EX-99 2 ex99.txt SLIDE PRESENTATION Exhibit 99 SLIDE 1 Swift Transportation SLIDE 2 $2.5 Billion in 2003 (Projected Revenues) SLIDE 3 Critical Components Of The Plan * Drivers * Sales * Facilities * Management Team * Capital * Information Systems SLIDE 4 Competitive Strengths * "Broken record" * Ability to recruit and train qualified drivers * Low operational cost * Motivated sales force * Terminal network promotes entrepreneurial spirit 1 SLIDE 5 Swift Game Plan 2000 No "Hail Mary" Passes, Just Simple Blocking and Tackling [Slide contains football graphics] SLIDE 6 Swift Has An Abundance of Growth Opportunities * Growth with Existing Accounts * Growth with New Accounts * Private Fleet Outsourcing * Opportunistic Acquisitions SLIDE 7 Growth In Customer Revenues 2000 vs. 1999 ------------- Top 5 Customers +26.5% 6-10 Customers +12.3% 11-15 Customer +55.6% 16-25 Customers +35.1% 26-50 Customers +37.8% Top 50 In Total +23.8% SLIDE 8 Mix of Top 50 Customers: Year 2000 Retailers: 46.2% Manufacturing 19.1% Paper Products 14.2% Grocery Products 10.7% Logistics 7.5% Building Materials 1.0% Beverage & Beverage Container 1.4% 2 SLIDE 9 Swift Provides Regional Service On A Nationwide Basis [Slide contains a map indicating the Swift terminal locations.] SLIDE 10 Swift's Terminal Network Enables . . . . * Local Market Presence * Rapid Response to Changing Customer Needs * "Core Carrier" Trucking Services to Multi-Regional and National Shippers * Enhanced Driver Recruitment and Retention * Reduced Fuel Costs * Expedited Maintenance SLIDE 11 Financial Review [Slide contains graphics of a Swift tractor-trailer.] SLIDE 12 Heating Oil Futures Dollars Per Barrel (As of February 1, 2001) 3 [Heating Oil Futures are standardized, transferable, exchange-traded contracts that require the delivery of diesel fuel at a fixed price on a specified future date. Heating Oil Futures are used by some diesel fuel purchasers as risk management vehicles to limit their exposure to future increases in the price of diesel fuel.] March 2001 $0.8224 April 2001 $0.7936 May 2001 $0.7696 June 2001 $0.7551 July 2001 $0.7486 August 2001 $0.7481 September 2001 $0.7526 October 2001 $0.7571 November 2001 $0.7616 December 2001 $0.7656 January 2002 $0.7636 February 2002 $0.7521 March 2002 $0.7286 April 2002 $0.7046 May 2002 $0.6811 June 2002 $0.6681 SLIDE 13 National Fuel Index [The National Fuel Index is a measure of the average price (in dollars per gallon) of diesel fuel in the United States. This slide contains a bar graph that illustrates fluctuations in the National Fuel Index from slightly under 1 in January 1999 to slightly below 1.6 in December 2000.] SLIDE 14 4th Quarter & Year
10-1 to 12-31, 10-1 to 12-31, 1-1 to 12-31, 1-1 to 12-31, 2000* 1999* % change 2000* 1999 % change ----- ----- -------- ----- ---- -------- Revenues $330.0 $284.3 +16.1% $1,258.7 $1,016.2 +18.6% Operating Income $20.1 $30.7 $99.7 $116.4 Net Earnings $10.1 $18.5 $52.6 $66.8 Earnings Per Share $.16 $.28 $.82 $1.02 Operating Ratio 93.9% 89.2% 92.1% 89.0%
