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, 2013

  *Fourth quarter 2013 Revenue: $1.47 billion; up 10%
  *Fourth quarter 2013 Operating Income: $153.5 million; up 7%
  *Fourth quarter 2013 EPS: 77 cents vs. 70 cents; up 10%
  *Full Year 2013 Revenue: $5.6 billion; up 10%
  *Full Year 2013 Operating Income: $576.7 million; up 9%
  *Full Year 2013 EPS: $2.87 vs. $2.59; up 11%

Business Wire

LOWELL, Ark. -- January 23, 2014

J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced record fourth
quarter 2013 net earnings of $92 million, or diluted earnings per share of 77
cents vs. fourth quarter 2012 net earnings of $84 million, or 70 cents per
diluted share.

Total operating revenue for the current quarter was $1.47 billion, compared
with $1.34 billion for the fourth quarter 2012. Load growth of 13% in
Intermodal (JBI) helped drive an 11% increase in segment revenue. Dedicated
Contract Services (DCS) segment revenue increased by 17%, primarily from the
addition of new customer accounts. Integrated Capacity Solutions (ICS) segment
revenue increased by 13%, mostly from a higher load count and an increase in
revenue per load. Truck (JBT) segment revenue decreased 19%, primarily from an
11% reduction in fleet size compared to a year ago. Current quarter total
operating revenue, excluding fuel surcharges, increased 13% vs. the comparable
quarter 2012.

Operating income for the current quarter increased to $153.5 million vs.
$143.3 million for the fourth quarter 2012. The increase primarily reflects
higher revenue on greater load volumes and improved network balance in JBI.
These improvements were partially offset by increased costs paid to hire and
retain drivers; higher workers’ compensation and accident costs; increased
costs to third party carriers, fewer gains on equipment sales and lower truck
utilization.

Net earnings rose 9% to $92 million in the current quarter from $84 million in
2012, primarily due to the growth in revenue and a lower cost of borrowing.
Compared with the same period 2012, net interest expense in the current
quarter was down approximately $500,000 on a higher average debt balance due
to a reduction in our average interest rate. The annual and fourth quarter
effective tax rates in 2013 were 38.15% and 38.23%. The annual and fourth
quarter effective tax rates in 2012 were 38.5% and 39.16%, respectively.

Segment Information:

Intermodal (JBI)

  *Fourth quarter 2013 Segment Revenue: $915 million; up 11%
  *Fourth quarter 2013 Operating Income: $121.5 million; up 17%

JBI revenue for the period grew 11% on a 13% increase in volume over the
fourth quarter 2013. Eastern network loads increased 17% and transcontinental
loads increased 11% compared to the same quarter 2012. Revenue per load
decreased 1.3% from the same period a year ago due to the combination of
traffic mix, customer rate increases and changes in fuel surcharge revenue;
however, excluding fuel surcharge revenue, revenue per load increased 1.0%
from fourth quarter 2012.

Operating income for the quarter grew 17%. Improved network balance yielded
positive results in container utilization and a lower percentage of empty
reposition moves. Cost increases in rail and dray purchased transportation,
driver recruiting and retention costs and insurance and claims costs partially
offset the improvements in productivity. The current period ended with
approximately 66,000 units of trailing capacity and approximately 4,100 power
units in the dray fleet.

Dedicated Contract Services (DCS)

  *Fourth quarter 2013 Segment Revenue: $331 million; up 17%

  *Fourth quarter 2013 Operating Income: $29.5 million; up 0.5%

DCS revenue increased 17% during the current quarter vs. 2012. The increase in
revenue primarily resulted from 1,154 net additional revenue producing trucks,
mostly due to converting customers’ private fleets. Productivity (revenue per
truck per week) was virtually flat compared with the fourth quarter 2012 due
to the higher percentage of customer provided equipment and customer paid fuel
in the DCS book of business.

