Schneider National Inc

Previous wording

(1)Includes $2.9 million for the three and six months ended June 30, 2023 for charges related to adverse audit assessments for prior period state sales tax on rolling stock equipment used within that state. Refer to Note 12, Commitments and Contingencies, for additional details.

Current wording

(1)Includes $2.9 million for the nine months ended September 30, 2023 for charges related to adverse audit assessments for prior period state sales tax on rolling stock equipment used within that state. Refer to Note 12, Commitments and Contingencies, for additional details.

Previous wording

(2)Amortization expense related to intangible assets acquired through recent business acquisitions. As we finalized our purchase accounting adjustments related to intangible assets, we made the decision to exclude the related amortization expense from adjusted income from operations and adjusted net income beginning in the fourth quarter of 2023. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to transportation services provided to our customers.

Current wording

(3)Amortization expense related to intangible assets acquired through recent business acquisitions. As we finalized our purchase accounting adjustments related to intangible assets, we made the decision to exclude the related amortization expense from adjusted income from operations and adjusted net income beginning in the fourth quarter of 2023. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to transportation services provided to our customers.

Previous wording

Enterprise net income decreased $42.2 million, approximately 54%, in the second quarter of 2024 compared to the same quarter in 2023, primarily due to a $52.8 million decrease in income from operations, partially offset by the corresponding $14.0 million decrease in the provision for income taxes.

Current wording

Enterprise net income decreased $5.0 million, approximately 14%, in the third quarter of 2024 compared to the same quarter in 2023, primarily due to decreases in income from operations of $3.6 million. Total other expenses increased $3.2 million, driven by investment gains recorded in 2023. These changes were partially offset by the corresponding $1.8 million decrease in the provision for income taxes.

Previous wording

Enterprise operating revenues decreased $29.8 million, approximately 2%, in the second quarter of 2024 compared to the same quarter in 2023.

Current wording

Enterprise operating revenues decreased $36.3 million, approximately 3%, in the third quarter of 2024 compared to the same quarter in 2023.

Previous wording

•a $30.1 million decrease in fuel surcharge revenues resulting from decreased fuel prices;

Current wording

•a $34.5 million decrease in fuel surcharge revenues resulting from decreased fuel prices;

Previous wording

•a $24.6 million decrease in Logistics segment revenues (excluding fuel surcharge) driven by decreased revenue per order and a decline in volume within our brokerage business due to freight market conditions;

Current wording

•a $12.3 million decrease in Logistics segment revenues (excluding fuel surcharge) driven by decreased revenue per order and a small decline in volume within our brokerage business due to freight market conditions;

Previous wording

•a $7.9 million decrease in Intermodal segment revenues (excluding fuel surcharge) due to reduced revenue per order, partially offset by a slight increase in orders;

Current wording

•and a $1.7 million increase in Intermodal segment revenues (excluding fuel surcharge) attributable to an increase in orders.

Previous wording

Enterprise income from operations decreased $52.8 million, approximately 51%, in the second quarter of 2024 compared to the same quarter in 2023, primarily due to a decrease in net revenue per order in Logistics, revenue per order in Intermodal, and revenue per truck per week in Truckload resulting from ongoing pricing pressures. The revenue impact of volume declines within our brokerage business was driven by continued downward pressure on brokerage demand. An increase in driver wages due to increased headcount primarily from the M&M acquisition, a reduction in gains on equipment sales, an increase in depreciation due to an increase in revenue equipment counts, and increases in insurance expense also contributed to the decrease. These factors were partially offset by an increase in Truckload volumes driven by Dedicated growth, including the

Current wording

Enterprise income from operations decreased $3.6 million, approximately 8%, in the third quarter of 2024 compared to the same quarter in 2023, largely related to decreases in net revenue per order in Logistics and volume within Network resulting from ongoing market pressures. Lower gains on equipment sales, an increase in depreciation related to higher revenue equipment counts and cost per unit, increases in insurance expense, and a slight volume reduction within Logistics also contributed to the decrease. These factors were partially offset by an increase in Dedicated volume driven by growth, a slight increase in Intermodal volume, and declines in purchased transportation costs.

Previous wording

Enterprise operating ratio (operating expenses as a percentage of operating revenues) increased on both a GAAP and adjusted basis when compared to the second quarter of 2023.

Current wording

Enterprise operating ratio (operating expenses as a percentage of operating revenues) increased on both a GAAP and adjusted basis when compared to the third quarter of 2023.

