J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q4 2016 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, January 2017
Slide 1: J.B. Hunt Transport Services, Inc. Q4 2016 Results
J.B. HUNT TRANSPORT SERVICES, INC. Q4 2016 RESULTS
Slide 2: Forward-looking statements
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 statements. These
Slide 3: Distinct and Complementary Businesses
DISTINCT AND COMPLEMENTARY BUSINESSES 4Q 2016 Revenue Mix Intermodal (JBI) 6% • Largest, 100% 53’ high-cube container fleet 13% • Largest drayage fleet in North America JBI • Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) ICS • Fleet creation, conversion
Slide 4: 4Q 2016 Results vs. 4Q 2015
4Q 2016 RESULTS VS. 4Q 2015 Overview Segment Performance • 4Q 2016 Revenue: Intermodal (JBI) • Revenue: $998 million; up 3% $1.72 billion; up 6% • Operating Income: $124 million; down 3% • 4Q 2016 Revenue, excl FSC: $1.56 billion; up 6% Dedicated Contract Services (DCS) • Revenue: $398 million; up 8
Slide 5: 4Q 2016 Results Consolidated
4Q 2016 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 $193 $194 $5,000 $200 $4,527 $100 $- $3,793 $4,000 2010 2011 2012 2013 2014 2015 2016 4Q 15 4Q 16 Dilute
Slide 6: Key Points
KEY POINTS • Industry leading Intermodal franchise • Differentiated & 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) • Total volumes grew 5% over the same period in 2015. $4,000 $3,687 $3,665 $3,796 • Eastern network loads were flat and transcontinental loads $3,456 increased 9% compared to the fourth quarter 2015. $3,500 $3,071 • Revenue increased 3%, reflecting volume g
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 10% 10% 7% 4% 4% 5% 5% 3% 3% 0% 0% -3% -5% -1% -6% -5% -10% FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,100 $2,067 $2,069 1,685 $2,030 $1
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) • Revenue increased 8% during the current quarter over the same period 2015. $1,600 $1,533 $1,451 • Productivity (revenue per truck per week) increased $1,394 approximately 5% vs. 2015. Productivity excluding fuel $1,400 surcharge revenue increased approxima
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 15% 50% 13% 40% 40% 37% 10% 26% 8% 30% 6% 4% 20% 5% 10% 6% 0% 0% FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 2,500,000 2,401,332 4,300 4,247 2,250,099 4,0
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS Revenue (in millions) • Revenue increased 22% in the current quarter vs. the fourth $900 quarter 2015 mostly due to a 38% increase in volume offset by $852 a 12% decrease in revenue per load and freight mix changes $800 driven by customer demand. $718 $700 • Cont
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 95% 90% 34% 75% 30% 22% 22% 55% 20% 35% 20% 15% 10% 2% -5% 0% -25% -45% -3% -52% -10% -65% FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 4Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,000,000 16.0% 8
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) • Revenue for the current quarter decreased 3% from the $550 same period in 2015. $504 • Revenue excluding fuel surcharges also decreased 3% $500 $479 $484 primarily from a 3% decrease in rate per mile due to core $450 customer rate decreases of approximatel
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 95 91.3 448 455 454 439 90 450 85.6 83.9 85 82.6 400 80 350 75 300 70 2015 2016 4Q 15 4Q 16 2015 2016 4Q 15 4Q 16 JBT Loads JBT Revenue per Tractor per Week 500,000 $4,000 $3,698 $3,663 $3,540 $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 supp
Slide 17: Balance Sheet
J.B. HUNT TRANSPORT SERVICES, INC. BALANCE SHEET CONDENSED CONSOLIDATED BALANCE SHEETS IN THOUSANDS | UNAUDITED 17
J.B. Hunt Transport Services — Q4 2016 Earnings Presentation on 6ix