SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
Commission File No. 0-24946
KNIGHT TRANSPORTATION, INC.
(Exact name of registrant as specified in its charter)
Arizona 86-0649974
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5601 West Buckeye Road
Phoenix, Arizona
85043
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: 602-269-2000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--------------- ------------
The number of shares outstanding of registrant's Common Stock, par value $0.01
per share, as of August 12, 1996 was 9,902,000 shares.
<PAGE>
KNIGHT TRANSPORTATION, INC.
INDEX
<TABLE>
<CAPTION>
<S> <C> <C>
PART I - FINANCIAL INFORMATION Page Number
Item 1. Financial Statements
Consolidated Balance Sheets as of 1
June 30, 1996 (unaudited) and December 31, 1995
Consolidated Statements of Income (unaudited) 3
for the Three Month and Six Month Periods Ended June 30, 1996 and June 30, 1995
Consolidated Statements of Cash Flows (unaudited) 4
for the Six Month Periods Ended June 30, 1996 and June 30, 1995
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial 7
Condition and Results of Operations
Part II - OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3 Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6 Exhibits and Reports on Form 8-K 12
Signatures 13
Index to Exhibits 15
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
as of June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, 1996
( unaudited ) December 31, 1995
--------------------------- -------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 76,138 623,656
Accounts receivable, net 9,858,196 7,375,038
Inventories and supplies 506,954 422,589
Prepaid expenses 1,410,245 937,304
Deferred tax asset 1,663,498 1,420,000
--------------------------- -------------------------
Total current assets 13,515,031 10,778,587
--------------------------- -------------------------
PROPERTY AND EQUIPMENT:
Land and improvements 4,065,612 2,104,394
Buildings and improvements 900,486 246,384
Furniture and fixtures 1,377,590 1,158,140
Shop and service equipment 552,228 367,900
Revenue equipment 48,741,391 38,557,223
Leasehold improvements 571,936 469,854
--------------------------- -------------------------
56,209,243 42,903,895
Less: Accumulated depreciation (12,600,717) (10,926,067)
--------------------------- -------------------------
PROPERTY AND EQUIPMENT, net 43,608,526 31,977,828
OTHER ASSETS 575,174 343,079
--------------------------- -------------------------
$57,698,731 $43,099,494
=========================== =========================
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
1
<PAGE>
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (continued)
as of June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, 1996
( unaudited ) December 31, 1995
------------------------- --------------------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,083,281 $ 3,202,258
Accrued liabilities 2,203,643 1,773,293
Claims accrual 3,641,980 3,093,513
Current portion of long-term debt 901,216 1,002,150
Notes payable 383,706 --
Line of credit 11,700,000 2,000,000
------------------------- --------------------------
Total current liabilities 21,913,826 11,071,214
LONG TERM DEBT, less current portion 523,455 980,787
DEFERRED INCOME TAXES 7,140,458 6,315,200
------------------------- --------------------------
Total liabilities 29,577,739 18,367,201
------------------------- --------------------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value;
authorized 50,000,000 shares,
none issued and outstanding
Common stock, $0.01 par value;
authorized 100,000,000 shares issued and outstanding
9,102,000 shares 91,020 91,020
Additional paid-in capital 9,761,747 9,761,747
Retained earnings 18,268,225 14,879,526
------------------------- --------------------------
Total shareholders' equity 28,120,992 24,732,293
------------------------- --------------------------
$57,698,731 $43,099,494
========================= ==========================
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
2
<PAGE>
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
----------------------------- -------------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPERATING REVENUE $18,969,783 $13,527,267 $35,550,619 $25,434,908
OPERATING EXPENSES:
Salaries, wages and benefits 5,359,717 4,029,030 10,089,610 7,754,322
Fuel 2,030,943 1,480,118 3,751,140 2,827,686
Operations and maintenance 915,778 897,622 1,748,352 1,770,566
Insurance and claims 792,120 540,226 1,410,081 1,105,147
Operating taxes and licenses 666,939 575,392 1,258,907 1,055,123
Communications 111,277 66,138 234,780 123,817
Depreciation and amortization 1,904,014 1,324,005 3,567,124 2,530,498