Previous wording

•Purchased transportation decreased $38.5 million, or 7%, quarter over quarter, primarily resulting from a decline in third-party carrier costs within Logistics due to lower brokerage volume and purchased transportation costs per order. Owner-operator purchased transportation costs also declined within Truckload due to a reduction in owner-operator capacity.

Current wording

•Purchased transportation decreased $49.0 million, or 9%, quarter over quarter, resulting from declines in owner-operator purchased transportation costs within Truckload due to a reduction in owner-operator capacity and reduced third-party carrier costs within Logistics due to lower brokerage volume and purchased transportation costs per order.

Previous wording

•Fuel and fuel taxes for company trucks increased $3.9 million, or 4%, quarter over quarter, driven by an increase in company driver miles, partially offset by a decrease in cost per gallon. A significant portion of fuel costs are recovered through our fuel surcharge programs.

Current wording

•Fuel and fuel taxes for company trucks decreased $21.4 million, or 18%, quarter over quarter, due to a lower cost per gallon, partially offset by an increase in company driver miles. A significant portion of fuel costs are recovered through our fuel surcharge programs.

Previous wording

•Depreciation and amortization increased $9.3 million, or 10%, quarter over quarter, mainly due to additional depreciation expense incurred as a result of trailer and tractor growth within Dedicated, the cumulative impacts from the increased cost of equipment, and incremental depreciation and amortization expense related to the M&M acquisition.

Current wording

•Depreciation and amortization increased $5.1 million, or 5%, quarter over quarter, mainly due to additional depreciation expense incurred as a result of trailer and tractor growth within Dedicated and the cumulative impacts from the increased cost of equipment.

Previous wording

•Operating supplies and expenses—net increased $16.6 million, or 12%, quarter over quarter, largely resulting from lower gains on sales of equipment due to a decrease in average sales price per unit and increases in cost of goods sold in our leasing business.

Current wording

•Operating supplies and expenses—net increased $30.9 million, or 22%, quarter over quarter, largely resulting from increases in cost of goods sold in our leasing business and lower gains on sales of equipment due to a decrease in average sales price per unit.

Previous wording

•Insurance expense increased $7.5 million, or 29%, quarter over quarter, driven by an increase in auto liability insurance costs related to an increase in premiums and severity of claims.

Current wording

•Insurance expense increased $9.8 million, or 37%, quarter over quarter, driven by an increase in auto liability insurance costs related to an increase in premiums and claims development.

Previous wording

•Other general expenses decreased $2.6 million, or 9%, quarter over quarter, primarily related to a reduction in bad debt expense.

Current wording

•Other general expenses decreased $15.5 million, or 33%, quarter over quarter, primarily related to a reduction in professional services and bad debt expense.

Previous wording

Our provision for income taxes decreased $14.0 million, or 54%, in the second quarter of 2024 compared to the same quarter in 2023, primarily due to lower taxable income. The effective income tax rate was 25.0% for the three months ended June 30, 2024 compared to 24.9% for the same quarter of 2023. Our provision for income taxes may fluctuate in future periods to the extent there are changes to tax laws and regulations.

Current wording

Our provision for income taxes decreased $1.8 million, or 17%, in the third quarter of 2024 compared to the same quarter in 2023, primarily due to lower taxable income. The effective income tax rate was 22.1% for the three months ended September 30, 2024 compared to 22.8% for the same quarter of 2023. Our provision for income taxes may fluctuate in future periods to the extent tax laws and regulations change.

Previous wording

Truckload income from operations decreased $34.1 million, approximately 53%, in the second quarter of 2024 compared to the same quarter in 2023. In addition to the revenue impacts of lower volumes and rate per loaded mile within Network, other items contributing to the decreased income from operations include an increase in salaries and wages expense due to higher driver headcount inclusive of the M&M acquisition, lower gains on equipment sales, and increased insurance premium expense. This was partially offset by decreased purchased transportation costs driven by a reduction in owner operator capacity.

Current wording

Truckload income from operations decreased $0.8 million, approximately 3%, in the third quarter of 2024 compared to the same quarter in 2023. In addition to the revenue impacts listed above, other items contributing to the decrease include an increase in salaries and wages expense largely due to the M&M acquisition, increased insurance premium expense, and lower gains on equipment sales. This was partially offset by decreased purchased transportation costs driven by a reduction in owner operator capacity.

Previous wording

Intermodal income from operations decreased $9.1 million, approximately 38%, in the second quarter of 2024 compared to the same quarter in 2023. Factors contributing to the decrease include the revenue impacts cited above and an increase in rail-related costs due to higher volumes. partially offset by network management and operational and dray cost improvements.

