Swift Transportation Company (“Swift”) (NYSE:SWFT) announces
that it expects Diluted Earnings Per Share (“Diluted EPS”) to be
between $0.09 - $0.10 and Adjusted EPS (“Adjusted EPS”) to be
within the range of $0.11 to $0.12 for the first quarter of 2017.
Adjusted EPS represents Diluted Earnings Per Share adjusted to
add-back intangible amortization, which reflects an approximately
$0.02 per share impact.
Freight volumes in the first quarter did not materialize to the
extent anticipated. In addition, although the demand trend improved
throughout March, it did not meet previous expectations. This
softer freight market and the corresponding impact on pricing were
key contributors to the slight shortfall in the earnings
expectations for the quarter.
Swift’s President and Chief Executive Officer, Richard Stocking,
said, “Despite the challenges of the current operating environment,
we are pleased with the hard work and focus our entire organization
has exhibited in executing on our key initiatives. We successfully
realized year over year utilization improvements in each of our
reportable segments, and the team remains aggressively focused on
controlling costs as we wait for the market to strengthen. We
anticipate that the difficult operating environment will persist
into the second quarter, and as such, expect our Diluted EPS to be
in the range of $0.16 - $0.21 and Adjusted EPS to be in the range
of $0.18 - $0.23 (reflecting the net impact adding back intangible
amortization expense of $0.02 per share). We are cautiously
optimistic about the back half of 2017, and look forward to a great
2018 and beyond for our company.”
About Swift
Swift is based in Phoenix, Arizona, and operates a tractor fleet
of approximately 18,000 units driven by company and owner-operator
drivers. The company operates more than 40 major terminals
positioned near major freight centers and traffic lanes in the
United States and Mexico. Swift offers customers the opportunity
for "one-stop shopping" for their truckload transportation needs
through a broad spectrum of services and equipment. Swift's
extensive suite of services includes general, dedicated and
cross-border U.S./Mexico/Canada service, temperature-controlled,
flatbed and specialized trailers, in addition to rail intermodal
and non-asset based freight brokerage and logistics management
services, making it an attractive choice for a broad array of
customers.
This press release contains statements that may constitute
forward-looking statements, which are based on information
currently available and only speak as of the date the statement was
made. Such forward-looking 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: our estimated ranges of GAAP Diluted EPS and
Adjusted EPS for the first two quarters of 2017; and the operating
environment in the second quarter of 2017.
Such forward-looking statements are inherently uncertain, and
are based upon the current beliefs, assumptions and expectations of
Company management and current market conditions, which are subject
to significant risks and uncertainties, as set forth in the Risk
Factors section of our Annual Report on Form 10-K for the year
ended December 31, 2016. As to the Company's business and financial
performance, the following factors, among others, could cause
actual results to materially differ from those in forward-looking
statements:
• economic conditions, including future recessionary economic
cycles and downturns in customers’ business cycles, particularly in
market segments and industries in which we have a significant
concentration of customers;
• increasing competition from trucking, rail, intermodal, and
brokerage competitors;
• our ability to execute or integrate any future acquisitions
successfully;
• increases in driver compensation to the extent not offset by
increases in freight rates and difficulties in driver recruitment
and retention;
• additional risks arising from our contractual agreements with
owner-operators that do not exist with Company drivers;
• our ability to retain or replace key personnel;
• our dependence on third parties for intermodal and brokerage
business;
• potential failure in computer or communications systems;
• seasonal factors such as severe weather conditions that
increase operating costs;
• the regulatory environment in which we operate, including
existing regulations and changes in existing regulations, or
violations by us of existing or future regulations;
• the possible re-classification of owner-operators as
employees;
• changes in rules or legislation by the National Labor
Relations Board, Congress, or states, and/or union organizing
efforts;
• our Compliance Safety Accountability rating;
• government regulation with respect to our captive insurance
companies;
• uncertainties and risks associated with our operations in
Mexico;
• a significant reduction in, or termination of, our trucking
services by a key customer;
• our significant ongoing capital requirements;
• volatility in the price or availability of fuel, as well as
our ability to recover fuel prices through our fuel surcharge
program;
• fluctuations in new and used equipment prices or replacement
costs, and the potential failure of manufacturers to meet their
sale and trade-back obligations;
• the impact that our leverage may have on the way we operate
our business and our ability to service our debt, including
compliance with our debt covenants;
• restrictions contained in our debt agreements;
• adverse impacts of insuring risk through our captive insurance
companies, including our need to provide restricted cash and
similar collateral for anticipated losses;
• potential volatility or decrease in the amount of earnings as
a result of our claims exposure through our captive insurance
companies and third-party insurance;
• the potential impact of the significant number of shares of
our common stock that is eligible for future sale;
• goodwill impairment;
• that we do not currently pay dividends;
• the significant amount of our stock owned by Jerry Moyes and
the related control over the Company;
• related-party transactions between the Company and Jerry
Moyes; and
• conflicts of interest or potential litigation that may arise
from other businesses owned by controlling shareholder and board
member, Jerry Moyes, including pledges of Swift stock and
guarantees by Jerry Moyes related to other businesses.
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version on businesswire.com: http://www.businesswire.com/news/home/20170410005559/en/
Swift Transportation CompanyJason Bates, 602-269-9700Vice
President of Finance and Investor Relations OfficerorGinnie
Henkels, 602-269-9700Executive Vice President and Chief Financial
Officer
Swift Transportation Company Class A (delisted) (NYSE:SWFT)
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