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TheStreet Open House

J.B. Hunt Transport Services, Inc. Reports Earnings For The Second Quarter 2012

Stock quotes in this article: JBHT

Integrated Capacity Solutions (ICS)

  • Second Quarter 2012 Segment Revenue: $109 million; up 23%
  • Second Quarter 2012 Operating Income: $ 2.0 million; down 25%

ICS revenue increased 23% in the current quarter vs. the second quarter 2011, primarily due to a 16% increase in load volume. While transactional volumes remained relatively flat, contractual volume growth accelerated in the second quarter as new bid awards were implemented. Contractual business elevated to 60% of total volume in the second quarter vs. 52% in the prior year.

Operating income decreased 25% over the same period 2011 primarily due to a decline in gross profit margin. Gross profit margin decreased to 10.6% in the current quarter vs. 12.3% last year. Purchase transportation costs increased throughout the current period due to a tighter supply of qualified transportation providers in the marketplace. Two new branch locations opened during the quarter bringing the total branch count to 14. ICS’s carrier base increased 13% and the employee count increased 7% vs. second quarter 2011.

Cash Flow and Capitalization:

At June 30, 2012, we had a total of $679 million outstanding on various debt instruments compared to $664 million at June 30, 2011 and $749 million at December 31, 2011.

Our net capital expenditures for the six months ended June 30, 2012 approximated $171 million compared to $211 million for the same period 2011. At June 30, 2012, we had cash and cash equivalents of $5.9 million.

We did not purchase any shares of our common stock during the quarter. At June 30, 2012 we had approximately $503 million remaining under two separate share repurchase authorizations. Actual shares outstanding at June 30, 2012 approximated 117.5 million.

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 June 30
2012 2011
% Of % Of
Amount   Revenue Amount   Revenue
 
Operating revenues, excluding fuel surcharge revenues $ 1,005,519 $ 924,689
Fuel surcharge revenues 249,611 225,166
Total operating revenues 1,255,130 100.0 % 1,149,855 100.0 %
 
Operating expenses
Rents and purchased transportation 616,723 49.2 % 536,688 46.7 %
Salaries, wages and employee benefits 255,864 20.4 % 255,462 22.2 %
Fuel and fuel taxes 113,085 9.0 % 120,276 10.5 %
Depreciation and amortization 56,227 4.5 % 52,551 4.6 %
Operating supplies and expenses 45,540 3.6 % 40,977 3.6 %
Insurance and claims 12,595 1.0 % 11,642 1.0 %
General and administrative expenses, net of asset dispositions 6,356 0.5 % 7,515 0.5 %
Operating taxes and licenses 7,323 0.6 % 6,883 0.6 %
Communication and utilities 4,202 0.3 % 4,418 0.4 %
Total operating expenses 1,117,915 89.1 % 1,036,412 90.1 %
Operating income 137,215 10.9 % 113,443 9.9 %
Net interest expense 6,929 0.5 % 6,706 0.6 %
Earnings before income taxes 130,286 10.4 % 106,737 9.3 %
Income taxes 49,835 4.0 % 41,041 3.6 %
Net earnings $ 80,451 6.4 % $ 65,696 5.7 %
Average diluted shares outstanding 120,027 123,285
Diluted earnings per share $ 0.67 $ 0.53
 
 
 
 
 
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
 
Six Months Ended June 30
2012 2011
% Of % Of
Amount   Revenue Amount   Revenue
 
Operating revenues, excluding fuel surcharge revenues $ 1,944,202 $ 1,756,289
Fuel surcharge revenues 476,850 394,346
Total operating revenues 2,421,052 100.0 % 2,150,635 100.0 %
 
