J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT

J.B. Hunt Transport Services — Q3 2013 Earnings Presentation

17 slides from J.B. Hunt Transport Services's earnings presentation, October 2013

  1. Slide 1: J.B. Hunt Transport Services, Inc. 3Q 2013 Results

    What’s your next move?™ J.B. Hunt Transport Services, Inc. 3Q 2013 Results SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

  2. 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

  3. Slide 3: Distinct Complementary Businesses

    Distinct Complementary Businesses  Intermodal (JBI) 3Q 2013 Revenue Mix  Largest, 100% 53’ high‐cube container fleet 6%  Largest drayage fleet in North America 10% JBI  Priorityy loadingg and unloadingg at major j rail terminals DCS  Dedicated Contract Services (DCS) ICS 22%  Fleet creation, c

  4. Slide 4: 3Q 2013 Results vs. 3Q 2012

    3Q 2013 Results vs. 3Q 2012  3Q 2013 Revenue: $1.44 billion; up 11%  3Q 2013 Revenue, excl FSC: $1.17 billion; up 11%  3Q 2013 Operating p g Income: $$151 million;; up p 13%  3Q 2013 EPS: $0.75 vs. $0.65  Segment Performance • Intermodal (JBI)  Revenue: $890 million; up 12%  Operating Income:

  5. Slide 5: 3Q 2013 Results – Consolidated

    3Q 2013 Results – Consolidated R Revenue Operating Income (in millions) (in millions) $6,000 $600 $530 $500 $444 $5,055 $400 $ $358 $5,000 $348 $300 $4,527 $248 $200 $151 $133 $100 $ $4,000 $3,793 $3,732 $‐ 2008 2009 2010 2011 2012 3Q 12 3Q 13 $3,203 $3,000 Diluted EPS $3.00 $2.59 $2.50 $2,000 $2.11

  6. 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

  7. 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

  8. Slide 8: JBI – Intermodal

    JBI – Intermodal JBI Revenue (in millions)  Revenue increased by 12% due to overall $3,500 volumes increasing 12% compared to 3Q 2012  Eastern network grew g byy 14% and $3,071 $3,000 transcontinental growth showed a 10% $2,673 improvement $2,500  Operating income increased 21% over 3Q $2,141 201

  9. Slide 9: JBI Performance

    JBI Performance JBI Revenue Growth JBI Operating Income Growth 30% 40% 25% 25% 27% 20% 30% % 24% 15% 21% 15% 20% 12% 10% 10% 5% 0% 0% FY11/FY10 FY12/FY11 3Q Y/Y FY11/FY10 FY12/FY11 3Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,735 1,726 $2,200 1,725 1,715 $2,169 $2,163 1,702 1,705 $2,141

  10. Slide 10: DCS – Dedicated

    DCS – Dedicated DCS Revenue (in millions)  R Revenue iincreased d 17% over 3Q 2012 $1,200  New accounts provided a net additional 972 $1,080 revenue‐producing trucks $1 031 $1,031 $1,000  Operating income increased 14% compared to 3Q $927 $907 2012 primarily due to the increase in revenue from ne

  11. Slide 11: DCS Performance

    DCS Performance DCS Revenue Growth DCS Operating Income Growth 20% 30% 17% 25% 14% 15% 20% 10% 14% 13% 5% 10% 5% 0% 0% FY11/FY10 FY12/FY11 3Q Y/Y FY11/FY10 FY12/FY11 3Q Y/Y DCS Average Length of Haul DCS Loads 250 1,444,518 1,522,740 205 201 1,500,000 198 190 200 150 1,000,000 ,000,000 100 395,912 4

  12. Slide 12: ICS – Non-Asset Based

    ICS – Non‐Asset Based  R Revenue iincreasedd 13% vs. 3Q 2012 mostly tl ddue tto a 4% ICS Revenue (in millions) increase in load volume $500  Revenue grew faster than volumes primarily due to freight $456 mix changes driven by customer demand $ $450  Truckload brokerage volume increased for the qu

  13. Slide 13: ICS Performance

    ICS Performance ICS Revenue Growth ICS Operating Income Change 30% 28% 50% 41% 25% 22% 23% 25% 20% 13% 15% 0% 10% FY11/FY10 FY12/FY11 3Q Y/Y 5% ‐25% 0% FY11/FY10 FY12/FY11 3Q Y/Y ‐50% ‐48% ICS Gross Profit Margin ICS Loads 350,000 326,574 15.0% 13.5% 13.0% 12.8% 300,000 253,344 10.4% 250,000 10.0% 2

  14. Slide 14: JBT – Truckload

    JBT – Truckload JBT Revenue (in millions)  Revenue decreased 17% from 3Q 2012 $800 on an approximately 18% reduction in fleet size $676  Rate per mile, excluding fuel surcharges, $600 decreased 0.4% over 3Q 2012 on a 6% $504 $484 shorter length of haul $479  The slightly positive rate impact from

  15. Slide 15: JBT Performance

    JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per 600 78 77.1 77.4 514 467 462 77 500 434 76 400 75 74.5 300 74 72.7 200 73 100 72 71 0 2011 2012 3Q 12 3Q 13 70 2011 2012 3Q 12 3Q 13 JBT Loads JBT Revenue per Tractor per Week 500,000 444,851 449,366 $3,869 $3,891 $3,783

  16. 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

  17. Slide 17: Balance Sheet

    Balance Sheet What’s your next move?™ | 17

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