J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q2 2017 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2017
Slide 1: J.B. Hunt Q2 2017 Results
J.B. HUNT Q2 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) 2Q 2017 Revenue Mix Largest, 100% 53’ high-cube container fleet 5% Largest drayage fleet in North America 13% Priority loading and unloading at major rail terminals JBI Dedicated Contract Services (DCS) DCS ICS Fleet creation, conversion, and au
Slide 4: 2Q 2017 Results vs. 2Q 2016
2Q 2017 RESULTS VS. 2Q 2016 OVERVIEW SEGMENT PERFORMANCE 2Q 2017 Revenue: Intermodal (JBI) $1.73 billion; up 7% Revenue: $1.0 billion; up 7% 2Q 2017 Revenue, excl FSC: Operating Income: $110 million; up 4% $1.55 billion; up 5% Dedicated Contract Services (DCS) 2Q 2017 Operating Income: Revenue: $412
Slide 5: 2Q 2017 Results Consolidated
2Q 2017 RESULTS CONSOLIDATED Revenue Operating Income (in millions) (in millions) $7,000 $800 $6,555 $716 $721 $700 $632 $6,165 $6,188 $600 $577 $444 $530 $6,000 $500 $5,585 $348 $400 $5,055 $300 $5,000 $176 $164 $200 $4,527 $100 $- $4,000 $3,793 2010 2011 2012 2013 2014 2015 2016 2Q 16 2Q 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) JBI load volumes grew 5% over the same period in 2016. $4,000 $3,796 Transcontinental loads grew 10% while Eastern network volumes $3,687 $3,665 were down 2% compared to a year ago. $3,456 $3,500 Revenue increased 7% reflecting the 5% volume growth and an $
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 10% 10% 7% 7% 4% 4% 5% 4% 5% 3% 0% 0% -5% -1% -6% -5% -10% FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,100 $2,067 1,677 1,675 $1,981 $1,9
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) $1,600 $1,533 DCS revenue increased 8% during the current quarter over the $1,451 $1,394 same period 2016. $1,400 Productivity (revenue per truck per week) increased $1,231 approximately 2% vs. 2016. Productivity excluding fuel $1,200 $1,080 surcharges was f
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 15% 50% 13% 40% 40% 26% 10% 30% 8% 6% 20% 4% 6% 5% 10% 0% -4% 0% -10% FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 2,500,000 2,401,332 4,300 2,250,099 4,15
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS Revenue (in millions) ICS revenue was up 9% compared to the second quarter 2016. $900 $852 Volumes increased 20% while revenue per load decreased 9%, primarily due to freight mix changes driven by customer demand, $800 $718 compared to second quarter 2016. $699 $
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 100% 90% 34% 80% 30% 60% 22% 40% 20% 20% 20% 1% 0% 9% -20% 10% -40% -60% 0% -80% -3% -100% -10% -120% -102% FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 2Q Y/Y ICS Gross Profit Margin ICS Loads 20%
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 $504 JBT revenue for the current quarter was down 4% compared to $500 $479 $484 the same period in 2016. $450 Revenue excluding fuel surcharges decreased 6% from a year ago. Rate per loaded mile excluding fuel surcharges was up $391 $386 $386 $388 $400
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 90 88 87.2 455 460 85.6 448 86 85.1 431 83.9 450 84 82 400 80 78 76 350 74 72 300 70 2015 2016 2Q 16 2Q 17 2015 2016 2Q 16 2Q 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 June 30, 2017 December 31, 2016 ASSETS Current assets: Cash and cash equivalents $ 7,274 $ 6,377 Accounts Receivable 749,042 745,288 Prepaid expenses and other 152,035 194,016 Total current assets 908,351 945.681 Property and equipment 4,384,981 4,258,915 Less accumulated depreciation
Slide 18: Thank You
THANK YOU 18
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