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J. B. Hunt Transport Services, Inc. Reports Record Revenues, Record Net Earnings and Record Earnings Per Share for Both the

  J. B. Hunt Transport Services, Inc. Reports Record Revenues, Record Net
  Earnings and Record Earnings Per Share for Both the Fourth Quarter and Year
  Ended December 31, 2012

  *Fourth quarter 2012 Revenue: $1.34 billion; up 11%
  *Fourth quarter 2012 Operating Income: $143.3 million; up 17%
  *Fourth quarter 2012 EPS: 70 cents vs. 61 cents; up 15%

  *Full Year 2012 Revenue: $5.1 billion; up 12%
  *Full Year 2012 Operating Income: $530.2 million; up 19%
  *Full Year 2012 EPS: $2.59 vs. $2.11; up 23%

Business Wire

LOWELL, Ark. -- January 24, 2013

J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced record fourth
quarter 2012 net earnings of $84 million, or diluted earnings per share of 70
cents vs. fourth quarter 2011 net earnings of $72.6 million, or 61 cents per
diluted share. Fourth quarter 2011 results included $3.9 million of pretax
expense related to severance agreements for executive retirees and a
charitable contribution, which reduced net earnings by 2 cents per diluted
share.

Total operating revenue for the current quarter was $1.34 billion, compared
with $1.2 billion for the fourth quarter 2011. Load growth of 11% in
Intermodal (JBI) helped drive a 13% increase in segment revenue. Dedicated
Contract Services (DCS) segment revenue increased by 9% primarily from the
addition of new accounts. Integrated Capacity Solutions (ICS) segment revenue
increased by 30% mostly from a 47% increase in load volume. Truck (JBT)
segment revenue decreased 12% primarily from a 19% reduction in fleet size
compared to a year ago. Current quarter total operating revenue, excluding
fuel surcharges, increased approximately 10% vs. the comparable quarter 2011.

Operating income for the current quarter increased to $143.3 million vs.
$122.3 million for the fourth quarter 2011. The increase is primarily from the
higher revenue on greater load volumes and improved network balance in JBI,
new incremental customer accounts in DCS, and greater load volumes and better
gross margins in ICS. These improvements were partially offset by increased
costs across almost all cost categories. Cost controls allowed for operating
income to grow at a faster pace than revenues, improving overall margin.

Net earnings rose 16% to $84.0 million in the current quarter from $72.6
million in 2011, primarily due to the growth in revenue, effective cost
controls and a lower cost of borrowing. Compared with the same period 2011,
net interest expense in the current quarter was down $1 million, primarily due
to a reduction in our average interest rate. The annual and fourth quarter
effective tax rates in 2012 were 38.5% and 39.16%, respectively. The annual
and fourth quarter effective tax rates in 2011 were 38.18% and 37.5%,
respectively.

Segment Information:

Intermodal (JBI)

  *Fourth quarter 2012 Segment Revenue: $821 million; up 13%
  *Fourth quarter 2012 Operating Income: $104.2 million; up 24%

JBI revenue for the period grew 13% on volumes that increased 11% over the
fourth quarter 2011. Eastern network loads increased 15% and transcontinental
growth showed a 9% improvement during the quarter. Eastern network load growth
moderated from a year ago due to a combination of factors including Hurricane
Sandy, the closing of some rail service lanes and the loss of some incumbent
business. Revenue per load, the combination of traffic mix, customer rate
increases and changes in fuel surcharge revenue, increased 1.9% from the same
period in 2011.

Operating income for the quarter grew 24%. Fourth quarter 2011 results include
an approximate $2.8 million expense due to severance and charitable
commitments. Improved network balance yielded positive results in container
utilization, dray fleet utilization and a lower percentage of empty reposition
moves. Cost increases in both rail and dray purchased transportation, driver
wages and insurance and claims partially offset the improvements in
productivity. The current period ended with approximately 59,000 units of
trailing capacity and approximately 3,600 power units in the dray fleet.

Dedicated Contract Services (DCS)

  *Fourth quarter 2012 Segment Revenue: $284 million; up 9%

  *Fourth quarter 2012 Operating Income: $29.4 million; up 7%

DCS revenue increased 9% during the current quarter vs. 2011, while revenue,
excluding fuel surcharges, increased 8%. The increase in revenue primarily
resulted from 335 net additional revenue producing trucks, mostly due to
converting customers’ private fleets. Productivity (revenue per truck per
week) was up 1% compared with the fourth quarter 2011.

Operating income increased 7% vs. same quarter 2011. Fourth quarter 2011
results include an approximate $0.6 million expense due to severance and
charitable commitments. The increase in operating income is primarily related
to a higher truck count and improved productivity, but was partially offset by
increases in insurance and claims expense, driver wages and employee health
insurance expense.

Integrated Capacity Solutions (ICS)

  *Fourth Quarter 2012 Segment Revenue: $129 million; up 30%
  *Fourth Quarter 2012 Operating Income: $4.6 million; up 13%

ICS revenue increased 30% in the current quarter vs. the fourth quarter 2011
mostly due to a 47% increase in load volume. Volumes grew faster than revenue
primarily due to a change in freight mix driven by customer demand. Both
contractual and transactional business realized volume increases, however
contractual business continues to grow at a faster pace. Contractual business
comprised approximately 67% of the total load volume in the current quarter
vs. 59% a year ago.

Operating income increased 13% over the same period in 2011. Fourth quarter
2011 results include an approximate $0.2 million expense for severance and
charitable commitments. Gross profit margin increased slightly to 14.1% in the
current period from 13.9% last year. Positive results from increased and
steady load growth at higher margins and improved productivity of a more
experienced workforce were partially offset with cost increases for additional
headcount, branch network expansion and a single large claim settlement. ICS’s
carrier base increased 12% and the employee count increased 18% from a year
ago.

Truck (JBT)

  *Fourth quarter 2012 Segment Revenue: $113 million; down 12%

  *Fourth quarter 2012 Operating Income: $ 5.2 million; down 27%

JBT revenue for the current quarter decreased 12% from the same period in 2011
on an approximate 19% reduction in fleet size. Revenue, excluding fuel
surcharges, decreased 12% from the comparable 2011 period. Rates per mile,
excluding fuel surcharges, increased 8.9% overall due largely to Hurricane
Sandy relief efforts during the quarter. Rates from consistent shippers
improved 1.6% from a year ago. At the end of the period, JBT’s tractor count
was 2,093 compared to 2,585 in the fourth quarter 2011.

Operating income for the current quarter decreased 27% compared to the same
quarter of 2011. Fourth quarter 2011 results included an approximate $0.3
million expense for severance and charitable commitments. Short term pricing
improvements were offset by a lower truck count, reduced utilization,
increased driver and independent contractor pay and fewer gains on the sale of
equipment compared to the same period 2011.

Cash Flow and Capitalization:

At December 31, 2012, we had total debt outstanding of $685 million on various
debt instruments compared to $749 million at December 31, 2011 and $645
million at September 30, 2012.

Our net capital expenditures for 2012 approximated $370 million vs. $446
million in 2011. The decrease in capital expenditures was primarily due to
purchasing fewer containers and chassis for JBI and trading fewer tractors
across all business units. At December 31, 2012, we had cash and cash
equivalents of $5.6 million.

In the fourth quarter 2012, we used $50 million to purchase approximately
849,000 shares of our common stock. At December 31, 2012, we had approximately
$453 million remaining under our share repurchase authorizations.