Purchased transportation 3,474,231 1,822,185 6,537,113 2,863,385
Miscellaneous operating expenses 459,606 337,820 863,106 587,540
---------- ---------- ---------- ----------
15,714,625 11,072,536 29,460,213 20,618,084
---------- ---------- ---------- ----------
Income from operations 3,255,158 2,454,731 6,090,406 4,816,824
OTHER INCOME (EXPENSE):
Interest income 1,740 15,112 3,675 31,991
Interest expense (171,997) (60,181) (271,381) (120,901)
---------- ---------- ---------- ----------
(170,257) (45,069) (267,706) (88,910)
---------- ---------- ---------- ----------
Income before taxes 3,084,901 2,409,662 5,822,700 4,727,914
INCOME TAXES (1,284,000) (1,068,000) (2,434,000) (2,100,000)
---------- ---------- ---------- ----------
Net Income $1,800,901 $1,341,662 $3,388,700 $2,627,914
========== ========== ========== ==========
Net income per common share and common share
equivalent: Primary $0.20 $0.15 $0.37 $0.29
Fully diluted $0.19 $0.15 $0.37 $0.29
========== ========== ========== ==========
Weighted average number of common
shares and common share equivalents
outstanding: Primary 9,217,560 9,116,879 9,190,934 9,130,076
Fully diluted 9,242,283 9,126,963 9,241,378 9,129,984
========= ========= ========= =========
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
3
<PAGE>
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 3,388,700 $2,627,914
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,567,124 2,530,498
Allowance for doubtful accounts 73,139 14,496
Deferred income taxes 581,760 454,800
Changes in assets and liabilities:
Increase in receivables (2,556,297) (1,338,100)
Increase in inventories and supplies (84,365) (17,869)
(Increase) decrease in prepaid expenses 628,259 (135,543)
Increase in other assets (361,248) (28,087)
Increase in accounts payable 883,033 757,361
Increase in accrued liabilities and
claims accrual 978,817 1,078,182
----------- -------------
Net cash provided by operating
activities 7,098,922 5,943,652
----------- -------------
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (14,142,954) (6,261,786)
------------ --------------
Net cash used in investing activities (14,142,954) (6,261,786)
------------ --------------
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
4
<PAGE>
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (continued)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
---------------------------------------------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOW FROM FINANCING ACTIVITIES:
Increase in line of credit and note payable 8,855,391 698,256
Repayment of debt (431,151) (892,643)
Decrease in accounts payable - equipment (1,927,726) (1,528,322)
---------------------- ---------------------
Net cash provided by (used in)
financing activities 6,496,514 (1,722,709)
---------------------- ---------------------
NET DECREASE IN CASH AND
CASH EQUIVALENTS (547,518) (2,040,843)
CASH AND CASH EQUIVALENTS,
beginning of period 623,656 2,146,797
---------------------- ---------------------
CASH AND CASH EQUIVALENTS, end of period $ 76,138 $ 105,954
====================== =====================
SUPPLEMENTAL DISCLOSURES:
Noncash investing and financing transactions:
Equipment acquired by
accounts payable 925,716 214,875
Insurance premium financed . 1,101,200 --
Cash Flow Information:
Income taxes 1,335,400 1,205,893
Interest 275,781 118,387
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
5
<PAGE>
KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Financial Information
The accompanying consolidated financial statements include the parent company
Knight Transportation, Inc., and its wholly owned subsidiaries, Quad-K Leasing,
Inc., KTTE Holdings, Inc., QKTE Holdings, Inc., and Knight Dedicated Services
Limited Partnership, which is comprised of KTTE Holdings, Inc. as general
partner and QKTE Holdings, Inc. as sole limited partner (hereinafter
collectively called the "Company"). All material intercompany items and
transactions have been eliminated in consolidation.
The consolidated financial statements included herein have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
The statements presented do not include all information and footnotes required
to be in conformity with generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments) considered necessary for a fair presentation
have been included. Results of operations in interim periods are not necessarily
indicative of results for a full year. These consolidated financial statements
and notes thereto should be read in conjunction with the Company's consolidated
financial statements and notes thereto included in the Company's annual report
on Form 10-K for the year ended December 31, 1995.
