Schedules Fourth Quarter Earnings Conference Call
Knight Transportation, Inc. (NYSE: KNX)(“Knight”), one of North
America’s largest and most diversified truckload transportation
companies, today provided an update on its guidance for the fourth
quarter of 2015.
Based on preliminary results, Knight now expects earnings per diluted
share will range from:
-
$0.31 to $0.33 for its fourth quarter ended December 31, 2015,
compared with its prior estimates of $0.36 to $0.38;
Several factors have negatively impacted the fourth quarter of 2015,
which has resulted in expected earnings below original estimates. In
2014 we experienced a 5% increase in revenue per total mile sequentially
from third quarter to fourth quarter. This was a result of a freight
environment with tight capacity and significant non-contract
opportunities. In 2015, as a result of excess capacity entering the
market, we are experiencing a more typical sequential improvement in
revenue per mile from the third quarter to fourth quarter that would
compare closer to 2012 and 2013. Volumes in the fourth quarter remain
similar to 2014, however, we have experienced significantly less
non-contract opportunities. This has resulted in revenue per total mile
trending lower than our originally targeted level, which impacted both
our trucking and logistics segments and negatively impacted our earnings
per diluted share approximately $0.03 - $0.04 when compared to our
previous guidance. During the quarter we increased driver pay in
specific areas of the company, which resulted in higher driver pay
inflation than originally estimated. The softening used equipment market
also resulted in our gain on sale of used equipment trending lower than
expected. We expect the impact of both driver pay and gain on sale to be
approximately $0.01 - $0.02 per diluted share when compared to our
previous guidance. We are beginning to see indications that capacity has
peaked and may be beginning to decline. These indications include weak
new truck orders and the second consecutive quarter of a softening used
equipment market. We also believe the recently published electronic
logging devices (ELD) mandate will constrain capacity in coming quarters.
Dave Jackson, President and Chief Executive Officer of Knight stated,
“The current freight environment presents some challenges, largely as a
result of truckload capacity growth, that we believe is temporary and
short term in nature. We believe our model positions us well for the
opportunities we expect in coming quarters. We continue to explore
growth through acquisition and believe the current environment will
yield opportunities.”
Fourth Quarter 2015 Earnings Conference Call
Knight Transportation expects to release its 2015 fourth quarter
earnings on Wednesday, January 27th, 2016, after market close. Knight
will be holding a live conference call with analysts and investors to
discuss the earnings release, the results of operations, and other
matters after its earnings press release on Wednesday, January 27th,
2016, at 4:30 pm EST. (Please note that, since the call will begin
promptly as scheduled, you will need to join a few minutes prior to that
time.) Slides to accompany this call will be posted on the company’s
website and will be available to download just prior to the scheduled
conference call. To view the presentation, please visit http://investor.knighttrans.com/events,
“Fourth Quarter 2015 Conference Call Presentation.”
The public will be able to listen and participate in the conference
telephonically by dialing (855) 733-9163. An audio replay of the
conference will be posted on the Company’s website for at least seven
(7) days after the meeting (www.knighttrans.com/shareholders/audio).
The Company assumes no responsibility to update any information posted
on its web site.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements generally may be identified by their use of terms or phrases
such as "expects," "estimates," "anticipates," "projects," "believes,"
"plans," "intends," "may," "will," "should," "could," "potential,"
"continue," "future," and terms or phrases of similar substance.
Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified, which
could cause future events and actual results to differ materially from
those set forth in, contemplated by, or underlying the forward-looking
statements. Accordingly, actual results may differ from those set forth
in the forward-looking statements. Readers should review and consider
the factors that may affect future results and other disclosures by the
Company in its press releases, stockholder reports, Annual Report on
Form 10-K, and other filings with the Securities and Exchange
Commission. We disclaim any obligation to update or revise any
forward-looking statements to reflect actual results or changes in the
factors affecting the forward-looking information.
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