Werner Enterprises, Inc. operates as a transportation and logistics company. The company engages primarily in hauling truckload shipments of general commodities in both interstate and intrastate commerce. Segments The company has two segments, Truckload Transportation Services (Truckload) and Value Added Services (VAS). The Truckload segment comprises the One-Way Truckload and Specialized Services units. One-Way Truckload includes the following operating fleets: the regional short-haul (Regional) fleet transports various consumer nondurable products and other commodities in truckload quantities within geographic regions across the United States using dry van trailers; the medium-to-long-haul van (Van) fleet provides comparable truckload van service over irregular routes; and the expedited (Expedited) fleet provides time-sensitive truckload services utilizing driver teams. Specialized Services provides truckload services dedicated to a specific customer, for a retail distribution center or manufacturing facility, including services for products requiring specialized trailers such as flatbed or temperature-controlled trailers. The Truckload fleets operate throughout the 48 contiguous U.S. states pursuant to operating authority, both common and contract, granted by the U.S. Department of Transportation (DOT) and pursuant to intrastate authority granted by various U.S. states. The company also has authority to operate in several provinces of Canada and to provide through-trailer service into and out of Mexico. The principal types of freight the company transports include retail store merchandise, consumer products, grocery products, and manufactured products. The VAS segment is a non-asset-based transportation and logistics provider. This segment comprises the following four operating units that provide non-trucking services to its customers: truck brokerage (Brokerage) uses contracted carriers to complete customer shipments; freight management (Freight Management) offers a range of single-source logistics management services and solutions; the intermodal (Intermodal) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; and Werner Global Logistics international (WGL) provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes. The company’s Brokerage unit had transportation services contracts with approximately 11,000 carriers, as of December 31, 2013. Marketing and Operations The Truckload segment provides specialized services to customers based on each customer’s trailer needs, such as van, flatbed and temperature-controlled trailers; geographic area, including regional and medium-to-long-haul van transporting throughout Mexico and Canada; time-sensitive shipments or conversion of their private fleet to the company. The VAS segment manages the transportation and logistics requirements for customers, providing customers with additional sources of truck capacity, alternative modes of transportation, a global delivery network and systems analysis to optimize transportation needs. The VAS international services are provided through domestic and global subsidiary companies and include ocean, air and ground transportation services, door-to-door freight forwarding, and customs brokerage. VAS international services are provided throughout North America, Asia and Australia, with additional coverage throughout Europe, South America and Africa. Revenue Equipment As of December 31, 2013, the company operated 6,380 company tractors and had contracts for 670 tractors owned by independent contractors in Truckload segment. The VAS segment operated an additional 49 company tractors. The company operated 23,705 trailers, as of December 31, 2013, comprising 22,473 dry vans; 211 flatbeds; 1,014 temperature-controlled trailers; and 7 specialized trailers. As of December 31, 2013, nearly all of its dry van trailer fleet consisted of 53-foot trailers comprising aluminum plate or composite (DuraPlate) trailers. The company also provides other trailer lengths, such as 48-foot and 57-foot trailers, to meet the specialized needs of certain customers. The company’s wholly-owned subsidiary, Fleet Truck Sales, sells used trucks and trailers. Seasonality After the December holiday season and during the remaining winter months, the company’s freight volumes are typically lower because some customers reduce shipment levels. The company’s operating expenses have been higher in the winter months due to decreased fuel efficiency, increased cold weather-related maintenance costs of revenue equipment, and increased insurance and claims costs attributed to adverse winter weather conditions. Regulations The company is a motor carrier regulated by the DOT in the United States and similar governmental transportation agencies in foreign countries in which the company operates. The company’s operations are subject to various federal, state, and local environmental laws and regulations, majority of which are implemented by the U.S. Environmental Protection Agency and similar state regulatory agencies. History Werner Enterprises, Inc. was founded in 1956. The company was incorporated in the state of Nebraska in 1982.
werner enterprises inc (WERN:NASDAQ GS)
14507 Frontier Road
Post Office Box 45308
Omaha, NE 68145
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