Knight Transportation Reports Growth in First Quarter 2013 Revenue and Earnings

  Knight Transportation Reports Growth in First Quarter 2013 Revenue and

Business Wire

PHOENIX -- April 24, 2013

Knight Transportation, Inc. (NYSE: KNX), one of North America’s largest and
most diversified truckload transportation companies, today reported revenue
and net income for the first quarter ended March 31, 2013.

Key financial highlights for the first quarter were as follows:

                                 Three Months Ended March 31,
                                 (dollars in thousands, except per share data)
                                 2013            2012             % Change
Total revenue                    $  235,400        $ 219,532          7.2   %
Revenue, excluding               $  189,600        $ 175,599          8.0   %
trucking fuel surcharge
GAAP operating income            $  25,544         $ 19,834           28.8  %
Adjusted operating income        $  25,544         $ 23,815  ^(1)     7.3   %
GAAP net income                  $  15,183         $ 10,546           44.0  %
Adjusted net income              $  15,183         $ 14,440  ^(1)     5.1   %
GAAP earnings per diluted        $  0.19           $ 0.13             43.8  %
Adjusted earnings per            $  0.19           $ 0.18    ^(1)     5.0   %
diluted share

               [The 2012 quarter included a $4.0 million non-cash charge ($3.9
    ^(1)  million after tax) for stock option acceleration. See GAAP to
               Non-GAAP reconciliation schedule. GAAP and Non-GAAP
               measurements for 2013 are identical.]

The company previously announced a quarterly cash dividend of $0.06 per share
to shareholders of record on March 1, 2013, which was paid on March 29, 2013.

Kevin Knight commented on the quarter, ''Our ability to deliver revenue
growth, year over year, for the 14^th consecutive quarter, despite a
challenging operating and economic environment, is a testament of our people,
the value of our services to our customers, and the company we are building.
Several years ago we only provided dry van truckload services. Today we are a
company that provides a wide range of truckload logistics services. We are
finding the most efficient ways to move loads for our customers.''

During the first quarter of 2013 we continued to grow revenue in each of our
businesses. As a result of the sluggish freight environment and a more
competitive driver market, miles per tractor were down 1.6% when compared to
the same quarter last year. Despite the reduction in utilization, we were able
to grow revenue, excluding trucking fuel surcharge, by 8.0% and adjusted
operating income by 7.3% when compared to the first quarter of 2012.

The following chart reflects the year-over-year operating ratio comparison and
revenue growth for our asset based businesses and our non-asset based
businesses for the first quarter of 2013 and 2012.

                      Three Months Ended March 31,
                      Operating ratios^(2)   Revenue
                      2013        2012       
Asset based           85.3  %       85.4 %     2.1   %
Non-asset based       92.8  %       94.4 %     57.9  %
Consolidated          86.5  %       86.4 %     7.2   %

               [Operating ratio is defined as total operating expenses, net of
               trucking fuel surcharge, as a percentage of revenue before
    ^(2)  trucking fuel surcharge. Operating ratio for 2012 quarter is
               calculated using adjusted operating income. See reconciliation

Our asset and non-asset based businesses continue to grow and develop as we
continue to provide our customers with truckload services that are efficient
and valuable to their supply chain needs. We were especially pleased with the
growth in our non-asset based businesses, as these services continue to
develop as an integral part of our customer offering and provide both revenue
and earnings growth.

The market remains challenging for hiring high quality driving associates. We
believe the Knight ''system'' of decentralized regional service centers
provides a ''hometown'' feel that affords us a significant advantage in
recruiting, retaining, and developing driving associates. As a result, our
driver turnover continues to compare favorably to what we believe to be the
industry average.

The DOE national average diesel fuel price increased 1.0% when compared to the
first quarter last year. Fuel remains a major cost focus for us as we continue
our work towards cost effective, industry leading fuel economy while at the
same time meaningfully contributing to environmental improvements.

Our average tractor count for the quarter increased year-over-year 2.5% to
4,076 tractors, and declined 2.4% from the fourth quarter of 2012. Our tractor
fleet remains one of the most modern fleets in the industry with an average
age of 2.0 years. Our gain on sale of revenue equipment in the first quarter
of 2013 was $1.4 million, down from $2.7 million in the first quarter of 2012.