Current wording

Intermodal income from operations increased $4.6 million, approximately 41%, in the third quarter of 2024 compared to the same quarter in 2023. Factors contributing to the increase include the revenue impacts cited above and a decrease in rail related and dray execution costs, combined with other cost control measures.

Previous wording

Logistics revenues (excluding fuel surcharge) decreased $24.6 million, approximately 7%, in the second quarter of 2024 compared to the same quarter in 2023. This was primarily due to a decrease in brokerage revenue per order and a 4% reduction in brokerage volume driven by continued softness in the market.

Current wording

Logistics revenues (excluding fuel surcharge) decreased $12.3 million, approximately 4%, in the third quarter of 2024 compared to the same quarter in 2023. This was primarily due to a decrease in brokerage revenue per order and a slight reduction in brokerage volume driven by freight market conditions.

Previous wording

Other income from operations decreased $8.0 million in the second quarter of 2024 compared to the same quarter in 2023, mainly driven by a decrease in earnings within our leasing business.

Current wording

Other income from operations decreased $6.5 million in the third quarter of 2024 compared to the same quarter in 2023, driven by a decrease in earnings within our leasing business.

Previous wording

Enterprise net income decreased $121.7 million, approximately 69%, in the six months ended June 30, 2024 compared to the same period in 2023, primarily due to a $138.7 million decrease in income from operations and a $22.1 million unfavorable change in total other expenses (income)—net related largely to decreased gains on our equity investments and lower interest income. Decreases were partially offset by the corresponding $39.1 million decrease in the provision for income taxes. In the six months ended June 30, 2024, the Company recognized pre-tax net losses of $0.2 million compared to $17.7 million in pre-tax gains on our equity investments during the six months ended June 30, 2023.

Current wording

Enterprise net income decreased $126.7 million, approximately 60%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to a $142.3 million decrease in income from operations and a $25.3 million unfavorable change in total other expenses (income)—net related largely to decreased gains on our equity investments and lower interest income. Decreases were partially offset by the corresponding $40.9 million decrease in the provision for income taxes. In the nine months ended September 30, 2024, the Company recognized pre-tax net losses of $0.2 million compared to $20.0 million in pre-tax gains on our equity investments during the nine months ended September 30, 2023.

Previous wording

Enterprise operating revenues decreased $139.5 million, approximately 5%, in the six months ended June 30, 2024 compared to the same period in 2023.

Current wording

Enterprise operating revenues decreased $175.8 million, approximately 4%, in the nine months ended September 30, 2024 compared to the same period in 2023.

Previous wording

•an $81.9 million decrease in Logistics segment revenues (excluding fuel surcharge) driven by decreased revenue per order and a decline in brokerage volumes due to freight market conditions:

Current wording

•a $94.2 million decrease in Logistics segment revenues (excluding fuel surcharge) driven by reduced revenue per order and a decline in brokerage volumes due to freight market conditions;

Previous wording

•and a $6.8 million decrease in fuel surcharge revenues resulting from decreased fuel prices;

Current wording

•a $64.6 million decrease in fuel surcharge revenues resulting from lower fuel prices;

Previous wording

•and a $26.8 million decrease in Intermodal segment revenues (excluding fuel surcharge) due to a decrease in revenue per order;

Current wording

•and a $25.1 million decrease in Intermodal segment revenues (excluding fuel surcharge) due to a decrease in revenue per order;

Previous wording

•partially offset by an $8.7 million increase in Truckload segment revenues (excluding fuel surcharge) driven by an increase in Dedicated, including the M&M acquisition, and increases in revenue per truck per week. This was partially offset by declines in revenue within our Network business due to decreases in revenue per order and volume resulting from ongoing soft market conditions, and Network revenue per truck per week.

Current wording

•partially offset by a $5.6 million increase in Truckload segment revenues (excluding fuel surcharge) driven by Dedicated growth, including the M&M acquisition, and increases in Dedicated revenue per truck per week. This was partially offset by declines in revenue within our Network business due to decreases in volume from ongoing soft market conditions and Network revenue per truck per week.

Previous wording

Enterprise income from operations decreased $138.7 million, approximately 64%, in the six months ended June 30, 2024 compared to the same period in 2023, primarily due to a decrease in net revenue per order in Logistics, revenue per order in Intermodal, and revenue per truck per week in Truckload resulting from ongoing pricing pressures. The revenue impact of volume declines within our brokerage business was driven by continued downward pressure on brokerage demand. Also contributing to the decrease was an increase in driver wages primarily from increased headcount including the M&M acquisition, a reduction in gains on equipment sales, increases in insurance expense, and increased depreciation due to an increase in revenue equipment counts. These factors were partially offset by an increase in Truckload volumes attributable to our legacy Dedicated business and the M&M acquisition, a slight increase in Intermodal volumes, and reduced purchased transportation costs.

