J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q1 2014 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, 2014
Slide 1: J.B. Hunt Transport Services, Inc. 1Q 2014 Results
J.B. Hunt Transport Services, Inc. 1Q 2014 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 1Q 2014 Revenue Mix • Intermodal (JBI) 7% • Largest, 100% 53’ high-cube container fleet • Largest drayage fleet in North America 11% JBI • Priority loading and unloading at major rail DCS terminals ICS JBT • Dedicated Contract Services (DCS) • Fleet creation, conver
Slide 4: 1Q 2014 Results vs. 1Q 2013
1Q 2014 Results vs. 1Q 2013 • 1Q 2014 Revenue: $1.41 billion; up 9% • 1Q 2014 Revenue, excl FSC: $1.15 billion; up 11% • 1Q 2014 Operating Income: $117 million; down 6% • 1Q 2014 EPS: $0.58 vs. $0.61 • Segment Performance • Intermodal (JBI) • Revenue: $835 million; up 5% • Operating Income: $93.2 mi
Slide 5: 1Q 2014 Results - Consolidated
1Q 2014 Results - Consolidated Revenue Operating Income (in millions) (in millions) $6,000 $700 $5,585 $577 $600 $530 $500 $5,055 $444 $369 $358 $5,000 $400 $348 $300 $4,527 $248 $200 $125 $117 $100 $4,000 $3,732 $3,793 $- 2007 2008 2009 2010 2011 2012 2013 1Q 13 1Q 14 $3,490 $3,203 $3,000 Diluted E
Slide 6: Key Points
Key Points • Industry leading Intermodal franchise • Differentiated & specialized Dedicated business • Independent brokerage/management services • Lighter Truckload asset model 6
Slide 7: Segment Discussion
UNMATCHED CAPACITY. f ‘lad | ae i | | | | | Segment Discussion
Slide 8: JBI - Intermodal
JBI - Intermodal JBI Revenue (in millions) • Service disruptions and winter storms that $3,456 $3,500 impacted the Midwest and Northeast over several weeks in the quarter limited load $3,071 growth to 5% over the same period 2013. $3,000 $2,673 • Eastern network grew by 9% and transcontinental growt
Slide 9: JBI Performance
JBI Performance JBI Revenue Growth JBI Operating Income Growth 30% 30% 27% 25% 24% 19% 20% 20% 15% 13% 10% 10% 5% 0% -4% 0% -10% FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,710 1,702 $2,200 1,700 1,694 $2,169 $2,169 1,69
Slide 10: DCS - Dedicated
DCS - Dedicated DCS Revenue (in millions) • Revenue increased 15% over 1Q 2013. $1,400 • Productivity, revenue per truck per week, $1,231 decreased approximately 5.7% vs. 2013 $1,200 due to the large number of Midwestern $1,080 $1,031 and Northeastern customer accounts $1,000 $937 $927 affected by t
Slide 11: DCS Performance
DCS Performance DCS Revenue Growth DCS Operating Income Growth 20% 30% 25% 15% 20% 14% 14% 13% 15% 10% 0% 10% -5% -10% 5% -20% 5% -30% -29% 0% -40% FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y DCS Average Length of Haul DCS Loads 250 2,000,000 1,835,872 201 198 1,522,740
Slide 12: ICS - Non-Asset Based
ICS - Non-Asset Based ICS Revenue (in millions) • Revenue increased 33% over 1Q 2013 mostly $600 due to a 3% increase in load volume and a 29% $537 increase in revenue per load. $550 • Revenue grew faster than volume primarily due $500 to a change in the freight mix driven by $456 $450 customer dema
Slide 13: ICS Performance
ICS Performance ICS Operating Income Change ICS Revenue Growth 35% 33% 65% 30% 28% 25% 41% 22% 40% 20% 18% 23% 15% 18% 15% 10% 5% -3% 0% -10% FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 1Q Y/Y ICS Gross Profit Margin ICS Loads 15.0% 500,000 13.0% 13.0% 11.8% 12.1% 388,987 400,
Slide 14: JBT - Truckload
JBT - Truckload JBT Revenue (in millions) • Revenue decreased 9% from 1Q 2013 primarily $1,000 due to a 9% reduction in fleet size and lower utilization per truck from the winter weather in January and February. $842 • Rate per loaded mile, excluding fuel surcharges, $800 increased 9% over the same
Slide 15: JBT Performance
JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 467 78 449 77.1 431 408 77 400 76 75.4 75.4 300 75 74 200 73 72 71.6 100 71 0 70 2012 2013 Q1 13 Q1 14 2012 2013 Q1 13 Q1 14 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 449,366 386,875 $3,891 $3,886
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
Slide 17: Balance Sheet
Balance Sheet J.B. HUNT TRANSPORT SERVICES, INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, 2014 December 31, 2013 ASSETS Current assets: Cash and cash equivalents $ 124,212 $ 5,831 Accounts Receivable 635,111 568,519 Prepaid expenses and other 82,745 105,853 Total cu
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