WERNER ENTERPRISES INC - FORM 8-K - EX-99.1 - July 29, 2021

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Exhibit 99.1
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Werner Enterprises Reports Record Second Quarter 2021 Results

Second Quarter 2021 Highlights (all metrics compared to second quarter 2020)

•Total revenues of $649.8 million, up 14%
•Operating income of $76.9 million, up 46%; non-GAAP adjusted operating income of $79.1 million, up 37%
•Operating margin of 11.8%, up 250 bps; non-GAAP adjusted operating margin of 12.2%, up 210 bps
•Diluted EPS of $1.06, up 87%; non-GAAP adjusted diluted EPS of $0.86, up 40%

OMAHA, Neb., July 29, 2021 -- Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported record second quarter operating income, net income and diluted earnings per share for the quarter ended June 30, 2021.

“Werner achieved record second quarter results based on our strong execution in a robust freight market,” said Derek J. Leathers, Chairman, President and Chief Executive Officer. “The rapidly recovering economy combined with a severely constrained driver market is presenting labor challenges for customers and carriers alike. I am proud of the Werner team for working tirelessly and creatively to provide our customers with best-in-class solutions and superior performance.”

Total revenues for the quarter were $649.8 million, an increase of $80.9 million compared to the prior year quarter, due primarily to Truckload Transportation Services revenues growth of $46.1 million and Logistics revenues growth of $31.5 million.

Operating income of $76.9 million increased $24.0 million, or 46%, while operating margin of 11.8% increased 250 basis points. On a non-GAAP basis, adjusted operating income of $79.1 million increased $21.4 million, or 37%. Adjusted operating margin of 12.2% improved 210 basis points from 10.1% for the same quarter last year.

We generated operating margin expansion from significantly higher revenues per total mile, continued strong safety performance, effective cost management and improved gains on sales of trucks and trailers. These improvements were partially offset by inflationary cost increases for drivers, fuel and other expenses and lower miles per truck due to a higher percentage of Dedicated trucks to total trucks and fewer team drivers.

Interest expense of $0.7 million decreased from $1.2 million due to lower average borrowings. The effective income tax rate during the quarter was 25.5% compared to 24.8% in second quarter 2020.

In first quarter 2021, Werner made a strategic minority equity investment in TuSimple, an autonomous technology company. TuSimple completed an initial public offering in April 2021. As a result, we recognized a $20.2 million, or $0.22 per share, unrealized gain on our investment, which increased our non-operating income in second quarter 2021.

Net income of $72.0 million increased 84%. On a non-GAAP basis, adjusted net income of $58.7 million increased 37%. Diluted earnings per share (EPS) for the quarter of $1.06 increased 87%. On a non-GAAP basis, adjusted diluted EPS of $0.86 increased 40%.



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Key Consolidated Financial Metrics
Three Months Ended
June 30,		Six Months Ended
June 30,
(In thousands, except per share amounts)20212020Y/Y Change20212020Y/Y Change
Total revenues$649,814 $568,959 14 %$1,266,260 $1,161,662 9 %
Truckload Transportation Services revenues491,200 445,053 10 %954,149 909,916 5 %
Werner Logistics revenues141,673 110,163 29 %279,526 222,327 26 %
Operating income76,863 52,818 46 %139,334 83,884 66 %
Operating margin11.8 %9.3 %250 bps11.0 %7.2 %380 bps
Net income72,032 39,132 84 %118,524 62,190 91 %
Diluted earnings per share1.06 0.56 87 %1.74 0.89 94 %
Adjusted operating income (1)
79,113 57,695 37 %141,829 94,973 49 %
Adjusted operating margin (1)
12.2 %10.1 %210 bps11.2 %8.2 %300 bps
Adjusted net income (1)
58,666 42,765 37 %105,340 70,451 50 %
Adjusted diluted earnings per share (1)
0.86 0.62 40 %1.54 1.01 52 %
(1) See GAAP to non-GAAP reconciliation schedule.

