This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

J.B. Hunt Transport Services, Inc. Reports Earnings For The Third Quarter 2013

Stocks in this article: JBHT

Operating income increased 21% over prior year. Benefits from steady demand, consistent load growth, improved box turns and lower office personnel compensation costs were partially offset by higher insurance and claims costs, higher costs to acquire and retain drivers, increased outsourced drayage costs, increased rail purchase transportation costs and higher fleet equipment costs. The current period ended with approximately 64,000 units of trailing capacity and 4,050 power units assigned to the dray fleet.

Dedicated Contract Services (DCS)

  • Third Quarter 2013 Segment Revenue: $319 million; up 17%
  • Third Quarter 2013 Operating Income: $29.3 million; up 14%

DCS revenue increased 17% during the current quarter. Productivity (revenue per truck per week) decreased by approximately 3% vs. 2012 due to the higher percentage of customer provided equipment and customer paid fuel primarily with respect to new large private fleet conversions. New accounts provided a net additional 972 revenue producing trucks by the end of the quarter compared to prior year.

Operating income increased by 14% from a year ago. The increase is primarily due to the increase in revenue from new accounts and partially offset by higher recruiting, relocation and personnel retention costs mostly within the new fleet conversions; higher purchased transportation costs and toll expenses, also mostly within the new fleet conversions; increased bad debt expense and increased equipment costs. While the implementation of the two new fleet conversions is complete, implementation costs incurred in the current quarter were approximately $2.5 million versus previous estimates of $1 million. A portion of this increased cost is expected to be ongoing until the fleets for these new accounts are operating in the manner in which they were designed with the customer.

Integrated Capacity Solutions (ICS)

  • Third Quarter 2013 Segment Revenue: $137 million; up 13%
  • Third Quarter 2013 Operating Income: $2.8 million; down 48%

ICS revenue increased 13% in the current quarter vs. the third quarter 2012, primarily due to a 4% increase in load volume and a higher revenue per load. Revenue grew faster than volumes primarily due to freight mix changes 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 third quarter 2012. Both transactional and contractual volumes continued to grow during the quarter. Contractual business was approximately 64% of total load volume in the current period and comparable to third quarter 2012.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs