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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Swift Transportation Company Class A (delisted) | NYSE:SWFT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 29.49 | 0 | 01:00:00 |
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Kevin P. Knight
Executive Chairman Knight Transportation, Inc. |
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Richard H. Dozer
Chairman Swift Transportation Company |
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Knight Transportation, Inc.
20002 North 19 th Avenue Phoenix, Arizona 85027 (800) 489-2000 Attn: Investor Relations |
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Swift Transportation Company
2200 South 75 th Avenue Phoenix, Arizona 85043 (602) 269-9700 Attn: Investor Relations |
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or
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or
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Okapi Partners LLC
1212 Avenue of the Americas, 24 th Floor New York, New York 10036 (888) 785-6617 Email: KnightTrans@okapipartners.com |
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Innisfree M&A Incorporated
501 Madison Avenue, 20 th Floor New York, New York 10022 Call Toll-Free: (888) 750-5834 Banks and Broker: (212) 750-5833 |
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| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | |
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For the Six Months
Ended June 30, |
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For the Years Ended December 31,
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Statements of Income Data:
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2017
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2016
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2016
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2015
|
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2014
(1)
|
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2013
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2012
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Total revenue
|
| | | $ | 544,425 | | | | | $ | 548,406 | | | | | $ | 1,118,034 | | | | | $ | 1,182,964 | | | | | $ | 1,102,332 | | | | | $ | 969,237 | | | | | $ | 936,036 | | |
Operating expenses
|
| | | | 493,377 | | | | | | 471,598 | | | | | | 969,555 | | | | | | 1,004,964 | | | | | | 939,610 | | | | | | 855,328 | | | | | | 827,769 | | |
Income from operations
|
| | | | 51,048 | | | | | | 76,808 | | | | | | 148,479 | | | | | | 178,000 | | | | | | 162,722 | | | | | | 113,909 | | | | | | 108,267 | | |
Interest income & other income
|
| | | | 1,511 | | | | | | 3,389 | | | | | | 5,248 | | | | | | 9,502 | | | | | | 9,838 | | | | | | 3,257 | | | | | | 1,967 | | |
Interest expense
|
| | | | (136 ) | | | | | | (559 ) | | | | | | (897 ) | | | | | | (998 ) | | | | | | (730 ) | | | | | | (462 ) | | | | | | (457 ) | | |
Income before income taxes
|
| | | | 52,423 | | | | | | 79,638 | | | | | | 152,830 | | | | | | 186,504 | | | | | | 171,830 | | | | | | 116,704 | | | | | | 109,777 | | |
Net income
|
| | | | 33,365 | | | | | | 48,683 | | | | | | 95,238 | | | | | | 118,457 | | | | | | 104,021 | | | | | | 70,024 | | | | | | 64,763 | | |
Net income attributable to
Knight (2) |
| | | | 32,847 | | | | | | 47,935 | | | | | | 93,863 | | | | | | 116,718 | | | | | | 102,862 | | | | | | 69,282 | | | | | | 64,117 | | |
Basic earnings per share
|
| | | | 0.41 | | | | | | 0.60 | | | | | | 1.17 | | | | | | 1.43 | | | | | | 1.27 | | | | | | 0.87 | | | | | | 0.80 | | |
Diluted earnings per
share |
| | | | 0.40 | | | | | | 0.59 | | | | | | 1.16 | | | | | | 1.42 | | | | | | 1.25 | | | | | | 0.86 | | | | | | 0.80 | | |
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As of June 30,
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As of December 31,
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Balance Sheet Data:
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2017
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2016
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2016
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2015
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2014
(1)
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2013
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2012
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Working capital
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| | | $ | 180,236 | | | | | $ | 117,754 | | | | | $ | 111,541 | | | | | $ | 164,090 | | | | | $ | 145,667 | | | | | $ | 101,768 | | | | | $ | 109,274 | | |
Total assets
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| | | | 1,099,408 | | | | | | 1,086,794 | | | | | | 1,078,525 | | | | | | 1,120,232 | | | | | | 1,082,285 | | | | | | 807,121 | | | | | | 728,512 | | |
Total debt
(2)
|
| | | | — | | | | | | 60,000 | | | | | | 18,000 | | | | | | 112,000 | | | | | | 134,400 | | | | | | 38,000 | | | | | | 80,000 | | |
Cash dividend per Knight share
(3)
|
| | | | 0.12 | | | | | | 0.12 | | | | | | 0.24 | | | | | | 0.24 | | | | | | 0.24 | | | | | | 0.24 | | | | | | 0.74 | | |
Knight
Transportation stockholders’ equity |
| | | | 816,345 | | | | | | 746,572 | | | | | | 786,473 | | | | | | 738,398 | | | | | | 677,760 | | | | | | 553,588 | | | | | | 490,232 | | |
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For the Six Months
Ended June 30, |
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For the Years Ended December 31,
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Statements of Income
Data: (1) |
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2017
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2016
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2016
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2015
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2014
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2013
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2012
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Operating revenue
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| | | $ | 1,956,889 | | | | | $ | 1,979,677 | | | | | $ | 4,031,517 | | | | | $ | 4,229,322 | | | | | $ | 4,298,724 | | | | | $ | 4,118,195 | | | | | $ | 3,976,085 | | |
Operating income
|
| | | | 67,746 | | | | | | 126,688 | | | | | | 242,012 | | | | | | 370,104 | | | | | | 370,070 | | | | | | 356,959 | | | | | | 351,816 | | |
Interest and derivative
interest expense |
| | | | 14,383 | | | | | | 16,161 | | | | | | 30,598 | | | | | | 42,322 | | | | | | 86,559 | | | | | | 103,386 | | | | | | 127,150 | | |
Income before income
taxes |
| | | | 49,496 | | | | | | 110,784 | | | | | | 214,969 | | | | | | 316,786 | | | | | | 250,626 | | | | | | 256,404 | | | | | | 201,701 | | |
Net income
|
| | | | 31,504 | | | | | | 74,801 | | | | | | 149,267 | | | | | | 197,577 | | | | | | 161,152 | | | | | | 155,422 | | | | | | 140,087 | | |
Diluted earnings per share
|
| | | | 0.23 | | | | | | 0.55 | | | | | | 1.10 | | | | | | 1.38 | | | | | | 1.12 | | | | | | 1.09 | | | | | | 1.00 | | |
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As of June 30,
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As of December 31,
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Balance Sheet Data:
(1)
|
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2017
|
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2016
|
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2016
