| Delaware | | | 4213 | | | 20-5589597 | |
| (State or Other Jurisdiction of Incorporation or Organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Richard B. Aftanas, Esq. Michael P. Brueck, Esq. Claire E. James, Esq. Kirkland & Ellis LLP 601 Lexington Avenue New York, New York 10022 (212) 446-4800 | | | Todd F. Carlson, Esq. General Counsel Knight Transportation, Inc. 20002 North 19th Avenue Phoenix, Arizona 85027 (602) 269-2000 | | | James E. Brophy, Esq. Jessica Benford, Esq. Ryley, Carlock & Applewhite, P.C. One N. Central Avenue, Suite 1200 Phoenix, Arizona 85004 (602) 440-4800 | | | Philip Richter, Esq. Fried, Frank, Harris, Shriver & Jacobson LLP One New York Plaza New York, New York 10004 (212) 859-8000 | | | Mark A. Scudder, Esq. Earl H. Scudder, Esq. Scudder Law Firm, P.C., L.L.O. 411 South 13th Street Lincoln, Nebraska 68508 (402) 435-3223 | |
| Large accelerated filer | | | ☒ | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☐ (Do not check if a smaller reporting company) | | | Smaller reporting company | | | ☐ | |
| | | | | | | Emerging growth company | | | ☐ | |
| | | |
| Kevin P. Knight Executive Chairman Knight Transportation, Inc. | | | Richard H. Dozer Chairman Swift Transportation Company | |
| Knight Transportation, Inc. 20002 North 19th Avenue Phoenix, Arizona 85027 (800) 489-2000 Attn: Investor Relations | | | Swift Transportation Company 2200 South 75th Avenue Phoenix, Arizona 85043 (602) 269-9700 Attn: Investor Relations | |
| or | | | or | |
| | | | ||
| Okapi Partners LLC 1212 Avenue of the Americas, 24th Floor New York, New York 10036 (888) 785-6617 Email: KnightTrans@okapipartners.com | | | Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, New York 10022 Call Toll-Free: (888) 750-5834 Banks and Broker: (212) 750-5833 | |
| | | | | | | ||
| SUMMARY | | | | | | | |
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| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | |
| | For the Three Months Ended March 31, | | For the Years Ended December 31, | | | For the Six Months Ended June 30, | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statements of Income Data: | | 2017 | | 2016 | | 2016 | | 2015 | | 2014(1) | | 2013 | | 2012 | | | 2017 | | 2016 | | 2016 | | 2015 | | 2014(1) | | 2013 | | 2012 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | | | $ | 271,182 | | | | $ | 272,088 | | | | $ | 1,118,034 | | | | $ | 1,182,964 | | | | $ | 1,102,332 | | | | $ | 969,237 | | | | $ | 936,036 | | | | | $ | 544,425 | | | | $ | 548,406 | | | | $ | 1,118,034 | | | | $ | 1,182,964 | | | | $ | 1,102,332 | | | | $ | 969,237 | | | | $ | 936,036 | | | ||||||||||||||
Operating expenses | | | | 248,544 | | | | | 233,361 | | | | | 969,555 | | | | | 1,004,964 | | | | | 939,610 | | | �� | | | 855,328 | | | | | 827,769 | | | | | | 493,377 | | | | | 471,598 | | | | | 969,555 | | | | | 1,004,964 | | | | | 939,610 | | | | | 855,328 | | | | | 827,769 | | | |||||||||||||
Income from operations | | | | 22,638 | | | | | 38,727 | | | | | 148,479 | | | | | 178,000 | | | | | 162,722 | | | | | 113,909 | | | | | 108,267 | | | | | | 51,048 | | | | | 76,808 | | | | | 148,479 | | | | | 178,000 | | | | | 162,722 | | | | | 113,909 | | | | | 108,267 | | | ||||||||||||||
Interest income & other income | | | | 780 | | | | | 1,380 | | | | | 5,248 | | | | | 9,502 | | | | | 9,838 | | | | | 3,257 | | | | | 1,967 | | | | | | 1,511 | | | | | 3,389 | | | | | 5,248 | | | | | 9,502 | | | | | 9,838 | | | | | 3,257 | | | | | 1,967 | | | ||||||||||||||
Interest expense | | | | (82) | | | | | (301) | | | | | (897) | | | | | (998) | | | | | (730) | | | | | (462) | | | | | (457) | | | | | | (136) | | | | | (559) | | | | | (897) | | | | | (998) | | | | | (730) | | | | | (462) | | | | | (457) | | | ||||||||||||||
Income before income taxes | | | | 23,336 | | | | | 39,806 | | | | | 152,830 | | | | | 186,504 | | | | | 171,830 | | | | | 116,704 | | | | | 109,777 | | | | | | 52,423 | | | | | 79,638 | | | | | 152,830 | | | | | 186,504 | | | | | 171,830 | | | | | 116,704 | | | | | 109,777 | | | ||||||||||||||
Net income | | | | 15,106 | | | | | 23,470 | | | | | 95,238 | | | | | 118,457 | | | | | 104,021 | | | | | 70,024 | | | | | 64,763 | | | | | | 33,365 | | | | | 48,683 | | | | | 95,238 | | | | | 118,457 | | | | | 104,021 | | | | | 70,024 | | | | | 64,763 | | | ||||||||||||||
Net income attributable to Knight(2) | | | | 14,876 | | | | | 23,017 | | | | | 93,863 | | | | | 116,718 | | | | | 102,862 | | | | | 69,282 | | | | | 64,117 | | | | | | 32,847 | | | | | 47,935 | | | | | 93,863 | | | | | 116,718 | | | | | 102,862 | | | | | 69,282 | | | | | 64,117 | | | ||||||||||||||
Basic earnings per share | | | | 0.19 | | | | | 0.29 | | | | | 1.17 | | | | | 1.43 | | | | | 1.27 | | | | | 0.87 | | | | | 0.80 | | | | | | 0.41 | | | | | 0.60 | | | | | 1.17 | | | | | 1.43 | | | | | 1.27 | | | | | 0.87 | | | | | 0.80 | | | ||||||||||||||
Diluted earnings per share | | | | 0.18 | | | | | 0.28 | | | | | 1.16 | | | | | 1.42 | | | | | 1.25 | | | | | 0.86 | | | | | 0.80 | | | | | | 0.40 | | | | | 0.59 | | | | | 1.16 | | | | | 1.42 | | | | | 1.25 | | | | | 0.86 | | | | | 0.80 | | |
| | As of March 31, | | As of December 31, | | | As of June 30, | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Data: | | 2017 | | 2016 | | 2016 | | 2015 | | 2014(1) | | 2013 | | 2012 | | | 2017 | | 2016 | | 2016 | | 2015 | | 2014(1) | | 2013 | | 2012 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital | | | $ | 137,194 | | | | $ | 149,465 | | | | $ | 111,541 | | | | $ | 164,090 | | | | $ | 145,667 | | | | $ | 101,768 | | | | $ | 109,274 | | | | | $ | 180,236 | | | | $ | 117,754 | | | | $ | 111,541 | | | | $ | 164,090 | | | | $ | 145,667 | | | | $ | 101,768 | | | | $ | 109,274 | | | ||||||||||||||
Total assets | | | | 1,069,753 | | | | | 1,111,647 | | | | | 1,078,525 | | | | | 1,120,232 | | | | | 1,082,285 | | | | | 807,121 | | | | | 728,512 | | | | | | 1,099,408 | | | | | 1,086,794 | | | | | 1,078,525 | | | | | 1,120,232 | | | | | 1,082,285 | | | | | 807,121 | | | | | 728,512 | | | ||||||||||||||
Total debt(2) | | | | — | | | | | 106,000 | | | | | 18,000 | | | | | 112,000 | | | | | 134,400 | | | | | 38,000 | | | | | 80,000 | | | | | | — | | | | | 60,000 | | | | | 18,000 | | | | | 112,000 | | | | | 134,400 | | | | | 38,000 | | | | | 80,000 | | | ||||||||||||||
Cash dividend per Knight share(3) | | | | 0.06 | | | | | 0.06 | | | | | 0.24 | | | | | 0.24 | | | | | 0.24 | | | | | 0.24 | | | | | 0.74 | | | | | | 0.12 | | | | | 0.12 | | | | | 0.24 | | | | | 0.24 | | | | | 0.24 | | | | | 0.24 | | | | | 0.74 | | | ||||||||||||||
Knight Transportation stockholders’ equity | | | | 798,409 | | | | | 730,646 | | | | | 786,473 | | | | | 738,398 | | | | | 677,760 | | | | | 553,588 | | | | | 490,232 | | | | | | 816,345 | | | | | 746,572 | | | | | 786,473 | | | | | 738,398 | | | | | 677,760 | | | | | 553,588 | | | | | 490,232 | | |
| | | For the Six Months Ended June 30, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
Statements of Income Data:(1) | | | 2017 | | | 2016 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | |||||||||||||||||||||
Operating revenue | | | | $ | 1,956,889 | | | | | $ | 1,979,677 | | | | | $ | 4,031,517 | | | | | $ | 4,229,322 | | | | | $ | 4,298,724 | | | | | $ | 4,118,195 | | | | | $ | 3,976,085 | | |
Operating income | | | | | 67,746 | | | | | | 126,688 | | | | | | 242,012 | | | | | | 370,104 | | | | | | 370,070 | | | | | | 356,959 | | | | | | 351,816 | | |
Interest and derivative interest expense | | | | | 14,383 | | | | | | 16,161 | | | | | | 30,598 | | | | | | 42,322 | | | | | | 86,559 | | | | | | 103,386 | | | | | | 127,150 | | |
Income before income taxes | | | | | 49,496 | | | | | | 110,784 | | | | | | 214,969 | | | | | | 316,786 | | | | | | 250,626 | | | | | | 256,404 | | | | | | 201,701 | | |
Net income | | | | | 31,504 | | | | | | 74,801 | | | | | | 149,267 | | | | | | 197,577 | | | | | | 161,152 | | | | | | 155,422 | | | | | | 140,087 | | |
Diluted earnings per share | | | | | 0.23 | | | | | | 0.55 | | | | | | 1.10 | | | | | | 1.38 | | | | | | 1.12 | | | | | | 1.09 | | | | | | 1.00 | | |
| | | As of June 30, | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||
Balance Sheet Data:(1) | | | 2017 | | | 2016 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | |||||||||||||||||||||
Cash and cash equivalents, excluding restricted cash | | | | $ | 42,884 | | | | | $ | 118,132 | | | | | $ | 89,391 | | | | | $ | 107,590 | | | | | $ | 105,132 | | | | | $ | 59,178 | | | | | $ | 53,596 | | |
Net property and equipment | | | | | 1,458,572 | | | | | | 1,528,558 | | | | | | 1,548,601 | | | | | | 1,651,100 | | | | | | 1,542,130 | | | | | | 1,447,807 | | | | | | 1,397,536 | | |
Total assets(2)(3) | | | | | 2,590,688 | | | | | | 2,772,866 | | | | | | 2,745,666 | | | | | | 2,919,667 | | | | | | 2,892,721 | | | | | | 2,809,008 | | | | | | 2,791,981 | | |
Debt: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Accounts receivable securitization(3) | | | | | 294,464 | | | | | | 299,106 | | | | | | 279,285 | | | | | | 223,927 | | | | | | 334,000 | | | | | | 264,000 | | | | | | 204,000 | | |
Revolving line of credit | | | | | — | | | | | | 85,000 | | | | | | 130,000 | | | | | | 200,000 | | | | | | 57,000 | | | | | | 17,000 | | | | | | 2,531 | | |
Long-term debt and capital lease obligations(3) | | | | | 641,529 | | | | | | 848,610 | | | | | | 735,741 | | | | | | 960,972 | | | | | | 1,104,066 | | | | | | 1,321,820 | | | | | | 1,430,598 | | |
| | | For the Three Months Ended March 31, 2017 | | | For the Year Ended December 31, 2016 | | ||||||
Pro Forma Condensed Combined Statement of Income Data: | | | | ||||||||||
Total revenue | | | | $ | 1,235,013 | | | | | $ | 5,149,551 | | |
Operating expenses | | | | | 1,203,557 | | | | | | 4,789,981 | | |
Income from operations | | | | | 31,456 | | | | | | 359,570 | | |
Interest income and other income | | | | | 2,451 | | | | | | 8,803 | | |
Interest expense | | | | | (7,603) | | | | | | (31,495) | | |
Income before income taxes | | | | | 26,304 | | | | | | 336,878 | | |
Net income | | | | | 17,455 | | | | | | 225,334 | | |
Net income attributable to Knight | | | | | 17,225 | | | | | | 223,959 | | |
Basic earnings per share | | | | | 0.10 | | | | | | 1.26 | | |
Diluted earnings per share | | | | | 0.10 | | | | | | 1.26 | | |
|
| | | As of March 31, 2017 | | |||
Pro Forma Condensed Combined Balance Sheet Data: | | | |||||
Working capital | | | | $ | 306,799 | | |
