Highlights:
- Diluted earnings per share (EPS) of
$1.44 for the quarter - Second quarter revenue of
$1.0 billion - Quarterly operating income of
$62 million (6.0% of revenue) driven by performance of our Logistics Segment - Continued focus on return of capital with
$100 million of shares repurchased in the quarter - Exceptionally strong balance sheet, ending the quarter with cash and cash equivalents of
$342 million
“Challenging market conditions have persisted throughout 2023 that have impacted demand for our services. We are seeing the benefits of our strategy to diversify and expand into less cyclical and non-asset-based services, with our Logistics Segment contributing nearly half of our operating income in the quarter, which has helped offset softer profitability at our ITS Segment. We performed well during this year’s intermodal bid season and are providing excellent service which has positioned us to grow as inventory levels normalize and demand increases. We returned
Second Quarter 2023 Results
Consolidated revenue for the second quarter of 2023 was
Second quarter Intermodal and Transportation Solutions (“ITS”) Segment revenue was
Second quarter Logistics Segment revenue was
Capital expenditures for the second quarter of 2023 totaled
2023 Outlook
We expect our 2023 diluted earnings per share will range from
Non-GAAP Financial Measure
In this press release, we present EBITDA, a non-GAAP financial measure of profitability defined as earnings before interest, taxes, depreciation and amortization. As required by the rules of the
CONFERENCE CALL
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CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of
SOURCE:
CONTACT:
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
(in thousands, except per share amounts) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
2023 | 2022 | |||||||||||
% of | % of | |||||||||||
Amount | Revenue | Amount | Revenue | |||||||||
Operating revenue | $ | 1,040,462 | 100.0 | % | $ | 1,401,456 | 100.0 | % | ||||
Operating expenses: | ||||||||||||
Purchased transportation and warehousing | 763,609 | 73.4 | % | 1,062,983 | 75.9 | % | ||||||
Salaries and benefits | 141,823 | 13.6 | % | 129,499 | 9.2 | % | ||||||
Depreciation and amortization | 35,386 | 3.4 | % | 32,244 | 2.3 | % | ||||||
Insurance and claims | 11,676 | 1.1 | % | 10,645 | 0.8 | % | ||||||
General and administrative | 26,757 | 2.6 | % | 36,213 | 2.6 | % | ||||||
Gain on sale of assets, net | (859 | ) | -0.1 | % | (7,764 | ) | -0.6 | % | ||||
Total operating expenses | 978,392 | 94.0 | % | 1,263,820 | 90.2 | % | ||||||
Operating income | 62,070 | 6.0 | % | 137,636 | 9.8 | % | ||||||
Other income (expense): | ||||||||||||
Interest expense, net | (3,116 | ) | -0.3 | % | (1,407 | ) | -0.1 | % | ||||
Interest income | 2,087 | 0.2 | % | 5 | 0.0 | % | ||||||
Other, net | 69 | 0.0 | % | (195 | ) | -0.0 | % | |||||
Total other expense, net | (960 | ) | -0.1 | % | (1,597 | ) | -0.1 | % | ||||
Income before provision for income taxes | 61,110 | 5.9 | % | 136,039 | 9.7 | % | ||||||
Provision for income taxes | 14,605 | 1.4 | % | 33,193 | 2.4 | % | ||||||
Net income | $ | 46,505 | $ | 102,846 | ||||||||
Earnings per share | ||||||||||||
Basic | $ | 1.45 | $ | 3.06 | ||||||||
Diluted | $ | 1.44 | $ | 3.03 | ||||||||
Basic weighted average number of shares outstanding | 32,037 | 33,651 | ||||||||||
Diluted weighted average number of shares outstanding | 32,293 | 33,935 | ||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
(in thousands, except per share amounts) | ||||||||||||
(unaudited) | ||||||||||||
Six Months Ended | ||||||||||||
2023 | 2022 | |||||||||||
% of | % of | |||||||||||
Amount | Revenue | Amount | Revenue | |||||||||
Operating revenue | $ | 2,192,727 | 100.0 | % | $ | 2,699,579 | 100.0 | % | ||||
Operating expenses: | ||||||||||||
Purchased transportation and warehousing | 1,630,540 | 74.4 | % | 2,058,248 | 76.2 | % | ||||||