|
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2015
|
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2014
|
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2013
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2012
|
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Cash and cash equivalents,
excluding restricted cash |
| | | $ | 42,884 | | | | | $ | 118,132 | | | | | $ | 89,391 | | | | | $ | 107,590 | | | | | $ | 105,132 | | | | | $ | 59,178 | | | | | $ | 53,596 | | |
Net property and equipment
|
| | | | 1,458,572 | | | | | | 1,528,558 | | | | | | 1,548,601 | | | | | | 1,651,100 | | | | | | 1,542,130 | | | | | | 1,447,807 | | | | | | 1,397,536 | | |
Total assets
(2)(3)
|
| | | | 2,590,688 | | | | | | 2,772,866 | | | | | | 2,745,666 | | | | | | 2,919,667 | | | | | | 2,892,721 | | | | | | 2,809,008 | | | | | | 2,791,981 | | |
Debt: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Accounts receivable securitization
(3)
|
| | | | 294,464 | | | | | | 299,106 | | | | | | 279,285 | | | | | | 223,927 | | | | | | 334,000 | | | | | | 264,000 | | | | | | 204,000 | | |
Revolving line of
credit |
| | | | — | | | | | | 85,000 | | | | | | 130,000 | | | | | | 200,000 | | | | | | 57,000 | | | | | | 17,000 | | | | | | 2,531 | | |
Long-term debt and capital lease obligations
(3)
|
| | | | 641,529 | | | | | | 848,610 | | | | | | 735,741 | | | | | | 960,972 | | | | | | 1,104,066 | | | | | | 1,321,820 | | | | | | 1,430,598 | | |
| | |
For the
Six Months Ended June 30, 2017 |
| |
For the
Year Ended December 31, 2016 |
| ||||||
Pro Forma Condensed Combined Statement of Income Data: | | | | ||||||||||
Total revenue
|
| | | $ | 2,501,314 | | | | | $ | 5,149,551 | | |
Operating expenses
|
| | | | 2,391,600 | | | | | | 4,791,190 | | |
Income from operations
|
| | | | 109,714 | | | | | | 358,361 | | |
Interest income and other income
|
| | | | 4,958 | | | | | | 8,803 | | |
Interest expense
|
| | | | 14,519 | | | | | | 31,495 | | |
Income before income taxes
|
| | | | 100,153 | | | | | | 335,669 | | |
Net income
|
| | | | 65,289 | | | | | | 224,584 | | |
Net income attributable to Knight and Swift
|
| | | | 64,771 | | | | | | 223,209 | | |
Basic earnings per share
|
| | | | 0.37 | | | | | | 1.26 | | |
Diluted earnings per share
|
| | | | 0.36 | | | | | | 1.25 | | |
|
| | |
As of/For the
Six Months Ended June 30, 2017 |
| |
As of/For the
Year Ended December 31, 2016 |
| ||||||
Knight Historical per Common Share Data: | | | | ||||||||||
Net income – basic
|
| | | $ | 0.41 | | | | | $ | 1.17 | | |
Net income – diluted
|
| | | $ | 0.40 | | | | | $ | 1.16 | | |
Cash dividends paid
|
| | | $ | 0.12 | | | | | $ | 0.24 | | |
Book value
|
| | | $ | 10.07 | | | | | $ | 9.71 | | |
Swift Historical per Common Share Data: | | | | ||||||||||
Net income – basic
|
| | | $ | 0.24 | | | | | $ | 1.11 | | |
Net income – diluted
|
| | | $ | 0.23 | | | | | $ | 1.10 | | |
Cash dividends paid
|
| | | $ | — | | | | | $ | — | | |
Book value
|
| | | $ | 5.32 | | | | | $ | 4.96 | | |
Unaudited Pro Forma Combined per Share Data: | | | | ||||||||||
Net income – basic
|
| | | $ | 0.37 | | | | | $ | 1.26 | | |
Net income – diluted
|
| | | $ | 0.36 | | | | | $ | 1.25 | | |
Cash dividends paid
|
| | | $ | 0.12 | | | | | $ | 0.24 | | |
Book value
|
| | | $ | 23.68 | | | | | | N/A | | |
| | |
Knight Common Stock
|
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Swift Class A Common Stock
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High
|
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Low
|
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High
|
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Low
|
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2014: | | | | | | ||||||||||||||||||||
First Calendar Quarter
|
| | | $ | 23.54 | | | | | $ | 17.95 | | | | | $ | 26.71 | | | | | $ | 19.89 | | |
Second Calendar Quarter
|
| | | $ | 25.00 | | | | | $ | 22.24 | | | | | $ | 26.54 | | | | | $ | 21.49 | | |
Third Calendar Quarter
|
| | | $ | 27.67 | | | | | $ | 23.19 | | | | | $ | 26.15 | | | | | $ | 18.53 | | |
Fourth Calendar Quarter
|
| | | $ | 34.69 | | | | | $ | 25.50 | | | | | $ | 29.44 | | | | | $ | 20.01 | | |
2015: | | | | | | ||||||||||||||||||||
First Calendar Quarter
|
| | | $ | 34.73 | | | | | $ | 28.43 | | | | | $ | 29.01 | | | | | $ | 24.39 | | |
Second Calendar Quarter
|
| | | $ | 33.00 | | | | | $ | 26.15 | | | | | $ | 26.58 | | | | | $ | 22.10 | | |
Third Calendar Quarter
|
| | | $ | 29.00 | | | | | $ | 23.64 | | | | | $ | 24.76 | | | | | $ | 14.83 | | |
Fourth Calendar Quarter
|
| | | $ | 27.66 | | | | | $ | 21.72 | | | | | $ | 17.63 | | | | | $ | 12.76 | | |
2016: | | | | | | ||||||||||||||||||||
First Calendar Quarter
|
| | | $ | 27.11 | | | | | $ | 20.56 | | | | | $ | 18.66 | | | | | $ | 11.74 | | |
Second Calendar Quarter
|
| | | $ | 28.34 | | | | | $ | 23.99 | | | | | $ | 19.12 | | | | | $ | 14.31 | | |
Third Calendar Quarter
|
| | | $ | 30.38 | | | | | $ | 26.39 | | | | | $ | 22.15 | | | | | $ | 15.19 | | |
Fourth Calendar Quarter
|
| | | $ | 38.80 | | | | | $ | 26.85 | | | | | $ | 27.18 | | | | | $ | 19.51 | | |
2017: | | | | | | ||||||||||||||||||||
First Calendar Quarter
|
| | | $ | 34.70 | | | | | $ | 30.10 | | | | | $ | 25.20 | | | | | $ | 19.21 | | |
Second Calendar Quarter
|
| | | $ | 37.63 | | | | | $ | 30.00 | | | | | $ | 26.91 | | | | | $ | 19.88 | | |
Third Calendar Quarter (through August 4, 2017)
|
| | | $ | 38.03 | | | | | $ | 33.18 | | | | | $ | 27.23 | | | | | $ | 23.73 | | |
| | |
Class A
Share of Swift |
| |
Knight
Share |
| |
Swift Share
Equivalent |
| |||||||||
April 7, 2017
|
| | | $ | 20.02 | | | | | $ | 30.65 | | | | | $ | 22.07 | | |
August 4, 2017
|
| | | $ | 26.04 | | | | | $ | 36.30 | | | | | $ | 26.14 | | |
| | |
Merger Exchange
Ratio Reference Range |
|
Perpetuity Growth Method
|
| |
0.475x – 1.728x
|
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EBITDA Multiple Method
|
| |
0.704x – 1.385x
|
|
Perpetuity Growth Method with Synergies
(1)
|
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0.298x – 1.012x
|
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Company
|
| |
Equity
Value (1) |
| |
2016 Adjusted
Operating Ratio (2) |
| |
Adjusted
Operating Ratio (Last 3 Years Average) (2) |
| |
EV/2017E
EBITDA |
| |
EV/2018E
EBITDA |
| |
Price/2017E
EPS |
| |
Price/2018E
EPS |
| | |||||||||||||||||||||||
Knight
|
| | | $ | 2,512 | | | | | | 85.3 % | | | | | | 83.4 % | | | | | | 9.1x | | | | | | 8.3x | | | | | | 26.0x | | | | | | 21.9x | | | | ||
Swift
|
| | | $ | 2,693 | | | | | | 92.9 % | | | | | | 90.6 % | | | | | | 6.6x | | | | | | 5.9x | | | | | | 17.6x (3) | | | | | | 13.2x (3) | | | | ||
“Larger” Selected Publicly
Traded Companies |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Werner Enterprises, Inc.
|
| | | $ | 1,839 | | | | | | 93.2 % | | | | | | 91.2 % | | | | | | 5.5x | | | | | | 5.1x | | | | | | 21.8x | | | | | | 17.9x | | | | ||
Heartland Express, Inc.
|
| | | $ | 1,635 | | | | | | 84.6 % | | | | | | 83.3 % | | | | | | 7.9x | | | | | | 7.3x | | | | | | 28.5x | | | | | | 24.4x | | | | ||
“Smaller” Selected Publicly
Traded Companies |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Marten Transport, Ltd
|
| | | $ | 760 | | | | | | 90.6 % | | | | | | 90.9 % | | | | | | 5.5x | | | | | | 5.0x | | | | | | 22.9x | | | | | | 19.3x | | | | ||
Covenant Transportation Group,
Inc. |
| | | $ | 328 | | | | | | 94.7 % | | | | | | 92.4 % | | | | | | 4.7x | | | | | | 4.3x | | | | | | 19.5x | | | | | | 14.7x | | | | ||
