Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K (SECOND QUARTER 2017 EARNINGS RELEASE) - KNIGHT TRANSPORTATION INC | form8k.htm |
Exhibit 99
July 26, 2017
Phoenix, Arizona
Knight Transportation Reports Second Quarter 2017 Revenue and Earnings
Knight Transportation, Inc. (NYSE: KNX), one of North America’s largest and most diversified truckload transportation companies, today reported revenue and net income for the second quarter ended June 30, 2017.
Key financial highlights for the second quarter and first six months of 2017 and 2016 were as follows:
|
(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.
|
||||||||||||||||||||||||
The company previously announced a quarterly cash dividend of $0.06 per share to shareholders of record on June 2, 2017, which was paid on June 23, 2017.
Dave Jackson, President and Chief Executive Officer, commented on the quarter, “The freight environment began to show signs of improvement as we experienced more non-contract opportunities during the second quarter of 2017 as compared to the same quarter last year. Our revenue per loaded mile increased slightly year over year, which marks the first year over year improvement since the third quarter of 2015. The 2017 bid season has been competitive, similar to 2016, however, we expect the recent capacity tightness and non-contract pricing strength to lead to an improved rate environment. This quarter our tractor utilization was negatively impacted by a 3.4% decline in average length of haul and a difficult experienced driver recruiting market. We expect these challenges to continue into the third quarter, however, our leadership remains focused on improving the productivity of our assets, expanding our brokerage business, and enhancing our cost control measures.
“Our diluted earnings per share for the second quarter were $0.22, which includes $4.2 million ($2.6 million after-tax) of expenses related to the pending merger with Swift Transportation. Excluding the merger-related expenses, our diluted earnings per share for the second quarter were $0.25, which compares to $0.31 per diluted share in the second quarter of 2016. A number of factors impacted our results on a year over year basis. The decline in our miles per tractor negatively impacted our results by $0.02 per diluted share. An increase in driver payroll expenses negatively impacted our results by approximately $0.02 per diluted share, while lower gain on sale and other income year over year also negatively impacted our results by approximately $0.02.”
The following chart reflects our consolidated financial performance and that of our trucking and our logistics segments for the second quarter and first six months of 2017 and 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
|
||||||||||||||
In the second quarter, the trucking segment achieved an adjusted operating ratio of 84.6% compared to 82.7% for the same quarter last year. The operating ratio was negatively impacted by a decrease in revenue per tractor, excluding fuel surcharge, of 2.9%, year over year, attributable to a 0.3% increase in average revenue per loaded mile, a 3.0% decrease in average miles per tractor, and a 20 basis point increase in our non-paid empty mile percentage. Driver related costs and lower gain on sale continue to present cost headwinds. We remain focused on developing our freight network and improving the productivity of our assets.
Our logistics segment consists of brokerage, intermodal, and other logistics services. During the second quarter of 2017, the logistics segment increased revenue 6.1% and produced an operating ratio of 95.0% compared to 94.4% for the same quarter last year. Brokerage revenue increased 12.1% in the second quarter of 2017 when compared to the same quarter last year as load volume increased 12.4%. The gross margin percentage decreased to 14.3% in the current quarter compared to 16.8% in the same quarter last year. We plan to continue to invest in our logistics service offerings, which should continue to improve our return on capital compared with asset-based operations.
The used equipment market remained soft during the quarter and resulted in $0.8 million of gain on sale of revenue equipment in the second quarter of 2017, compared to $2.7 million in the same quarter of 2016. The average age of our tractor fleet is 2.6 years, which has increased from 1.8 years in the second quarter of 2016. With rising new equipment prices and a weak used equipment market, we extended the expected trade cycle of our tractors and reduced our average tractor count by 2.0% when compared to the second quarter of 2016. Managing our fleet size and age, and resulting capital investments in the trucking segment, will continue to be part of our strategy to maintain investment returns as much as possible through fluctuations in the supply-demand environment.
Over the last twelve months ended June 30, 2017, we have returned $22.9 million to our shareholders in the form of quarterly dividends and stock repurchases. We ended the quarter with $88.7 million of cash and cash equivalents, no long-term debt, and $816.3 million of shareholders' equity. Our net capital expenditures during the second quarter were $11.0 million, while our cash flow from operations was $52.2 million.
The company will hold a conference call on July 26, 2017, at 4:30 PM EDT, to further discuss its results of operations for the quarter ended June 30, 2017. The dial in number for this conference call is 1-855-733-9163. Slides to accompany this call will be posted on the company’s website and will be available to download prior to the scheduled conference time. To view the presentation, please visit http://investor.knighttrans.com/events, “Second Quarter 2017 Conference Call Presentation.”
Adjusted operating ratio is a non-GAAP financial measure and is not intended to replace financial measures calculated in accordance with GAAP. This non-GAAP financial measure supplements our GAAP results in evaluating certain parts of our business. We believe that using this measure affords a more consistent basis for comparing our results of operations from period to period. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP, is included in the tables at the end of this press release.
Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services using a nationwide network of business units and service centers in the U.S. to serve customers throughout North America. In addition to operating one of the country’s largest tractor fleets, Knight also contracts with third-party equipment providers to provide a broad range of truckload services to its customers while creating quality driving jobs for our driving associates and successful business opportunities for independent contractors.
|
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
|
%
|
||||||||||
(2)
|
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
|
||||||||
(3)
|
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.
|
||||||
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements generally may be identified by their use of terms or phrases such as "expects," "estimates," "anticipates," "projects," "believes," "plans," "intends," "may," "will," "should," "could," "potential," "continue," "future," and terms or phrases of similar substance. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Accordingly, actual results may differ from those set forth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by the Company in its press releases, stockholder reports, Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
Contact: David A. Jackson, President and CEO, or Adam W. Miller, CFO at (602) 606-6315