Total assets | | | | | 6,729,611 | | |
Total debt | | | | | 1,002,780 | | |
Revolving line of credit | | | | | 10,000 | | |
Other debt | | | | | 476,878 | | |
Capital lease obligations | | | | | 211,528 | | |
Accounts receivable securitization | | | | | 304,374 | | |
Combined company stockholders’ equity | | | | | 4,175,104 | | |
| | | For the Six Months Ended June 30, 2017 | | | For the Year Ended December 31, 2016 | | ||||||
Pro Forma Condensed Combined Statement of Income Data: | | | | ||||||||||
Total revenue | | | | $ | 2,501,314 | | | | | $ | 5,149,551 | | |
Operating expenses | | | | | 2,391,600 | | | | | | 4,791,190 | | |
Income from operations | | | | | 109,714 | | | | | | 358,361 | | |
Interest income and other income | | | | | 4,958 | | | | | | 8,803 | | |
Interest expense | | | | | 14,519 | | | | | | 31,495 | | |
Income before income taxes | | | | | 100,153 | | | | | | 335,669 | | |
Net income | | | | | 65,289 | | | | | | 224,584 | | |
Net income attributable to Knight and Swift | | | | | 64,771 | | | | | | 223,209 | | |
Basic earnings per share | | | | | 0.37 | | | | | | 1.26 | | |
Diluted earnings per share | | | | | 0.36 | | | | | | 1.25 | | |
|
| | | As of June 30, 2017 | | |||
Pro Forma Condensed Combined Balance Sheet Data: | | | |||||
Working capital | | | | $ | 350,909 | | |
Total assets | | | | | 6,690,722 | | |
Total debt | | | | | 935,993 | | |
Revolving line of credit | | | | | — | | |
Other debt | | | | | 452,687 | | |
Capital lease obligations | | | | | 188,842 | | |
Accounts receivable securitization | | | | | 294,464 | | |
Combined company stockholders’ equity | | | | | 4,216,344 | | |
| | As of/For the Three Months Ended March 31, 2017 | | As of/For the Year Ended December 31, 2016 | | | As of/For the Six Months Ended June 30, 2017 | | As of/For the Year Ended December 31, 2016 | | ||||||||||||||||
Knight Historical per Common Share Data: | | | | | ||||||||||||||||||||||
Net income – basic | | | $ | 0.19 | | | | $ | 1.17 | | | | | $ | 0.41 | | | | $ | 1.17 | | | ||||
Net income – diluted | | | $ | 0.18 | | | | $ | 1.16 | | | | | $ | 0.40 | | | | $ | 1.16 | | | ||||
Cash dividends paid | | | $ | 0.06 | | | | $ | 0.24 | | | | | $ | 0.12 | | | | $ | 0.24 | | | ||||
Book value | | | $ | 9.85 | | | | $ | 9.71 | | | | | $ | 10.07 | | | | $ | 9.71 | | | ||||
Swift Historical per Common Share Data: | | | | | ||||||||||||||||||||||
Net income – basic | | | $ | 0.04 | | | | $ | 1.11 | | | | | $ | 0.24 | | | | $ | 1.11 | | | ||||
Net income – diluted | | | $ | 0.04 | | | | $ | 1.10 | | | | | $ | 0.23 | | | | $ | 1.10 | | | ||||
Cash dividends paid | | | $ | — | | | | $ | — | | | | | $ | — | | | | $ | — | | | ||||
Book value | | | $ | 5.08 | | | | $ | 4.96 | | | | | $ | 5.32 | | | | $ | 4.96 | | | ||||
Unaudited Pro Forma Combined per Share Data: | | | | | ||||||||||||||||||||||
Net income – basic | | | $ | 0.10 | | | | $ | 1.26 | | | | | $ | 0.37 | | | | $ | 1.26 | | | ||||
Net income – diluted | | | $ | 0.10 | | | | $ | 1.26 | | | | | $ | 0.36 | | | | $ | 1.25 | | | ||||
Cash dividends paid | | | $ | 0.06 | | | | $ | 0.24 | | | | | $ | 0.12 | | | | $ | 0.24 | | | ||||
Book value | | | $ | 23.48 | | | | | N/A | | | | | $ | 23.68 | | | | | N/A | | |
| | | Knight Common Stock | | | Swift Class A Common Stock | | ||||||||||||||||||
| | | High | | | Low | | | High | | | Low | | ||||||||||||
2014: | | | | | | ||||||||||||||||||||
First Calendar Quarter | | | | $ | 23.54 | | | | | $ | 17.95 | | | | | $ | 26.71 | | | | | $ | 19.89 | | |
Second Calendar Quarter | | | | $ | 25.00 | | | | | $ | 22.24 | | | | | $ | 26.54 | | | | | $ | 21.49 | | |
Third Calendar Quarter | | | | $ | 27.67 | | | | | $ | 23.19 | | | | | $ | 26.15 | | | | | $ | 18.53 | | |
Fourth Calendar Quarter | | | | $ | 34.69 | | | | | $ | 25.50 | | | | | $ | 29.44 | | | | | $ | 20.01 | | |
2015: | | | | | | ||||||||||||||||||||
First Calendar Quarter | | | | $ | 34.73 | | | | | $ | 28.43 | | | | | $ | 29.01 | | | | | $ | 24.39 | | |
Second Calendar Quarter | | | | $ | 33.00 | | | | | $ | 26.15 | | | | | $ | 26.58 | | | | | $ | 22.10 | | |
Third Calendar Quarter | | | | $ | 29.00 | | | | | $ | 23.64 | | | | | $ | 24.76 | | | | | $ | 14.83 | | |
Fourth Calendar Quarter | | | | $ | 27.66 | | | | | $ | 21.72 | | | | | $ | 17.63 | | | | | $ | 12.76 | | |
2016: | | | | | | ||||||||||||||||||||
First Calendar Quarter | | | | $ | 27.11 | | | | | $ | 20.56 | | | | | $ | 18.66 | | | | | $ | 11.74 | | |
Second Calendar Quarter | | | | $ | 28.34 | | | | | $ | 23.99 | | | | | $ | 19.12 | | | | | $ | 14.31 | | |
Third Calendar Quarter | | | | $ | 30.38 | | | | | $ | 26.39 | | | | | $ | 22.15 | | | | | $ | 15.19 | | |
Fourth Calendar Quarter | | | | $ | 38.80 | | | | | $ | 26.85 | | | | | $ | 27.18 | | | | | $ | 19.51 | | |
2017: | | | | | | ||||||||||||||||||||
First Calendar Quarter | | | | $ | 34.70 | | | | | $ | 30.10 | | | | | $ | 25.20 | | | | | $ | 19.21 | | |
Second Calendar Quarter | | | | $ | 37.63 | | | | | $ | 30.00 | | | | | $ | 26.91 | | | | | $ | 19.88 | | |
Third Calendar Quarter (through [ ], 2017) | | | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | |
| | | Class A Share of Swift | | | Knight Share | | | Swift Share Equivalent | | |||||||||
April 7, 2017 | | | | $ | 20.02 | | | | | $ | 30.65 | | | | | $ | 22.07 | | |
[ ], 2017 | | | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | |
| | | Merger Exchange Ratio Reference Range | |
Perpetuity Growth Method | | | 0.475x – 1.728x | |
EBITDA Multiple Method | | | 0.704x – 1.385x | |
Perpetuity Growth Method with Synergies(1) | | | 0.298x – 1.012x | |
Company | | | Equity Value(1) | | | 2016 Adjusted Operating Ratio(2) | | | Adjusted Operating Ratio (Last 3 Years Average)(2) | | | EV/2017E EBITDA | | | EV/2018E EBITDA | | | Price/2017E EPS | | | Price/2018E EPS | | | |||||||||||||||||||||||
Knight | | | | $ | 2,512 | | | | | | 85.3% | | | | | | 83.4% | | | | | | 9.1x | | | | | | 8.3x | | | | | | 26.0x | | | | | | 21.9x | | | | ||
Swift | | | | $ | 2,693 | | | | | | 92.9% | | | | | | 90.6% | | | | | | 6.6x | | | | | | 5.9x | | | | | | 17.6x(3) | | | | | | 13.2x(3) | | | | ||
“Larger” Selected Publicly Traded Companies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Werner Enterprises, Inc. | | | | $ | 1,839 | | | | | | 93.2% | | | | | | 91.2% | | | | | | 5.5x | | | | | | 5.1x | | | | | | 21.8x | | | | | | 17.9x | | | | ||
Heartland Express, Inc. | | | | $ | 1,635 | | | | | | 84.6% | | | | | | 83.3% | | | | | | 7.9x | | | | | | 7.3x | | | | | | 28.5x | | | | | | 24.4x | | | | ||
“Smaller” Selected Publicly Traded Companies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Marten Transport, Ltd | | | | $ | 760 | | | | | | 90.6% | | | | | | 90.9% | | | | | | 5.5x | | | | | | 5.0x | | | | | | 22.9x | | | | | | 19.3x | | | | ||
Covenant Transportation Group, Inc. | | | | $ | 328 | | | | | | 94.7% | | | | | | 92.4% | | | | | | 4.7x | | | | | | 4.3x | | | | | | 19.5x | | | | | | 14.7x | | | | ||
Celadon Group, Inc. | | | | $ | 144 | | | | | | 98.6%(4) | | | | | | 94.8%(4) | | | | | | 6.0x | | | | | | 5.0x | | | | | | NM(5) | | | | | | 10.0x | | | | ||
P.A.M. Transportation Services, Inc. | | | | $ | 96 | | | | | | 94.8% | | | | | | 92.4% | | | | | | 4.2x | | | | | | 3.5x | | | | | | 14.3x | | | | | | 10.7x | | | | ||
USA Truck, Inc. | | | | $ | 60 | | | | | | 100.4% | | | | | | 97.0% | | | | | | 5.8x | | | | | | 4.7x | | | | | | NM(6) | | | | | | 12.8x | | | | | |
| | | 2017E EBITDA | | | 2018E EBITDA | | | 2017E EPS | | | 2018E EPS | |
Knight | | | 7.25x – 9.25x | | | 6.5x – 8.5x | | | 22.0x – 29.0x | | | 18.5x – 25.0x | |
Swift | | | 5.5x – 7.0x | | | 5.0x – 6.5x | | | 17.0x – 22.0x(1) | | | 13.0x – 18.0x (1) | |
| | | 2017E EBITDA | | | 2018E EBITDA | | | 2017E EPS | | | 2018E EPS | |
Knight | | | $23.18 – $29.55 | | | $24.60 – $32.10 | | | $23.91 – $31.52 | | | $26.58 – $35.92 | |
Swift (pre-Reverse Stock Split) | | | $14.29 – $20.28 | | | $14.83 – $21.57 | | | $18.02 – $23.33(1) | | | $17.90 – $24.78(1) | |
Swift (post-Reverse Stock Split) | | | $19.85 – $28.17 | | | $20.59 – $29.96 | | | $25.03 – $32.40(1) | | | $24.86 – $34.42(1) | |
| | | Merger Exchange Ratio Reference Range | |
2017E EBITDA | | | 0.823x – 1.488x | |
2018E EBITDA | | | 0.821x – 1.559x | |
2017E EPS(1) | | | 0.738x – 1.259x | |
2018E EPS(1) | | | 0.772x – 1.445x | |
| | | 2018E and 2019E EBITDA | | | 2018E and 2019E EPS | |
Knight | | | $29.08 – $33.37 | | | $27.94 – $34.21 | |
Swift (pre-Reverse Stock Split) | | | $20.80 – $23.46 | | | $16.38 – $20.54(1) | |
Swift (post-Reverse Stock Split) | | | $28.89 – $32.58 | | | $22.76 – $28.53(1) | |
| | | Merger Exchange Ratio Reference Range | |
2018E and 2019E EBITDA | | | 0.892x – 1.155x | |
2018E and 2019E EPS(1) | | | 0.979x – 1.504x | |
| | | 1-day premium | | | 1-week premium | | | 4-week premium | |
Median | | | 17.2% | | | 17.4% | | | 19.3% | |
Mean | | | 19.0% | | | 19.9% | | | 23.9% | |
| | | Majority Category (24 total) | | | Non-Majority Category (8 total) | |
Median | | | 9.2% | | | 3.5% | |
Mean | | | 7.9% | | | 4.3% | |
Range | | | (9.3)% – 28.8% | | | (5.3)% – 20.5% | |
| | | Majority Category (5 total) | | | Non-Majority Category (2 total) | |
Median | | | 14.5% | | | 12.6% | |
Mean | | | 14.1% | | | 12.6% | |
Range | | | 9.4% – 21.2% | | | 4.7% – 20.5% | |
| | | Pre-Reverse Stock Split(1) | | | Post-Reverse Stock Split(2) | |
Precedent Stock-for-Stock Transactions | | | $24.02 – $26.03 | | | $33.37 – $36.15 | |
Precedent Merger-of-Equals Transactions | | | $20.02 – $23.02 | | | $27.81 – $31.98 | |
| | | Implied Equity Contribution | | | Merger Exchange Ratio | | ||||||||||||
| | | Knight | | | Swift | | ||||||||||||
Adjusted EBITDA(1) | | | | | | | | | | | | | | | | | | | |
2016A | | | | | 40.0% | | | | | | 60.0% | | | | | | 0.786x | | |
2017E | | | | | 39.2% | | | | | | 60.8% | | | | | | 0.761x | | |
2018E | | | | | 40.5% | | | | | | 59.5% | | | | | | 0.804x | | |
Adjusted Net Income(2) | | | | | | | | | | | | | | | | | | | |
2016A | | | | | 36.5% | | | | | | 63.5% | | | | | | 0.681x | | |
2017E | | | | | 38.3% | | | | | | 61.7% | | | | | | 0.735x | | |
2018E | | | | | 38.6% | | | | | | 61.4% | | | | | | 0.744x | | |
Year | | | Revenue | | | EBITDA | | | EBITA | | | GAAP Net Income | | | GAAP EPS | | |||||||||||||||
2017E | | | | $ | 1,215 | | | | | $ | 285 | | | | | $ | 170 | | | | | $ | 102 | | | | | $ | 1.28 | | |
2018E | | | | $ | 1,346 | | | | | $ | 325 | | | | | $ | 208 | | | | | $ | 126 | | | | | $ | 1.58 | | |
