Arizona
|
001-32396
|
86-0649974
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
20002 North 19th Avenue, Phoenix, AZ
|
85027
|
(Address of principal executive offices)
|
(Zip Code)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
|
|
[ ]
|
Emerging growth company
|
[ ]
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|
On Wednesday, July 26, 2017, Knight Transportation, Inc., an Arizona corporation (the "Company"), issued a press release (the "Press Release") announcing its financial results for the quarter ended June 30, 2017. A copy of the Press Release is attached to this report as Exhibit 99.
|
||
|
||
Item 9.01
|
Financial Statements and Exhibits.
|
|
(d)
|
Exhibits.
|
|
EXHIBIT
NUMBER
|
EXHIBIT DESCRIPTION
|
|
Knight Transportation, Inc. press release announcing financial results for the quarter ended June 30, 2017
|
||
The information contained in this report (including Items 2.02 and 9.01) and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
|
||
The information in this report and the exhibit hereto may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements are made based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to the paragraph following the financial and operating information in the attached press release and various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission for information concerning risks, uncertainties, and other factors that may affect future results.
|
KNIGHT TRANSPORTATION, INC.
|
||
Date: July 26, 2017
|
By:
|
/s/ Adam W. Miller |
Adam W. Miller
|
||
Chief Financial Officer
|
EXHIBIT
NUMBER
|
EXHIBIT DESCRIPTION
|
|
Knight Transportation, Inc. press release announcing financial results for the quarter ended June 30, 2017
|
(dollars in thousands, except per share data)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2017
|
2016
|
Chg
|
2017
|
2016
|
Chg
|
||||||||||||||||||
Total Revenue
|
$
|
273,243
|
$
|
276,318
|
-1.1
|
%
|
$
|
544,425
|
$
|
548,406
|
-0.7
|
%
|
||||||||||||
Revenue, excluding trucking fuel surcharge
|
$
|
247,022
|
$
|
253,859
|
-2.7
|
%
|
$
|
492,002
|
$
|
507,442
|
-3.0
|
%
|
||||||||||||
Operating Income
|
$
|
28,410
|
$
|
38,081
|
-25.4
|
%
|
$
|
51,048
|
$
|
76,808
|
-33.5
|
%
|
||||||||||||
Adjusted Operating Income(1)
|
$
|
32,588
|
$
|
38,081
|
-14.4
|
%
|
$
|
55,226
|
$
|
76,808
|
-28.1
|
%
|
||||||||||||
Net Income attributable to Knight
|
$
|
17,970
|
$
|
24,918
|
*
|
-27.9
|
%
|
$
|
32,847
|
$
|
47,935
|
*
|
-31.5
|
%
|
||||||||||
Adjusted Net Income, attributable to Knight(2)
|
$
|
20,577
|
$
|
24,918
|
*
|
-17.4
|
%
|
$
|
35,454
|
$
|
47,935
|
*
|
-26.0
|
%
|
||||||||||
Earnings per diluted share
|
$
|
0.22
|
$
|
0.31
|
-28.3
|
%
|
$
|
0.40
|
$
|
0.59
|
-31.6
|
%
|
||||||||||||
Adjusted earnings per diluted share(2)
|
$
|
0.25
|
$
|
0.31
|
-17.8
|
%
|
$
|
0.44
|
$
|
0.59
|
-26.1
|
%
|
||||||||||||
|
||||||||||||||||||||||||
* The second quarter and first six months of 2016 was recast to reflect the impact of the Company’s adoption of ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting, to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences. The standard was early adopted in the fourth quarter of 2016, and impacted the income statement by reducing the income tax expense, while reducing additional paid-in capital in the balance sheet for all periods of 2016.