Noteworthy Developments

•On July 1, 2021, Werner acquired an 80% equity ownership interest in ECM Transport Group (“ECM”) for a purchase price of $142.4 million. ECM achieved revenues of $108 million in 2020 with an operating margin 19.8%. ECM consists of ECM Transport and Motor Carrier Service, which are elite regional truckload carriers that together operate nearly 500 trucks and 2,000 trailers in the Mid-Atlantic, Ohio and Northeast regions of the U.S.
•Werner issued its inaugural Corporate Social Responsibility report on July 27, 2021 which is accessible from the Company’s website at werner.com

Truckload Transportation Services (TTS) Segment

•Revenues of $491.2 million increased $46.1 million
•Operating income of $73.1 million increased $21.9 million, or 43%; non-GAAP adjusted operating income of $74.4 million increased $18.3 million, or 33%
•Operating margin of 14.9% increased 340 basis points from 11.5%; non-GAAP adjusted operating margin of 15.1% increased 250 basis points from 12.6%
•Non-GAAP adjusted operating margin, net of fuel, of 17.1% increased 340 basis points from 13.7%
•Average segment trucks in service totaled 7,664, a decrease of 98 trucks year over year, or 1.3%
•Dedicated unit trucks at quarter end totaled 5,040 or 66% of the total TTS segment fleet, compared to 4,535 trucks, or 59%, a year ago
•6.7% increase in TTS average revenues per truck per week

In our Dedicated and One-Way Truckload fleets, freight demand was strong during second quarter 2021. Freight demand has continued to be strong so far in third quarter 2021.

Total miles decreased 12.3 million miles in second quarter 2021, caused by a higher percentage of Dedicated trucks to total trucks and fewer team drivers, and 1.3% fewer average trucks in service. TTS company truck miles decreased by approximately 6.8 million miles, and independent contractor miles decreased by approximately 5.5 million miles.

Comparisons of key financial metrics for the TTS segment, including operating ratios (actual and net of fuel surcharge revenues), are shown in the table that follows. Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment’s operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting against fuel expenses. Eliminating


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fuel surcharge revenues, which are generally a more volatile source of revenue, provides a more consistent basis for comparing the results of operations from period to period.

Key Truckload Transportation Services Segment Financial Metrics
Three Months Ended
June 30,		Six Months Ended
June 30,
(In thousands)20212020Y/Y Change20212020Y/Y Change
Trucking revenues, net of fuel surcharge$428,523 $406,834 5 %$839,175 $815,932 3 %
Trucking fuel surcharge revenues57,439 34,208 68 %104,898 85,249 23 %
Non-trucking and other revenues5,238 4,011 31 %10,076 8,735 15 %
Total revenues$491,200 $445,053 10 %$954,149 $909,916 5 %
Operating income73,108 51,225 43 %130,736 80,314 63 %
Operating margin14.9 %11.5 %340 bps13.7 %8.8 %490 bps
Operating ratio85.1 %88.5 %(340) bps86.3 %91.2 %(490) bps
Adjusted operating income74,366 56,102 33 %133,252 91,403 46 %
Adjusted operating margin15.1 %12.6 %250 bps14.0 %10.0 %400 bps
Adjusted operating margin, net of fuel surcharge17.1 %13.7 %340 bps15.7 %11.1 %460 bps
Adjusted operating ratio84.9 %87.4 %(250) bps86.0 %90.0 %(400) bps
Adjusted operating ratio, net of fuel surcharge82.9 %86.3 %(340) bps84.3 %88.9 %(460) bps

Werner Logistics Segment

•Revenues of $141.7 million increased $31.5 million, or 29%
•Gross margin of 12.2% decreased 350 bps
•Operating income of $3.9 million increased $0.8 million, or 25%
•Operating margin of 2.8% remained flat

Logistics revenues of $142 million increased 29%. Logistics revenues increased 52%, if you exclude Werner Global Logistics (WGL) revenues from second quarter 2020. Werner sold WGL in first quarter 2021.

Truckload Logistics revenues (69% of total Logistics revenues) increased 49%. Truckload Logistics volume increased 10%, and revenues per shipment increased 37%.

Intermodal revenues (29% of Logistics revenues) increased 52%, due to volume growth of 30% and 17% higher revenues per shipment.

The gross margin percentage decreased 350 bps due to higher spot truckload and intermodal dray rates which significantly increased the cost of capacity for contractual brokerage shipments and Intermodal shipments in second quarter 2021. The Logistics gross profit remained flat while operating income increased 25% as other operating expenses declined 6% due to improved automation and efficiency.













