1 Earnings Conference Call – Third Quarter 2011 October 25, 2011 John Wiehoff, Chairman & CEO Chad Lindbloom, CFO Angie Freeman, VP Investor Relations Exhibit 99.2 |
2 Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports. |
3 Financial Results 2011 2010 % Change 2011 2010 % Change Total revenues $2,694,928 $2,420,357 11.3% $7,768,062 $6,948,956 11.8% Total net revenues $423,066 $382,580 10.6% $1,231,273 $1,079,814 14.0% Income from operations $183,965 $166,333 10.6% $520,775 $458,795 13.5% Net income $114,347 $102,627 11.4% $322,398 $283,865 13.6% Earnings per share (diluted) $0.70 $0.62 12.9% $1.95 $1.71 14.0% Three months ended September 30 Nine months ended September 30 In thousands, except per share amounts |
4 Transportation Results Q3 2011 • Transportation net revenue growth was driven primarily by Truckload price increases compared to Q3 2010 • Transportation net revenue margin was slightly less than the 10-year average for third quarters 2011 2010 % Change 2011 2010 % Change Total revenues $2,280,208 $2,026,154 12.5% $6,540,266 $5,629,334 16.2% Total net revenues $374,477 $336,564 11.3% $1,085,244 $931,356 16.5% Net revenue margin 16.4% 16.6% -1.1% 16.6% 16.5% 0.3% Three months ended September 30 Nine months ended September 30 TRANSPORTATION in thousands 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 17.5% 17.7% 17.8% 16.8% 17.4% 18.3% 20.2% 18.2% 22.6% 17.4% Q2 16.9% 16.1% 15.9% 15.4% 16.3% 17.1% 17.9% 15.4% 20.6% 15.8% Q3 16.6% 15.6% 16.0% 15.9% 16.3% 17.5% 18.0% 15.9% 19.8% 16.6% Q4 16.0% 16.2% 15.8% 16.0% 15.7% 18.3% 17.7% 19.0% 18.3% 17.6% TRANSPORTATION MARGIN PERCENTAGE 2011 17.2% 16.2% 16.4% |
5 Truck Results Q3 2011 2011 2010 % Change 2011 2010 % Change $321,366 $284,200 13.1% $930,168 $785,782 18.4% Three months ended September 30 Nine months ended September 30 TRUCK NET REVENUES in thousands Quarter Year to Date Volume 4% 5% Pricing * 4% 6% Net revenue margin TRUCKLOAD Quarter Year to Date Volume 15% 15% Pricing Net revenue margin LTL Year over year change Year over year change *Excluding estimated impact of fuel • Truckload net revenue growth was driven primarily by increased pricing • Truckload net revenue margin was reduced by the higher cost of fuel • Within the quarter, Truckload volume growth was consistent; Truckload net revenue margin declined as the quarter progressed • North American Truckload volume growth per business day through October 24 is approximately 6.5% • Less-than-Truckload (LTL) net revenue growth was driven primarily by increased volumes |
6 Intermodal Results Q3 2011 • Net revenue growth was driven by volume growth and increased pricing compared to Q3 2010 • Continued success with committed equipment 2011 2010 % Change 2011 2010 % Change $10,538 $9,188 14.7% $31,000 $27,109 14.4% Three months ended Sept. 30 Nine months ended Sept. 30 INTERMODAL NET REVENUES in thousands Quarter Year to Date Volume Pricing Net revenue margin Year over year change |
7 Ocean & Air Results Q3 2011 • Ocean net revenue growth was driven primarily by increased volumes • Air net revenue decline was driven by decreased volumes and net revenue margin compression 2011 2010 % Change 2011 2010 % Change Ocean $17,881 $17,057 4.8% $49,851 $44,049 13.2% Air $9,940 $11,453 -13.2% $30,560 $31,559 -3.2% Three months ended Sept. 30 Nine months ended Sept. 30 NET REVENUES in thousands Quarter Year to Date Volume Pricing Net revenue margin OCEAN Quarter Year to Date Volume Pricing Net revenue margin AIR Year over year change Year over year change |
8 Other Logistics Services Results Q3 2011 • Other Logistics Services includes Transportation Management Fees, Customs, Warehousing, and Small Parcel • Management Fee and Customs growth were offset by results of other services in this category 2011 2010 % Change 2011 2010 % Change $14,752 $14,666 0.6% $43,665 $42,857 1.9% Three months ended September 30 Nine months ended September 30 NET REVENUES in thousands |
9 Sourcing Results Q3 2011 • Sourcing net revenue growth was driven by a change in our mix of services • Acquisition of Timco, melon category provider, on September 26 2011 2010 % Change 2011 2010 % Change Total revenues $399,220 $380,108 5.0% $1,182,784 $1,278,837 -7.5% Total net revenues $33,089 $31,921 3.7% $101,017 $107,673 -6.2% Net revenue margin 8.3% 8.4% -1.3% 8.5% 8.4% 1.4% Three months ended Sept. 30 Nine months ended Sept. 30 SOURCING in thousands |
10 Payment Services Results Q3 2011 • Volume growth was driven by increase in MasterCard ® services • Increased fees were driven by higher fuel prices 2011 2010 % Change 2011 2010 % Change $15,500 $14,095 10.0% $45,012 $40,785 10.4% Three months ended Sept. 30 Nine months ended Sept. 30 PAYMENT SERVICES in thousands Quarter Year to Date Volume Pricing Year over year change |
11 Summarized Income Statement 2011 2010 % Change 2011 2010 % Change Total net revenues $423,066 $382,580 10.6% $1,231,273 $1,079,814 14.0% Operating expenses: Personnel expenses $178,117 $161,947 10.0% $532,171 $462,793 15.0% Percent of net revenues 42.1% 42.3% 43.2% 42.9% Other operating expenses $60,984 $54,300 12.3% $178,327 $158,226 12.7% Percent of net revenues 14.4% 14.2% 14.5% 14.7% Total Operating expenses $239,101 $216,247 10.6% $710,498 $621,019 14.4% Income from Operations $183,965 $166,333 10.6% $520,775 $458,795 13.5% Percent of net revenues 43.5% 43.5% 42.3% 42.5% Three months ended September 30 Nine months ended September 30 In thousands, except per share amounts • Overall, operating expense growth was in line with growth of business • For the quarter, personnel expense as a percentage of net revenues decreased slightly • Total net revenue growth per business day through October 24 is approximately 6% |
12 2011 2010 % Change 2011 2010 % Change Net cash provided by operating activities $214,701 $127,263 68.7% $293,555 $137,136 114.1% Capital expenditures, net $9,296 $8,970 3.6% $29,081 $21,715 33.9% Three months ended Sept. 30 Nine months ended Sept. 30 Quarter Year to Date Shares repurchased 1,408,314 2,280,802 Average price per share $68.88 $70.81 Cash used for share repurchases $96,999 $161,498 Sept. 30, 2011 Cash & investments $382,737 Current assets $1,656,748 Total assets $2,179,438 Current liabilities $896,709 Stockholder’s equity $1,268,224 Long term debt $0 CASH FLOW DATA 2011 BALANCE SHEET DATA REPURCHASES OF COMMON STOCK Other Financial Information In thousands, except per share amounts |
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