| General
|
|
|
|
|
|
|
(in millions) | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash | $ | 1.3 | |
Receivables | 16.2 | ||
Inventories | 0.5 | ||
Prepaid expenses and other current assets | 4.4 | ||
Property and equipment | 81.8 | ||
Capitalized software and other noncurrent assets | 5.8 | ||
Intangible assets | 10.9 | ||
Goodwill | 138.2 | ||
Total assets acquired | 259.1 | ||
Payables assumed | 7.8 | ||
Accrued liabilities assumed | 5.3 | ||
Current maturities of debt and capital lease obligations assumed | 47.7 | ||
Debt and capital lease obligations assumed | 46.2 | ||
Other noncurrent liabilities assumed | 1.7 | ||
Fair value of total consideration transferred | $ | 150.4 |
(in millions, except per share data) | Nine Months Ended September 30, 2016 | ||
Pro forma net sales | $ | 3,049.4 | |
Pro forma net income | $ | 107.0 | |
Basic earnings per share as reported | $ | 0.70 | |
Pro forma basic earnings per share | $ | 0.69 | |
Diluted earnings per share as reported | $ | 0.70 | |
Pro forma diluted earnings per share | $ | 0.68 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Beginning balance | $ | 0.6 | $ | 13.5 | $ | 13.5 | $ | 13.5 | |||||||
Change in fair value | (0.3 | ) | — | (13.2 | ) | — | |||||||||
Ending balance | $ | 0.3 | $ | 13.5 | $ | 0.3 | $ | 13.5 |
|
September 30, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Zero coupon bonds | $ | 3.8 | $ | 3.8 | $ | 3.8 | $ | 3.8 | |||||||
U.S. treasury and government agencies | 6.0 | 6.0 | 8.0 | 8.1 | |||||||||||
Asset-backed securities | 0.3 | 0.3 | 0.4 | 0.4 | |||||||||||
Corporate debt securities | 11.2 | 11.4 | 14.4 | 14.5 | |||||||||||
State and political subdivisions | 22.7 | 22.5 | 26.2 | 25.7 | |||||||||||
Total marketable securities | $ | 44.0 | $ | 44.0 | $ | 52.8 | $ | 52.5 |
|
(in millions) | Truckload | Logistics | Other | Total | |||||||||||
Balance at December 31, 2016 | $ | 138.1 | $ | 14.2 | $ | 11.7 | $ | 164.0 | |||||||
Foreign currency translation | — | — | 0.5 | 0.5 | |||||||||||
Balance at September 30, 2017 | $ | 138.1 | $ | 14.2 | $ | 12.2 | $ | 164.5 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Customer lists | $ | 10.5 | $ | 2.3 | $ | 8.2 | $ | 10.5 | $ | 1.4 | $ | 9.1 | |||||||||||
Trade names | 1.4 | 0.6 | 0.8 | 1.4 | 0.3 | 1.1 | |||||||||||||||||
Total intangible assets | $ | 11.9 | $ | 2.9 | $ | 9.0 | $ | 11.9 | $ | 1.7 | $ | 10.2 |
Remaining 2017 | $ | 0.4 | |
2018 | 1.4 | ||
2019 | 1.2 | ||
2020 | 0.9 | ||
2021 | 0.9 | ||
2022 and thereafter | 4.2 | ||
$ | 9.0 |
|
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Unsecured senior notes: principal payable at maturity; interest payable in quarterly or semiannual installments through 2025; weighted-average interest rate of 3.36% and 3.66% for 2017 and 2016, respectively | $ | 400.0 | $ | 500.0 | |||
Equipment financing notes: principal and interest payable in monthly installments through 2023; weighted average interest rate of 3.76% and 3.82% for 2017 and 2016, respectively | 34.0 | 49.3 | |||||
Secured credit facility: collateralized by certain trade receivables; interest rate of 1.68% for 2016 | — | 135.0 | |||||
Total principal outstanding | 434.0 | 684.3 | |||||
Current maturities | (18.2 | ) | (254.4 | ) | |||
Debt issuance costs | (0.9 | ) | (1.1 | ) | |||
Long-term debt | $ | 414.9 | $ | 428.8 |
|
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Future minimum payments to be received on leases | $ | 145.9 | $ | 137.3 | |||
Guaranteed residual lease values | 125.6 | 124.5 | |||||
