Schneider National, Inc. (SNDR) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. Let's delve deeper. Southward Earnings Estimate Revision:The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 26.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 25.2% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stoc ...

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On May 2, 2024, Schneider National reported its first quarter 2024 results and missed on the Zacks Consensus for the third quarter in a row. Earnings were $0.11 versus the consensus of $0.13. Operating revenues fell 8% to $1.3 from $1.4 billion last year. Truckload revenues, excluding fuel surcharges, increased $1.1 million to $538.1 million compared to the same quarter in 2023. Intermodal revenues, excluding fuel surcharges, fell 7%, or $18.9 million, to $247.2 million year-over-year. First quarter 2024 vo ...

Financial Data and Key Metrics - In Q1 2024, the company experienced positive contract price renewal closures in the low single digits for the truckload network for the first time in six quarters [8] - Dedicated revenue per truck per week was flat year-over-year and down 4% sequentially from Q4 2023, primarily due to severe weather in January [9] - Average Dedicated truck count grew year-over-year by 773 units and 80 units sequentially from Q4 2023 [9] - Truckload network revenue per truck per week contracted 10% year-over-year in Q1 2024, with most of the change due to depressed rates [16] - Intermodal segment volumes were flat year-over-year, with revenue per order down 7% compared to Q1 2023 [17] - Intermodal margins improved 40 basis points sequentially from Q4 2023 [17] - Logistics segment revenues declined 15% year-over-year in Q1 2024, primarily due to decreased revenue per order and overall volume declines [22] - Adjusted income from operations for Q1 2024 was down $85 million or 74% from the prior year [47] - Adjusted diluted earnings per share for Q1 2024 was $0.11 compared to $0.55 in the prior year [47] - EBITDA for Q1 2024 was $131 million, in line with Q4 2023 [47] Business Segment Performance - In the Asset-Based truckload segment, revenues excluding fuel surcharge were flat year-over-year in Q1 2024 [21] - Truckload earnings for Q1 2024 were lower year-over-year, primarily due to network price and volume pressures [21] - Intermodal segment revenues, excluding fuel surcharge, were down 7% year-over-year in Q1 2024 [22] - Intermodal earnings were down year-over-year, primarily due to lower revenue per order and higher MT repositioning costs [22] - Non-asset logistics segment revenues declined 15% year-over-year in Q1 2024 [22] - Logistics operating margins eroded over 300 basis points compared to Q1 2023, but only 10 basis points sequentially from Q4 2023 [46] Market Performance - The East region in the Intermodal segment is the most competitive region with the truck alternative [17] - Growth in the West, Transcon, and Mexico offset declines in the East [17][27] - The company is seeing signs of inventory destocking concluding, although shippers remain cautious about restocking [23] Company Strategy and Industry Competition - The company is focused on cost reduction actions, asset efficiency improvements, and returning operating segments to long-term margin targets [15] - Dedicated now represents 62% of truckload tractors, with a strong pipeline and new business awards for Q2 and Q3 2024 [44] - The company is leveraging its multimodal platform to quickly pivot when the market improves [43] - The company is encouraged by the Union Pacific's announcement to reduce transit time by two days on the largest freight lane from LA to Chicago [45][54] Management Commentary on Operating Environment and Future Outlook - The company is assessing signs that market conditions are beginning to moderate, but has not seen enough to consider the market at an inflection point [8] - The company expects improving yields in network businesses, volume growth in intermodal and logistics, and continued truck growth in dedicated [24] - The company updated its adjusted diluted earnings per share guidance range for 2024 to $0.85 to $1, assuming a full-year effective tax rate of 25% [52] - Net CapEx expectations for 2024 are adjusted to be in the range of $350 million to $400 million [52] Other Important Information - The company recognized five Schneider Hall of Fame Driver associates who surpassed 4 million safe driving miles [19] - The company paid nearly $17 million in dividends during Q1 2024, 5% above the same period in 2023 [49] - The company generated strong operating cash flow of $98 million during Q1 2024, with net debt leverage at 0.4 times [49] Q&A Session Summary Question: Intermodal allocation season and Western market dynamics [26] - The company is about 40% through the allocation season and remains disciplined in selling into areas with network differentiation [26] - Growth in the West, Transcon, and Mexico has helped overcome difficulties in the East [27][28] Question: Guidance and market recovery confidence [29] - The company sees positive signs in demand and pricing, but expects moderate capacity reductions and demand improvement [30][31] - Potential disruptions in competing rail services in the East could impact the market [32] Question: Contract renewal trends and asset-based solutions [33][35] - Low single-digit contract renewals were referenced for the truck network [33] - Customers are increasingly favoring asset-based solutions, which benefits the company's brokerage and power-only offerings [35] Question: Intermodal growth and competitive dynamics [37][72] - The company sees differentiation in intermodal due to service reliability and sustainability [37] - The company expects intermodal to grow faster than over-the-road transportation [64] Question: Equipment sales and guidance [66] - The company assumes flat or zero gain on equipment sales, with a $30 million headwind [66] Question: Dedicated market stability [70] - The dedicated market is considered stable, with growth focused on the industrial side of the economy [70] Question: Seasonality and market conditions [77][115] - The company expects a return to typical seasonality, with moderate improvements in market conditions [77][115] - Weather events in Q1 2024 had a quicker impact on spot pricing and carrier costing, suggesting some market tightening [116] Question: Intermodal margin improvement [122] - Margin improvement in intermodal was driven by network healing, driver utilization, and reduced empty miles [122] Question: Power-only business performance [124] - Power-only business provides higher net revenue per order and is more contract-based, contributing to margin resilience [125] Question: Free cash flow and CapEx [130] - The company generated positive operating cash flow of nearly $100 million in Q1 2024, with CapEx adjustments reflecting efficiency improvements [131]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________ FORM 10-Q _____________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ...