Current wording

Enterprise income from operations decreased $142.3 million, approximately 54%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to decreases in net revenue per order in Logistics, rate per total mile within Network, revenue per order in Intermodal, and volume declines within our brokerage business driven by continued downward pressure on brokerage demand. Other factors contributing to the decrease included an increase in driver wages largely from the M&M acquisition, increased cost of goods sold in our leasing business, reduced gains on equipment sales, increases in insurance expense, and increased depreciation due to higher revenue equipment counts and cost per unit. These decreases were partially offset by an increase in Dedicated volumes attributable to organic and acquisitive growth, inclusive of the M&M acquisition, and reduced purchased transportation costs.

Previous wording

•Purchased transportation costs decreased $92.9 million, or 8%, period over period, primarily resulting from decreased third-party carrier costs within Logistics due to lower purchased transportation costs per order and brokerage volumes, as well as a decline in owner-operator purchased transportation costs within Truckload due to a reduction in owner-operator capacity and lower pay per mile.

Current wording

•Purchased transportation costs decreased $141.9 million, or 9%, period over period, primarily resulting from reduced third-party carrier costs within Logistics due to lower purchased transportation costs per order and brokerage volumes, as well as a decline in owner-operator purchased transportation costs within Truckload driven by a reduction in owner-operator capacity.

Previous wording

•Fuel and fuel taxes for company trucks decreased $1.4 million, or 1%, period over period, driven by a decrease in cost per gallon, partially offset by an increase in company driver miles within Truckload. A significant portion of fuel costs are recovered through our fuel surcharge programs.

Current wording

•Fuel and fuel taxes for company trucks decreased $22.8 million, or 7%, period over period, driven by a lower cost per gallon, partially offset by an increase in company driver miles within Truckload. A significant portion of fuel costs are recovered through our fuel surcharge programs.

Previous wording

•Depreciation and amortization increased $20.3 million, or 11%, period over period, mainly due to additional depreciation expense resulting from trailer and tractor growth within Dedicated, the ongoing impacts from the increased cost of equipment, and incremental depreciation and amortization expense related to the M&M acquisition.

Current wording

•Depreciation and amortization increased $25.4 million, or 9%, period over period, mainly due to additional depreciation expense resulting from trailer and tractor growth within Dedicated, the ongoing impacts from the increased cost of equipment, and incremental depreciation and amortization expense related to the M&M acquisition.

Previous wording

•Operating supplies and expenses—net increased $22.3 million, or 8%, period over period, driven by a reduction in gains on equipment sales due to a decrease in average sale price and an increase in cost of goods sold in our leasing business. These factors were partially offset by a decrease in equipment rental expense as a result of improved port fluidity and lower rail storage expense.

Current wording

•Operating supplies and expenses—net increased $53.2 million, or 12%, period over period, driven by an increase in cost of goods sold in our leasing business and a reduction in gains on equipment sales due to a decrease in average sale price. These factors were partially offset by a decrease in equipment rental expense as a result of improved port fluidity and lower rail storage expense.

Previous wording

•Insurance and related expenses increased $13.9 million, or 28%, period over period, driven by an increase in auto liability insurance costs related to an increase in premiums and severity of claims.

Current wording

•Insurance and related expenses increased $23.7 million, or 31%, period over period, driven by an increase in auto liability insurance costs related to an increase in premiums and claims development.

Previous wording

•Other general expenses decreased $7.1 million, or 11%, period over period, largely related to a decrease in driver onboarding costs as fewer drivers were hired due to market conditions along with a reduction in bad debt expense.

Current wording

•Other general expenses decreased $22.6 million, or 20%, period over period, largely related to a reduction in bad debt expense along with a decrease in professional services and driver recruiting costs.

Previous wording

Total other income decreased $22.1 million, approximately 157%, in the six months ended June 30, 2024 compared to the same period in 2023. This change was primarily driven by pre-tax net losses on our equity investments of $0.2 million in 2024 compared to pre-tax net gains of $17.7 million in 2023. Interest income also decreased $3.0 million in 2024 compared to 2023 primarily due to lower cash balances. See Note 6, Investments, for more information on our equity investments.

