Business Overview
APPENDIX
Non-GAAP Reconciliation-Revenues Excluding Fuel Surcharge¹
Non-GAAP Reconciliation-Adjusted Income from Operations¹
($M)
FY2017
FY2022
FY2023 4Q22
4Q23
($M)
FY2017
FY2022
FY2023
4Q22
4Q23
Operating revenues
$4,384
$6,604
$5,499
$1,562
$1,372
Income from operations
$280
$600
$296
$143
$31
Litigation and audit assessments²
62
3
Less: fuel surcharge revenues
386
863
684
214
177
Revenues excluding fuel
surcharge
Duplicate chassis costs³
15
$3,997
$5,742
$4,815
$1,348
$1,195
WSL contingent consideration adjustment4
(14)
I
1
Acquisition-related costs6
Non-GAAP Reconciliation-Adjusted Net Income¹
Property gain - net
($M)
FY2017
FY2022
FY2023
4Q22
4Q23
Amortization of intangible assets
Sale of business⁹
Net income
$390
$458
$239
$110
$27
Adjusted income from operations
$282
1
(51)
3
1
5
5
$617
$303
$148
$33
Litigation and audit assessments²
62
3
1. Table may not sum due to rounding.
Duplicate chassis costs³
15
WSL contingent consideration
adjustment4
(14)
Tax Cuts and Jobs Act5
(230)
1
I
Acquisition-related costs6
0
1
.
.
Property gain net?
(51)
Amortization of intangible assets
3
1
Sale of business9
5
5
Income tax adjustment10
(1)
(3)
(2)
0
Adjusted net income
$161
$472
$243
$115
$28
2. 2023- Includes $2.9M and $5.2M for the years ended Dec 31, 2023 and Dec 31, 2022, respectively, for charges related to adverse audit
assessments for prior period state sales tax on rolling stock equipment used within that state. 2022- Includes a $57.0M charge for an adverse
settlement related to a lawsuit with former owners of WSL, inclusive of prejudgment interest and the former owners' attorneys' fees.
3. As of December 31, 2017, the Company completed its migration to an owned chassis model, which required the replacement of rented chassis with
owned chassis. Accordingly, the Company adjusted its income from operations for rental costs related to idle chasses as rented units were
replaced.
4. Represents a fair value adjustment to the contingent consideration related to the acquisition of Watkins Shepard and Lodeso (WSL).
5. Represents the effect on deferred assets and liabilities of the change in the federal income tax rate from 35% to 21% as a result of the Tax Cuts
and Jobs Act enacted in December 2017.
6. Advisory, legal and accounting costs related to the Company's acquisitions.
7. Net gain on the sale of our Canadian facility due to a change in approach to servicing Canada.
8. Amortization expense related to intangible assets acquired through recent business acquisitions. As we finalized our purchase accounting
adjustments related to intangible assets, and to better reflect our ongoing operations, we made the decision to exclude the related amortization
expense from non-GAAP earnings beginning in the fourth quarter of 2023.
9. Includes loss from sale of our China-based logistics operations.
10. Tax impacts are calculated using the applicable consolidated federal and state effective tax rate, modified to remove the impact of tax credit and
adjustments not applicable to the specific items.
28
28
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