Schneider National Acquires M&M, Shares Drop 0.3%

Schneider National has recently released its 10-K report, detailing its operations and financial performance for the year. The company is a transportation and logistics services provider, operating through three segments: Truckload, Intermodal, and Logistics. Schneider National offers a diversified portfolio of complementary service offerings, combining truckload services with intermodal and logistics offerings, to serve its customers’ varied transportation needs.

The most important financial metrics and business changes reported by Schneider National are as follows:

Acquisitions: The company completed the acquisition of M&M, a privately held truckload carrier, in August 2023, which complements its growing dedicated operations. This acquisition is reported in dedicated operations as part of the Truckload segment beginning in the third quarter of 2023.

Strategy: Schneider National aims to deliver a superior portfolio of services to grow revenue, profitability, and shareholder returns. The company seeks to leverage its core strengths to drive organic growth, expand capabilities in the specialty and dedicated freight markets, improve operations and margins through technology investments, allocate capital across businesses to maximize return on capital, and create a differentiated driver and associate experience.

Results of Operations: In the year ended December 31, 2023, operating revenues were $5,498.9 million, compared to $6,604.4 million in the prior year. Revenues (excluding fuel surcharge) decreased from $5,741.9 million in 2022 to $4,814.6 million in 2023. Income from operations decreased from $600.4 million in 2022 to $296.4 million in 2023. Adjusted income from operations also declined from $617.0 million in 2022 to $302.9 million in 2023. The operating ratio increased from 90.9% in 2022 to 94.6% in 2023, while the adjusted operating ratio rose from 89.3% in 2022 to 93.7% in 2023. Net income decreased from $457.8 million in 2022 to $238.5 million in 2023, with adjusted net income also declining from $471.5 million in 2022 to $243.4 million in 2023.

Non-GAAP Financial Measures: Schneider National presents non-GAAP financial measures, including revenues (excluding fuel surcharge), adjusted income from operations, adjusted operating ratio, and adjusted net income. These measures are used to assist investors in understanding the business by removing the impact of items that do not reflect the core operating performance and providing comparable financial results between periods.

Today the company's shares have moved -0.3% to a price of $23.83. For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.