Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HUNT J B TRANSPORT SERVICES INC | jbht_8k-071612.htm |
Exhibit 99.1
| J.B. Hunt Transport Services, Inc. | Contact: David G. Mee |
| 615 J.B. Hunt Corporate Drive | Executive Vice President, Finance/Administration |
| Lowell, Arkansas 72745 | and Chief Financial Officer |
| (NASDAQ: JBHT) | (479) 820-8363 |
FOR IMMEDIATE
RELEASE
J. B. HUNT TRANSPORT SERVICES, INC. REPORTS EARNINGS FOR THE SECOND QUARTER 2012
| ▪ Second Quarter 2012 Revenue: | $1.26 billion; up 9% |
| ▪ Second Quarter 2012 Operating Income: | $137 million; up 21% |
| ▪ Second Quarter 2012 EPS: | 67 cents vs. 53 cents |
LOWELL, ARKANSAS, July 16, 2012 - J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced second quarter 2012 net earnings of $80.5 million, or diluted earnings per share of 67 cents vs. second quarter 2011 net earnings of $65.7 million, or 53 cents per diluted share.
Total operating revenue for the current quarter was $1.26 billion, compared with $1.15 billion for the second quarter 2011. Load growth of 13% in Intermodal (JBI) and 16% in Integrated Capacity Solutions (ICS), helped drive a 13% and 23% increase in segment revenue, respectively. Dedicated Contract Services (DCS) segment revenue increased by 1% while Truck (JBT) segment revenue decreased by 3%. Current quarter total operating revenue, excluding fuel surcharges, also increased 9% vs. the comparable quarter 2011.
Operating income for the current quarter totaled $137 million vs. $113 million for the second quarter 2011. Operating income increases from steady demand and higher volumes in JBI and ICS and lower fuel costs in DCS and JBT were partially offset by increases in rail and truck purchase transportation costs, driver wages, toll road charges, maintenance costs and safety costs compared to the same period a year ago.
Interest expense in the current quarter increased slightly due to increased debt levels. The effective income tax rate for the quarter was 38.25% vs. 38.5% in 2011.
Segment Information:
Intermodal (JBI)
| ▪ Second Quarter 2012 Segment Revenue: | $762 million; up 13% |
| ▪ Second Quarter 2012 Operating Income: | $93.4 million; up 22% |
Overall volumes increased 13% over the same period in 2011 in an environment of moderating fuel prices and less seasonally volatile freight demand. Eastern network growth was 21% and transcontinental growth was 8% over the second quarter 2011. Revenue grew 13% with the effect of traffic mix, customer rate increases and fuel surcharges keeping revenue per load virtually flat compared to a year ago.
Operating income increased 22% over prior year. Benefits from steady demand, overall load growth and lower office personnel compensation costs were partially offset by increases in outsourced drayage costs, rail purchase transportation costs, fleet maintenance costs and driver wages. The current period ended with 56,000 units of trailing capacity and 3,440 power units available to the dray fleet.
Dedicated Contract Services (DCS)
| ▪ Second Quarter 2012 Operating Revenue: | $267 million; up 1% |
| ▪ Second Quarter 2012 Operating Income: | $33.2 million; up 21% |
DCS revenue increased 1% during the current quarter while revenue excluding fuel surcharges also increased 1%. Productivity (revenue per truck per week) decreased slightly vs. 2011. New accounts provided a net additional 235 revenue producing trucks by the end of the quarter, with the majority of the increase coming late in the quarter.
Operating income increased by 21% from a year ago. The increase, primarily due to the transfer of assets to more profitable accounts and the decline in fuel costs throughout the quarter, was partially offset from higher safety costs, higher toll road charges and increased maintenance costs compared to 2011.
Truck (JBT)
| ▪ Second Quarter 2012 Segment Revenue: | $126 million; down 3% |
| ▪ Second Quarter 2012 Operating Income: | $ 8.8 million; up 27% |
JBT revenue for the current quarter decreased 3% from the same period in 2011. Revenue excluding fuel surcharges, also decreased 3%. Rates per mile, excluding fuel surcharge increased 3.2%. Rates from consistent shippers improved 2.5% compared to the same quarter a year ago. At the end of the period, JBT operated 2,396 tractors compared to 2,508 a year ago.
Operating income increased 27% compared to 2011. Favorable changes in freight mix, strong seasonal spot pricing, steadily declining fuel costs and improvements in fuel efficiency were partially offset by increases in driver wages, independent contractor costs, lower utilization and higher empty miles compared to second quarter 2011.
