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Swift Transportation's (SWFT) CEO Jerry Moyes on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Results Earnings Conference Call

April 22, 2016, 11:00 AM ET


Jason Bates - VP of Finance and IR

Ginnie Henkels - EVP & CFO

Jerry Moyes - CEO

Richard Stocking - President & COO


Jason Bates - VP of Finance and IR


Good morning. My name is Chris and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2016 Earnings Call. [Operator Instructions] Thank you.

Jason Bates, you may begin your conference.

Jason Bates

Great. Thank you, Chris. We’d like to welcome everyone out to the Swift Transportation's first quarter 2016 Q&A session. As a reminder, we have posted a comprehensive letter to stockholders summarizing our results on the front page of our Investor Relations website.

We will start the call today with our forward-looking statement disclosure. This call contains statements that may constitute forward-looking statements, which are based on information currently available. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such forward looking statements are inherently uncertain, are based upon the current beliefs, assumptions and expectations of company management and current market conditions, which are subject to significant risks and uncertainties as set forth in the Risk Factor section of our most recently filed Annual Report Form 10K.

As a result of these and other factors, actual results may differ from those set forth in the forward-looking statements and the prices of the company's securities may fluctuate dramatically. The company makes no commitment and disclaims any duty to update or revise any forward-looking statements to reflect future events, new information or changes in these expectations.

So with that out of the way, I'd like to recognize the members of Swift Management Team on the line today. We have Jerry Moyes, our Founder and Chief Executive Officer; Richard Stocking, our President and Chief Operating Officer; and Ginnie Henkels, our Executive Vice President and Chief Financial Officer. Again, my name is Jason Bates, Swift's Vice President of Finance and Investor Relations Officer and I will be moderating today's Q&A session.

As a part of our evolving IR communication plan, this quarter we strive to streamline the Q&A process by addressing key themes and categories rather than focusing on every single questions submitted. We have attempted to address each of the more prevalent topics. However if you do have follow-up questions feel free to reach out to me after the call.

So we’ll start today’s call with some questions on EPS guidance and expectation, followed by a discussion of each of the segments.

Question-and-Answer Session

Q - Jason Bates

What are the risks and opportunities to your $1.45 to $1.55 adjusted EPS range?

Ginnie Henkels

Yes, opportunities would include a tightening capacity demand equation which would positively affect utilization and pricing beyond our base assumptions which Richard will address in a moment.

This could result from either an increase in consumer confidence and spending or due to shippers shifting freight to ELD compliant carriers. The primary risks to the current range our softness in the freight market, an increase in fuel prices and any significant claims or adverse developments.

Jason Bates

How much of the second half 2016 guidance is predicated on project work rebounding to the level experienced by the company in 2014 and earlier.

Ginnie Henkels

We are assuming project work to be in line with that what we experienced in 2015, not 2014 and earlier.

Jason Bates

Please clarify insurance claims "increase was associated with current year development and growth".