Schneider National (SNDR) is the largest privately-held for-hire trucking companies in the United States with a long track record that dates to its founding in Green Bay, WI in 1935. The company operates throughout North America with its business spread across three business units-Truckload, Intermodal, and Logistics. The Truckload segment is the second largest in North America while the Intermodal segment is among the largest. The Logistics unit, which includes brokerage, supply chain services, and import/export services, is the company’s fastest growing segment.
The company’s portfolio has approximately 10,500 company-owned trucks, 2,850 owner-operator vehicles, 37,900 trailers, and 18,100 intermodal containers. The company has 19,300 enterprise associates and approximately 16,000 customers coming from a range of different industries. Schneider trucks cover more than 8.9 million miles per day. Schneider’s logistics business manages 23,000 carrier relationships, resulting in about $2 billion of third-party freight managed in 2016.
The company believes its array of offered transportation services across these three units provides an edge over competitors whose offerings are more limited. Out of its top 25 customers, 21 use services from all three reportable segments. The company boasts an industry-leading safety culture and its management has extensive industry experience.
In 2016, Schneider’s operating revenue totaled $4.05 billion, which was up 2.2% year-over-year. 2016 net income of $156.85 million, represented year-over-year growth of 11.3%.
The company’s net cash and cash equivalents declined by $29.89 million in 2016. Net cash provided by operating activities was $455.31 million and net cash provided by financing activities totaled $28.15 million. However, that was more than offset by $513.35 million of net cash used in investing activities.
At the end of 2016, Schneider had $439.63 million of long term debt and obligations under capital leases.
SNDR intends to pay a dividend, but it is currently unclear what the amount and yield will be. To get a better sense, we can note that the company paid a quarterly dividend of $0.05/share on March 20. In fiscal year 2016, the company paid out an annual dividend of $0.20/share.