Operating expenses
Rents and purchased transportation 1,172,841 48.4 % 990,392 46.1 %
Salaries, wages and employee benefits 505,909 20.9 % 487,489 22.7 %
Fuel and fuel taxes 233,638 9.7 % 229,251 10.7 %
Depreciation and amortization 112,347 4.6 % 103,908 4.8 %
Operating supplies and expenses 85,351 3.5 % 77,625 3.6 %
Insurance and claims 23,640 1.0 % 21,489 1.0 %
General and administrative expenses, net of asset dispositions 10,350 0.4 % 14,396 0.6 %
Operating taxes and licenses 14,465 0.6 % 13,531 0.6 %
Communication and utilities 8,699 0.4 % 9,288 0.4 %
Total operating expenses 2,167,240 89.5 % 1,947,369 90.5 %
Operating income 253,812 10.5 % 203,266 9.5 %
Net interest expense 13,916 0.6 % 15,141 0.8 %
Earnings before income taxes 239,896 9.9 % 188,125 8.7 %
Income taxes 91,760 3.8 % 72,334 3.3 %
Net earnings $ 148,136 6.1 % $ 115,791 5.4 %
Average diluted shares outstanding 119,888 123,623
Diluted earnings per share $ 1.24 $ 0.94
 
 
 
 
 
 
 
Financial Information By Segment
(in thousands)
(unaudited)
       
 
Three Months Ended June 30
2012 2011
% Of % Of
Amount   Total Amount   Total
 

Revenue

 
Intermodal $ 762,043 61 % $ 675,974 59 %
Dedicated 267,310 21 % 264,166 23 %
Truck 126,180 10 % 129,974 11 %
Integrated Capacity Solutions 109,494   9 % 89,028   8 %
Subtotal 1,265,027 101 % 1,159,142 101 %
Intersegment eliminations (9,897 ) (1 %) (9,287 ) (1 %)
Consolidated revenue $ 1,255,130   100 % $ 1,149,855   100 %
 
 

Operating income

 
Intermodal $ 93,368 68 % $ 76,531 68 %
Dedicated 33,198 24 % 27,389 24 %
Truck 8,840 7 % 6,944 6 %
Integrated Capacity Solutions 1,956 1 % 2,614 2 %
Other (1) (147 ) (0 %) (35 ) (0 %)
Operating income $ 137,215   100 % $ 113,443   100 %
 
 
 
 
 
Six Months Ended June 30
2012 2011
% Of % Of
Amount   Total Amount   Total

Revenue

 
Intermodal $ 1,456,159 60 % $ 1,252,877 58 %
Dedicated 523,162 22 % 502,622 23 %
Truck 254,337 10 % 249,072 12 %
Integrated Capacity Solutions 206,546   9 % 163,773   8 %
Subtotal 2,440,204 101 % 2,168,344 101 %
Intersegment eliminations (19,152 ) (1 %) (17,709 ) (1 %)
Consolidated revenue $ 2,421,052   100 % $ 2,150,635   100 %
 
 

Operating income

 
Intermodal $ 172,798 68 % $ 139,169 68 %
Dedicated 61,347 24 % 46,005 23 %
Truck 13,724 6 % 12,779 6 %
Integrated Capacity Solutions 6,020 2 % 5,193 3 %
Other (1) (77 ) (0 %) 120   0 %
Operating income $ 253,812   100 % $ 203,266   100 %
 
 
(1) Includes corporate support activity
 
 
 
 
 
 
Operating Statistics by Segment
(unaudited)
     
Three Months Ended June 30
2012 2011
 

Intermodal

 
Loads 354,790 315,067
Average length of haul 1,687 1,714
Revenue per load $ 2,148 $ 2,145
Average tractors during the period * 3,379 2,830
 
Tractors (end of period)
Company-owned 3,057 2,759
Independent contractor 384   137  
Total tractors 3,441 2,896
 
Net change in trailing equipment during the period 1,175 1,923
Trailing equipment (end of period) 56,012 50,189
Average effective trailing equipment usage 54,049 49,148
 
 

Dedicated

 
Loads 367,840 368,488
Average length of haul 203 203
Revenue per truck per week** $ 4,222 $ 4,306
Average trucks during the period*** 4,900 4,761
 
Trucks (end of period)
Company-owned 4,632 4,504
Independent contractor 17 16
Customer-owned (Dedicated operated) 422   316  
Total trucks 5,071 4,836
 
Trailing equipment (end of period) 12,990 11,375
Average effective trailing equipment usage 13,856 12,797
 
 

