J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q3 2016 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, 2016
Slide 1: J.B. Hunt Transport Services, Inc. Q3 2016 Results
J.B. Hunt Transport Services, Inc. Q3 2016 Results
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 statem
Slide 3: Distinct Complementary Businesses
Distinct Complementary Businesses 3Q 2016 Revenue Mix • Intermodal (JBI) 6% • Largest, 100% 53’ high-cube container fleet • Largest drayage fleet in North America 14% JBI • Priority loading and unloading at major rail DCS terminals ICS JBT • Dedicated Contract Services (DCS) • Fleet creation, conver
Slide 4: 3Q 2016 Results vs. 3Q 2015
3Q 2016 Results vs. 3Q 2015 • 3Q 2016 Revenue: $1.69 billion; up 7% • 3Q 2016 Revenue, excl FSC: $1.54 billion; up 8% • 3Q 2016 Operating Income: $183 million; down 6% • 3Q 2016 EPS: $0.97 vs. $0.99; down 2% • Segment Performance • Intermodal (JBI) • Revenue: $970 million; up 2% • Operating Income:
Slide 5: 3Q 2016 Results - Consolidated
3Q 2016 Results - Consolidated Revenue Operating Income (in millions) (in millions) $7,000 $800 $716 $700 $632 $6,165 $6,188 $600 $577 $530 $6,000 $500 $444 $5,585 $348 $400 $300 $248 $5,055 $194 $183 $5,000 $200 $4,527 $100 $- $3,793 2009 2010 2011 2012 2013 2014 2015 3Q 15 3Q 16 $4,000 Diluted EPS
Slide 6: Key Points
Key Points • Industry leading Intermodal franchise • Differentiated & specialized Dedicated business • Independent brokerage/management services • Lighter Truckload asset model 6
Slide 7: Segment Discussion
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Slide 8: JBI - Intermodal
JBI - Intermodal JBI Revenue (in millions) $4,000 • Overall volumes increased 7% over the same period $3,687$3,665 in 2015. $3,500 $3,456 • The Eastern network realized load growth of 5% and Transcontinental loads grew 8% over the third $3,071 quarter 2015 as west coast outbound freight growth $3,00
Slide 9: JBI Performance
JBI Performance JBI Revenue Change JBI Operating Income Change 15% 25% 13% 19% 15% 7% 5% 5% 3% 4% 2% -5% -1% -7% -5% -15% FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,750 $2,200 $2,169 $2,067 $2,069 $2,100 1,656 1,660 1,6
Slide 10: DCS - Dedicated
DCS - Dedicated DCS Revenue (in millions) $1,600 • Revenue increased 6% during the current $1,451 quarter over the same period in 2015. $1,394 $1,400 • Productivity (revenue per truck per week) $1,231 increased by approximately 3% vs. 2015. $1,200 Productivity excluding fuel surcharge revenue $1,080
Slide 11: DCS Performance
DCS Performance DCS Revenue Change DCS Operating Income Change 15% 14% 50% 13% 40% 40% 10% 30% 16% 6% 20% 5% 4% 10% 6% 0% 0% -10% -5% FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y Revenue Per Truck Per Week DCS Loads 4,200 2,500,000 4,098 4,120 2,250,099 4,100 2,101,707 4
Slide 12: ICS - Non-Asset Based
ICS - Non-Asset Based ICS Revenue (in millions) $750 $718 • Revenue increased 35% in the current quarter $699 $700 vs. the third quarter 2015. $650 • Load volume increased 88% while revenue per $600 load decreased 29% due to lower fuel prices, freight mix changes driven by customer $550 $537 demand
Slide 13: ICS Performance
ICS Performance ICS Revenue Change ICS Operating Income Change 40% 100% 90% 34% 35% 85% 35% 30% 70% 25% 55% 20% 18% 40% 20% 15% 25% 10% 10% 5% -5% -3% 0% -20% -3% -26% -5% -35% FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y FY13/FY12 FY14/FY13 FY15/FY14 3Q Y/Y ICS Gross Profit Margin ICS Loads 20% 600,000 542
Slide 14: JBT - Truckload
JBT - Truckload JBT Revenue (in millions) $600 • Revenue was flat from the same period in 2015. • Revenue excluding fuel surcharge increased 2%, $504 primarily from a 4% increased truck count a 2% $484 $500 increase in utilization offset with an $479 $447 approximate 4% decrease in rate per mile exc
Slide 15: JBT Performance
JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 90 448 454 453 88 87.2 411 400 86 85.6 83.8 84 300 82 80 200 78 76 73.9 100 74 72 0 70 2014 2015 3Q 15 3Q 16 2014 2015 3Q 15 3Q 16 JBT Loads JBT Revenue per Tractor per Week 400,000 370,555 366,297 $5,000 $4,068
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
Slide 17: Balance Sheet
Balance Sheet J.B. HUNT TRANSPORT SERVICES, INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, 2016 December 31, 2015 ASSETS Current assets: Cash and cash equivalents $ 5,481 $ 5,566 Accounts Receivable 775,020 654,542 Prepaid expenses and other 61,900 197,817 Total
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