J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the First Quarter 2015
- First Quarter 2015 Revenue:
$1.44 billion ; up 2% - First Quarter 2015 Operating Income:
$155 million ; up 32% - First Quarter 2015 EPS:
78 cents vs.58 cents
Total operating revenue for the current quarter was
Operating income for the current quarter totaled
Net interest expense for the current quarter increased 5% from the same period in 2014 on higher debt levels. The effective income tax rate for both the current quarter and first quarter 2014 was 38.10%.
Segment Information:
Intermodal (JBI)
- First Quarter 2015 Segment Revenue:
$844 million ; up 1% - First Quarter 2015 Operating Income:
$104.3 million ; up 12%
JBI load volumes grew 6% over the same period 2014. Eastern network realized load growth of 12% and Transcontinental loads grew 2% compared to prior year as the west coast port issues limited eastbound intermodal traffic. Overall revenue grew 1% reflecting the 6% volume growth and a 5% decrease in revenue per load, which is the combination of customer rate increases, lower fuel surcharges and freight mix. Revenue per load excluding fuel surcharge revenue increased 3% year over year.
Operating income increased 12% over prior year. Benefits from customer rate increases, improved dray network efficiency from improving western rail service, lower cargo claims costs, lower maintenance costs and less reliance on outsourced dray carriers were partially offset with increases in rail purchased transportation rates, equipment depreciation costs, equipment storage costs, driver recruiting and driver retention costs. The current period ended with approximately 74,200 units of trailing capacity and 4,900 power units available to the dray fleet.
Dedicated Contract Services (DCS)
- First Quarter 2015 Segment Revenue:
$345 million ; up 7%
- First Quarter 2015 Operating Income:
$35.8 million ; up 130%
DCS revenue increased 7% during the current quarter over the same period 2014. Productivity, defined as revenue per truck per week, was up approximately 1.4% vs. 2014 from customer rate increases and additional activity at customer accounts. A net additional 336 revenue producing trucks were in the fleet by the end of the quarter compared to prior year primarily from new contract implementations in the current and prior periods.
Operating income increased 130% from a year ago. The increase is primarily due to increased revenue, improved asset utilization, less reliance on third party carriers, lower equipment maintenance costs and the current period benefit of rapidly falling fuel prices. These benefits were partially offset by higher driver wage and recruiting costs and higher equipment depreciation costs.
Integrated Capacity Solutions (ICS)
- First Quarter 2015 Segment Revenue:
$163 million ; flat - First Quarter 2015 Operating Income:
$6.6 million ; up 8%
ICS revenue was flat vs. first quarter 2014. Volumes increased 17% while revenue per load decreased 14.5% primarily due to lower fuel prices and less transactional customer demand from first quarter 2014. Contractual business load counts increased 49% from a year ago to approximately 74% of total load volume and 65% of total revenue in the current period compared to 59% and 50%, respectively, in first quarter 2014.
Operating income increased 8% over the same period in 2014 primarily from improved gross profit margin. Gross profit margin increased to 13.7% in the current quarter vs. 12.1% last year primarily due to rate increases on contractual business. Personnel costs increased as the total branch count grew to 30 compared to 24 at the end of the comparable period last year. ICS’s carrier base increased nearly 16% and employee count increased 21% compared to first quarter 2014.
Truck (JBT)
- First Quarter 2015 Segment Revenue:
$91 million ; down 1% - First Quarter 2015 Operating Income:
$8.5 million ; up 248%
JBT revenue decreased 1% from the same quarter 2014. Revenue excluding fuel surcharge increased 6%. Increased truck count, better asset utilization, improved freight lane networks and core customer rate increases of approximately 9% contributed to the improved revenue, excluding fuel surcharge. At the end of the current quarter JBT operated 2,020 tractors compared to 1,917 in 2014.
Operating income for the current quarter increased by 248% compared to the same quarter of 2014. Benefits from increased rate per loaded mile, rapidly declining fuel prices, lower equipment maintenance costs, lower insurance and claims costs and improved asset utilization were partially offset by increased equipment depreciation costs, driver and independent contractor cost per mile and higher driver recruiting costs compared to first quarter 2014.
