Knight Transportation Profit Gains 36%, New Business Unit Formed
July 23, 2014
Trucking company and logistics provider Knight Transportation has reported a second quarter profit showing a 36% increase from the same time a year ago.
Net income totaled $25.8 million compared to $18.9 million while revenue increased to $264.2 million compared to $244.8 million, a 7.9% gain for the Arizona-based operation.
For the first six months of the year net income increased 31.4% from the same time in 2013 to $44.8 million while revenue moved 6.9% higher, hitting $513.3 million
"During the second quarter, overall demand remained strong while capacity appeared to tighten. Both our trucking and logistics segments increased revenue and operating income meaningfully, when compared to the same quarter last year,” said Kevin Knight, chairman and CEO. “In our trucking business, revenue per tractor increased 6%, year over year, with a 5.6% improvement in revenue per loaded mile, a 3.1% increase in our length of haul, a 140 basis point improvement in our non-paid empty mile percentage, and a 1.1% decrease in miles per tractor,”
He said in the company’s logistics business, revenue growth was strong and gross margin percentage improved. “We are encouraged by the positive momentum from our results over the past several quarters and feel well positioned for future growth and success.''
Knight said the company’s dedicated business has also experienced “meaningful revenue and earnings growth as we have seen an increase in opportunities to expand our dedicated fleet over the last several quarters.”
Knights brokerage business increased revenue 64.1%, increased gross margin 69.5%, and increased operating income 53.1%, when compared to the same quarter last year, while its intermodal business improved its operating ratio 470 basis points sequentially from the first quarter of 2014 and has now returned to operating profitably.
In the second quarter of 2014 Knight Transportation formed a new entity, Kool Trans, a full truckload temperature-controlled transportation company that will be marketed and operated separately from the company’s Knight Refrigerated business. Through Kool Trans, Knight said it plans to provide additional refrigerated capacity to the market through a fleet of new trucks as well as its network of third-party carriers through its truckload brokerage.
More details are on the Knight Transportation website.