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Key Werner Logistics Segment Financial Metrics

Three Months Ended
June 30,		Six Months Ended
June 30,
(In thousands)20212020Y/Y Change20212020Y/Y Change
Total revenues$141,673 $110,163 29 %$279,526 $222,327 26 %
Rent and purchased transportation expense124,388 92,842 34 %244,915 188,774 30 %
Gross profit17,285 17,321 0 %34,611 33,553 3 %
Other operating expenses13,358 14,182 (6)%26,110 29,329 (11)%
Operating income3,927 3,139 25 %8,501 4,224 101 %
Gross margin12.2 %15.7 %(350) bps12.4 %15.1 %(270) bps
Operating margin2.8 %2.8 %— bps3.0 %1.9 %110 bps


Cash Flow and Capital Allocation

Cash flow from operations in second quarter 2021 was $53.6 million compared to $154.0 million in second quarter 2020, a decrease of 65%. The decrease was primarily due to working capital changes resulting from the timing of estimated income tax payments and changes in accounts receivable.

Net capital expenditures in the second quarter 2021 were $65.1 million compared to $88.8 million in second quarter 2020, a decrease of 27%. We plan to continue to invest in new trucks and trailers and our terminals to improve our driver experience, optimize operational efficiency and more effectively manage our maintenance, safety and fuel costs. The average ages of our truck and trailer fleets remain low by industry standards and were 2.0 years and 4.1 years, respectively, as of June 30, 2021.

Gains on sales of equipment in second quarter 2021 were $13.5 million, or $0.15 per share, compared to $0.9 million, or $0.01 per share, in second quarter 2020. Year over year, we sold more trucks and fewer trailers and realized substantially higher average gains per truck and trailer due to the significantly improved pricing market for our used equipment. As a reminder, gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

We did not repurchase shares of our common stock in second quarter 2021. As of June 30, 2021, we had 2.7 million shares remaining under our share repurchase authorization.

As of June 30, 2021, we had $192 million of cash and nearly $1.3 billion of stockholders’ equity. Total debt outstanding increased $125 million during the quarter to $300 million at June 30, 2021. After considering letters of credit issued, we had available liquidity consisting of cash and available borrowing capacity as of June 30, 2021 of $441 million, prior to the closing payment for ECM on July 1, 2021.


















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2021 Guidance Metrics and Assumptions

The following table summarizes our updated 2021 guidance and assumptions:

2021 Guidance
Prior
(as of 4/28/21)		Actual
(as of 6/30/21)		New
(as of 7/29/21)		Commentary
TTS truck growth from BoY to EoY1% to 3%
(annual)		(2)%
(YTD21)		1% to 4%
(annual)		Includes ECM acquisition of 500 trucks
Gains on sales of equipment$7M to $10M
(2Q21)		$13.5M
(2Q21)		$9M to $13M
(3Q21)		Guidance based on lower sales volume, higher pricing and subject to timing of OEM new truck and trailer deliveries
Net capital expenditures$275M to $300M
(annual)		$103M
(YTD21)		$275M to $300M
(annual)		Larger net CapEx in 2H21 due to timing of OEM deliveries
TTS Guidance
Dedicated RPTPW*
growth		3% to 5%
(annual)		2.4%
(2Q21 vs. 2Q20)		3% to 5%
(annual)		Rates in 2Q21 vs. 2Q20 above guidance range, miles per truck lower due to fleet mix
One-Way Truckload (OWT) RPTM* growth13% to 16%
(2Q21 vs. 2Q20)		16.7%
(2Q21 vs. 2Q20)		16% to 19%
(2H21 vs. 2H20)
New guidance includes the favorable impact of the ECM acquisition in 2H21 (16% of OWT fleet)
Assumptions
Effective income tax rate24.5% to 25.5%
(annual)		25.5%
(2Q21)		24.5% to 25.5%
(annual)
Truck age
Trailer age		2.0 years
Low-to-mid “4” years		2.0 years
4.1 years		2.0 years
Low-to-mid “4” years		Reinvesting to maintain young fleet advantage, subject to timing of OEM deliveries
* Net of fuel surcharge revenues






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Conference Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss second quarter 2021 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at werner.com in the “Investors” section under “News & Events” and then “Webcasts & Presentations.” To participate in the conference call, please dial (844) 701-1165 (domestic) or (412) 317-5498 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call.