2019E | | | | $ | 1,449 | | | | | $ | 352 | | | | | $ | 231 | | | | | $ | 139 | | | | | $ | 1.77 | | |
Year | | | Revenue | | | EBITDA | | | EBITA | | | GAAP Net Income | | | GAAP EPS | | |||||||||||||||
2017E | | | | $ | 1,182 | | | | | $ | 263 | | | | | $ | 147 | | | | | $ | 88 | | | | | $ | 1.09 | | |
2018E | | | | $ | 1,323 | | | | | $ | 311 | | | | | $ | 193 | | | | | $ | 116 | | | | | $ | 1.44 | | |
2019E | | | | $ | 1,447 | | | | | $ | 338 | | | | | $ | 216 | | | | | $ | 130 | | | | | $ | 1.63 | | �� |
2020E | | | | $ | 1,533 | | | | | $ | 362 | | | | | $ | 232 | | | | | $ | 140 | | | | | $ | 1.77 | | |
2021E | | | | $ | 1,620 | | | | | $ | 377 | | | | | $ | 242 | | | | | $ | 146 | | | | | $ | 1.87 | | |
Year | | | Revenue | | | EBITDA | | | EBITA | | | Adjusted Net Income | | | Adjusted EPS | | |||||||||||||||
2017E | | | | $ | 4,149 | | | | | $ | 600 | | | | | $ | 299 | | | | | $ | 183 | | | | | $ | 1.36 | | |
2018E | | | | $ | 4,348 | | | | | $ | 667 | | | | | $ | 359 | | | | | $ | 226 | | | | | $ | 1.67 | | |
Year | | | Revenue | | | EBITDA | | | EBITA | | | Adjusted Net Income | | | Adjusted EPS | | |||||||||||||||
2019E | | | | $ | 4,414 | | | | | $ | 677 | | | | | $ | 370 | | | | | | N/A | | | | | | N/A | | |
Year | | | Revenue | | | EBITDA | | | EBITA | | | GAAP Net Income | | | Adjusted Net Income | | | GAAP EPS | | | Adjusted EPS | | |||||||||||||||||||||
2017E | | | | $ | 4,091 | | | | | $ | 541 | | | | | $ | 248 | | | | | $ | 131 | | | | | $ | 142 | | | | | $ | 0.98 | | | | | $ | 1.06 | | |
2018E | | | | $ | 4,265 | | | | | $ | 609 | | | | | $ | 310 | | | | | $ | 173 | | | | | $ | 184 | | | | | $ | 1.30 | | | | | $ | 1.38 | | |
2019E | | | | $ | 4,329 | | | | | $ | 631 | | | | | $ | 328 | | | | | $ | 187 | | | | | $ | 198 | | | | | $ | 1.40 | | | | | $ | 1.48 | | |
2020E | | | | $ | 4,446 | | | | | $ | 646 | | | | | $ | 334 | | | | | $ | 193 | | | | | $ | 203 | | | | | $ | 1.44 | | | | | $ | 1.52 | | |
2021E | | | | $ | 4,567 | | | | | $ | 666 | | | | | $ | 346 | | | | | $ | 202 | | | | | $ | 212 | | | | | $ | 1.51 | | | | | $ | 1.59 | | |
Forecast Scenario | | | Implied Value Per Share Range for Swift | |
Swift Street Consensus Case | | | $10.76 – $17.48 | |
Swift April standalone projections | | | $10.86 – $18.64 | |
Forecast Scenario | | | Implied Value Per Share Range for Knight | | | ||
Knight Street Consensus Case | | | $17.55 – $26.91 | | | ||
Adjusted Knight April standalone projections | | | $18.60 – $28.37 | | | | |
Forecast Scenario | | | Implied Range of Exchange Ratios | | | ||
Swift Street Consensus Case/Knight Street Consensus Case | | | 0.400x – 0.996x | | | ||
Swift April standalone projections/adjusted Knight April standalone projections | | | 0.383x – 1.002x | | | | |
Forecast Scenario | | | Estimated Swift 2020 Earnings Per Share | | | Swift’s Historical P/E Ratio Range | | | Implied Value Per Share Range for Swift | |
Swift Street Consensus Case | | | $1.91 | | | 10.0x – 17.8x | | | $15.59 – $24.86 | |
Swift April standalone projections | | | $1.91(1) | | | 10.0x – 17.8x | | | $14.23 – $24.94 | |
Forecast Scenario | | | Estimated Knight 2020 Earnings Per Share | | | Knight’s Historical P/E Ratio Range | | | Implied Value Per Share Range for Knight | |
Knight Street Consensus Case | | | $1.77 | | | 17.0x – 27.2x | | | $25.70 – $38.54 | |
Adjusted Knight April standalone projections | | | $1.75 | | | 17.0x – 27.2x | | | $24.11 – $38.08 | |
Forecast Scenario | | | Implied Range of Exchange Ratios | | | ||
Swift Street Consensus Case/Knight Street Consensus Case | | | 0.405x – 0.967x | | | ||
Swift April standalone projections/adjusted Knight April standalone projections | | | 0.374x – 1.034x | | | | |
Company | | | 2017E P/E | | | 2018E P/E | | | 2017E AV/EBITDA | | | 2018E AV/EBITDA | | ||||||||||||
Swift | | | | | 17.4x | | | | | | 13.3x | | | | | | 6.8x | | | | | | 6.1x | | |
Knight | | | | | 26.0x | | | | | | 22.0x | | | | | | 9.1x | | | | | | 8.3x | | |
Heartland Express, Inc. | | | | | 28.4x | | | | | | 24.7x | | | | | | 8.0x | | | | | | 7.4x | | |
Werner Enterprises, Inc. | | | | | 21.8x | | | | | | 18.2x | | | | | | 5.6x | | | | | | 5.2x | | |
Benchmark | | | Reference Range | | | Implied Value Per Share Range for Swift | |
2017E P/E | | | 15.0x – 19.0x | | | $17.25 – $21.85 | |
2018E P/E | | | 12.0x – 16.0x | | | $18.00 – $24.00 | |
2017E AV/EBITDA | | | 6.5x – 8.0x | | | $18.66 – $24.73 | |
2018E AV/EBITDA | | | 5.5x – 7.0x | | | $17.48 – $24.33 | |
Benchmark | | | Reference Range | | | Implied Value Per Share Range for Knight | |
2017E P/E | | | 21.5x – 28.5x | | | $25.38 – $33.64 | |
2018E P/E | | | 18.0x – 25.0x | | | $25.13 – $34.90 | |
2017E AV/EBITDA | | | 8.0x – 9.5x | | | $26.90 – $31.82 | |
2018E AV/EBITDA | | | 7.0x – 8.5x | | | $25.90 – $31.31 | |
Benchmark | | | Implied Range of Exchange Ratios | |
2017E P/E | | | 0.513x – 0.861x | |
2018E P/E | | | 0.516x – 0.955x | |
2017E AV/EBITDA | | | 0.586x – 0.919x | |
2018E AV/EBITDA | | | 0.558x – 0.939x | |
| | | Implied Equity Contribution | | | Implied Exchange Ratio | | ||||||||||||
| | | Swift | | | Knight | | ||||||||||||
2016A Revenue | | | | | 74% | | | | | | 26% | | | | | | 1.690x | | |
2016A EBITDA | | | | | 59% | | | | | | 41% | | | | | | 0.885x | | |
2016A Adjusted Net Income | | | | | 63% | | | | | | 37% | | | | | | 1.053x | | |
Trading Equity Value | | | | | 52% | | | | | | 48% | | | | | | 0.653x | | |
Trading Equity Value, including synergies(1) | | | | | 46% | | | | | | 43% | | | | | | 0.653x | | |
Swift Street Consensus Case/Knight Street Consensus Case | | | | | | | | | | | | | | | | | | | |
2018E Revenue | | | | | 73% | | | | | | 27% | | | | | | 1.620x | | |
2018E EBITDA | | | | | 61% | | | | | | 39% | | | | | | 0.930x | | |
2018E Adjusted Net Income | | | | | 65% | | | | | | 35% | | | | | | 1.105x | | |
Discounted Cash Flows | | | | | 51% | | | | | | 49% | | | | | | 0.640x | | |
Discounted Cash Flows, including synergies(2) | | | | | 43% | | | | | | 41% | | | | | | 0.640x | | |
Swift April standalone projections/adjusted Knight April standalone projections | | | | | | | | | | | | | | | | | | | |
2018E Revenue | | | | | 73% | | | | | | 27% | | | | | | 1.609x | | |
2018E EBITDA | | | | | 60% | | | | | | 40% | | | | | | 0.910x | | |
2018E Adjusted Net Income(3) | | | | | 61% | | | | | | 39% | | | | | | 0.952x | | |
Discounted Cash Flows | | | | | 51% | | | | | | 49% | | | | | | 0.628x | | |
Discounted Cash Flows, including synergies(4) | | | | | 43% | | | | | | 42% | | | | | | 0.628x | | |
| | | 2017E | | | 2018E | | | 2019E | | | 2020E | | | 2021E | | |||||||||||||||
Revenue | | | | $ | 4,347 | | | | | $ | 4,737 | | | | | $ | 5,066 | | | | | $ | 5,426 | | | | | $ | 5,776 | | |
EBITDA(1) | | | | $ | 592 | | | | | $ | 707 | | | | | $ | 797 | | | | | $ | 896 | | | | | $ | 973 | | |
GAAP EBIT | | | | $ | 288 | | | | | $ | 364 | | | | | $ | 412 | | | | | $ | 460 | | | | | $ | 503 | | |
Adjusted Net Income(2) | | | | $ | 174 | | | | | $ | 222 | | | | | $ | 251 | | | | | $ | 282 | | | | | $ | 308 | | |
Adjusted EPS(3) | | | | $ | 1.29 | | | | | $ | 1.63 | | | | | $ | 1.83 | | | | | $ | 2.05 | | | | | $ | 2.22 | | |
Capital Expenditures | | | | $ | 424 | | | | | $ | 359 | | | | | $ | 489 | | | | | $ | 390 | | | | | $ | 406 | | |
Capital Lease Payments | | | | $ | 69 | | | | | $ | 61 | | | | | $ | 97 | | | | | $ | 77 | | | | | $ | 152 | | |
Unlevered Free Cash Flow(4) | | | | $ | (24) | | | | | $ | 124 | | | | | $ | 58 | | | | | $ | 244 | | | | | $ | 215 | | |
| | | 2017E | | | 2018E | | | 2019E | | | 2020E | | | 2021E | | |||||||||||||||
Revenue | | | | $ | 4,372 | | | | | $ | 4,887 | | | | | $ | 5,375 | | | | | $ | 5,776 | | | | | $ | 6,127 | | |
EBITDA(1) | | | | $ | 614 | | | | | $ | 744 | | | | | $ | 867 | | | | | $ | 973 | | | | | $ | 1,037 | | |
GAAP EBIT | | | | $ | 311 | | | | | $ | 397 | | | | | $ | 488 | | | | | $ | 558 | | | | | $ | 615 | | |
Adjusted Net Income(2) | | | | $ | 189 | | | | | $ | 243 | | | | | $ | 300 | | | | | $ | 348 | | | | | $ | 387 | | |
Adjusted EPS(3) | | | | $ | 1.40 | | | | | $ | 1.79 | | | | | $ | 2.20 | | | | | $ | 2.52 | | | | | $ | 2.79 | | |
Capital Expenditures | | | | $ | 428 | | | | | $ | 397 | | | | | $ | 476 | | | | | $ | 351 | | | | | $ | 390 | | |
Capital Lease Payments | | | | $ | 69 | | | | | $ | 61 | | | | | $ | 90 | | | | | $ | 60 | | | | | $ | 117 | | |
Unlevered Free Cash Flow(4) | | | | $ | (15) | | | | | $ | 112 | | | | | $ | 114 | | | | | $ | 333 | | | | | $ | 275 | | |
| | | 2017E | | | 2018E | | | 2019E | | | 2020E | | | 2021E | | |||||||||||||||
Revenue | | | | $ | 4,191 | | | | | $ | 4,553 | | | | | $ | 4,892 | | | | | $ | 5,226 | | | | | $ | 5,543 | | |
EBITDA(1) | | | | $ | 532 | | | | | $ | 628 | | | | | $ | 709 | | | | | $ | 796 | | | | | $ | 850 | | |
GAAP EBIT | | | | $ | 239 | | | | | $ | 304 | | | | | $ | 360 | | | | | $ | 420 | | | | | $ | 462 | | |
Adjusted Net Income(2) | | | | $ | 144 | | | | | $ | 181 | | | | | $ | 216 | | | | | $ | 256 | | | | | $ | 283 | | |
Adjusted EPS(3) | | | | $ | 1.06 | | | | | $ | 1.34 | | | | | $ | 1.58 | | | | | $ | 1.86 | | | | | $ | 2.04 | | |
Capital Expenditures | | | | $ | 310 | | | | | $ | 391 | | | | | $ | 429 | | | | | $ | 345 | | | | | $ | 368 | | |
Capital Lease Payments | | | | $ | 75 | | | | | $ | 58 | | | | | $ | 87 | | | | | $ | 53 | | | | | $ | 108 | | |
Unlevered Free Cash Flow(4) | | | | $ | 7 | | | | | $ | 42 | | | | | $ | 56 | | | | | $ | 227 | | | | | $ | 188 | | |
| | | 2017E | | | 2018E | | | 2019E | | | 2020E | | | 2021E | | |||||||||||||||
Revenue | | | | $ | 1,201 | | | | | $ | 1,335 | | | | | $ | 1,450 | | | | | $ | 1,544 | | | | | $ | 1,626 | | |
Adjusted EBITDA(1) | | | | $ | 284 | | | | | $ | 320 | | | | | $ | 349 | | | | | $ | 376 | | | | | $ | 396 | | |
GAAP EBIT | | | ��� | $ | 167 | | | | | $ | 200 | | | | | $ | 219 | | | | | $ | 236 | | | | | $ | 247 | | |
GAAP Net Income | | | | $ | 100 | | | | | $ | 120 | | | | | $ | 132 | | | | | $ | 142 | | | | | $ | 149 | | |
GAAP EPS | | | | $ | 1.24 | | | | | $ | 1.51 | | | | | $ | 1.67 | | | | | $ | 1.82 | | | | | $ | 1.92 | | |
Capital Expenditures | | | | $ | 115 | | | | | $ | 135 | | | | | $ | 145 | | | | | $ | 154 | | | | | $ | 163 | | |
Unlevered Free Cash Flow(2) | | | | $ | 95 | | | | | $ | 94 | | | | | $ | 107 | | | | | $ | 119 | | | | | $ | 128 | | |
| | | 2017E | | | 2018E | | | 2019E | | | 2020E | | | 2021E | | |||||||||||||||
