J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q2 2015 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, 2015
Slide 1: J.B. Hunt Transport Services, Inc. 2Q 2015 Results
J.B. Hunt Transport Services, Inc. 2Q 2015 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 2Q 2015 Revenue Mix • Intermodal (JBI) 6% • Largest, 100% 53’ high-cube container fleet 11% • Largest drayage fleet in North America JBI • Priority loading and unloading at major rail DCS terminals ICS JBT • Dedicated Contract Services (DCS) 24% 59% • Fleet creation
Slide 4: 2Q 2015 Results vs. 2Q 2014
2Q 2015 Results vs. 2Q 2014 • 2Q 2015 Revenue: $1.54 billion; down 0.5% • 2Q 2015 Revenue, excl FSC: $1.36 billion; up 7% • 2Q 2015 Operating Income: $174 million; up 9% • 2Q 2015 EPS: $0.88 vs. $0.79 • Segment Performance • Intermodal (JBI) • Revenue: $905 million; down 3% • Operating Income: $118.
Slide 5: 2Q 2015 Results - Consolidated
2Q 2015 Results - Consolidated Revenue Operating Income (in millions) (in millions) $7,000 $700 $632 $600 $577 $530 $6,165 $500 $444 $6,000 $358 $5,585 $400 $348 $300 $248 $5,055 $5,000 $200 $174 $159 $4,527 $100 $- $4,000 $3,793 2008 2009 2010 2011 2012 2013 2014 2Q 14 2Q 15 $3,732 Diluted EPS $3,2
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. wi | | | al Atenas Segment Discussion
Slide 8: JBI - Intermodal
JBI - Intermodal JBI Revenue (in millions) • Overall volumes increased 2% over the same $3,687 period in 2014. $3,456 $3,500 • Eastern network realized load growth of 3% and $3,071 Transcontinental loads grew 1% over the second $3,000 quarter 2014. $2,673 • Revenue decreased 3% reflecting the 2% $2,
Slide 9: JBI Performance
JBI Performance JBI Revenue Growth JBI Operating Income Growth 30% 15% 15% 24% 13% 19% 20% 7% 5% 10% 3% 5% -3% -5% 0% FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 1,694 1,690 $2,200 $2,169 $2,169 1,680 $2,167 1,670 $2
Slide 10: DCS - Dedicated
DCS - Dedicated DCS Revenue (in millions) • Revenue increased 5% during the current $1,600 quarter over the same period in 2014. • A net additional 413 revenue producing trucks, $1,394 $1,400 approximately 58% representing private fleet $1,231 conversions versus traditional dedicated $1,200 capacity
Slide 11: DCS Performance
DCS Performance DCS Operating Income Growth DCS Revenue Growth 15% 40% 14% 34% 13% 30% 10% 20% 13% 5% 5% 10% 6% 5% 0% 0% -5% -10% FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y DCS Average Length of Haul DCS Loads 200 190 2,500,000 177 178 176 2,101,707 1,835,872 2,000,000
Slide 12: ICS - Non-Asset Based
ICS - Non-Asset Based ICS Revenue (in millions) • Revenue was flat compared to the second $750 quarter 2014. $718 $700 • Volumes increased 12% while revenue per load $650 decreased 10%, primarily from lower fuel prices and less transactional customer demand versus $600 second quarter 2014. $550 $537
Slide 13: ICS Performance
ICS Performance ICS Revenue Growth ICS Operating Income Change 95% 90% 40% 35% 34% 30% 28% 65% 25% 20% 18% 35% 23% 15% 10% 5% 5% -3% 1% 0% -25% -21% FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y FY12/FY11 FY13/FY12 FY14/FY13 2Q Y/Y ICS Gross Profit Margin ICS Loads 20% 500,000 453,410 15.2% 388,987 13.0% 400
Slide 14: JBT - Truckload
JBT - Truckload JBT Revenue (in millions) • Revenue for the current quarter was down 3.5% $800 compared to the same period in 2014. • Revenue excluding fuel surcharges increased 2%, primarily from increased truck count and $676 core rate increases of approximately 6.5% partially offset by less spot
Slide 15: JBT Performance
JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 79 431 435 411 77.1 384 77 400 75 300 73.3 73 71.8 200 71 100 69 67.8 0 67 2013 2014 2Q 14 2Q 15 2013 2014 2Q 14 2Q 15 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 $4,068 $4,226 386,875 $3,828 $3,802
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 Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, 2015 December 31, 2014 ASSETS Current assets: Cash and cash equivalents $ 5,586 $ 5,961 Accounts Receivable 665,241 653,795 Prepaid expenses and other 97,172 201,743 Deferred income taxes 18,631 18,631 Total curr
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