|
(dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2017
|
2016
|
Chg
|
2017
|
2016
|
Chg
|
||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||
Revenue, excluding trucking fuel surcharge
|
$
|
247,022
|
$
|
253,859
|
-2.7
|
%
|
$
|
492,002
|
$
|
507,442
|
-3.0
|
%
|
||||||||||||
Operating Income
|
$
|
28,410
|
$
|
38,081
|
-25.4
|
%
|
$
|
51,048
|
$
|
76,808
|
-33.5
|
%
|
||||||||||||
Adjusted Operating Income(1)
|
$
|
32,588
|
$
|
38,081
|
-14.4
|
%
|
$
|
55,226
|
$
|
76,808
|
-28.1
|
%
|
||||||||||||
Adjusted Operating Ratio(1)
|
86.8
|
%
|
85.0
|
%
|
180 bps
|
88.8
|
%
|
84.9
|
%
|
390 bps
|
||||||||||||||
|
||||||||||||||||||||||||
Trucking Segment
|
||||||||||||||||||||||||
Revenue, excluding trucking fuel surcharge
|
$
|
194,049
|
$
|
203,930
|
-4.8
|
%
|
$
|
386,509
|
$
|
403,343
|
-4.2
|
%
|
||||||||||||
Operating Income
|
$
|
25,762
|
$
|
35,286
|
-27.0
|
%
|
$
|
46,022
|
$
|
71,208
|
-35.4
|
%
|
||||||||||||
Adjusted Operating Income(3)
|
$
|
29,940
|
$
|
35,286
|
-15.2
|
%
|
$
|
50,200
|
$
|
71,208
|
-29.5
|
%
|
||||||||||||
Adjusted Operating Ratio(3)
|
84.6
|
%
|
82.7
|
%
|
190 bps
|
87.0
|
%
|
82.3
|
%
|
470 bps
|
||||||||||||||
|
||||||||||||||||||||||||
Logistics Segment
|
||||||||||||||||||||||||
Revenue
|
$
|
52,973
|
$
|
49,929
|
6.1
|
%
|
$
|
105,493
|
$
|
104,099
|
1.3
|
%
|
||||||||||||
Operating Income
|
$
|
2,648
|
$
|
2,795
|
-5.3
|
%
|
$
|
5,026
|
$
|
5,600
|
-10.3
|
%
|
||||||||||||
Operating Ratio
|
95.0
|
%
|
94.4
|
%
|
60 bps
|
95.2
|
%
|
94.6
|
%
|
60 bps
|
INCOME STATEMENT DATA:
|
||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Unaudited, in thousands, except per share amounts)
|
||||||||||||||||
REVENUE:
|
||||||||||||||||
Revenue, before fuel surcharge
|
$
|
247,022
|
$
|
253,859
|
$
|
492,002
|
$
|
507,442
|
||||||||
Fuel surcharge
|
26,221
|
22,459
|
52,423
|
40,964
|
||||||||||||
TOTAL REVENUE
|
273,243
|
276,318
|
544,425
|
548,406
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Salaries, wages and benefits
|
79,944
|
84,440
|
162,454
|
168,043
|
||||||||||||
Fuel expense - gross
|
33,719
|
33,429
|
68,952
|
60,200
|
||||||||||||
Operations and maintenance
|
20,596
|
19,094
|
41,249
|
37,104
|
||||||||||||
Insurance and claims
|
8,294
|
8,257
|
16,865
|
17,080
|
||||||||||||
Operating taxes and licenses
|
4,615
|
4,612
|
9,046
|
10,099
|
||||||||||||
Communications
|
1,018
|
1,043
|
2,204
|
2,248
|
||||||||||||
Depreciation and amortization
|
29,371
|
28,955
|
59,053
|
57,357
|
||||||||||||
Purchased transportation
|
58,299
|
53,918
|
116,924
|
111,703
|
||||||||||||
Miscellaneous operating expenses
|
4,799
|
4,489
|
12,452
|
7,764
|
||||||||||||
Merger-related costs
|
4,178
|
-
|
4,178
|
-
|
||||||||||||
Total operating expenses
|
244,833
|
238,237
|
493,377
|
471,598
|
||||||||||||
Income from operations
|
28,410
|
38,081
|
51,048
|
76,808
|
||||||||||||
Interest income
|
130
|
82
|
189
|
176
|
||||||||||||
Interest expense
|
(54
|
)
|
(258
|
)
|
(136
|
)
|
(559
|
)
|
||||||||
Other income
|
601
|
1,927
|
1,322
|
3,213
|
||||||||||||
Income before income taxes
|
29,087
|
39,832
|
52,423
|
79,638
|
||||||||||||
INCOME TAXES
|
10,828
|
14,618
|
*
|
19,058
|
30,955
|
*
|
||||||||||
Net income
|
18,259
|
25,214
|
*
|
33,365
|
48,683
|
*
|
||||||||||
Net income attributable to noncontrolling interest
|
(289
|
)
|
(296
|
)
|
(518
|
)
|
(748
|
)
|
||||||||
NET INCOME ATTRIBUTABLE TO KNIGHT TRANSPORTATION
|
$
|
17,970
|
$
|
24,918
|
*
|
$
|
32,847
|
$
|
47,935
|
*
|
||||||
Basic Earnings Per Share
|
$
|
0.22
|
$
|
0.31
|
$
|
0.41
|
$
|
0.60
|
||||||||
Diluted Earnings Per Share
