The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

J.B. Hunt Transport Services, Inc. Reports Record Revenues, Net Earnings and Earnings Per Share for the Fourth Quarter and Year Ended December 31, 2011

<ul> <li class='bwlistitemmargb'> <b>Fourth quarter 2011 Revenue:</b> <b>$1.2 billion; up 18%</b> </li> <li class='bwlistitemmargb'> <b>Fourth quarter 2011 Operating Income:</b> <b>$122 million; up 26%</b> </li> <li class='bwlistitemmargb'> <b>Fourth quarter 2011 EPS:</b> <b>61* cents vs. 46 cents</b> </li> <li class='bwlistitemmargb'> <b>Full Year 2011 Revenue:</b> <b>$4.5 billion; up 19%</b> </li> <li class='bwlistitemmargb'> <b>Full Year 2011 Operating Income:</b> <b>$444 million; up 28%</b> </li> <li class='bwlistitemmargb'> <b>Full Year 2011 EPS:</b> <b>$2.11 vs. $1.56</b> </li> </ul> <p> <b>*4Q 2011 results included $3.9 million of pretax expense (2 cents per diluted share) related to severance agreements for executive retirees and a charitable contribution.</b> </p>

Thursday, January 26, 2012

J.B. Hunt Transport Services, Inc. Reports Record Revenues, Net Earnings and Earnings Per Share for the Fourth Quarter and Year Ended December 31, 201116:00 EST Thursday, January 26, 2012 LOWELL, Ark. (Business Wire) -- J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced fourth quarter 2011 net earnings of $72.6 million, or diluted earnings per share of 61 cents vs. fourth quarter 2010 net earnings of $57.9 million, or 46 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 $1.2 billion, compared with $1.02 billion for the fourth quarter 2010. All four segments contributed to this increase in operating revenue. Load growth of 17% in Intermodal (JBI) helped drive a 24% increase in segment revenue. Our Dedicated Contract Services (DCS) segment increased operating revenue by 9% primarily from new accounts. Our Truck (JBT) and Integrated Capacity Solutions (ICS) segments increased revenue 8% and 19%, respectively, due to higher rates and an increase in fuel surcharges. Current quarter total operating revenue, excluding fuel surcharges, increased 12% vs. the comparable quarter 2010. Operating income for the current quarter increased to $122 million vs. $97 million for the fourth quarter 2010. The increase in operating income is primarily from the higher revenue on greater load volumes, a reduction in insurance and claims costs, and continued improvement in other general cost controls. Again, all four segments contributed to this increase in operating income with JBI and DCS accounting for nearly $22 million of the increase. Net earnings rose 25% to $72.6 million in the current quarter from $57.9 million in 2010, primarily due to the growth in revenue, effective cost controls and a lower cost of borrowing. Compared with the same period 2010, net interest expense in the current quarter was down $2.0 million, primarily due to a reduction in our average interest rate. The effective income tax rate for the current quarter was 37.5% compared with 35.1% in 2010, which included the favorable resolution of uncertain tax positions in the prior year quarter. “We are very pleased to close out the year with record revenues, net earnings and earnings per share in both the fourth quarter and the entire year of 2011. All four segments improved from 2010 in the fourth quarter and full year. During 2011, we began implementing improvements to the approach we take with our larger, more complex customers and we are satisfied so far with the results of these efforts. The primary objective in collaborating with customers is to find new ways to integrate our complementary business segments to drive out cost and create efficiency. We will continue to invest in customer centric services that produce sufficient rates of return and sustainable cycles of cash for further reinvestment and innovation in transportation solutions,” said John N. Roberts, JBHT President and CEO. Segment Information:Intermodal (JBI)Fourth quarter 2011 Segment Revenue:$729 million; up 24%Fourth quarter 2011 Operating Income:$83.9million; up 20% JBI load volume grew 17% during the quarter, compared with 13% growth in the year earlier quarter. Eastern network loads increased 35% and transcontinental growth showed a 9% improvement during the quarter. Overall revenue grew 24% as a result of volume growth, fuel surcharge increases and a 4.6% increase in rates. Operating income for the quarter grew 20%. Peak season volumes were slightly less