Knight-Swift Transportation Holdings Inc. Files 10-Q for Q1 2024

TL;DR

<b>Knight-Swift Transportation Holdings Inc. filed its Q1 2024 10-Q, providing a detailed financial snapshot and comparative data.</b>

AI Summary

Knight-Swift Transportation Holdings Inc. (KNX) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Knight-Swift Transportation Holdings Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. Key financial data from previous periods (Q1 2023, FY 2023, FY 2022) is included for comparison. The report details various balance sheet items including common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. Specific revenue segments such as 'Revenue Excluding Truckload Fuel Surcharge' and 'Truckload Fuel Surcharge Revenue' are referenced.

Why It Matters

For investors and stakeholders tracking Knight-Swift Transportation Holdings Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of Knight-Swift Transportation Holdings Inc., crucial for assessing operational health and investment potential. The inclusion of historical data allows for trend analysis and evaluation of the company's financial trajectory over multiple periods.

Risk Assessment

Risk Level: — Knight-Swift Transportation Holdings Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not inherently signal significant positive or negative developments beyond what is presented in the numbers.

Analyst Insight

Review the detailed financial statements and segment revenues within the 10-Q to understand the drivers of performance in Q1 2024 and compare them to prior periods.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Filed As Of Date)

Key Players & Entities

• Knight-Swift Transportation Holdings Inc. (company) — Filer of the report
• 2024-03-31 (date) — Conformed period of report
• 2024-05-01 (date) — Filed as of date
• 2024-01-01 (date) — Reporting period start date
• 2023-03-31 (date) — Comparative period
• 2022-12-31 (date) — Comparative period

FAQ

Industry Context

Knight-Swift Transportation Holdings Inc. operates in the trucking industry, a sector characterized by freight demand, fuel costs, and driver availability.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the revenue trends for 'Revenue Excluding Truckload Fuel Surcharge' and 'Truckload Fuel Surcharge Revenue' for Q1 2024 compared to Q1 2023.
2. Examine the changes in balance sheet accounts such as retained earnings and additional paid-in capital between Q4 2023 and Q1 2024.
3. Look for any specific disclosures regarding financing provided to independent contractors or assets held for sale in the footnotes or financial statement details.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This 10-Q filing provides the first quarter financial results for 2024, following the full year 2023 results reported in the previous filing.

Key Financial Figures

• $0.01 — hange on which registered Common Stock $0.01 Par Value KNX New York Stock Exchange

Filing Documents

• knx-20240331.htm (10-Q) — 1809KB
• knx-ex101x3312024.htm (EX-10.1) — 75KB
• knx-ex311x3312024.htm (EX-31.1) — 10KB
• knx-ex312x3312024.htm (EX-31.2) — 11KB
• knx-ex321x3312024.htm (EX-32.1) — 9KB
• knx-ex322x3312024.htm (EX-32.2) — 9KB
• knx-20240331_g1.jpg (GRAPHIC) — 92KB
• 0001492691-24-000064.txt (&nbsp;) — 7633KB
• knx-20240331.xsd (EX-101.SCH) — 37KB
• knx-20240331_cal.xml (EX-101.CAL) — 61KB
• knx-20240331_def.xml (EX-101.DEF) — 224KB
• knx-20240331_lab.xml (EX-101.LAB) — 514KB
• knx-20240331_pre.xml (EX-101.PRE) — 349KB
• knx-20240331_htm.xml (XML) — 1034KB

FINANCIAL INFORMATION PAGE

PART I FINANCIAL INFORMATION PAGE

Financial Statements

Item 1. Financial Statements 4 Condensed Consolidated Balance Sheets (Unaudited) — March 31, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) — Quarter ended March 3 1 , 202 4 and 202 3 5 Condensed Consolidated Statements of Cash Flows (Unaudited) — Quarter ended March 31 , 202 4 and 202 3 6 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) — Quarter ended March 31 , 202 4 and 202 3 8 Note 1 — Introduction and Basis of Presentation 9 Note 2 — Recently Issued Accounting Pronouncements 10 Note 3 — Acquisitions 10 Note 4 — Income Taxes 12 Note 5 — Accounts Receivable Securitization 13 Note 6 — Debt and Financing 14 Note 7 — Defined Benefit Pension Plan 16 Note 8 — Purchase Commitments 16 Note 9 — Contingencies and Legal Proceedings 17 Note 10 — Share Repurchase Plans 17 Note 11 — Weighted Average Shares Outstanding 18 Note 12 — Fair Value Measurement 18 Note 13 — Related Party Transactions 20 Note 14 — Financial Information by Segment and Geography 21

