Swift Transportation 8-K Swift Transportation Co., Inc. Reports Second Quarter Results

Exhibit 99.1

SWIFT TRANSPORTATION CO., INC. REPORTS
SECOND QUARTER RESULTS

Phoenix, AZ – July 21, 2003 — Swift Transportation Co., Inc. (NASDAQ-NMS: SWFT), the nation’s largest truckload fleet operator, today reported its results for the three and six months ended June 30, 2003.

Revenues for the second quarter of 2003 increased 10.7% to $584.9 million, compared with $528.6 million for the corresponding quarter of 2002. The second quarter of 2003 includes $23.4 million of fuel surcharge revenue versus $8.1 million in the second quarter of 2002. Excluding this fuel surcharge revenue, the increase in revenues would have been 7.9%. Net earnings were $19.2 million, or 23 cents per share, compared to $17.7 million, or 20 cents per share, for the second quarter of 2002. The second quarter of 2003 and 2002 results include a noncash pre-tax expense of a $1.2 million and $2.7 million, respectively, for the increase in the market value of interest rate derivative agreements of M.S. Carriers. The Company’s earnings per share prior to the effect of the interest rate derivatives would have been 24 and 22 cents per share for the second quarter of 2003 and 2002, respectively.

For the six months ended June 30, 2002, the Company’s revenues increased 13.1% to $1.136 billion from $1.004 billion in 2002. The first six months of 2003 include $46.5 million of fuel surcharge revenue versus $10.8 million in 2002. Excluding this fuel surcharge revenue, the increase in revenues would have been 9.7%. Net earnings were $28.1 million or 33 cents per share, compared to $27.1 million or 31 cents per share in 2002. The six months ended June 30, 2003 and 2002 results include a $1.1 million and $1.4 million noncash pre-tax expense for the increase in market value of interest rate derivative agreements. The Company’s earnings per share prior to the effect of the interest rate derivatives would have been 34 and 32 cents per share for the first six months of 2003 and 2002, respectively.

Jerry Moyes, Chairman and Chief Executive Officer, said, “Despite improvement in operating revenue and net earnings, we are disappointed with our results. We will continue to focus on improving our rate per mile and reducing costs. On a positive note, I am pleased with the addition of $200 million of strategic capital in the form of our private placement of five and seven year Senior Notes. We are also pleased with the completion of our Merit acquisition, which is now fully integrated.”

Management believes the presentation of earnings without the impact of the interest rate derivative agreements is useful in comparing the results from period to period due to the historical volatility of the interest rate derivative agreements.

Swift will hold a conference call to discuss these results at 4:30 PM Eastern time on Tuesday July 22, 2003. Individuals with questions may dial in at 1-800-639-1442 and input the meeting identification number of 1599527. 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.

This press release contains statements that may constitute forward-looking statements, usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such statements include, but are not limited to, statements concerning future operating results and the integration of our Merit acquisition, as well as other information. Such statements are based

upon the current beliefs and expectations of Swift’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

As to Swift’s business and financial performance generally, the following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess capacity in the trucking industry; significant increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and registration fees, insurance premiums and driver compensation, to the extent not offset by increases in freight rates or fuel surcharges; recessionary economic cycles and downturns in customers’ business cycles, particularly in market segments and industries (such as retail and manufacturing) in which Swift has a significant concentration of customers; seasonal factors such as harsh weather conditions that increase operating costs; increases in driver compensation to the extent not offset by increases in freight rates; the inability of Swift to continue to secure acceptable financing arrangements; the ability of Swift to continue to identify and combine acquisition candidates that will result in successful combinations; an unanticipated increase in the number of claims for which Swift is self insured; competition from trucking, rail and intermodal competitors; and a significant reduction in or termination of Swift’s trucking services by a key customer.

A discussion of these and other factors that could cause Swift’s results to differ materially from those described in the forward-looking statements can be found in the most recent Annual Report on Form 10-K of Swift, filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s internet site (http://www.sec.gov). Swift undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Further, nothing herein shall constitute an adoption or approval of any analyst report regarding Swift, nor any undertaking to update or comment upon analysts’ expectations in the future.

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 and six months ended June 30, 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						Six months ended
		June 30,						June 30,
		2003			2002			2003			2002
Operating revenue		$	584,909		$	528,595		$	1,136,212		$	1,004,375
Operating expenses:
	Salaries, wages and employee benefits		217,260			191,569			421,655			372,474
	Operating supplies and expenses		55,016			50,047			113,155			91,699
	Fuel		75,869			62,993			160,579			117,309
	Purchased transportation		100,083			89,337			191,337			173,075
	Rental expense		18,344			21,156			39,009			43,350
	Insurance and claims		25,551			19,714			48,041			39,094
	Depreciation and amortization		39,379			38,183			73,733			74,900
	Communication and utilities		6,797			6,566			13,737			13,737
	Operating taxes and licenses		11,908			13,264			21,919			25,219
Total operating expenses			550,207			492,829			1,083,165			950,857
Operating income			34,702			35,766			53,047			53,518
Interest expense			4,583			6,770			8,515			9,077
Interest income			(138	)		(364	)		(296	)		(651	)
Other (income) expense			(644	)		563			(420	)		970
Earnings before income taxes			30,901			28,797			45,248			44,122
Income taxes			11,740			11,115			17,190			17,030
Net earnings		$	19,161		$	17,682		$	28,058		$	27,092
Diluted earnings per share		$	.23		$	.20		$	.33		$	.31
Shares used in per share calculations			84,148			87,891			84,459			87,915

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						Six months ended
		June 30,						June 30,
		2003			2002			2003			2002
Total Miles *			438,946			412,262			853,226			792,400
Loaded Miles *			374,490			353,643			731,715			676,953
Trucking Revenue *		$	540,735		$	497,877		$	1,049,582		$	956,027
Revenue per Tractor per day		$	547		$	509		$	535		$	496
Revenue per loaded mile		$	1.4439		$	1.4079		$	1.4344		$	1.4123
Average Linehaul Tractors			15,457			15,297			15,459			15,171
Deadhead Percentage			14.68	%		14.22	%		14.24	%		14.57	%
Period End Linehaul Tractor Count
	Company		13,039			12,663			13,039			12,663
	Owner Operator		3,307			3,336			3,307			3,336
	Total		16,346			15,999			16,346			15,999

*  In Thousands

Selected Balance Sheet Data
(in thousands)

	June 30,		December 31,
	2003		2002
Cash	$	49,649	$	7,930
Total Assets	$	1,723,010	$	1,654,482
Debt, capital leases and securitization	$	427,181	$	401,691
Total Liabilities	$	942,574	$	888,704
Equity	$	780,436	$	765,778

Selected Cash Flow Statement Data
(in thousands)

	Six Months ended
	June 30,
	2003			2002
Net cash provided by operating activities	$	127,609		$	113,902
Net cash used in investing activities	$	(97,278	)	$	(118,099	)
Net cash provided by (used in) financing activities	$	11,388		$	(7,832	)
Purchase of treasury stock	$	18,869		$	0
Capital Expenditures (net of disposal proceeds)	$	111,473		$	110,141