Revenue | | | | $ | 1,182 | | | | | $ | 1,323 | | | | | $ | 1,447 | | | | | $ | 1,532 | | | | | $ | 1,620 | | |
Adjusted EBITDA(1) | | | | $ | 263 | | | | | $ | 311 | | | | | $ | 338 | | | | | $ | 362 | | | | | $ | 377 | | |
GAAP EBIT | | | | $ | 148 | | | | | $ | 193 | | | | | $ | 213 | | | | | $ | 229 | | | | | $ | 229 | | |
GAAP Net Income | | | | $ | 88 | | | | | $ | 116 | | | | | $ | 128 | | | | | $ | 138 | | | | | $ | 138 | | |
GAAP EPS | | | | $ | 1.08 | | | | | $ | 1.43 | | | | | $ | 1.60 | | | | | $ | 1.75 | | | | | $ | 1.77 | | |
Capital Expenditures | | | | $ | 100 | | | | | $ | 130 | | | | | $ | 145 | | | | | $ | 153 | | | | | $ | 162 | | |
Unlevered Free Cash Flow(2) | | | | $ | 113 | | | | | $ | 105 | | | | | $ | 107 | | | | | $ | 117 | | | | | $ | 122 | | |
Name | | | Equity(1) | | | Other | | | Total | | |||||||||
David A. Jackson | | | | $ | 1,923,001 | | | | | | — | | | | | $ | 1,923,001 | | |
Adam W. Miller | | | | $ | 600,942 | | | | | | — | | | | | $ | 600,942 | | |
Kevin P. Knight | | | | $ | 4,685,621 | | | | | $ | 45,000(2) | | | | | $ | 4,730,621 | | |
Kevin Quast | | | | $ | 534,461 | | | | | | — | | | | | $ | 534,461 | | |
James E. Updike, Jr. | | | | $ | 534,461 | | | | | | — | | | | | $ | 534,461 | | |
Name | | | Swift Stock Options (#) | | | Swift Restricted Stock Awards (#) | | | Swift RSU Awards (#) | | | Swift PSU Awards (#) | | | Amount ($) | | |||||||||||||||
Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Richard Stocking | | | | | 44,628 | | | | | | — | | | | | | 18,973 | | | | | | 34,289 | | | | | $ | 1,464,965 | | |
Virginia Henkels | | | | | 16,576 | | | | | | — | | | | | | 7,047 | | | | | | 12,736 | | | | | $ | 544,134 | | |
Mickey R. Dragash | | | | | 6,837 | | | | | | — | | | | | | 9,326 | | | | | | 4,787 | | | | | $ | 379,791 | | |
Kenneth C. Runnels | | | | | 9,136 | | | | | | — | | | | | | 3,876 | | | | | | 7,029 | | | | | $ | 299,553 | | |
Steven Van Kirk | | | | | 6,919 | | | | | | — | | | | | | 2,841 | | | | | | 5,440 | | | | | $ | 223,062 | | |
Other Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Timothy Guin | | | | | 3,799 | | | | | | — | | | | | | 2,348 | | | | | | 2,660 | | | | | $ | 145,302 | | |
Chad E. Killebrew | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Cary Flanagan | | | | | — | | | | | | — | | | | | | 3,573 | | | | | | — | | | | | $ | 82,850 | | |
Directors(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Richard H. Dozer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Glenn F. Brown | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
José A. Cárdenas | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerry Moyes | | | | | 33,836 | | | | | | — | | | | | | — | | | | | | 78,912 | | | | | $ | 1,829,969 | | |
William F. Riley, III | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David N. Vander Ploeg | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name | | | Cash Severance ($)(1) | | | Equity ($)(2) | | | Retention Bonus ($)(4) | | | Perquisites/ Benefits ($)(3) | | | Total ($)(5) | | |||||||||||||||
Richard Stocking | | | | $ | 2,600,000 | | | | | $ | 1,591,256 | | | | | $ | 35,000 | | | | | $ | 267,253 | | | | | $ | 4,493,509 | | |
Virginia Henkels | | | | $ | 1,050,000 | | | | | $ | 555,430 | | | | | $ | 35,000 | | | | | $ | 68,117 | | | | | $ | 1,708,547 | | |
Mickey R. Dragash | | | | $ | 780,000 | | | | | $ | 407,325 | | | | | $ | 5,500 | | | | | $ | 51,650 | | | | | $ | 1,244,475 | | |
Kenneth C. Runnels | | | | | — | | | | | $ | 299,553 | | | | | | — | | | | | | — | | | | | $ | 299,553 | | |
Steven Van Kirk | | | | | — | | | | | $ | 223,062 | | | | | | — | | | | | | — | | | | | $ | 223,062 | | |
Name | | | Base Salary Severance ($) | | | Annual Cash Bonus Severance ($) | | | Pro Rata Bonus ($) | | | Total ($) | | ||||||||||||
Richard Stocking | | | | $ | 1,300,000 | | | | | $ | 1,300,000 | | | | | | — | | | | | $ | 2,600,000 | | |
Virginia Henkels | | | | $ | 600,000 | | | | | $ | 450,000 | | | | | | — | | | | | $ | 1,050,000 | | |
Mickey R. Dragash | | | | $ | 487,500 | | | | | $ | 292,500 | | | | | | — | | | | | $ | 780,000 | | |
Name | | | Swift Stock Options ($) | | | Swift Restricted Stock Awards ($) | | | Swift RSU Awards ($) | | | Swift PSU Awards ($) | | | Total ($) | | |||||||||||||||
Richard Stocking | | | | $ | 229,827 | | | | | $ | — | | | | | $ | 566,267 | | | | | $ | 795,162 | | | | | $ | 1,591,256 | | |
Virginia Henkels | | | | $ | 85,366 | | | | | $ | — | | | | | $ | 174,716 | | | | | $ | 295,348 | | | | | $ | 555,430 | | |
Mickey R. Dragash | | | | $ | 52,511 | | | | | $ | — | | | | | $ | 243,804 | | | | | $ | 111,010 | | | | | $ | 407,325 | | |
Kenneth C. Runnels | | | | $ | 46,674 | | | | | $ | — | | | | | $ | 89,877 | | | | | $ | 163,002 | | | | | $ | 299,553 | | |
Steven Van Kirk | | | | $ | 31,037 | | | | | $ | — | | | | | $ | 65,871 | | | | | $ | 126,154 | | | | | $ | 223,062 | | |
Name | | | PTO/Sick Pay ($) | | | Health & Welfare Benefits ($) | | | Total ($) | | |||||||||
Richard Stocking | | | | $ | 250,000 | | | | | $ | 17,253 | | | | | $ | 267,253 | | |
Virginia Henkels | | | | $ | 57,950 | | | | | $ | 10,167 | | | | | $ | 68,117 | | |
Mickey R. Dragash | | | | $ | 45,001 | | | | | $ | 6,649 | | | | | $ | 51,650 | | |
Name | | | Retention Bonus ($) | | |||
Richard Stocking | | | | $ | 35,000 | | |
Virginia Henkels | | | | $ | 35,000 | | |
Mickey R. Dragash | | | | $ | 5,500 | | |
(In thousands) | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||
Assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | | | $ | 44,777 | | | | $ | 61,770 | | | | $ | (34,003) | | | | | 4a | | | | $ | 72,544 | | | | | $ | 88,706 | | | | $ | 42,884 | | | | $ | (31,431) | | | | | 4a | | | | $ | 100,159 | | | ||||||||||
Cash and cash equivalents – restricted | | | | — | | | | | 54,945 | | | | | — | | | | | | | | | | 54,945 | | | | | | — | | | | | 58,994 | | | | | — | | | | | | | | | | 58,994 | | | ||||||||||
Restricted investments, held to maturity, amortized cost | | | | — | | | | | 22,859 | | | | | — | | | | | | | | | | 22,859 | | | | | | — | | | | | 22,025 | | | | | — | | | | | | | | | | 22,025 | | | ||||||||||
Trade receivables, net | | | | 127,580 | | | | | 396,251 | | | | | — | | | | | | | | | | 523,831 | | | | | | 126,988 | | | | | 401,261 | | | | | — | | | | | | | | | | 528,249 | | | ||||||||||
Equipment sales receivable | | | | 44 | | | | | 2,243 | | | | | — | | | | | | | | | | 2,287 | | | | | | 264 | | | | | 444 | | | | | — | | | | | | | | | | 708 | | | ||||||||||
Notes receivable, net | | | | 546 | | | | | 6,414 | | | | | — | | | | | | | | | | 6,960 | | | | | | 646 | | | | | 5,805 | | | | | — | | | | | | | | | | 6,451 | | | ||||||||||
Prepaid expenses | | | | 14,239 | | | | | 48,557 | | | | | — | | | | | | | | | | 62,796 | | | | | | 11,703 | | | | | 45,796 | | | | | — | | | | | | | | | | 57,499 | | | ||||||||||
Assets held for sale | | | | 12,550 | | | | | 5,333 | | | | | — | | | | | | | | | | 17,883 | | | | | | 13,845 | | | | | 1,652 | | | | | — | | | | | | | | | | 15,497 | | | ||||||||||
Other current assets | | | | 8,174 | | | | | 16,663 | | | | | — | | | | | | | | | | 24,837 | | | | | | 8,208 | | | | | 16,699 | | | | | — | | | | | | | | | | 24,907 | | | ||||||||||
Income tax receivable | | | | 2,263 | | | | | 272 | | | | | 17,678 | | | | | 4b | | | | | 20,213 | | | | | | 11,280 | | | | | 2,766 | | | | | 15,802 | | | | | 4b | | | | | 29,848 | | | ||||||||||
Total current assets | | | | 210,173 | | | | | 615,307 | | | | | (16,325) | | | | | | | | | | 809,155 | | | | | | 261,640 | | | | | 598,326 | | | | | (15,629) | | | | | | | | | | 844,337 | | | ||||||||||
Property and equipment, net | | | | 779,071 | | | | | 1,483,031 | | | | | 114,338 | | | | | 4c | | | | | 2,376,440 | | | | | | 759,896 | | | | | 1,458,572 | | | | | 81,385 | | | | | 4c | | | | | 2,299,853 | | | ||||||||||
Notes receivable, long-term | | | | 2,840 | | | | | 10,257 | | | | | — | | | | | | | | | | 13,097 | | | | | | 2,618 | | | | | 10,336 | | | | | — | | | | | | | | | | 12,954 | | | ||||||||||
Goodwill | | | | 47,026 | | | | | 253,256 | | | | | 2,166,740 | | | | | 4d | | | | | 2,467,022 | | | | | | 47,021 | | | | | 253,256 | | | | | 2,172,768 | | | | | 4d | | | | | 2,473,045 | | | ||||||||||
Intangible assets, net | | | | 2,450 | | | | | 262,101 | | | | | 757,899 | | | | | 4e | | | | | 1,022,450 | | | | | | 2,325 | | | | | 257,898 | | | | | 762,102 | | | | | 4e | | | | | 1,022,325 | | | ||||||||||
Other long-term assets and restricted cash and investments | | | | 28,193 | | | | | 13,254 | | | | | — | | | | | | | | | | 41,447 | | | | | | 25,908 | | | | | 12,300 | | | | | — | | | | | | | | | | 38,208 | | | ||||||||||
Total assets | | | $ | 1,069,753 | | | | $ | 2,637,206 | | | | $ | 3,022,652 | | | | | | | | | $ | 6,729,611 | | | | | $ | 1,099,408 | | | | $ | 2,590,688 | | | | $ | 3,000,626 | | | | | | | | | $ | 6,690,722 | | | ||||||||||
Liabilities and Stockholders’ Equity: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | | | $ | 10,884 | | | | $ | 97,689 | | | | $ | — | | | | | | | | | $ | 108,573 | | | | | $ | 12,775 | | | | $ | 113,205 | | | | $ | — | | | | | | | | | $ | 125,980 | | | ||||||||||
Accrued payroll and purchased transportation | | | | 22,144 | | | | | 74,535 | | | | | — | | | | | | | | | | 96,679 | | | | | | 27,008 | | | | | 74,922 | | | | | — | | | | | | | | | | 101,930 | | | ||||||||||
Accrued liabilities | | | | 20,185 | | | | | 104,956 | | | | | — | | | | | | | | | | 125,141 | | | | | | 21,429 | | | | | 88,009 | | | | | — | | | | | | | | | | 109,438 | | | ||||||||||
Claims accrual – current portion | | | | 19,476 | | | | | 86,191 | | | | | — | | | | | | | | | | 105,667 | | | | | | 19,905 | | | | | 87,275 | | | | | — | | | | | | | | | | 107,180 | | | ||||||||||
Current portion of long-term debt | | | | — | | | | | 5,946 | | | | | — | | | | | | | | | | 5,946 | | | | | | — | | | | | 3,419 | | | | | — | | | | | | | | | | 3,419 | | | ||||||||||
Current portion of capital lease obligations | | | | — | | | | | 60,060 | | | | | — | | | | | | | | | | 60,060 | | | | | | — | | | | | 45,194 | | | | | — | | | | | | | | | | 45,194 | | | ||||||||||
Dividend payable – current portion | | | | 290 | | | | | — | | | | | — | | | | | | | | | | 290 | | | | | | 287 | | | | | — | | | | | — | | | | | | | | | | 287 | | | ||||||||||
Total current liabilities | | | | 72,979 | | | | | 429,377 | | | | | — | | | | | | | | | | 502,356 | | | | | | 81,404 | | | | | 412,024 | | | | | — | | | | | | | | | | 493,428 | | | ||||||||||