Celadon Group, Inc.
|
| | | $ | 144 | | | | | | 98.6 % (4) | | | | | | 94.8 % (4) | | | | | | 6.0x | | | | | | 5.0x | | | | | | NM (5 ) | | | | | | 10.0x | | | | ||
P.A.M. Transportation Services, Inc.
|
| | | $ | 96 | | | | | | 94.8 % | | | | | | 92.4 % | | | | | | 4.2x | | | | | | 3.5x | | | | | | 14.3x | | | | | | 10.7x | | | | ||
USA Truck, Inc.
|
| | | $ | 60 | | | | | | 100.4 % | | | | | | 97.0 % | | | | | | 5.8x | | | | | | 4.7x | | | | | | NM (6 ) | | | | | | 12.8x | | | | | |
| | |
2017E EBITDA
|
| |
2018E EBITDA
|
| |
2017E EPS
|
| |
2018E EPS
|
|
Knight
|
| |
7.25x – 9.25x
|
| |
6.5x – 8.5x
|
| |
22.0x – 29.0x
|
| |
18.5x – 25.0x
|
|
Swift
|
| |
5.5x – 7.0x
|
| |
5.0x – 6.5x
|
| |
17.0x – 22.0x
(1)
|
| |
13.0x – 18.0x
(1)
|
|
| | |
2017E EBITDA
|
| |
2018E EBITDA
|
| |
2017E EPS
|
| |
2018E EPS
|
|
Knight
|
| |
$23.18 – $29.55
|
| |
$24.60 – $32.10
|
| |
$23.91 – $31.52
|
| |
$26.58 – $35.92
|
|
Swift (pre-Reverse Stock Split)
|
| |
$14.29 – $20.28
|
| |
$14.83 – $21.57
|
| |
$18.02 – $23.33
(1)
|
| |
$17.90 – $24.78
(1)
|
|
Swift (post-Reverse Stock Split)
|
| |
$19.85 – $28.17
|
| |
$20.59 – $29.96
|
| |
$25.03 – $32.40
(1)
|
| |
$24.86 – $34.42
(1)
|
|
| | |
Merger Exchange
Ratio Reference Range |
|
2017E EBITDA
|
| |
0.823x – 1.488x
|
|
2018E EBITDA
|
| |
0.821x – 1.559x
|
|
2017E EPS
(1)
|
| |
0.738x – 1.259x
|
|
2018E EPS
(1)
|
| |
0.772x – 1.445x
|
|
| | |
2018E and
2019E EBITDA |
| |
2018E and
2019E EPS |
|
Knight
|
| |
$29.08 – $33.37
|
| |
$27.94 – $34.21
|
|
Swift (pre-Reverse Stock Split)
|
| |
$20.80 – $23.46
|
| |
$16.38 – $20.54
(1)
|
|
Swift (post-Reverse Stock Split)
|
| |
$28.89 – $32.58
|
| |
$22.76 – $28.53
(1)
|
|
| | |
Merger Exchange
Ratio Reference Range |
|
2018E and 2019E EBITDA
|
| |
0.892x – 1.155x
|
|
2018E and 2019E EPS
(1)
|
| |
0.979x – 1.504x
|
|
| | |
1-day
premium |
| |
1-week
premium |
| |
4-week
premium |
|
Median
|
| |
17.2%
|
| |
17.4%
|
| |
19.3%
|
|
Mean
|
| |
19.0%
|
| |
19.9%
|
| |
23.9%
|
|
| | |
Majority
Category (24 total) |
| |
Non-Majority
Category (8 total) |
|
Median
|
| |
9.2%
|
| |
3.5%
|
|
Mean
|
| |
7.9%
|
| |
4.3%
|
|
Range
|
| |
(9.3)% – 28.8%
|
| |
(5.3)% – 20.5%
|
|
| | |
Majority
Category (5 total) |
| |
Non-Majority
Category (2 total) |
|
Median
|
| |
14.5%
|
| |
12.6%
|
|
Mean
|
| |
14.1%
|
| |
12.6%
|
|
Range
|
| |
9.4% – 21.2%
|
| |
4.7% – 20.5%
|
|
| | |
Pre-Reverse
Stock Split (1) |
| |
Post-Reverse
Stock Split (2) |
|
Precedent Stock-for-Stock Transactions
|
| |
$24.02 – $26.03
|
| |
$33.37 – $36.15
|
|
Precedent Merger-of-Equals Transactions
|
| |
$20.02 – $23.02
|
| |
$27.81 – $31.98
|
|
| | |
Implied Equity Contribution
|
| |
Merger
Exchange Ratio |
| ||||||||||||
| | |
Knight
|
| |
Swift
|
| ||||||||||||
Adjusted EBITDA (1) | | | | | | | | | | | | | | | | | | | |
2016A
|
| | | | 40.0 % | | | | | | 60.0 % | | | | | | 0.786x | | |
2017E
|
| | | | 39.2 % | | | | | | 60.8 % | | | | | | 0.761x | | |
2018E
|
| | | | 40.5 % | | | | | | 59.5 % | | | | | | 0.804x | | |
Adjusted Net Income (2) | | | | | | | | | | | | | | | | | | | |
2016A
|
| | | | 36.5 % | | | | | | 63.5 % | | | | | | 0.681x | | |
2017E
|
| | | | 38.3 % | | | | | | 61.7 % | | | | | | 0.735x | | |
2018E
|
| | | | 38.6 % | | | | | | 61.4 % | | | | | | 0.744x | | |
Year
|
| |
Revenue
|
| |
EBITDA
|
| |
EBITA
|
| |
GAAP Net
Income |
| |
GAAP EPS
|
| |||||||||||||||
2017E
|
| | | $ | 1,215 | | | | | $ | 285 | | | | | $ | 170 | | | | | $ | 102 | | | | | $ | 1.28 | | |
2018E
|
| | | $ | 1,346 | | | | | $ | 325 | | | | | $ | 208 | | | | | $ | 126 | | | | | $ | 1.58 | | |
2019E
|
| | | $ | 1,449 | | | | | $ | 352 | | | | | $ | 231 | | | | | $ | 139 | | | | | $ | 1.77 | | |
Year
|
| |
Revenue
|
| |
EBITDA
|
| |
EBITA
|
| |
GAAP Net
Income |
| |
GAAP EPS
|
| |||||||||||||||
2017E
|
| | | $ | 1,182 | | | | | $ | 263 | | | | | $ | 147 | | | | | $ | 88 | | | | | $ | 1.09 | | |
2018E
|
| | | $ | 1,323 | | | | | $ | 311 | | | | | $ | 193 | | | | | $ | 116 | | | | | $ | 1.44 | | |
2019E
|
| | | $ | 1,447 | | | | | $ | 338 | | | | | $ | 216 | | | | | $ | 130 | | | | | $ | 1.63 | | |
2020E
|
| | | $ | 1,533 | | | | | $ | 362 | | | | | $ | 232 | | | | | $ | 140 | | | | | $ | 1.77 | | |
2021E
|
| | | $ | 1,620 | | | | | $ | 377 | | | | | $ | 242 | | | | | $ | 146 | | | | | $ | 1.87 | | |
Year
|
| |
Revenue
|
| |
EBITDA
|
| |
EBITA
|
| |
Adjusted Net
Income |
| |
Adjusted EPS
|
| |||||||||||||||
2017E
|
| | | $ | 4,149 | | | | | $ | 600 | | | | | $ | 299 | | | | | $ | 183 | | | | | $ | 1.36 | | |
2018E
|
| | | $ | 4,348 | | | | | $ | 667 | | | | | $ | 359 | | | | | $ | 226 | | | | | $ | 1.67 | | |
2019E
|
| | | $ | 4,414 | | | | | $ | 677 | | | | | $ | 370 | | | | | | N/A | | | | | | N/A | | |
Year
|
| |
Revenue
|
| |
EBITDA
|
| |
EBITA
|
| |
GAAP Net
Income |
| |
Adjusted Net
Income |
| |
GAAP EPS
|
| |
Adjusted EPS
|
| |||||||||||||||||||||
2017E
|
| | | $ | 4,091 | | | | | $ | 541 | | | | | $ | 248 | | | | | $ | 131 | | | | | $ | 142 | | | | | $ | 0.98 | | | | | $ | 1.06 | | |
2018E
|
| | | $ | 4,265 | | | | | $ | 609 | | | | | $ | 310 | | | | | $ | 173 | | | | | $ | 184 | | | | | $ | 1.30 | | | | | $ | 1.38 | | |
2019E
|
| | | $ | 4,329 | | | | | $ | 631 | | | | | $ | 328 | | | | | $ | 187 | | | | | $ | 198 | | | | | $ | 1.40 | | | | | $ | 1.48 | | |
2020E
|
| | | $ | 4,446 | | | | | $ | 646 | | | | | $ | 334 | | | | | $ | 193 | | | | | $ | 203 | | | | | $ | 1.44 | | | | | $ | 1.52 | | |
2021E
|
| | | $ | 4,567 | | | | | $ | 666 | | | | | $ | 346 | | | | | $ | 202 | | | | | $ | 212 | | | | | $ | 1.51 | | | | | $ | 1.59 | | |
Forecast Scenario
|
| |
Implied Value
Per Share Range for Swift |
|
Swift Street Consensus Case
|
| |
$10.76 – $17.48
|
|
Swift April standalone projections
|
| |
$10.86 – $18.64
|
|
Forecast Scenario
|
| |
Implied Value
Per Share Range for Knight |
| | ||
Knight Street Consensus Case
|
| |
$17.55 – $26.91
|
| | ||
Adjusted Knight April standalone projections
|
| |
$18.60 – $28.37
|
| | | |
Forecast Scenario
|
| |
Implied Range of
Exchange Ratios |
| | ||
Swift Street Consensus Case/Knight Street Consensus Case
|
| |
0.400x – 0.996x
|
| | ||
Swift April standalone projections/adjusted Knight April standalone projections
|
| |
0.383x – 1.002x
|
| | | |
Forecast Scenario
|
| |
Estimated Swift
2020 Earnings Per Share |
| |
Swift’s Historical
P/E Ratio Range |
| |
Implied Value
Per Share Range for Swift |
|
Swift Street Consensus Case
|
| |
$1.91
|
| |
10.0x – 17.8x
|
| |
$15.59 – $24.86
|
|
Swift April standalone projections
|
| |
$1.91
(1)
|
| |
10.0x – 17.8x
|
| |
$14.23 – $24.94
|
|
Forecast Scenario
|
| |
Estimated Knight
2020 Earnings Per Share |
| |
Knight’s Historical
P/E Ratio Range |
| |
Implied Value
Per Share Range for Knight |
|
Knight Street Consensus Case
|
| |
$1.77
|
| |
17.0x – 27.2x
|
| |
$25.70 – $38.54
|
|
Adjusted Knight April standalone projections
|
| |
$1.75
|
| |
17.0x – 27.2x
|
| |
$24.11 – $38.08
|
|
Forecast Scenario
|
| |
Implied Range of
Exchange Ratios |
| | ||
Swift Street Consensus Case/Knight Street Consensus Case
|
| |
0.405x – 0.967x
|
| | ||
Swift April standalone projections/adjusted Knight April standalone
projections |
| |
0.374x – 1.034x
|
| | | |
Company
|
| |
2017E
P/E |
| |
2018E
P/E |
| |
2017E
AV/EBITDA |
| |
2018E
AV/EBITDA |
| ||||||||||||
Swift
|
| | | | 17.4x | | | | | | 13.3x | | | | | | 6.8x | | | | | | 6.1x | | |
Knight
|
| | | | 26.0x | | | | | | 22.0x | | | | | | 9.1x | | | | | | 8.3x | | |
Heartland Express, Inc.
|
| | | | 28.4x | | | | | | 24.7x | | | | | | 8.0x | | | | | | 7.4x | | |
Werner Enterprises, Inc.
