Knight Transportation Posts Record Revenue and Net Income for the First Quarter of 2006.PHOENIX -- Knight Transportation Knight Transportation, Inc. (NYSE: KNX) was founded in 1990 by 4 cousins, Kevin Knight, Keith Knight, Gary Knight and Randy Knight. They began transporting general commodities from Phoenix, Arizona to Los Angeles, California. Inc. (NYSE NYSE See: New York Stock Exchange : KNX KNX may refer to:
For the quarter, total revenue increased 22.0%, to $149.0 million from $122.2 million for the same quarter of 2005. Revenue, before fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. , increased 16.4%, to $129.3 million from $111.1 million for the same quarter of 2005. Net income increased 24.1%, to $15.8 million from $12.8 million for the same period of 2005. Net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share increased to $0.18 from $0.15 for same quarter 2005. The company previously announced cash dividends of $.02 per share to shareholders of record on Jan. 31, 2006, which was paid on Feb. 14, 2006 and $.02 per share declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. on March 13, 2006, for shareholders of record on March 23, 2006, which was paid on March 31, 2006. Chairman and Chief Executive Officer Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) P. Knight offered the following comments: "During the first quarter our revenue growth was driven by a combination of fleet expansion and increased revenue per mile. We benefited from the opening of three new service centers and increasing business at our existing centers. "For the 45th consecutive quarter since going public, Knight Transportation generated higher year-over-year operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . Our operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: of 79.8% represented a 120 basis point improvement over the 2005 quarter, and was our best first quarter operating ratio since March of 1994. Our net income, as a percentage of revenue before fuel surcharge, was 12.2%, which represented the best first quarter in our history. Positive results in insurance and claims, used equipment sales, and fuel surcharge collection, as well as our constant focus on cost controls, more than overcame expense increases relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc recording stock option expenses, higher prices of revenue equipment and diesel fuel, declining fuel efficiency due to emissions control Emissions control may refer to:
SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R, which requires expensing of stock options. At Knight Transportation, we have a broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased stock option program with approximately 1,002 participants. The non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) associated with expensing stock options affected our operating ratio by approximately 50 basis points for the first quarter of 2006. "During the quarter, average tractors operated increased 16.3% over the first quarter of 2005. We purchased 329 new tractors during the quarter, 266 of which replaced existing units and 63 were for expansion. We also purchased 324 new trailers, 243 of which replaced existing units. For the quarter we invested $27.2 million in net capital expenditures. At March 31, 2006, our balance sheet reflected $27.8 million in cash, $2.9 million in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, zero debt, and $369.0 million in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . "For the remainder of 2006, we plan to continue to grow our fleet by approximately 15% year over year. Assuming GDP GDP (guanosine diphosphate): see guanine. growth remains favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , we believe that our markets will continue to offer an environment for rate increases to offset the additional costs associated with driver pay, fuel, and the introduction of the federally mandated 2007 engines." The company will hold a conference call on April 20, 4 p.m. ET, to further discuss its results of operations for the quarter ended March 31, 2006. The dial-in number for this conference call is 800-350-3624. Knight Transportation Inc is a truckload carrier Merrian-Webster online dictionary defines truckload as " a load or amount that fills or could fill a truck". A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. offering dry van, refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. , and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services to customers through a network of service centers located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . As "Your Hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" National Carrier," Knight strives to offer customers and drivers personal service and attention through each service center, while offering integrated freight transportation nationwide and beyond through the scale of one of North America's largest trucking companies. The principal types of freight we transport include consumer staples Consumer Staples The industries that manufacture and sell food/beverages, tobacco, prescription drugs, and household products. Notes: Proctor and Gamble would be considered a consumer staple company because many of its products are household and food related. , retail, paper products, packaging/plastics, manufacturing, and import/export commodities.