Total minimum lease payments to be received | 271.5 | 261.8 | |||||
Unearned income | (30.3 | ) | (29.5 | ) | |||
Net investment in leases | 241.2 | 232.3 | |||||
Current maturities of lease receivables | 101.1 | 101.2 | |||||
Less—allowance for doubtful accounts | (1.4 | ) | (1.0 | ) | |||
Current portion of lease receivables—net of allowance | 99.7 | 100.2 | |||||
Lease receivables—noncurrent | $ | 141.5 | $ | 132.1 |
|
|
Class A Redeemable Common Shares | Class B Redeemable Common Shares | Accumulated Earnings | Accumulated Other Comprehensive Income | ||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||
BALANCE—December 31, 2016 | 83.0 | $ | 563.2 | 73.3 | $ | 497.2 | $ | 125.1 | $ | 0.9 | $ | 1,186.4 | |||||||||||||
Net income | — | — | — | — | 22.6 | — | 22.6 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||
Dividends declared at $0.05 per share | — | — | — | — | (7.8 | ) | — | (7.8 | ) | ||||||||||||||||
Change in redemption value of redeemable common shares | — | 67.3 | — | 59.3 | (126.6 | ) | — | — | |||||||||||||||||
Transfer from temporary equity to common equity | (83.0 | ) | (630.5 | ) | (73.3 | ) | (556.5 | ) | (13.3 | ) | (0.9 | ) | (1,201.2 | ) | |||||||||||
BALANCE—September 30, 2017 | — | $ | — | — | $ | — | $ | — | $ | — | $ | — |
|
(in millions, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Basic earnings per common share: | ||||||||||||||||
Net income available to common shareholders | $ | 36.9 | $ | 36.8 | $ | 106.0 | $ | 109.1 | ||||||||
Weighted average common shares issued and outstanding | 176.9 | 156.4 | 169.2 | 156.1 | ||||||||||||
Basic earnings per common share | $ | 0.21 | $ | 0.24 | $ | 0.63 | $ | 0.70 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income applicable to diluted earnings per common share | $ | 36.9 | $ | 36.8 | $ | 106.0 | $ | 109.1 | ||||||||
Dilutive potential common shares: | ||||||||||||||||
Restricted share units | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Dilutive potential common shares | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Total diluted average common shares issued and outstanding | 177.0 | 156.6 | 169.3 | 156.3 | ||||||||||||
Diluted earnings per common share | $ | 0.21 | $ | 0.24 | $ | 0.63 | $ | 0.70 |
|
|
Revenues by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 551.7 | $ | 540.8 | $ | 1,616.8 | $ | 1,551.0 | ||||||||
Intermodal | 196.0 | 187.6 | 571.4 | 559.7 | ||||||||||||
Logistics | 209.1 | 194.3 | 584.7 | 539.9 | ||||||||||||
Other | 85.4 | 66.5 | 214.5 | 171.5 | ||||||||||||
Fuel surcharge | 93.9 | 81.3 | 276.8 | 209.7 | ||||||||||||
Inter-segment eliminations | (25.3 | ) | (17.3 | ) | (71.8 | ) | (56.0 | ) | ||||||||
Operating revenues | $ | 1,110.8 | $ | 1,053.2 | $ | 3,192.4 | $ | 2,975.8 |
Income from Operations by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 41.1 | $ | 53.6 | $ | 132.9 | $ | 157.5 | ||||||||
Intermodal | 12.2 | 10.9 | 30.0 | 31.6 | ||||||||||||
Logistics | 9.1 | 8.4 | 20.8 | 21.7 | ||||||||||||
Other | 1.7 | (2.1 | ) | 2.9 | (8.3 | ) | ||||||||||
Income (Expense) from operations | $ | 64.1 | $ | 70.8 | $ | 186.6 | $ | 202.5 |
Depreciation and Amortization Expense by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 51.7 | $ | 50.5 | $ | 152.7 | $ | 141.1 | ||||||||
Intermodal | 8.8 | 7.8 | 25.3 | 23.2 | ||||||||||||
Logistics | 0.1 | 0.1 | 0.3 | 0.3 | ||||||||||||
Other | 9.9 | 11.6 | 28.7 | 33.1 | ||||||||||||
Depreciation and amortization expense | $ | 70.5 | $ | 70.0 | $ | 207.0 | $ | 197.7 |
|
|