|
| | | | 21.8x | | | | | | 18.2x | | | | | | 5.6x | | | | | | 5.2x | | |
Benchmark
|
| |
Reference Range
|
| |
Implied Value
Per Share Range for Swift |
|
2017E P/E
|
| |
15.0x – 19.0x
|
| |
$17.25 – $21.85
|
|
2018E P/E
|
| |
12.0x – 16.0x
|
| |
$18.00 – $24.00
|
|
2017E AV/EBITDA
|
| |
6.5x – 8.0x
|
| |
$18.66 – $24.73
|
|
2018E AV/EBITDA
|
| |
5.5x – 7.0x
|
| |
$17.48 – $24.33
|
|
Benchmark
|
| |
Reference Range
|
| |
Implied Value
Per Share Range for Knight |
|
2017E P/E
|
| |
21.5x – 28.5x
|
| |
$25.38 – $33.64
|
|
2018E P/E
|
| |
18.0x – 25.0x
|
| |
$25.13 – $34.90
|
|
2017E AV/EBITDA
|
| |
8.0x – 9.5x
|
| |
$26.90 – $31.82
|
|
2018E AV/EBITDA
|
| |
7.0x – 8.5x
|
| |
$25.90 – $31.31
|
|
Benchmark
|
| |
Implied Range of
Exchange Ratios |
|
2017E P/E
|
| |
0.513x – 0.861x
|
|
2018E P/E
|
| |
0.516x – 0.955x
|
|
2017E AV/EBITDA
|
| |
0.586x – 0.919x
|
|
2018E AV/EBITDA
|
| |
0.558x – 0.939x
|
|
| | |
Implied Equity Contribution
|
| |
Implied
Exchange Ratio |
| ||||||||||||
| | |
Swift
|
| |
Knight
|
| ||||||||||||
2016A Revenue
|
| | | | 74 % | | | | | | 26 % | | | | | | 1.690x | | |
2016A EBITDA
|
| | | | 59 % | | | | | | 41 % | | | | | | 0.885x | | |
2016A Adjusted Net Income
|
| | | | 63 % | | | | | | 37 % | | | | | | 1.053x | | |
Trading Equity Value
|
| | | | 52 % | | | | | | 48 % | | | | | | 0.653x | | |
Trading Equity Value, including synergies
(1)
|
| | | | 46 % | | | | | | 43 % | | | | | | 0.653x | | |
Swift Street Consensus Case/Knight Street Consensus Case | | | | | | | | | | | | | | | | | | | |
2018E Revenue
|
| | | | 73 % | | | | | | 27 % | | | | | | 1.620x | | |
2018E EBITDA
|
| | | | 61 % | | | | | | 39 % | | | | | | 0.930x | | |
2018E Adjusted Net Income
|
| | | | 65 % | | | | | | 35 % | | | | | | 1.105x | | |
Discounted Cash Flows
|
| | | | 51 % | | | | | | 49 % | | | | | | 0.640x | | |
Discounted Cash Flows, including synergies
(2)
|
| | | | 43 % | | | | | | 41 % | | | | | | 0.640x | | |
Swift April standalone projections/adjusted Knight April standalone projections
|
| | | | | | | | | | | | | | | | | | |
2018E Revenue
|
| | | | 73 % | | | | | | 27 % | | | | | | 1.609x | | |
2018E EBITDA
|
| | | | 60 % | | | | | | 40 % | | | | | | 0.910x | | |
2018E Adjusted Net Income
(3)
|
| | | | 61 % | | | | | | 39 % | | | | | | 0.952x | | |
Discounted Cash Flows
|
| | | | 51 % | | | | | | 49 % | | | | | | 0.628x | | |
Discounted Cash Flows, including synergies
(4)
|
| | | | 43 % | | | | | | 42 % | | | | | | 0.628x | | |
| | |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| |||||||||||||||
Revenue
|
| | | $ | 4,347 | | | | | $ | 4,737 | | | | | $ | 5,066 | | | | | $ | 5,426 | | | | | $ | 5,776 | | |
EBITDA (1) | | | | $ | 592 | | | | | $ | 707 | | | | | $ | 797 | | | | | $ | 896 | | | | | $ | 973 | | |
GAAP EBIT
|
| | | $ | 288 | | | | | $ | 364 | | | | | $ | 412 | | | | | $ | 460 | | | | | $ | 503 | | |
Adjusted Net Income
(2)
|
| | | $ | 174 | | | | | $ | 222 | | | | | $ | 251 | | | | | $ | 282 | | | | | $ | 308 | | |
Adjusted EPS
(3)
|
| | | $ | 1.29 | | | | | $ | 1.63 | | | | | $ | 1.83 | | | | | $ | 2.05 | | | | | $ | 2.22 | | |
Capital Expenditures
|
| | | $ | 424 | | | | | $ | 359 | | | | | $ | 489 | | | | | $ | 390 | | | | | $ | 406 | | |
Capital Lease Payments
|
| | | $ | 69 | | | | | $ | 61 | | | | | $ | 97 | | | | | $ | 77 | | | | | $ | 152 | | |
Unlevered Free Cash Flow
(4)
|
| | | $ | (24 ) | | | | | $ | 124 | | | | | $ | 58 | | | | | $ | 244 | | | | | $ | 215 | | |
| | |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| |||||||||||||||
Revenue
|
| | | $ | 4,372 | | | | | $ | 4,887 | | | | | $ | 5,375 | | | | | $ | 5,776 | | | | | $ | 6,127 | | |
EBITDA (1) | | | | $ | 614 | | | | | $ | 744 | | | | | $ | 867 | | | | | $ | 973 | | | | | $ | 1,037 | | |
GAAP EBIT
|
| | | $ | 311 | | | | | $ | 397 | | | | | $ | 488 | | | | | $ | 558 | | | | | $ | 615 | | |
Adjusted Net Income
(2)
|
| | | $ | 189 | | | | | $ | 243 | | | | | $ | 300 | | | | | $ | 348 | | | | | $ | 387 | | |
Adjusted EPS
(3)
|
| | | $ | 1.40 | | | | | $ | 1.79 | | | | | $ | 2.20 | | | | | $ | 2.52 | | | | | $ | 2.79 | | |
Capital Expenditures
|
| | | $ | 428 | | | | | $ | 397 | | | | | $ | 476 | | | | | $ | 351 | | | | | $ | 390 | | |
Capital Lease Payments
|
| | | $ | 69 | | | | | $ | 61 | | | | | $ | 90 | | | | | $ | 60 | | | | | $ | 117 | | |
Unlevered Free Cash Flow
(4)
|
| | | $ | (15 ) | | | | | $ | 112 | | | | | $ | 114 | | | | | $ | 333 | | | | | $ | 275 | | |
| | |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| |||||||||||||||
Revenue
|
| | | $ | 4,191 | | | | | $ | 4,553 | | | | | $ | 4,892 | | | | | $ | 5,226 | | | | | $ | 5,543 | | |
EBITDA (1) | | | | $ | 532 | | | | | $ | 628 | | | | | $ | 709 | | | | | $ | 796 | | | | | $ | 850 | | |
GAAP EBIT
|
| | | $ | 239 | | | | | $ | 304 | | | | | $ | 360 | | | | | $ | 420 | | | | | $ | 462 | | |
Adjusted Net Income
(2)
|
| | | $ | 144 | | | | | $ | 181 | | | | | $ | 216 | | | | | $ | 256 | | | | | $ | 283 | | |
Adjusted EPS
(3)
|
| | | $ | 1.06 | | | | | $ | 1.34 | | | | | $ | 1.58 | | | | | $ | 1.86 | | | | | $ | 2.04 | | |
Capital Expenditures
|
| | | $ | 310 | | | | | $ | 391 | | | | | $ | 429 | | | | | $ | 345 | | | | | $ | 368 | | |
Capital Lease Payments
|
| | | $ | 75 | | | | | $ | 58 | | | | | $ | 87 | | | | | $ | 53 | | | | | $ | 108 | | |
Unlevered Free Cash Flow
(4)
|
| | | $ | 7 | | | | | $ | 42 | | | | | $ | 56 | | | | | $ | 227 | | | | | $ | 188 | | |
| | |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| |||||||||||||||
Revenue
|
| | | $ | 1,201 | | | | | $ | 1,335 | | | | | $ | 1,450 | | | | | $ | 1,544 | | | | | $ | 1,626 | | |
Adjusted EBITDA
(1)
|
| | | $ | 284 | | | | | $ | 320 | | | | | $ | 349 | | | | | $ | 376 | | | | | $ | 396 | | |
GAAP EBIT
|
| | | $ | 167 | | | | | $ | 200 | | | | | $ | 219 | | | | | $ | 236 | | | | | $ | 247 | | |
GAAP Net Income
|
| | | $ | 100 | | | | | $ | 120 | | | | | $ | 132 | | | | | $ | 142 | | | | | $ | 149 | | |
GAAP EPS
|
| | | $ | 1.24 | | | | | $ | 1.51 | | | | | $ | 1.67 | | | | | $ | 1.82 | | | | | $ | 1.92 | | |
Capital Expenditures
|
| | | $ | 115 | | | | | $ | 135 | | | | | $ | 145 | | | | | $ | 154 | | | | | $ | 163 | | |
Unlevered Free Cash Flow
(2)
|
| | | $ | 95 | | | | | $ | 94 | | | | | $ | 107 | | | | | $ | 119 | | | | | $ | 128 | | |
| | |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| |||||||||||||||
Revenue
|
| | | $ | 1,182 | | | | | $ | 1,323 | | | | | $ | 1,447 | | | | | $ | 1,532 | | | | | $ | 1,620 | | |
Adjusted EBITDA
(1)
|
| | | $ | 263 | | | | | $ | 311 | | | | | $ | 338 | | | | | $ | 362 | | | | | $ | 377 | | |
GAAP EBIT
|
| | | $ | 148 | | | | | $ | 193 | | | | | $ | 213 | | | | | $ | 229 | | | | | $ | 229 | | |
GAAP Net Income
|
| | | $ | 88 | | | | | $ | 116 | | | | | $ | 128 | | | | | $ | 138 | | | | | $ | 138 | | |
GAAP EPS
|
| | | $ | 1.08 | | | | | $ | 1.43 | | | | | $ | 1.60 | | | | | $ | 1.75 | | | | | $ | 1.77 | | |
Capital Expenditures
|
| | | $ | 100 | | | | | $ | 130 | | | | | $ | 145 | | | | | $ | 153 | | | | | $ | 162 | | |
Unlevered Free Cash Flow
(2)
|
| | | $ | 113 | | | | | $ | 105 | | | | | $ | 107 | | | | | $ | 117 | | | | | $ | 122 | | |
Name
|
| |
Equity
(1)
|
| |
Other
|
| |
Total
|
| |||||||||
David A. Jackson
|
| | | $ | 1,923,001 | | | | | | — | | | | | $ | 1,923,001 | | |
Adam W. Miller
|
| | | $ | 600,942 | | | | | | — | | | | | $ | 600,942 | | |
Kevin P. Knight
|
| | | $ | 4,685,621 | | | | | $ | 45,000 (2) | | | | | $ | 4,730,621 | | |
Kevin Quast
|
| | | $ | 534,461 | | | | | | — | | | | | $ | 534,461 | | |
James E. Updike, Jr.