INCOME STATEMENT DATA: Three Months Ended March 31,
(Unaudited, in thousands,
except per share amounts)
2006 2005
---------- ------------
REVENUE:
Revenue, before fuel surcharge $129,339 $111,074
Fuel surcharge 19,713 11,107
---------- ------------
TOTAL REVENUE 149,052 122,181
---------- ------------
OPERATING EXPENSES:
Salaries, wages and benefits 43,201 36,918
Fuel expense - gross 36,022 25,841
Operations and maintenance 9,427 7,632
Insurance and claims 5,754 6,365
Operating taxes and licenses 3,251 2,929
Communications 1,310 976
Depreciation and amortization 14,600 12,309
Lease expense - revenue equipment 109 -
Purchased transportation 7,907 6,484
Miscellaneous operating expenses 1,373 1,580
---------- ------------
122,954 101,034
---------- ------------
Income From Operations 26,098 21,147
---------- ------------
Interest income 284 110
---------- ------------
Income Before Income Taxes 26,382 21,257
INCOME TAXES 10,550 8,500
---------- ------------
NET INCOME $15,832 $12,757
========== ============
Net Income Per Share
- Basic $0.18 $0.15
- Diluted $0.18 $0.15
Weighted Average Shares Outstanding
- Basic 85,752 85,121
- Diluted 87,260 87,047
BALANCE SHEET DATA:
3/31/2006 12/31/2005
---------- ------------
ASSETS (Unaudited, in thousands)
Cash and cash equivalents $27,816 $18,809
Short term investment 2,924 2,278
Restricted Cash - 211
Accounts receivable, net 68,925 79,848
Notes receivable, net 248 241
Inventories and supplies 3,544 3,355
Prepaid expenses 8,607 7,156
Income tax receivable - -
Deferred tax asset 8,491 8,533
---------- ------------
Total Current Assets 120,555 120,431
---------- ------------
Property and equipment, net 366,087 352,339
Notes receivable, long-term 372 344
Goodwill 8,439 8,119
Other Assets 3,451 2,594
---------- ------------
Total Assets $498,904 $483,827
========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $6,769 $7,464
Accrued payroll 4,997 5,452
Accrued liabilities 16,451 13,307
Dividends payable - 1,713
Other current liabilities - 211
Claims accrual 23,508 26,155
---------- ------------
Total Current Liabilities 51,725 54,302
Deferred Income Taxes 78,152 76,597
---------- ------------
Total Liabilities 129,877 130,899
---------- ------------
Common stock 858 857
Additional paid-in capital 89,133 87,148
Retained earnings 279,036 264,923
---------- ------------
Total Shareholders' Equity 369,027 352,928
---------- ------------
Total Liabilities and Shareholders'
Equity $498,904 $483,827
========== ============
Three Months Ended March 31,
2006 2005
---------- ----------
(Unaudited) (Unaudited)
OPERATING STATISTICS %
Change
Average Revenue Per Loaded Mile(a) $1.668 $1.635 2.0%
Average Revenue Per Total Mile(a) $1.464 $1.433 2.2%
Empty Mile Factor 12.2% 12.4% -1.6%
Average Miles Per Tractor 26,490 27,245 -2.8%
Average Length of Haul 573 565 1.4%
Operating Ratio(b) 79.8% 81.0%
Average Tractors - Total 3,290 2,830 16.3%
Tractors - End of Quarter:
Company 3,097 2,661
Owner - Operator 228 230
---------- ----------
3,325 2,891
Trailers - End of Quarter 7,966 7,143
Net Capital Expenditures
(in thousands) $27,168 $13,266
Cash Flow From Operations
(in thousands) $39,279 $25,849
(a) Excludes fuel surcharge.
(b) Operating ratio as reported in this press release is based upon
total operating expenses, net of fuel surcharge, as a percentage
of revenue, before fuel surcharge. Revenue from fuel surcharge is
available on the accompanying statements of income. We measure
our revenue, before fuel surcharge, and our operating expenses,
net of fuel surcharge, because we believe that eliminating this
sometimes volatile source of revenue affords a more consistent
basis for comparing our results of operations from period to
period.
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. 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 oth Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , and other filings with the Securities Exchange Commission. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. |
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