Integrated Capacity Solutions (ICS)
| ▪ Second Quarter 2012 Segment Revenue: | $109 million; up 23% |
| ▪ Second Quarter 2012 Operating Income: | $ 2.0 million; down 25% |
ICS revenue increased 23% in the current quarter vs. the second quarter 2011, primarily due to a 16% increase in load volume. While transactional volumes remained relatively flat, contractual volume growth accelerated in the second quarter as new bid awards were implemented. Contractual business elevated to 60% of total volume in the second quarter vs. 52% in the prior year.
Operating income decreased 25% over the same period 2011 primarily due to a decline in gross profit margin. Gross profit margin decreased to 10.6% in the current quarter vs. 12.3% last year. Purchase transportation costs increased throughout the current period due to a tighter supply of qualified transportation providers in the marketplace. Two new branch locations opened during the quarter bringing the total branch count to 14. ICS’s carrier base increased 13% and the employee count increased 7% vs. second quarter 2011.
Cash Flow and Capitalization:
At June 30, 2012, we had a total of $679 million outstanding on various debt instruments compared to $664 million at June 30, 2011 and $749 million at December 31, 2011.
Our net capital expenditures for the six months ended June 30, 2012 approximated $171 million compared to $211 million for the same period 2011. At June 30, 2012, we had cash and cash equivalents of $5.9 million.
We did not purchase any shares of our common stock during the quarter. At June 30, 2012 we had approximately $503 million remaining under two separate share repurchase authorizations. Actual shares outstanding at June 30, 2012 approximated 117.5 million.
This press release may contain forward-looking statements, which are based on information currently available. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2011. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason. This press release and additional information will be available immediately to interested parties on our web site, www.jbhunt.com.
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
|
Three Months Ended June 30
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
|
Amount
|
% Of
Revenue |
Amount
|
% Of
Revenue |
|||||||||||||
|
Operating revenues, excluding fuel surcharge revenues
|
$ | 1,005,519 | $ | 924,689 | ||||||||||||
|
Fuel surcharge revenues
|
249,611 | 225,166 | ||||||||||||||
|
Total operating revenues
|
1,255,130 | 100.0 | % | 1,149,855 | 100.0 | % | ||||||||||
|
Operating expenses
|
||||||||||||||||
|
Rents and purchased transportation
|
616,723 | 49.2 | % | 536,688 | 46.7 | % | ||||||||||
|
Salaries, wages and employee benefits
|
255,864 | 20.4 | % | 255,462 | 22.2 | % | ||||||||||
|
Fuel and fuel taxes
|
113,085 | 9.0 | % | 120,276 | 10.5 | % | ||||||||||
|
Depreciation and amortization
|
56,227 | 4.5 | % | 52,551 | 4.6 | % | ||||||||||
|
Operating supplies and expenses
|
45,540 | 3.6 | % | 40,977 | 3.6 | % | ||||||||||
|
Insurance and claims
|
12,595 | 1.0 | % | 11,642 | 1.0 | % | ||||||||||
|
General and administrative expenses, net of asset dispositions
|
6,356 | 0.5 | % | 7,515 | 0.5 | % | ||||||||||
|
Operating taxes and licenses
|
7,323 | 0.6 | % | 6,883 | 0.6 | % | ||||||||||
|
Communication and utilities
|
4,202 | 0.3 | % | 4,418 | 0.4 | % | ||||||||||
|
Total operating expenses
|
1,117,915 | 89.1 | % | 1,036,412 | 90.1 | % | ||||||||||
|
Operating income
|
137,215 | 10.9 | % | 113,443 | 9.9 | % | ||||||||||
|
Net interest expense
|
6,929 | 0.5 | % | 6,706 | 0.6 | % | ||||||||||
|
Earnings before income taxes
|
