J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q2 2014 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, July 2014
Slide 1: J.B. Hunt Transport Services, Inc. 2Q 2014 Results
J.B. Hunt Transport Services, Inc. 2Q 2014 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 stateme
Slide 3: Distinct Complementary Businesses
Distinct Complementary Businesses • Intermodal (JBI) 2Q 2014 Revenue Mix 7% • Largest, 100% 53’ high-cube container fleet • Largest drayage fleet in North America 11% JBI • Priority loading and unloading at major rail DCS terminals ICS JBT • Dedicated Contract Services (DCS) 22% • Fleet creation, co
Slide 4: 2Q 2014 Results vs. 2Q 2013
2Q 2014 Results vs. 2Q 2013 • 2Q 2014 Revenue: $1.55 billion; up 12% • 2Q 2014 Revenue, excl FSC: $1.27 billion; up 13% • 2Q 2014 Operating Income: $159 million; up 8% • 2Q 2014 EPS: $0.79 vs. $0.73 • Segment Performance • Intermodal (JBI) • Revenue: $931 million; up 9% • Operating Income: $113.4 mi
Slide 5: 2Q 2014 Results - Consolidated
2Q 2014 Results - Consolidated Revenue Operating Income (in millions) (in millions) $6,000 $700 $5,585 $577 $600 $530 $500 $444 $5,055 $369 $358 $400 $348 $5,000 $300 $248 $4,527 $159 $200 $147 $100 $4,000 $3,732 $3,793 $- $3,490 2007 2008 2009 2010 2011 2012 2013 2Q 13 2Q 14 $3,203 $3,000 Diluted E
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
UNMATCHED CAPACITY. f ‘lad | ae i | | | | | Segment Discussion
Slide 8: JBI - Intermodal
JBI - Intermodal JBI Revenue (in millions) • Continued customer demand for truck to rail $3,500 $3,456 conversion resulted in Eastern network growth of 17% and transcontinental growth of 2% over $3,071 the same quarter 2013. $3,000 • Revenue grew 9% reflecting the 8% volume $2,673 growth and a 1% in
Slide 9: JBI Performance
JBI Performance JBI Revenue Growth JBI Operating Income Growth 30% 30% 25% 27% 24% 20% 19% 20% 15% 13% 10% 9% 10% 2% 0% 0% FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y JBI Average Length of Haul 1,710 JBI Revenue per Load 1,702 1,700 1,694 $2,200 1,688 1,690 $2,169 $2,16
Slide 10: DCS - Dedicated
DCS - Dedicated DCS Revenue (in millions) • Revenue increased 15% over 2Q 2013. $1,400 • Productivity (revenue per truck per week) $1,231 increased by approximately 1% vs. 2013 $1,200 primarily from increased customer $1,080 demand at mature contracts. $1,031 $1,000 $937 $927 • Operating income incr
Slide 11: DCS Performance
DCS Performance DCS Revenue Growth DCS Operating Income Growth 20% 30% 25% 15% 14% 14% 15% 20% 13% 10% 10% 2% 5% 5% 0% -5% 0% -10% FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y DCS Average Length of Haul DCS Loads 250 2,000,000 1,835,872 201 197 190 1,522,740 200 178 1,50
Slide 12: ICS - Non-Asset Based
ICS - Non-Asset Based ICS Revenue (in millions) • Revenue increased 31% over 2Q 2013, mostly $600 due to a 15% increase in load volume and a 14% $537 $550 increase in revenue per load. $500 • Both transactional and contractual volumes $456 continued to grow during the quarter. $450 Contractual busin
Slide 13: ICS Performance
ICS Performance ICS Revenue Growth ICS Operating Income Change 35% 65% 31% 30% 28% 50% 25% 41% 22% 40% 20% 18% 23% 15% 15% 10% 5% 0% -10% -3% FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 2Q Y/Y ICS Gross Profit Margin ICS Loads 15.0% 500,000 13.0% 11.8% 11.8% 12.7% 388,987 400,
Slide 14: JBT - Truckload
JBT - Truckload JBT Revenue (in millions) • Revenue for the current quarter was flat compared $1,000 to the same period in 2013 despite an 8% reduction in fleet size. Revenue excluding fuel surcharges increased 1%. $842 • Rates per loaded mile, excluding fuel surcharge $800 increased 10% on a 6% sho
Slide 15: JBT Performance
JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 78 467 77.1 431 408 77 400 384 76 75.4 300 75 73.8 74 200 73 72 72.0 100 71 0 70 2012 2013 Q2 13 Q2 14 2012 2013 Q2 13 Q2 14 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 449,366 $4,226 386,875 $3,891
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) June 30, 2014 December 31, 2013 ASSETS Current assets: Cash and cash equivalents $ 5,870 $ 5,831 Accounts Receivable 667,620 568,519 Prepaid expenses and other 65,735 105,853 Total curre
J.B. Hunt Transport Services — Q2 2014 Earnings Presentation on 6ix