||||
Truckload | $ | 47,349 | $ | 75,197 | $ | 85,383 | $ | 181,781 | $ | 257,007 | $ | 258,072 | |||||||||||
Dedicated | 25,841 | 27,850 | 19,460 | 108,481 | 82,735 | 75,794 | |||||||||||||||||
Swift Refrigerated | 2,934 | 3,542 | 4,715 | (12,844 | ) | 17,080 | 14,035 | ||||||||||||||||
Intermodal | 1,100 | 3,047 | 7,785 | (547 | ) | 4,128 | 8,298 | ||||||||||||||||
Subtotal | 77,224 | 109,636 | 117,343 | 276,871 | 360,950 | 356,199 | |||||||||||||||||
Non-reportable segments (1) | (1,753 | ) | 12,071 | 15,124 | (34,859 | ) | 9,154 | 13,871 | |||||||||||||||
Consolidated operating income | $ | 75,471 | $ | 121,707 | $ | 132,467 | $ | 242,012 | $ | 370,104 | $ | 370,070 | |||||||||||
Operating ratio: (2) | |||||||||||||||||||||||
Truckload | 90.9 | % | 86.5 | % | 85.8 | % | 91.1 | % | 88.3 | % | 88.8 | % | |||||||||||
Dedicated | 90.0 | % | 88.5 | % | 91.8 | % | 88.8 | % | 91.1 | % | 91.5 | % | |||||||||||
Swift Refrigerated | 96.5 | % | 96.2 | % | 95.5 | % | 103.8 | % | 95.5 | % | 96.6 | % | |||||||||||
Intermodal | 98.8 | % | 97.0 | % | 92.9 | % | 100.2 | % | 98.9 | % | 97.9 | % | |||||||||||
Adjusted Operating Ratio: (2) | |||||||||||||||||||||||
Truckload | 90.0 | % | 85.1 | % | 82.9 | % | 90.3 | % | 86.8 | % | 86.1 | % | |||||||||||
Dedicated | 89.3 | % | 87.7 | % | 90.4 | % | 88.2 | % | 90.2 | % | 89.8 | % | |||||||||||
Swift Refrigerated | 96.0 | % | 95.7 | % | 94.4 | % | 104.2 | % | 94.8 | % | 95.8 | % | |||||||||||
Intermodal | 98.7 | % | 96.6 | % | 91.3 | % | 100.2 | % | 98.8 | % | 97.4 | % |
(1) | The non-reportable segments include the Company's logistics and freight brokerage services, as well as support services that its subsidiaries provide to customers and owner-operators, including repair and maintenance shop services, equipment leasing, and insurance. Intangible amortization related to the 2007 Transactions, certain legal settlements and reserves, and certain other corporate expenses are also included in the non-reportable segments. |
![]() | 19 |
Three Months Ended December 31, | Year Ended | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Truckload: | |||||||||||||||||||||||
Weekly Revenue xFSR per tractor | $ | 3,577 | $ | 3,659 | $ | 3,671 | $ | 3,442 | $ | 3,546 | $ | 3,450 | |||||||||||
Total loaded miles (1) | 249,901 | 259,762 | 262,114 | 1,010,193 | 1,037,636 | 1,030,443 | |||||||||||||||||
Average operational truck count: | |||||||||||||||||||||||
Company | 7,180 | 7,567 | 7,114 | 7,477 | 7,508 | 6,975 | |||||||||||||||||
Owner-operator | 2,875 | 2,898 | 3,219 | 2,920 | 3,021 | 3,361 | |||||||||||||||||
Total | 10,055 | 10,465 | 10,333 | 10,397 | 10,529 | 10,336 | |||||||||||||||||
Deadhead miles percentage | 12.4 | % | 12.7 | % | 12.3 | % | 12.1 | % | 12.1 | % | 11.9 | % | |||||||||||
Dedicated: | |||||||||||||||||||||||
Weekly Revenue xFSR per tractor | $ | 3,641 | $ | 3,418 | $ | 3,210 | $ | 3,583 | $ | 3,326 | $ | 3,182 | |||||||||||
Average operational truck count: | |||||||||||||||||||||||
Company | 4,142 | 4,136 | 3,838 | 4,060 | 4,006 | 3,609 | |||||||||||||||||
Owner-operator | 895 | 894 | 964 | 850 | 884 | 852 | |||||||||||||||||
Total | 5,037 | 5,030 | 4,802 | 4,910 | 4,890 | 4,461 | |||||||||||||||||
Swift Refrigerated: | |||||||||||||||||||||||
Weekly Revenue xFSR per tractor | $ | 3,578 | $ | 3,448 | $ | 3,558 | $ | 3,532 | $ | 3,434 | $ | 3,461 | |||||||||||
Total loaded miles (1) | 39,549 | 43,159 | 40,838 | 163,838 | 170,684 | 166,637 | |||||||||||||||||
Average operational truck count: | |||||||||||||||||||||||