|
| | | $ | 534,461 | | | | | | — | | | | | $ | 534,461 | | |
Name
|
| |
Swift Stock
Options (#) |
| |
Swift
Restricted Stock Awards (#) |
| |
Swift RSU
Awards (#) |
| |
Swift PSU
Awards (#) |
| |
Amount
($) |
| |||||||||||||||
Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Richard Stocking
|
| | | | 44,628 | | | | | | — | | | | | | 18,973 | | | | | | 34,289 | | | | | $ | 1,464,965 | | |
Virginia Henkels
|
| | | | 16,576 | | | | | | — | | | | | | 7,047 | | | | | | 12,736 | | | | | $ | 544,134 | | |
Mickey R. Dragash
|
| | | | 6,837 | | | | | | — | | | | | | 9,326 | | | | | | 4,787 | | | | | $ | 379,791 | | |
Kenneth C. Runnels
|
| | | | 9,136 | | | | | | — | | | | | | 3,876 | | | | | | 7,029 | | | | | $ | 299,553 | | |
Steven Van Kirk
|
| | | | 6,919 | | | | | | — | | | | | | 2,841 | | | | | | 5,440 | | | | | $ | 223,062 | | |
Other Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Timothy Guin
|
| | | | 3,799 | | | | | | — | | | | | | 2,348 | | | | | | 2,660 | | | | | $ | 145,302 | | |
Chad E. Killebrew
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Cary Flanagan
|
| | | | — | | | | | | — | | | | | | 3,573 | | | | | | — | | | | | $ | 82,850 | | |
Directors (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Richard H. Dozer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Glenn F. Brown
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
José A. Cárdenas
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerry Moyes
|
| | | | 33,836 | | | | | | — | | | | | | — | | | | | | 78,912 | | | | | $ | 1,829,969 | | |
William F. Riley, III
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David N. Vander Ploeg
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Cash
Severance ($) (1) |
| |
Equity
($) (2) |
| |
Retention
Bonus ($) (4) |
| |
Perquisites/
Benefits ($) (3) |
| |
Total
($) (5) |
| |||||||||||||||
Richard Stocking
|
| | | $ | 2,600,000 | | | | | $ | 1,591,256 | | | | | $ | 35,000 | | | | | $ | 267,253 | | | | | $ | 4,493,509 | | |
Virginia Henkels
|
| | | $ | 1,050,000 | | | | | $ | 555,430 | | | | | $ | 35,000 | | | | | $ | 68,117 | | | | | $ | 1,708,547 | | |
Mickey R. Dragash
|
| | | $ | 780,000 | | | | | $ | 407,325 | | | | | $ | 5,500 | | | | | $ | 51,650 | | | | | $ | 1,244,475 | | |
Kenneth C. Runnels
|
| | | | — | | | | | $ | 299,553 | | | | | | — | | | | | | — | | | | | $ | 299,553 | | |
Steven Van Kirk
|
| | | | — | | | | | $ | 223,062 | | | | | | — | | | | | | — | | | | | $ | 223,062 | | |
Name
|
| |
Base Salary
Severance ($) |
| |
Annual Cash
Bonus Severance ($) |
| |
Pro Rata
Bonus ($) |
| |
Total
($) |
| ||||||||||||
Richard Stocking
|
| | | $ | 1,300,000 | | | | | $ | 1,300,000 | | | | | | — | | | | | $ | 2,600,000 | | |
Virginia Henkels
|
| | | $ | 600,000 | | | | | $ | 450,000 | | | | | | — | | | | | $ | 1,050,000 | | |
Mickey R. Dragash
|
| | | $ | 487,500 | | | | | $ | 292,500 | | | | | | — | | | | | $ | 780,000 | | |
Name
|
| |
Swift Stock
Options ($) |
| |
Swift
Restricted Stock Awards ($) |
| |
Swift RSU
Awards ($) |
| |
Swift PSU
Awards ($) |
| |
Total
($) |
| |||||||||||||||
Richard Stocking
|
| | | $ | 229,827 | | | | | $ | — | | | | | $ | 566,267 | | | | | $ | 795,162 | | | | | $ | 1,591,256 | | |
Virginia Henkels
|
| | | $ | 85,366 | | | | | $ | — | | | | | $ | 174,716 | | | | | $ | 295,348 | | | | | $ | 555,430 | | |
Mickey R. Dragash
|
| | | $ | 52,511 | | | | | $ | — | | | | | $ | 243,804 | | | | | $ | 111,010 | | | | | $ | 407,325 | | |
Kenneth C. Runnels
|
| | | $ | 46,674 | | | | | $ | — | | | | | $ | 89,877 | | | | | $ | 163,002 | | | | | $ | 299,553 | | |
Steven Van Kirk
|
| | | $ | 31,037 | | | | | $ | — | | | | | $ | 65,871 | | | | | $ | 126,154 | | | | | $ | 223,062 | | |
Name
|
| |
PTO/Sick
Pay ($) |
| |
Health &
Welfare Benefits ($) |
| |
Total
($) |
| |||||||||
Richard Stocking
|
| | | $ | 250,000 | | | | | $ | 17,253 | | | | | $ | 267,253 | | |
Virginia Henkels
|
| | | $ | 57,950 | | | | | $ | 10,167 | | | | | $ | 68,117 | | |
Mickey R. Dragash
|
| | | $ | 45,001 | | | | | $ | 6,649 | | | | | $ | 51,650 | | |
Name
|
| |
Retention
Bonus ($) |
| |||
Richard Stocking
|
| | | $ | 35,000 | | |
Virginia Henkels
|
| | | $ | 35,000 | | |
Mickey R. Dragash
|
| | | $ | 5,500 | | |
(In thousands)
|
| |
Knight
Transportation, Inc. |
| |
Swift
Transportation Company |
| |
Acquisition
Adjustments |
| |
Note
Reference |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
Assets: | | | | | | | |||||||||||||||||||||||||
Current assets: | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 88,706 | | | | | $ | 42,884 | | | | | $ | (31,431 ) | | | | | | 4a | | | | | $ | 100,159 | | |
Cash and cash equivalents – restricted
|
| | | | — | | | | | | 58,994 | | | | | | — | | | | | | | | | | | | 58,994 | | |
Restricted investments, held to maturity, amortized cost
|
| | | | — | | | | | | 22,025 | | | | | | — | | | | | | | | | | | | 22,025 | | |
Trade receivables, net
|
| | | | 126,988 | | | | | | 401,261 | | | | | | — | | | | | | | | | | | | 528,249 | | |
Equipment sales receivable
|
| | | | 264 | | | | | | 444 | | | | | | — | | | | | | | | | | | | 708 | | |
Notes receivable, net
|
| | | | 646 | | | | | | 5,805 | | | | | | — | | | | | | | | | | | | 6,451 | | |
Prepaid expenses
|
| | | | 11,703 | | | | | | 45,796 | | | | | | — | | | | | | | | | | | | 57,499 | | |
Assets held for sale
|
| | | | 13,845 | | | | | | 1,652 | | | | | | — | | | | | | | | | | | | 15,497 | | |
Other current assets
|
| | | | 8,208 | | | | | | 16,699 | | | | | | — | | | | | | | | | | | | 24,907 | | |
Income tax receivable
|
| | | | 11,280 | | | | | | 2,766 | | | | | | 15,802 | | | | | | 4b | | | | | | 29,848 | | |
Total current assets
|
| | | | 261,640 | | | | | | 598,326 | | | | | | (15,629 ) | | | | | | | | | | | | 844,337 | | |
Property and equipment, net
|
| | | | 759,896 | | | | | | 1,458,572 | | | | | | 81,385 | | | | | | 4c | | | | | | 2,299,853 | | |
Notes receivable, long-term
|
| | | | 2,618 | | | | | | 10,336 | | | | | | — | | | | | | | | | | | | 12,954 | | |
Goodwill
|
| | | | 47,021 | | | | | | 253,256 | | | | | | 2,172,768 | | | | | | 4d | | | | | | 2,473,045 | | |
Intangible assets, net
|
| | | | 2,325 | | | | | | 257,898 | | | | | | 762,102 | | | | | | 4e | | | | | | 1,022,325 | | |
Other long-term assets and restricted cash and investments
|
| | | | 25,908 | | | | | | 12,300 | | | | | | — | | | | | | | | | | | | 38,208 | | |
Total assets
|
| | | $ | 1,099,408 | | | | | $ | 2,590,688 | | | | | $ | 3,000,626 | | | | | | | | | | | $ | 6,690,722 | | |
Liabilities and Stockholders’ Equity: | | | | | | | |||||||||||||||||||||||||
Current liabilities: | | | | | | | |||||||||||||||||||||||||
Accounts payable
|
| | | $ | 12,775 | | | | | $ | 113,205 | | | | | $ | — | | | | | | | | | | | $ | 125,980 | | |
Accrued payroll and purchased transportation
|
| | | | 27,008 | | | | | | 74,922 | | | | | | — | | | | | | | | | | | | 101,930 | | |
Accrued liabilities
|
| | | | 21,429 | | | | | | 88,009 | | | | | | — | | | | | | | | | | | | 109,438 | | |
Claims accrual – current portion
|
| | | | 19,905 | | | | | | 87,275 | | | | | | — | | | | | | | | | | | | 107,180 | | |
Current portion of long-term debt
|
| | | | — | | | | | | 3,419 | | | | | | — | | | | | | | | | | | | 3,419 | | |
Current portion of capital lease
obligations |
| | | | — | | | | | | 45,194 | | | | | | — | | | | | | | | | | | | 45,194 | | |
Dividend payable – current portion
|
| | | | 287 | | | | | | — | | | | | | — | | | | | | | | | | | | 287 | | |
Total current liabilities
|
| | | | 81,404 | | | | | | 412,024 | | | | | | — | | | | | | | | | | | | 493,428 | | |
Revolving line of credit
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Long-term debt
|
| | | | — | | | | | | 449,268 | | | | | | — | | | | | | | | | | | | 449,268 | | |
Capital lease obligations, less current portion
|
| | | | — | | | | | | 143,648 | | | | | | — | | | | | | | | | | | | 143,648 | | |
Accounts receivable securitization
|
| | | | — | | | | | | 294,464 | | | | | | — | | | | | | | | | | | | 294,464 | | |
Claims accrual – long-term portion
|
| | | | 14,167 | | | | | | 173,269 | | | | | | — | | | | | | | | | | | | 187,436 | | |
Long-term dividend payable and other liabilities
|
| | | | 1,781 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,781 | | |
Deferred tax liabilities
|
| | | | 183,518 | | | | | | 398,083 | | | | | | 317,960 | | | | | | 4f | | | | | | 899,561 | | |
