J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q2 2018 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2018
Slide 1: Q2 2018 Results
J.B. HUNT Q2 2018 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 and Complementary Businesses
DISTINCT AND COMPLEMENTARY BUSINESSES 2Q 2018 Revenue Mix Intermodal (JBI) 5% Largest, 100% 53’ high-cube container fleet 16% Largest drayage fleet in North America JBI Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) ICS Fleet creation, conversion, and au
Slide 4: 2Q 2018 Results vs. 2Q 2017
2Q 2018 RESULTS VS. 2Q 2017 OVERVIEW SEGMENT PERFORMANCE 2Q 2018 Revenue: Intermodal (JBI) $2.14 billion; up 24% Revenue: $1.16 billion; up 16% Operating Income: $134 million; up 22% 2Q 2018 Revenue, excl FSC: $1.87 billion; up 21% Dedicated Contract Services (DCS) Revenue: $530 million; up 29% 2Q 2
Slide 5: 2Q 2018 Results Consolidated
2Q 2018 RESULTS Operating Income CONSOLIDATED $800 (in millions) $716 $721 $700 $632 Revenue $577 $624 $600 (in millions) $444 $530 $8,000 $500 $348 $400 $7,190 $300 $7,000 $215 $6,555 $200 $164 $6,165 $6,188 $100 $6,000 $5,585 $- 2010 2011 2012 2013 2014 2015 2016 2017 2Q 17 2Q 18 $5,055 $5,000 Dil
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 JBI load volumes grew 4% over the same period in 2017. (in millions) $4,500 Transcontinental loads decreased approximately 2% from $4,084 second quarter 2017 mainly from network congestion and freight $4,000 mix changes away from higher cost dray movements. Eastern $3,68
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Operating Income Change JBI Revenue Change 20% 25% 22% 16% 20% 15% 15% 10% 10% 8% 4% 5% 4% 5% 0% -5% 0% -6% -10% -1% -9% -5% -15% FY15/FY14 FY16/FY15 FY17/FY16 2Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 2Q Y/Y JBI Revenue per Load JBI Average Length of Haul $2,300 1,700 $2
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS revenue increased 29% during the current quarter over the same period in 2017. Productivity, defined as revenue per truck DCS Revenue per week, increased approximately 10% vs. 2017. Productivity (in millions) $1,800 excluding fuel surcharges increased approximately 7% over a $1,7
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 35% 50% 29% 40% 30% 40% 30% 26% 25% 20% 20% 20% 10% 15% 12% 0% 10% 6% -10% 4% 5% -20% -17% 0% -30% FY15/FY14 FY16/FY15 FY17/FY16 2Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 2Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 4,700 4,565
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS revenue was up 56% compared to the second quarter 2017. ICS Revenue Volumes increased 38% while revenue per load increased (in millions) approximately 13%, primarily due to increased contractual and spot $1,100 rates compared to second quarter 2017. Spot volumes
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change 56% 60% 50% 40% 30% 22% 20% ICS Loads 20% 1,200,000 10% 992,834 1,000,000 0% 852,179 -3% 800,000 -10% FY15/FY14 FY16/FY15 FY17/FY16 2Q Y/Y 600,000 ICS Gross Profit Margin 400,000 331,278 20% 240,069 200,000 14.3% 14.8% 15% 13.3% - 11.6% 2016 2017 2Q 17
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue JBT revenue increased 7% compared to the same period in (in millions) 2017 primarily from customer rate increases and freight mix $550 $504 changes. Revenue excluding fuel surcharges increased $500 $479 $484 approximately 4%, primarily from an increase in revenue per load
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 88 86 85.6 455 85.1 85.1 450 435 84 431 82.1 433 82 80 400 78 76 350 74 72 300 70 2016 2017 2Q 17 2Q 18 2016 2017 2Q 17 2Q 18 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 385,298 370,591
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, 2018 December 31, 2017 ASSETS Current assets: Cash and cash equivalents 15,191 $ 14,612 Accounts Receivable 1,019,622 920,767 Prepaid expenses and other 272,608 403,349 Total current assets 4,307,421 1,338,728 Property and equipment 4,924,684 4,670,464 Less accumulated depreci
Slide 18: Thank You
THANK YOU 18
J.B. Hunt Transport Services — Q2 2018 Earnings Presentation on 6ix