Company | 993 | 1,230 | 1,221 | 1,049 | 1,242 | 1,102 | |||||||||||||||||
Owner-operator | 577 | 594 | 579 | 593 | 590 | 755 | |||||||||||||||||
Total | 1,570 | 1,824 | 1,800 | 1,642 | 1,832 | 1,857 | |||||||||||||||||
Deadhead miles percentage | 13.9 | % | 14.5 | % | 15.6 | % | 13.9 | % | 14.2 | % | 15.2 | % | |||||||||||
Intermodal: | |||||||||||||||||||||||
Average operational truck count: | |||||||||||||||||||||||
Company | 425 | 518 | 456 | 437 | 517 | 426 | |||||||||||||||||
Owner-operator | 85 | 114 | 86 | 89 | 102 | 77 | |||||||||||||||||
Total | 510 | 632 | 542 | 526 | 619 | 503 | |||||||||||||||||
Load Count | 44,043 | 45,949 | 46,182 | 172,209 | 181,513 | 172,464 | |||||||||||||||||
Average Container Count | 9,131 | 9,150 | 9,150 | 9,142 | 9,150 | 8,841 |
![]() | 20 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Truckload: | |||||||||||||||||||||||
Operating revenue | $ | 521,242 | $ | 557,242 | $ | 601,541 | $ | 2,048,049 | $ | 2,204,114 | $ | 2,301,010 | |||||||||||
Less: Fuel surcharge revenue | (48,575 | ) | (53,945 | ) | (103,044 | ) | (176,676 | ) | (257,150 | ) | (442,023 | ) | |||||||||||
Revenue xFSR | $ | 472,667 | $ | 503,297 | $ | 498,497 | $ | 1,871,373 | $ | 1,946,964 | $ | 1,858,987 | |||||||||||
Operating expense | $ | 473,893 | $ | 482,045 | $ | 516,158 | $ | 1,866,268 | $ | 1,947,107 | $ | 2,042,938 | |||||||||||
Adjusted for: Fuel surcharge revenue | (48,575 | ) | (53,945 | ) | (103,044 | ) | (176,676 | ) | (257,150 | ) | (442,023 | ) | |||||||||||
Adjusted operating expense | $ | 425,318 | $ | 428,100 | $ | 413,114 | $ | 1,689,592 | $ | 1,689,957 | $ | 1,600,915 | |||||||||||
Operating Ratio | 90.9 | % | 86.5 | % | 85.8 | % | 91.1 | % | 88.3 | % | 88.8 | % | |||||||||||
Adjusted Operating Ratio | 90.0 | % | 85.1 | % | 82.9 | % | 90.3 | % | 86.8 | % | 86.1 | % | |||||||||||
Dedicated: | |||||||||||||||||||||||
Operating revenue | $ | 257,323 | $ | 241,152 | $ | 237,302 | $ | 971,246 | $ | 927,657 | $ | 892,078 | |||||||||||
Less: Fuel surcharge revenue | (16,287 | ) | (15,191 | ) | (34,764 | ) | (51,308 | ) | (79,360 | ) | (151,399 | ) | |||||||||||
Revenue xFSR | $ | 241,036 | $ | 225,961 | $ | 202,538 | $ | 919,938 | $ | 848,297 | $ | 740,679 | |||||||||||
Operating expense | $ | 231,482 | $ | 213,302 | $ | 217,842 | $ | 862,765 | $ | 844,922 | $ | 816,284 | |||||||||||
Adjusted for: Fuel surcharge revenue | (16,287 | ) | (15,191 | ) | (34,764 | ) | (51,308 | ) | (79,360 | ) | (151,399 | ) | |||||||||||
Adjusted operating expense | $ | 215,195 | $ | 198,111 | $ | 183,078 | $ | 811,457 | $ | 765,562 | $ | 664,885 | |||||||||||
Operating Ratio | 90.0 | % | 88.5 | % | 91.8 | % | 88.8 | % | 91.1 | % | 91.5 | % | |||||||||||
Adjusted Operating Ratio | 89.3 | % | 87.7 | % | 90.4 | % | 88.2 | % | 90.2 | % | 89.8 | % | |||||||||||
Swift Refrigerated: | |||||||||||||||||||||||
Operating revenue | $ | 84,506 | $ | 93,950 | $ | 103,858 | $ | 341,280 | $ | 380,251 | $ | 417,980 | |||||||||||
Less: Fuel surcharge revenue | (10,659 | ) | (11,278 | ) | (19,670 | ) | (38,032 | ) | (52,211 | ) | (83,660 | ) | |||||||||||
Revenue xFSR | $ | 73,847 | $ | 82,672 | $ | 84,188 | $ | 303,248 | $ | 328,040 | $ | 334,320 | |||||||||||
Operating expense | $ | 81,572 | $ | 90,408 | $ | 99,143 | $ | 354,124 | $ | 363,171 | $ | 403,945 | |||||||||||
Adjusted for: Fuel surcharge revenue | (10,659 | ) | (11,278 | ) | (19,670 | ) | (38,032 | ) | (52,211 | ) | (83,660 | ) | |||||||||||
Adjusted operating expense | $ | 70,913 | $ | 79,130 | $ | 79,473 | $ | 316,092 | $ | 310,960 | $ | 320,285 | |||||||||||