Revolving line of credit | | | | — | | | | | 10,000 | | | | | — | | | | | | | | | | 10,000 | | | | | | — | | | | | — | | | | | — | | | | | | | | | | — | | | ||||||||||
Long-term debt | | | | — | | | | | 470,932 | | | | | — | | | | | | | | | | 470,932 | | | | | | — | | | | | 449,268 | | | | | — | | | | | | | | | | 449,268 | | | ||||||||||
Capital lease obligations, less current portion | | | | — | | | | | 151,468 | | | | | — | | | | | | | | | | 151,468 | | | | | | — | | | | | 143,648 | | | | | — | | | | | | | | | | 143,648 | | | ||||||||||
Accounts receivable securitization | | | | — | | | | | 304,374 | | | | | — | | | | | | | | | | 304,374 | | | | | | — | | | | | 294,464 | | | | | — | | | | | | | | | | 294,464 | | | ||||||||||
Claims accrual – long-term portion | | | | 13,886 | | | | | 174,662 | | | | | — | | | | | | | | | | 188,548 | | | | | | 14,167 | | | | | 173,269 | | | | | — | | | | | | | | | | 187,436 | | | ||||||||||
Long-term dividend payable and other liabilities | | | | 1,569 | | | | | 5,804 | | | | | — | | | | | | | | | | 7,373 | | | | | | 1,781 | | | | | — | | | | | — | | | | | | | | | | 1,781 | | | ||||||||||
Deferred tax liabilities | | | | 180,910 | | | | | 408,795 | | | | | 329,751 | | | | | 4f | | | | | 919,456 | | | | | | 183,518 | | | | | 398,083 | | | | | 317,960 | | | | | 4f | | | | | 899,561 | | | ||||||||||
Other liabilities | | | | — | | | | | 4,792 | | | | | — | | | | | | | | | | 4,792 | | | ||||||||||||||||||||||||||||||||||||
Total liabilities | | | | 269,344 | | | | | 1,955,412 | | | | | 329,751 | | | | | | | | | | 2,554,507 | | | | | | 280,870 | | | | | 1,875,548 | | | | | 317,960 | | | | | | | | | | 2,474,378 | | | ||||||||||
Stockholders’ equity: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | | | | — | | | | | — | | | | | — | | | | | | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | | | | | | — | | | ||||||||||
Common stock | | | | 804 | | | | | 1,332 | | | | | (363) | | | | | 4g | | | | | 1,773 | | | | | | 806 | | | | | 1,339 | | | | | (369) | | | | | 4g | | | | | 1,776 | | | ||||||||||
Additional paid-in capital | | | | 226,779 | | | | | 688,234 | | | | | 2,717,243 | | | | | 4g | | | | | 3,632,256 | | | | | | 231,551 | | | | | 695,276 | | | | | 2,730,931 | | | | | 4g | | | | | 3,657,758 | | | ||||||||||
Retained earnings (accumulated deficit) | | | | 570,826 | | | | | (7,874) | | | | | (23,979) | | | | | 4h | | | | | 538,973 | | | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | | | | — | | | | | — | | | | | — | | | | | | | | | | — | | | ||||||||||||||||||||||||||||||||||||
Retained earnings | | | | 583,988 | | | | | 18,423 | | | | | (47,896) | | | | | 4h | | | | | 554,515 | | | ||||||||||||||||||||||||||||||||||||
Total company stockholders’ equity | | | | 798,409 | | | | | 681,692 | | | | | 2,692,901 | | | | | | | | | | 4,173,002 | | | | | | 816,345 | | | | | 715,038 | | | | | 2,682,666 | | | | | | | | | | 4,214,049 | | | ||||||||||
Noncontrolling interest | | | | 2,000 | | | | | 102 | | | | | — | | | | | | | | | | 2,102 | | | | | | 2,193 | | | | | 102 | | | | | — | | | | | | | | | | 2,295 | | | ||||||||||
Total stockholders’ equity | | | | 800,409 | | | | | 681,794 | | | | | 2,692,901 | | | | | | | | | | 4,175,104 | | | | | | 818,538 | | | | | 715,140 | | | | | 2,682,666 | | | | | | | | | | 4,216,344 | | | ||||||||||
Total liabilities and stockholders’ equity | | | $ | 1,069,753 | | | | $ | 2,637,206 | | | | $ | 3,022,652 | | | | | | | | | $ | 6,729,611 | | | | | $ | 1,099,408 | | | | $ | 2,590,688 | | | | $ | 3,000,626 | | | | | | | | | $ | 6,690,722 | | | |
(In thousands, except per share data) | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||
Revenue, before fuel surcharge | | | $ | 244,980 | | | | $ | 871,090 | | | | $ | — | | | | | | | | | $ | 1,116,070 | | | | | $ | 492,002 | | | | $ | 1,770,035 | | | | $ | — | | | | | | | | | $ | 2,262,037 | | | ||||||||||
Fuel surcharge | | | | 26,202 | | | | | 92,741 | | | | | — | | | | | | | | | | 118,943 | | | | | | 52,423 | | | | | 186,854 | | | | | — | | | | | | | | | | 239,277 | | | ||||||||||
Total revenue | | | | 271,182 | | | | | 963,831 | | | | | — | | | | | | | | | | 1,235,013 | | | | | | 544,425 | | | | | 1,956,889 | | | | | — | | | | | | | | | | 2,501,314 | | | ||||||||||
Operating expenses: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries, wages and benefits | | | | 82,510 | | | | | 283,338 | | | | | — | | | | | | | | | | 365,848 | | | | | | 162,454 | | | | | 565,661 | | | | | — | | | | | | | | | | 728,115 | | | ||||||||||
Fuel | | | | 35,232 | | | | | 94,961 | | | | | — | | | | | | | | | | 130,193 | | | | | | 68,952 | | | | | 189,446 | | | | | — | | | | | | | | | | 258,398 | | | ||||||||||
Operations and maintenance | | | | 20,653 | | | | | 70,129 | | | | | — | | | | | | | | | | 90,782 | | | | | | 41,249 | | | | | 147,406 | | | | | — | | | | | | | | | | 188,655 | | | ||||||||||
Insurance and claims | | | | 8,571 | | | | | 50,176 | | | | | — | | | | | | | | | | 58,747 | | | | | | 16,865 | | | | | 102,246 | | | | | — | | | | | | | | | | 119,111 | | | ||||||||||
Operating taxes and licenses | | | | 4,431 | | | | | 18,166 | | | | | — | | | | | | | | | | 22,597 | | | | | | 9,046 | | | | | 35,904 | | | | | — | | | | | | | | | | 44,950 | | | ||||||||||
Communications | | | | 1,186 | | | | | 5,028 | | | | | — | | | | | | | | | | 6,214 | | | | | | 2,204 | | | | | 9,846 | | | | | — | | | | | | | | | | 12,050 | | | ||||||||||
Depreciation expense | | | | 29,557 | | | | | 67,769 | | | | | (26) | | | | | 5a | | | | | 97,300 | | | | | | 58,803 | | | | | 130,122 | | | | | 552 | | | | | 5a | | | | | 189,477 | | | ||||||||||
Amortization of intangibles | | | | 125 | | | | | 4,204 | | | | | 7,796 | | | | | 5b | | | | | 12,125 | | | | | | 250 | | | | | 8,407 | | | | | 15,593 | | | | | 5b | | | | | 24,250 | | | ||||||||||
Rental expense | | | | 1,323 | | | | | 55,694 | | | | | — | | | | | | | | | | 57,017 | | | | | | 2,551 | | | | | 113,079 | | | | | — | | | | | | | | | | 115,630 | | | ||||||||||
Purchased transportation | | | | 58,625 | | | | | 265,511 | | | | | — | | | | | | | | | | 324,136 | | | | | | 116,924 | | | | | 540,118 | | | | | — | | | | | | | | | | 657,042 | | | ||||||||||
Impairment | | | | — | | | | | 187 | | | | | — | | | | | | | | | | 187 | | | ||||||||||||||||||||||||||||||||||||
Miscellaneous operating expenses | | | | 6,331 | | | | | 35,427 | | | | | (3,160) | | | | | 5c | | | | | 38,598 | | | | | | 9,901 | | | | | 43,834 | | | | | — | | | | | | | | | | 53,735 | | | ||||||||||
Merger-related costs | | | | 4,178 | | | | | 10,201 | | | | | (14,379) | | | | | 5c | | | | | — | | | ||||||||||||||||||||||||||||||||||||
Total operating expenses | | | | 248,544 | | | | | 950,403 | | | | | 4,610 | | | | | | | | | | 1,203,557 | | | | | | 493,377 | | | | | 1,896,457 | | | | | 1,766 | | | | | | | | | | 2,391,600 | | | ||||||||||
Income from operations | | | | 22,638 | | | | | 13,428 | | | | | (4,610) | | | | | | | | | | 31,456 | | | | | | 51,048 | | | | | 60,432 | | | | | (1,766) | | | | | | | | | | 109,714 | | | ||||||||||
Interest income | | | | 58 | | | | | 488 | | | | | — | | | | | | | | | | 546 | | | | | | 189 | | | | | 1,069 | | | | | — | | | | | | | | | | 1,258 | | | ||||||||||
Interest expense | | | | (82) | | | | | (7,521) | | | | | — | | | | | | | | | | (7,603) | | | | | | (136) | | | | | (14,383) | | | | | — | | | | | | | | | | (14,519) | | | ||||||||||
Other income | | | | 722 | | | | | 1,183 | | | | | — | | | | | | | | | | 1,905 | | | | | | 1,322 | | | | | 2,378 | | | | | — | | | | | | | | | | 3,700 | | | ||||||||||
Other income (expense) | | | | 698 | | | | | (5,850) | | | | | — | | | | | | | | | | (5,152) | | | | | | 1,375 | | | | | (10,936) | | | | | — | | | | | | | | | | (9,561) | | | ||||||||||
Income before income taxes | | | | 23,336 | | | | | 7,578 | | | | | (4,610) | | | | | | | | | | 26,304 | | | ||||||||||||||||||||||||||||||||||||
Income before income tax | | | | 52,423 | | | | | 49,496 | | | | | (1,766) | | | | | | | | | | 100,153 | | | ||||||||||||||||||||||||||||||||||||
Income taxes | | | | 8,230 | | | | | 2,371 | | | | | (1,752) | | | | | 5d | | | | | 8,849 | | | | | | 19,058 | | | | | 17,992 | | | | | (2,186) | | | | | 5d | | | | | 34,864 | | | ||||||||||
Net income | | | | 15,106 | | | | | 5,207 | | | | | (2,858) | | | | | | | | | | 17,455 | | | | | | 33,365 | | | | | 31,504 | | | | | 420 | | | | | | | | | | 65,289 | | | ||||||||||
Net income attributable to noncontrolling interest | | | | (230) | | | | | — | | | | | — | | | | | | | | | | (230) | | | | | | (518) | | | | | — | | | | | — | | | | | | | | | | (518) | | | ||||||||||
Net income attributable to the applicable company | | | $ | 14,876 | | | | $ | 5,207 | | | | $ | (2,858) | | | | | | | | | $ | 17,225 | | | | | $ | 32,847 | | | | $ | 31,504 | | | | $ | 420 | | | | | | | | | $ | 64,771 | | | ||||||||||
Net income per share: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | | | $ | 0.19 | | | | $ | 0.04 | | | | | | | | | | | | | | $ | 0.10 | | | | | $ | 0.41 | | | | $ | 0.24 | | | | | | | | | | | | | | $ | 0.37 | | | ||||||||||
Diluted | | | $ | 0.18 | | | | $ | 0.04 | | | | | | | | | | | | | | $ | 0.10 | | | | | $ | 0.40 | | | | $ | 0.23 | | | | | | | | | | | | | | $ | 0.36 | | | ||||||||||
Weighted average shares outstanding: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | | | | 80,310 | | | | | 133,147 | | | | | (36,242) | | | | | 5e | | | | | 177,215 | | | | | | 80,416 | | | | | 133,347 | | | | | (36,355) | | | | | 5e | | | | | 177,408 | | | ||||||||||
Diluted | | | | 81,255 | | | | | 134,089 | | | | | (37,504) | | | | | 5e | | | | | 177,840 | | | | | | 81,276 | | | | | 134,365 | | | | | (37,563) | | | | | 5e | | | | | 178,078 | | |
(In thousands, except per share data) | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | | Knight Transportation, Inc. | | Swift Transportation Company | | Acquisition Adjustments | | Note Reference | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||
Revenue, before fuel surcharge | | | $ | 1,028,148 | | | | $ | 3,722,863 | | | | $ | — | | | | | | | | | $ | 4,751,011 | | | | | $ | 1,028,148 | | | | $ | 3,722,863 | | | | $ | — | | | | | | | | | $ | 4,751,011 | | | ||||||||||
Fuel surcharge | | | | 89,886 | | | | | 308,654 | | | | | — | | | | | | | | | | 398,540 | | | | | | 89,886 | | | | | 308,654 | | | | | — | | | | | | | | | | 398,540 | | | ||||||||||
