J.b. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.b. Hunt Transport Services — Q3 2018 Earnings Presentation
18 slides from J.b. Hunt Transport Services's earnings presentation, 2018
Slide 1: Q3 2018 Results
J.B. HUNT Q3 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 3Q 2018 Revenue Mix Intermodal (JBI) 5% Largest, 100% 53’ high-cube container fleet 16% Largest drayage fleet in North America JBI Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) ICS Fleet creation, conversion, and au
Slide 4: 3Q 2018 Results vs. 3Q 2017
3Q 2018 RESULTS VS. 3Q 2017 OVERVIEW SEGMENT PERFORMANCE 3Q 2018 Revenue: Intermodal (JBI) $2.21 billion; up 20% Revenue: $1.22 billion; up 16% Operating Income: $120.3 million; up 10% 3Q 2018 Revenue, excl FSC: $1.94 billion; up 17% Dedicated Contract Services (DCS) Revenue: $543 million; up 24% 3Q
Slide 5: 3Q 2018 Results Consolidated
Operating Income 3Q 2018 RESULTS $800 (in millions) CONSOLIDATED $700 $577 $632 $716 $721 $624 $600 $530 $444 $500 Revenue $348 (in millions) $400 $300 $8,000 $175 $200 $165 $7,190 $100 $7,000 $6,555 $6,165 $6,188 $- 2010 2011 2012 2013 2014 2015 2016 2017 3Q 17 3Q 18 $6,000 $5,585 $5,055 $5,000 Dil
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)
Overall volumes increased 1% over the same period in 2017. INTERMODAL (JBI) The Eastern network realized load growth of 9.5% while Transcontinental loads declined 5% compared to the third JBI Revenue quarter 2017. The network disruption caused from five major (in millions) derailments in our nationa
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 20% 15% 16% 10% 15% 10% 10% 8% 4% 5% 5% 4% 0% 0% -5% -1% -5% -6% -9% FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y -10% FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y JBI Average Length of Haul 1,700 JBI Revenue per Load 1,685 1,681 $2,400 $2,
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS revenue increased 24% during the current quarter over the same period in 2017. Productivity (revenue per truck per week) DCS Revenue increased by approximately 7% vs. 2017. Productivity excluding (in millions) fuel surcharge revenue increased approximately 4% from a year ago prim
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 30% 50% 39% 24% 40% 25% 30% 26% 20% 20% 15% 10% 12% 0% 10% 6% -10% 4% 5% -20% -17% -18% 0% -30% FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 3,000,000 4,70
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS revenue increased 28% in the current quarter vs. the third quarter 2017. Volumes increased 41% while revenue per load decreased ICS Revenue approximately 9% primarily due to an increased mix of contractual (in millions) less-than-truckload volume compared to thir
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Operating Income Change ICS Revenue Change 40% 95% 28% 75% 30% 22% 55% 20% 40% 20% 35% 20% 15% 1% 10% -5% -25% 0% -45% -3% -37% -10% -65% FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y FY15/FY14 FY16/FY15 FY17/FY16 3Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,200,000 992,834
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue JBT revenue increased 14% from the same period in 2017. (in millions) Revenue excluding fuel surcharge increased approximately $550 13%, primarily from a 19% increase in rates per loaded mile $504 offset by a 5% decrease in length of haul compared to a year $500 $484 $479
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 88 500 85.6 85.1 86.0 86 455 83.7 84 450 435 437 417 82 80 400 78 76 350 74 72 300 70 2016 2017 3Q 17 3Q 18 2016 2017 3Q 17 3Q 18 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 $4,366 385,298 $
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, 2018 December 31, 2017 ASSETS Current assets: Cash and cash equivalents $ 7.587 $s 14,612 Accounts receivable 1,095,638 920,767 Prepaid expenses and other 239,257 403,349 Total current assets 7,342,482 1,338,728 Property and equipment 5,064,126 4,670,464 Less accumulated
Slide 18: Thank You
THANK YOU 18
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