Operating Ratio | 96.5 | % | 96.2 | % | 95.5 | % | 103.8 | % | 95.5 | % | 96.6 | % | |||||||||||
Adjusted Operating Ratio | 96.0 | % | 95.7 | % | 94.4 | % | 104.2 | % | 94.8 | % | 95.8 | % | |||||||||||
Intermodal: | |||||||||||||||||||||||
Operating revenue | $ | 95,283 | $ | 100,745 | $ | 109,391 | $ | 360,157 | $ | 390,572 | $ | 401,577 | |||||||||||
Less: Fuel surcharge revenue | (10,166 | ) | (10,784 | ) | (19,646 | ) | (34,457 | ) | (50,441 | ) | (77,947 | ) | |||||||||||
Revenue xFSR | $ | 85,117 | $ | 89,961 | $ | 89,745 | $ | 325,700 | $ | 340,131 | $ | 323,630 | |||||||||||
Operating expense | $ | 94,183 | $ | 97,698 | $ | 101,606 | $ | 360,704 | $ | 386,444 | $ | 393,279 | |||||||||||
Adjusted for: | |||||||||||||||||||||||
Fuel surcharge revenue | (10,166 | ) | (10,784 | ) | (19,646 | ) | (34,457 | ) | (50,441 | ) | (77,947 | ) | |||||||||||
Non-cash impairments | (37 | ) | — | — | (37 | ) | — | — | |||||||||||||||
Adjusted operating expense | $ | 83,980 | $ | 86,914 | $ | 81,960 | $ | 326,210 | $ | 336,003 | $ | 315,332 | |||||||||||
Operating Ratio | 98.8 | % | 97.0 | % | 92.9 | % | 100.2 | % | 98.9 | % | 97.9 | % | |||||||||||
Adjusted Operating Ratio | 98.7 | % | 96.6 | % | 91.3 | % | 100.2 | % | 98.8 | % | 97.4 | % |
![]() | 21 |
December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Tractors | ||||||||
Company: | ||||||||
Owned | 6,735 | 7,442 | 6,083 | |||||
Leased – capital leases | 1,968 | 2,170 | 1,700 | |||||
Leased – operating leases | 5,234 | 5,599 | 6,099 | |||||
Total company tractors | 13,937 | 15,211 | 13,882 | |||||
Owner-operator: | ||||||||
Financed through the Company | 3,272 | 3,767 | 4,204 | |||||
Other | 1,157 | 886 | 750 | |||||
Total owner-operator tractors | 4,429 | 4,653 | 4,954 | |||||
Total tractors | 18,366 | 19,864 | 18,836 | |||||
Trailers | 64,066 | 65,233 | 61,652 | |||||
Containers | 9,131 | 9,150 | 9,150 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||
Average operational truck count (1) : | |||||||||||||||||
Company | 12,838 | 13,514 | 12,678 | 13,096 | 13,316 | 12,146 | |||||||||||
Owner-operator | 4,432 | 4,502 | 4,848 | 4,452 | 4,599 | 5,044 | |||||||||||
Total | 17,270 | 18,016 | 17,526 | 17,548 | 17,915 | 17,190 |
(1) | Includes trucks within our non-reportable segments. |
![]() | 22 |
December 31, | |||||||
2016 | 2015 | ||||||
ASSETS | (In thousands) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 89,391 | $ | 107,590 | |||
Cash and cash equivalents — restricted | 57,046 | 55,241 | |||||
Restricted investments, held to maturity, amortized cost | 22,717 | 23,215 | |||||
Accounts receivable, net | 408,593 | 422,421 | |||||
Income tax refund receivable | 206 | 11,664 | |||||
Inventories and supplies | 16,630 | 18,426 | |||||
Assets held for sale | 6,969 | 9,084 | |||||
Prepaid taxes, licenses, insurance, and other | 47,038 | 48,149 | |||||
Current portion of notes receivable | 6,961 | 9,817 | |||||
Total current assets | 655,551 | 705,607 | |||||
Property and equipment, at cost: | |||||||
Revenue and service equipment | 2,266,137 | 2,278,618 | |||||
Land | 132,084 | 131,693 | |||||
Facilities and improvements | 281,390 | 269,769 | |||||
Furniture and office equipment | 113,880 | 99,519 | |||||
Total property and equipment | 2,793,491 | 2,779,599 | |||||
Less: accumulated depreciation and amortization | (1,244,890 | ) | (1,128,499 | ) | |||
Net property and equipment | 1,548,601 | 1,651,100 | |||||
Other assets (2) | 21,953 | 26,585 | |||||
Intangible assets, net | 266,305 | 283,119 | |||||