Note 2. Income Tax Matters
Income taxes have been provided at the statutory federal and state rates
adjusted for certain permanent differences between financial statement and
income tax reporting.
Note 3. Legal Matters
The Company's tractor and trailer fleets are registered in Oklahoma and Utah and
operate primarily in the western United States, including California. The
Company is presently being audited by the State of California's Department of
Motor Vehicles, with respect to the 1994, 1995, and 1996 "mileage years".
Although no assessment has yet been made, California is asserting that all the
Company's trailers are subject to mileage based apportioned registration, and
that the Company owes trailer registration fees in excess of those amounts
previously paid. The Company intends to vigorously contest the position taken by
California. To the extent the Company is unsuccessful in its efforts, it may be
required to pay additional registration fees for the mileage years involved and
penalties as well as increased registration fees (relative to payments paid with
respect to prior periods) for future periods. The Company believes that the
outcome of the California audit will not have a materially adverse effect on the
Company's financial position or results of operations.
Note 4. Subsequent Event
The Company registered an additional 800,000 shares of Common Stock effective as
of July 18, 1996. The Company received net proceeds of $13,952,000 in connection
with the offering. It is expected that approximately $10.2 million of the net
proceeds from the shares offered on behalf of the Company will be used to repay
its current line of credit indebtedness incurred primarily to acquire revenue
equipment, with the balance used to acquire additional revenue equipment and for
general corporate purposes.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
- ---------------------
Knight Transportation, Inc.'s (the "Company") operating revenue for the six
months ended June 30, 1996 increased by 40% to $35.6 million from $25.0 million
over the same period in 1995. For the three months ended June 30, 1996,
operating revenue increased by 40% to $19.0 million from $13.5 million over the
same period in 1995. The increase in operating revenue resulted from expansion
of the Company's customer base and increased volume from existing customers, and
was facilitated by the continued expansion of the Company's fleet, including an
increase in the Company's independent contractor fleet. The Company's fleet
increased by 35.8% to 508 tractors (including 146 owned by independent
contractors) as of June 30, 1996, from 374 tractors (including 78 owned by
independent contractors) as of June 30, 1995. Despite increases in revenue, the
Company's revenue per mile declined to $1.25 per mile for the six months ended
June 30, 1996 from $1.26 per mile for the same period in 1995. This decrease was
offset by revenue increases resulting from the growth of the Company's
independent contractor program combined with additional revenues generated by
the Company's expansion of its operations with the commencement of dedicated
service and regional operations near Houston in early 1996.
Salaries, wages and benefits decreased as a percentage of operating revenue to
28.4% for the six months ended June 30, 1996 from 30.5% for the same period in
1995. For the three months ended June 30, 1996, salaries, wages and benefits
decreased to 28.3% from 29.8% for the same period in 1995. These decreases were
primarily the result of the increase in the ratio of independent contractors to
company drivers.
Fuel expense decreased as a percentage of operating revenue to 10.6% for the six
months ended June 30, 1996 from 11.1% for the same period in 1995. For the three
months ended June 30, 1996, fuel expenses as a percentage of revenue decreased
to 10.7% from 10.9% for the same period in 1995. Although fuel costs increased
slightly, the overall decrease resulted from the growth of the Company's
independent contractor program. Independent contractors are required to pay
their own fuel costs.
Operations and maintenance expense decreased as a percentage of operating
revenue to 4.9% for the six months ended June 30, 1996 from 7.0% for the
corresponding period in 1995. For the three months ended June 30, 1996,
operations and maintenance expense as a percentage of revenue decreased to 4.8%
from 6.6% for the same period in 1995. These decreases resulted from a
substantial decline in trailer lease costs incurred due to an increase in
Company owned trailers during the period and the continued growth in the
Company's independent contractor program.
Insurance and claims expense decreased as a percentage of operating revenue to
4.0% for the six months ended June 30, 1996 from 4.3% for the same period in
1995. For the three months ended June 30, 1996 insurance and claims expense
increased to 4.2% from 4.0% for the same period in 1995. The overall decrease
for the six months ended June 30, 1996, was due to a reduction in insurance
premium costs and an overall lower level of new claims reserves during the
period. Although insurance and claims expense decreased as a percentage of
operating revenue for the six months ended June 30, 1996, the increase during
the three month period ended June 30, 1996 was the result of a reevaluation of
reserves for incurred but not reported incidents in the Company's new
operations.
