J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q1 2019 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2019
Slide 1: J.B. Hunt Q1 2019 Results
J.B. HUNT Q1 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 Intermodal (JBI) 1Q 2019 Revenue Mix Largest, 100% 53’ high-cube container fleet 5% Largest drayage fleet in North America 14% Priority loading and unloading at major rail terminals JBI Dedicated Contract Services (DCS) DCS Fleet creation, conversion, and augmenta
Slide 4: 1Q 2019 Results vs. 1Q 2018
1Q 2019 RESULTS VS. 1Q 2018 OVERVIEW SEGMENT PERFORMANCE 1Q 2019 Revenue: Intermodal (JBI) $2.09 billion; up 7% Revenue: $1.09 billion; up 2% Operating Income: $103 million; down 10% 1Q 2019 Revenue, excl FSC: $1.86 billion; up 8% Dedicated Contract Services (DCS) Revenue: $602 million; up 22% 1Q 20
Slide 5: 1Q Results Consolidated
1Q RESULTS CONSOLIDATED Revenue (in millions) Operating Income (in millions) $10,000 $800 $716 $721 $700 $681 $9,000 $632 $624 $8,615 $600 $530 $577 $500 $444 $8,000 $7,190 $400 $7,000 $6,555 $300 $6,165 $6,188 $168 $200 $169 $6,000 $5,585 $100 $5,055 $5,000 $- $4,527 2011 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 7% from the same period 2018. $5,000 Transcontinental loads declined 8% and the Eastern network load $4,717 volume declined 7% compared to prior year. Volumes were $4,500 affected by the expected rail lane closures and persistent s
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 10% 15% 15% 5% 10% 0% 8% -2% 5% 4% -5% 2% -6% -9% -10% 0% -10% FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,500 1,681 $2,400 $2,366 1,
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) DCS revenue increased 22% during the current quarter over the $2,200 same period 2018. Productivity (revenue per truck per week) $2,163 increased approximately 6% vs. 2018. Productivity excluding fuel $2,000 surcharges increased approximately 4% primarily fr
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 30% 26% 24% 26% 25% 20% 22% 13% 20% 10% 15% 12% 0% 10% 6% -10% 5% -20% -17% 0% FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y DCS Revenue Per Truck Per Week DCS Loads 4,700 3,500,000 4,534 4,589
Slide 12: Integrated (ICS)
INTEGRATED (ICS) ICS Revenue (in millions) $1,400 ICS revenue increased approximately 2% vs. first quarter 2018. $1,335 Volumes increased 15% while revenue per load decreased approximately 12% primarily due to customer mix changes and lower spot priced revenue per load compared to the same period $1
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 150% 120% 30% 30% 110% 22% 20% 20% 70% 10% 30% 1% 2% -10% 0% -22% -50% -37% -10% FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y FY16/FY15 FY17/FY16 FY18/FY17 1Q Y/Y ICS Gross Profit Margin ICS Loads 1,400,000 20% 1,234,632 15.4% 1
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) $550 JBT revenue increased 10% from the same quarter 2018. $504 Revenue excluding fuel surcharge increased approximately 12% $500 $484 from first quarter 2018 primarily from customer rate increases and a 4% increase in load count. Volume was negatively impac
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 105 102.9 100 453 436 450 95 435 427 90 400 85.5 85.1 84.9 85 80 350 75 300 70 2017 2018 1Q 18 1Q 19 2017 2018 1Q 18 1Q 19 JBT Loads JBT Revenue per Tractor per Week 400,000 $5,000 370,591 355,038 $4,
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 March 31, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents $ 52,363 $ 7,600 Accounts receivable, net 1,002,099 1,051,698 Prepaid expenses and other, net 382,772 443,683 Total current assets 1,437,234 1,502,981 Property and equipment 5,452,111 5,329,243 Less accum
Slide 18: Thank You
THANK YOU 18
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