Other liabilities
|
| | | | — | | | | | | 4,792 | | | | | | — | | | | | | | | | | | | 4,792 | | |
Total liabilities
|
| | | | 280,870 | | | | | | 1,875,548 | | | | | | 317,960 | | | | | | | | | | | | 2,474,378 | | |
Stockholders’ equity: | | | | | | | |||||||||||||||||||||||||
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Common stock
|
| | | | 806 | | | | | | 1,339 | | | | | | (369 ) | | | | | | 4g | | | | | | 1,776 | | |
Additional paid-in capital
|
| | | | 231,551 | | | | | | 695,276 | | | | | | 2,730,931 | | | | | | 4g | | | | | | 3,657,758 | | |
Accumulated other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Retained earnings
|
| | | | 583,988 | | | | | | 18,423 | | | | | | (47,896 ) | | | | | | 4h | | | | | | 554,515 | | |
Total company stockholders’ equity
|
| | | | 816,345 | | | | | | 715,038 | | | | | | 2,682,666 | | | | | | | | | | | | 4,214,049 | | |
Noncontrolling interest
|
| | | | 2,193 | | | | | | 102 | | | | | | — | | | | | | | | | | | | 2,295 | | |
Total stockholders’ equity
|
| | | | 818,538 | | | | | | 715,140 | | | | | | 2,682,666 | | | | | | | | | | | | 4,216,344 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,099,408 | | | | | $ | 2,590,688 | | | | | $ | 3,000,626 | | | | | | | | | | | $ | 6,690,722 | | |
|
(In thousands, except per share data)
|
| |
Knight
Transportation, Inc. |
| |
Swift
Transportation Company |
| |
Acquisition
Adjustments |
| |
Note
Reference |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
Revenue, before fuel surcharge
|
| | | $ | 492,002 | | | | | $ | 1,770,035 | | | | | $ | — | | | | | | | | | | | $ | 2,262,037 | | |
Fuel surcharge
|
| | | | 52,423 | | | | | | 186,854 | | | | | | — | | | | | | | | | | | | 239,277 | | |
Total revenue
|
| | | | 544,425 | | | | | | 1,956,889 | | | | | | — | | | | | | | | | | | | 2,501,314 | | |
Operating expenses: | | | | | | | |||||||||||||||||||||||||
Salaries, wages and benefits
|
| | | | 162,454 | | | | | | 565,661 | | | | | | — | | | | | | | | | | | | 728,115 | | |
Fuel
|
| | | | 68,952 | | | | | | 189,446 | | | | | | — | | | | | | | | | | | | 258,398 | | |
Operations and maintenance
|
| | | | 41,249 | | | | | | 147,406 | | | | | | — | | | | | | | | | | | | 188,655 | | |
Insurance and claims
|
| | | | 16,865 | | | | | | 102,246 | | | | | | — | | | | | | | | | | | | 119,111 | | |
Operating taxes and licenses
|
| | | | 9,046 | | | | | | 35,904 | | | | | | — | | | | | | | | | | | | 44,950 | | |
Communications
|
| | | | 2,204 | | | | | | 9,846 | | | | | | — | | | | | | | | | | | | 12,050 | | |
Depreciation expense
|
| | | | 58,803 | | | | | | 130,122 | | | | | | 552 | | | | | | 5a | | | | | | 189,477 | | |
Amortization of intangibles
|
| | | | 250 | | | | | | 8,407 | | | | | | 15,593 | | | | | | 5b | | | | | | 24,250 | | |
Rental expense
|
| | | | 2,551 | | | | | | 113,079 | | | | | | — | | | | | | | | | | | | 115,630 | | |
Purchased transportation
|
| | | | 116,924 | | | | | | 540,118 | | | | | | — | | | | | | | | | | | | 657,042 | | |
Impairment
|
| | | | — | | | | | | 187 | | | | | | — | | | | | | | | | | | | 187 | | |
Miscellaneous operating expenses
|
| | | | 9,901 | | | | | | 43,834 | | | | | | — | | | | | | | | | | | | 53,735 | | |
Merger-related costs
|
| | | | 4,178 | | | | | | 10,201 | | | | | | (14,379 ) | | | | | | 5c | | | | | | — | | |
Total operating expenses
|
| | | | 493,377 | | | | | | 1,896,457 | | | | | | 1,766 | | | | | | | | | | | | 2,391,600 | | |
Income from operations
|
| | | | 51,048 | | | | | | 60,432 | | | | | | (1,766 ) | | | | | | | | | | | | 109,714 | | |
Interest income
|
| | | | 189 | | | | | | 1,069 | | | | | | — | | | | | | | | | | | | 1,258 | | |
Interest expense
|
| | | | (136 ) | | | | | | (14,383 ) | | | | | | — | | | | | | | | | | | | (14,519 ) | | |
Other income
|
| | | | 1,322 | | | | | | 2,378 | | | | | | — | | | | | | | | | | | | 3,700 | | |
Other income (expense)
|
| | | | 1,375 | | | | | | (10,936 ) | | | | | | — | | | | | | | | | | | | (9,561 ) | | |
Income before income tax
|
| | | | 52,423 | | | | | | 49,496 | | | | | | (1,766 ) | | | | | | | | | | | | 100,153 | | |
Income taxes
|
| | | | 19,058 | | | | | | 17,992 | | | | | | (2,186 ) | | | | | | 5d | | | | | | 34,864 | | |
Net income
|
| | | | 33,365 | | | | | | 31,504 | | | | | | 420 | | | | | | | | | | | | 65,289 | | |
Net income attributable to noncontrolling interest
|
| | | | (518 ) | | | | | | — | | | | | | — | | | | | | | | | | | | (518 ) | | |
Net income attributable to the applicable company
|
| | | $ | 32,847 | | | | | $ | 31,504 | | | | | $ | 420 | | | | | | | | | | | $ | 64,771 | | |
Net income per share: | | | | | | | |||||||||||||||||||||||||
Basic
|
| | | $ | 0.41 | | | | | $ | 0.24 | | | | | | | | | | | | | | | | | $ | 0.37 | | |
Diluted
|
| | | $ | 0.40 | | | | | $ | 0.23 | | | | | | | | | | | | | | | | | $ | 0.36 | | |
Weighted average shares outstanding: | | | | | | | |||||||||||||||||||||||||
Basic
|
| | | | 80,416 | | | | | | 133,347 | | | | | | (36,355 ) | | | | | | 5e | | | | | | 177,408 | | |
Diluted
|
| | | | 81,276 | | | | | | 134,365 | | | | | | (37,563 ) | | | | | | 5e | | | | | | 178,078 | | |
(In thousands, except per share data)
|
| |
Knight
Transportation, Inc. |
| |
Swift
Transportation Company |
| |
Acquisition
Adjustments |
| |
Note
Reference |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
Revenue, before fuel surcharge
|
| | | $ | 1,028,148 | | | | | $ | 3,722,863 | | | | | $ | — | | | | | | | | | | | $ | 4,751,011 | | |
Fuel surcharge
|
| | | | 89,886 | | | | | | 308,654 | | | | | | — | | | | | | | | | | | | 398,540 | | |
Total revenue
|
| | | | 1,118,034 | | | | | | 4,031,517 | | | | | | — | | | | | | | | | | | | 5,149,551 | | |
Operating expenses: | | | | | | | |||||||||||||||||||||||||
Salaries, wages and benefits
|
| | | | 333,929 | | | | | | 1,148,610 | | | | | | — | | | | | | | | | | | | 1,482,539 | | |
Fuel
|
| | | | 129,696 | | | | | | 345,281 | | | | | | — | | | | | | | | | | | | 474,977 | | |
Operations and maintenance
|
| | | | 76,246 | | | | | | 298,604 | | | | | | — | | | | | | | | | | | | 374,850 | | |
Insurance and claims
|
| | | | 34,441 | | | | | | 192,733 | | | | | | — | | | | | | | | | | | | 227,174 | | |
Operating taxes and licenses
|
| | | | 18,728 | | | | | | 74,753 | | | | | | — | | | | | | | | | | | | 93,481 | | |
Communications
|
| | | | 4,182 | | | | | | 16,804 | | | | | | — | | | | | | | | | | | | 20,986 | | |
Depreciation expense
|
| | | | 115,660 | | | | | | 267,134 | | | | | | 1,104 | | | | | | 6a | | | | | | 383,898 | | |
Amortization of intangibles
|
| | | | 500 | | | | | | 16,814 | | | | | | 31,186 | | | | | | 6b | | | | | | 48,500 | | |
Rental expense
|
| | | | 5,035 | | | | | | 226,258 | | | | | | — | | | | | | | | | | | | 231,293 | | |
Purchased transportation
|
| | | | 233,863 | | | | | | 1,116,709 | | | | | | — | | | | | | | | | | | | 1,350,572 | | |
Impairment
|
| | | | — | | | | | | 807 | | | | | | — | | | | | | | | | | | | 807 | | |
Miscellaneous operating expenses
|
| | | | 17,275 | | | | | | 84,998 | | | | | | (160 ) | | | | | | 6c | | | | | | 102,113 | | |
Total operating expenses
|
| | | | 969,555 | | | | | | 3,789,505 | | | | | | 32,130 | | | | | | | | | | | | 4,791,190 | | |
Income from operations
|
| | | | 148,479 | | | | | | 242,012 | | | | | | (32,130 ) | | | | | | | | | | | | 358,361 | | |
Interest income
|
| | | | 309 | | | | | | 2,634 | | | | | | — | | | | | | | | | | | | 2,943 | | |
Interest expense
|
| | | | (897 ) | | | | | | (30,598 ) | | | | | | — | | | | | | | | | | | | (31,495 ) | | |
Other income
|
| | | | 4,939 | | | | | | 921 | | | | | | — | | | | | | | | | | | | 5,860 | | |
Other income (expense)
|
| | | | 4,351 | | | | | | (27,043 ) | | | | | | — | | | | | | | | | | | | (22,692 ) | | |
Income before income tax
|
| | | | 152,830 | | | | | | 214,969 | | | | | | (32,130 ) | | | | | | | | | | | | 335,669 | | |
Income taxes
|
| | | | 57,592 | | | | | | 65,702 | | | | | | (12,209 ) | | | | | | 6d | | | | | | 111,085 | | |
Net income
|
| | | | 95,238 | | | | | | 149,267 | | | | | | (19,921 ) | | | | | | | | | | | | 224,584 | | |
Net income attributable to noncontrolling interest
|
| | | | (1,375 ) | | | | | | — | | | | | | — | | | | | | | | | | | | (1,375 ) | | |
Net income attributable to the applicable company
|
| | | $ | 93,863 | | | | | $ | 149,267 | | | | | $ | (19,921 ) | | | | | | | | | | | $ | 223,209 | | |
