J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q2 2019 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2019
Slide 1: J.B. Hunt Q2 2019 Results
J.B. HUNT Q2 2019 RESULTS Presented by CONFIDENTIAL 1
Slide 2: Disclosure
DISCLOSURE This presentation and discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking stateme
Slide 3: Distinct & Complementary Businesses
DISTINCT & COMPLEMENTARY BUSINESSES 2Q 2019 Revenue Mix Intermodal (JBI) 4% Largest, 100% 53’ high-cube container fleet 15% Largest drayage fleet in North America Priority loading and unloading at major rail terminals JBI DCS Dedicated Contract Services (DCS) Fleet creation, conversion, and augmenta
Slide 4: 2Q 2019 Results vs. 2Q 2018
2Q 2019 RESULTS VS. 2Q 2018 OVERVIEW SEGMENT PERFORMANCE 2Q 2019 Revenue: Intermodal (JBI) $2.26 billion; up 6% Revenue: $1.15 billion; down 1% Operating Income: $124.4 million; down 7% 2Q 2019 Revenue, excl FSC: $2.0 billion; up 6.5% Dedicated Contract Services (DCS) Revenue: $680 million; up 28% 2
Slide 5: 2Q Results Consolidated
2Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income $10,000 (in millions) $800 $716 $721 $681 $9,000 $700 $8,615 $632 $624 $600 $577 $530 $8,000 $500 $444 $7,190 $400 $7,000 $300 $6,555 $215 $193 $6,165 $6,188 $200 $6,000 $5,585 $100 $5,055 $- $5,000 2011 2012 2013 2014 2015 2016 2017 201
Slide 6: Key Points
KEY POINTS • Industry leading Intermodal franchise • Differentiated and specialized Dedicated business • Independent brokerage/management services • Lighter Truckload asset model
Slide 7: Segment Discussion
SEGMENT DISCUSSION 7
Slide 8: Intermodal (JBI)
INTERMODAL (JBI) JBI Revenue (in millions) JBI load volumes declined 8% over the same period in 2018. $5,000 $4,717 Transcontinental loads decreased approximately 5% and Eastern network volumes declined 11% from second quarter $4,500 2018. A softer freight market limited the ability to offset rail $
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 25% 15% 20% 15% 15% 10% 10% 8% 5% 5% 4% 0% -5% -2% 0% -6% -10% -1% -9% -7% -15% -5% FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,500 1
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue increased 28% during the current quarter over the $2,400 same period in 2018. Productivity, defined as revenue per truck per $2,163 week, increased approximately 8% vs. 2018. Productivity excluding $2,200 fuel surcharges increased approximately 9
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 35% 30% 26% 28% 30% 26% 20% 25% 13% 20% 10% 3% 15% 0% 12% 10% 6% -10% 5% 0% -20% -17% FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 5,100 3,500,000 4,915 2,
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue was down 4% compared to the second quarter $1,400 2018. Volumes decreased 7% while revenue per load $1,335 increased approximately 4%, primarily due to customer freight $1,300 mix. Higher contractual truckload volume was offset by a 33% decrease
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 60% 140% 120% 120% 50% 100% 80% 40% 60% 30% 40% 30% 22% 20% 20% 0% 1% 20% -20% 10% -40% -60% -37% 0% -80% -104% -4% -100% -10% -120% FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 2Q Y/Y ICS Gross Profit
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) JBT revenue decreased 2% from the same period in 2018. $550 Revenue excluding fuel surcharges was flat compared to $504 $484 second quarter 2018 on flat load count. Revenue per load $500 excluding fuel surcharges was up approximately 1% from a $450 4% increa
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 450 100 435 433 95.6 427 418 95 400 90 85.1 85.5 85 82.1 350 80 75 300 70 2017 2018 2Q 18 2Q 19 2017 2018 2Q 18 2Q 19 JBT Loads JBT Revenue per Tractor per Week 400,000 370,591 $5,000 355,038 $4,148 $3,93
Slide 16: Summary
SUMMARY Competitively differentiated Unique intermodal network Distinct advantages in dedicated segments Network economics and brand strength to penetrate new markets Complemented by industry dynamics Shippers need to reduce costs Shippers demand on-time service Increasingly complex supply-chains Po
Slide 17: Balance Sheet
BALANCE SHEET June 30, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $ 6,875 $ 7,600 Accounts Receivable, net 1,040,153 1,051,698 Prepaid expenses and other, net 337,336 443,683 Total current assets 1,384,364 1,502,981 Property and equipment 5,635,867 5,329,243 Less accumul
Slide 18: Thank You
THANK YOU 18
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