J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q3 2019 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2019
Slide 1: J.B. Hunt Q3 2019 Results
J.B. HUNT Q3 2019 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 3Q 2019 Revenue Mix Intermodal (JBI) 4% Largest, 100% 53’ high-cube container fleet 14% Largest drayage fleet in North America JBI Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) 52% Fleet creation, conversion, and augm
Slide 4: 3Q 2019 Results vs. 3Q 2018
3Q 2019 RESULTS VS. 3Q 2018 OVERVIEW SEGMENT PERFORMANCE 3Q 2019 Revenue: Intermodal (JBI) $2.4 billion; up 7% Revenue: $1.24 billion; up 2% Operating Income: $88.7 million; down 26% 3Q 2019 Revenue, excl FSC: $2.1 billion; up 9% Dedicated Contract Services (DCS) Revenue: $696 million; up 28% 3Q 201
Slide 5: 3Q Results Consolidated
3Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income (in millions) $10,000 $800 $716 $721 $681 $700 $9,000 $632 $624 $8,615 $577 $600 $530 $8,000 $500 $444 $7,190 $400 $7,000 $300 $6,555 $175 $168 $6,165 $6,188 $200 $6,000 $5,585 $100 $5,055 $- $5,000 2011 2012 2013 2014 2015 2016 2017 201
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 were flat with the same period in 2018. $5,000 $4,717 Transcontinental loads increased 7% while the Eastern network loads declined 11% compared to the third quarter 2018. $4,500 Revenue increased 2% reflecting flat volumes and an $4,084 appr
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 20% 15% 10% 15% 0% 10% 8% -2% -6% -10% -9% 5% 4% -20% 2% 0% -30% -26% FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y JBI Revenue per Load JBI Average Length of Haul 1,800 $2,500 $2,396 $2,400 1
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue increased 28% during the current quarter over the $2,400 same period in 2018. Productivity (revenue per truck per week) $2,163 increased by approximately 9% vs. 2018. Productivity excluding fuel $2,200 surcharge revenue increased approximately 11
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 140% 28% 124% 26% 120% 25% 100% 20% 80% 60% 15% 40% 12% 26% 13% 20% 10% 0% 6% 5% -20% -17% -40% 0% FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 3,500,0
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) ICS revenue decreased 3% in the current quarter vs. the third quarter 2018. Volumes decreased 4% while revenue per load $1,500 increased approximately 2% primarily due to a decreased mix of contractual less-than-truckload volume and a competitive pricing $1
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Operating Income Change ICS Revenue Change 150% 40% 120% 100% 30% 30% 50% 22% 20% 1% 20% 0% -50% 10% -37% -100% 0% -150% -3% -155% -10% -200% FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 3Q Y/Y ICS Gross Profit Margin ICS Loads 1,400,000 20% 1,2
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 JBT revenue decreased 11% from the same period in 2018. $504 Revenue excluding fuel surcharge decreased approximately $500 10%, primarily from a 5% decrease in rates per loaded mile, a $484 2% decrease in length of haul, and a 3% decrease in load $450 $
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 100 450 435 95.0 427 95 417 409 90 400 85.1 85.5 85 83.7 350 80 75 300 70 2017 2018 3Q 18 3Q 19 2017 2018 3Q 18 3Q 19 JBT Loads JBT Revenue per Tractor per Week 400,000 $5,000 370,591 355,038 $4,366 $4,14
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, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $ 75,132 $ 7,600 Accounts receivable, net 1,051,027 1,051,698 Prepaid expenses and other, net 257,297 443,683 Total current assets 1,383,456 1,502,981 Property and equipment 5,615,289 5,329,243 Less a
Slide 18: Thank You
THANK YOU 18
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