GREEN BAY, Wis.—Schneider National Inc. has announced financial results for the three months ending June 30 which showed a 50% drop in operations income as compared to the same time in 2023.
“The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market,” said Mark Rourke, president and CEO of Schneider. “Enterprise results benefited from our continued emphasis on cost containment and asset efficiency, contributing to sequentially improved performance across our multimodal platform of Truckload, Intermodal and Logistics.”
Enterprise Results
According to an Aug. 1, 2024, press release, enterprise income from operations for the second quarter of 2024 was $51.0 million, a decrease of $52.8 million, or 51%, compared to the same quarter in 2023. Diluted earnings per share in the second quarter of 2024 was $0.20 compared to $0.43 in the prior year. Gains on the sales of transportation equipment were $9.9 million lower compared to the same quarter in 2023.
Cash Flow and Capitalization
By June 30, Schneider had $265.0 million outstanding on total debt and finance lease obligations compared to $302.1 million as of December 31, 2023. The company had cash and cash equivalents of $103.2 million and $102.4 million as of June 30, 2024 and December 31, 2023, respectively.
The company’s cash provided by operating activities for the second quarter of 2024 increased year over year, while net capital expenditures were lower year over year largely due to reduced purchases of transportation equipment. As of June 30 year to date free cash flow increased $93.5 million compared to the same period in 2023.
“We have maintained pricing discipline in a highly competitive bid season, and while certain elements of our portfolio achieved positive contract pricing during the second quarter renewals, the rate and pace of the change to date are below our expectations,” Rourke said. “For the second half of the year, we anticipate movement towards more typical freight replenishment and seasonality trends, contributing to continued improvement in margin performance across our operating segments.”
According to the release, In February 2023, the company announced the approval of a $150.0 million stock repurchase program. As of June 30, the company had repurchased 3.6 million Class B shares for $91.9 million under the program to date. In April 2024, the company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of June 7, which was paid on July 9. On July 29 the company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of September 13 expected to be paid on October 8. As of June 30, the company had returned $33.3 million in the form of dividends to shareholders year to date.
Results of Operations – Reportable Segments
Truckload
Truckload revenues (excluding fuel surcharge) for the second quarter of 2024 were $540.3 million, an increase of $7.6 million, compared to the same quarter in 2023. Results were driven by organic and acquisitive growth in dedicated, partially offset by lower network pricing and volumes year over year. Truckload revenue per truck per week was $3,933, a decrease of 2% compared to the same quarter in 2023. Network revenue per truck per week increased 3% from the prior quarter, while Dedicated revenue per truck per week improved 2%.
Truckload income from operations was $30.7 million in the second quarter of 2024, a decrease of $34.1 million, or 53%, compared to the same quarter in 2023 primarily due to lower network pricing and volumes, as well as decreased gains on the sale of transportation equipment. Truckload operating ratio was 94.3% in the second quarter of 2024 compared to 87.8% in the second quarter of 2023. A level of seasonal freight volumes as well as targeted productivity actions favorably impacted operating ratio, which improved 290 basis points from the first quarter of 2024.
Intermodal
Intermodal revenues (excluding fuel surcharge) for the second quarter of 2024 were $253.1 million, a decrease of $7.9 million, or 3%, compared to the same quarter in 2023, largely due to lower revenue per order compared to the same quarter in 2023. Volumes were up slightly compared to the same period a year ago.
Intermodal income from operations for the second quarter of 2024 was $14.6 million, a decrease of $9.1 million, or 38%, compared to the same quarter in 2023. Results were primarily due to lower revenue per order, partially offset by network management, operational and dray cost improvements. Intermodal operating ratio was 94.2% in the second quarter of 2024, compared to 90.9% in the second quarter of 2023. Volume growth and productivity actions favorably impacted operating ratio, which improved 300 basis points from the first quarter of 2024.
Logistics
Logistics revenues (excluding fuel surcharge) for the second quarter of 2024 were $318.8 million, a decrease of $24.6 million, or 7%, compared to the same quarter in 2023, driven by decreased revenue per order and 4% lower brokerage volume compared to the same quarter in the prior year. Power Only continued to recognize volume growth year over year as well as momentum from the prior quarter.
Logistics income from operations for the second quarter of 2024 was $11.2 million, a decrease of $1.6 million, or 13%, compared to the same quarter in 2023 primarily due to lower brokerage volumes and decreased net revenue per order. Logistics operating ratio was 96.5% in the second quarter of 2024, compared to 96.3% in the second quarter of 2023. Effective gross margin management contributed to the 180 basis point improvement in operating ratio compared to the first quarter of 2024.
“Our results for the second quarter reflected progress in both external market dynamics and our continued internal efforts to restore margins,” said Darrell Campbell, executive vice president and Chief Financial Officer of Schneider. “We are approximately three quarters of the way through the freight allocation season in our network businesses and those outcomes have shifted the timing of achieving the level of pricing improvements that we previously anticipated. As a result, we are updating our full year 2024 adjusted diluted earnings per share guidance to a range of $0.80 – $0.90, as well as net capital expenditures guidance to a range of $300 – $350 million.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