Current wording

Total other income decreased $25.3 million, approximately 187%, in the nine months ended September 30, 2024 compared to the same period in 2023. This change was primarily driven by pre-tax net losses on our equity investments of $0.2 million in 2024 compared to pre-tax net gains of $20.0 million in 2023. Interest income also decreased $3.6 million in 2024 compared to 2023 primarily due to lower cash balances. See Note 5, Investments, for more information on our equity investments.

Previous wording

Our provision for income taxes decreased $39.1 million, approximately 69%, in the six months ended June 30, 2024 compared to the same period in 2023 due to lower taxable income. The effective income tax rate was 25.0% for the six months ended June 30, 2024 compared to 24.5% for the same period in 2023. Our provision for income taxes may fluctuate in future periods to the extent there are changes to tax laws and regulations.

Current wording

Our provision for income taxes decreased $40.9 million, approximately 61%, in the nine months ended September 30, 2024 compared to the same period in 2023 due to lower taxable income. The effective income tax rate was 24.0% for the nine months ended September 30, 2024 compared to 24.2% for the same period in 2023. Our provision for income taxes may fluctuate in future periods to the extent tax laws and regulations change.

Previous wording

Truckload revenues (excluding fuel surcharge) increased $8.7 million, approximately 1%, in the six months ended June 30, 2024 compared to the same period in 2023. Volume increased slightly, largely driven by increased Dedicated volume due to organic new business growth and the acquisition of M&M, offset by a reduction in Network volume and rate per loaded mile due to market conditions.

Current wording

Truckload revenues (excluding fuel surcharge) increased $5.6 million in the nine months ended September 30, 2024 compared to the same period in 2023. Dedicated volume increased 8% due to organic new business growth and the acquisition of M&M, offset by a reduction in Network volume and rate per loaded mile due to market conditions.

Previous wording

Truckload income from operations decreased $81.8 million, approximately 64%, in the six months ended June 30, 2024 compared to the same period in 2023. Factors contributing to the decreased income from operations include the revenue impacts of Network listed above, an increase in driver wages (due to increased driver headcount, primarily related to the M&M acquisition), a decrease in gains on equipment sales, increased insurance premium expense, and an increase in depreciation expense as a result of growth within Dedicated (including the M&M acquisition). This was partially offset by a decrease in purchased transportation costs driven by reduced owner operator capacity.

Current wording

Truckload income from operations decreased $82.6 million, approximately 54%, in the nine months ended September 30, 2024 compared to the same period in 2023. Factors contributing to the decrease include the revenue impacts of Network listed above, increased wages largely as a result of the M&M acquisition, a decrease in gains on equipment sales, increased insurance premium expense, and an increase in depreciation expense as a result of growth within Dedicated (including the M&M acquisition). This was partially offset by a decrease in purchased transportation costs driven by reduced owner operator capacity.

Previous wording

Intermodal revenues (excluding fuel surcharge) decreased $26.8 million, approximately 5%, in the six months ended June 30, 2024 compared to the same period in 2023. This was driven by market conditions which led to a $157, or 6%, decrease in revenue per order, partially offset by a slight increase in volume.

Current wording

Intermodal revenues (excluding fuel surcharge) decreased $25.1 million, approximately 3%, in the nine months ended September 30, 2024 compared to the same period in 2023. This was driven by market conditions which led to a $121, or 5%, decrease in revenue per order.

Previous wording

Logistics revenues (excluding fuel surcharge) decreased $81.9 million, approximately 11%, in the six months ended June 30, 2024 compared to the same period in 2023. This was mainly the result of decreases in revenue per order and volume within our brokerage business, as well as reduced port dray revenues due to improved port fluidity in 2024.

Current wording

Logistics revenues (excluding fuel surcharge) decreased $94.2 million, approximately 9%, in the nine months ended September 30, 2024 compared to the same period in 2023. This was mainly the result of decreases in revenue per order and volume within our brokerage business, as well as reduced port dray revenues due to improved port fluidity in 2024.

Previous wording

Other income from operations decreased $10.1 million in the six months ended June 30, 2024 compared to the same period in 2023. The change was primarily due to a decrease in earnings within our leasing business, partially offset by $2.9 million of additional interest and penalties related to the sales tax audit assessment recorded in the second quarter of 2023. See Note 12, Commitments and Contingencies, for more information.

Current wording

Other income from operations decreased $16.6 million in the nine months ended September 30, 2024 compared to the same period in 2023. The change was primarily due to a decrease in earnings within our leasing business; partially offset by $2.9 million of additional interest and penalties related to the sales tax audit assessment recorded in the second quarter of 2023. See Note 12, Commitments and Contingencies, for more information.