J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q3 2017 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2017
Slide 1: J.B. Hunt Q3 2017 Results
J.B. HUNT Q3 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) 3Q 2017 Revenue Mix Largest, 100% 53’ high-cube container fleet 5% Largest drayage fleet in North America 14% Priority loading and unloading at major rail terminals JBI DCS Dedicated Contract Services (DCS) ICS Fleet creation, conversion, and au
Slide 4: 3Q 2017 Results vs. 3Q 2016
3Q 2017 RESULTS VS. 3Q 2016 OVERVIEW SEGMENT PERFORMANCE 3Q 2017 Revenue: Intermodal (JBI) $1.84 billion; up 9% Revenue: $1.05 billion; up 8% Operating Income: $109.1 million; down 7% 3Q 2017 Revenue, excl FSC: $1.66 billion; up 8% Dedicated Contract Services (DCS) Revenue: $438 million; up 11% 3Q 2
Slide 5: 3Q 2017 Results Consolidated
3Q 2017 RESULTS CONSOLIDATED Revenue Operating Income (in millions) (in millions) $7,000 $800 $6,555 $716 $721 $700 $6,165 $6,188 $577 $632 $600 $530 $6,000 $444 $500 $5,585 $348 $400 $5,055 $300 $183 $165 $5,000 $200 $4,527 $100 $- $4,000 $3,793 2010 2011 2012 2013 2014 2015 2016 3Q 16 3Q 17 $3,000
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) Overall volumes increased 6% over the same period in 2016. $3,796 $4,000 The Eastern network realized load growth of 2% and $3,687 $3,665 Transcontinental loads grew 8% over the third quarter 2016. $3,456 $3,500 Revenue increased 8% reflecting the 6% volume
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 10% 10% 8% 7% 4% 4% 5% 5% 3% 0% 0% -5% -1% -6% -7% -5% -10% FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,100 $2,067 1,685 $2,030 $1,981 $1
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) $1,600 $1,533 DCS revenue increased 11% during the current quarter over $1,451 $1,394 the same period in 2016. $1,400 Productivity (revenue per truck per week) increased by $1,231 approximately 2% vs. 2016. $1,200 $1,080 $1,031 A net additional 1,024 revenue
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 15% 50% 40% 13% 40% 11% 26% 30% 10% 20% 6% 6% 10% 4% 0% 5% -10% -20% -18% 0% -30% FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 2,500,000 2,401,332 4,300 2,
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS Revenue (in millions) ICS revenue increased 16% in the current quarter vs. the third $900 $852 quarter 2016. Revenue per load increased 17% from increased spot market activity while load volumes decreased 1% vs third $800 $718 quarter 2016. $699 $700 Contractual
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 100% 34% 90% 80% 30% 22% 60% 20% 16% 40% 20% 20% 10% 1% 0% 0% -20% -14% -3% -10% -40% FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 3Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,000,000 852,179 15.3
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 $504 JBT revenue was down 5% from the same period in 2016. $500 $484 $479 Revenue excluding fuel surcharge decreased 6%, primarily $450 from a 7% decrease in load count from third quarter 2016. $391 $386 $386 $388 Revenue per load increased approximatel
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 90 88 87.2 448 455 453 85.6 86.0 437 86 450 84 83.9 82 400 80 78 76 350 74 72 300 70 2015 2016 3Q 16 3Q 17 2015 2016 3Q 16 3Q 17 JBT Loads JBT Revenue per Tractor per Week $4,000 $3,698 500,000 $3,458
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 September 30, 2017 December 31, 2016 ASSETS Current assets: Cash and cash equivalents $ 7,707 $ 6,377 Accounts receivable 858,720 745,288 Prepaid expenses and other 140,164 194,016 Total current assets x 1,006,591 945,681 Property and equipment + 4,507,917 4,258,915 Less accumulated de
Slide 18: Thank You
THANK YOU 18
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