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 December 31
                               2012                      2011
                                             % Of                      % Of
                               Amount      Revenue     Amount      Revenue
                                                                       
Operating revenues,
excluding fuel surcharge     $ 1,067,194               $ 974,009
revenues
Fuel surcharge revenues        270,942                   230,928
Total operating revenues       1,338,136     100.0 %     1,204,937     100.0 %
                                                                       
Operating expenses
Rents and purchased            666,745       49.8  %     579,910       48.1  %
transportation
Salaries, wages and            270,706       20.2  %     258,483       21.5  %
employee benefits
Fuel and fuel taxes            117,542       8.8   %     116,567       9.7   %
Depreciation and               59,046        4.4   %     55,632        4.6   %
amortization
Operating supplies and         44,978        3.4   %     39,636        3.3   %
expenses
Insurance and claims           16,447        1.2   %     12,399        1.0   %
General and
administrative expenses,       7,513         0.6   %     8,386         0.7   %
net of asset
dispositions
Operating taxes and            7,545         0.6   %     7,246         0.6   %
licenses
Communication and              4,279         0.3   %     4,391         0.4   %
utilities
Total operating expenses       1,194,801     89.3  %     1,082,650     89.9  %
Operating income               143,335       10.7  %     122,287       10.1  %
Net interest expense           5,296         0.4   %     6,214         0.5   %
Earnings before income         138,039       10.3  %     116,073       9.6   %
taxes
Income taxes                   54,062        4.0   %     43,508        3.6   %
Net earnings                 $ 83,977        6.3   %   $ 72,565        6.0   %
Average diluted shares         120,019                   119,363
outstanding
Diluted earnings per         $ 0.70                    $ 0.61
share


J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
                                                                
                               Twelve Months Ended December 31
                               2012                      2011
                                             % Of                      % Of
                               Amount      Revenue     Amount      Revenue
                                                                       
Operating revenues,
excluding fuel surcharge     $ 4,058,165               $ 3,677,679
revenues
Fuel surcharge revenues        996,815                   849,163
Total operating revenues       5,054,980     100.0%      4,526,842     100.0%
                                                                       
Operating expenses
Rents and purchased            2,485,635     49.2%       2,122,811     46.9%
transportation
Salaries, wages and            1,037,526     20.5%       1,001,953     22.1%
employee benefits
Fuel and fuel taxes            465,874       9.2%        463,597       10.2%
Depreciation and               229,166       4.5%        213,943       4.7%
amortization
Operating supplies and         178,610       3.5%        160,425       3.6%
expenses
Insurance and claims           53,832        1.1%        44,929        1.0%
General and administrative
expenses, net of asset         27,231        0.6%        28,900        0.7%
dispositions
Operating taxes and            29,461        0.6%        27,871        0.6%
licenses
Communication and              17,445        0.3%        18,180        0.4%
utilities
Total operating expenses       4,524,780     89.5%       4,082,609     90.2%
Operating income               530,200       10.5%       444,233       9.8%
Net interest expense           25,559        0.5%        28,500        0.6%
Earnings before income         504,641       10.0%       415,733       9.2%
taxes
Income taxes                   194,287       3.9%        158,727       3.5%
Net earnings                 $ 310,354       6.1%      $ 257,006       5.7%
Average diluted shares         120,022                   121,922
outstanding
Diluted earnings per share   $ 2.59                    $ 2.11
                                                           


Financial Information By Segment
(in thousands)
(unaudited)
                                                                 
                                                                        
                             Three Months Ended December 31
                             2012                       2011
                                             % Of                       % Of
                             Amount        Total      Amount        Total
                                                                        
Revenue
                                                                        
Intermodal                 $ 821,208         61  %    $ 728,795         60  %
Dedicated                    283,722         21  %      260,019         22  %
Integrated Capacity          128,517         10  %      98,881          8   %
Solutions
Truck                        112,722        9   %      127,928        11  %
Subtotal                     1,346,169       101 %      1,215,623       101 %
Intersegment                 (8,033    )     (1  %)     (10,686   )     (1  %)
eliminations
Consolidated revenue       $ 1,338,136      100 %    $ 1,204,937      100 %
                                                                        