Goodwill | 253,256 | 253,256 | |||||
Total assets | $ | 2,745,666 | $ | 2,919,667 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 115,063 | $ | 121,827 | |||
Accrued liabilities | 132,712 | 97,313 | |||||
Current portion of claims accruals | 80,866 | 84,429 | |||||
Current portion of long-term debt (1)(2) | 8,459 | 35,514 | |||||
Current portion of capital lease obligations | 72,473 | 59,794 | |||||
Total current liabilities | 409,573 | 398,877 | |||||
Revolving line of credit | 130,000 | 200,000 | |||||
Long-term debt, less current portion (1)(2) | 493,346 | 643,663 | |||||
Capital lease obligations, less current portion | 161,463 | 222,001 | |||||
Claims accruals, less current portion | 165,726 | 149,281 | |||||
Deferred income taxes | 427,722 | 463,832 | |||||
Accounts receivable securitization (2) | 279,285 | 223,927 | |||||
Other liabilities | 6,296 | 959 | |||||
Total liabilities | 2,073,411 | 2,302,540 | |||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Class A common stock | 833 | 878 | |||||
Class B common stock | 497 | 510 | |||||
Additional paid-in capital (3) | 701,065 | 754,589 | |||||
Accumulated deficit (3) | (30,242 | ) | (139,033 | ) | |||
Accumulated other comprehensive income | — | 81 | |||||
Noncontrolling interest | 102 | 102 | |||||
Total stockholders’ equity | 672,255 | 617,127 | |||||
Total liabilities and stockholders’ equity | $ | 2,745,666 | $ | 2,919,667 |
![]() | 23 |
(1) | As of December 31, 2016, the Company's long-term debt had a carrying value of $501.8 million, comprised of: |
• | $492.9 million: Term Loan A, due July 2020, net of $1.3 million deferred loan costs |
• | $8.9 million: Other |
• | $668.1 million: Term Loan A, due July 2020, net of $1.7 million deferred loan costs |
(2) | In 2016, the Company adopted Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs, which was issued by the Financial Accounting Standards Board in April 2015. Accordingly, debt issuance costs associated with the Company’s Term Loan A and accounts receivable securitization are now presented within liabilities as direct deductions from the face amount of the related debt, rather than within other assets as deferred charges. The Company retrospectively adjusted the December 31, 2015 consolidated balance sheet to align with the current period presentation by reclassifying $1.6 million, $0.1 million and $1.1 million of debt issuance costs out of "Other assets" and into "Long-term debt, less current portion," "Current portion of long-term debt" and "Accounts receivable securitization," respectively. |
(3) | The line items "Additional paid-in capital" and "Accumulated deficit" include allocation of purchase price related to the Company's repurchase and cancellation of its Class A common stock, as follows: |
• | During the year ended December 31, 2016, the Company repurchased and canceled 7.4 million shares of its Class A common stock for $117.1 million. The excess of the repurchase price over par value was allocated $76.6 million to "Additional paid-in capital" and $40.5 million to "Accumulated deficit." |
• | During the three months ended December 31, 2015, the Company repurchased and canceled 4.2 million shares of its Class A common stock for $70.0 million. The excess of the repurchase price over par value was allocated $43.4 million to "Additional paid-in capital" and $26.6 million to "Accumulated deficit." |
![]() | 24 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 149,267 | $ | 197,577 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property, equipment, and intangibles | 283,948 | 268,549 | |||||
