J.B. Hunt Transport Services, Inc. · NASDAQ:JBHT
J.B. Hunt Transport Services — Q1 2017 Earnings Presentation
17 slides from J.B. Hunt Transport Services's earnings presentation, 2017
Slide 1: J.B. Hunt Transport Services, Inc. Q1 2017 Results
J.B. HUNT TRANSPORT SERVICES, INC. Q1 2017 RESULTS
Slide 2: Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “estimates,” or
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 statements. These
Slide 3: Distinct and Complementary Businesses
DISTINCT AND COMPLEMENTARY BUSINESSES 1Q 2017 Revenue Mix Intermodal (JBI) 6% • Largest, 100% 53’ high-cube container fleet 13% • Largest drayage fleet in North America JBI • Priority loading and unloading at major rail terminals DCS Dedicated Contract Services (DCS) ICS • Fleet creation, conversion
Slide 4: 1Q 2017 Results vs. 1Q 2016
1Q 2017 RESULTS VS. 1Q 2016 Overview Segment Performance • 1Q 2017 Revenue: Intermodal (JBI) • Revenue: $937 million; up 5% $1.63 billion; up 7% • Operating Income: $95 million; down 8% • 1Q 2017 Revenue, excl FSC: Dedicated Contract Services (DCS) $1.46 billion; up 2% • Revenue: $392 million; up 10
Slide 5: 1Q 2017 Results Consolidated
1Q 2017 RESULTS CONSOLIDATED Revenue Operating Income (in millions) (in millions) $7,000 $800 $6,555 $716 $721 $700 $632 $6,165 $6,188 $600 $577 $444 $530 $6,000 $500 $5,585 $348 $400 $5,055 $300 $5,000 $168 $149 $200 $4,527 $100 $- $3,793 $4,000 2010 2011 2012 2013 2014 2015 2016 1Q 16 1Q 17 Dilute
Slide 6: Key Points
KEY POINTS • Industry leading Intermodal franchise • Differentiated & specialized Dedicated business • Independent brokerage/management services • Lighter Truckload asset model
Slide 7: Segment Discussion
SEGMENT DISCUSSION 7
Slide 8: Intermodal (JBI)
INTERMODAL (JBI) JBI Revenue (in millions) • Total volumes grew 2% over the same period 2016. $4,000 $3,687 $3,665 $3,796 • Transcontinental loads grew 7% while the Eastern network load $3,456 volume was down 6% compared to prior year. $3,500 • Revenue grew approximately 5% reflecting the 2% volume
Slide 9: Intermodal (JBI) Performance
INTERMODAL (JBI) PERFORMANCE JBI Revenue Change JBI Operating Income Change 10% 10% 7% 4% 4% 5% 5% 5% 3% 0% 0% -5% -1% -6% -8% -5% -10% FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y JBI Average Length of Haul JBI Revenue per Load 1,700 $2,100 $2,067 1,680 1,675 $1,981 $2,
Slide 10: Dedicated (DCS)
DEDICATED (DCS) DCS Revenue (in millions) • DCS revenue increased 10% during the current quarter over the same period 2016. $1,600 $1,533 $1,451 • Productivity (revenue per truck per week) increased $1,394 approximately 6% vs. 2016. Productivity excluding fuel $1,400 surcharges was up approximately
Slide 11: Dedicated (DCS) Performance
DEDICATED (DCS) PERFORMANCE DCS Revenue Change DCS Operating Income Change 15% 50% 13% 40% 40% 10% 26% 10% 30% 6% 20% 4% 6% 5% 10% 0% 0% 0% -10% FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y DCS Loads DCS Revenue Per Truck Per Week 2,500,000 2,401,332 4,300 2,250,099 4,07
Slide 12: Integrated (ICS) Non-Asset Based
INTEGRATED (ICS) NON-ASSET BASED ICS Revenue • Revenue increased 14% vs. first quarter 2016. Volumes (in millions) increased 36% while revenue per load decreased 16% $900 $852 primarily due to freight mix changes driven by customer demand. $800 $718 • Contractual business represents approximately 76
Slide 13: Integrated (ICS) Performance
INTEGRATED (ICS) PERFORMANCE ICS Revenue Change ICS Operating Income Change 40% 100% 90% 34% 80% 30% 60% 22% 40% 20% 20% 14% 20% 1% 10% 0% -20% 0% -40% -60% -3% -59% -10% -80% FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y FY14/FY13 FY15/FY14 FY16/FY15 1Q Y/Y ICS Gross Profit Margin ICS Loads 20% 1,000,000 17
Slide 14: Truckload (JBT)
TRUCKLOAD (JBT) JBT Revenue (in millions) • JBT revenue decreased 2% from the same quarter 2016. $550 $504 • Revenue excluding fuel surcharge decreased 6% primarily $500 $479 $484 from a 7% decrease in revenue per load partially offset by a 1% increase in load count. The decrease in revenue per $450
Slide 15: Truckload (JBT) Performance
TRUCKLOAD (JBT) PERFORMANCE JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load 500 88 468 86 85.6 85.4 85.0 448 455 83.9 438 84 450 82 80 400 78 76 350 74 72 300 70 2015 2016 1Q 16 1Q 17 2015 2016 1Q 16 1Q 17 JBT Loads JBT Revenue per Tractor per Week $4,000 $3,698 500,000 $3,458 $3
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 supp
Slide 17: Balance Sheet
J.B. HUNT TRANSPORT SERVICES, INC. BALANCE SHEET CONDENSED CONSOLIDATED BALANCE SHEETS IN THOUSANDS | UNAUDITED 17
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