J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q3 2014 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, October 2014
Slide 1: J.B. Hunt Transport Services, Inc. 3Q 2014 Results
J.B. Hunt Transport Services, Inc. 3Q 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 3Q 2014 Revenue Mix • Intermodal (JBI) 6% • Largest, 100% 53’ high-cube container fleet 12% • Largest drayage fleet in North America JBI • Priority loading and unloading at major rail DCS terminals ICS • Dedicated Contract Services (DCS) JBT 22% • Fleet creation, co
Slide 4: 3Q 2014 Results vs. 3Q 2013
3Q 2014 Results vs. 3Q 2013 • 3Q 2014 Revenue: $1.60 billion; up 12% • 3Q 2014 Revenue, excl FSC: $1.32 billion; up 13% • 3Q 2014 Operating Income: $172 million; up 14% • 3Q 2014 EPS: $0.87 vs. $0.75 • Segment Performance • Intermodal (JBI) • Revenue: $964 million; up 8% • Operating Income: $125 mil
Slide 5: 3Q 2014 Results - Consolidated
3Q 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 $200 $172 $151 $100 $4,000 $3,793 $3,732 $- $3,490 2007 2008 2009 2010 2011 2012 2013 3Q 13 3Q 14 $3,203 Diluted EPS $3,0
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) • Overall volumes increased 8% over the same $3,456 $3,500 period in 2013 in an environment of challenging rail service and limited dray fleet capacity. $3,071 $3,000 • Eastern network growth was 19% and transcontinental growth was 2% over the third $2,673
Slide 9: JBI Performance
JBI Performance JBI Revenue Growth JBI Operating Income Growth 30% 30% 27% 25% 24% 19% 20% 20% 15% 13% 10% 10% 8% 6% 0% 0% FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y JBI Average Length of Haul 1,710 1,702 JBI Revenue per Load 1,700 1,694 1,693 $2,200 1,690 1,680 $2,169
Slide 10: DCS - Dedicated
DCS - Dedicated DCS Revenue (in millions) • Revenue increased 13% over 3Q 2013. $1,400 • Productivity (revenue per truck per week) $1,231 increased by approximately 4% vs. 2013 $1,200 due to increased customer demand at $1,080 accounts open longer than a year and rate $1,031 increases implemented du
Slide 11: DCS Performance
DCS Performance DCS Revenue Growth DCS Operating Income Growth 15% 30% 14% 14% 13% 25% 20% 17% 10% 13% 10% 5% 5% 0% -5% 0% -10% FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y DCS Average Length of Haul DCS Loads 250 2,000,000 1,835,872 201 200 190 190 1,522,740 176 1,500,0
Slide 12: ICS - Non-Asset Based
ICS - Non-Asset Based ICS Revenue (in millions) • Revenue increased 35% in the current quarter $600 vs. the third quarter 2013, primarily due to a $537 24% increase in load volume and an 9% $550 increase in revenue per load. $500 • Both transactional and contractual volumes $456 $450 continued to gr
Slide 13: ICS Performance
ICS Performance ICS Revenue Growth ICS Operating Income Change 197% 40% 200% 35% 35% 170% 30% 28% 140% 25% 22% 110% 20% 18% 15% 80% 50% 41% 10% 23% 5% 20% 0% -10% -3% FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y FY11/FY10 FY12/FY11 FY13/FY12 3Q Y/Y ICS Gross Profit Margin ICS Loads 15.0% 500,000 13.0% 13.3%
Slide 14: JBT - Truckload
JBT - Truckload JBT Revenue (in millions) • Revenue for the current quarter decreased 1% $1,000 from the same period in 2013 primarily from a 6% reduction in fleet size. $842 • Rates per loaded mile, excluding fuel surcharge increased 10% on a 3% shorter length of haul $800 compared to third quarter
Slide 15: JBT Performance
JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 78 500 467 77.1 431 434 77 419 400 76 75.4 75 300 73.6 74 200 73 72 100 71.0 71 0 70 2012 2013 Q3 13 Q3 14 2012 2013 Q3 13 Q3 14 JBT Loads JBT Revenue per Tractor per Week 500,000 $5,000 449,366 386,875 $4,109 $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) September 30, 2014 December 31, 2013 ASSETS Current assets: Cash and cash equivalents $ 5,859 $ 5,831 Accounts Receivable 671,298 568,519 Prepaid expenses and other 60,521 105,853 Total
J.B. Hunt Transport Services — Q3 2014 Earnings Presentation on 6ix