A replay of the conference call will be available on July 29, 2021 at approximately 6:00 p.m. CT through August 29, 2021 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 10150332. A replay of the webcast will also be available at werner.com in the “Investors” section under “News & Events” and then “Webcasts & Presentations.”










































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About Werner Enterprises

Werner Enterprises, Inc. (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2020 revenues of $2.4 billion, an industry-leading modern truck and trailer fleet, over 13,000 talented associates and our innovative Werner Edge technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. As an industry leader, Werner is deeply committed to promoting sustainability and supporting diversity, equity and inclusion.

This press release may contain 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, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission, through the issuance of press releases or by other methods of public disclosure.

To supplement our financial results presented on a GAAP basis, we provide certain non-GAAP financial measures, including adjusted operating income, adjusted net income and adjusted diluted earnings per share. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.


Contact:
John J. Steele
Executive Vice President, Treasurer
and Chief Financial Officer
(402) 894-3036

Source: Werner Enterprises, Inc.







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INCOME STATEMENT
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
$%$%$%$%
Operating revenues$649,814 100.0 $568,959 100.0 $1,266,260 100.0 $1,161,662 100.0 
Operating expenses:
Salaries, wages and benefits
210,095 32.4 194,981 34.3 414,948 32.8 400,978 34.5 
Fuel
58,503 9.0 30,677 5.4 109,341 8.6 79,448 6.8 
Supplies and maintenance
49,414 7.6 43,343 7.6 95,561 7.5 89,064 7.7 
Taxes and licenses
23,744 3.7 23,953 4.2 46,977 3.7 46,803 4.0 
Insurance and claims
20,739 3.2 25,789 4.5 42,795 3.4 61,853 5.3 
Depreciation
63,865 9.8 67,670 11.9 127,816 10.1 136,507 11.8 
Rent and purchased transportation
150,920 23.2 120,704 21.2 297,413 23.5 247,146 21.3 
Communications and utilities
3,333 0.5 3,536 0.6 6,355 0.5 7,344 0.6 
Other
(7,662)(1.2)5,488 1.0 (14,280)(1.1)8,635 0.8 
Total operating expenses
572,951 88.2 516,141 90.7 1,126,926 89.0 1,077,778 92.8 
Operating income76,863 11.8 52,818 9.3 139,334 11.0 83,884 7.2 
Other expense (income):
Interest expense
701 0.1 1,161 0.2 1,539 0.1 2,752 0.2 
Interest income
(334)(0.1)(377)(0.1)(631)— (1,003)(0.1)
Gain on equity investment(20,191)(3.1)— — (20,191)(1.6)— — 
Other
54 — 23 — 96 — 68 — 
Total other expense (income)
(19,770)(3.1)807 0.1 (19,187)(1.5)1,817 0.1 
Income before income taxes96,633 14.9 52,011 9.2 158,521 12.5 82,067 7.1 
Income tax expense24,601 3.8 12,879 2.3 39,997 3.1 19,877 1.7 
Net income$72,032 11.1 $39,132 6.9 $118,524 9.4 $62,190 5.4 
Diluted shares outstanding68,216 69,435 68,237 69,531 
Diluted earnings per share$1.06 $0.56 $1.74 $0.89 

























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GAAP TO NON-GAAP RECONCILIATION
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Operating revenues$649,814 $568,959 $1,266,260 $1,161,662 
Operating expenses572,951 516,141 1,126,926 1,077,778 
Operating income76,863 52,818 139,334 83,884 
Total other expense (income)(19,770)807 (19,187)1,817 
Income before income taxes96,633 52,011 158,521 82,067 
Income tax expense24,601 12,879 39,997 19,877 
Net income$72,032 $39,132 $118,524 $62,190 
Diluted shares outstanding68,216 69,435 68,237 69,531 
Diluted earnings per share$1.06 $0.56 $1.74 $0.89 
Adjusted for:
Operating expenses$572,951 $516,141 $1,126,926 $1,077,778 
Insurance and claims (1)
(1,258)(1,198)(2,516)(2,396)
  Acquisition expenses (2)
(992)— (992)— 
  Gain on sale of Werner Global Logistics (3)
— — 1,013 — 
  Depreciation (4)
— (3,679)— (8,693)
Adjusted operating expenses570,701 511,264 1,124,431 1,066,689 
Adjusted operating income (5)
79,113 57,695 141,829 94,973 
Total other expense (income)(19,770)807 (19,187)1,817 
Adjusted for:
  Gain on equity investment (6)
20,191 — 20,191 — 
Adjusted income before income taxes78,692 56,888 140,825 93,156 
Adjusted income tax expense20,026 14,123 35,485 22,705 
Adjusted net income (5)
$58,666 $42,765 $105,340 $70,451 
Diluted shares outstanding68,216 69,435 68,237 69,531 
Adjusted diluted earnings per share (5)
$0.86 $0.62 $1.54 $1.01 