than anticipated; however, the demand for conversion from highway to rail continued to be strong. Cost increases in both rail and dray purchased transportation, container cost and fuel were offset with customer price increases, fuel surcharges, and a lower percentage of empty repositioning moves. The current period ended with more than 54,500 units of trailing capacity. JBI incurred approximately $2.8 million in expense due to the severance and charitable commitments. Dedicated Contract Services (DCS)Fourth quarter 2011 Segment Revenue:$260 million;up 9%Fourth quarter 2011 Operating Income:$27.4 million; up 40% DCS revenue increased 9% during the current quarter vs. 2010, while revenue, excluding fuel surcharges, increased 5%. The increase in revenue related to an increase in truck count as a result of new contracts awarded. Productivity (revenue per truck per week) was consistent with the fourth quarter 2010. Operating income increased 40% vs. same quarter 2010. The increase in operating income primarily related to reductions in insurance and claims costs, the transfer of assets to more profitable accounts, improved cost controls, and the increase in revenue partly related to a higher truck count. In the current quarter, DCS incurred approximately $0.6 million in expense due to the severance and charitable commitments. Truck (JBT)Fourth quarter 2011 Segment Revenue:$128 million;up 8%Fourth quarter 2011 Operating Income:$7.1 million; up 61% JBT revenue for the current quarter increased 8% with a 4% reduction in average tractors over the same period in 2010. Excluding fuel surcharges, revenue increased 3% versus the same quarter in 2010. Rates per mile, excluding fuel surcharges, increased 4.1% overall due largely to favorable changes in freight mix. Rates from consistent shippers improved by 2.2% year-over-year. At the end of the period, JBT's tractor count was 2,585 compared to 2,588 a year ago. Operating income for the current quarter increased 61% compared to the same quarter of 2010. Lower maintenance costs; improvements in utilization and miles per gallon; better fuel surcharge recovery and an increase in gains on equipment sales were partially offset by increases in driver and independent contractor costs compared to the fourth quarter 2010. JBT incurred $0.3 million in expense related to the severance and charitable commitments. Integrated Capacity Solutions (ICS)Fourth Quarter 2011 Segment Revenue:$99 million; up 19%Fourth Quarter 2011 Operating Income: $4.1 million; up 25% ICS revenue increased 19% in the current quarter vs. the fourth quarter 2010 due to an increase in load volume, higher pricing in both our contractual and transactional business and an increase in the cost of fuel. Gross profit (gross revenue less purchased transportation expense) increased 20% to $13.7 million from fourth quarter 2010. Gross profit margin increased slightly to 13.9% in the current quarter vs. 13.8% last year. The operating leverage gained from a more experienced workforce contributed to the operating income increase compared to the fourth quarter of 2010. Our carrier base increased 13% and our employee count increased 17% vs. fourth quarter 2010. During the current quarter, ICS incurred approximately $0.2 million in expense due to the severance and charitable commitments. Cash Flow and Capitalization: At December 31, 2011, we had a total debt outstanding of $749 million on various debt instruments compared to $654 million at December 31, 2010 and $768 million at September 30, 2011. Our net capital expenditures for the year ended 2011 approximated $446 million vs. $226 million in 2010. The increase in capital expenditures was primarily due to increases in containers and chassis for our intermodal growth. At December 31, 2011, we had cash and cash equivalents of $5.5 million. In 2011, we used $246 million to purchase approximately 6.0 million shares of our common stock. During the current quarter, our Board of Directors authorized a $500 million share repurchase program. At December 31, 2011, we had approximately $503 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, 2010. 