*Unaudited 4 SLIDE 15 Revenues In Millions 23.4% Compound Annual Growth Rate 1991 $ 190 1992 $ 233 1993 $ 277 1994 $ 366 1995 $ 458 1996 $ 562 1997 $ 714 1998 $ 873 1999 $1,061 2000* $1,259 *Unaudited SLIDE 16 Revenue Growth 1990-91 21.8% 1991-92 22.6% 1992-93 18.7% 1993-94 32.1% 1994-95 25.2% 1995-96 22.7% 1996-97 26.9% 1997-98 22.4% 1998-99 21.5% 1999-2000* 18.6% *Unaudited SLIDE 17 Net Earnings In Millions 1991 $ 6.5 1992 $ 9.8 1993 $12.3 1994 $22.6 1995 $23.0 1996 $27.4 1997 $41.6 1998 $55.5 1999 $66.8 2000* $52.6 *Unaudited 5 SLIDE 18 Earnings Per Share In Dollars 1st Quarter* 1996 .04 1997 .10 1998 .14 1999 .19 2000 .17 2nd Quarter* 1996 .12 1997 .16 1998 .21 1999 .27 2000 .26 3rd Quarter* 1996 .16 1997 .20 1998 .24 1999 .29 2000 .24 4th Quarter* 1996 .15 1997 .18 1998 .25 1999 .28 2000 .16 Yearly Total 1996 .47 1997 .64 1998 .85 1999 1.02 2000* .82 *Unaudited 6 SLIDE 19 Operating Ratio As of 12/31 except as noted 1991 93.1 1992 92.2 1993 92.1 1994 88.8 1995 89.9 1996 90.5 1997 89.6 1998 88.7 1999 89.0 2000* 92.1 *Unaudited SLIDE 20 Debt To Total Capitalization As of 12/31 Except As Noted, Including Operating Line 1993 28.1% 1994 45.7% 1995 40.5% 1996 18.3% 1997 22.6% 1998 30.5% 1999 30.0% 2000* 39.6% *Unaudited SLIDE 21 Strong Financial Position In Millions As of December 31, 2000 Total Debt (Including Operating Line)* $286.6 Equity* $436.7 Total Capitalization* $723.3 Debt to Capital Ratio* 39.6% *Unaudited 7 SLIDE 22 Our Mission Our fundamental objective is to provide Total Satisfaction to our employees, customers and shareholders. Our Goal . . .Continuous Improvement SLIDE 23 Our Pillars Of Success * Customers * Employees * Safety * Equipment * Financial Stability SLIDE 24 [This slide contains graphics of a scale with a person outweighing tractor-trailers.] SLIDE 25 New Truck Orders January 1999 9,731 February 1999 26,078 March 1999 30,051 April 1999 20,312 May 1999 24,163 June 1999 26,019 July 1999 19,202 August 1999 16,450 September 1999 18,706 October 1999 17,117 November 1999 16,618 December 1999 10,956 January 2000 17,643 February 2000 13,699 March 2000 11,565 April 2000 11,500 May 2000 9,942 June 2000 14,172 July 2000 8,736 August 2000 11,850 September 2000 11,302 October 2000 9,844 November 2000 8,422 December 2000 9,902 8 SLIDE 26 Industry Challenges * Economy a. Consumer Confidence b. Disposable Income * Fuel * Drivers * Used Truck Values * Insurance SLIDE 27 [This slide contains an article written by Howard S. Abramson entitled "Trucking Faces Upheaval From Used Truck Glut, Hebe Says". The article was printed in the January 29, 2001 edition of TRANSPORT TOPICS.] SLIDE 28 [Abramson, Howard. "Trucking Faces Upheaval From Used Truck Glut, Hebe Says." TRANSPORT TOPICS. January 29, 2001. (Continued).] SLIDE 29 The Swift Advantage Industry Challenge Swift Advantage ------------------ --------------- Freight Demand growth with existing customers and cross selling MSCA Customers Used Truck Market guarantee return agreements Fuel Prices terminal fuel: $.05 to $.08 per gallon cheaper and strong surcharge program Credit Squeeze strong balance sheet Insurance significant savings for health and liability following combination with MSCA 9 SLIDE 30 Pending MSCA Merger* * Closing anticipated last of Q2 * Integration faster than expected: 1/1/02 * Revenue synergies remain intact from cross-selling and growth in international business * Cost synergies accelerated to 2002 * Transplace ownership 30% (pre-employee dilution) *Subject to conditions, including Hart-Scott-Rodino and stockholder approval SLIDE 31 State of the Industry * Tough Trucking * Record Trucking Company Failures * Expecting Depressed 1H 2001 earnings * Opportunity for Well-capitalized survivors: - Eliminate competitors - Eliminate excess capacity of trucks from market - Increase driver availability SLIDE 32 Swift Transportation 10