Exhibit 99.1
SWIFT TRANSPORTATION CO., INC. REPORTS
FIRST QUARTER RESULTS
Phoenix, AZ — April 29, 2003 — Swift Transportation Co., Inc. (NASDAQ-NMS: SWFT) today reported its results for the three months ended March 31, 2003.
Revenues for the first quarter of 2003 increased 15.9% to $551.3 million, compared with $475.8 million for the corresponding quarter of 2002. The first quarter of 2003 includes $23.1 million of fuel surcharge revenue versus $2.7 million in 2002. Excluding this fuel surcharge revenue, the increase in revenues would have been 11.7%. Net earnings were $8.9 million or 10 cents per share, compared to $9.4 million or 11 cents per share for the first quarter of 2002. The first quarter of 2003 and 2002 results include the benefit of a $100,000 and $1.3 million, respectively, noncash pre-tax adjustment for the reduction in market value of interest rate derivative agreements of M.S. Carriers. Excluding the impact of the interest rate derivative agreements, net earnings increased to $8.8 million (10 cents per share) from $8.6 million (10 cents per share).
Jerry Moyes, Chairman and Chief Executive Officer, said, “We continue to make fundamental improvements in our business as reflected in the increase in the rate per all miles of more than 2 cents, driven by our deadhead percentage decrease of 118 basis points. In addition, our revenue per tractor per quarter increased by more than $2,400 in this quarter compared to last year. We previously disclosed the impact of a higher fuel cost per gallon would be significant in the current quarter. Our average cost per gallon of fuel was $0.45 higher in the first quarter of 2003 as compared to the first quarter of 2002 or $10.6 million, net of fuel surcharge revenue. Without the higher fuel prices, our operating ratio of 96.7% would have been 94.7% in the current quarter compared with 96.3% in the first quarter of 2002, further evidence of our continuing fundamental improvement.”
Management believes the presentation of earnings without the impact of the interest rate derivative agreements and the operating ratio adjusted for the higher fuel cost per gallon are useful in comparing the results from period to period due to the historical volatility of the interest rate derivative agreements and fuel prices.
Swift will hold a conference call to discuss these results at 4:30 PM Eastern time on Wednesday April 30, 2003. Individuals with questions may dial in at 888-789-0156. For others, the conference call will be broadcast live on the Internet at http://www.companyboardroom.com/ and may also be accessed through the Company’s web site, http://www.swifttrans.com/. Replays will be available on these websites for two weeks.
Swift is the holding company for Swift Transportation Co., Inc., a truckload carrier headquartered in Phoenix, Arizona. Swift’s trucking subsidiary operates the largest fleet of truckload carrier equipment in the United States with regional operations throughout the continental United States.
Condensed, consolidated statements of earnings for the three months ended March 31, 2003 and 2002 are as follows:
Swift Transportation Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(unaudited)
(in thousands, except per share amounts)
Three Months Ended | |||||||||
March 31, | |||||||||
2003 | 2002 | ||||||||
Operating revenue | $ | 551,303 | $ | 475,780 | |||||
Operating expenses: | |||||||||
Salaries, wages and employee benefits | 204,395 | 180,905 | |||||||
Operating supplies and expenses | 58,139 | 41,652 | |||||||
Fuel | 84,710 | 54,316 | |||||||
Purchased transportation | 91,254 | 83,738 | |||||||
Rental expense | 20,665 | 22,194 | |||||||
Insurance and claims | 22,490 | 19,380 | |||||||
Depreciation and amortization | 34,354 | 36,717 | |||||||
Communication and utilities | 6,940 | 7,171 | |||||||
Operating taxes and licenses | 10,011 | 11,955 | |||||||
Total operating expenses | 532,958 | 458,028 | |||||||
Operating income | 18,345 | 17,752 | |||||||
Interest expense (net) | 3,774 | 2,020 | |||||||
Other (income) expense | 224 | 407 | |||||||
Earnings before income taxes | 14,347 | 15,325 | |||||||
Income taxes | 5,450 | 5,915 | |||||||
Net earnings | $ | 8,897 | $ | 9,410 | |||||
Diluted earnings per share | $ | .10 | $ | .11 | |||||
Shares used in per share calculations | 84,747 | 87,968 | |||||||
Contact: Jerry Moyes, President, or Gary Enzor, CFO of
Swift Transportation Co., Inc.
(602) 269-9700
Swift Transportation Co., Inc. and Subsidiaries
Operating Statistics
(Excluding Fuel Surcharge)
Three Months Ended | |||||||||
March 31, | |||||||||
2003 | 2002 | ||||||||
Total Miles* | 414,280 | 380,138 | |||||||
Loaded Miles* | 357,226 | 323,311 | |||||||
Trucking Revenue* | $ | 508,847 | $ | 458,151 | |||||
Revenue per Tractor per day | $ | 522 | $ | 483 | |||||
Revenue per loaded mile | $ | 1.4244 | $ | 1.4171 | |||||
Average Linehaul Tractors | 15,462 | 15,045 | |||||||
Deadhead Percentage | 13.77 | % | 14.95 | % | |||||
Period End Linehaul Tractor Count Company | 12,806 | 12,282 | |||||||
Owner Operator | 3,200 | 3,204 | |||||||
Total | 16,006 | 15,486 | |||||||
* | In Thousands |
Selected Balance Sheet Data
(in thousands)
March 31, | December 31, | |||||||
2003 | 2002 | |||||||
Cash | $ | 10,003 | $ | 7,930 | ||||
Total Assets | $ | 1,652,575 | $ | 1,654,482 | ||||
Capital leases, debt and securitization | $ | 399,840 | $ | 401,691 | ||||
Total Liabilities | $ | 893,224 | $ | 888,704 | ||||
Equity | $ | 759,351 | $ | 765,778 |
Selected Cash Flow Statement Data
(in thousands)
Three Months ended | ||||||||
March 31, | ||||||||
2003 | 2002 | |||||||
Net cash provided by operating activities | $ | 54,666 | $ | 35,634 | ||||
Net cash provided (used in) investing activities | $ | (35,064 | ) | $ | (52,106 | ) | ||
Net cash provided by (used in) financing activities | $ | (17,529 | ) | $ | 7,582 | |||
Purchase of treasury stock | $ | 17,267 | $ | 0 | ||||
Capital Expenditures (net of disposal proceeds) | $ | 48,093 | $ | 43,609 |