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 3120112010% Of% OfAmount   RevenueAmount   Revenue   Operating revenues, excluding fuel surcharge revenues $ 974,009 $ 873,522 Fuel surcharge revenues 230,928   146,490   Total operating revenues 1,204,937 100.0 % 1,020,012 100.0 %   Operating expenses Rents and purchased transportation 579,910 48.1 % 470,252 46.1 % Salaries, wages and employee benefits 258,483 21.5 % 237,176 23.3 % Fuel and fuel taxes 116,567 9.7 % 94,189 9.2 % Depreciation and amortization 55,632 4.6 % 50,094 4.9 % Operating supplies and expenses 39,636 3.3 % 37,987 3.7 % Insurance and claims 12,399 1.0 % 13,538 1.3 % General and administrative expenses, net of asset dispositions 8,386 0.7 % 8,389 0.8 % Operating taxes and licenses 7,246 0.6 % 6,864 0.7 % Communication and utilities 4,391   0.4 % 4,175   0.5 % Total operating expenses 1,082,650   89.9 % 922,664   90.5 % Operating income 122,287 10.1 % 97,348 9.5 % Net interest expense 6,214   0.5 % 8,164   0.8 % Earnings before income taxes 116,073 9.6 % 89,184 8.7 % Income taxes 43,508   3.6 % 31,331   3.0 % Net earnings $ 72,565   6.0 % $ 57,853   5.7 % Average diluted shares outstanding 119,363   125,413   Diluted earnings per share $ 0.61   $ 0.46             J.B. HUNT TRANSPORT SERVICES, INC.Condensed Consolidated Statements of Earnings (in thousands, except per share data) (unaudited)   Twelve Months Ended December 3120112010% Of% OfAmount   RevenueAmount   Revenue   Operating revenues, excluding fuel surcharge revenues $ 3,677,679 $ 3,277,218 Fuel surcharge revenues 849,163   516,267   Total operating revenues 4,526,842 100.0 % 3,793,485 100.0 %   Operating expenses Rents and purchased transportation 2,122,811 46.9 % 1,711,204 45.1 % Salaries, wages and employee benefits 1,001,953 22.1 % 911,028 24.0 % Fuel and fuel taxes 463,597 10.2 % 343,700 9.1 % Depreciation and amortization 213,943 4.7 % 197,062 5.2 % Operating supplies and expenses 160,425 3.6 % 152,500 4.0 % Insurance and claims 44,929 1.0 % 48,280 1.3 % General and administrative expenses, net of asset dispositions 28,900 0.7 % 37,017 1.0 % Operating taxes and licenses 27,871 0.6 % 26,895 0.7 % Communication and utilities 18,180   0.4 % 18,174   0.4 % Total operating expenses 4,082,609   90.2 % 3,445,860   90.8 % Operating income 444,233 9.8 % 347,625 9.2 % Net interest expense 28,500   0.6 % 27,931   0.8 % Earnings before income taxes 415,733 9.2 % 319,694 8.4 % Income taxes 158,727   3.5 % 120,077   3.1 % Net earnings $ 257,006   5.7 % $ 199,617   5.3 % Average diluted shares outstanding 121,922   127,767   Diluted earnings per share $ 2.11   $ 1.56                       Financial Information By Segment (in thousands) (unaudited)     Three Months Ended December 3120112010% Of% OfAmount   TotalAmount   Total   Revenue   Intermodal $ 728,795 60 % $ 588,020 58 % Dedicated 260,019 22 % 237,855 23 % Truck 127,928 11 % 118,048 12 % Integrated Capacity Solutions 98,881   8 % 82,929   8 % Subtotal 1,215,623 101 % 1,026,852 101 % Intersegment eliminations (10,686 ) (1 %) (6,840 ) (1 %) Consolidated revenue $ 1,204,937   100 % $ 1,020,012   100 %     Operating income   Intermodal $ 83,882 69 % $ 69,884 72 % Dedicated 27,356 22 % 19,614 20 % Truck 7,076 6 % 4,397 5 % Integrated Capacity Solutions 4,072 3 % 3,261 3 % Other (1) (99 ) (0 %) 192   0 % Operating income $ 122,287   100 % $ 97,348   100 %           Twelve Months Ended December 3120112010% Of% OfAmount   TotalAmount   TotalRevenue   Intermodal $ 2,672,955 59 % $ 2,141,200 56 % Dedicated 1,031,393 23 % 906,760 24 % Truck 504,132 11 % 479,475 13 % Integrated Capacity Solutions 355,817   8 % 290,914   8 % Subtotal 4,564,297 101 % 3,818,349 101 % Intersegment eliminations (37,455 ) (1 %) (24,864 ) (1 %) Consolidated revenue $ 4,526,842   100 % $ 3,793,485   100 %     Operating income   Intermodal $ 301,439 68 % $ 237,232 68 % Dedicated 103,087 23 % 82,407 24 % Truck 26,670 6 % 18,698 5 % Integrated Capacity Solutions 13,109 3 % 9,275 3 % Other (1) (72 ) (0 %) 13   0 % Operating income $ 444,233   100 % $ 347,625   100 %     (1) Includes corporate support activity               Operating Statistics by Segment (unaudited)             Three Months Ended December 3120112010   Intermodal   Loads 333,000 285,581 Average length of haul 1,726 1,782 Revenue per load $ 2,189 $ 2,059 Average tractors during the period* 3,109 2,665   Tractors (end of period) Company-owned 2,901 2,592 Independent contractor 213   81   Total tractors 3,114 2,673   Net change in trailing equipment during the period 2,584 2,536 Trailing equipment (end of period) 54,506 45,666 Average effective trailing equipment usage 52,540 43,834     Dedicated   Loads 354,711 355,047 Average length of haul 210 197 Revenue per truck per week** $ 4,172 $ 4,076 Average trucks