J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q2 2020 Earnings Presentation
20 slides from J.b. Hunt Transport Services's earnings presentation, 2020
Slide 1: J.B. Hunt Q2 2020 Results
J.B. HUNT Q2 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 2Q 2020 Revenue Mix • Largest drayage fleet in North America • Priority loading and unloading at major rail terminals 5% 6% Dedicated Contract Services (DCS) JBI • Fleet creation, conversion, and augme
Slide 4: 2Q 2020 Results vs. 2Q 2019
1Q 2020 RESULTS VS. 1Q 2019 OVERVIEW SEGMENT PERFORMANCE 2Q 2020 Revenue: Intermodal (JBI) $2.15 billion; down 5% Revenue: $1.07 billion; down 7% Operating Income: $107 million; down 14% 2Q 2020 Revenue, excl FSC: $1.99 billion; down 1% Dedicated Contract Services (DCS) Revenue: $533 million; down 1
Slide 5: 2Q Results Consolidated
2Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income $10,000 (in millions) $9,165 $900 $9,000 $800 $8,615 $716 $721 $681 $734 $700 $577 $632 $624 $600 $530 $8,000 $500 $7,190 $400 $7,000 $6,555 $300 $6,165 $6,188 $200 $193 $175 $6,000 $100 $5,585 $- $5,055 $5,000 2012 2013 2014 2015 2016 2
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 declined 2% over the same period in 2019. $5,000 Transcontinental loads increased approximately 3% and Eastern $4,717 $4,745 network volumes declined 7% from second quarter 2019. As $4,500 previously released, COVID-19 related volume disrup
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 20% 15% 15% 15% 12% 10% 10% 8% 5% 5% 0% 1% -2% -5% 0% -10% -5% -9% -15% -14% -10% -7% -20% FY17/FY16 FY18/FY17 FY19/FY18 2Q Y/Y FY17/FY16 FY18/FY17 FY19/FY18 2Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue decreased 1% during the current quarter over the same period in 2019. Productivity, defined as revenue per truck per $2,400 week, decreased approximately 3% vs. 2019. Productivity excluding fuel surcharge revenue was flat compared to a year ago.
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change 25% DCS Operating Income Change 19% 50% 20% 42% 40% 15% 30% 10% 5% 20% 9% 0% 10% -1% -5% 0% FY19/FY18 2Q Y/Y FY19/FY18 2Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 6,000 4,000,000 3,500,000 3,353,553 5,000 4,378 4,398 4,250 3,000,000 4,272 2,728,683
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue decreased 9% compared to the second quarter $1,500 2019. Volumes decreased 11% but revenue per load $1,400 increased approximately 2% primarily due to customer freight $1,335 $1,348 mix. Contractual volumes represented approximately 71% of $1,30
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income/(Loss) 40% (in millions) 30% $60.0 30% $50.2 $50.0 20% 20% $40.0 $30.0 10% $20.0 1% $10.0 0% $0.0 -10% ($10.0) ($0.6) -9% ($11.1) ($20.0) ($13.1) -20% 2018 2019 2Q 19 2Q 20 FY17/FY16 FY18/FY17 FY19/FY18 2Q Y/Y ICS Gross Profit Marg
Slide 14: Final Mile Services (FMS)
FINAL MILE SERVICES (FMS)* FMS Revenue (in millions) $600 FMS revenue decreased 2% compared to the same period 2019. $567 Stop count within FMS decreased 5% during the current quarter $550 vs. a year ago, primarily from the temporary suspension of operations at several of our customers’ sites as a r
Slide 15: Final Mile Services (FMS) Performance
FINAL MILE SERVICES (FMS) FMS Revenue Change FMS Operating Income/(Loss) (in millions) 60% 51% 50% $4.0 40% $0.0 30% ($4.0) ($1.5) ($5.2) 20% ($8.0) 10% ($8.8) ($12.0) 0% ($16.0) -10% -2% ($15.8) ($20.0) FY19/FY18 2Q Y/Y 2018 2019 2Q 19 2Q 20 FMS Stops FMS Average Truck 5,000,000 4,432,591 2,000 4,5
Slide 16: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 JBT revenue increased 9% from the same period in 2019. Revenue excluding fuel surcharge revenue increased 13% $500 $484 primarily from a 17% increase in load count partially offset by a 4% decrease in revenue per load excluding fuel surcharge $450 $417
Slide 17: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Tractors JBT Average Nonpaid Empty Mile Percentage 2,500 21.0% 18.9% 18.6% 19.1% 19.0% 1,990 1,958 1,973 1,979 2,000 16.7% 17.0% 15.0% 1,500 13.0% 1,000 11.0% 9.0% 500 7.0% - 5.0% 2018 2019 2Q 19 2Q 20 2018 2019 2Q 19 2Q 20 JBT Loads JBT Revenue per Tractor pe
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 June 30, 2020 December 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 274,654 $ 35,000 Accounts Receivable, net 950,636 1,011,829 Prepaid expenses and other 319.407 434.470 Total current assets 1,544,697 1,481,299 Property and equipment 5,730,544 5,640,806 Less accumulated
Slide 20: Thank You
THANK YOU 20
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