J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q3 2012 Earnings Presentation
18 slides from J.B. Hunt Transport Services's earnings presentation, October 2012
Slide 1: J.B. Hunt Transport Services, Inc. 3Q 2012 Results
What’s your next move?™ J.B. Hunt Transport Services, Inc. 3Q 2012 Results SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED
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) 3Q 20 2 Revenue Mix 2012 i Largest, 100% 53’ high‐cube container fleet 9% Largest drayage fleet in North America 9% JBI Priorityy loadingg and unloadingg at major j rail DCS terminals ICS Dedicated Contract Services (DCS) JBT Fleet creat
Slide 4: 3Q 2012 Results vs. 3Q 2011
3Q 2012 Results vs. 3Q 2011 3Q 2012 Revenue: $1.3 billion; up 11% 3Q 2012 Revenue excluding FSC: $1.05 billion; up 10.5% 3Q 2012 Operating p g Income: $$133 million;; up p 12% 3Q 2012 EPS: $0.65 vs. $0.57 Segment Performance • Intermodal (JBI) Revenue: $794 million; up 15% Operating In
Slide 5: 3Q 2012 Results – Consolidated
3Q 2012 Results – Consolidated Revenue Operating Income (in millions) (in millions) $5,000 $500 $444 $450 $4,527 $373 $369 $400 $4 500 $4,500 $358 $348 $350 $300 $248 $4,000 $250 $3,732 $3,793 $200 $3,490 $133 $3,500 $150 $119 $ $3,328 $3,203 $100 $50 $3,000 $‐ 2006 2007 2008 2009 2010 2011 3Q 11 3Q
Slide 6: Key Points
Key Points Industry leading Intermodal franchise Differentiated & specialized Dedicated business Independent brokerage/management services Lighter g Truckload asset model What’s your next move?™ | 6
Slide 7: Segment Discussion
What’s your next move?™ J.B. Hunt Transport Services, Inc. Segment Discussion SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED
Slide 8: JBI – Intermodal
JBI – Intermodal JBI Revenue (in millions) Both revenue and load volume increased $3,000 by 15% over 3Q 2011 $2,673 Eastern network grew by 22% and transcontinental growth showed an 11% $2,500 improvement, primarily related to $2,141 continued customer conversion of $2,000 $2 000 $1,952 highway
Slide 9: JBI Performance
JBI Performance JBI Operating Income Growth 30% 40% 25% 25% 29% 21% 30% 27% 20% 25% 15% 15% 20% 10% 10% 5% 0% 0% FY10/FY09 FY11/FY10 3Q Y/Y FY10/FY09 FY11/FY10 3Q Y/Y JBI Revenue per Load 1,730 $2,200 1,723 1,720 1,714 1,710 1,697 $2,148 $2,154 $2,153 1,700 $2,145 1,690 1,687 1,680 1 670 1,670 $2,10
Slide 10: DCS – Dedicated
DCS – Dedicated DCS Revenue (in millions) Revenue R increased i d 1% over 3Q 2011 $1,200 New accounts provided a net additional $1 $1,031 031 338 revenue‐producing trucks $1,000 $937 $927 Operating income decreased 14% $915 $907 compared to 3Q 2011 $800 $757 Operating O ti iincome ddecrease
Slide 11: DCS Performance
DCS Performance DCS Revenue Growth DCS Operating Income Growth 25% 40% 31% 20% 20% 30% 25% 14% 20% 15% 10% 10% 0% 5% FY10/FY09 FY11/FY10 3Q Y/Y 1% ‐10% 0% ‐14% FY10/FY09 FY11/FY10 3Q Y/Y ‐20% DCS Average Length of Haul DCS Loads 250 500,000 203 203 206 395,912 198 368,488 367,840 375,666 200 400,000
Slide 12: Final Mile Delivery
Final Mile Delivery 15 years experience in Final Mile Delivery Channel revenue retention >88% Crossdock Service Centers Currently operating 88 Capacity: > 2 million annual deliveries Reach: 98% U.S. population within 150 miles Commercial and Residential Restaurants, Agriculture, Home
Slide 13: ICS – Non‐Asset Based
ICS – Non‐Asset Based ICS RRevenue (in millions) R Revenue iincreased d 30% vs. 3Q 2011 d due to $400 a 38% increase in load volume Contractual volume growth accelerated to $356 $350 64% of total volume compared to 3Q 2011 $291 $300 Operating income increased 43% over 3Q $2 9 $259 $250 2011, p
Slide 14: ICS Performance
ICS Performance ICS Revenue Growth ICS Operating Income Change 35% 50% 43% 30% 41% 30% 25% 25% 22% 20% 0% 15% 12% FY10/FY09 FY11/FY10 3Q/YY 10% ‐25% 25% 5% ‐29% 0% ‐50% FY10/FY09 FY11/FY10 3Q Y/Y ICS G Gross P Profit fit M Margin i 15.0% 100,000 13.5% 90,009 12.8% 80,000 65,377 10.0% 60,000 40,000 5
Slide 15: JBT – Truckload
JBT – Truckload JBT Revenue (in millions) Revenue decreased 8% from 3Q 2011 on $1,000 $966 an approximately 9% reduction in fleet size Revenue excludingg fuel surcharges g $842 decreased 7% $800 Rate per mile, excluding FSC, increased $676 5 9% over 3Q 2011 5.9% $600 Rates from consistent sh
Slide 16: JBT Performance
JBT Performance JBT A Average LLength th off H Haull 78.0 600 77.4 508 500 462 77.0 400 76.0 300 75.0 73.8 200 74.0 100 73 0 73.0 ‐ 72.0 3Q 11 3Q 12 3Q 11 3Q 12 JBT Loads JBT Revenue per Tractor per Week 125,000 118,500 $5,000 113,170 111,525 109,268 $4,022 $3,994 $3,783 $4,000 $3,825 100,000 75,000
Slide 17: 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 18: Balance Sheet
Balance Sheet J.B. HUNT TRANSPORT SERVICES, INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, 2012 December 31, 2011 ASSETS Current assets: Cash and cash equivalents $ 5,659 $ 5,450 Accounts Receivable 504,252 411,479 Prepaid expenses and other 53,346 96,613 Total c
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