Operating income was up 0.5% compared to the same quarter 2012. Increases in
operating income from a higher truck count due to new customer accounts was
partially offset by increases in driver wages, employee recruiting costs,
workers’ compensation costs, accident costs and lower gains on sales of
revenue equipment compared to fourth quarter 2012.

Integrated Capacity Solutions (ICS)

  *Fourth Quarter 2013 Segment Revenue: $145 million; up 13%
  *Fourth Quarter 2013 Operating Income: $3.5 million; down 24%

ICS revenue increased 13% in the current quarter vs. the fourth quarter 2012
mostly due to a 5% increase in load volume and a 7% increase in revenue per
load. Revenue grew faster than volume primarily due to a change in freight mix
driven by customer demand. Truckload brokerage volume increased for the
quarter, but was partially offset by a decrease in less-than-truckload
brokered loads compared to the same quarter in 2012. Both contractual and
transactional business realized volume increases, however transactional
business grew at a faster pace. Contractual business comprised approximately
65% of the total load volume in the current quarter vs. 67% a year ago.

Operating income decreased 24% over the same period in 2012. Gross profit
margin decreased to 12.0% in the current period from 14.1% last year. Positive
results from increased load growth at higher revenue per load were offset with
gross margin pressure. Third party carrier rates rose faster than contractual
customer rates. Additionally, in keeping with our growth strategy, we continue
to expand the branch network resulting in increased personnel costs. Total
branches at the end of the period grew to 24 from 15 at the end of the same
period in 2012. ICS’s carrier base increased 7% and the employee count
increased 11% from a year ago.

Truck (JBT)

  *Fourth quarter 2013 Segment Revenue: $91 million; down 19%

  *Fourth quarter 2013 Operating Loss: $ (1.0) million; compared to Operating
    Income of $5.2 million in 2012

JBT revenue for the current quarter decreased 19% from the same period in 2012
due to an 11% reduction in fleet size, lower utilization per truck and lower
rates per mile. Rates per mile, excluding fuel surcharges, decreased 2.7% on a
4.6% shorter average length of haul. Rates per mile in the prior year included
spot rates largely affected by Hurricane Sandy relief efforts. Rates from
consistent shippers decreased 1.0% from a year ago. At the end of the period,
JBT’s tractor count was 1,857 compared to 2,093 in the fourth quarter 2012,
primarily from a reduction in independent contractor capacity.

JBT incurred an operating loss of $1.0 million in the current quarter compared
to operating income of $5.2 million in the same quarter of 2012. Favorable
effects from reducing idle trailing equipment, fewer empty miles per load and
reductions in office headcount were more than offset by a lower truck count,
lower tractor utilization, increased driver and independent contractor pay,
and higher maintenance cost per tractor compared to the same period 2012.

The previously announced personnel and leadership changes are expected to
address and improve tractor utilization, maintenance and customer service
issues that have impacted the profitability of JBT. We expect to demonstrate
operational improvements throughout 2014, but significant financial
improvements will become more apparent in 2015.

Cash Flow and Capitalization:

At December 31, 2013, we had total debt outstanding of $708 million on various
debt instruments compared to $685 million at December 31, 2012 and $687
million at September 30, 2013.

Our net capital expenditures for 2013 approximated $443 million vs. $370
million in 2012. The increase in capital expenditures was primarily due to
purchasing additional containers and chassis for JBI and additional and
replacement tractors across all business units. At December 31, 2013, we had
cash and cash equivalents of $5.8 million.