                                                                        
Operating income
                                                                        
Intermodal                 $ 104,223         73  %    $ 83,882          69  %
Dedicated                    29,396          20  %      27,356          22  %
Integrated Capacity          4,614           3   %      4,072           3   %
Solutions
Truck                        5,150           4   %      7,076           6   %
Other (1)                    (48       )     (0  %)     (99       )     (0  %)
Operating income           $ 143,335        100 %    $ 122,287        100 %
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                             Twelve Months Ended December 31
                             2012                       2011
                                             % Of                       % Of
                             Amount        Total      Amount        Total
Revenue
                                                                        
Intermodal                 $ 3,071,127       61  %    $ 2,672,955       59  %
Dedicated                    1,079,508       21  %      1,031,393       23  %
Integrated Capacity          456,331         9   %      355,817         8   %
Solutions
Truck                        483,757        10  %      504,132        11  %
Subtotal                     5,090,723       101 %      4,564,297       101 %
Intersegment                 (35,743   )     (1  %)     (37,455   )     (1  %)
eliminations
Consolidated revenue       $ 5,054,980      100 %    $ 4,526,842      100 %
                                                                        
                                                                        
Operating income
                                                                        
Intermodal                 $ 374,965         71  %    $ 301,439         68  %
Dedicated                    116,335         22  %      103,087         23  %
Integrated Capacity          16,130          3   %      13,109          3   %
Solutions
Truck                        22,880          4   %      26,670          6   %
Other (1)                    (110      )     (0  %)     (72       )     (0  %)
Operating income           $ 530,200        100 %    $ 444,233        100 %
                                                                        
                                                                        
(1) Includes corporate support activity


Operating Statistics by Segment
(unaudited)
                                                              
                                                Three Months Ended December 31
                                                2012                2011    
                                                                     
Intermodal
                                                                     
Loads                                           368,022              333,000
Average length of haul                          1,720                1,726
Revenue per load                              $ 2,231              $ 2,189
Average tractors during the period *            3,582                3,109
                                                                     
Tractors (end of period)
Company-owned                                   3,124                2,901
Independent contractor                          472                 213     
Total tractors                                  3,596                3,114
                                                                     
Net change in trailing equipment during the     1,049                2,584
period
Trailing equipment (end of period)              58,962               54,506
Average effective trailing equipment usage      56,473               52,540
                                                                     
                                                                     
Dedicated
                                                                     
Loads                                           407,801              354,711
Average length of haul                          196                  210
Revenue per truck per week**                  $ 4,220              $ 4,172
Average trucks during the period***             5,294                4,915
                                                                     
Trucks (end of period)
Company-owned                                   4,844                4,571
Independent contractor                          15                   17
Customer-owned (Dedicated operated)             394                 330     
Total trucks                                    5,253                4,918
                                                                     
Trailing equipment (end of period)              13,448               11,211
Average effective trailing equipment usage      14,884               12,472
                                                                     
                                                                     
Integrated Capacity Solutions
                                                                     
Loads                                           94,315               64,267
Revenue per load                              $ 1,363              $ 1,539
Gross profit margin                             14.1     %           13.9    %
Employee count (end of period)                  453                  384
Approximate number of third-party carriers      32,300               28,800
(end of period)
                                                                     
                                                                     
Truck
                                                                     
Loads                                           104,694              113,893
Average length of haul                          452                  506
Loaded miles (000)                              46,690               56,698
Total miles (000)                               55,288               65,287
Average nonpaid empty miles per load            81.6                 73.9
Revenue per tractor per week**                $ 3,968              $ 3,960
Average tractors during the period *            2,258                2,597
                                                                     
Tractors (end of period)
Company-owned                                   1,192                1,637
Independent contractor                          901                 948     
Total tractors                                  2,093                2,585
                                                                     
Trailers (end of period)                        8,954                9,302
Average effective trailing equipment usage      7,724                8,124
                                                                     
                                                                     
* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks


Operating Statistics by Segment
(unaudited)
                                                            
                                               Twelve Months Ended December 31
                                               2012               2011      
                                                                   