Truck

 
Loads 118,500 113,170
Average length of haul 455 507
Loaded miles (000) 53,551 56,644
Total miles (000) 62,447 65,098
Average nonpaid empty miles per load 76.3 73.0
Revenue per tractor per week** $ 3,994 $ 4,022
Average tractors during the period * 2,461 2,513
 
Tractors (end of period)
Company-owned 1,505 1,621
Independent contractor 891   887  
Total tractors 2,396 2,508
 
Trailers (end of period) 9,234 9,173
Average effective trailing equipment usage 8,081 8,089
 
 

Integrated Capacity Solutions

 
Loads 74,112 63,887
Revenue per load $ 1,477 $ 1,394
Gross profit margin 10.6 % 12.3 %
Employee count (end of period) 406 379
Approximate number of third-party carriers (end of period) 30,500 26,900
 
 
* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks
 
 
 
 
 
 
Operating Statistics by Segment
(unaudited)
     
Six Months Ended June 30
2012 2011
 

Intermodal

 
Loads 678,932 594,413
Average length of haul 1,695 1,728
Revenue per load $ 2,145 $ 2,108
Average tractors during the period * 3,282 2,766
 
Tractors (end of period)
Company-owned 3,057 2,759
Independent contractor 384   137  
Total tractors 3,441 2,896
 
Net change in trailing equipment during the period 1,506 4,523
Trailing equipment (end of period) 56,012 50,189
Average effective trailing equipment usage 52,323 47,497
 
 

Dedicated

 
Loads 719,027 714,141
Average length of haul 205 202
Revenue per truck per week** $ 4,146 $ 4,157
Average trucks during the period*** 4,891 4,707
 
Trucks (end of period)
Company-owned 4,632 4,504
Independent contractor 17 16
Customer-owned (Dedicated operated) 422   316  
Total trucks 5,071 4,836
 
Trailing equipment (end of period) 12,990 11,375
Average effective trailing equipment usage 13,146 12,762
 
 

Truck

 
Loads 235,404 219,433
Average length of haul 477 520
Loaded miles (000) 111,102 112,851
Total miles (000) 128,711 129,084
Average nonpaid empty miles per load 75.1 71.6
Revenue per tractor per week** $ 3,905 $ 3,846
Average tractors during the period* 2,538 2,531
 
Tractors (end of period)
Company-owned 1,505 1,621
Independent contractor 891   887  
Total tractors 2,396 2,508
 
Trailers (end of period) 9,234 9,173
Average effective trailing equipment usage 8,117 8,128
 
 

Integrated Capacity Solutions

 
Loads 142,250 123,700
Revenue per load $ 1,452 $ 1,324
Gross profit margin 12.4 % 13.4 %
Employee count (end of period) 406 379
Approximate number of third-party carriers (end of period) 30,500 26,900
 
 
* 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)
     
 
      June 30, 2012       December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents $ 5,887 $ 5,450
Accounts Receivable 472,077 411,479
Prepaid expenses and other     62,461       96,613
Total current assets     540,425       513,542
Property and equipment 2,777,107 2,658,143
Less accumulated depreciation     981,317       931,273
Net property and equipment     1,795,790       1,726,870
Other assets     29,061       26,920
    $ 2,365,276     $ 2,267,332
 
 
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $ 100,000 $ 50,000
Trade accounts payable 298,587 251,625
Claims accruals 43,980 42,364
Accrued payroll 57,683 77,107
Other accrued expenses     24,111       17,419
Total current liabilities     524,361       438,515
 
Long-term debt 579,462 699,177
Other long-term liabilities 49,723 45,382
Deferred income taxes 498,457 516,715
Stockholders' equity     713,273       567,543
    $ 2,365,276     $ 2,267,332
 
 
 
Supplemental Data
(unaudited)
               
      June 30, 2012       December 31, 2011
 
Actual shares outstanding at end of period (000)     117,550       116,932
 
Book value per actual share outstanding at end of period   $ 6.07     $ 4.85
 
 
               
Six Months Ended June 30
2012 2011
 
Net cash provided by operating activities (000)   $ 260,579     $ 307,673
 
Net capital expenditures (000)   $ 170,880     $ 210,963
 
 




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