Phoenix-based Knight Transportation Inc. said second quarter revenues increased 8.7 percent to $180.2 million from $165.8 million for the same quarter of 2006. Revenue, before fuel surcharge, increased 9.0 percent, to $153.0 million
from $140.4 million for the same quarter of 2006.
Net income increased to $18.2 million from $18.1 million for the same period of 2006. Net income per diluted share for the quarter was $0.21, compared to $0.21 for the same period of 2006.
Year-to-date, total revenue increased 10.1 percent, to $346.7 million from $314.8 million for the same period of 2006. Revenue, before fuel surcharge, increased 10.4 percent, to $297.8 million from $269.7 million for the same period of 2006. Net income increased to $34.8 million from $34 million for the same period of 2006. Net income per diluted share was $0.40 compared to $0.39 for the same period of 2006.
Chairman and Chief Executive Officer Kevin P. Knight, said, "Our industry continued to experience a challenging freight environment during the second quarter, as industry capacity of truckload equipment outpaced freight demand, leading to pricing pressure and lower utilization. Based on the sharp decline in new truck builds in 2007, following the 2006 pre-buy by many competitors, and a modestly growing economy, we expect the relationship between capacity and demand to reverse over the next several quarters. While the timing and magnitude of improvements in the freight environment are difficult to predict, we believe that continuing to develop our service center network and grow our fleet will position us favorably when our markets strengthen again.
"Despite the more challenging environment, we continued to execute our business model of leading growth and profitability. Our net income, as a percentage of revenue before fuel surcharge, for this quarter was 11.9 percent, and our operating ratio was 80.8 percent. Our dry van business, which accounts for approximately 85 percent of revenues, posted an operating ratio, net of fuel surcharge, of 78.7 percent for the second quarter.
"For the quarter, average revenue per loaded mile, before fuel surcharge, increased slightly. Average revenue per total mile, before fuel surcharge, was slightly negative while empty miles increased by 90 basis points."