7
<PAGE>
Operating taxes and licenses decreased as a percentage of revenue to 3.5% for
the six months ended June 30, 1996 from 4.1% for the same period in 1995. For
the three months ended June 30, 1996, operating taxes and licenses decreased to
3.6% from 4.3% for the same period in 1995. These decreases resulted primarily
from growth in the Company's independent contractor program. Independent
contractors are required to pay their own mileage taxes.
For the six month period ended June 30, 1996, depreciation and amortization
expense increased as a percentage of operating revenue to 10.0% from 9.9% for
the corresponding period in 1995. For the three month period ended June 30,
1996, depreciation and amortization expense increased as a percentage of
operating revenue to 10.0% from 9.8% for the same period in 1995. Although
depreciation expense decreased as a result of the continued growth in the
Company's independent contractor program, overall depreciation expense increased
due to the Company's expansion of its trailer fleet during the period.
Purchased transportation increased as a percentage of operating revenue to 18.4%
for the six months ended June 30, 1996 from 11.3% for the same period in 1995.
For the three months ended June 30, 1996, purchased transportation increased to
18.3% from 13.5% for the same period in 1995. These increases were due to the
growth in the Company's independent contractor program from 78 tractors as of
June 30, 1995 to 146 as of June 30, 1996.
Communications and miscellaneous operating expenses as a percentage of revenues
for both the six month and three month periods ended June 30, 1996 were slightly
higher than the same periods in 1995.
The Company's operating ratio (operating expenses as a percentage of operating
revenue) for the six months ended June 30, 1996 increased to 82.9% from 81.1%
for the same period in 1995. The Company's operating ratio for the three months
ended June 30, 1996 increased to 82.8% from 81.9% for the same period in 1995.
Management believes the increases in the operating ratio were mainly due to the
competitive marketplace resulting in a lower revenue per mile and lower tractor
utilization.
For both the six month and three month periods ended June 30, 1996, net interest
expense as a percentage of revenue was slightly higher than the same periods in
1995, resulting from increased borrowings to finance the purchase of additional
revenue equipment.
Income taxes have been provided at the statutory federal and state rates,
adjusted for certain permanent differences between financial statement and
income tax reporting.
As a result of the preceding changes, the Company's net income as a percentage
of operating revenue was 9.5% for the three months ended June 30, 1996 as
compared to 9.9% for the same period in 1995 and 9.5% for the six months ended
June 30, 1996 as compared to 10.3% for the same period in 1995.
8
<PAGE>
Liquidity and Capital Resources
The growth of the Company's business has required a significant investment in
new revenue equipment. The Company's primary sources of liquidity have been
funds provided by operations, term borrowings to finance equipment purchases,
and the Company's line of credit. Net cash provided by operating activities
totaled approximately $7.1 million for the first six months of 1996 and $5.9
million for the corresponding period in 1995.
Capital expenditures for the purchase of revenue equipment, office equipment and
leasehold improvements totaled $15.1 million for the first six months of 1996
and $6.5 million for the same period in 1995.
Net cash provided by financing activities and direct financing was $7.6 million
for the first six months of 1996 compared to net cash used in financing
activities of $2.0 million for the same period in 1995. Net cash provided by
financing activities during the first six months of 1996 was primarily the
result of increased borrowings under the Company's revolving line of credit to
fund expansion of the Company's tractor and trailer fleet in addition to the
Company's financing of its 1996 insurance premiums.
The Company has a $15 million line of credit from its lender and uses that line
to finance the acquisition of revenue equipment and other corporate purposes to
the extent the cost of such acquisitions are not provided by funds from
operations. Under the Company's line of credit, the Company is obligated to
comply with certain financial covenants. The rate of interest on borrowings
against the line of credit will vary depending upon the interest rate election
made by the Company, based on either the London Interbank Offered Rate (LIBOR),
the prime rate, or the lender's certificate of deposit rate. At June 30, 1996,
the Company had borrowings under the revolving line of credit totaling $11.7
million.
