J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q3 2022 Earnings Presentation
20 slides from J.b. Hunt Transport Services's earnings presentation, 2022
Slide 1: J.B. Hunt Transport Services, Inc. Q3 2022 Results
J.B. HUNT TRANSPORT SERVICES, INC. Q3 2022 Results
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 Intermodal (JBI) • Largest, 100% 53’ high-cube container fleet 3Q 2022 Revenue Mix • Largest drayage fleet in North America 7% • Priority loading and unloading at major rail terminals 7% JBI Dedicated Contract Services (DCS) • Fleet creation, conversion, and augme
Slide 4: 3Q 2022 Results vs. 3Q 2021
3Q 2022 RESULTS VS. 3Q 2021 OVERVIEW SEGMENT PERFORMANCE 3Q 2022 Revenue: Intermodal (JBI) $3.84 billion; up 22% Revenue: $1.84 billion; up 30% 3Q 2022 Revenue, excl FSC: Operating Income: $217.0 million; up 31% $3.16 billion; up 12% Dedicated Contract Services (DCS) Revenue: $894 million; up 34% 3Q
Slide 5: 3Q Results Consolidated
3Q RESULTS CONSOLIDATED Revenue Operating Income (in millions) (in millions) $1,046 $12,168 $12,000 $1,000 $800 $577 $716 $721 $681 $734 $713 $632 $624 $10,000 $600 $9,637 $9,165 $362 $400 $274 $8,615 $200 $8,000 $7,190 $- 2013 2014 2015 2016 2017 2018 2019 2020 2021 3Q 213Q 22 $6,555 $6,188 $6,165
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) Intermodal volume increased 4% over the same period in 2021. JBI Revenue Eastern network loads increased 7%, while transcontinental (in millions) loads increased 1%. During the quarter, we continued to experience growth in demand for intermodal services but $6,000 volume was negativ
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 90% 35% 70% 30% 25% 50% 41% 15% 17% 31% 15% 30% 12% 5% 10% 1% -1% -10% -2% -4% -5% FY18/FY17 FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y FY18/FY17 FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y JBI Average Length of Haul JBI Revenue per Load
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) $2,578 Demand for our highly engineered private-fleet outsourcing solution $2,500 remained strong during the quarter. DCS revenue increased 34% year over year, primarily from an 18% increase in average revenue $2,128 $2,196 producing trucks and a 14% increas
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 40% 50% 34% 42% 40% 30% 32% 30% 19% 17% 20% 20% 13% 10% 10% 3% 0% 0% -3% -10% FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 5,500 4,020,308 5,342 4,000,000
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue declined 11% in the current quarter versus the third $2,538 quarter 2021. Overall segment volume decreased 8% in the quarter, while truckload volume was down 1% compared to the $2,500 prior year. Revenue per load decreased 4% compared to the thi
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income/(Loss) 60% (in millions) 53% $60.0 40% $46.3 30% $40.0 23% 20% $20.0 $14.7 $13.5 1% $0.0 0% ($20.0) ($11.1) -11% ($40.0) -20% FY18/FY17 FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y ($44.7) ($60.0) 2019 2020 2021 3Q 21 3Q 22 ICS Gross Profi
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) JBT revenue increased 34% as compared to the same period in the $796 previous year. Revenue excluding fuel surcharge revenue increased $800 24% primarily due to increased load volume and higher revenue per load excluding fuel surcharge revenue. Volume was up
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Trailers JBT Average Length of Haul 16,000 600 549 13,207 482 498 500 12,000 420 415 9,299 9,438 400 8,000 7,866 6,824 300 4,000 200 100 - 2019 2020 2021 3Q 21 3Q 22 - 2019 2020 2021 3Q 21 3Q 22 JBT Loads JBT Revenue per Load 500,000 445,812 $3,000 406,550 400
Slide 16: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS) FMS Revenue (in millions) $842 FMS revenue increased 21% compared to the same period 2021, $800 primarily driven by the previously announced acquisition of Zenith Freight Lines, LLC (Zenith) and multiple new customer contracts $689 implemented over the past trailing twelve
Slide 17: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS) FMS Operating Income/(Loss) FMS Revenue Change (in millions) 60% 51% $27.9 50% $25.0 40% $15.0 $9.6 30% 22% 22% 21% $5.0 20% $1.3 ($5.0) ($0.9) 10% ($8.8) 0% ($15.0) FY19/FY18 FY20/FY19 FY21/FY20 3Q Y/Y 2019 2020 2021 3Q 21 3Q 22 FMS Average Trucks FMS Stops 6,413,680 1,900
Slide 18: 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 19: Balance Sheet
BALANCE SHEET September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 84,334 $ 355,549 Accounts Receivable, net 1,726,155 1,506,619 Prepaid expenses and other 341,927 451,201 Total current assets 2,152,416 2,313,369 Property and equipment 7,680,238 6,680,316 Less accu
Slide 20: Thank You
THANK YOU [=a |}
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