Amortization of debt issuance costs, original issue discount, and other | 1,333 | 5,937 | |||||
Gain on disposal of property and equipment, less write-off of totaled tractors | (15,854 | ) | (30,195 | ) | |||
Impairments | 807 | 1,480 | |||||
Deferred income taxes | (36,079 | ) | 26,476 | ||||
Provision for (reduction of) losses on accounts receivable | (1,147 | ) | 8,004 | ||||
Non-cash loss on debt extinguishment and write-offs of deferred financing costs and original issue discount | — | 9,567 | |||||
Stock-based compensation expense | 6,017 | 6,525 | |||||
Excess tax benefit from stock-based compensation | (2,575 | ) | (2,147 | ) | |||
Income effect of mark-to-market adjustment of interest rate swaps | — | 87 | |||||
Increase in cash resulting from changes in: | |||||||
Accounts receivable | 14,975 | 48,574 | |||||
Inventories and supplies | 1,796 | 566 | |||||
Prepaid expenses and other current assets | 20,999 | 17,741 | |||||
Other assets | 1,171 | 7,785 | |||||
Accounts payable, and accrued and other liabilities | 41,654 | 2,972 | |||||
Net cash provided by operating activities | 466,312 | 569,498 | |||||
Cash flows from investing activities: | |||||||
Increase in cash and cash equivalents — restricted | (1,805 | ) | (9,620 | ) | |||
Proceeds from maturities of investments | 30,269 | 33,015 | |||||
Purchases of investments | (30,061 | ) | (31,930 | ) | |||
Proceeds from sale of property and equipment | 113,410 | 116,330 | |||||
Capital expenditures | (239,446 | ) | (342,615 | ) | |||
Payments received on notes receivable | 10,114 | 4,252 | |||||
Expenditures on assets held for sale | (31,027 | ) | (25,937 | ) | |||
Payments received on assets held for sale | 25,939 | 14,410 | |||||
Payments received on equipment sale receivables | — | 288 | |||||
Net cash used in investing activities | (122,607 | ) | (241,807 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of long-term debt and capital leases | (246,829 | ) | (979,816 | ) | |||
Proceeds from long-term debt | — | 684,504 | |||||
Net (repayments) borrowings on revolving line of credit | (70,000 | ) | 143,000 | ||||
Borrowings under accounts receivable securitization | 105,000 | 75,000 | |||||
Repayment of accounts receivable securitization | (50,000 | ) | (184,000 | ) | |||
Payment of deferred loan costs | — | (4,235 | ) | ||||
Proceeds from common stock issued | 14,469 | 8,167 | |||||
Repurchases of Class A common stock (1) | (117,119 | ) | (70,000 | ) | |||
Excess tax benefit from stock-based compensation | 2,575 | 2,147 | |||||
Net cash used in financing activities | (361,904 | ) | (325,233 | ) | |||
Net (decrease) increase in cash and cash equivalents | (18,199 | ) | 2,458 | ||||
Cash and cash equivalents at beginning of period | 107,590 | 105,132 | |||||
Cash and cash equivalents at end of period | $ | 89,391 | $ | 107,590 |
(1) | Refer to Note (3) to the Condensed Consolidated Balance Sheets. |
![]() | 25 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 29,150 | $ | 45,390 | |||
Income taxes | 79,250 | 78,522 | |||||
Non-cash investing activities: | |||||||
Equipment purchase accrual | $ | 11,103 | $ | 447 | |||
Notes receivable from sale of assets | 4,158 | 7,670 | |||||
Non-cash financing activities: | |||||||
Capital lease additions | $ | 12,811 | $ | 145,338 | |||
Accrued deferred loan costs | — | 105 | |||||
Insurance premium notes payable | 8,430 | 7,658 |
![]() | 26 |
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