J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q4 2019 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, January 2020
Slide 1: J.B. Hunt Q4 2019 Results
J.B. HUNT Q4 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 4Q 2019 Revenue Mix Intermodal (JBI) Largest, 100% 53’ high-cube container fleet 4% 15% Largest drayage fleet in North America JBI Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) 52% ICS Fleet creation, conversion, and
Slide 4: 4Q 2019 Results vs. 4Q 2018
4Q 2019 RESULTS VS. 4Q 2018 OVERVIEW SEGMENT PERFORMANCE 4Q 2019 Revenue: Intermodal (JBI) $2.5 billion; up 6% Revenue: $1.27 billion; flat Operating Income: $131.1 million; up 304% 4Q 2019 Revenue, excl FSC: $2.2 billion; up 7% Dedicated Contract Services (DCS) Revenue: $717 million; up 20% 4Q 2019
Slide 5: 4Q Results Consolidated
4Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income $10,000 (in millions) $9,165 $800 $716 $721 $734 $681 $9,000 $700 $8,615 $577 $632 $624 $600 $530 $8,000 $500 $7,190 $400 $7,000 $300 $6,555 $205 $6,165 $6,188 $200 $6,000 $123 $5,585 $100 $5,055 $- $5,000 2012 2013 2014 2015 2016 2017 2
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 increased 2% over the same period in 2018. $5,000 $4,717 $4,745 Eastern network loads decreased by 8% and transcontinental loads grew by 8% compared to the fourth quarter 2018. Revenue $4,500 increased less than one percent, reflecting the
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 380% 15% 304% 15% 280% 10% 180% 8% 5% 80% 1% -9% 12% 0% -2% 0% -20% FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,750 $2,600 1,725 $2,463 1,70
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue increased 20% during the current quarter over the same period 2018. Productivity (revenue per truck per week) $2,800 increased approximately 9% vs. 2018. Productivity excluding fuel $2,695 $2,600 surcharge revenue increased approximately 11% from
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 40% 50% 40% 39% 34% 30% 30% 26% 25% 20% 20% 13% 20% 10% 12% 0% 10% -10% -20% 0% -17% FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y -30% FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 4,000,000 5,300 3,61
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue increased 9% in the current quarter vs. the fourth $1,500 quarter 2018. Volume increased 3% and revenue per load $1,400 increased 5.5%, mostly due to customer mix changes, compared to $1,335 $1,348 the prior year. Contractual volumes represent a
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 150% 120% 100% 30% 30% 50% 20% 0% 20% -50% -37% 9% -100% 10% -150% -122% 1% 0% -200% -173% FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 4Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,400,000 1,234,6
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 JBT revenue decreased 20% from the same period in 2018. Revenue excluding fuel surcharges also decreased $500 $484 approximately 21% primarily from an 11% decrease in rates per loaded mile and a 9% decrease in load count compared $450 to a year ago. Com
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 100 450 96.9 427 94.1 95 415 405 91.3 396 90 400 85.5 85 350 80 75 300 70 2018 2019 4Q 18 4Q 19 2018 2019 4Q 18 4Q 19 JBT Loads JBT Revenue per Tractor per Week 400,000 355,038 $5,000 346,459 $4,513 $4,14
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, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $ 35,000 $ 7,600 Accounts Receivable 1,011,829 1,051,698 Prepaid expenses and other 434,470 443 683 Total current assets 1,481,299 1,502,981 Property and equipment 5,640,806 5,329,243 Less accumulated
Slide 18: Thank You
THANK YOU 18
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