during the period*** 4,915 4,573   Trucks (end of period) Company-owned 4,571 4,259 Independent contractor 17 23 Customer-owned (Dedicated operated) 330   357   Total trucks 4,918 4,639   Trailing equipment (end of period) 11,211 10,688 Average effective trailing equipment usage 12,472 12,323     Truck   Loads 113,893 109,923 Average length of haul 506 530 Loaded miles (000) 56,698 57,451 Total miles (000) 65,287 65,901 Average nonpaid empty miles per load 73.9 74.9 Revenue per tractor per week** $ 3,960 $ 3,445 Average tractors during the period* 2,597 2,707   Tractors (end of period) Company-owned 1,637 1,697 Independent contractor 948   891   Total tractors 2,585 2,588   Trailers (end of period) 9,302 10,115 Average effective trailing equipment usage 8,124 8,739     Integrated Capacity Solutions   Loads 63,997 61,538 Revenue per load $ 1,545 $ 1,348 Gross profit margin 13.9 % 13.8 % Employee count (end of period) 384 329 Approximate number of third-party carriers (end of period) 28,800 25,600     * 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 3120112010   Intermodal   Loads 1,248,302 1,075,027 Average length of haul 1,726 1,777 Revenue per load $ 2,141 $ 1,992 Average tractors during the period* 2,924 2,531   Tractors (end of period) Company-owned 2,901 2,592 Independent contractor 213   81   Total tractors 3,114 2,673   Net change in trailing equipment during the period 8,840 5,496 Trailing equipment (end of period) 54,506 45,666 Average effective trailing equipment usage 49,482 41,434     Dedicated   Loads 1,444,518 1,383,565 Average length of haul 205 197 Revenue per truck per week** $ 4,175 $ 3,956 Average trucks during the period*** 4,811 4,468   Trucks (end of period) Company-owned 4,571 4,259 Independent contractor 17 23 Customer-owned (Dedicated operated) 330   357   Total trucks 4,918 4,639   Trailing equipment (end of period) 11,211 10,688 Average effective trailing equipment usage 12,711 12,297     Truck   Loads 444,851 465,493 Average length of haul 514 522 Loaded miles (000) 225,997 240,088 Total miles (000) 259,144 274,857 Average nonpaid empty miles per load 72.7 68.7 Revenue per tractor per week** $ 3,869 $ 3,370 Average tractors during the period* 2,557 2,788   Tractors (end of period) Company-owned 1,637 1,697 Independent contractor 948   891   Total tractors 2,585 2,588   Trailers (end of period) 9,302 10,115 Average effective trailing equipment usage 8,089 9,329     Integrated Capacity Solutions   Loads 253,575 230,726 Revenue per load $ 1,403 $ 1,261 Gross profit margin 13.5 % 14.2 % Employee count (end of period) 384 329 Approximate number of third-party carriers (end of period) 28,800 25,600     * 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, 2011             December 31, 2010ASSETS Current assets: Cash and cash equivalents $ 5,450 $ 7,651 Accounts Receivable 411,479 351,187 Prepaid expenses and other     96,613                 103,807   Total current assets     513,542                 462,645   Property and equipment 2,658,143 2,338,336 Less accumulated depreciation     931,273                 858,852   Net property and equipment     1,726,870                 1,479,484   Other assets     26,920                 19,531       $ 2,267,332               $ 1,961,660       LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Current debt $ 50,000 $ 200,000 Trade accounts payable 251,625 192,103 Claims accruals 42,364 32,641 Accrued payroll 77,107 57,149 Other accrued expenses 17,419 19,191 Deferred income taxes     -                 8,865   Total current liabilities     438,515                 509,949     Long-term debt 699,177 454,207 Other long-term liabilities 45,382 39,480 Deferred income taxes 516,715 385,003 Stockholders' equity     567,543                 573,021       $ 2,267,332               $ 1,961,660           Supplemental Data (unaudited)         December 31, 2011               December 31, 2010   Actual shares outstanding at end of period (000)     116,932                 121,490     Book value per actual share outstanding at end of period   $ 4.85               $ 4.72                               Twelve Months Ended December 3120112010   Net cash provided by operating activities (000)   $ 635,692               $ 428,078     Net capital expenditures (000)   $ 445,869               $ 225,932           J.B. Hunt Transport Services, Inc.David G. Mee, 479-820-8363Executive Vice President, Finance/Administrationand Chief Financial Officer