J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — 5th Annual Global Industrials and Basic Materials Conference 2014
34 slides from J.B. Hunt Transport Services's conference presentation, Jun 5, 2014
Slide 1: 5th Annual Global Industrials and Basic Materials Conference
5th ANNUAL GLOBAL INDUSTRIALS AND BASIC MATERIALS CONFERENCE JUNE 5, 2014
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: Differentiating Factors
Differentiating Factors • Industry-leading intermodal franchise • Specialized dedicated business • Independent brokerage and management services • Full service truckload model 3
Slide 4: Supply Chain Solutions
Supply Chain Solutions —_ EF - 8 (2) MANUFACTURING DISTRIBUTION POINT OF PURCHASE CONSUMPTION [Scan] [ScemwTS) [ScenuT) ey | Intermodal Truckload Integrated Dedicated Capacity Solutions Contract Services [ScenuTN.)
Slide 5: Diversified and Complementary
Diversified and Complementary 7% 11% Intermodal Dedicated 23% Integrated 59% Truckload 5
Slide 6: Strong Revenue Growth
Strong Revenue Growth $7 Billions $6 $5 $4 $3 $2 Intermodal Dedicated $1 Integrated $- Truckload 2009 2010 2011 2012 2013 2014E 6
Slide 7: Top 25 Customer Service Usage
Top 25 Customer Service Usage 7
Slide 8: How Customers Buy 2007
How Customers Buy 2007 0% 20% 40% 60% 80% 100% 1 2 3 4 5 6 7 8 Intermodal 9 10 11 Dedicated 12 13 Integrated 14 15 Truckload 16 17 18 19 20 21 22 23 24 25 8
Slide 9: How Customers Buy 2014
How Customers Buy 2014 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 Intermodal 9 10 Dedicated 11 12 Integrated 13 14 15 Truckload 16 17 18 19 20 21 22 23 24 25 9
Slide 10: Top Industry Challenges
Top 5 Industry Challenges • Driver recruiting and retention • Capacity constraints • Government regulations CSA Map21 HOS CARB • Omni-channel impact • Turning “Big Data” into knowledge 10
Slide 11: Unmatched Capacity. Intermodal
UNMATCHED CAPACITY. f | ae i Intermodal
Slide 12: Industry-Leading Intermodal Network
Industry-Leading Intermodal Network 12
Slide 13: Company Assets
Company Assets • 100% company-owned containers and chassis • Disciplined asset management - balance • Methodical stacking proves advantageous • 85% dray provided by company assets 13
Slide 14: Intermodal Keys to Success
Intermodal Keys to Success • Revenue per load quality • Unique and growing rail relationships • Asset utilization • Maintain market share • Balance network 14
Slide 15: Intermodal Capital Expenditures
Intermodal Capital Expenditures Cumulative asset investment $2,500 Millions $2,000 $1,500 $1,000 $500 $0 2010 2011 2012 2013E 2014B 15
Slide 16: Dedicated Contract Services
Dedicated Contract Services
Slide 17: Dedicated Capital Expenditures
Dedicated Capital Expenditures Cumulative asset investment $1,400 Millions $1,200 $1,000 $800 $600 $400 $200 $0 2010 2011 2012 2013E 2014B 17
Slide 18: Revenue by Category
Revenue by Category $1,600 Millions $1,400 $1,200 $1,000 Other $800 Manufacturing $600 Glass Final Mile $400 Agri $200 Food Retail $0 2010 2014B 18
Slide 19: Undisputed Experts. Integrated Capacity Solutions
UNDISPUTED EXPERTS. Dina Weary Gy, oA TT Chid Integrated Capacity Solutions
Slide 20: Customer Growth by Shipper Site: January 2007
Customer Growth by Shipper Site January 2007 20
Slide 21: Customer Growth by Shipper Site: April 2014
Customer Growth by Shipper Site April 2014 21
Slide 22: Customer Growth by Shipper Site: Branch locations
Customer Growth by Shipper Site Branch locations 22
Slide 23: Customer Growth by Shipper Site: Potential branch locations
Customer Growth by Shipper Site Potential branch locations 23
Slide 24: Integrated Sales
Integrated Sales $1,000 Millions $900 $800 $700 $600 $500 $400 $300 $200 $100 Asset $0 Direct 2007 2008 2009 2010 2011 2012 2013 2014E 24
Slide 25: Undeniable Foundation. Truckload
UNDENIABLE FOUNDATION. Truckload
Slide 26: Stabilizing our Fleet
Stabilizing our Fleet 6,000 5,000 4,000 3,000 2,000 1,000 0 IC 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014B Company 26
Slide 27: Truckload Keys to Success
Truckload Keys to Success • World class safety and service • Maximized efficiency • Improved utilization • Quality of revenue 27
Slide 28: Combined Market Response: Gross Revenue
Combined Market Response Gross Revenue (Millions) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Integrated $0 2007 2008 2009 2010 2011 2012 2013 2014E Truckload 28
Slide 29: 2014 Financial Expectations
2014 Financial Expectations 29
Slide 30: 2014 Revenue
2014 Revenue 6% 10% Intermodal Dedicated Integrated 22% 62% Truckload 10 – 12% Anticipated Annual Increase 30
Slide 31: 2014 Operating Income
2014 Operating Income 3% 2% 20% Intermodal Dedicated Integrated 75% Truckload 11 – 15% Anticipated Annual Increase 31
Slide 32: 2014 CAPEX $700 Million
2014 CAPEX In millions $25 $23 Replacement Growth $348 Facilities $304 Technology $700 Million 32
Slide 33: 2014 CAPEX Detail
2014 CAPEX ,. nitions Replacement Intermodal $65 Dedicated Sig) TUCKS in Containers 600-1,000 Truckload $100 : Trailers 4,000 $304 Growth Intermodal $212 : Trucks 1,200 Dedicated $103 : Containers 6,500 Truckload $33 : Trailers 1,000 $348 Facilities $25 Technology $23 Total CAPEX $700
Slide 34: Our Strategy
Our Strategy • Grow Intermodal • Grow Dedicated • Grow Integrated • Move Truckload to sustainability • Deploy capital – equipment, stock, dividend 34