Schneider National announces its 4Q’23 and FY’23 results, showing decrease of 17% revenue y-o-y


Schneider National, Inc. announces results for the fourth quarter and year ended December 31, 2023. Enterprise income from operations for the fourth quarter of 2023 was $31.3m, a decrease of $112.0m, or 78%, compared to the same quarter in 2022. Fourth quarter 2023’s diluted earnings per share was $0.15 compared to $0.62 in the prior year. Enterprise adjusted diluted earnings per share was $0.16 in the fourth quarter of 2023. Costs associated with the adverse development of claims were partially offset by a lower full year effective tax rate due to changes in tax credits and valuation allowances and resulted in an unfavourable $0.04 net impact to earnings per share.

“Our fourth quarter results reflect the persistent challenges of the current freight environment, as well as costs primarily related to the adverse development of two recent accident claims. We recognized stabilization in network operating conditions through the end of the year along with continued momentum in dedicated, while logistics faced ongoing pricing challenges. Despite the well-known constraints of the macro environment, we made several key strides this year in advancing our long-term positioning, including adding 750 trucks to our dedicated fleet through organic and acquisitive growth, welcoming our new CPKC rail partnership, and completing our first year partnering with the Union Pacific, all of which were enabled by the strength of our portfolio and balance sheet.” says Mark Rourke, President and Chief Executive Officer of Schneider.

Results of Operations – Reportable Segments

Truckload

Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2023 were $550.7m, an increase of $5.3m, or 1%, compared to the same quarter in 2022 due to the impact of dedicated organic and acquisitive growth, largely offset by lower pricing in network. Truckload network volumes improved, and price stabilized sequentially through the quarter.

Truckload revenue per truck per week was $4,057, a decrease of 3% compared to the same quarter in 2022. Truckload income from operations was $18.8m in the fourth quarter of 2023, a decrease of $50.1m, or 73% compared to the same quarter in 2022 due to lower network pricing, as well as increased claims cost, a net loss on the sale of equipment compared to net gains in the prior year, and inflationary costs. Truckload operating ratio was 96.6% in the fourth quarter of 2023 compared to 87.4% in the fourth quarter of 2022.

Intermodal

Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2023 were $260.6m, a decrease of $54.9m, or 17%, compared to the same quarter in 2022, primarily driven by 17% lower revenue per order. For the quarter, Intermodal volumes decreased 1% compared to the prior year, though volumes increased year over year in December.

Intermodal income from operations for the fourth quarter of 2023 was $6.2m, a decrease of $46.6m, or 88%, compared to the same quarter in 2022, primarily due to lower pricing and volumes, as well as increased empty repositioning and claims cost. Intermodal operating ratio was 97.6% in the fourth quarter of 2023, compared to 83.3% in the fourth quarter of 2022.

Logistics

Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2023 were $342.1m, a decrease of $82.9m, or 20%, compared to the same quarter in 2022 primarily due to decreased revenue per order and lower brokerage volume year over year.

Logistics income from operations for the fourth quarter of 2023 was $6.1m, a decrease of $18.0m, or 75%, compared to the same quarter in 2022. The decrease was largely driven by lower net revenue per order, partially due to the lack of promotional revenue in the quarter, as well as increased claims cost. Logistics operating ratio was 98.2% in the fourth quarter of 2023, compared to 94.3% in the fourth quarter of 2022.

Business Outlook

“While the continuing impacts of the freight downcycle were felt across our portfolio in 2023, we believe the signs of stabilization seen in the fourth quarter of 2023 may be indicative of a broader freight market rebalancing ahead of us in 2024. However, the shape of the recovery remains uncertain and is likely to be disproportionately weighted towards the second half of the year.” says Darrell Campbell, Executive Vice President and Chief Financial Officer of Schneider.

“As we enter 2024, we are intently focused on our targeted actions to restore margins, deliver on our commercial and operational objectives, and further execute on our cost containment strategies. Based on these strategic priorities and market expectations, our guidance for full year 2024 adjusted diluted earnings per share is $1.15 – $1.30, with a full year effective tax rate of approximately 24.5%. Our net capital expenditures guidance for full year 2024 is a range of $400 to $450m,” Darrell Campbell added.

Source: Schneider National, Inc.