Salaries and benefits | 279,254 | 12.7 | % | 258,238 | 9.6 | % | ||||||
Depreciation and amortization | 70,835 | 3.2 | % | 63,533 | 2.4 | % | ||||||
Insurance and claims | 24,359 | 1.1 | % | 19,938 | 0.7 | % | ||||||
General and administrative | 52,298 | 2.4 | % | 59,435 | 2.2 | % | ||||||
Gain on sale of assets, net | (4,834 | ) | -0.2 | % | (12,509 | ) | -0.5 | % | ||||
Total operating expenses | 2,052,452 | 93.6 | % | 2,446,883 | 90.6 | % | ||||||
Operating income | 140,275 | 6.4 | % | 252,696 | 9.4 | % | ||||||
Other income (expense): | ||||||||||||
Interest expense, net | (6,086 | ) | -0.3 | % | (3,110 | ) | -0.1 | % | ||||
Interest income | 3,463 | 0.2 | % | 9 | 0.0 | % | ||||||
Other, net | 108 | 0.0 | % | (63 | ) | -0.0 | % | |||||
Total other expense, net | (2,515 | ) | -0.1 | % | (3,164 | ) | -0.1 | % | ||||
Income before provision for income taxes | 137,760 | 6.3 | % | 249,532 | 9.3 | % | ||||||
Provision for income taxes | 29,475 | 1.3 | % | 59,183 | 2.2 | % | ||||||
Net income | $ | 108,285 | $ | 190,349 | ||||||||
Earnings per share | ||||||||||||
Basic | $ | 3.35 | $ | 5.66 | ||||||||
Diluted | $ | 3.33 | $ | 5.61 | ||||||||
Basic weighted average number of shares outstanding | 32,293 | 33,647 | ||||||||||
Diluted weighted average number of shares outstanding | 32,566 | 33,950 | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share data) | ||||||||
2023 | 2022 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 342,429 | $ | 286,642 | ||||
Accounts receivable trade, net | 612,163 | 716,190 | ||||||
Accounts receivable other | 4,612 | 3,967 | ||||||
Prepaid taxes | 15,258 | 16,987 | ||||||
Prepaid expenses and other current assets | 15,445 | 32,914 | ||||||
TOTAL CURRENT ASSETS | 989,907 | 1,056,700 | ||||||
Restricted investments | 20,262 | 18,065 | ||||||
Property and equipment, net | 783,127 | 783,683 | ||||||
Right-of-use assets - operating leases | 167,681 | 102,114 | ||||||
Right-of-use assets - financing leases | 3,744 | 1,194 | ||||||
Other intangibles, net | 183,634 | 197,386 | ||||||
629,407 | 629,402 | |||||||
Other assets | 22,280 | 21,537 | ||||||
TOTAL ASSETS | $ | 2,800,042 | $ | 2,810,081 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable trade | $ | 293,005 | $ | 344,751 | ||||
Accounts payable other | 12,213 | 15,563 | ||||||
Accrued payroll | 23,292 | 66,669 | ||||||
Accrued other | 128,825 | 132,324 | ||||||
Lease liability - operating leases | 35,687 | 29,547 | ||||||
Lease liability - financing leases | 2,365 | 1,175 | ||||||
Current portion of long term debt | 98,350 | 101,741 | ||||||
TOTAL CURRENT LIABILITIES | 593,737 | 691,770 | ||||||
Long term debt | 238,213 | 240,724 | ||||||
Non-current liabilities | 48,832 | 43,505 | ||||||
Lease liability - operating leases | 141,450 | 78,557 | ||||||
Lease liability - financing leases | 1,288 | - | ||||||
Deferred taxes | 165,786 | 155,923 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred stock, | ||||||||
no shares issued or outstanding in 2023 and 2022. | - | - | ||||||
Common stock | ||||||||
Class A: | ||||||||
shares issued in both 2023 and 2022; 31,402,008 shares outstanding | ||||||||
in 2023 and 32,646,621 shares outstanding in 2022. | 413 | 413 | ||||||
Class B: | ||||||||
574,903 shares issued and outstanding in both 2023 and 2022. | 6 | 6 | ||||||
Additional paid-in capital | 214,356 | 208,165 | ||||||
Purchase price in excess of predecessor basis, net of tax | ||||||||
benefit of | (15,458 | ) | (15,458 | ) | ||||
Retained earnings | 1,889,867 | 1,781,582 | ||||||
Accumulated other comprehensive loss | (136 | ) | (214 | ) | ||||
and 8,665,564 shares in 2022 | (478,312 | ) | (374,892 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 1,610,736 | 1,599,602 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,800,042 | $ | 2,810,081 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Six Months Ended | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 108,285 | $ | 190,349 | ||||