(1) During second quarter 2021 and 2020, we accrued pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on May 17, 2018 in a lawsuit arising from a December 2014 accident. The Company is appealing this verdict. Additional information about the accident was included in our Current Report on Form 8-K dated May 17, 2018. Under our insurance policies in effect on the date of this accident, our maximum liability for this accident is $10.0 million (plus pre-judgment and post-judgment interest) with premium-based insurance coverage that exceeds the jury verdict amount. Interest is accrued at $0.4 million per month until such time as the outcome of our appeal is finalized. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(2) During second quarter 2021, we incurred legal and professional fees related to the acquisition of ECM Transport Group, which was finalized on July 1, 2021. The expenses are included within other operating expenses in the Income Statement and in Corporate operating income in our Segment Information table.

(3) During first quarter 2021, we sold Werner Global Logistics (“WGL”) freight forwarding services for international ocean and air shipments to Scan Global Logistics Group, which resulted in the pre-tax gain on sale. Management believes excluding the effect of this unusual and infrequent item provides a more useful comparison of our performance from period to period. This item is included in the Werner Logistics segment in our Segment Information table.

(4) During first quarter 2020, we changed the estimated life of certain trucks expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market. These trucks continued to depreciate at the same higher rate per truck, until all were sold. Management believes excluding the effect of this unusual and infrequent item provides a more useful comparison of our performance from period to period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(5) Our definition of the non-GAAP measures adjusted operating income, adjusted net income and adjusted diluted earnings per share begins with (a) operating expenses, the most comparable GAAP measure. We subtract the insurance and claims jury verdict interest accrual, the acquisition expenses, and the additional depreciation expense and add the gain on sale of WGL to (a) to arrive at adjusted operating expenses, which we subtract from operating revenues to arrive at (b) adjusted operating income. We subtract (c) total other expense (income) adjusted to remove the gain on equity investment from (b) adjusted operating income to arrive at (d) adjusted income before income taxes. We calculate adjusted income tax expense by applying the incremental income tax rate excluding discrete items to the net pre-tax adjustments and adding this additional income tax to GAAP income tax expense. We then subtract adjusted income tax expense from adjusted income before income taxes to arrive at adjusted net income. The adjusted net income is divided by the diluted shares outstanding to calculate the adjusted diluted earnings per share.

(6) Non-operating, mark-to-market gain on our ownership interest in TuSimple, an autonomous technology company. TuSimple completed its initial public offering in April 2021. Upon completion, our equity investment was converted to Class A common shares. We account for our interest, which represents less than 1%, under ASC 321, Investments - Equity Securities. We record changes in the value of our investment, based on the share price reported by Nasdaq, in other expense (income) in the Income Statement. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period.



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SEGMENT INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Revenues
Truckload Transportation Services$491,200 $445,053 $954,149 $909,916 
Werner Logistics141,673 110,163 279,526 222,327 
Other (1)
16,725 13,315 32,124 28,383 
Corporate409 442 788 1,061 
    Subtotal650,007 568,973 1,266,587 1,161,687 
Inter-segment eliminations (2)
(193)(14)(327)(25)
     Total$649,814 $568,959 $1,266,260 $1,161,662 
Operating Income
Truckload Transportation Services$73,108 $51,225 $130,736 $80,314 
Werner Logistics3,927 3,139 8,501 4,224 
Other (1)
1,663 (534)2,529 2,366 
Corporate(1,835)(1,012)(2,432)(3,020)
     Total$76,863 $52,818 $139,334 $83,884 
`

