- First Quarter 2024 Revenue: $2.94 billion; down 9%
- First Quarter 2024 Operating Income: $194.4 million; down
30%
- First Quarter 2024 EPS: $1.22 vs. $1.89; down 35%
J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced
first quarter 2024 U.S. GAAP (United States Generally Accepted
Accounting Principles) net earnings of $127.5 million, or diluted
earnings per share of $1.22 versus first quarter 2023 net earnings
of $197.8 million, or $1.89 per diluted share.
Total operating revenue for the current quarter was $2.94
billion compared with $3.23 billion for the first quarter 2023, a
decrease of 9%. The decline in revenue was primarily driven by a 9%
decrease in segment gross revenue per load in both Intermodal (JBI)
and Truckload (JBT), 22% fewer loads in Integrated Capacity
Solutions™ (ICS), and a modest decline in average trucks and
productivity in Dedicated Contract Services® (DCS®) compared to the
prior year period. Revenue declines in JBI, ICS, JBT and DCS were
partially offset by Final Mile Services® (FMS) revenue growth of
2%, primarily driven by new contracts implemented over the past
year. Current quarter total operating revenue, excluding fuel
surcharge revenue, decreased approximately 7% versus the first
quarter 2023.
Operating income for the current quarter decreased 30% to $194.4
million versus $277.5 million for the first quarter 2023. The
decrease in operating income was primarily due to a combination of
lower volumes and yield pressure in JBI, ICS and JBT, as well as
increases in equipment, insurance and claims, and bad debt expense.
Operating income as a percentage of gross revenue decreased
year-over-year as a result of higher professional driver and
non-driver wages and benefits, equipment, and insurance and claims
expenses as a percentage of gross revenue. These items were
partially offset by lower rail and truck purchased transportation
costs as a percentage of gross revenue.
Net interest expense for the current quarter increased
approximately 6% from first quarter 2023 due to higher effective
interest rates and consolidated debt balance, partially offset by
higher interest income.
The effective income tax rate increased to 28.7% in the current
quarter compared to 24.7% in the first quarter 2023, due to
discrete tax items. We continue to expect our 2024 annual tax rate
to be between 24.0% and 25.0%.
Segment Information:
Intermodal (JBI)
- First Quarter 2024 Segment Revenue: $1.40 billion; down
9%
- First Quarter 2024 Operating Income: $101.9 million; down
40%
Intermodal volume was flat versus the same period in 2023.
Transcontinental network loads increased 5%, while eastern network
loads decreased 7% compared to the first quarter 2023. Overall
demand for our domestic intermodal service offering in the quarter
was weaker than expected, partially attributable to competition
from over-the-road truck options in the eastern network, and our
disciplined approach to the market for the value our services
provide. Segment gross revenue decreased 9% from the prior year
period, driven by a 9% decrease in segment gross revenue per load,
resulting from changes in the mix of freight, customer rates, and
fuel surcharge revenue. Revenue per load excluding fuel surcharge
revenue was down 8% year-over-year.
Operating income decreased 40% in the first quarter primarily
from lower yields. JBI segment operating income as a percentage of
segment gross revenue declined versus the prior-year period as a
result of increases in professional driver and non-driver wages and
benefits, higher equipment and maintenance expenses, and insurance
premium costs as a percentage of gross revenue. During the period
we onboarded approximately 1,140 new units of container capacity.
The current period ended with approximately 119,300 units of
trailing capacity and approximately 6,300 power units in the dray
fleet.
Dedicated Contract Services (DCS)
- First Quarter 2024 Segment Revenue: $860 million; down
2%
- First Quarter 2024 Operating Income: $93.6 million; down
9%
DCS revenue decreased 2% during the current quarter over the
same period 2023, driven by a 1% decline in average trucks combined
with a 1% decline in productivity (gross revenue per truck per
week). Productivity excluding fuel surcharge revenue increased 1%
from a year ago driven by contracted indexed-based price
escalators, partially offset by an increase in idled equipment. On
a net basis, there were 71 fewer revenue producing trucks in the
fleet by the end of the quarter compared to the prior-year period,
and 2 more versus the end of the fourth quarter 2023. Customer
retention rates are approximately 91%, largely reflecting the
downsizing of fleets and to a lesser extent account losses.
Operating income decreased 9% from the prior year quarter. The
decrease was primarily driven by lower revenue; increases in
insurance premiums, equipment and bad debt expense; and higher new
account start-up costs as compared to the prior year period. These
items were partially offset by lower maintenance costs and the
maturing of new business onboarded over the past trailing twelve
months.
Integrated Capacity Solutions (ICS)
- First Quarter 2024 Segment Revenue: $285 million; down
26%
- First Quarter 2024 Operating Loss: $(17.5) million; vs.
$(5.4) million in Q1’23
ICS revenue declined 26% during the current quarter versus the
first quarter 2023. Overall segment volume decreased 22% versus the
prior year period. Revenue per load decreased 5% compared to the
first quarter 2023 due to lower contractual and transactional rates
and changes in customer freight mix. Contractual volume represented
approximately 57% of the total load volume and 59% of the total
revenue in the current quarter compared to 63% and 64%,
respectively, in first quarter 2023.