|
$
|
0.22
|
$
|
0.31
|
$
|
0.40
|
$
|
0.59
|
||||||||
Weighted Average Shares Outstanding - Basic
|
80,520
|
80,105
|
80,416
|
80,407
|
||||||||||||
Weighted Average Shares Outstanding - Diluted
|
81,349
|
80,983
|
81,276
|
81,191
|
BALANCE SHEET DATA:
|
||||||||
06/30/17
|
12/31/16
|
|||||||
ASSETS
|
(Unaudited, in thousands)
|
|||||||
Cash and cash equivalents
|
$
|
88,706
|
$
|
8,021
|
||||
Trade receivables, net of allowance for doubtful accounts
|
127,252
|
142,167
|
||||||
Notes receivable, net of allowance for doubtful accounts
|
646
|
560
|
||||||
Prepaid expenses
|
11,703
|
13,244
|
||||||
Assets held for sale
|
13,845
|
9,634
|
||||||
Other current assets
|
8,208
|
8,159
|
||||||
Income Tax Receivable
|
11,280
|
8,406
|
||||||
Total Current Assets
|
261,640
|
190,191
|
||||||
Property and equipment, net
|
759,896
|
802,858
|
||||||
Notes receivable, long-term
|
2,618
|
3,047
|
||||||
Goodwill
|
47,021
|
47,031
|
||||||
Intangible Assets, net
|
2,325
|
2,575
|
||||||
Other assets and restricted cash
|
25,908
|
32,823
|
||||||
Total Long-term Assets
|
837,768
|
888,334
|
||||||
Total Assets
|
$
|
1,099,408
|
$
|
1,078,525
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Accounts payable
|
$
|
12,775
|
$
|
18,006
|
||||
Accrued payroll and purchased transportation
|
27,008
|
25,017
|
||||||
Accrued liabilities
|
21,429
|
16,722
|
||||||
Claims accrual - current portion
|
19,905
|
18,633
|
||||||
Dividend payable - current portion
|
287
|
272
|
||||||
Total Current Liabilities
|
81,404
|
78,650
|
||||||
Claims accrual - long-term portion
|
14,167
|
13,290
|
||||||
Long-term dividend payable and other liabilities
|
1,781
|
1,854
|
||||||
Deferred tax liabilities
|
183,518
|
178,000
|
||||||
Long-term debt
|
-
|
18,000
|
||||||
Total Long-term Liabilities
|
199,466
|
211,144
|
||||||
Total Liabilities
|
280,870
|
289,794
|
||||||
Common stock
|
806
|
802
|
||||||
Additional paid-in capital
|
231,551
|
223,267
|
||||||
Retained earnings
|
583,988
|
562,404
|
||||||
Total Knight Transportation Shareholders' Equity
|
816,345
|
786,473
|
||||||
Noncontrolling interest
|
2,193
|
2,258
|
||||||
Total Shareholders' Equity
|
818,538
|
788,731
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,099,408
|
$
|
1,078,525
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
OPERATING STATISTICS
|
||||||||||||||||||||||||
Average Revenue Per Tractor**
|
$
|
42,176
|
$
|
43,414
|
-2.9
|
%
|
$
|
83,335
|
$
|
85,943
|
-3.0
|
%
|
||||||||||||
Non-paid Empty Mile Percent
|
12.5
|
%
|
12.3
|
%
|
1.6
|
%
|
12.5
|
%
|
12.5
|
%
|
0.0
|
%
|
||||||||||||
Average Length of Haul
|
488
|
505
|
-3.4
|
%
|
493
|
500
|
-1.4
|
%
|
||||||||||||||||
Adjusted Operating Ratio (1)
|
86.8
|
%
|
85.0
|
%
|
88.8
|
%
|
84.9
|
%
|
||||||||||||||||
Average Tractors - Total
|
4,601
|
4,697
|
4,638
|
4,693
|
||||||||||||||||||||
Average Trailers - Total
|
12,310
|
12,289
|
12,377
|
12,128
|
||||||||||||||||||||
Net Capital Expenditures (in thousands)
|
$
|
11,013
|
$
|
23,678
|
$
|
22,588
|
$
|
35,396
|
||||||||||||||||
Cash Flow From Operations (in thousands)
|
$
|
52,207
|
$
|
66,183
|
*
|
|
$
|
117,691
|
$
|
135,558
|
*
|
|
||||||||||||
* Recast to reflect the impact of the Company’s adoption of ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting, to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences. The standard was early adopted in the fourth quarter of 2016, and impacted the income statement by reducing the income tax expense and therefore net income, while reducing additional paid-in capital in the balance sheet for all periods of 2016.