130,286 | 10.4 | % | 106,737 | 9.3 | % | ||||||||||
|
Income taxes
|
49,835 | 4.0 | % | 41,041 | 3.6 | % | ||||||||||
|
Net earnings
|
$ | 80,451 | 6.4 | % | $ | 65,696 | 5.7 | % | ||||||||
|
Average diluted shares outstanding
|
120,027 | 123,285 | ||||||||||||||
|
Diluted earnings per share
|
$ | 0.67 | $ | 0.53 | ||||||||||||
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
|
Six Months Ended June 30
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
|
Amount
|
% Of
Revenue |
Amount
|
% Of
Revenue |
|||||||||||||
|
Operating revenues, excluding fuel surcharge revenues
|
$ | 1,944,202 | $ | 1,756,289 | ||||||||||||
|
Fuel surcharge revenues
|
476,850 | 394,346 | ||||||||||||||
|
Total operating revenues
|
2,421,052 | 100.0 | % | 2,150,635 | 100.0 | % | ||||||||||
|
Operating expenses
|
||||||||||||||||
|
Rents and purchased transportation
|
1,172,841 | 48.4 | % | 990,392 | 46.1 | % | ||||||||||
|
Salaries, wages and employee benefits
|
505,909 | 20.9 | % | 487,489 | 22.7 | % | ||||||||||
|
Fuel and fuel taxes
|
233,638 | 9.7 | % | 229,251 | 10.7 | % | ||||||||||
|
Depreciation and amortization
|
112,347 | 4.6 | % | 103,908 | 4.8 | % | ||||||||||
|
Operating supplies and expenses
|
85,351 | 3.5 | % | 77,625 | 3.6 | % | ||||||||||
|
Insurance and claims
|
23,640 | 1.0 | % | 21,489 | 1.0 | % | ||||||||||
|
General and administrative expenses, net of asset dispositions
|
10,350 | 0.4 | % | 14,396 | 0.6 | % | ||||||||||
|
Operating taxes and licenses
|
14,465 | 0.6 | % | 13,531 | 0.6 | % | ||||||||||
|
Communication and utilities
|
8,699 | 0.4 | % | 9,288 | 0.4 | % | ||||||||||
|
Total operating expenses
|
2,167,240 | 89.5 | % | 1,947,369 | 90.5 | % | ||||||||||
|
Operating income
|
253,812 | 10.5 | % | 203,266 | 9.5 | % | ||||||||||
|
Net interest expense
|
13,916 | 0.6 | % | 15,141 | 0.8 | % | ||||||||||
|
Earnings before income taxes
|
239,896 | 9.9 | % | 188,125 | 8.7 | % | ||||||||||
|
Income taxes
|
91,760 | 3.8 | % | 72,334 | 3.3 | % | ||||||||||
|
Net earnings
|
$ | 148,136 | 6.1 | % | $ | 115,791 | 5.4 | % | ||||||||
|
Average diluted shares outstanding
|
119,888 | 123,623 | ||||||||||||||
|
Diluted earnings per share
|
$ | 1.24 | $ | 0.94 | ||||||||||||
|
Financial Information By Segment
|
(in thousands)
(unaudited)
|
Three Months Ended June 30
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
|
Amount
|
% Of
Total |
Amount
|
% Of
Total |
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Intermodal
|
$ | 762,043 | 61 | % | $ | 675,974 | 59 | % | ||||||||
|
Dedicated
|
267,310 | 21 | % | 264,166 | 23 | % | ||||||||||
|
Truck
|
126,180 | 10 | % | 129,974 | 11 | % | ||||||||||
|
Integrated Capacity Solutions
|
109,494 | 9 | % | 89,028 | 8 | % | ||||||||||
|
Subtotal
|
1,265,027 | 101 | % | 1,159,142 | 101 | % | ||||||||||
|
Intersegment eliminations
|
(9,897 | ) | (1 | %) | (9,287 | ) | (1 | %) | ||||||||
|
Consolidated revenue
|
$ | 1,255,130 | 100 | % | $ | 1,149,855 | 100 | % | ||||||||
|
Operating income
|
||||||||||||||||
|
Intermodal
|
$ | 93,368 | 68 | % | $ | 76,531 | 68 | % | ||||||||
|
Dedicated
|
33,198 | 24 | % | 27,389 | 24 | % | ||||||||||
|
Truck
|
8,840 | 7 | % | 6,944 | 6 | % | ||||||||||
|
Integrated Capacity Solutions
|
1,956 | 1 | % | 2,614 | 2 | % | ||||||||||
|
Other (1)
|
(147 | ) | (0 | %) | (35 | ) | (0 | %) | ||||||||
|
Operating income
|
$ | 137,215 | 100 | % | $ | 113,443 | 100 | % | ||||||||
|
Six Months Ended June 30
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
|
Amount
|
% Of
Total |
Amount
|
% Of
Total |
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Intermodal
|
$ | 1,456,159 | 60 | % | $ | 1,252,877 | 58 | % | ||||||||
