Daseke(DSKE) - 2022 Q2 - Quarterly Report

Revenue Performance - Total revenue for Q2 2022 was $481.3 million, an increase of 14.4% compared to $404.0 million in Q2 2021[89] - Total revenue for the three months ended June 30, 2022, was $268.6 million, representing an increase of 18.8% compared to $226.1 million in the same period of 2021[92] - Total revenue increased by 19.1% to $216.0 million for the three months ended June 30, 2022, compared to $180.9 million in the same period in 2021[95] - Total revenue increased to $902.3 million, a 22.3% increase from $737.9 million in 2021[117] - Total revenue for the six months ended June 30, 2022, was $497.1 million, an increase of $87.3 million or 21.3% compared to $409.8 million in the same period of 2021[120] - Total revenue increased by 22.3% for the six months ended June 30, 2022, compared to the same period in 2021, primarily due to growth in brokerage services and fuel surcharges[124] Freight Revenue - Company freight revenue increased to $167.8 million, up 34.9% from $163.6 million in the same period last year[89] - Company freight revenue decreased by 10.1% to $42.9 million, while owner operator freight increased by 1.5% to $90.2 million[94] - Company freight revenue rose to $323.8 million, representing a 35.9% increase compared to $308.7 million in 2021[117] - Owner operator freight revenue grew to $267.7 million, a 14.3% increase from $234.2 million in 2021[117] Operating Expenses - Operating expenses rose to $448.5 million, representing 93.2% of total revenue, compared to $358.7 million or 88.8% of total revenue in Q2 2021[89] - Operating expenses totaled $245.9 million, up 24.8% from $197.1 million year-over-year[92] - Total operating expenses rose to $191.4 million, reflecting a 21.1% increase compared to the previous year[94] - Total operating expenses increased to $851.3 million, a 24.4% rise from $684.5 million in 2021[117] - Operating expenses totaled $456.8 million, representing 91.9% of total revenue, which is an increase of $86.5 million or 23.4% from $370.3 million in the prior year[120] - Total operating expenses rose by 23.3% to $370.6 million, with purchased freight expenses increasing by 36.7%[126] Net Income - Net income decreased to $17.7 million, down 28.0% from $35.3 million in Q2 2021, resulting in a net income margin of 3.7%[89] - Net income reached $30.7 million, a 9.6% increase from $28.0 million in 2021[117] - The Company reported a net income of $30.7 million for the six months ended June 30, 2022[161] Miles Driven - The company experienced a 7.1% decrease in total miles driven, with 97.4 million miles in Q2 2022 compared to 105.6 million miles in Q2 2021[89] - Total miles driven decreased to 48.9 million, a decline of 4.1% from 51.0 million in the same quarter of 2021[92] - Company miles driven decreased by 19.1% to 15.7 million, impacting overall revenue generation[94] Fuel and Surcharge Revenue - Fuel surcharge revenue surged to $35.8 million, a significant increase of 119.6% compared to $16.3 million in the same quarter last year[92] - Fuel surcharge revenue increased by 93.2% to $34.2 million due to rising fuel costs[94][97] - Fuel surcharge revenue increased significantly to $115.3 million, a 90.3% rise from $60.6 million in the previous year[117] - The fuel surcharge revenue increased significantly by $29.3 million or 101.7%, reaching $58.1 million compared to $28.8 million in the prior year[120] Capital Expenditures and Debt - The Company estimates its 2022 net capital expenditures to be between $145 million and $155 million[153] - As of June 30, 2022, total debt and finance lease liabilities amounted to $604.3 million, an increase from $594.5 million as of December 31, 2021[156] - The Company had $182.6 million of equipment and real estate loans and $26.7 million of finance leases as of June 30, 2022[159] Impairment and Tax - The company recorded an impairment charge of $7.8 million in the Specialized Solutions segment due to the fair value assessment of integrated operating segments[87] - Impairment expense was $7.8 million for the three months ended June 30, 2022, related to goodwill and intangible assets[112] - The effective tax rate was 30.3% for the three months ended June 30, 2022, compared to 23.3% for the same period in 2021[115] - The effective tax rate was 26.6% for the six months ended June 30, 2022, compared to 26.1% for the same period in 2021[144] Employee Expenses - Salaries, wages, and employee benefits expense increased by 4.1% to $26.6 million, primarily due to higher driver pay and increased employee headcount[99] - Total operating expenses included salaries, wages, and employee benefits of $125.8 million, which is 25.3% of total revenue, an increase of $10.6 million or 9.2% from $115.2 million[120] - Salaries, wages, and employee benefits expense increased by 5.8%, attributed to higher driver pay and increased employee headcount[128] Other Expenses - Total fuel expense increased by 67.8% to $12.4 million, driven by a 70.9% rise in fuel prices[103] - Insurance and claims expense increased by 77.8% during the three months ended June 30, 2022, primarily due to a $5.8 million increase in incurred but not reported claims[113] - Operations and maintenance expense increased by 7.5% to $2.6 million for the three months ended June 30, 2022, compared to the same period in 2021[105] - Total purchased freight expense increased by 26.9% during the three months ended June 30, 2022, compared to the same period in 2021[107] - Purchased freight expense from third-party capacity providers increased by $41.8 million, or 86.0%, during the three months ended June 30, 2022, due to increased utilization[107]