• Operating Revenues $1.3 billion; $1.4 billion in 2023 • Income from Operations $28.7 million; $114.6 million in 2023 • Diluted Earnings per Share $0.10; Adjusted Diluted Earnings Per Share $0.11 • Updated full year Adjusted Diluted Earnings per Share guidance to $0.85 - $1.00 • Updated full year Net Capital Expenditures guidance of $350.0 - $400.0 million Schneider National, Inc. Announces First Quarter 2024 Results Green Bay, Wis. - May 2, 2024 – Schneider National, Inc. (NYSE: SNDR, "Schneider" or the " ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________ FORM 10-K _____________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Schneider National, Inc. (NYSE:SNDR) Q4 2023 Results Conference Call February 1, 2024 10:30 AM ET Company Participants Steve Bindas - Director of IR Mark Rourke - President and Chief Executive Officer Darrell Campbell - Executive Vice President and Chief Financial Officer Jim Filter - EVP and Group President, Transportation and Logistics Conference Call Participants Bruce Chan - Stifel Ravi Shanker - Morgan Stanley Jordan Alliger - Goldman Sachs Brian Ossenbeck - JPMorgan Ken Hoexter - Bank of America John ...

Schneider National, Inc. (NYSE:SNDR) Q3 2023 Earnings Conference Call November 2, 2023 10:30 AM ET Company Participants Steve Bindas - Director of IR Mark Rourke - President and Chief Executive Officer Darrell Campbell - Executive Vice President and Chief Financial Officer James Filter - Executive Vice President and Group President of Transportation and Logistics Stephen Bruffett - Executive Vice President Conference Call Participants Thomas Wadewitz - UBS Jack Atkins - Stephens Inc. Jonathan Chappell - Ev ...