The Federal Motor Carrier Safety Administration (''FMCSA'') has approved new
hours of service rules that are scheduled to go in to effect July 1, 2013,
unless delayed. The new rules, if implemented, will result in more restrictive
use of the 34 hour restart as well as require a 30 minute break for every
eight hours of driving. If these rules are adopted, and our customers are
unable to provide more flexibility in terms of pickup and delivery times, it
will have a negative effect on productivity and available capacity. We have
and will continue to work closely with our customers to help them understand
the practical impacts of these changes to driver available hours, and to
understand how driver available hours constrains capacity and affects the cost
of our services.

We have returned $95.9 million to our shareholders in the form of quarterly
dividends and stock repurchases over the twenty-four-month period ending March
31, 2013. We ended the quarter with $10.2 million of cash and $501.8 million
of shareholders' equity. We also repaid $37.0 million of debt during the
quarter, and as of March 31, 2013, had $43.0 million of borrowing under our
unsecured revolving credit agreement.

The company will hold a conference call on April 24, 2013, at 4:30 PM EDT, to
further discuss its results of operations for the quarter ended March 31,
2013. The dial in number for this conference call is 1-855-733-9163. Slides to
accompany this call will be posted on the company’s website and will be
available to download prior to the scheduled conference time. To view the
presentation, please visit, ''First
Quarter 2013 Conference Call Presentation.''

Knight Transportation, Inc. is a provider of multiple truckload transportation
and logistics services using a nationwide network of service centers in the
U.S. to serve customers throughout North America. In addition to operating one
of the country’s largest tractor fleets, Knight also partners with third-party
equipment providers to provide a broad range of truckload services to its
customers while creating quality driving jobs for our driving associates and
successful business opportunities for owner-operators.

INCOME STATEMENT DATA:              Three Months Ended March 31,
                                    (Unaudited, in thousands, except per share
                                    2013                      2012
Revenue, before fuel                $   189,600               $   175,599
Fuel surcharge                         45,800                43,933    
TOTAL REVENUE                          235,400               219,532   
Salaries, wages and benefits            57,654                    60,956
Fuel expense - gross                    55,693                    57,311
Operations and maintenance              15,910                    13,737
Insurance and claims                    7,155                     7,645
Operating taxes and licenses            3,908                     4,103
Communications                          1,172                     1,395
Depreciation and amortization           21,507                    20,372
Purchased transportation                42,792                    31,860
Miscellaneous operating                4,065                 2,319     
                                       209,856               199,698   
Income From Operations                 25,544                19,834    
Interest income                         109                       112
Interest expense                        (141      )               (128      )
Other income                           220                   197       
Income before income taxes              25,732                    20,015
INCOME TAXES                           10,298                9,356     
Net Income                              15,434                    10,659
Net income attributable to             (251      )            (113      )
noncontrolling interest
NET INCOME ATTRIBUTABLE TO          $   15,183             $   10,546    
Net Income Per Share
- Basic                             $   0.19                  $   0.13
- Diluted                           $   0.19                  $   0.13
Weighted Average Shares
- Basic                                 79,841                    79,531
- Diluted                               80,124                    80,046
                                    03/31/13                  12/31/12
ASSETS                              (Unaudited, in thousands)
Cash and cash equivalents           $   10,196                $   5,684
Accounts receivable, net                112,576                   102,553
Notes receivable, net                   739                       791
Related party notes and                 2,069                     2,814
interest receivable
Prepaid expenses                        14,165                    17,035
Assets held for sale                    15,283                    18,362
Other current assets                    10,368                    12,449
Current deferred tax asset             4,028                 3,409     
Total Current Assets                    169,424                   163,097
Property and equipment, net             563,080                   584,064
Notes receivable, long-term             3,146                     3,692
Goodwill                                10,271                    10,276
Other assets and restricted            21,535                21,383    
Total Long-term Assets                  598,032                   619,415
Total Assets                        $   767,456            $   782,512   
Accounts payable                    $   15,383                $   11,281
Accrued payroll and purchased           12,718                    10,489
Accrued liabilities                     21,230                    16,020
Claims accrual - current                16,366                    15,892
Dividend payable - current             151                   141       
Total Current Liabilities               65,848                    53,823
Claims accrual - long-term              10,455                    10,340
Long-term dividend payable &            2,384                     2,638
other liabilities
Deferred income taxes                   143,242                   144,871
Long-term debt                         43,000                80,000    
Total Long-term Liabilities             199,081                   237,849
Total Liabilities                      264,929               291,672   
Common stock                            799                       798
Additional paid-in capital              144,489                   142,837
Accumulated other                       (51       )               (302      )
comprehensive income/(loss)
Retained earnings                      356,591               346,899   
Total Knight Transportation             501,828                   490,232
Shareholders' Equity
Noncontrolling interest                699                   608       
Total Shareholders' Equity             502,527               490,840   
Total Liabilities and               $   767,456            $   782,512   
Shareholders' Equity