In the fourth quarter 2013, we used $50 million to purchase approximately
675,000 shares of our common stock. At December 31, 2013, we had approximately
$338 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, 2012. 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
                               2013                      2012
                                             % Of                      % Of
                               Amount      Revenue     Amount      Revenue
                                                                       
Operating revenues,
excluding fuel surcharge     $ 1,202,168             $   1,067,194
revenues
Fuel surcharge revenues        272,108                   270,942
Total operating revenues       1,474,276     100.0 %     1,338,136     100.0 %
                                                                       
Operating expenses
Rents and purchased            742,824       50.4  %     666,745       49.8  %
transportation
Salaries, wages and            302,448       20.5  %     270,706       20.2  %
employee benefits
Fuel and fuel taxes            114,939       7.8   %     117,542       8.8   %
Depreciation and               66,077        4.5   %     59,046        4.4   %
amortization
Operating supplies and         52,782        3.6   %     44,978        3.4   %
expenses
Insurance and claims           16,400        1.1   %     16,447        1.2   %
General and
administrative expenses,       11,884        0.8   %     7,513         0.6   %
net of asset
dispositions
Operating taxes and            8,585         0.6   %     7,545         0.6   %
licenses
Communication and              4,804         0.3   %     4,279         0.3   %
utilities
Total operating expenses       1,320,743     89.6  %     1,194,801     89.3  %
Operating income               153,533       10.4  %     143,335       10.7  %
Net interest expense           4,820         0.3   %     5,296         0.4   %
Earnings before income         148,713       10.1  %     138,039       10.3  %
taxes
Income taxes                   56,849        3.9   %     54,062        4.0   %
Net earnings                 $ 91,864        6.2   % $   83,977        6.3   %
Average diluted shares         118,960                   120,019
outstanding
Diluted earnings per         $ 0.77                  $   0.70
share
                                                                       


J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)

                             Twelve Months Ended December 31
                               2013                     2012
                                           % Of                    % Of
                               Amount      Revenue     Amount      Revenue
                                                                       
Operating revenues,
excluding fuel surcharge     $ 4,527,238               $ 4,058,165
revenues
Fuel surcharge revenues        1,057,333                 996,815
Total operating revenues       5,584,571     100.0 %     5,054,980     100.0 %
                                                                       
Operating expenses
Rents and purchased            2,805,568     50.2  %     2,485,635     49.2  %
transportation
Salaries, wages and            1,138,213     20.4  %     1,037,526     20.5  %
employee benefits
Fuel and fuel taxes            455,926       8.2   %     465,874       9.2   %
Depreciation and               253,380       4.5   %     229,166       4.5   %
amortization
Operating supplies and         202,700       3.6   %     178,610       3.5   %
expenses
Insurance and claims           55,158        1.0   %     53,832        1.1   %
General and
administrative expenses,       45,469        0.8   %     27,231        0.6   %
net of asset
dispositions
Operating taxes and            32,307        0.7   %     29,461        0.6   %
licenses
Communication and              19,142        0.3   %     17,445        0.3   %
utilities
Total operating expenses       5,007,863     89.7  %     4,524,780     89.5  %
Operating income               576,708       10.3  %     530,200       10.5  %
Net interest expense           23,140        0.4   %     25,559        0.5   %
Earnings before income         553,568       9.9   %     504,641       10.0  %
taxes
Income taxes                   211,186       3.8   %     194,287       3.9   %
Net earnings                 $ 342,382       6.1   %   $ 310,354       6.1   %
Average diluted shares         119,404                   120,022
outstanding
Diluted earnings per         $ 2.87                    $ 2.59
share
                                                                       

Financial Information By Segment
(in thousands)
(unaudited)


                           Three Months Ended December 31
                             2013                      2012
                                           % Of                     % Of
                             Amount        Total      Amount        Total
                                                                        
Revenue
                                                                        
Intermodal                 $ 915,071         62  %    $ 821,208         61  %
Dedicated                    330,684         23  %      283,722         21  %
Integrated Capacity          145,293         10  %      128,517         10  %
Solutions
Truck                        91,213         6   %      112,722        9   %
Subtotal                     1,482,261       101 %      1,346,169       101 %
Intersegment                 (7,985    )     (1  %)     (8,033    )     (1  %)
eliminations
Consolidated revenue       $ 1,474,276      100 %    $ 1,338,136      100 %
                                                                        