Total revenue | | | | 1,118,034 | | | | | 4,031,517 | | | | | — | | | | | | | | | | 5,149,551 | | | | | | 1,118,034 | | | | | 4,031,517 | | | | | — | | | | | | | | | | 5,149,551 | | | ||||||||||
Operating expenses: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries, wages and benefits | | | | 333,929 | | | | | 1,148,610 | | | | | — | | | | | | | | | | 1,482,539 | | | | | | 333,929 | | | | | 1,148,610 | | | | | — | | | | | | | | | | 1,482,539 | | | ||||||||||
Fuel | | | | 129,696 | | | | | 345,281 | | | | | — | | | | | | | | | | 474,977 | | | | | | 129,696 | | | | | 345,281 | | | | | — | | | | | | | | | | 474,977 | | | ||||||||||
Operations and maintenance | | | | 76,246 | | | | | 298,604 | | | | | — | | | | | | | | | | 374,850 | | | | | | 76,246 | | | | | 298,604 | | | | | — | | | | | | | | | | 374,850 | | | ||||||||||
Insurance and claims | | | | 34,441 | | | | | 192,733 | | | | | — | | | | | | | | | | 227,174 | | | | | | 34,441 | | | | | 192,733 | | | | | — | | | | | | | | | | 227,174 | | | ||||||||||
Operating taxes and licenses | | | | 18,728 | | | | | 74,753 | | | | | — | | | | | | | | | | 93,481 | | | | | | 18,728 | | | | | 74,753 | | | | | — | | | | | | | | | | 93,481 | | | ||||||||||
Communications | | | | 4,182 | | | | | 16,804 | | | | | — | | | | | | | | | | 20,986 | | | | | | 4,182 | | | | | 16,804 | | | | | — | | | | | | | | | | 20,986 | | | ||||||||||
Depreciation expense | | | | 115,660 | | | | | 267,134 | | | | | (105) | | | | | 6a | | | | | 382,689 | | | | | | 115,660 | | | | | 267,134 | | | | | 1,104 | | | | | 6a | | | | | 383,898 | | | ||||||||||
Amortization of intangibles | | | | 500 | | | | | 16,814 | | | | | 31,186 | | | | | 6b | | | | | 48,500 | | | | | | 500 | | | | | 16,814 | | | | | 31,186 | | | | | 6b | | | | | 48,500 | | | ||||||||||
Rental expense | | | | 5,035 | | | | | 226,258 | | | | | — | | | | | | | | | | 231,293 | | | | | | 5,035 | | | | | 226,258 | | | | | — | | | | | | | | | | 231,293 | | | ||||||||||
Purchased transportation | | | | 233,863 | | | | | 1,116,709 | | | | | — | | | | | | | | | | 1,350,572 | | | | | | 233,863 | | | | | 1,116,709 | | | | | — | | | | | | | | | | 1,350,572 | | | ||||||||||
Impairment | | | | — | | | | | 807 | | | | | — | | | | | | | | | | 807 | | | | | | — | | | | | 807 | | | | | — | | | | | | | | | | 807 | | | ||||||||||
Miscellaneous operating expenses | | | | 17,275 | | | | | 84,998 | | | | | (160) | | | | | 6c | | | | | 102,113 | | | | | | 17,275 | | | | | 84,998 | | | | | (160) | | | | | 6c | | | | | 102,113 | | | ||||||||||
Total operating expenses | | | | 969,555 | | | | | 3,789,505 | | | | | 30,921 | | | | | | | | | | 4,789,981 | | | | | | 969,555 | | | | | 3,789,505 | | | | | 32,130 | | | | | | | | | | 4,791,190 | | | ||||||||||
Income from operations | | | | 148,479 | | | | | 242,012 | | | | | (30,921) | | | | | | | | | | 359,570 | | | | | | 148,479 | | | | | 242,012 | | | | | (32,130) | | | | | | | | | | 358,361 | | | ||||||||||
Interest income | | | | 309 | | | | | 2,634 | | | | | — | | | | | | | | | | 2,943 | | | | | | 309 | | | | | 2,634 | | | | | — | | | | | | | | | | 2,943 | | | ||||||||||
Interest expense | | | | (897) | | | | | (30,598) | | | | | — | | | | | | | | | | (31,495) | | | | | | (897) | | | | | (30,598) | | | | | — | | | | | | | | | | (31,495) | | | ||||||||||
Other income | | | | 4,939 | | | | | 921 | | | | | — | | | | | | | | | | 5,860 | | | | | | 4,939 | | | | | 921 | | | | | — | | | | | | | | | | 5,860 | | | ||||||||||
Other income (expense) | | | | 4,351 | | | | | (27,043) | | | | | — | | | | | | | | | | (22,692) | | | | | | 4,351 | | | | | (27,043) | | | | | — | | | | | | | | | | (22,692) | | | ||||||||||
Income before income taxes | | | | 152,830 | | | | | 214,969 | | | | | (30,921) | | | | | | | | | | 336,878 | | | ||||||||||||||||||||||||||||||||||||
Income before income tax | | | | 152,830 | | | | | 214,969 | | | | | (32,130) | | | | | | | | | | 335,669 | | | ||||||||||||||||||||||||||||||||||||
Income taxes | | | | 57,592 | | | | | 65,702 | | | | | (11,750) | | | | | 6d | | | | | 111,544 | | | | | | 57,592 | | | | | 65,702 | | | | | (12,209) | | | | | 6d | | | | | 111,085 | | | ||||||||||
Net income | | | | 95,238 | | | | | 149,267 | | | | | (19,171) | | | | | | | | | | 225,334 | | | | | | 95,238 | | | | | 149,267 | | | | | (19,921) | | | | | | | | | | 224,584 | | | ||||||||||
Net income attributable to noncontrolling interest | | | | (1,375) | | | | | — | | | | | — | | | | | | | | | | (1,375) | | | | | | (1,375) | | | | | — | | | | | — | | | | | | | | | | (1,375) | | | ||||||||||
Net income attributable to the applicable company | | | $ | 93,863 | | | | $ | 149,267 | | | | $ | (19,171) | | | | | | | | | $ | 223,959 | | | | | $ | 93,863 | | | | $ | 149,267 | | | | $ | (19,921) | | | | | | | | | $ | 223,209 | | | ||||||||||
Net income per share: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | | | $ | 1.17 | | | | $ | 1.11 | | | | | | | | | | | | | | $ | 1.26 | | | | | $ | 1.17 | | | | $ | 1.11 | | | | | | | | | | | | | | $ | 1.26 | | | ||||||||||
Diluted | | | $ | 1.16 | | | | $ | 1.10 | | | | | | | | | | | | | | $ | 1.26 | | | | | $ | 1.16 | | | | $ | 1.10 | | | | | | | | | | | | | | $ | 1.25 | | | ||||||||||
Weighted average shares outstanding: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | | | | 80,362 | | | | | 134,139 | | | | | (37,234) | | | | | 6e | | | | | 177,267 | | | | | | 80,362 | | | | | 134,139 | | | | | (37,147) | | | | | 6e | | | | | 177,354 | | | ||||||||||
Diluted | | | | 81,228 | | | | | 135,494 | | | | | (38,909) | | | | | 6e | | | | | 177,813 | | | | | | 81,228 | | | | | 135,494 | | | | | (38,692) | | | | | 6e | | | | | 178,030 | | |
(In thousands) | | Amount | | Note | | | Amount | | Note | | ||||||||||||||||
Knight Reclassifications | | | | | ||||||||||||||||||||||
Income Statement for the three months ended March 31, 2017 | | | ||||||||||||||||||||||||
Income Statement for the six months ended June 30, 2017 | | | ||||||||||||||||||||||||
Reclass depreciation expense to amortization of intangibles | | | $ | 125 | | | | | | $ | 250 | | | | ||||||||||||
Reclass miscellaneous operating expenses to rent expense | | | | 1,323 | | | | | | | 2,551 | | | | ||||||||||||
Income Statement for the year ended December 31, 2016 | | | | | ||||||||||||||||||||||
Reclass depreciation expense to amortization of intangibles | | | | 500 | | | | | | | 500 | | | | ||||||||||||
Reclass miscellaneous operating expenses to rent expense | | | | 5,035 | | | | | | | 5,035 | | | | ||||||||||||
Balance Sheet as of March 31, 2017 | | | ||||||||||||||||||||||||
Balance Sheet as of June 30, 2017 | | | ||||||||||||||||||||||||
Reclass trade receivables, net to equipment sales receivables | | | | 44 | | | | | | | 264 | | | | ||||||||||||
Swift Reclassifications | | | | | ||||||||||||||||||||||
Income Statement for the three months ended March 31, 2017 | | | ||||||||||||||||||||||||
Income Statement for the six months ended June 30, 2017 | | | ||||||||||||||||||||||||
Reclass general and administrative expense to miscellaneous operating expenses | | | | 33,990 | | | | | (1) | | | | | | 44,665 | | | | | (1) | | | ||||
Reclass utilities expense to miscellaneous operating expenses | | | | 3,475 | | | | | (1) | | | | | | 6,802 | | | | | (1) | | | ||||
Reclass (gain) on disposal of PP&E to miscellaneous operating expenses | | | | (4,195) | | | | | | | (7,633) | | | | ||||||||||||
Reclass M&A transaction costs from other income to miscellaneous operating expenses | | | | 2,157 | | | | |||||||||||||||||||
Reclass M&A transaction costs from salaries, wages and employee benefits, purchase transportation, and other income to merger-related costs | | | | 10,201 | | | | |||||||||||||||||||
Income Statement for the year ended December 31, 2016 | | | | | ||||||||||||||||||||||
Reclass general and administrative expense to miscellaneous operating expenses | | | | 91,364 | | | | | (1) | | | | | | 91,364 | | | | | (1) | | | ||||
Reclass utilities expense to miscellaneous operating expenses | | | | 11,919 | | | | | (1) | | | | | | 11,919 | | | | | (1) | | | ||||
Reclass (gain) on disposal of PP&E to miscellaneous operating expenses | | | | (18,285) | | | | | | | (18,285) | | | | ||||||||||||
Reclass settlements to other income | | | | (3,000) | | | | | | | (3,000) | | | | ||||||||||||
Balance Sheet as of March 31, 2017 | | | ||||||||||||||||||||||||
Balance Sheet as of June 30, 2017 | | | ||||||||||||||||||||||||
Reclass other assets to notes receivable, long-term | | | | 10,257 | | | | | | | 10,336 | | | | ||||||||||||
Reclass accounts payable to accrued payroll and purchased transportation | | | | 16,459 | | | | | | | 20,526 | | | | ||||||||||||
Reclass accrued liabilities to accrued payroll and purchased transportation | | | | 58,076 | | | | | | | | | | | 54,396 | | | | | | | |
(In thousands) | | | | | | | Note | | ||||||||||||||||||
(USD in thousands) | | | | | | | Note | | ||||||||||||||||||
Consideration transferred: | | | | | ||||||||||||||||||||||
Swift Converted Stock (0.720 Conversion Ratio) | | | $ | 3,404,631 | | | | | (1) | | | | | $ | 3,426,784 | | | | | (1) | | | ||||
Total consideration transferred | | | | 3,404,631 | | | | | | | 3,426,784 | | | | ||||||||||||
Rollover equity from NCI | | | | 102 | | | | | (2) | | | | | | 102 | | | | | (2) | | | ||||
Total value to allocate | | | $ | 3,404,733 | | | | | | $ | 3,426,886 | | | | ||||||||||||
Preliminary purchase price allocation: | | | | | ||||||||||||||||||||||
Current assets: | | | | | ||||||||||||||||||||||
Cash and cash equivalents | | | $ | 61,770 | | | | | | $ | 42,884 | | | | ||||||||||||
Cash and cash equivalents – restricted | | | | 54,945 | | | | | | | 58,994 | | | | ||||||||||||
Restricted investments, held to maturity, amortized cost | | | | 22,859 | | | | | | | 22,025 | | | | ||||||||||||
Trade receivables, net | | | | 396,251 | | | | | | | 401,261 | | | | ||||||||||||
Equipment sales receivable | | | | 2,243 | | | | | | | 444 | | | | ||||||||||||
Notes receivable, net | | | | 6,414 | | | | | | | 5,805 | | | | ||||||||||||
Prepaid expenses | | | | 48,557 | | | | | | | 45,796 | | | | ||||||||||||
Assets held for sale | | | | 5,333 | | | | | | | 1,652 | | | | ||||||||||||
Other current assets | | | | 16,663 | | | | | | | 16,699 | | | | ||||||||||||
Income tax receivable | | | | 12,655 | | | | | | | 13,525 | | | | ||||||||||||
Total current assets | | | | 627,690 | | | | | | | 609,085 | | | | ||||||||||||
Property and equipment, net | | | | 1,597,369 | | | | | (3) | | | | | | 1,539,957 | | | | | (3) | | | ||||
