J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q3 2020 Earnings Presentation
20 slides from J.b. Hunt Transport Services's earnings presentation, 2020
Slide 1: J.B. Hunt Q3 2020 Results
J.B. HUNT Q3 2020 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 Intermodal (JBI) 3Q 2020 Revenue Mix • Largest, 100% 53’ high-cube container fleet • Largest drayage fleet in North America 4% 7% • Priority loading and unloading at major rail terminals Dedicated Contract Services (DCS) JBI • Fleet creation, conversion, and augme
Slide 4: 3Q 2020 Results vs. 3Q 2019
3Q 2020 RESULTS VS. 3Q 2019 OVERVIEW SEGMENT PERFORMANCE 3Q 2020 Revenue: Intermodal (JBI) $2.47 billion; up 5% Revenue: $1.21 billion; down 2% Operating Income: $108.4 million; up 22% 3Q 2020 Revenue, excl FSC: $2.30 billion, up 9% Dedicated Contract Services (DCS) Revenue: $553 million; up 1% 3Q 2
Slide 5: 3Q Results Consolidated
3Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income (in millions) $10,000 $1,000 $9,165 $800 $734 $9,000 $716 $721 $681 $8,615 $577 $632 $624 $530 $600 $8,000 $400 $7,190 $7,000 $200 $168 $176 $6,555 $6,165 $6,188 $- $6,000 $5,585 2012 2013 2014 2015 2016 2017 2018 2019 3Q 19 3Q 20 $5,055
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) Overall intermodal volumes increased 2% vs. the same period in $5,000 $4,717 $4,745 2019. Eastern network loads grew 3%, while Transcon loads grew 2% compared to the third quarter 2019. Volumes in the $4,500 quarter were heavily constrained by rail congesti
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 25% 22% 15% 20% 15% 15% 12% 10% 10% 8% 5% 5% 0% 1% -5% -2% 0% -10% -9% -2% -15% -5% FY17/FY16 FY18/FY17 FY19/FY18 3Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 3Q Y/Y JBI Average Length of Haul JBI Revenue per Load $2,500 1,750 $
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue increased 1% during the current quarter over the same period in 2019. Productivity, defined as revenue per truck per week, $2,400 was flat vs. 2019. Productivity excluding fuel surcharge revenue $2,128 increased 2% vs. 2019. A net additional 63 r
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 50% 42% 25% 19% 40% 20% 30% 15% 10% 20% 5% 1% 10% 5% 0% FY19/FY18 3Q Y/Y 0% FY19/FY18 3Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 6,000 4,500,000 5,500 4,000,000 3,353,553 5,000 3,500,000 4,272 4,378 4,384 4,372 2,728
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue increased 28% in the current quarter vs. the $1,500 third quarter 2019. Volumes increased 2% and revenue per $1,348 load increased 25% due to customer freight mix changes and $1,400 $1,335 higher contractual and spot rates compared to the third
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income/(Loss) (in millions) $75.0 60% 50% $50.2 $50.0 40% 30% 30% 28% 20% $25.0 20% 10% 1% $0.0 0% ($5.6) ($11.1) -10% ($18.3) ($25.0) FY17/FY16 FY18/FY17 FY19/FY18 3Q Y/Y 2018 2019 3Q 19 3Q 20 ICS Gross Profit Margin ICS Loads 20% 2,000,
Slide 14: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS)* FMS Revenue (in millions) FMS revenue increased 22% compared to the same period $650 2019. Stop count within FMS increased 34% during the current quarter vs. a year ago, primarily from the December 2019 $600 acquisition and the addition of multiple customer contracts $567
Slide 15: Final Mile Services (FMS) Performance
FINAL MILE SERVICES (FMS) FMS Revenue Change FMS Operating Income/(Loss (in millions) 60% 51% $6.0 50% $1.9 $2.1 40% $2.0 30% 22% ($2.0) ($1.5) 20% ($6.0) 10% ($8.8) 0% ($10.0) FY19/FY18 3Q Y/Y 2018 2019 3Q 19 3Q 20 FMS Stops FMS Average Truck 5,000,000 4,432,591 2,000 4,500,000 4,000,000 1,800 3,50
Slide 16: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) JBT revenue increased 16% from the same period in 2019. $550 Revenue excluding fuel surcharge revenue increased 19%, $484 primarily from a 14% increase in load count and a 5% $500 increase in revenue per load excluding fuel surcharge revenue compared to a ye
Slide 17: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Tractors JBT Average Nonpaid Empty Mile Percentage 21.0% 2,200 18.9% 18.9% 19.2% 1,990 19.0% 1,958 2,000 1,910 16.7% 17.0% 1,783 1,800 15.0% 1,600 13.0% 1,400 11.0% 9.0% 1,200 7.0% 1,000 2018 2019 3Q 19 3Q 20 5.0% 2018 2019 3Q 19 3Q 20 JBT Loads JBT Revenue pe
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, 2020 December 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 318,549 $ 35,000 Accounts Receivable, net 1,121,825 1,011,829 Prepaid expenses and other 288,224 434,470 Total current assets 1,728,598 1,481,299 Property and equipment 5,842,114 5,640,806 Less accu
Slide 20: Thank You
THANK YOU 20
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