                                                                        
Operating income
                                                                        
Intermodal                 $ 121,523         79  %    $ 104,223         73  %
Dedicated                    29,532          19  %      29,396          20  %
Integrated Capacity          3,518           3   %      4,614           3   %
Solutions
Truck                        (1,041    )     (1  %)     5,150           4   %
Other (1)                    1              0   %      (48       )     (0  %)
Operating income           $ 153,533        100 %    $ 143,335        100 %
                                                                        
                                                                        
                                                                        
                             Twelve Months Ended December 31
                             2013                       2012
                                             % Of                       % Of
                             Amount        Total      Amount        Total
Revenue
                                                                        
Intermodal                 $ 3,456,164       62  %    $ 3,071,127       61  %
Dedicated                    1,231,342       22  %      1,079,508       21  %
Integrated Capacity          536,844         10  %      456,331         9   %
Solutions
Truck                        391,086        7   %      483,757        10  %
Subtotal                     5,615,436       101 %      5,090,723       101 %
Intersegment                 (30,865   )     (1  %)     (35,743   )     (1  %)
eliminations
Consolidated revenue       $ 5,584,571      100 %    $ 5,054,980      100 %
                                                                        
                                                                        
Operating income
                                                                        
Intermodal                 $ 447,030         77  %    $ 374,965         71  %
Dedicated                    110,438         19  %      116,335         22  %
Integrated Capacity          15,693          3   %      16,130          3   %
Solutions
Truck                        3,658           1   %      22,880          4   %
Other (1)                    (111      )     (0  %)     (110      )     (0  %)
Operating income           $ 576,708        100 %    $ 530,200        100 %
                                                                        
                                                                        
(1) Includes corporate support activity



Operating Statistics by Segment
(unaudited)

                                              Three Months Ended December 31
                                                2013               2012
                                                                     
Intermodal
                                                                     
Loads                                           415,601              368,022
Average length of haul                          1,703                1,720
Revenue per load                              $ 2,202             $  2,231
Average tractors during the period *            4,084                3,582
                                                                     
Tractors (end of period)
Company-owned                                   3,448                3,124
Independent contractor                          646                 472     
Total tractors                                  4,094                3,596
                                                                     
Net change in trailing equipment during         2,059                1,049
the period
Trailing equipment (end of period)              65,979               58,962
Average effective trailing equipment            63,914               56,473
usage
                                                                     
                                                                     
Dedicated
                                                                     
Loads                                           504,738              407,801
Average length of haul                          179                  196
Revenue per truck per week**                  $ 4,198             $  4,220
Average trucks during the period***             6,271                5,294
                                                                     
Trucks (end of period)
Company-owned                                   5,805                4,844
Independent contractor                          10                   15
Customer-owned (Dedicated operated)             592                 394     
Total trucks                                    6,407                5,253
                                                                     
Trailing equipment (end of period)              19,062               13,448
Average effective trailing equipment            20,099               14,884
usage
                                                                     
                                                                     
Integrated Capacity Solutions
                                                                     
Loads                                           99,444               94,315
Revenue per load                              $ 1,461             $  1,363
Gross profit margin                             12.0     %           14.1    %
Employee count (end of period)                  503                  453
Approximate number of third-party               34,600               32,300
carriers (end of period)
                                                                     
                                                                     
Truck
                                                                     
Loads                                           89,663               104,694
Average length of haul                          432                  452
Loaded miles (000)                              38,629               46,690
Total miles (000)                               45,422               55,288
Average nonpaid empty miles per load            80.4                 81.6
Revenue per tractor per week**                $ 3,804             $  3,968
Average tractors during the period *            1,921                2,258
                                                                     
Tractors (end of period)
Company-owned                                   1,200                1,192
Independent contractor                          657                 901     
Total tractors                                  1,857                2,093
                                                                     