Adjustments to reconcile net income | ||||||||
to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 91,474 | 71,922 | ||||||
Impairment of right-of-use asset | 2,012 | - | ||||||
Deferred taxes | 10,837 | 3,279 | ||||||
Compensation expense related to share-based compensation plans | 10,615 | 10,237 | ||||||
Gain on sale of assets, net | (4,834 | ) | (12,509 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Restricted investments | (2,197 | ) | 5,200 | |||||
Accounts receivable, net | 103,270 | (93,767 | ) | |||||
Prepaid taxes | 1,729 | (2,166 | ) | |||||
Prepaid expenses and other current assets | 17,469 | 9,664 | ||||||
Other assets | (1,899 | ) | (2,517 | ) | ||||
Accounts payable | (55,085 | ) | 3,380 | |||||
Accrued expenses | (47,700 | ) | 23,251 | |||||
Non-current liabilities | (12,595 | ) | (5,588 | ) | ||||
Net cash provided by operating activities | 221,381 | 200,735 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of equipment | 15,135 | 18,584 | ||||||
Purchases of property and equipment | (65,635 | ) | (85,942 | ) | ||||
Acquisitions, net of cash acquired | 108 | - | ||||||
Net cash used in investing activities | (50,392 | ) | (67,358 | ) | ||||
Cash flows from financing activities: | ||||||||
Purchase of treasury stock | (100,026 | ) | - | |||||
Repayments of long term debt | (56,191 | ) | (54,114 | ) | ||||
Stock withheld for payments of withholding taxes | (7,818 | ) | (5,715 | ) | ||||
Finance lease payments | (1,501 | ) | (1,059 | ) | ||||
Proceeds from issuance of debt | 50,289 | 66,194 | ||||||
Net cash (used in) provided by financing activities | (115,247 | ) | 5,306 | |||||
Effect of exchange rate changes on cash and cash equivalents | 45 | 9 | ||||||
Net increase in cash and cash equivalents | 55,787 | 138,692 | ||||||
Cash and cash equivalents beginning of period | 286,642 | 159,784 | ||||||
Cash and cash equivalents end of period | $ | 342,429 | $ | 298,476 | ||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Ended | Ended | ||||||||||||||
Operating Revenue | 2023 | 2022 | 2023 | 2022 | |||||||||||
Intermodal and Transportation Solutions | $ | 614,632 | $ | 875,150 | $ | 1,323,881 | $ | 1,651,720 | |||||||
Logistics | 453,549 | 548,613 | 922,690 | 1,089,597 | |||||||||||
Inter-segment eliminations | (27,719 | ) | (22,307 | ) | (53,844 | ) | (41,738 | ) | |||||||
Total operating revenue | $ | 1,040,462 | $ | 1,401,456 | $ | 2,192,727 | $ | 2,699,579 | |||||||
Three Months | Six Months | ||||||||||||||
Ended | Ended | ||||||||||||||
Operating Income | 2023 | 2022 | 2023 | 2022 | |||||||||||
Intermodal and Transportation Solutions | $ | 31,777 | $ | 100,601 | $ | 80,981 | $ | 186,297 | |||||||
Logistics | 30,293 | 37,035 | 59,294 | 66,399 | |||||||||||
Total operating income | $ | 62,070 | $ | 137,636 | $ | 140,275 | $ | 252,696 | |||||||
Three Months | Six Months | ||||||||||||||
Ended | Ended | ||||||||||||||
Depreciation and Amortization | 2023 | 2022 | 2023 | 2022 | |||||||||||
Intermodal and Transportation Solutions | $ | 27,117 | $ | 25,383 | $ | 54,003 | $ | 49,758 | |||||||
Logistics | 8,269 | 6,861 | 16,832 | 13,775 | |||||||||||
Total depreciation and amortization | $ | 35,386 | $ | 32,244 | $ | 70,835 | $ | 63,533 | |||||||
RECONCILIATION OF NET INCOME TO EBITDA (1) | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Ended | Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net Income | $ | 46,505 | $ | 102,846 | $ | 108,285 | $ | 190,349 | |||||||
Interest Expense, net | 1,029 | 1,402 | 2,623 | 3,101 | |||||||||||
Depreciation and Amortization | 45,664 | 36,729 | 91,474 | 71,922 | |||||||||||
Provision for Income Taxes | 14,605 | 33,193 | 29,475 | 59,183 | |||||||||||
EBITDA | $ | 107,803 | $ | 174,170 | $ | 231,857 | $ | 324,555 | |||||||
(1) See the “Non-GAAP Financial Measure” section of this release for the definition of EBITDA and a discussion of this non-GAAP financial measure.
Source:
2023 GlobeNewswire, Inc., source