Notes receivable, long-term | | | | 10,257 | | | | | | | 10,336 | | | | ||||||||||||
Goodwill | | | | 2,419,996 | | | | | (4) | | | | | | 2,426,024 | | | | | (4) | | | ||||
Intangible assets, net | | | | 1,020,000 | | | | | (5) | | | | | | 1,020,000 | | | | | (5) | | | ||||
Other long-term assets and restricted cash and investments | | | | 13,254 | | | | | | | 12,300 | | | | ||||||||||||
Total assets | | | $ | 5,688,566 | | | | | | $ | 5,617,702 | | | | ||||||||||||
Liabilities: | | | | | ||||||||||||||||||||||
Current liabilities: | | | | | ||||||||||||||||||||||
Accounts payable | | | $ | 97,689 | | | | | | $ | 113,205 | | | | ||||||||||||
Accrued payroll and purchased transportation | | | | 74,535 | | | | | | | 74,922 | | | | ||||||||||||
Accrued liabilities | | | | 104,956 | | | | | | | 88,009 | | | | ||||||||||||
Claims accrual – current portion | | | | 86,191 | | | | | | | 87,275 | | | | ||||||||||||
Current portion of long-term debt | | | | 5,946 | | | | | | | 3,419 | | | | ||||||||||||
Current portion of capital lease obligations | | | | 60,060 | | | | | | | 45,194 | | | | ||||||||||||
Dividend payable – current portion | | | | — | | | | | | | | |||||||||||||||
Total current liabilities | | | | 429,377 | | | | | | | 412,024 | | | | ||||||||||||
Revolving line of credit | | | | 10,000 | | | | | | | — | | | | ||||||||||||
Long-term debt | | | | 470,932 | | | | | | | 449,268 | | | | ||||||||||||
Capital lease obligations, less current portion | | | | 151,468 | | | | | | | 143,648 | | | | ||||||||||||
Accounts receivable securitization | | | | 304,374 | | | | | | | 294,464 | | | | ||||||||||||
Claims accrual – long-term portion | | | | 174,662 | | | | | | | 173,269 | | | | ||||||||||||
Long-term dividend payable and other liabilities | | | | 5,804 | | | | | | | — | | | | ||||||||||||
Deferred tax liabilities | | | | 737,216 | | | | | | | 713,350 | | | | ||||||||||||
Other liabilities | | | | 4,792 | | | | | | | | |||||||||||||||
Total liabilities | | | | 2,283,833 | | | | | | | 2,190,815 | | | | ||||||||||||
Total net assets | | | $ | 3,404,733 | | | | | | $ | 3,426,887 | | | | ||||||||||||
Stockholders’ equity: | | | | | ||||||||||||||||||||||
Preferred stock | | | $ | — | | | | | | $ | — | | | | ||||||||||||
Common stock | | | | 966 | | | | | | | 968 | | | | ||||||||||||
Additional paid-in capital | | | | 3,403,665 | | | | | | | 3,425,816 | | | | ||||||||||||
Accumulated other comprehensive income | | | | — | | | | | | | | |||||||||||||||
Retained earnings | | | | — | | | | | | | — | | | | ||||||||||||
Noncontrolling interest | | | | 102 | | | | | | | 102 | | | | ||||||||||||
Total stockholders’ equity | | | | 3,404,733 | | | | | | | 3,426,886 | | | | ||||||||||||
Total liabilities and stockholders’ equity | | | $ | 5,688,566 | | | | | | $ | 5,617,702 | | | | |
(In thousands) | | | Estimated Life (years) | | | Estimated Fair Value | | ||||||
Customer relationships | | | 15 | | | | $ | 720,000 | | | |||
Tradename | | | | | indefinite | | | | | | 300,000 | | |
Total identifiable intangible assets | | | | | | | | | | $ | 1,020,000 | | |
|
(In thousands) | | March 31, 2017 | | | June 30, 2017 | | ||||||||
Eliminate historical Swift goodwill | | | $ | (253,256) | | | | | $ | (253,256) | | | ||
Goodwill from preliminary purchase allocation | | | | 2,419,996 | | | | | | 2,426,024 | | | ||
Total goodwill adjustment | | | $ | 2,166,740 | | | | | $ | 2,172,768 | | | |
(In thousands) | | March 31, 2017 | | | June 30, 2017 | | ||||||||
Eliminate historical Swift intangible assets | | | $ | (262,101) | | | | | $ | (257,898) | | | ||
Intangible assets from preliminary purchase allocation | | | | 1,020,000 | | | | | | 1,020,000 | | | ||
Total intangible assets adjustment | | | $ | 757,899 | | | | | $ | 762,102 | | | |
(In thousands, except per share data) | | March 31, 2017 | | |||||||||||
Eliminate historical Swift shares, par $0.01 | | | $ | (1,332) | | | ||||||||
(In thousands) | | June 30, 2017 | | |||||||||||
Eliminate historical Swift common stock, par $0.01 | | | $ | (1,339) | | | ||||||||
Issuance of new combined company shares | | | | 966 | | | | | | 968 | | | ||
Vesting of Knight PSU’s due to change in control | | | | 3 | | | | | | 2 | | | ||
Total common stock adjustment | | | $ | (363) | | | | | $ | (369) | | | ||
Eliminate historical Swift additional paid-in capital | | | $ | (688,234) | | | | | $ | (695,276) | | | ||
Issuance of new combined company shares | | | | 3,403,665 | | | | | | 3,425,816 | | | ||
Vesting of Knight PSU’s due to change in control | | | | 1,812 | | | | | | 391 | | | ||
Total additional paid-in capital adjustment | | | $ | 2,717,243 | | | | | $ | 2,730,931 | | | |
(In thousands) | | | March 31, 2017 | | |||
Eliminate historical Swift accumulated deficit | | | | $ | 7,874 | | |
Adjustment for transaction costs | | | | | (34,003) | | |
Adjustment for Knight PSU’s vested due to change in control | | | | | (1,815) | | |
Adjustment for deferred tax liabilities | | | | | 3,965 | | |
Total retained earnings adjustment | | | | $ | (23,979) | | |
|
(In thousands) | | | June 30, 2017 | | |||
Eliminate historical Swift retained earnings | | | | $ | (18,423) | | |
Adjustment for transaction costs | | | | | (31,431) | | |
Adjustment for Knight PSU’s vested due to change in control | | | | | (393) | | |
Adjustment for deferred tax liabilities | | | | | 2,350 | | |
Total retained earnings adjustment | | | | $ | (47,896) | | |
|
(In thousands) | | Three Months Ended March 31, 2017 | | | Six Months Ended June 30, 2017 | | ||||||||
Eliminate historical intangible amortization expense | | | $ | (4,204) | | | ||||||||
Eliminated historical intangible amortization expense | | | $ | (8,407) | | | ||||||||
Pro forma amortization expense | | | | 12,000 | | | | | | 24,000 | | | ||
Amortization expense adjustment | | | $ | 7,796 | | | | | $ | 15,593 | | | |
(In thousands) | | Year Ended December 31, | | | Year Ended December 31, 2016 | | ||||||||
Eliminate historical intangible amortization expense | | | $ | (16,814) | | | ||||||||
Eliminated historical intangible amortization expense | | | $ | (16,814) | | | ||||||||
Pro forma amortization expense | | | | 48,000 | | | | | | 48,000 | | | ||
Amortization expense adjustment | | | $ | 31,186 | | | | | $ | 31,186 | | | |
Knight SEC Filings (File No. 001-32396) | | | Period | |
Annual Report on Form 10-K | | | Fiscal year ended December 31, 2016 | |
Proxy Statement on Schedule 14A | | | Filed on March 31, 2017 | |
Quarterly Reports on Form 10-Q | | | Fiscal quarter ended June 30, 2017 and March 31, 2017 | |
Current Reports on Form 8-K | | | Filed on June 6, 2017, May 16, 2017, May 12, 2017, April 13, 2017, April 10, 2017 (second filing), and February 2, 2017 | |
Any description of Knight shares contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description | | | | |
Swift SEC Filings (File No. 001-35007) | | | Period | |
Annual Report on Form 10-K | | | Fiscal year ended December 31, 2016 | |
Proxy Statement on Schedule 14A | | | Filed on April 14, 2017 | |
Quarterly Reports on Form 10-Q | | | Fiscal quarters ended June 30, 2017 and March 31, 2017 | |
Current Report on Form 8-K | | | Filed on May 31, 2017, May 24, 2017, April 13, 2017, April 10, 2017, March 10, 2017 and March 8, 2017 | |
Any description of Swift shares contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description | | | | |
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Definition | | | Location | |
ABCA | | | 1.8(a) | |
Acquisition Agreement | | | 5.2(c) | |
Acquisition Proposal | | | 5.2(h)(i) | |
Action | | | 3.10 | |
Adverse Recommendation Change | | | 5.2(c) | |
AERA | | | 1.2 | |
Affiliate | | | 8.3(a) | |
Agreement | | | Preamble | |
Amended Bishop Charter | | | 1.1(a) | |
Antitrust Laws | | | 3.5(b) | |
Bishop | | | Preamble | |
Bishop Bylaws | | | 4.1(b) | |
Bishop Charter | | | 4.1(b) | |
Bishop Class B Common Stock | | | Recitals | |
Bishop Common Stock | | | Recitals | |
Bishop D&O Indemnified Parties | | | 5.11(b) | |
Bishop D&O Insurance | | | 5.11(d) | |
Bishop Disclosure Letter | | | Article IV | |
Bishop Equity Awards | | | 2.4(f) | |
Bishop ESPP | | | 2.4(e) | |
Bishop ESPP Shares | | | 2.4(e) | |
Bishop Expense Reimbursement | | | 8.3(b) | |
Bishop Financial Advisor | | | 4.24 | |
Bishop Material Adverse Effect | | | 8.3(c) | |
Bishop Material Contract | | | 4.17(a) | |
Bishop Measurement Date | | | 4.2(a) | |
Bishop Participant | | | 4.12(h) | |
Bishop Permits | | | 4.11(b) | |
Bishop Permitted Liens | | | 4.19(a) | |
Bishop Plans | | | 4.12(a) | |
Bishop Preferred Stock | | | 4.2(a) | |
Bishop PSU Award | | | 2.4(d) | |
Bishop Recommendation | | | 5.4(c) | |
Bishop Restricted Stock Award | | | 2.4(b) | |
Bishop RSU Award | | | 2.4(c) | |
Bishop SEC Documents | | | 4.6(a) | |
Bishop Share Consolidation Ratio | | | Recitals | |
Bishop Stock Option | | | 2.4(a) | |
Bishop Stockholder Approval | | | 8.3(d) | |
Bishop Stockholders Agreement | | | Recitals | |
Bishop Stockholders Meeting | | | 8.3(e) | |
Definition | | | Location | |
Bishop Support Agreement | | | Recitals | |
Bishop Supporting Stockholders | | | Recitals | |
Bishop Termination Fee | | | 8.3(f) | |
Book-Entry Shares | | | 2.2(b) | |
Business Day | | | 8.3(g) | |
Cancelled Share | | | 2.1(a)(iii) | |
CBA | | | 3.13(a) | |
Certificates | | | 2.2(b) | |
Charter Amendment | | | Recitals | |
Charter Amendment Effective Time | | | 1.5 | |
Class B Conversion | | | Recitals | |
Closing | | | 1.4 | |
Closing Date | | | 1.4 | |
Code | | | Recitals | |
Confidentiality Agreement | | | 5.5(a) | |
Continuing Employee | | | 8.3(h) | |
Contract | | | 3.5(a) | |
control | | | 8.3(i) | |
controlled | | | 8.3(i) | |
controlled by | | | 8.3(i) | |
Controlled Group | | | 3.12(c) | |
Covered Countries | | | 3.23(c)(i) | |
Determination Notice | | | 5.2(e) | |
DGCL | | | 1.1(a) | |
Effective Time | | | 1.6 | |
Environmental Claims | | | 3.14(c)(i) | |
Environmental Law | | | 3.14(c)(ii) | |
Environmental Permits | | | 3.14(c)(iii) | |
ERISA | | | 3.12(a) | |
ERISA Affiliate | | | 8.3(j) | |
Exchange Act | | | 3.5(b) | |
Exchange Agent | | | 2.2(a) | |
Exchange Fund | | | 2.2(a) | |
Form S-4 | | | 8.3(k) | |
Fried Frank | | | 5.14(a) | |
GAAP | | | 3.6(b) | |
Governmental Entity | | | 3.5(b) | |
Hazardous Materials | | | 3.14(c)(iv) | |
HSR Act | | | 3.5(b) | |
Indebtedness | | | 8.3(l) | |
Intellectual Property Rights | | | 8.3(m) | |
International Trade Laws and Regulations | | | 3.23(c)(ii) | |