|
Dedicated
|
523,162 | 22 | % | 502,622 | 23 | % | ||||||||||
|
Truck
|
254,337 | 10 | % | 249,072 | 12 | % | ||||||||||
|
Integrated Capacity Solutions
|
206,546 | 9 | % | 163,773 | 8 | % | ||||||||||
|
Subtotal
|
2,440,204 | 101 | % | 2,168,344 | 101 | % | ||||||||||
|
Intersegment eliminations
|
(19,152 | ) | (1 | %) | (17,709 | ) | (1 | %) | ||||||||
|
Consolidated revenue
|
$ | 2,421,052 | 100 | % | $ | 2,150,635 | 100 | % | ||||||||
|
Operating income
|
||||||||||||||||
|
Intermodal
|
$ | 172,798 | 68 | % | $ | 139,169 | 68 | % | ||||||||
|
Dedicated
|
61,347 | 24 | % | 46,005 | 23 | % | ||||||||||
|
Truck
|
13,724 | 6 | % | 12,779 | 6 | % | ||||||||||
|
Integrated Capacity Solutions
|
6,020 | 2 | % | 5,193 | 3 | % | ||||||||||
|
Other (1)
|
(77 | ) | (0 | %) | 120 | 0 | % | |||||||||
|
Operating income
|
$ | 253,812 | 100 | % | $ | 203,266 | 100 | % | ||||||||
(1) Includes corporate support activity
|
Operating Statistics by Segment
|
(unaudited)
|
Three Months Ended June 30
|
||||||||
|
2012
|
2011
|
|||||||
|
Intermodal
|
||||||||
|
Loads
|
354,790 | 315,067 | ||||||
|
Average length of haul
|
1,687 | 1,714 | ||||||
|
Revenue per load
|
$ | 2,148 | $ | 2,145 | ||||
|
Average tractors during the period *
|
3,379 | 2,830 | ||||||
|
Tractors (end of period)
|
||||||||
|
Company-owned
|
3,057 | 2,759 | ||||||
|
Independent contractor
|
384 | 137 | ||||||
|
Total tractors
|
3,441 | 2,896 | ||||||
|
Net change in trailing equipment during the period
|
1,175 | 1,923 | ||||||
|
Trailing equipment (end of period)
|
56,012 | 50,189 | ||||||
|
Average effective trailing equipment usage
|
54,049 | 49,148 | ||||||
|
Dedicated
|
||||||||
|
Loads
|
367,840 | 368,488 | ||||||
|
Average length of haul
|
203 | 203 | ||||||
|
Revenue per truck per week**
|
$ | 4,222 | $ | 4,306 | ||||
|
Average trucks during the period***
|
4,900 | 4,761 | ||||||
|
Trucks (end of period)
|
||||||||
|
Company-owned
|
4,632 | 4,504 | ||||||
|
Independent contractor
|
17 | 16 | ||||||
|
Customer-owned (Dedicated operated)
|
422 | 316 | ||||||
|
Total trucks
|
5,071 | 4,836 | ||||||
|
Trailing equipment (end of period)
|
12,990 | 11,375 | ||||||
|
Average effective trailing equipment usage
|
13,856 | 12,797 | ||||||
|
Truck
|
||||||||
|
Loads
|
118,500 | 113,170 | ||||||
|
Average length of haul
|
455 | 507 | ||||||
|
Loaded miles (000)
|
53,551 | 56,644 | ||||||
|
Total miles (000)
|
62,447 | 65,098 | ||||||
|
Average nonpaid empty miles per load
|
76.3 | 73.0 | ||||||
|
Revenue per tractor per week**
|
$ | 3,994 | $ | 4,022 | ||||
|
Average tractors during the period *
|
2,461 | 2,513 | ||||||
|
Tractors (end of period)
|
||||||||
|
Company-owned
|
1,505 | 1,621 | ||||||
|
Independent contractor
|
891 | 887 | ||||||
|
Total tractors
|
2,396 | 2,508 | ||||||
|
Trailers (end of period)
|
9,234 | 9,173 | ||||||
|
Average effective trailing equipment usage
|
8,081 | 8,089 | ||||||
|
Integrated Capacity Solutions
|
||||||||
|
Loads
|
74,112 | 63,887 | ||||||
|
Revenue per load
|
$ | 1,477 | $ | 1,394 | ||||
|
Gross profit margin
|
10.6 | % | 12.3 | % | ||||
|
Employee count (end of period)
|
406 | 379 | ||||||
|
Approximate number of third-party carriers (end of period)
|
30,500 | 26,900 | ||||||
* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks
|
Operating Statistics by Segment
|
(unaudited)
|
Six Months Ended June 30
|
||||||||
|
2012
|
2011
|
|||||||
|
Intermodal
|
||||||||
|
Loads
|
678,932 | 594,413 | ||||||
|
Average length of haul
|
1,695 | 1,728 | ||||||
|
Revenue per load
|
$ | 2,145 | $ | 2,108 | ||||
|
Average tractors during the period *
|
3,282 | 2,766 | ||||||
|
