Knight-Swift Transportation (US:KNX)2023-02-23 17:33Financial Performance - Consolidated total revenue for 2022 was $7.4 billion, a 23.9% increase from 2021[240] - Consolidated operating income reached $1.1 billion in 2022, reflecting a 13.1% increase from 2021[240] - Net income attributable to Knight-Swift increased by 3.8% to $771.3 million in 2022[240] - Total revenue for 2022 was $4.53 billion, a 10.6% increase from $4.10 billion in 2021[263] - Total revenue for 2022 reached $7,428,582,000, up from $5,998,019,000 in 2021, indicating a growth of approximately 23.8%[333] - Adjusted Net Income Attributable to Knight-Swift for 2022 was $821,196,000, an increase from $788,181,000 in 2021, reflecting a growth of approximately 4.0%[329] - Adjusted EPS for 2022 was $5.03, compared to $4.72 in 2021, representing an increase of about 6.6%[331] Segment Performance - The Truckload segment had an operating ratio of 83.5% in 2022, with a 3.5% revenue increase excluding fuel surcharge[242] - The Logistics segment saw a 42.6% improvement in operating income, with a 24.0% increase in load count and a 14.0% revenue increase[242] - LTL segment total revenue reached $1.07 billion, a significant increase of 169.9% from $396.3 million in 2021[271] - Truckload segment revenue for 2022 was $4,531,115,000, an increase from $4,098,005,000 in 2021, reflecting a growth of approximately 10.6%[336] - The operating income for the LTL segment improved to $126,609,000 in 2022 from $31,169,000 in 2021, showcasing a substantial increase of approximately 305.5%[339] Cash Flow and Liquidity - Operating cash flows generated in 2022 amounted to $1.4 billion, with Free Cash Flow at $818.7 million[242] - Free cash flow for 2022 was reported at $818.7 million, a significant increase from the previous year[342] - Total unrestricted liquidity as of December 31, 2022, was $1.3 billion, providing ample financial flexibility for operations and capital expenditures[343] - Working capital surplus increased to $599.6 million as of December 31, 2022, up from $339.5 million in 2021, indicating improved liquidity[353] - Net cash provided by operating activities increased by $245.7 million to $1.4 billion in 2022, driven by higher operating income and non-cash depreciation[356] Expenses and Costs - Salaries, wages, and benefits increased by 22.7% to $2,173,933,000, accounting for 29.3% of total revenue[290] - Fuel expenses rose by 64.0% to $895,603,000, driven by an increase in average diesel fuel price to $5.01 per gallon[293][295] - Operations and maintenance expenses increased by 34.9% to $422,872,000, influenced by higher maintenance costs and hiring expenses[296][297] - Consolidated insurance and claims expense increased by 65.6% to $455.9 million in 2022 from $275.4 million in 2021, primarily due to higher premiums and expanded third-party carrier insurance programs[299][300] - Purchased transportation expenses grew by 9.4% to $1.4 billion in 2022 from $1.3 billion in 2021, due to increased load volumes and inflationary pressures[314][315] Market Outlook - The freight market outlook for 2023 anticipates continued softness in freight demand in the first half, with improvements expected in the second half[250] - The company expects continued growth in the LTL segment through geographic expansion and innovation in technology[276] Tax and Interest - The effective tax rate for 2022 was 24.4%, compared to 23.7% in 2021, due to an increase in income before income taxes[256] - Consolidated income tax expense increased by 8.0% to $249.4 million in 2022 from $230.9 million in 2021, resulting in an effective tax rate of 24.4%[324] - Interest income increased by 363.7% to $(5.4) million in 2022 from $(1.2) million in 2021, driven by higher interest rates and cash balances[320][321] - Interest expense rose by 140.3% to $50.8 million in 2022 from $21.1 million in 2021, due to higher debt balances and interest rates[320][322] Operational Efficiency - The Adjusted Operating Ratio improved to 82.2% in 2022 from 81.5% in 2021, indicating enhanced operational efficiency[333] - The Truckload segment's Adjusted Operating Ratio increased by 170 basis points to 80.4% in 2022 compared to 2021[265] Acquisitions and Investments - The company experienced a $1.2 billion decrease in net cash used in investing activities, primarily due to reduced cash invested in acquisitions[357] - The company expects net cash capital expenditures in the range of $640.0 million to $690.0 million for 2023, excluding potential acquisition costs[344]