J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q4 2017 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, January 2018
Slide 1: J.B. Hunt Q4 2017 Results
J.B. HUNT Q4 2017 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 Intermodal (JBI) 4Q 2017 Revenue Mix Largest, 100% 53’ high-cube container fleet 5% Largest drayage fleet in North America 16% Priority loading and unloading at major rail terminals JBI DCS Dedicated Contract Services (DCS) ICS Fleet creation, conversion, and au
Slide 4: 4Q 2017 Results vs. 4Q 2016
4Q 2017 RESULTS VS. 4Q 2016 OVERVIEW SEGMENT PERFORMANCE 4Q 2017 Revenue: Intermodal (JBI) $1.99 billion; up 16% Revenue: $1.1 billion; up 10% Operating Income: $93.3 million; down 25% 4Q 2017 Revenue, excl FSC: $1.77 billion; up 13% Dedicated Contract Services (DCS) Revenue: $477 million; up 20% 4Q
Slide 5: 4Q 2017 Results Consolidated
4Q 2017 RESULTS CONSOLIDATED Revenue Operating Income (in millions) (in millions) $8,000 $800 $716 $721 $700 $624 $7,190 $632 $600 $577 $7,000 $530 $6,555 $500 $444 $6,165 $6,188 $400 $6,000 $300 $5,585 $194 $146 $200 $5,055 $100 $5,000 $- $4,527 2011 2012 2013 2014 2015 2016 2017 4Q 16 4Q 17 $4,000
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 total volumes grew 5% over the same period in 2016. $4,500 $4,084 Eastern network loads grew at 7% and transcontinental loads $4,000 $3,796 increased 4% compared to the fourth quarter 2016. $3,687 $3,665 $3,456 Revenue increased 10%, reflecting volume g
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change 10% JBI Operating Income Change 10% 10% 8% 4% 5% 0% 5% 4% -5% -10% -6% -9% -15% 0% -20% -1% -25% -25% -5% -30% FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,200 1,685
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue DCS revenue increased 20% during the current quarter over (in millions) the same period 2016. $1,800 $1,719 Productivity (revenue per truck per week) increased $1,533 approximately 4% vs. 2016. $1,600 $1,451 $1,394 A year over year net additional 1,326 revenue producing $
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 25% 50% 40% 40% 20% 26% 20% 30% 20% 15% 10% 12% 0% 10% -10% 6% -20% 4% -17% 5% -30% -40% -39% 0% -50% FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 3,000,00
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS Revenue ICS revenue increased 40% in the current quarter vs. the fourth quarter (in millions) 2016. Revenue per load increased 19% and volume increased 17% $1,100 mostly due to increased spot market activity. $1,025 $1,000 Contractual volumes represent approximat
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change 40% ICS Operating Income Change 40% 100% 86% 80% 30% 22% 60% 20% 20% 40% 20% 20% 10% 1% 0% 0% -20% -3% -40% -37% -10% -60% FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 4Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,200,000 992,834
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) JBT revenue for the current quarter increased 1% from the $550 same period in 2016. $504 $484 $500 Revenue per load increased 13% primarily from a 12% increase in rates per loaded mile on an equivalent length of haul $450 compared to fourth quarter 2016 but
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 88 85.6 85.1 455 86 82.6 84.0 435 439 432 84 450 82 80 400 78 76 350 74 72 300 70 2016 2017 4Q 16 4Q 17 2016 2017 4Q 16 4Q 17 JBT Loads JBT Revenue per Tractor per Week $3,782 $4,000 500,000 $3,556 $3
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 December 31, 2017 December 31, 2016 ASSETS Current assets: Cash and cash equivalents $ 14,612 $ 6,377 Accounts Receivable 920,767 745,288 Prepaid expenses and other 286,135 194.016 Total current assets 1,221,514 945,681 Property and equipment 4,670,464 4,258,915 Less accumulated deprec
Slide 18: Thank You
THANK YOU 18
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