(in millions) | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash | $ | 1.3 | |
Receivables | 16.2 | ||
Inventories | 0.5 | ||
Prepaid expenses and other current assets | 4.4 | ||
Property and equipment | 81.8 | ||
Capitalized software and other noncurrent assets | 5.8 | ||
Intangible assets | 10.9 | ||
Goodwill | 138.2 | ||
Total assets acquired | 259.1 | ||
Payables assumed | 7.8 | ||
Accrued liabilities assumed | 5.3 | ||
Current maturities of debt and capital lease obligations assumed | 47.7 | ||
Debt and capital lease obligations assumed | 46.2 | ||
Other noncurrent liabilities assumed | 1.7 | ||
Fair value of total consideration transferred | $ | 150.4 |
(in millions, except per share data) | Nine Months Ended September 30, 2016 | ||
Pro forma net sales | $ | 3,049.4 | |
Pro forma net income | $ | 107.0 | |
Basic earnings per share as reported | $ | 0.70 | |
Pro forma basic earnings per share | $ | 0.69 | |
Diluted earnings per share as reported | $ | 0.70 | |
Pro forma diluted earnings per share | $ | 0.68 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Beginning balance | $ | 0.6 | $ | 13.5 | $ | 13.5 | $ | 13.5 | |||||||
Change in fair value | (0.3 | ) | — | (13.2 | ) | — | |||||||||
Ending balance | $ | 0.3 | $ | 13.5 | $ | 0.3 | $ | 13.5 |
|
September 30, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Zero coupon bonds | $ | 3.8 | $ | 3.8 | $ | 3.8 | $ | 3.8 | |||||||
U.S. treasury and government agencies | 6.0 | 6.0 | 8.0 | 8.1 | |||||||||||
Asset-backed securities | 0.3 | 0.3 | 0.4 | 0.4 | |||||||||||
Corporate debt securities | 11.2 | 11.4 | 14.4 | 14.5 | |||||||||||
State and political subdivisions | 22.7 | 22.5 | 26.2 | 25.7 | |||||||||||
Total marketable securities | $ | 44.0 | $ | 44.0 | $ | 52.8 | $ | 52.5 |
|
(in millions) | Truckload | Logistics | Other | Total | |||||||||||
Balance at December 31, 2016 | $ | 138.1 | $ | 14.2 | $ | 11.7 | $ | 164.0 | |||||||
Foreign currency translation | — | — | 0.5 | 0.5 | |||||||||||
Balance at September 30, 2017 | $ | 138.1 | $ | 14.2 | $ | 12.2 | $ | 164.5 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Customer lists | $ | 10.5 | $ | 2.3 | $ | 8.2 | $ | 10.5 | $ | 1.4 | $ | 9.1 | |||||||||||
Trade names | 1.4 | 0.6 | 0.8 | 1.4 | 0.3 | 1.1 | |||||||||||||||||
Total intangible assets | $ | 11.9 | $ | 2.9 | $ | 9.0 | $ | 11.9 | $ | 1.7 | $ | 10.2 |
Remaining 2017 | $ | 0.4 | |
2018 | 1.4 | ||
2019 | 1.2 | ||
2020 | 0.9 | ||
2021 | 0.9 | ||
2022 and thereafter | 4.2 | ||
$ | 9.0 |
|
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Unsecured senior notes: principal payable at maturity; interest payable in quarterly or semiannual installments through 2025; weighted-average interest rate of 3.36% and 3.66% for 2017 and 2016, respectively | $ | 400.0 | $ | 500.0 | |||
Equipment financing notes: principal and interest payable in monthly installments through 2023; weighted average interest rate of 3.76% and 3.82% for 2017 and 2016, respectively | 34.0 | 49.3 | |||||
Secured credit facility: collateralized by certain trade receivables; interest rate of 1.68% for 2016 | — | 135.0 | |||||
Total principal outstanding | 434.0 | 684.3 | |||||
Current maturities | (18.2 | ) | (254.4 | ) | |||
Debt issuance costs | (0.9 | ) | (1.1 | ) | |||
Long-term debt | $ | 414.9 | $ | 428.8 |
|
(in millions) | September 30, 2017 | December 31, 2016 | |||||
Future minimum payments to be received on leases | $ | 145.9 | $ | 137.3 | |||
Guaranteed residual lease values | 125.6 | 124.5 | |||||
Total minimum lease payments to be received | 271.5 | 261.8 | |||||