                                       Three Months Ended March 31,
                                       2013            2012        
OPERATING STATISTICS                                                    %
Average Revenue Per Tractor*           $  38,573         $ 39,044       -1.2 %
Non-paid Empty Mile Percent               11.0%           10.7%       2.8  %
Average Length of Haul                    480              479          0.2  %
Operating Ratio**                         86.5%           86.4%  
Average Tractors - Total                  4,076            3,978
Trailers - End of Quarter                 9,468            8,878
Net Capital (Proceeds)                 $  (1,758  )      $ 24,290
Expenditures (in thousands)
Cash Flow From Operations (in          $  40,322         $ 30,255

* Includes dry van, refrigerated, and port services revenue excluding fuel
surcharge, brokerage revenue, intermodal revenue, and other revenue.

** Operating ratio as reported in this press release is based upon total
operating expenses, net of fuel surcharge, as a percentage of revenue before
fuel surcharge. Operating ratio reported for the three months ending March 31,
2012 is based upon total operating expenses, excluding the first quarter 2012
one time non-cash stock compensation charge of $4 million related to the
accelerated vesting of certain stock options issued prior to 2009, and net of
fuel surcharge, as a percentage of revenue before fuel surcharge. We measure
our revenue, before fuel surcharge, and our operating expenses, net of fuel
surcharge, because we believe that eliminating this sometimes volatile source
of revenue affords a more consistent basis for comparing our results of
operations from period to period.
The following is a reconciliation of 2012 YTD GAAP Income to Non-GAAP Income:

                                                 * Option
                                 (GAAP) YTD      Acceleration     (Non-GAAP)
Reconciliation:                  3-31-12       Expense        Adjusted YTD
                                                 Recorded in      3-31-12
                                                 Q1 - 2012
Total Revenue                    $ 219,532                        $  219,532
Total Operating Expense           199,698      (3,981   )         195,717 
                                   19,834                            23,815
Other Income                      181                             181     
Income before income taxes         20,015                            23,996
Income taxes                      9,356        87                 9,443   
Net Income                         10,659                            14,553
Net income attributable to        (113    )                        (113    )
noncontrolling interest
Net income attributable to       $ 10,546                        $  14,440  
Knight Transportation
Net Income Per Share
- Basic                          $ 0.13                           $  0.18
- Diluted                        $ 0.13                           $  0.18
Weighted Average Shares
- Basic                            79,531                            79,531
- Diluted                          80,046                            80,046

* The first quarter of 2012 included a $4.0 million pretax non-cash stock
compensation charge ($3.9 million after tax) relating to the accelerated
vesting of certain stock options that had been issued prior to 2009.

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements generally may be
identified by their use of terms or phrases such as ''expects,''
''estimates,'' ''anticipates,'' ''projects,'' ''believes,'' ''plans,''
''intends,'' ''may,'' ''will,'' ''should,'' ''could,'' ''potential,''
''continue,'' ''future,'' and terms or phrases of similar substance.
Forward-looking statements are based upon the current beliefs and expectations
of our management and are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified, which could cause future events
and actual results to differ materially from those set forth in, contemplated
by, or underlying the forward-looking statements. Accordingly, actual results
may differ from those set forth in the forward-looking statements. Readers
should review and consider the factors that may affect future results and
other disclosures by the Company in its press releases, stockholder reports,
Annual Report on Form 10-K, and other filings with the Securities and Exchange
Commission. We disclaim any obligation to update or revise any forward-looking
statements to reflect actual results or changes in the factors affecting the
forward-looking information.


Knight Transportation, Inc.
David A. Jackson, 602-606-6349
Adam W. Miller, 602-606-6349
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