Schneider National(US:SNDR)2023-08-03 20:36Financial Performance - Operating revenues for Q2 2023 were $1,346.5 million, a decrease of approximately 23% from $1,746.9 million in Q2 2022[101]. - Net income for Q2 2023 was $77.5 million, down 40% from $129.8 million in Q2 2022[111]. - Adjusted net income decreased by approximately 38% to $79.7 million in Q2 2023 from $128.4 million in Q2 2022[112]. - Income from operations fell to $103.8 million in Q2 2023, a decline of 41% compared to $176.6 million in Q2 2022[101]. - Revenues excluding fuel surcharge for Q2 2023 were $1,190.9 million, down 20% from $1,497.9 million in Q2 2022[103]. - Enterprise operating revenues decreased by $400.4 million, approximately 23%, in Q2 2023 compared to Q2 2022[113]. - Enterprise income from operations decreased by $72.8 million, approximately 41%, in Q2 2023 compared to Q2 2022, primarily due to decreased revenue per order in Logistics and Intermodal[114]. - Adjusted income from operations decreased by $68.1 million, approximately 39%, driven by a $177.9 million decrease in Logistics segment revenues[115]. - Total operating revenues decreased by $592.2 million, approximately 18%, from $3,367.4 million in 2022 to $2,775.2 million in 2023[152]. - Income from operations decreased by $93.3 million, approximately 30%, from $311.7 million in 2022 to $218.4 million in 2023[152]. - Enterprise net income decreased by $46.4 million, approximately 21%, in the six months ended June 30, 2023, compared to the same period in 2022[138]. - Adjusted net income decreased by $52.8 million, approximately 23%, in the six months ended June 30, 2023, compared to the same period in 2022[140]. Operating Expenses - The adjusted operating ratio for Q2 2023 was 91.0%, compared to 88.3% in Q2 2022, indicating increased operational costs[108]. - Total operating expenses for Q2 2023 were $1,242.7 million, a decrease from $1,570.3 million in Q2 2022[108]. - Total operating expenses increased, leading to a higher operating ratio, which reflects increased operating expenses as a percentage of operating revenues[116]. - Income tax expense decreased by $17.1 million, or 40%, in Q2 2023 compared to Q2 2022, primarily due to lower taxable income[119]. - Income tax expense decreased by $17.2 million, approximately 23%, due to lower taxable income, with an effective tax rate of 24.5%[150]. Revenue Breakdown - Truckload revenues (excluding fuel surcharge) decreased by $38.9 million, approximately 7%, in Q2 2023 compared to Q2 2022[126]. - Intermodal revenues (excluding fuel surcharge) decreased by $74.1 million, approximately 22%, in Q2 2023 compared to Q2 2022, primarily due to a 14% decrease in orders[131]. - Logistics revenues (excluding fuel surcharge) decreased by $177.9 million, approximately 34%, in Q2 2023 compared to Q2 2022, due to decreased brokerage revenue per order[135]. - Logistics segment revenues decreased by $341.4 million, approximately 32%, driven by decreased revenue per order and lower brokerage volumes[165]. - Intermodal segment revenues decreased by $110.1 million, approximately 17%, due to a decrease in orders and revenue per order[161]. - Truckload segment revenues decreased by $50.3 million, approximately 4%, attributed to a decline in revenue per truck per week and lower volumes[156]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased from $385.7 million at the end of 2022 to $249.2 million as of June 30, 2023[172]. - Net cash provided by operating activities decreased by $50.5 million, approximately 14%, to $303.2 million for the first six months of 2023 compared to $353.7 million in 2022[176]. - Net cash used in investing activities increased by $183.8 million, approximately 102%, totaling $364.1 million in the first six months of 2023, primarily due to increased capital expenditures[177]. - Net capital expenditures rose by $188.1 million to $298.1 million in the first six months of 2023, driven by a $185.4 million increase in purchases of transportation equipment[179]. - Net cash used in financing activities decreased by $11.6 million, approximately 13%, totaling $75.6 million in the first six months of 2023, mainly due to a prior year repayment of a private placement note[180]. Other Financial Information - The company recognized pre-tax net gains of $0.1 million in Q2 2023, compared to pre-tax losses of $1.8 million in Q2 2022 on equity investments[111]. - The company continues to focus on capital allocation to enhance service offerings and broaden the customer base through acquisitions[90]. - The business remains sensitive to seasonal fluctuations, with revenues typically lowest in Q1 and highest in Q4[95]. - The company will perform its annual goodwill impairment evaluation as of October 31, 2023, with results expected in the fourth quarter[182]. - As of June 30, 2023, there were no off-balance sheet arrangements that could materially affect the company's financial condition[183]. - There were no material changes to the company's contractual obligations during the six months ended June 30, 2023[184]. - The company found that its critical accounting estimates and policies remain unchanged from the previous year[186]. - Market risks have not changed significantly from those discussed in the previous annual report[187].