The Phoenix, Ariz.-based truckload carrier and logistics provider, which recently announced a $6 billion merger with competitor Swift Transportation, saw first quarter net income fall 35.4 percent to $14.9 million compared with the same 2016 period.
Knight Transportation saw net earnings in the first quarter of 2017 fall 35.4 percent to $14.9 million compared with the same 2016 period, according to the company’s latest financial statements.
The Phoenix-based truckload transportation and third-party logistics provider reported diluted earnings per share (EPS) of $0.18 for the quarter compared with $0.28 per share the previous year. Revenues remained relatively stable, however, slipping just 0.3 percent year-over-year to $271.2 million.
For the full year in 2016, the company reported a net income of $93.9 million on revenues of $1.1 billion, year-over-year declines of 19.6 percent and 5.5 percent, respectively.
Knight earlier this month announced a merger with fellow Phoenix-based trucking operator Swift Transportation that will create the industry’s largest full truckload provider.
The all-stock transaction, expected to close in third quarter 2017, subject to regulatory approval, will give the combined entity about 23,000 tractors, 77,000 trailers and 28,000 employees, and a market capitalization of roughly $6 billion, the companies said at the time.
“The freight environment was weak in both January and February, particularly in California, but began to improve in March,” Knight Transportation President and CEO Dave Jackson said of the results. “Our leadership remains focused on improving the productivity of our assets, expanding our brokerage business, and enhancing our cost control measures. Despite the difficult environment, we expect improved results in the coming quarters.
“A number of factors impacted our results on a year over year basis,” he added. “The combination of a 2.3% decline in our loaded rate per mile and 1.0% fewer miles per tractor on one less day in the quarter negatively impacted our results by $0.05 per diluted share. The combination of higher maintenance expense and increased driver recruiting costs also negatively impacted our results by approximately an additional $0.02 per diluted share. Less gain on sale and increased net fuel cost as a percentage of revenue negatively impacted our results by approximately an additional $0.03 per diluted share.
“We also incurred approximately $0.01 per diluted share of professional fees associated with the recently announced merger with Swift Transportation,” said Jackson. “Other income was also lower on a year over year basis but was offset by a more favorable tax rate.”
Knight Transportation’s Q1 earnings stuck in reverse
