NYSE: CGI

Transcription

1 NYSE: CGI

2 Forward-Looking Statement Disclaimer This presentation, including documents incorporated herein by reference, will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forwardlooking statements. Please review our disclosures in filings with the Securities Exchange Commission. 2

3 About Celadon Overview Established: 1985 NYSE Ticker: CGI Shares Outstanding: 23.68M Market Capitalization: $525.7M Recent Price: $24.09 (3/12/14) Initiated Quarterly Dividend in week Range: $ $24.67 $200M unsecured line of credit Strong acquisition history Awards & Accomplishments Wal-Mart Platinum Carrier of the Year Healthy Trucking Fleet of the Year Ryder National Truckload Carrier of the Year Phillips -Van Heusen Truckload Carrier of the year First Carrier certified C-TPAT and ACE for border crossings Highway 2 Health Wellness Program (American Heart Association award) Voted Best Fleets to Drive For and Best Places to Work in Indiana 3

4 Celadon Operations Truckload Operations 3,500 tractors (including 500 Canada and 200 Mexico) 9,150 trailers Young Fleet Tractor: 1.7 years at 12/31/13 Trailer: 2.4 years at 12/31/13 Long Haul Focus International Footprint 30% Mexico / 21.5% Canada Intermodal Dedicated, Brokerage and Logistics Services 4

5 Past Acquisitions Burlington Motor Carriers Indiana March 2002 CX Roberson Illinois March 2005 Warrior Xpress Virginia March 2007 Continental Express Inc Arkansas December Highway Express Virginia September 2003 Digby Tennessee October 2006 Air Road Express Indiana June

6 Recent Acquisitions and Terminal Locations 6

7 % OF REVENUE % OF REVENUE Revenue Mix 40% 30% 29% 20% 23% 22% 20% 17% 17% 13% 16% 12% Logistics/Brokers Manufacturing & Industrial Retail Automotive Homegoods/Food & Beverage 0% 100% 80% 60% 40% 20% % 79% 45% 44% 16% 23% 15% 21% 13% 12% TOP 5 TOP 10 TOP 25 TOP 50 TOP 100 0%

8 Revenue by Service Type $23,144 3% Calendar Year 2012 $38,908 5% $15,652 2% $37,961 5% Calendar Year 2013 $46,956 6% $25,897 3% $128,018 18% $531,969 72% Truckload Fuel Intermodal Asset Light Other $131,614 16% $570,122 70% 8

9 Recent Quarter Comparison Previous 2nd (Dec) Quarter Results Q2 14 Expense Breakdown Fuel $1M Acquisition $1M Weather Maintenance $1M Acquisition $2M Increased Miles $1M Newer Emissions Salaries Higher seated count Recruiting Expense $600k Medical Benefits $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.24 $0.32 $0.22 $0.05 $- Q2 12 Q2 13 Q2 14 RPLM $1.528 $1.564 $1.632 Operating Ratio 91.5% 89.2% 94.3% Avg. Seated Tractors 2,633 2,698 3,418 Loaded Miles (thousands) 63,554 62,883 78,448 9

10 Previous Year Comparison Annual EPS $1.40 $1.20 $1.12 $1.15 $1.00 $0.80 $0.67 $0.60 $0.40 $0.20 $- FY11 FY12 FY13 Avg. RPLM $1.481 $1.529 $1.571 Avg. Operating Ratio 93.4% 90.2% 90.1% Avg. Seated Tractors 2,662 2,705 2,707 Total Loaded Miles (thousands) 263, , ,378 10

11 Fiscal Year Results $30.0 $25.0 Net Income $25.5 $27.3 $20.0 $15.0 $10.0 $5.0 $15.3 $11.7 $120.0 $100.0 $87.7 EBITDA $100.4 $94.4 $- FY11 FY12 FY13 FY14 Q1-Q2 EPS $80.0 $60.0 $40.0 $51.7 $1.40 $1.20 $1.00 $1.12 $1.15 $20.0 $- FY11 FY12 FY13 FY14 Q1-Q2 $0.80 $0.60 $0.40 $0.67 $0.50 $0.20 $- FY11 FY12 FY13 FY 14 Q1-Q2 11

12 State of the Truckload Industry Truckload industry is very fragmented Many small companies under stress Increased tractor and trailer costs Aging equipment Increased government regulations CSA Hours of Service ELDs Driver Shortage 12

13 Many Small Companies Under Stress During the December Qtr 2013, 335 companies were pulled from the road 7,775 total trucks During September Qtr 2013, 235 companies were pulled from the road 4,985 total trucks Reasons: Cost inflation outpacing rate increases Soft Demand Intermodal Competition Source: Avondale Partners Q4 13 Trucking Capacity Report 13

14 Increased Equipment Costs New Class 8 Truck Builds $140,000 $120,000 $100,000 $80,000 $60,000 $95,000 $45,000 $125,000 $125,000 $75,000 $105,000 $40,000 $20,000 $- 3-Year Old Truck $50,000 3-Year Old Truck $50,000 Equipment and operating financing is more costly and less available Average OTR truck age is approx. 7 years Higher maintenance costs for older equipment 7-Year Old Truck $20, Many companies do not have the capital to buy new trucks or maintain old trucks Insurance is more costly and difficult to obtain 14

15 Equipment Mileage Aging Equipment Avg Active Class 8 Tractor Age Increased costs of new tractors & limited financing options Maintenance Cost per Mile M 2.20M 2.10M 2.00M 1.90M 1.80M Active Class 8 Tractor Units 13% decrease *Approximately 650,000 truckload units 1.98 >550K 500K 350K 250K <=175K 1 year old tractor = approximately 120,000 miles $- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 Cost per Mile Source: Ward s and A.C.T. Research Celadon Statistics Average Tractor Age: 1.7 years Average Trailer Age: 2.4 years 15

16 Increased Government Regulation CSA Scores (as of Dec. 2013) Hours of Service CSA Basic CGI Alert Threshold Unsafe Driving Fatigued Driving Driver Fitness Controlled Substance and Alcohol 2 80 Vehicle Maintenance Implemented July 1, 2013 Requires 34 hour restarts, must include two consecutive periods between 1:00am and 5:00am, and 1 week between 34 hour restarts Requires a 30 minute break after 8 hours of driving CSA Impact Driver pool will decrease Costs related to compliance and insurance will increase Costs related to accident litigation will increase HOS Impact 2-3% decrease in mileage productivity Decreases capacity Decreases potential earnings for drivers Decreases utilization 16

17 Driver Shortage Driver vs Employment Alternatives Home Time Lifestyle More Pay Celadon Actions Acquisitions Driving School 3,500 3,300 3,100 2,900 2,700 2,500 Celadon Seated Trucks 17

18 CY 13 Rate & Revenue Growth $225 $1.640 $200 $175 $150 $125 $30.9M $31.2M $33.1M $36.4M $1.620 $1.600 $1.580 $100 $75 $50 $25 $118.7M $131.4M $142.0M $157.2M $1.560 $1.540 $1.520 $- Mar-13 Jun-13 Sep-13 Dec-13 Revenue Fuel Revenue Rate Per Loaded Mile $1.500 Each 1 has an approximate annual impact of $2.6 million in pre-tax profit or $.08 EPS 18

19 Strategy Gain truckload market share by leveraging our service offerings and customer relationships Improve asset productivity through enhanced technology and investments in human capital Continue to drive out costs and recognize synergies from previous acquisitions as we complete integrations Maintain our long haul and international focus, while leveraging our expanded service offerings to our customers Pursue strategic acquisition opportunities on an opportunistic basis 19