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Knight-Swift Transportation Holdings Inc. posted revenue and earnings growth during the first quarter, the company reported April 20.
The Phoenix-based truckload motor carrier posted net income of $208.3 million, or $1.26 a basic share, for the three months ending March 31. That compared with $129.8 million, 77 cents, during the same time the previous year. The total revenue increased by 49% to $1.83 billion from $1.22 billion.
“We continue to grow and diversify our business while improving our results and achieved revenue growth and margin expansion in every segment,” Knight-Swift CEO Dave Jackson said in a statement. “Our non-truckload operations have grown to represent over 40% of our total revenue in the first quarter. We continue to see improvement in contract rates within our truckload segment, leading to less exposure to the spot market.”
The results were close to expectations by investment analysts on Wall Street, which had been looking for $1.26 per share and quarterly revenue of $1.74 billion, according to Zacks Consensus Estimate.
The truckload segment reported that revenue increased 7.9% to $941.5 million from $872.8 million during the same time last year. Operating income for the segment increased 29.4% to $205.1 million from $158.5 million the prior year. The segment includes irregular route, dedicated, refrigerated, expedited, flatbed and cross-border operations. Revenue per loaded mile increased 22.9% against a 4.4% decrease in length of haul.
The logistics segment experienced a 142.1% jump in revenue to $280.2 million from $115.7 million last year. Operating income increased 422.6% to $39.6 million from $7.58 million. This was due to strong demand for the logistics service offering throughout the quarter.
The load count grew by 76.9% while revenue per load increased by 36.8%.
The intermodal segment reported that revenue increased 2.1% to $109.2 million from $107 million during the prior-year quarter. Operating income surged by 338.8% to $15.2 million from $3.46 million. Continued chassis allocations and network fluidity resulted in a reduction in load count, but contributed to a 35.9% increase in revenue per load. The company also worked to improve operations, cost structure, operating ratio and network design. Union Pacific Railroad became its new rail partner during the quarter as well.
“Logistics continues to grow load count, both through our power-only service offering and our traditional brokerage services,” Jackson said. “Margins within our intermodal segment remain strong, and we anticipate year-over-year load count growth in the second half of 2022 as we build our customer base following our recent transition to the Union Pacific. Our diverse brands, economies of scale and the unique way we provide multiple service offerings position us to grow with less cyclicality and more sustainable performance.”
Knight-Swift also reported that its recently formed less-than-truckload segment reached revenue of $214.7 million. Operating income was reported as $26.4 million. The company first jumped into the LTL space with the July 2021 acquisition of AAA Cooper Transportation and later RAC MME Holdings. The company also expanded its network during the quarter by adding six LTL terminals.
Knight-Swift ranks No. 6 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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