J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q1 2020 Earnings Presentation
20 slides from J.b. Hunt Transport Services's earnings presentation, 2020
Slide 1: J.B. Hunt Q1 2020 Results
J.B. HUNT Q1 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) • Largest, 100% 53’ high-cube container fleet 1Q 2020 Revenue Mix • Largest drayage fleet in North America 4% • Priority loading and unloading at major rail terminals 7% Dedicated Contract Services (DCS) • Fleet creation, conversion, and augmentat
Slide 4: 1Q 2020 Results vs. 1Q 2019
1Q 2020 RESULTS VS. 1Q 2019 OVERVIEW SEGMENT PERFORMANCE 1Q 2020 Revenue: Intermodal (JBI) $2.28 billion; up 9% Revenue: $1.15 billion; up 6% Operating Income: $102 million; down 1% 1Q 2020 Revenue, excl FSC: $2.05 billion; up 10% Dedicated Contract Services (DCS) Revenue: $542 million; up 10% 1Q 20
Slide 5: 1Q Results Consolidated
1Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income (in millions) $10,000 $800 $716 $721 $734 $681 $9,165 $700 $577 $632 $624 $9,000 $600 $530 $8,615 $500 $8,000 $400 $7,190 $300 $7,000 $200 $168 $155 $6,555 $6,165 $6,188 $100 $6,000 $- $5,585 2012 2013 2014 2015 2016 2017 2018 2019 1Q 19
Slide 6: Key Points
KEY POINTS • Industry leading Intermodal franchise • Differentiated and specialized Dedicated business • Independent brokerage/management services • Growing Final Mile Services offering • 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 by 7% over the same period in 2019. Eastern network loads grew 1%, while $5,000 $4,717 $4,745 Transcontinental loads grew by 11%. Through February, both tractor and container utilization were improved year-over-year as
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Operating Income Change JBI Revenue Change 15% 20% 12% 15% 10% 15% 5% 10% 8% 6% 0% 5% -2% -1% 1% -5% 0% -10% -9% -5% -15% FY17/FY16 FY18/FY17 FY19/FY18 1Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 1Q Y/Y JBI Revenue per Load JBI Average Length of Haul 1,700 $2,500 $2,397 $2,
Slide 10: Dedicated (DCS)
DEDICATED (DCS)* DCS Revenue (in millions) DCS revenue increased 10% during the current quarter over the same period 2019. Productivity (revenue per truck per week) $2,400 increased approximately 2% vs. 2019. Productivity excluding fuel surcharge revenue increased approximately 3% from a year ago $2
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 60% 25% 50% 46% 19% 42% 20% 40% 15% 30% 10% 10% 20% 5% 10% 0% 0% FY19/FY18 1Q Y/Y FY19/FY18 1Q Y/Y DCS Revenue Per Truck Per Week DCS Loads $6,000 4,000,000 $5,500 $5,000 3,500,000 3,353,553 $4,272 $4,378 $4,238 $4,326 2,
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue increased 12% compared to the first quarter 2019. $1,500 Volumes increased 2% and revenue per load increased 9%, mostly due to customer freight mix changes. Contractual $1,400 $1,335 $1,348 volumes represented approximately 74% of the total load
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income/(Loss) Change 40% 120% 30% 135% 30% 35% 20% 20% -65% 12% -37% 10% -165% -122% 1% -265% 0% -365% -10% -371% -465% FY17/FY16 FY18/FY17 FY19/FY18 1Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 1Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,400,
Slide 14: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS)* FMS Revenue (in millions) $600 FMS revenue increased 39% during the current quarter over the $567 same period 2019. Stop count within FMS increased 67% during $550 the current quarter over the same period 2019 primarily from the February 2019 and December 2019 acquisitions
Slide 15: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS) FMS Revenue Change FMS Operating Income/(Loss) 70% (in millions) 60% 51% $4.0 50% $2.0 $0.2 40% 39% $0.0 ($2.0) 30% ($1.5) ($4.0) 20% ($3.3) ($6.0) 10% ($8.0) ($10.0) 0% ($8.8) ($12.0) FY19/FY18 1Q Y/Y 2018 2019 1Q 19 1Q 20 FMS Stops 5,000,000 FMS Average Trucks 1,600 4,500
Slide 16: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 JBT revenue increased 3% from the same period in 2019. Revenue excluding fuel surcharges also increased 3% primarily $500 $484 from a 15% increase in load count partially offset by a 10% decrease in revenue per load compared to a year ago. Revenue $450
Slide 17: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Tractors JBT Nonpaid Empty Mile Percentage 25.0% 2,500 18.9% 19.1% 18.4% 2,250 20.0% 1,990 1,958 2,074 16.7% 2,000 1,814 15.0% 1,750 1,500 10.0% 1,250 1,000 5.0% 750 500 0.0% 2018 2019 1Q 19 1Q 20 2018 2019 1Q 19 1Q 20 JBT Loads JBT Revenue per Tractor per Wee
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 March 31, 2020 December 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 48,454 $ 35,000 Accounts receivable, net 978,280 1,011,829 Prepaid expenses and other 371,235, 434,470 Total current assets 1,397,969 1,481,299 Property and equipment 5,682,573 5,640,806 Less accumulate
Slide 20: Thank You
THANK YOU 20
J.B. Hunt Transport Services — Q1 2020 Earnings Presentation on 6ix