Schneider National, Inc. Announces Fourth Quarter 2021 Results

• Operating Revenues $1.6 billion; $1.3 billion in 2020
• Income from Operations $178.0 million; Adjusted Income from Operations $177.0 million
• Diluted Earnings Per Share $0.75; Adjusted Diluted Earnings Per Share $0.76
• Full year 2022 Net Capital Expenditure guidance of approximately $450 million
• Full year 2022 Adjusted Diluted Earnings per Share guidance of $2.35 – $2.55

GREEN BAY, Wis.–(BUSINESS WIRE)–Schneider National, Inc. (NYSE: SNDR, “Schneider” or the “Company”), a leading transportation and logistics services company, today announced results for the fourth quarter and year ended December 31, 2021.

“Our enterprise achieved record earnings of over $530 million in 2021,” said Mark Rourke, Chief Executive Officer and President of Schneider. “These results are a direct reflection of our strategic initiatives to grow across our portfolio, with an emphasis on dedicated, intermodal, and logistics. Dynamic network management, new business wins in dedicated, growth in our intermodal container fleet, and increased leverage of the Schneider FreightPower® platform were all contributors to meaningful margin expansion in the quarter and the year. I am deeply grateful to all of our associates, especially our professional driver community, for their ongoing efforts to advance our strategies.”

“On December 31, 2021, we acquired 100% of the equity interest in Midwest Logistics Systems, Ltd. (MLS), a leading dedicated carrier in the central United States. With the acquisition of MLS, we are on track to generate $1 billion in dedicated revenues.”

“As we look ahead, we anticipate that the supply and demand conditions experienced in 2021 will extend well into 2022,” Rourke commented. “We expect continued capital allocation toward both organic and inorganic growth opportunities to further differentiate our platform.”

Results of Operations (unaudited)

The following table summarizes the Company’s results of operations for the periods indicated. Our results of operations do not include activity related to MLS as the acquisition was effective at the end of the day on December 31, 2021.

Enterprise Results

At December 31, 2021, the Company had a total of $270.3 million outstanding on various debt instruments compared to $307.0 million as of December 31, 2020. At December 31, 2021, the Company had cash and cash equivalents of $244.8 million compared to $395.5 million at December 31, 2020.

In October 2021, the Company’s Board of Directors declared a $0.07 dividend payable to shareholders of record as of December 10, 2021. This dividend was paid on January 10, 2022. On January 24, 2022, the Company’s Board of Directors declared an $0.08 dividend payable to shareholders of record as of March 11, 2022, expected to be paid on April 8, 2022.

Results of Operations – Reportable Segments

Truckload

Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2021 were $523.6 million, an increase of $53.3 million, or 11%, compared to the same quarter in 2020, primarily due to effective revenue and network management and new dedicated business, partially offset by a lower Truckload network fleet count and a decrease in miles per tractor due to industry-wide capacity and supply chain constraints. Truckload revenue per truck per week was $4,521, an increase of 18% compared to the same quarter in 2020.

Truckload income from operations was $87.7 million in the fourth quarter of 2021, an increase of $22.6 million, or 35%, compared to the same quarter in 2020. Effective revenue and network management were partially offset by lower utilization and higher driver and related costs. Truckload segment operating ratio was 83.3% in the fourth quarter of 2021, compared to 86.2% in the fourth quarter of 2020.

Intermodal

Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2021 were $317.6 million, an increase of $48.3 million, or 18%, compared to the same quarter in 2020 primarily due to increased revenue per order. Revenue per order was $2,772, a 20% improvement compared to the fourth quarter of 2020. The Company grew its container fleet by 3,300 units, or 15%, in 2021 to end the year with over 25,000 containers.

Intermodal income from operations for the fourth quarter of 2021 was $54.6 million, an increase of $29.9 million, or 121%, compared to the same quarter in 2020, primarily driven by strong revenue management and network execution. Intermodal operating ratio was 82.8% in the fourth quarter of 2021, compared to 90.8% in the fourth quarter of 2020.

Logistics

Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2021 were $547.5 million, an increase of $173.1 million, or 46%, compared to the same quarter in 2020 due in part to growth of the Schneider FreightPower® platform and its agility in a dislocated freight market. Brokerage volumes grew 23% year over year.

Logistics income from operations for the fourth quarter of 2021 was $37.4 million, an increase of $15.8 million, or 73%, compared to the same quarter in 2020, primarily due to volume growth and technology-optimized net revenue management. Logistics operating ratio was 93.2% in the fourth quarter of 2021, compared to 94.2% in the fourth quarter of 2020.

Business Outlook

“In 2022, we anticipate continued excess demand conditions with gradual supply chain improvement as the year progresses,” Rourke commented. “We will continue to invest in our drivers and technology, reduce our tractor age of fleet, and support our strategic initiatives to grow dedicated, intermodal, and logistics. Based on these and other market expectations, our guidance for full year 2022 adjusted diluted EPS is $2.35 – $2.55, which includes MLS. We expect a full-year effective tax rate of approximately 25%, and our net capital expenditures guidance for full year 2022 is approximately $450 million.”

Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures, including revenues (excluding fuel surcharge), adjusted income from operations, adjusted operating ratio, adjusted net income, and adjusted diluted earnings per share. Management believes the use of non-GAAP measures assists investors in understanding the business, as further described below. The non-GAAP information provided is used by Company management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of results as reported under GAAP.

A reconciliation of net income per share to adjusted diluted earnings per share as projected for 2022 is not provided. Schneider does not forecast net income per share as the Company cannot, without unreasonable effort, estimate or predict with certainty various components of net income. The components of net income that cannot be predicted include expenses for items that do not relate to core operating performance, such as costs related to potential future acquisitions, as well as the related tax impact of these items. Further, in the future, other items with similar characteristics to those currently included in adjusted net income, that have a similar impact on the comparability of periods, and which are not known at this time may exist and impact adjusted net income.

About Schneider National, Inc.

We are one of the largest providers of surface transportation and logistics solutions in North America. Schneider National, Inc. is a publicly held holding company that, together with our wholly owned subsidiaries, provides safe, reliable, and innovative truckload, intermodal, and logistics services to a diverse group of customers throughout the continental United States and Mexico. Unless otherwise indicated by the context, “we,” “us,” “our,” “ours,” the “Company,” and “Schneider” refer to Schneider National, Inc. and its consolidated subsidiaries. We were founded in 1935 and have been a publicly held company since our initial public offering in 2017. Our stock is publicly traded on the NYSE under the ticker symbol SNDR. Schneider possesses an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the movement of products timely, safely, and effectively, thus adding value to our customers’ supply chains.

Our diversified portfolio of complementary service offerings combines truckload services with intermodal and logistics offerings, enabling us to serve our customers’ varied needs. Our service offerings include transportation of full-truckload freight, which we directly transport utilizing either our company-controlled revenue equipment and company drivers or owner-operators under contract with us. We have arrangements with most of the major North American rail carriers to transport freight in containers. We also provide customized freight movement, revenue equipment, labor, systems, and delivery services tailored to meet individual customer requirements and typically involve long-term contracts. These arrangements are generally referred to as dedicated services and may include multiple pickups and drops, local deliveries, freight handling, specialized equipment, and freight network design. We also provide comprehensive logistics services with a network of thousands of reliable third-party carriers, and through a China-based subsidiary, we offer limited transportation and logistics services in China which consist primarily of brokerage services. Additionally, we lease equipment to third parties through our wholly owned subsidiary Schneider Finance, Inc., which is primarily engaged in leasing trucks to owner-operators, including, but not limited to, owner-operators with whom we contract, and we provide insurance for both company drivers and owner-operators through our wholly owned insurance subsidiary.

Forward-Looking Statements

This earnings release contains forward-looking statements. See the “Special Note Regarding Forward-Looking Statements” section of this document for more information.

Conference Call and Webcast Information

The Company will host an earnings conference call today at 10:30 a.m. Eastern Time. The conference call can be accessed by dialing 877-451-6152 (U.S.) or 201-389-0879 (international). A replay will be available approximately three hours after the call through February 10th by dialing 844-512-2921 (U.S.) or 412-317-6671 (international). The passcode for the replay is 13725819. A live webcast of the conference call can also be accessed on the Investor Relations section of the Company’s website, Schneider.com, along with the current quarterly investor presentation.

Schneider National, Inc.

Revenues and Income (Loss) from Operations by Segment

(unaudited)

Revenues by Segment

Income (Loss) from Operations by Segment

Schneider National, Inc.

Key Performance Indicators by Segment

(unaudited)

We monitor and analyze a number of KPIs in order to manage our business and evaluate our financial and operating performance.

Truckload

The following table presents the KPIs for our Truckload segment for the periods indicated, consistent with how revenues and expenses are reported internally for segment purposes.

The Truckload KPIs below do not contemplate the impacts of our acquisition of MLS on December 31, 2021. (As of December 31, 2021, MLS operated approximately 900 tractors and 3,600 trailers.)

Descriptions of the two operations that make up our Truckload segment are as follows:

• Dedicated – Transportation services with equipment devoted to customers under long-term contracts.
• Network – Transportation services of one-way shipments.

Intermodal

The following table presents the KPIs for our Intermodal segment for the periods indicated.

Logistics

The following table presents the KPI for our Logistics segment for the periods indicated.

Schneider National, Inc.

Reconciliation of Non-GAAP Financial Measures

(unaudited)

In this earnings release, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted operating ratio, (4) adjusted net income, and (5) adjusted diluted earnings per share. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge), we believe the measure is useful to investors because it isolates volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage fuel price fluctuations. Fuel-related costs and their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry.

Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or by other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.

Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.

Revenues (excluding fuel surcharge)

We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Included below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge).

Adjusted income from operations

We define “adjusted income from operations” as income from operations, adjusted to exclude material items that do not reflect our core operating performance. Included below is a reconciliation of income from operations, which is the most directly comparable GAAP measure, to adjusted income from operations. Excluded items for the periods shown are explained in the table and notes below.

Contacts

Steve Bindas, Director of Investor Relations

920-592-SNDR

investor@schneider.com

Read full story here