Management of the Company believes it has adequate liquidity to meet its current
needs. The Company will continue to have significant capital requirements over
the long term, which may require the Company to incur debt or seek additional
equity capital. The availability of this capital will depend upon prevailing
market conditions, the market price of the common stock and other factors over
which the Company has no control, as well as the Company's financial condition
and results of operations.
The Company registered an additional 800,000 shares of Common Stock effective as
of July 18, 1996. The Company received net proceeds of $13,952,000 in connection
with the offering. It is expected that approximately $10.2 million of the net
proceeds from the shares offered on behalf of the Company will be used to repay
its current line of credit indebtedness incurred primarily to acquire revenue
equipment, with the balance used to acquire additional revenue equipment and for
general corporate purposes.
Seasonality
To date, the Company's revenues have not shown any significant seasonal pattern.
Because the Company has operated primarily in Arizona, California and the
western United States, winter weather has not adversely affected the Company's
business. Expansion of the Company's operations into Texas and Louisiana, as
well as in the Midwest and on the East Coast, could expose the Company to
greater operating variances due to seasonal weather.
9
<PAGE>
Inflation
Many of the Company's operating expenses, including fuel costs and fuel taxes,
are sensitive to the effects of inflation, which could result in higher
operating costs. The effects of inflation on the Company's business during the
six months ended June 30, 1996 were not significant.
10
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is party to ordinary routine litigation incidental to its business
primarily involving claims for personal injury or property damage incurred in
the transportation of freight. The company maintains insurance to cover
liabilities in amounts in excess of self-insured retentions.
In 1994, the Company received notice from the Equal Employment
Opportunity Commission ("EEOC") of charges of race discrimination filed by
two drivers seeking employment as dispatchers. The EEOC found reasonable
cause to believe the Company had discriminated against the individuals and a
class of similarly situated individuals based on race. The EEOC also
determined that the Company had engaged in retaliatory conduct against a
charging party. The Company has been notified by the EEOC that conciliation
has failed with respect to the two charges, including the class charge, and
the EEOC has filed suit against the Company alleging unlawful employment
practices on the basis of race and unlawful retaliation. The EEOC is seeking
damages on behalf of the individuals involved and a class of persons the
Company is alleged to have failed to hire as dispatchers. The EEOC is also
seeking injunctive relief against alleged unlawful employment practices, the
institution of policies providing for equal employment, pecuniary relief for
the affected class, including back pay, pre-judgment interest and
compensation for past and future services, and punitive damages. It is the
Company's policy to comply with all applicable laws relating to equal
employment opportunity. The Company believes that the EEOC claims are without
merit and that it has defenses to all claims. The Company intends to
vigorously defend the claims.
The Company's tractor and trailer fleets are registered in Oklahoma and Utah
and operate primarily in the western United States, including California. The
Company is presently being audited by the State of California's Department of
Motor Vehicles, with respect to the 1994, 1995, and 1996 "mileage years".
Although no assessment has yet been made, California is asserting that all
the Company's trailers are subject to mileage based apportioned registration,
and that the Company owes trailer registration fees in excess of those
amounts previously paid. The Company intends to vigorously contest the
position taken by California. To the extent the Company is unsuccessful in
its efforts, it may be required to pay additional registration fees for the
mileage years involved and penalties as well as increased registration fees
(relative to payments paid with respect to prior periods) for future periods.
The Company believes that the outcome of the California audit will not have a
materially adverse effect on the Company's financial position or results of
operations.
Two of the Company's officers, Kevin P. Knight and Gary J. Knight, are
engaged in arbitration proceedings with their former employer, Swift
Transportation, Inc. ("Swift") with respect to claims by Swift for damages
and injunctive relief in connection with disputes related to their departure
in March 1990 from employment with Swift. The matter has been submitted to
the Superior Court of the State of Arizona for definition of issues and
referral for further arbitration proceedings. The Company is not a party to
any of these proceedings and does not believe these proceedings will affect
its business or financial condition.
11
<PAGE>
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5. Other Information
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-K
No. Description
--- -----------
Exhibit 4 Instruments defining the rights of
security holders, including indentures
(a) Articles 4, 10 and 11 of the Restated
Articles of Incorporation of the
Company. (Incorporated by reference to
Exhibit 3.1 to the Company's Report on
Form 10-K for the fiscal year ended
December 31, 1994.)
