Schneider National(US:SNDR)2023-11-02 20:09Revenue 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]