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 52

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 53

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 54

Signatures

Signatures 55 2 Table of Contents KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. GLOSSARY OF TERMS The following glossary defines certain acronyms and terms used in this Quarterly Report on Form 10-Q. These acronyms and terms are specific to our company, commonly used in our industry, or are otherwise frequently used throughout our document. Term Definition Knight-Swift/the Company/Management/We/Us/Our Unless otherwise indicated or the context otherwise requires, these terms represent Knight-Swift Transportation Holdings Inc. and its subsidiaries. 2017 Merger The September 8, 2017 merger of Knight Transportation, Inc. and its subsidiaries and Swift Transportation Company and its subsidiaries, pursuant to which we became Knight-Swift Transportation Holdings Inc. 2021 Debt Agreement The Company's unsecured credit agreement, entered into on September 3, 2021, consisting of the 2021 Revolver and 2021 Term Loans, which are defined below 2021 Prudential Notes Third amended and restated note purchase and private shelf agreement, entered into on September 3, 2021 by ACT with unrelated financial entities 2021 Revolver Revolving line of credit under the 2021 Debt Agreement, maturing on September 3, 2026 2021 Term Loans The Company's term loans under the 2021 Debt Agreement, collectively consisting of the 2021 Term Loan A-1, 2021 Term Loan A-2 and 2021 Term Loan A-3 2021 Term Loan A-1 The Company's term loan under the 2021 Debt Agreement, which matured on December 3, 2022 2021 Term Loan A-2 The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2024 2021 Term Loan A-3 The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2026 2023 Term Loan The Company's term loan entered into on June 22, 2023, maturing on September 3, 2026 2022 RSA Sixth Amendment to the Amended and Restated Receivables Sales Agreement, entered into on October 3, 2022 by Swift Receivables Company II, LLC with unrelated financial entities

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets (Unaudited) March 31, 2024 December 31, 2023 (In thousands, except per share data) ASSETS Current assets: Cash and cash equivalents $ 204,762 $ 168,545 Cash and cash equivalents – restricted 136,174 297,275 Restricted investments, held-to-maturity, amortized cost — 530 Trade receivables, net of allowance for doubtful accounts of $ 40,739 and $ 39,458 , respectively 867,610 888,603 Contract balance – revenue in transit 13,622 12,246 Prepaid expenses 137,105 148,696 Assets held for sale 78,918 83,366 Income tax receivable 58,273 65,815 Other current assets 35,707 43,939 Total current assets 1,532,171 1,709,015 Gross property and equipment 6,782,857 6,720,610 Less: accumulated depreciation and amortization ( 2,205,709 ) ( 2,104,211 ) Property and equipment, net 4,577,148 4,616,399 Operating lease right-of-use-assets 443,002 484,821 Goodwill 3,873,131 3,848,798 Intangible assets, net 2,040,339 2,058,882 Other long-term assets 163,079 152,850 Total assets $ 12,628,870 $ 12,870,765 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 283,837 $ 355,173 Accrued payroll and purchased transportation 153,996 164,884 Accrued liabilities 224,749 220,350 Claims accruals – current portion 350,030 480,200 Finance lease liabilities and long-term debt – current portion 505,841 459,759 Operating lease liabilities – current portion 124,840 144,921 Total current liabilities 1,643,293 1,825,287 Revolving line of credit 202,000 67,000 Long-term debt – less current portion 1,193,602 1,223,021 Finance lease liabilities – less current portion 375,666 407,150 Operating lease liabilities – less current portion 342,320 371,407 Accounts receivable securitization 453,567 526,508 Claims accruals – less current portion 303,743 315,476 Deferred tax liabilities 930,629 951,749 Other long-term liabilities 111,828 79,086 Total liabilities 5,556,648 5,766,684 Commitme