Net income per share: | | | | | | | |||||||||||||||||||||||||
Basic
|
| | | $ | 1.17 | | | | | $ | 1.11 | | | | | | | | | | | | | | | | | $ | 1.26 | | |
Diluted
|
| | | $ | 1.16 | | | | | $ | 1.10 | | | | | | | | | | | | | | | | | $ | 1.25 | | |
Weighted average shares outstanding: | | | | | | | |||||||||||||||||||||||||
Basic
|
| | | | 80,362 | | | | | | 134,139 | | | | | | (37,147 ) | | | | | | 6e | | | | | | 177,354 | | |
Diluted
|
| | | | 81,228 | | | | | | 135,494 | | | | | | (38,692 ) | | | | | | 6e | | | | | | 178,030 | | |
(In thousands)
|
| |
Amount
|
| |
Note
|
| ||||||
Knight Reclassifications | | | | ||||||||||
Income Statement for the six months ended June 30, 2017
|
| | | ||||||||||
Reclass depreciation expense to amortization of intangibles
|
| | | $ | 250 | | | | |||||
Reclass miscellaneous operating expenses to rent expense
|
| | | | 2,551 | | | | |||||
Income Statement for the year ended December 31, 2016
|
| | | ||||||||||
Reclass depreciation expense to amortization of intangibles
|
| | | | 500 | | | | |||||
Reclass miscellaneous operating expenses to rent expense
|
| | | | 5,035 | | | | |||||
Balance Sheet as of June 30, 2017
|
| | | ||||||||||
Reclass trade receivables, net to equipment sales receivables
|
| | | | 264 | | | | |||||
Swift Reclassifications | | | | ||||||||||
Income Statement for the six months ended June 30, 2017
|
| | | ||||||||||
Reclass general and administrative expense to miscellaneous operating expenses
|
| | | | 44,665 | | | | | | (1 ) | | |
Reclass utilities expense to miscellaneous operating expenses
|
| | | | 6,802 | | | | | | (1 ) | | |
Reclass (gain) on disposal of PP&E to miscellaneous operating expenses
|
| | | | (7,633 ) | | | | |||||
Reclass M&A transaction costs from salaries, wages and employee benefits, purchase
transportation, and other income to merger-related costs |
| | | | 10,201 | | | | |||||
Income Statement for the year ended December 31, 2016
|
| | | ||||||||||
Reclass general and administrative expense to miscellaneous operating expenses
|
| | | | 91,364 | | | | | | (1 ) | | |
Reclass utilities expense to miscellaneous operating expenses
|
| | | | 11,919 | | | | | | (1 ) | | |
Reclass (gain) on disposal of PP&E to miscellaneous operating expenses
|
| | | | (18,285 ) | | | | |||||
Reclass settlements to other income
|
| | | | (3,000 ) | | | | |||||
Balance Sheet as of June 30, 2017
|
| | | ||||||||||
Reclass other assets to notes receivable, long-term
|
| | | | 10,336 | | | | |||||
Reclass accounts payable to accrued payroll and purchased transportation
|
| | | | 20,526 | | | | |||||
Reclass accrued liabilities to accrued payroll and purchased transportation
|
| | | | 54,396 | | | | | | | | |
(USD in thousands)
|
| | | | | | | |
Note
|
| |||
Consideration transferred: | | | | ||||||||||
Swift Converted Stock (0.720 Conversion Ratio)
|
| | | $ | 3,426,784 | | | | | | (1 ) | | |
Total consideration transferred
|
| | | | 3,426,784 | | | | |||||
Rollover equity from NCI
|
| | | | 102 | | | | | | (2 ) | | |
Total value to allocate
|
| | | $ | 3,426,886 | | | | |||||
Preliminary purchase price allocation: | | | | ||||||||||
Current assets: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 42,884 | | | | |||||
Cash and cash equivalents – restricted
|
| | | | 58,994 | | | | |||||
Restricted investments, held to maturity, amortized cost
|
| | | | 22,025 | | | | |||||
Trade receivables, net
|
| | | | 401,261 | | | | |||||
Equipment sales receivable
|
| | | | 444 | | | | |||||
Notes receivable, net
|
| | | | 5,805 | | | | |||||
Prepaid expenses
|
| | | | 45,796 | | | | |||||
Assets held for sale
|
| | | | 1,652 | | | | |||||
Other current assets
|
| | | | 16,699 | | | | |||||
Income tax receivable
|
| | | | 13,525 | | | | |||||
Total current assets
|
| | | | 609,085 | | | | |||||
Property and equipment, net
|
| | | | 1,539,957 | | | | | | (3 ) | | |
Notes receivable, long-term
|
| | | | 10,336 | | | | |||||
Goodwill
|
| | | | 2,426,024 | | | | | | (4 ) | | |
Intangible assets, net
|
| | | | 1,020,000 | | | | | | (5 ) | | |
Other long-term assets and restricted cash and investments
|
| | | | 12,300 | | | | |||||
Total assets
|
| | | $ | 5,617,702 | | | | |||||
Liabilities: | | | | ||||||||||
Current liabilities: | | | | ||||||||||
Accounts payable
|
| | | $ | 113,205 | | | | |||||
Accrued payroll and purchased transportation
|
| | | | 74,922 | | | | |||||
Accrued liabilities
|
| | | | 88,009 | | | | |||||
Claims accrual – current portion
|
| | | | 87,275 | | | | |||||
Current portion of long-term debt
|
| | | | 3,419 | | | | |||||
Current portion of capital lease obligations
|
| | | | 45,194 | | | | |||||
Dividend payable – current portion
|
| | | | — | | | | | | | | |
Total current liabilities
|
| | | | 412,024 | | | | |||||
Revolving line of credit
|
| | | | — | | | | |||||
Long-term debt
|
| | | | 449,268 | | | | |||||
Capital lease obligations, less current portion
|
| | | | 143,648 | | | | |||||
Accounts receivable securitization
|
| | | | 294,464 | | | | |||||
Claims accrual – long-term portion
|
| | | | 173,269 | | | | |||||
Long-term dividend payable and other liabilities
|
| | | | — | | | | |||||
Deferred tax liabilities
|
| | | | 713,350 | | | | |||||
Other liabilities
|
| | | | 4,792 | | | | | | | | |
Total liabilities
|
| | | | 2,190,815 | | | | |||||
Total net assets
|
| | | $ | 3,426,887 | | | | |||||
Stockholders’ equity: | | | | ||||||||||
Preferred stock
|
| | | $ | — | | | | |||||
Common stock
|
| | | | 968 | | | | |||||
Additional paid-in capital
|
| | | | 3,425,816 | | | | |||||
Accumulated other comprehensive income
|
| | | | — | | | | | | | | |
Retained earnings
|
| | | | — | | | | |||||
Noncontrolling interest
|
| | | | 102 | | | | |||||
Total stockholders’ equity
|
| | | | 3,426,886 | | | | |||||
Total liabilities and stockholders’ equity
|
| | | $ | 5,617,702 | | | | |||||
|
(In thousands)
|
| |
Estimated Life
(years) |
| |
Estimated
Fair Value |
| ||||||
Customer relationships
|
| |
15
|
| | | $ | 720,000 | | | |||
Tradename
|
| | | | indefinite | | | | | | 300,000 | | |
Total identifiable intangible assets
|
| | | | | | | | | $ | 1,020,000 | | |
|
(In thousands)
|
| |
June 30,
2017 |
| |||
Eliminate historical Swift goodwill
|
| | | $ | (253,256 ) | | |
Goodwill from preliminary purchase allocation
|
| | | | 2,426,024 | | |
Total goodwill adjustment
|
| | | $ | 2,172,768 | | |
|
(In thousands)
|
| |
June 30,
2017 |
| |||
Eliminate historical Swift intangible assets
|
| | | $ | (257,898 ) | | |
Intangible assets from preliminary purchase allocation
|
| | | | 1,020,000 | | |
Total intangible assets adjustment
|
| | | $ | 762,102 | | |
|
(In thousands)
|
| |
June 30,
2017 |
| |||
Eliminate historical Swift common stock, par $0.01
|
| | | $ | (1,339 ) | | |
Issuance of new combined company shares
|
| | | | 968 | | |
Vesting of Knight PSU’s due to change in control
|
| | | | 2 | | |
Total common stock adjustment
|
| | | $ | (369 ) | | |
Eliminate historical Swift additional paid-in capital
|
| | | $ | (695,276 ) | | |
Issuance of new combined company shares
|
| | | | 3,425,816 | | |
Vesting of Knight PSU’s due to change in control
|
| | | | 391 | | |
Total additional paid-in capital adjustment
|
| | | $ | 2,730,931 | | |
|
(In thousands)
|
| |
June 30,
2017 |
| |||
Eliminate historical Swift retained earnings
|
| | | $ | (18,423 ) | | |
Adjustment for transaction costs
|
| | | | (31,431 ) | | |
Adjustment for Knight PSU’s vested due to change in control
|
| | | | (393 ) | | |
Adjustment for deferred tax liabilities
|
| | | | 2,350 | | |
Total retained earnings adjustment
|
| | | $ | (47,896 ) | | |
|
(In thousands)
|
| |
Six Months
Ended June 30, 2017 |
| |||
Eliminated historical intangible amortization expense
|
| | | $ | (8,407 ) | | |
Pro forma amortization expense
|
| | | | 24,000 | | |
Amortization expense adjustment
|
| | | $ | 15,593 | | |
|
(In thousands)
|
| |
Year Ended
December 31, 2016 |
| |||
Eliminated historical intangible amortization expense
|
| | | $ | (16,814 ) | | |
Pro forma amortization expense
|
| | | | 48,000 | | |
Amortization expense adjustment
|
| | | $ | 31,186 | | |
|
Knight SEC Filings (File No. 001-32396)
|
| |
Period
|
|
Annual Report on Form 10-K | | | Fiscal year ended December 31, 2016 | |
Proxy Statement on Schedule 14A | | | Filed on March 31, 2017 | |