Cash Flow and Capitalization:
At
Our net capital expenditures for the first quarter 2015 approximated
We purchased approximately 79,500 shares of our common stock during the quarter for approximately
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
Condensed Consolidated Statements of Earnings | |||||||||
(in thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended |
|||||||||
2015 | 2014 | ||||||||
% Of | % Of | ||||||||
Amount | Revenue | Amount | Revenue | ||||||
Operating revenues, excluding fuel surcharge revenues | $ | 1,263,910 | $ | 1,152,349 | |||||
Fuel surcharge revenues | 176,270 | 254,559 | |||||||
Total operating revenues | 1,440,180 | 100.0% | 1,406,908 | 100.0% | |||||
Operating expenses | |||||||||
Rents and purchased transportation | 693,685 | 48.2% | 705,414 | 50.1% | |||||
Salaries, wages and employee benefits | 330,510 | 22.9% | 304,394 | 21.6% | |||||
Fuel and fuel taxes | 81,813 | 5.7% | 119,950 | 8.5% | |||||
Depreciation and amortization | 81,378 | 5.7% | 68,967 | 4.9% | |||||
Operating supplies and expenses | 50,481 | 3.4% | 50,788 | 3.6% | |||||
Insurance and claims | 17,428 | 1.2% | 15,832 | 1.1% | |||||
General and administrative expenses, net of asset dispositions | 13,933 | 1.0% | 9,925 | 0.7% | |||||
Operating taxes and licenses | 10,088 | 0.7% | 8,973 | 0.7% | |||||
Communication and utilities | 5,644 | 0.4% | 5,358 | 0.5% | |||||
Total operating expenses | 1,284,960 | 89.2% | 1,289,601 | 91.7% | |||||
Operating income | 155,220 | 10.8% | 117,307 | 8.3% | |||||
Net interest expense | 6,703 | 0.5% | 6,380 | 0.4% | |||||
Earnings before income taxes | 148,518 | 10.3% | 110,927 | 7.9% | |||||
Income taxes | 56,585 | 3.9% | 42,263 | 3.0% | |||||
Net earnings | $ | 91,932 | 6.4% | $ | 68,664 | 4.9% | |||
Average diluted shares outstanding | 117,800 | 118,943 | |||||||
Diluted earnings per share | $ | 0.78 | $ | 0.58 |
Financial Information By Segment | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
Three Months Ended |
|||||||||
2015 | 2014 | ||||||||
% Of | % Of | ||||||||
Amount | Total | Amount | Total | ||||||
Revenue |
|||||||||
Intermodal | $ | 843,889 | 59% | $ | 835,495 | 59% | |||
Dedicated | 345,189 | 24% | 322,042 | 23% | |||||
Integrated Capacity Solutions | 163,212 | 11% | 162,630 | 11% | |||||
Truck | 91,189 | 6% | 92,470 | 7% | |||||
Subtotal | 1,443,479 | 100% | 1,412,637 | 100% | |||||
Intersegment eliminations | (3,299) | (0%) | (5,729) | (0%) | |||||
Consolidated revenue | $ | 1,440,180 | 100% | $ | 1,406,908 | 100% | |||
Operating income |
|||||||||
Intermodal | $ | 104,262 | 68% | $ | 93,171 | 80% | |||
Dedicated | 35,815 | 23% | 15,600 | 13% | |||||
Integrated Capacity Solutions | 6,628 | 4% | 6,125 | 5% | |||||
Truck | 8,529 | 5% | 2,448 | 2% | |||||
Other (1) | (14) | (0%) | (37) | (0%) | |||||
Operating income | $ | 155,220 | 100% | $ | 117,307 | 100% | |||
(1) Includes corporate support activity |
Operating Statistics by Segment | |||||||
(unaudited) | |||||||
Three Months Ended |
|||||||
2015 | 2014 | ||||||
Intermodal |
|||||||
Loads | 410,297 | 385,986 | |||||
Average length of haul | 1,643 | 1,669 | |||||
Revenue per load | $ | 2,057 | $ | 2,165 | |||
Average tractors during the period * | 4,816 | 4,250 | |||||
Tractors (end of period) | |||||||
Company-owned | 4,128 | 3,694 | |||||
Independent contractor | 776 | 644 | |||||
Total tractors | 4,904 | 4,338 | |||||