Intervening Event | | | 5.2(d) | |
Definition | | | Location | |
IRS | | | 3.12(a) | |
Joint Proxy Statement/Prospectus | | | 8.3(n) | |
Kirkland | | | 5.14(a) | |
knowing and material breach | | | 8.3(o) | |
knowledge | | | 8.3(p) | |
Law | | | 3.5(a) | |
Liens | | | 3.3 | |
Merger | | | Recitals | |
Merger Consideration | | | 2.1(a)(ii) | |
Merger Sub | | | Preamble | |
Merger Sub Stockholder Approval | | | 8.3(q) | |
Mexican Competition Law | | | 5.6(b) | |
Multiemployer Plan | | | 3.12(a) | |
Multiemployer Plans | | | 3.12(a) | |
New Bishop PSU Award | | | 2.3(d) | |
New Bishop Restricted Stock Award | | | 2.3(b) | |
New Bishop RSU Award | | | 2.3(c) | |
New Bishop Stock Option | | | 2.3(a) | |
New Plans | | | 5.10(a) | |
NYSE | | | 8.3(r) | |
OFAC | | | 3.23(c)(ii) | |
Ordinary Course | | | 8.3(s) | |
Outside Date | | | 7.1(b)(i) | |
PBGC | | | 3.12(b)(iii) | |
Person | | | 8.3(t) | |
Release | | | 3.14(c)(v) | |
Representatives | | | 5.2(a) | |
Reverse Split | | | Recitals | |
Reverse Split Time | | | 1.1(b) | |
Rook | | | Preamble | |
Rook Bylaws | | | 3.1(b) | |
Rook Charter | | | 3.1(b) | |
Rook Common Stock | | | Recitals | |
Rook D&O Indemnified Parties | | | 5.11(a) | |
Rook D&O Insurance | | | 5.11(c) | |
Rook Disclosure Letter | | | Article III | |
Rook Equity Awards | | | 2.3(e) | |
Rook Expense Reimbursement | | | 8.3(u) | |
Rook Financial Advisor | | | 3.24 | |
Rook Material Adverse Effect | | | 8.3(v) | |
Rook Material Contract | | | 3.17(a) | |
Rook Measurement Date | | | 3.2(a) | |
Rook Participant | | | 3.12(h) | |
Definition | | | Location | |
Rook Permits | | | 3.11(b) | |
Rook Permitted Liens | | | 3.19(a) | |
Rook Plans | | | 3.12(a) | |
Rook Preferred Stock | | | 3.2(a) | |
Rook PSU Award | | | 2.3(d) | |
Rook Recommendation | | | 5.4(b) | |
Rook Restricted Stock Award | | | 2.3(b) | |
Rook RSU Award | | | 2.3(c) | |
Rook SEC Documents | | | 3.6(a) | |
Rook Stock Option | | | 2.3(a) | |
Rook Stockholder Approval | | | 8.3(w) | |
Rook Stockholders Agreement | | | Recitals | |
Rook Stockholders Meeting | | | 8.3(x) | |
Rook Support Agreement | | | Recitals | |
Rook Supporting Stockholders | | | Recitals | |
Rook Termination Fee | | | 8.3(y) | |
Sanctioned Person | | | 3.23(c)(iii) | |
SEC | | | 8.3(z) | |
Securities Act | | | 3.5(b) | |
Share Issuance | | | 8.3(aa) | |
Statement of Merger | | | 1.6 | |
Subsidiary | | | 8.3(bb) | |
Superior Proposal | | | 5.2(h)(ii) | |
Surviving Corporation | | | 1.2 | |
Surviving Corporation Articles of Incorporation | | | 1.8(a) | |
Surviving Corporation Bylaws | | | 1.8(b) | |
Takeover Laws | | | 3.21 | |
Tax | | | 8.3(cc) | |
Tax Return | | | 8.3(dd) | |
Taxes | | | 8.3(cc) | |
under common control with | | | 8.3(i) | |
WARN Act | | | 3.13(b) | |
| | | | SWIFT TRANSPORTATION COMPANY | | |||
| | | | By: | | | /s/ Virginia Henkels | |
| | | | | | | Name: Virginia Henkels | |
| | | | | | | Title: Executive Vice President, Chief Financial Officer and Treasurer | |
| | | | BISHOP MERGER SUB, INC. | | |||
| | | | By: | | | /s/ Mickey R. Dragash | |
| | | | | | | Name: Mickey R. Dragash | |
| | | | | | | Title: Executive Vice President, General Counsel and Secretary | |
| | | | KNIGHT TRANSPORTATION, INC. | | |||
| | | | By: | | | /s/ Kevin P. Knight | |
| | | | | | | Name: Kevin P. Knight | |
| | | | | | | Title: Executive Chairman | |
Director | | | Class | | | Designator | |
Glenn Brown* | | | Class I | | | Jack Designator | |
Jerry Moyes* | | | Class III | | | Jack Designator | |
Richard Dozer | | | Class II | | | Bishop | |
David Vander Ploeg | | | Class II | | | Bishop | |
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| , Director | |
| | | | Very truly yours, | | |||
| | | | EVERCORE GROUP L.L.C. | | |||
| | | | By: | | | /s/ Mark Friedman | |
| | | | | | | Mark Friedman Senior Managing Director | |
| | | | Very truly yours, | | |||
| | | | MORGAN STANLEY & CO. LLC | | |||
| | | | By: | | | /s/ Benn Calhoun | |
| | | | | | | Benn Calhoun Managing Director | |
(b) | (1) | The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form. |
| | | | SWIFT TRANSPORTATION COMPANY | | ||||||
| | | | By: | | | /s/ Richard Stocking | | |||
| | | | | | | Name: | | | Richard Stocking | |
| | | | | | | Title: | | | President and Chief Executive Officer (Principal Executive Officer) | |
| Signatures | | | Capacity | | | Dates | |
| * Richard Stocking | | | President and Chief Executive Officer (Principal Executive Officer) | | | | |
| * Virginia Henkels | | | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | | | | |
| * Cary M. Flanagan | | | Vice President and Corporate Controller (Principal Accounting Officer) | | | | |
| * Richard H. Dozer | | | Director, Chairman of the Board | | | | |
| * Glenn F. Brown | | | Director | | | | |
| * José A. Cárdenas | | | Director | | | | |
| * Jerry Moyes | | | Director | | | | |
| * William F. Riley, III | | | Director | | | | |
| * David N. Vander Ploeg | | | Director | | | | |
| By: /s/ Richard Stocking Name: Richard Stocking Title: Attorney-in-Fact | | | |
Exhibit | | | Description | |
2.1 | | | Agreement and Plan of Merger, dated as of April 9, 2017, by and among Swift Transportation Company, Bishop Merger Sub, Inc. and Knight Transportation, Inc. (included as Annex A to the joint proxy statement/prospectus included in this registration statement). | |
3.1 | | | Form of Second Amended and Restated Certificate of Incorporation of Knight-Swift Transportation Holdings Inc. (f/k/a Swift Transportation Company) to be in effect as of the completion of the transaction (included as Exhibit A to Annex A to the joint proxy statement/prospectus included in this registration statement). | |
3.2 | | | Form of Bylaws of Knight-Swift Transportation Holdings Inc. to be in effect as of the completion of the transaction (included as Exhibit C to Annex A to the joint proxy statement/prospectus included in this registration statement). | |
4.1 | | | Specimen Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1 filed by Swift Transportation Company on November 30, 2010). | |
5.1* | | | Opinion of Kirkland & Ellis LLP as to the validity of the securities being registered. | |
| | Opinion of Kirkland & Ellis LLP regarding certain tax matters. | | |
| | Opinion of Fried, Frank, Harris, Shriver & Jacobson LLP regarding certain tax matters. | | |
10.1 | | | Support Agreement, dated as of April 9, 2017, by and among Swift Transportation Company, Gary J. Knight and The Gary J. Knight Revocable Living Trust dated May 19, 1993, as amended (incorporated by reference to Exhibit 10.1 to Swift Transportation Company’s Current Report on Form 8-K filed April 13, 2017). | |
10.2 | | | Support Agreement, dated as of April 9, 2017, by and among Swift Transportation Company, Kevin P. Knight and The Kevin and Sydney Knight Revocable Living Trust dated March 25, 1994, as amended (incorporated by reference to Exhibit 10.2 to Swift Transportation Company’s Current Report on Form 8-K filed April 13, 2017). | |
10.3 | | | Support Agreement, dated as of April 9, 2017, by and among Knight Transportation, Inc. Jerry Moyes, Vickie Moyes, Jerry and Vicky Moyes Family Trust Dated 12/11/87, Michael Moyes and LynDee Moyes Nester (incorporated by reference to Exhibit 10.1 to Knight Transportation, Inc.’s Current Report on Form 8-K filed April 13, 2017). | |
10.4 | | | Stockholders Agreement, dated as of April 9, 2017 among Swift Transportation Company (to be renamed Knight-Swift Transportation Holdings Inc.), Jerry Moyes, Vickie Moyes, Jerry and Vickie Moyes Family Trust Dated 12/11/87, an Arizona grantor trust, LynDee Moyes Nester, Michael Moyes, and the Persons that may join from time to time (incorporated by reference to Exhibit 10.3 to Knight Transportation, Inc.’s Current Report on Form 8-K filed April 13, 2017). | |
10.5 | | | Stockholders Agreement, dated as of April 9, 2017, among Swift Transportation Company (to be renamed Knight-Swift Transportation Holdings Inc.), Gary J. Knight, The Gary J. Knight Revocable Living Trust dated May 19, 1993, as amended, and the Persons that may join from time to time (incorporated by reference to Exhibit 10.4 to Knight Transportation, Inc.’s Current Report on Form 8-K filed April 13, 2017). | |
10.6 | | | Stockholders Agreement, dated as of April 9, 2017, among Swift Transportation Company (to be renamed Knight-Swift Transportation Holdings Inc.), Kevin P. Knight and The Kevin and Sydney Knight Revocable Living Trust dated March 25, 1994, as amended, and the Persons that may join from time to time (incorporated by reference to Exhibit 10.5 to Knight Transportation, Inc.’s Current Report on Form 8-K filed April 13, 2017). | |
10.7 | | | Letter Agreement, dated as of April 9, 2017, by and between the Company and Jerry Moyes (incorporated by reference to Exhibit 10.6 to Knight Transportation, Inc.’s Current Report on Form 8-K filed April 13, 2017). | |
21.1 | | | Subsidiaries of Swift Transportation Company (incorporated by reference to Exhibit 21.1 to the Annual Report on Form 10-K filed by Swift Transportation Company on February 17, 2017). | |
Exhibit | | | Description | |
23.1* | | | Consent of Kirkland & Ellis LLP (included in Exhibit 5.1 hereto). | |
| | Consent of Kirkland & Ellis LLP (included in Exhibit 8.1 hereto). | | |
| | Consent of Fried, Frank, Harris, Shriver & Jacobson LLP (included in Exhibit 8.2 hereto). | | |
23.4 | | | Consent of KPMG LLP, independent registered public accounting firm of Swift Transportation Company. | |
23.5 | | | Consent of Grant Thornton LLP, independent registered public accounting firm of Knight Transportation, Inc. | |
24.1* | | | Power of Attorney (included on the signature page to the S-4 previously filed). | |
99.1* | | | Form of Proxy Card to be used by holders of common stock of Knight Transportation, Inc. | |
99.2* | | | Form of Proxy Card to be used by holders of common stock of Swift Transportation Corporation | |
99.3 | | | Consent of Evercore Group L.L.C. | |
99.4 | | | Consent of Morgan Stanley & Co. LLC | |
99.5* | | | Consent of Kevin P. Knight | |
99.6* | | | Consent of Gary J. Knight | |
99.7* | | | Consent of Michael Garnreiter | |
99.8* | | | Consent of Kathryn L. Munro | |
99.9* | | | Consent of Richard J. Lehmann | |
99.10* | | | Consent of Richard C. Kraemer | |
99.11* | | | Consent of David A. Jackson | |
99.12* | | | Consent of Roberta Roberts Shank | |
99.13* | | | Consent of Robert Synowicki, Jr. | |