Quarterly Reports on Form 10-Q | | | Fiscal quarter ended June 30, 2017 and March 31, 2017 | |
Current Reports on Form 8-K | | | Filed on August 7, 2017, June 6, 2017, May 16, 2017, May 12, 2017, April 13, 2017, April 10, 2017 (second filing), and February 2, 2017 | |
Any description of Knight shares contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description | | | | |
Swift SEC Filings (File No. 001-35007)
|
| |
Period
|
|
Annual Report on Form 10-K | | | Fiscal year ended December 31, 2016 | |
Proxy Statement on Schedule 14A | | | Filed on April 14, 2017 | |
Quarterly Reports on Form 10-Q | | | Fiscal quarters ended June 30, 2017 and March 31, 2017 | |
Current Report on Form 8-K | | | Filed on May 31, 2017, May 24, 2017, April 13, 2017, April 10, 2017, March 10, 2017 and March 8, 2017 | |
Any description of Swift shares contained in a registration statement filed pursuant to the Exchange Act and any amendment or report filed for the purpose of updating such description | | | | |
| | |
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Definition
|
| |
Location
|
|
ABCA | | |
1.8(a)
|
|
Acquisition Agreement | | |
5.2(c)
|
|
Acquisition Proposal | | |
5.2(h)(i)
|
|
Action | | |
3.10
|
|
Adverse Recommendation Change | | |
5.2(c)
|
|
AERA | | |
1.2
|
|
Affiliate | | |
8.3(a)
|
|
Agreement | | |
Preamble
|
|
Amended Bishop Charter | | |
1.1(a)
|
|
Antitrust Laws | | |
3.5(b)
|
|
Bishop | | |
Preamble
|
|
Bishop Bylaws | | |
4.1(b)
|
|
Bishop Charter | | |
4.1(b)
|
|
Bishop Class B Common Stock | | |
Recitals
|
|
Bishop Common Stock | | |
Recitals
|
|
Bishop D&O Indemnified Parties | | |
5.11(b)
|
|
Bishop D&O Insurance | | |
5.11(d)
|
|
Bishop Disclosure Letter | | |
Article IV
|
|
Bishop Equity Awards | | |
2.4(f)
|
|
Bishop ESPP | | |
2.4(e)
|
|
Bishop ESPP Shares | | |
2.4(e)
|
|
Bishop Expense Reimbursement | | |
8.3(b)
|
|
Bishop Financial Advisor | | |
4.24
|
|
Bishop Material Adverse Effect | | |
8.3(c)
|
|
Bishop Material Contract | | |
4.17(a)
|
|
Bishop Measurement Date | | |
4.2(a)
|
|
Bishop Participant | | |
4.12(h)
|
|
Bishop Permits | | |
4.11(b)
|
|
Bishop Permitted Liens | | |
4.19(a)
|
|
Bishop Plans | | |
4.12(a)
|
|
Bishop Preferred Stock | | |
4.2(a)
|
|
Bishop PSU Award | | |
2.4(d)
|
|
Bishop Recommendation | | |
5.4(c)
|
|
Bishop Restricted Stock Award | | |
2.4(b)
|
|
Bishop RSU Award | | |
2.4(c)
|
|
Bishop SEC Documents | | |
4.6(a)
|
|
Bishop Share Consolidation Ratio | | |
Recitals
|
|
Bishop Stock Option | | |
2.4(a)
|
|
Bishop Stockholder Approval | | |
8.3(d)
|
|
Bishop Stockholders Agreement | | |
Recitals
|
|
Bishop Stockholders Meeting | | |
8.3(e)
|
|
Definition
|
| |
Location
|
|
Bishop Support Agreement | | |
Recitals
|
|
Bishop Supporting Stockholders | | |
Recitals
|
|
Bishop Termination Fee | | |
8.3(f)
|
|
Book-Entry Shares | | |
2.2(b)
|
|
Business Day | | |
8.3(g)
|
|
Cancelled Share | | |
2.1(a)(iii)
|
|
CBA | | |
3.13(a)
|
|
Certificates | | |
2.2(b)
|
|
Charter Amendment | | |
Recitals
|
|
Charter Amendment Effective Time | | |
1.5
|
|
Class B Conversion | | |
Recitals
|
|
Closing | | |
1.4
|
|
Closing Date | | |
1.4
|
|
Code | | |
Recitals
|
|
Confidentiality Agreement | | |
5.5(a)
|
|
Continuing Employee | | |
8.3(h)
|
|
Contract | | |
3.5(a)
|
|
control | | |
8.3(i)
|
|
controlled | | |
8.3(i)
|
|
controlled by | | |
8.3(i)
|
|
Controlled Group | | |
3.12(c)
|
|
Covered Countries | | |
3.23(c)(i)
|
|
Determination Notice | | |
5.2(e)
|
|
DGCL | | |
1.1(a)
|
|
Effective Time | | |
1.6
|
|
Environmental Claims | | |
3.14(c)(i)
|
|
Environmental Law | | |
3.14(c)(ii)
|
|
Environmental Permits | | |
3.14(c)(iii)
|
|
ERISA | | |
3.12(a)
|
|
ERISA Affiliate | | |
8.3(j)
|
|
Exchange Act | | |
3.5(b)
|
|
Exchange Agent | | |
2.2(a)
|
|
Exchange Fund | | |
2.2(a)
|
|
Form S-4 | | |
8.3(k)
|
|
Fried Frank | | |
5.14(a)
|
|
GAAP | | |
3.6(b)
|
|
Governmental Entity | | |
3.5(b)
|
|
Hazardous Materials | | |
3.14(c)(iv)
|
|
HSR Act | | |
3.5(b)
|
|
Indebtedness | | |
8.3(l)
|
|
Intellectual Property Rights | | |
8.3(m)
|
|
International Trade Laws and Regulations | | |
3.23(c)(ii)
|
|
Intervening Event | | |
5.2(d)
|
|
Definition
|
| |
Location
|
|
IRS | | |
3.12(a)
|
|
Joint Proxy Statement/Prospectus | | |
8.3(n)
|
|
Kirkland | | |
5.14(a)
|
|
knowing and material breach | | |
8.3(o)
|
|
knowledge | | |
8.3(p)
|
|
Law | | |
3.5(a)
|
|
Liens | | |
3.3
|
|
Merger | | |
Recitals
|
|
Merger Consideration | | |
2.1(a)(ii)
|
|
Merger Sub | | |
Preamble
|
|
Merger Sub Stockholder Approval | | |
8.3(q)
|
|
Mexican Competition Law | | |
5.6(b)
|
|
Multiemployer Plan | | |
3.12(a)
|
|
Multiemployer Plans | | |
3.12(a)
|
|
New Bishop PSU Award | | |
2.3(d)
|
|
New Bishop Restricted Stock Award | | |
2.3(b)
|
|
New Bishop RSU Award | | |
2.3(c)
|
|
New Bishop Stock Option | | |
2.3(a)
|
|
New Plans | | |
5.10(a)
|
|
NYSE | | |
8.3(r)
|
|
OFAC | | |
3.23(c)(ii)
|
|
Ordinary Course | | |
8.3(s)
|
|
Outside Date | | |
7.1(b)(i)
|
|
PBGC | | |
3.12(b)(iii)
|
|
Person | | |
8.3(t)
|
|
Release | | |
3.14(c)(v)
|
|
Representatives | | |
5.2(a)
|
|
Reverse Split | | |
Recitals
|
|
Reverse Split Time | | |
1.1(b)
|
|
Rook | | |
Preamble
|
|
Rook Bylaws | | |
3.1(b)
|
|
Rook Charter | | |
3.1(b)
|
|
Rook Common Stock | | |
Recitals
|
|
Rook D&O Indemnified Parties | | |
5.11(a)
|
|
Rook D&O Insurance | | |
5.11(c)
|
|
Rook Disclosure Letter | | |
Article III
|
|
Rook Equity Awards | | |
2.3(e)
|
|
Rook Expense Reimbursement | | |
8.3(u)
|
|
Rook Financial Advisor | | |
3.24
|
|
Rook Material Adverse Effect | | |
8.3(v)
|
|
Rook Material Contract | | |
3.17(a)
|
|
Rook Measurement Date | | |
3.2(a)
|
|
Rook Participant | | |
3.12(h)
|
|
Definition
|
| |
Location
|
|
Rook Permits | | |
3.11(b)
|
|
Rook Permitted Liens | | |
3.19(a)
|
|
Rook Plans | | |
3.12(a)
|
|
Rook Preferred Stock | | |
3.2(a)
|
|
Rook PSU Award | | |
2.3(d)
|
|
Rook Recommendation | | |
5.4(b)
|
|
Rook Restricted Stock Award | | |
2.3(b)
|
|
Rook RSU Award | | |
2.3(c)
|
|
Rook SEC Documents | | |
3.6(a)
|
|
Rook Stock Option | | |
2.3(a)
|
|
Rook Stockholder Approval | | |
8.3(w)
|
|
Rook Stockholders Agreement | | |
Recitals
|
|
Rook Stockholders Meeting | | |
8.3(x)
|
|
Rook Support Agreement | | |
Recitals
|
|
Rook Supporting Stockholders | | |
Recitals
|
|
Rook Termination Fee | | |
8.3(y)
|
|
Sanctioned Person | | |
3.23(c)(iii)
|
|
SEC | | |
8.3(z)
|
|
Securities Act | | |
3.5(b)
|
|
Share Issuance | | |
8.3(aa)
|
|
Statement of Merger | | |
1.6
|
|
Subsidiary | | |
8.3(bb)
|
|
Superior Proposal | | |
5.2(h)(ii)
|
|
Surviving Corporation | | |
1.2
|
|
Surviving Corporation Articles of Incorporation | | |
1.8(a)
|
|
Surviving Corporation Bylaws | | |
1.8(b)
|
|
Takeover Laws | | |
3.21
|
|
Tax | | |
8.3(cc)
|
|
Tax Return | | |
8.3(dd)
|
|
Taxes | | |
8.3(cc)
|
|
under common control with | | |
8.3(i)
|
|
WARN Act | | |
3.13(b)
|
|
| | | | SWIFT TRANSPORTATION COMPANY | | |||
| | | | By: | | |
/s/ Virginia Henkels
|
|
| | | | | | |
Name:
Virginia Henkels
|
|
| | | | | | |
Title:
Executive Vice President, Chief Financial Officer and Treasurer
|
|
| | | | BISHOP MERGER SUB, INC. | | |||
| | | | By: | | |
/s/ Mickey R. Dragash
|
|
| | | | | | |
Name:
Mickey R. Dragash
|
|
| | | | | | |
Title:
Executive Vice President,
General Counsel and Secretary
|
|
| | | | KNIGHT TRANSPORTATION, INC. | | |||
| | | | By: | | |
/s/ Kevin P. Knight
|
|
| | | | | | |
Name:
Kevin P. Knight
|
|
| | | | | | |
Title:
Executive Chairman
|
|
Director
|
| |
Class
|
| |
Designator
|
|
Glenn Brown* | | | Class I | | | Jack Designator | |
Jerry Moyes* | | | Class III | | | Jack Designator | |
Richard Dozer | | | Class II | | | Bishop | |
David Vander Ploeg | | | Class II | | | Bishop | |
| | |
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|
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|
,
Director
|
|
| | | | Very truly yours, | | |||
| | | | EVERCORE GROUP L.L.C. | | |||
| | | | By: | | | /s/ Mark Friedman | |
| | | | | | |
Mark Friedman
Senior Managing Director |
|
| | | | Very truly yours, | | |||
| | | | MORGAN STANLEY & CO. LLC | | |||
| | | | By: | | | /s/ Benn Calhoun | |
| | | | | | |
Benn Calhoun
Managing Director |
|
1 Year Swift Transportation Company Class A (delisted) Chart |
1 Month Swift Transportation Company Class A (delisted) Chart |
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