Trailers (end of period)                        6,828                8,954
Average effective trailing equipment            6,114                7,724
usage
                                                                     
                                                                     
* 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
                                               2013                2012
                                                                   
Intermodal
                                                                   
Loads                                          1,593,511           1,415,663
Average length of haul                         1,694               1,702
Revenue per load                             $ 2,169             $ 2,169
Average tractors during the period *           3,916               3,417
                                                                   
Tractors (end of period)
Company-owned                                  3,448               3,124
Independent contractor                         646                472       
Total tractors                                 4,094               3,596
                                                                   
Net change in trailing equipment during        7,017               4,456
the period
Trailing equipment (end of period)             65,979              58,962
Average effective trailing equipment           60,612              54,302
usage
                                                                   
                                                                   
Dedicated
                                                                   
Loads                                          1,835,872           1,522,740
Average length of haul                         190                 201
Revenue per truck per week**                 $ 4,109             $ 4,164
Average trucks during the period***            5,865               5,057
                                                                   
Trucks (end of period)
Company-owned                                  5,805               4,844
Independent contractor                         10                  15
Customer-owned (Dedicated operated)            592                394       
Total trucks                                   6,407               5,253
                                                                   
Trailing equipment (end of period)             19,062              13,448
Average effective trailing equipment           19,229              13,932
usage
                                                                   
                                                                   
Integrated Capacity Solutions
                                                                   
Loads                                          388,987             326,574
Revenue per load                             $ 1,380             $ 1,397
Gross profit margin                            11.8       %        13.0      %
Employee count (end of period)                 503                 453
Approximate number of third-party carriers     34,600              32,300
(end of period)
                                                                   
                                                                   
Truck
                                                                   
Loads                                          386,875             449,366
Average length of haul                         431                 467
Loaded miles (000)                             165,543             207,677
Total miles (000)                              194,046             242,311
Average nonpaid empty miles per load           75.4                77.1
Revenue per tractor per week**               $ 3,828             $ 3,891
Average tractors during the period*            2,007               2,435
                                                                   
Tractors (end of period)
Company-owned                                  1,200               1,192
Independent contractor                         657                901       
Total tractors                                 1,857               2,093
                                                                   
Trailers (end of period)                       6,828               8,954
Average effective trailing equipment           6,877               7,985
usage
                                                                   
                                                                   
* 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, 2013    December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents          $ 5,831                 $ 5,589
Accounts Receivable                  568,519                 466,011
Prepaid expenses and other        105,853              82,932
Total current assets              680,203              554,532
Property and equipment               3,259,814               2,904,706
Less accumulated depreciation     1,147,610            1,019,232
Net property and equipment        2,112,204            1,885,474
Other assets                      26,997               24,635
                                $ 2,819,404           $ 2,464,641
                                                             
                                                             
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities:
Current debt                       $ 250,000               $ 100,000
Trade accounts payable               305,465                 266,722
Claims accruals                      68,221                  47,442
Accrued payroll                      72,063                  70,647
Other accrued expenses               14,062                  17,199
Deferred income taxes             2,485                750
Total current liabilities         712,296              502,760
                                                             
Long-term debt                       458,417                 585,347
Other long-term liabilities          58,274                  53,050
Deferred income taxes                577,965                 531,624
Stockholders' equity              1,012,452            791,860
                                $ 2,819,404           $ 2,464,641
                                                             
                                                             
                                                             
Supplemental Data
(unaudited)
                                                     
                                 December 31, 2013    December 31, 2012
                                                             
Actual shares outstanding at      117,241              117,529
end of period (000)
                                                             
Book value per actual share      $ 8.64                $ 6.74
outstanding at end of period
                                                             
                                                             
                                                     
                                     Twelve Months Ended December 31
                                     2013                    2012
                                                             
Net cash provided by operating   $ 574,351             $ 548,044
activities (000)
                                                             
Net capital expenditures (000)   $ 442,504             $ 369,679
                                                             

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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