Net change in trailing equipment during the period | 895 | 1,585 | |||||
Trailing equipment (end of period) | 74,193 | 67,564 | |||||
Average effective trailing equipment usage | 68,692 | 65,201 | |||||
Dedicated |
|||||||
Loads | 530,762 | 486,671 | |||||
Average length of haul | 175 | 180 | |||||
Revenue per truck per week** | $ | 3,966 | $ | 3,913 | |||
Average trucks during the period*** | 6,854 | 6,491 | |||||
Trucks (end of period) | |||||||
Company-owned | 6,422 | 5,995 | |||||
Independent contractor | 7 | 6 | |||||
Customer-owned (Dedicated operated) | 416 | 508 | |||||
Total trucks | 6,845 | 6,509 | |||||
Trailing equipment (end of period) | 20,819 | 19,188 | |||||
Average effective trailing equipment usage | 22,276 | 20,345 | |||||
Integrated Capacity Solutions |
|||||||
Loads | 120,962 | 103,083 | |||||
Revenue per load | $ | 1,349 | $ | 1,578 | |||
Gross profit margin | 13.7% | 12.1% | |||||
Employee count (end of period) | 605 | 499 | |||||
Approximate number of third-party carriers (end of period) | 40,441 | 35,000 | |||||
Truck |
|||||||
Loads | 86,243 | 89,998 | |||||
Average length of haul | 450 | 408 | |||||
Loaded miles (000) | 38,635 | 36,995 | |||||
Total miles (000) | 45,454 | 43,472 | |||||
Average nonpaid empty miles per load | 74.7 | 68.1 | |||||
Revenue per tractor per week** | $ | 3,703 | $ | 3,856 | |||
1,944 | 1,892 | ||||||
Tractors (end of period) | |||||||
Company-owned | 1,462 | 1,245 | |||||
Independent contractor | 558 | 672 | |||||
Total tractors | 2,020 | 1,917 | |||||
Trailers (end of period) | 7,182 | 6,793 | |||||
Average effective trailing equipment usage | 6,024 | 5,831 | |||||
* Includes company-owned and independent contractor tractors | |||||||
** Using weighted workdays | |||||||
*** Includes company-owned, independent contractor, and customer-owned trucks |
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,646 | $ | 5,961 | |||
Accounts Receivable | 631,172 | 653,795 | |||||
Prepaid expenses and other | 148,063 | 201,743 | |||||
Deferred income taxes | 18,631 | 18,631 | |||||
Total current assets | 803,512 | 880,130 | |||||
Property and equipment | 3,801,192 | 3,719,757 | |||||
Less accumulated depreciation | 1,248,329 | 1,237,225 | |||||
Net property and equipment | 2,552,863 | 2,482,532 | |||||
Other assets | 72,622 | 34,455 | |||||
$ | 3,428,997 </td> | $ | 3,397,117 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current debt | $ | 250,000 | $ | 250,000 | |||
Trade accounts payable | 328,111 | 325,838 | |||||
Claims accruals | 99,196 | 96,719 | |||||
Accrued payroll | 72,106 | 80,547 | |||||
Other accrued expenses | 12,918 | 17,966 | |||||
Total current liabilities | 762,331 | 771,070 | |||||
Long-term debt | 628,203 | 683,539 | |||||
Other long-term liabilities | 60,565 | 59,561 | |||||
Deferred income taxes | 700,518 | 678,424 | |||||
Stockholders' equity | 1,277,380 | 1,204,523 | |||||
$ | 3,428,997 | $ | 3,397,117 |
Supplemental Data | |||||||
(unaudited) | |||||||
Actual shares outstanding at end of period (000) | 116,556 | 116,575 | |||||
Book value per actual share outstanding at end of period | $ | 10.96 | $ | 10.33 | |||
Three Months Ended |
|||||||
2014 | |||||||
Net cash provided by operating activities (000) | $ | 255,543 | $ | 159,045 | |||
Net capital expenditures (000) | $ | 160,373 | $ | 158,212 |
Executive Vice President, Finance/Administration
Source:
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