Tractors (end of period)
|
||||||||
|
Company-owned
|
3,057 | 2,759 | ||||||
|
Independent contractor
|
384 | 137 | ||||||
|
Total tractors
|
3,441 | 2,896 | ||||||
|
Net change in trailing equipment during the period
|
1,506 | 4,523 | ||||||
|
Trailing equipment (end of period)
|
56,012 | 50,189 | ||||||
|
Average effective trailing equipment usage
|
52,323 | 47,497 | ||||||
|
Dedicated
|
||||||||
|
Loads
|
719,027 | 714,141 | ||||||
|
Average length of haul
|
205 | 202 | ||||||
|
Revenue per truck per week**
|
$ | 4,146 | $ | 4,157 | ||||
|
Average trucks during the period***
|
4,891 | 4,707 | ||||||
|
Trucks (end of period)
|
||||||||
|
Company-owned
|
4,632 | 4,504 | ||||||
|
Independent contractor
|
17 | 16 | ||||||
|
Customer-owned (Dedicated operated)
|
422 | 316 | ||||||
|
Total trucks
|
5,071 | 4,836 | ||||||
|
Trailing equipment (end of period)
|
12,990 | 11,375 | ||||||
|
Average effective trailing equipment usage
|
13,146 | 12,762 | ||||||
|
Truck
|
||||||||
|
Loads
|
235,404 | 219,433 | ||||||
|
Average length of haul
|
477 | 520 | ||||||
|
Loaded miles (000)
|
111,102 | 112,851 | ||||||
|
Total miles (000)
|
128,711 | 129,084 | ||||||
|
Average nonpaid empty miles per load
|
75.1 | 71.6 | ||||||
|
Revenue per tractor per week**
|
$ | 3,905 | $ | 3,846 | ||||
|
Average tractors during the period*
|
2,538 | 2,531 | ||||||
|
Tractors (end of period)
|
||||||||
|
Company-owned
|
1,505 | 1,621 | ||||||
|
Independent contractor
|
891 | 887 | ||||||
|
Total tractors
|
2,396 | 2,508 | ||||||
|
Trailers (end of period)
|
9,234 | 9,173 | ||||||
|
Average effective trailing equipment usage
|
8,117 | 8,128 | ||||||
|
Integrated Capacity Solutions
|
||||||||
|
Loads
|
142,250 | 123,700 | ||||||
|
Revenue per load
|
$ | 1,452 | $ | 1,324 | ||||
|
Gross profit margin
|
12.4 | % | 13.4 | % | ||||
|
Employee count (end of period)
|
406 | 379 | ||||||
|
Approximate number of third-party carriers (end of period)
|
30,500 | 26,900 | ||||||
* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| June 30, 2012 | December 31, 2011 | |||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 5,887 | $ | 5,450 | ||||
|
Accounts Receivable
|
472,077 | 411,479 | ||||||
|
Prepaid expenses and other
|
62,461 | 96,613 | ||||||
|
Total current assets
|
540,425 | 513,542 | ||||||
|
Property and equipment
|
2,777,107 | 2,658,143 | ||||||
|
Less accumulated depreciation
|
981,317 | 931,273 | ||||||
|
Net property and equipment
|
1,795,790 | 1,726,870 | ||||||
|
Other assets
|
29,061 | 26,920 | ||||||
| $ | 2,365,276 | $ | 2,267,332 | |||||
|
LIABILITIES & STOCKHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Current debt
|
$ | 100,000 | $ | 50,000 | ||||
|
Trade accounts payable
|
298,587 | 251,625 | ||||||
|
Claims accruals
|
43,980 | 42,364 | ||||||
|
Accrued payroll
|
57,683 | 77,107 | ||||||
|
Other accrued expenses
|
24,111 | 17,419 | ||||||
|
Total current liabilities
|
524,361 | 438,515 | ||||||
|
Long-term debt
|
579,462 | 699,177 | ||||||
|
Other long-term liabilities
|
49,723 | 45,382 | ||||||
|
Deferred income taxes
|
498,457 | 516,715 | ||||||
|
Stockholders' equity
|
713,273 | 567,543 | ||||||
| $ | 2,365,276 | $ | 2,267,332 | |||||
Supplemental Data
(unaudited)
|
June 30, 2012
|
December 31, 2011
|
|||||||
|
Actual shares outstanding at end of period (000)
|
117,550 | 116,932 | ||||||
|
Book value per actual share outstanding at end of period
|
$ | 6.07 | $ | 4.85 | ||||
|
Six Months Ended June 30
|
||||||||
| 2012 | 2011 | |||||||
|
Net cash provided by operating activities (000)
|
$ | 260,579 | $ | 307,673 | ||||
|
Net capital expenditures (000)
|
$ | 170,880 | $ | 210,963 | ||||