(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities.
(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation.
OPERATING STATISTICS BY SEGMENT
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
20212020% Chg20212020% Chg
Truckload Transportation Services segment
Average trucks in service7,664 7,762 (1.3)%7,727 7,812 (1.1)%
Average revenues per truck per week (1)
$4,301 $4,032 6.7 %$4,177 $4,017 4.0 %
Total trucks (at quarter end)
  Company7,305 7,165 2.0 %7,305 7,165 2.0 %
  Independent contractor340 485 (29.9)%340 485 (29.9)%
  Total trucks7,645 7,650 (0.1)%7,645 7,650 (0.1)%
Total trailers (at quarter end)23,090 21,820 5.8 %23,090 21,820 5.8 %
One-Way Truckload
Trucking revenues, net of fuel surcharge (in 000’s)$166,171 $167,984 (1.1)%$323,010 $345,833 (6.6)%
Average trucks in service2,715 3,149 (13.8)%2,785 3,210 (13.2)%
Total trucks (at quarter end)2,605 3,115 (16.4)%2,605 3,115 (16.4)%
Average percentage of empty miles10.72 %13.01 %(17.6)%11.04 %12.41 %(11.0)%
Average revenues per truck per week (1)
$4,709 $4,103 14.8 %$4,461 $4,143 7.7 %
Average % change YOY in revenues per total mile (1)
16.7 %(1.9)%13.1 %(2.7)%
Average % change YOY in total miles per truck per week(1.7)%(0.3)%(4.8)%2.3 %
Average completed trip length in miles (loaded)877 813 7.9 %865 838 3.2 %
Dedicated
Trucking revenues, net of fuel surcharge (in 000’s)$262,352 $238,850 9.8 %$516,165 $470,099 9.8 %
Average trucks in service4,949 4,613 7.3 %4,942 4,602 7.4 %
Total trucks (at quarter end)5,040 4,535 11.1 %5,040 4,535 11.1 %
Average revenues per truck per week (1)
$4,079 $3,983 2.4 %$4,018 $3,928 2.3 %
Werner Logistics segment
Average trucks in service34 31 9.7 %36 32 12.5 %
Total trucks (at quarter end)41 30 36.7 %41 30 36.7 %
Total trailers (at quarter end)1,325 1,635 (19.0)%1,325 1,635 (19.0)%

(1) Net of fuel surcharge revenues


Werner Enterprises, Inc. - Release of July 29, 2021
Page 11

SUPPLEMENTAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Capital expenditures, net$65,081 $88,769 $102,947 $107,609 
Cash flow from operations53,597 153,966 189,464 287,342 
Return on assets (annualized)12.7 %7.5 %10.7 %5.9 %
Return on equity (annualized)22.9 %14.0 %19.2 %11.1 %












Werner Enterprises, Inc. - Release of July 29, 2021
Page 12

CONDENSED BALANCE SHEET
(In thousands, except share amounts)
June 30,
2021		December 31,
2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$192,128 $29,334 
Accounts receivable, trade, less allowance of $8,988 and $8,686, respectively391,082 341,104 
Other receivables
25,120 23,491 
Inventories and supplies
11,899 12,062 
Prepaid taxes, licenses and permits
7,970 17,231 
   Other current assets38,312 33,694 
Total current assets
666,511 456,916 
Property and equipment2,428,268 2,405,335 
Less – accumulated depreciation893,453 862,077 
Property and equipment, net
1,534,815 1,543,258 
Other non-current assets (1)
181,541 156,502 
Total assets$2,382,867 $2,156,676 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$94,367 $83,263 
Current portion of long-term debt
— 25,000 
Insurance and claims accruals
65,321 76,917 
Accrued payroll
48,420 35,594 
Accrued expenses25,972 25,032 
Other current liabilities
20,107 28,208 
Total current liabilities
254,187 274,014 
Long-term debt, net of current portion300,000 175,000 
Other long-term liabilities42,568 43,114 
Insurance and claims accruals, net of current portion (1)
236,270 231,638 
Deferred income taxes253,259 237,870 
Stockholders’ equity:
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536
shares issued; 67,931,873 and 67,931,726 shares outstanding, respectively805 805 
Paid-in capital
117,069 116,039 
Retained earnings
1,542,497 1,438,916 
Accumulated other comprehensive loss
(20,873)(22,833)
Treasury stock, at cost; 12,601,663 and 12,601,810 shares, respectively(342,915)(337,887)
Total stockholders’ equity
1,296,583 1,195,040 
Total liabilities and stockholders’ equity$2,382,867 $2,156,676 

(1) Under the terms of our insurance policies, we are the primary obligor of the damage award in the previously mentioned adverse jury verdict, and as such, we have recorded a $79.2 million receivable from our third party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals in the unaudited condensed balance sheets as of June 30, 2021 and December 31, 2020.




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