Intermodal
                                                                   
Loads                                          1,415,663           1,248,302
Average length of haul                         1,702               1,726
Revenue per load                             $ 2,169             $ 2,141
Average tractors during the period *           3,417               2,924
                                                                   
Tractors (end of period)
Company-owned                                  3,124               2,901
Independent contractor                         472                213       
Total tractors                                 3,596               3,114
                                                                   
Net change in trailing equipment during        4,456               8,840
the period
Trailing equipment (end of period)             58,962              54,506
Average effective trailing equipment usage     54,302              49,482
                                                                   
                                                                   
Dedicated
                                                                   
Loads                                          1,522,740           1,444,518
Average length of haul                         201                 205
Revenue per truck per week**                 $ 4,164             $ 4,175
Average trucks during the period***            5,057               4,811
                                                                   
Trucks (end of period)
Company-owned                                  4,844               4,571
Independent contractor                         15                  17
Customer-owned (Dedicated operated)            394                330       
Total trucks                                   5,253               4,918
                                                                   
Trailing equipment (end of period)             13,448              11,211
Average effective trailing equipment usage     13,932              12,711
                                                                   
                                                                   
Integrated Capacity Solutions
                                                                   
Loads                                          326,574             253,344
Revenue per load                             $ 1,397             $ 1,404
Gross profit margin                            13.0      %         13.5      %
Employee count (end of period)                 453                 384
Approximate number of third-party carriers     32,300              28,800
(end of period)
                                                                   
                                                                   
Truck
                                                                   
Loads                                          449,366             444,851
Average length of haul                         467                 514
Loaded miles (000)                             207,677             225,997
Total miles (000)                              242,311             259,144
Average nonpaid empty miles per load           77.1                72.7
Revenue per tractor per week**               $ 3,891             $ 3,869
Average tractors during the period*            2,435               2,557
                                                                   
Tractors (end of period)
Company-owned                                  1,192               1,637
Independent contractor                         901                948       
Total tractors                                 2,093               2,585
                                                                   
Trailers (end of period)                       8,954               9,302
Average effective trailing equipment usage     7,985               8,089
                                                                   
                                                                   
* 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)
                                                             
                                December 31, 2012     December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents        $ 5,589                   $ 5,450
Accounts Receivable                466,011                   411,479
Prepaid expenses and other       82,932                96,613
Total current assets             554,532               513,542
Property and equipment             2,904,706                 2,658,143
Less accumulated depreciation    1,019,232             931,273
Net property and equipment       1,885,474             1,726,870
Other assets                     24,635                26,920
                               $ 2,464,641            $ 2,267,332
                                                             
                                                             
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Current debt                     $ 100,000                 $ 50,000
Trade accounts payable             266,722                   251,625
Claims accruals                    47,442                    42,364
Accrued payroll                    70,647                    77,107
Other accrued expenses             17,199                    17,419
Deferred income taxes            750                   -
Total current liabilities        502,760               438,515
                                                             
Long-term debt                     585,347                   699,177
Other long-term liabilities        53,050                    45,382
Deferred income taxes              531,624                   516,715
Stockholders' equity             791,860               567,543
                               $ 2,464,641            $ 2,267,332
                                                             
                                                             
                                                             
Supplemental Data
(unaudited)
                                                     
                                December 31, 2012     December 31, 2011
                                                             
Actual shares outstanding at     117,529               116,932
end of period (000)
                                                             
Book value per actual share     $ 6.74                 $ 4.85
outstanding at end of period
                                                             
                                                             
                                                     
                                   Twelve Months Ended December 31
                                   2012                      2011
                                                             
Net cash provided by operating  $ 548,044              $ 635,692
activities (000)
                                                             
Net capital expenditures (000)  $ 369,679              $ 445,869

Contact:

J.B. Hunt Transport Services, Inc.
David G. Mee, 479-820-8363
Executive Vice President,
Finance/Administration
and Chief Financial Officer
 
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