(b) Sections 2 and 5 of the Amended and
Restated By-laws of the Company.
(Incorporated by reference to Exhibit
3.2 to the Company's Report on Form
10-K for the fiscal year ended
December 31, 1995.)
Exhibit 11 Schedule of Computation of Net Income
Per Share
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the three month
period ended June 30, 1996.
12
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
KNIGHT TRANSPORTATION, INC.
Date: August 12, 1996 By: /s/ Randy Knight
-------------------------------
Randy Knight
Chairman
Date: August 12, 1996 By: /s/ Clark Jenkins
-------------------------------
Clark Jenkins
Chief Financial Officer and
Principal Financial Officer
13
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS TO
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
Commission File No. 0-24946
14
<PAGE>
KNIGHT TRANSPORTATION, INC.
INDEX TO EXHIBITS TO FORM 10-Q
<TABLE>
<CAPTION>
Sequentially
Exhibit No. Description Numbered Pages(1)
- ----------- ----------- -----------------
<S> <C>
Exhibit 4 Instruments defining the rights of security holders,
including indentures
(a) Articles 4, 10 and 11 of the Restated Articles of
Incorporation of the Company. (Incorporated by
reference to Exhibit 3.1 to the Company's Report
on Form 10-K for the fiscal year ended
December 31, 1994.)
(b) Sections 2 and 5 of the Amended and Restated
By-laws of the Company. (Incorporated by
reference to Exhibit 3.2 to the Company's Report
on Form 10-K for the fiscal year ended
December 31, 1995.)
Exhibit 11 Schedule of Computation of Net Income Per Share
Exhibit 27 Financial Data Schedule
(1) The page numbers where exhibits (other than those incorporated by reference)
may be found are indicated only on the manually signed report.
</TABLE>
15
KNIGHT TRANSPORTATION, INC.
AND SUBSIDIARIES
SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
------------------------------------ ---------------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Primary and Fully diluted:
Common shares outstanding
beginning of period 9,102,000 9,100,000 9,102,000 9,100,000
Common share equivalents:
Employee stock options outstanding &
canceled (1)
Primary 115,560 16,879 88,934 30,076
Fully diluted 140,283 26,963 139,378 29,984
Employee stock options exercised (1)
Primary
Fully diluted -- -- -- --
-- -- -- --
--------------- ---------------- -------------- ---------------
Number of common share and common
share equivalents outstanding
Primary
Fully diluted 9,217,560 9,116,879 9,190,934 9,130,076
9,242,283 9,126,963 9,241,378 9,129,984
=============== ================ ============== ===============
Net Income 1,800,901 1,341,662 3,388,700 2,627,914
Net income per common share and
common share equivalent
Primary $.20 $.15 $.37 $.29
Fully diluted $.19 $.15 $.37 $.29
=============== ================ ============== ===============
</TABLE>
Notes:
(1) Amount calculated using the treasury stock method.
EXHIBIT 11
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE COMPANY'S
CONSOLIDATED FINANCIAL STATEMENT AND IS QUALIFIED
FOR ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENT
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 76,138
<SECURITIES> 0
<RECEIVABLES> 10,226,283
<ALLOWANCES> 368,087
<INVENTORY> 506,954
<CURRENT-ASSETS> 13,515,032
<PP&E> 56,209,243
<DEPRECIATION> 12,600,717
<TOTAL-ASSETS> 57,698,731
<CURRENT-LIABILITIES> 10,213,946
<BONDS> 0
0
0
<COMMON> 91,020
<OTHER-SE> 28,029,972
<TOTAL-LIABILITY-AND-EQUITY> 57,698,731
<SALES> 0
<TOTAL-REVENUES> 35,550,619
<CGS> 0
<TOTAL-COSTS> 29,460,213
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 267,706
<INCOME-PRETAX> 5,822,700
<INCOME-TAX> 2,434,000
<INCOME-CONTINUING> 3,388,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,388,700
<EPS-PRIMARY> .37
<EPS-DILUTED> .37
</TABLE>
