J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q4 2018 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2019
Slide 1: J.B. Hunt Q4 2018 Results
J.B. HUNT Q4 2018 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 4Q 2018 Revenue Mix Intermodal (JBI) Largest, 100% 53’ high-cube container fleet 5% Largest drayage fleet in North America 15% Priority loading and unloading at major rail terminals JBI Dedicated Contract Services (DCS) DCS Fleet creation, conversion, and augmen
Slide 4: 4Q 2018 Results vs. 4Q 2017
4Q 2018 RESULTS VS. 4Q 2017 OVERVIEW SEGMENT PERFORMANCE 4Q 2018 Revenue: Intermodal (JBI) $2.32 billion; up 16% Revenue: $1.26 billion; up 15% Operating Income: $32.4 million; down 65% 4Q 2018 Revenue, excl FSC: $2.03 billion; up 15% Dedicated Contract Services (DCS) Revenue: $596 million; up 25% 4
Slide 5: 4Q 2018 Results Consolidated
4Q 2018 RESULTS CONSOLIDATED Operating Income Revenue (in millions) (in millions) $800 $716 $721 $681 $700 $632 $624 $10,000 $577 $600 $530 $500 $444 $9,000 $8,615 $400 $8,000 $300 $200 $146 $7,190 $123 $7,000 $100 $6,555 $6,165 $6,188 $- $6,000 2011 2012 2013 2014 2015 2016 2017 2018 4Q 17 4Q 18 $5
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 JBI total volumes declined 1% over the same period in 2017. (in millions) Eastern network loads grew at 5% and transcontinental loads $5,000 decreased 4% compared to the fourth quarter 2017. Revenue $4,717 increased 15%, reflecting a 16% increase in revenue per load, $4,
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 10% 15% 0% 15% -2% 15% -10% -6% -9% -20% 10% -30% 8% -40% 4% -50% 5% -60% -70% -65% 0% FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y -80% FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS revenue increased 25% during the current quarter over the DCS Revenue same period 2017. Productivity (revenue per truck per week) (in millions) increased approximately 7% vs. 2017. Productivity excluding fuel $2,400 surcharge revenue increased approximately 5% from a year ago $2,
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 80% 70% 26% 25% 70% 25% 60% 50% 20% 40% 26% 15% 30% 12% 13% 20% 10% 10% 6% 0% 5% -10% -20% 0% -17% -30% FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 4,
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS revenue increased 7% in the current quarter vs. the fourth ICS Revenue quarter 2017. Volume increased 14% but revenue per load (in millions) $1,400 decreased 6.4%, mostly due to customer mix changes and $1,335 decreased spot market activity, compared to the prior
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Operating Income Change ICS Revenue Change 40% 150% 120% 30% 120% 30% 90% 22% 20% 60% 20% 43% 30% 1% 7% 0% 10% -30% -37% 0% -60% FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 4Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,400,000 16.9% 1,234,632
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue JBT revenue increased 21% from the same period in 2017. (in millions) Revenue excluding fuel surcharges increased approximately 21% compared to a year ago. Revenue per load increased 10% $550 primarily from an 18% increase in rates per loaded mile offset $504 $500 $484 by
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 450 95 435 427 432 91.3 405 90 400 85.1 85.5 84.0 85 80 350 75 300 70 2017 2018 4Q 17 4Q 18 2017 2018 4Q 17 4Q 18 JBT Loads JBT Revenue per Tractor per Week 400,000 $5,000 370,591 355,038 $4,513 $4,148 $3
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, 2018 December 31, 2017 ASSETS Current assets: Cash and cash equivalents $ 7,600 s 14,612 Accounts Receivable 1,051,698 920,767 Prepaid expenses and other 443,683 403,349 Total current assets 7,502,981 7,338,728 Property and equipment 5,329,243 4,670,464 Less accumulated de
Slide 18: Thank You
THANK YOU 18
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