Unearned income | (30.3 | ) | (29.5 | ) | |||
Net investment in leases | 241.2 | 232.3 | |||||
Current maturities of lease receivables | 101.1 | 101.2 | |||||
Less—allowance for doubtful accounts | (1.4 | ) | (1.0 | ) | |||
Current portion of lease receivables—net of allowance | 99.7 | 100.2 | |||||
Lease receivables—noncurrent | $ | 141.5 | $ | 132.1 |
|
Class A Redeemable Common Shares | Class B Redeemable Common Shares | Accumulated Earnings | Accumulated Other Comprehensive Income | ||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||
BALANCE—December 31, 2016 | 83.0 | $ | 563.2 | 73.3 | $ | 497.2 | $ | 125.1 | $ | 0.9 | $ | 1,186.4 | |||||||||||||
Net income | — | — | — | — | 22.6 | — | 22.6 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||
Dividends declared at $0.05 per share | — | — | — | — | (7.8 | ) | — | (7.8 | ) | ||||||||||||||||
Change in redemption value of redeemable common shares | — | 67.3 | — | 59.3 | (126.6 | ) | — | — | |||||||||||||||||
Transfer from temporary equity to common equity | (83.0 | ) | (630.5 | ) | (73.3 | ) | (556.5 | ) | (13.3 | ) | (0.9 | ) | (1,201.2 | ) | |||||||||||
BALANCE—September 30, 2017 | — | $ | — | — | $ | — | $ | — | $ | — | $ | — |
|
(in millions, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Basic earnings per common share: | ||||||||||||||||
Net income available to common shareholders | $ | 36.9 | $ | 36.8 | $ | 106.0 | $ | 109.1 | ||||||||
Weighted average common shares issued and outstanding | 176.9 | 156.4 | 169.2 | 156.1 | ||||||||||||
Basic earnings per common share | $ | 0.21 | $ | 0.24 | $ | 0.63 | $ | 0.70 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income applicable to diluted earnings per common share | $ | 36.9 | $ | 36.8 | $ | 106.0 | $ | 109.1 | ||||||||
Dilutive potential common shares: | ||||||||||||||||
Restricted share units | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Dilutive potential common shares | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Total diluted average common shares issued and outstanding | 177.0 | 156.6 | 169.3 | 156.3 | ||||||||||||
Diluted earnings per common share | $ | 0.21 | $ | 0.24 | $ | 0.63 | $ | 0.70 |
|
Revenues by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 551.7 | $ | 540.8 | $ | 1,616.8 | $ | 1,551.0 | ||||||||
Intermodal | 196.0 | 187.6 | 571.4 | 559.7 | ||||||||||||
Logistics | 209.1 | 194.3 | 584.7 | 539.9 | ||||||||||||
Other | 85.4 | 66.5 | 214.5 | 171.5 | ||||||||||||
Fuel surcharge | 93.9 | 81.3 | 276.8 | 209.7 | ||||||||||||
Inter-segment eliminations | (25.3 | ) | (17.3 | ) | (71.8 | ) | (56.0 | ) | ||||||||
Operating revenues | $ | 1,110.8 | $ | 1,053.2 | $ | 3,192.4 | $ | 2,975.8 |
Income from Operations by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 41.1 | $ | 53.6 | $ | 132.9 | $ | 157.5 | ||||||||
Intermodal | 12.2 | 10.9 | 30.0 | 31.6 | ||||||||||||
Logistics | 9.1 | 8.4 | 20.8 | 21.7 | ||||||||||||
Other | 1.7 | (2.1 | ) | 2.9 | (8.3 | ) | ||||||||||
Income (Expense) from operations | $ | 64.1 | $ | 70.8 | $ | 186.6 | $ | 202.5 |
Depreciation and Amortization Expense by Segment (in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Truckload | $ | 51.7 | $ | 50.5 | $ | 152.7 | $ | 141.1 | ||||||||
Intermodal | 8.8 | 7.8 | 25.3 | 23.2 | ||||||||||||
Logistics | 0.1 | 0.1 | 0.3 | 0.3 | ||||||||||||
Other | 9.9 | 11.6 | 28.7 | 33.1 | ||||||||||||
Depreciation and amortization expense | $ | 70.5 | $ | 70.0 | $ | 207.0 | $ | 197.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|