Revenue and Income Decline - Operating revenues for Q3 2023 decreased to $1,352.0 million from $1,675.3 million in Q3 2022, a decline of 19.3%[118] - Revenues excluding fuel surcharge for Q3 2023 were $1,179.4 million, down 18.2% from $1,441.8 million in Q3 2022[118] - Net income for Q3 2023 dropped 72% to $35.6 million compared to $125.8 million in Q3 2022[118] - Adjusted net income for Q3 2023 decreased 71% to $36.3 million from $125.9 million in Q3 2022[124] - Adjusted income from operations decreased to $47.6 million in Q3 2023 from $145.5 million in Q3 2022[120] - Enterprise operating revenues decreased by $323.3 million, approximately 19%, in Q3 2023 compared to Q3 2022[127] - Enterprise income from operations decreased by $98.7 million, approximately 68%, in Q3 2023 compared to Q3 2022[128] - Adjusted income from operations decreased by $97.9 million, approximately 67%, in Q3 2023 compared to Q3 2022[129] - Logistics segment revenues (excluding fuel surcharge) decreased by $138.2 million, driven by decreased revenue per order and brokerage volumes[128] - Intermodal segment revenues (excluding fuel surcharge) decreased by $71.7 million due to reduced revenue per order and orders[128] - Truckload segment revenues (excluding fuel surcharge) decreased by $35.9 million, driven by a decline in revenue per truck per week and volume[128] - Logistics segment revenues decreased by $479.6 million (31%) due to lower revenue per order and brokerage volumes[158] - Intermodal segment revenues decreased by $181.8 million (19%) driven by a decline in orders and revenue per order[158] - Truckload segment revenues decreased by $86.2 million (5%) due to a decline in revenue per truck per week[158] - Truckload income from operations decreased by $58.7 million, approximately 71%, in Q3 2023 compared to Q3 2022[141] - Intermodal income from operations decreased by $20.0 million, approximately 64%, in Q3 2023 compared to Q3 2022[146] - Logistics income from operations decreased by $19.4 million, approximately 70%, in Q3 2023 compared to Q3 2022[150] - Income from operations decreased by $131.4 million (46%) in the Truckload segment due to higher driver pay and incremental depreciation[169] - Intermodal income from operations decreased by $47.5 million (42%) due to lower orders and revenue per order[174] - Logistics income from operations decreased by $77.3 million (66%) due to lower revenue per order and brokerage volumes[178] Operating Ratio and Costs - Operating ratio worsened to 96.5% in Q3 2023 from 91.3% in Q3 2022[118] - Adjusted operating ratio increased to 96.0% in Q3 2023 compared to 89.9% in Q3 2022[122] - Purchased transportation costs decreased by $619.1 million (27%) primarily due to lower third-party carrier costs[159] - Fuel and fuel taxes for company trucks decreased by $65.4 million (17%) due to lower cost per gallon[159] Fuel Surcharge and Other Income - Fuel surcharge revenues decreased to $172.6 million in Q3 2023 from $233.5 million in Q3 2022[119] - Pre-tax net gains on equity investments were $2.3 million in Q3 2023, down from $25.9 million in Q3 2022[125] - Total other income increased by $6.8 million (101%) driven by pre-tax net gains on equity investments[161] Taxes and Provisions - Provision for income taxes decreased by $31.4 million, or 75%, in Q3 2023 compared to Q3 2022[132] - Provision for income taxes decreased by $48.6 million (42%) due to lower taxable income[162] Cash Flow and Financial Position - Total cash, cash equivalents, and marketable securities decreased to $114.9 million as of September 30, 2023, from $431.6 million as of December 31, 2022[184] - Total debt increased to $289.0 million as of September 30, 2023, from $215.1 million as of December 31, 2022[184] - Net cash provided by operating activities decreased by $92.2 million (16%) to $486.1 million in the first nine months of 2023 compared to the same period in 2022[188] - Net cash used in investing activities increased by $405.3 million (109%) to $776.8 million in the first nine months of 2023 compared to the same period in 2022[189] - Net capital expenditures increased by $169.9 million to $428.3 million in the first nine months of 2023, driven by a $179.5 million increase in purchases of transportation equipment[191] - Net cash used in financing activities decreased by $65.4 million (64%) to $36.5 million in the first nine months of 2023 compared to the same period in 2022[192] Acquisitions and Goodwill - The company completed the acquisition of M&M, a truckload carrier, on August 1, 2023[110] - The company will perform its annual evaluation of goodwill for impairment as of October 31, 2023, with the analysis expected to be finalized during the fourth quarter[194] Contractual Obligations and Market Risks - The company had no off-balance sheet arrangements as of September 30, 2023, that could materially affect its financial condition or operations[195] - There were no material changes to the company's contractual obligations during the nine months ended September 30, 2023[196] - The company's market risks have not changed significantly from those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022[199]