|
||||||||||||||||||||||||
** Includes trucking segment revenue excluding fuel surcharge.
|
GAAP to Non-GAAP Reconciliation Schedules:
|
(1)
|
Non-GAAP reconciliation
|
||||||||||||||||||
Adjusted operating income, operating ratio, and adjusted operating ratio reconciliation (a)
|
||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||||
(Unaudited, in thousands)
|
||||||||||||||||||
Total revenue
|
$
|
273,243
|
$
|
276,318
|
$
|
544,425
|
$
|
548,406
|
||||||||||
Less: Trucking fuel surcharge
|
26,221
|
22,459
|
52,423
|
40,964
|
||||||||||||||
Revenue, excluding trucking fuel surcharge
|
$
|
247,022
|
$
|
253,859
|
$
|
492,002
|
$
|
507,442
|
||||||||||
Operating expense
|
244,833
|
238,237
|
493,377
|
471,598
|
||||||||||||||
Adjusted for:
|
||||||||||||||||||
Trucking fuel surcharge
|
(26,221
|
)
|
(22,459
|
)
|
(52,423
|
)
|
(40,964
|
)
|
||||||||||
Merger-related costs(b)
|
(4,178
|
)
|
-
|
(4,178
|
)
|
-
|
||||||||||||
Adjusted operating expenses
|
214,434
|
215,778
|
436,776
|
430,634
|
||||||||||||||
Adjusted operating income
|
$
|
32,588
|
$
|
38,081
|
$
|
55,226
|
$
|
76,808
|
||||||||||
Operating ratio
|
89.6
|
%
|
86.2
|
%
|
90.6
|
%
|
86.0
|
%
|
||||||||||
Adjusted operating ratio
|
86.8
|
%
|
85.0
|
%
|
88.8
|
%
|
84.9
|
%
|
||||||||||
Non-GAAP reconciliation
|
||||||||||||||||
Adjusted net income attributable to Knight and adjusted earnings per diluted share reconciliation:
|
||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Unaudited, in thousands, except per share amounts)
|
||||||||||||||||
Net Income attributable to Knight
|
$
|
17,970
|
$
|
24,918
|
$
|
32,847
|
$
|
47,935
|
||||||||
Adjusted for:
|
||||||||||||||||
Merger-related costs (net of tax)(b)
|
2,607
|
-
|
2,607
|
-
|
||||||||||||
Adjusted net income attributable to Knight
|
$
|
20,577
|
$
|
24,918
|
$
|
35,454
|
$
|
47,935
|
||||||||
Weighted Average Shares Outstanding - Diluted
|
81,349
|
80,983
|
81,276
|
81,191
|
||||||||||||
Earnings per diluted share
|
$
|
0.22
|
$
|
0.31
|
$
|
0.40
|
$
|
0.59
|
||||||||
Adjusted for:
|
||||||||||||||||
Merger-related costs(b)
|
0.03
|
-
|
$
|
0.03
|
-
|
|||||||||||
Adjusted earnings per diluted share
|
$
|
0.25
|
$
|
0.31
|
$
|
0.44
|
$
|
0.59
|
||||||||
Non-GAAP reconciliation
|
||||||||||||||||
Operating ratio and adjusted operating ratio for trucking segment (a)
|
||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Unaudited, in thousands)
|
||||||||||||||||
Trucking
|
||||||||||||||||
Total revenue
|
$
|
220,270
|
$
|
226,389
|
$
|
438,932
|
$
|
444,307
|
||||||||
Less: Trucking fuel surcharge
|
26,221
|
22,459
|
52,423
|
40,964
|
||||||||||||
Revenue, excluding trucking fuel surcharge
|
$
|
194,049
|
$
|
203,930
|
$
|
386,509
|
$
|
403,343
|
||||||||
Operating expense
|
194,508
|
191,103
|
392,910
|
373,099
|
||||||||||||
Adjusted for:
|
||||||||||||||||
Trucking fuel surcharge
|
(26,221
|
)
|
(22,459
|
)
|
(52,423
|
)
|
(40,964
|
)
|
||||||||
Merger-related costs(b)
|
(4,178
|
)
|
-
|
(4,178
|
)
|
-
|
||||||||||
Adjusted operating expenses
|
164,109
|
168,644
|
336,309
|
332,135
|
||||||||||||
Adjusted operating income
|
$
|
29,940
|
$
|
35,286
|
$
|
50,200
|
$
|
71,208
|
||||||||
Operating ratio
|
88.3
|
%
|
84.4
|
%
|
89.5
|
%
|
84.0
|
%
|
||||||||
Adjusted operating ratio
|
84.6
|
%
|
82.7
|
%
|
87.0
|
%
|
82.3
|
%
|
||||||||
(a) Adjusted operating ratio as reported in this press release is based upon total operating expenses, net of fuel surcharge, as a percentage of revenue before fuel surcharge. We measure our revenue, before fuel surcharge, and our operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period.
|
||||||
(b) During the second quarter of 2017, we recorded approximately $4.2 million of direct and incremental costs ($2.6 million after-tax) related to the proposed merger with Swift. These costs were primarily incurred for legal and professional fees associated with the transaction.
|