Operating loss was $17.5 million compared to operating loss of
$5.4 million for the first quarter 2023. Operating performance
declined largely due to an $11.0 million decrease in gross profit,
higher insurance costs, and integration and transition costs
related to the purchase of the brokerage assets of BNSF Logistics.
These items were partially offset by lower personnel-related
expenses and reduced technology costs. Gross profit declined 21%
versus the prior year period as a result of lower volume and
revenue, despite gross profit margins improving to 14.3% as
compared to 13.4% in the prior year period. ICS carrier base
decreased 22% year-over-year, largely driven by changes to carrier
qualification requirements to mitigate cargo theft.
Final Mile Services (FMS)
- First Quarter 2024 Segment Revenue: $229 million; up
2%
- First Quarter 2024 Operating Income: $15.1 million; up
128%
FMS revenue increased 2% compared to the same period 2023. The
increase was primarily driven by multiple new contracts implemented
over the past year and efforts to improve the overall revenue
quality of the business. These items were partially offset by
general weakness in demand across many of the end markets
served.
Operating income increased 128% to $15.1 million compared to the
prior-year period. First quarter 2024 included a $3.1 million
benefit from a prior period claim settlement. Excluding this
impact, operating income increased primarily from higher revenue
and lower personnel, maintenance, and technology costs. These items
were partially offset by higher facility rent expense, insurance
premiums, bad debt expense, and loss on equipment sales as compared
to the prior year period.
Truckload (JBT)
- First Quarter 2024 Segment Revenue: $178 million; down
13%
- First Quarter 2024 Operating Income: $1.2 million; down
75%
JBT revenue decreased 13% compared to the same period in the
previous year. Revenue excluding fuel surcharge revenue decreased
13% due to a 9% decline in revenue per load excluding fuel
surcharge revenue and a 5% decline in load volume. Total average
effective trailer count decreased by approximately 200 units, or 2%
versus the prior-year period. Trailer turns in the quarter were
down 2% compared to the prior year period primarily due to changes
in freight mix and weaker overall freight demand as compared to the
first quarter 2023.
JBT operating income decreased 75% to $1.2 million compared to
the first quarter 2023. The decrease in operating income was
primarily driven by the decline in revenue. JBT segment operating
income as a percentage of segment gross revenue declined versus the
prior-year period as a result of higher equipment, maintenance and
insurance premium expenses as a percentage of gross revenue.
Cash Flow and Capitalization:
At March 31, 2024, we had a total of $1.37 billion outstanding
on various debt instruments compared to $1.58 billion at December
31, 2023.
Our net capital expenditures for the first quarter 2024
approximated $166 million compared to $380 million for the first
quarter 2023. At March 31, 2024, we had cash and cash equivalents
of $64 million.
In the first quarter 2024, we purchased approximately 126,000
shares of our common stock for approximately $25 million. At March
31, 2024, we had approximately $366 million remaining under our
share repurchase authorization. Actual shares outstanding at March
31, 2024, approximated 103.2 million.
Conference Call Information:
The company will hold a conference call today from 4:00-5:00
p.m. CDT to discuss the quarterly earnings. Investors will have the
opportunity to listen to the conference call live over the internet
by going to investor.jbhunt.com. Please log on 15 minutes early to
register, download and install any necessary audio software. For
those who cannot listen to the live broadcast, an online replay of
the earnings call webcast will be available a few hours after the
completion of the call.
Forward-Looking Statements:
This press release may contain forward-looking statements, which
are based on information currently available. Actual results may
differ materially from those currently anticipated due to a number
of factors, including, but not limited to, those discussed in Item
1A of our Annual Report filed on Form 10-K for the year ended
December 31, 2023. We assume no obligation to update any
forward-looking statement to the extent we become aware that it
will not be achieved for any reason. This press release and
additional information will be available to interested parties on
our website, www.jbhunt.com.
About J.B. Hunt
J.B. Hunt’s vision is to create the most efficient
transportation network in North America. The company’s
industry-leading solutions and mode-neutral approach generate value
for customers by eliminating waste, reducing costs and enhancing
supply chain visibility. Powered by one of the largest
company-owned fleets in the country and third-party capacity
through its J.B. Hunt 360°® digital freight marketplace, J.B. Hunt
can meet the unique shipping needs of any business, from first mile
to final delivery, and every shipment in-between. Through
disciplined investments in its people, technology and capacity,
J.B. Hunt is delivering exceptional value and service that enable
long-term growth for the company and its stakeholders.
J.B. Hunt Transport Services Inc. is a Fortune 500 company, an
S&P 500 company and a component of the Dow Jones Transportation
Average. Its stock trades on NASDAQ under the ticker symbol JBHT.
J.B. Hunt Transport Inc. is a wholly owned subsidiary of JBHT. The
company’s services include intermodal, dedicated, refrigerated,
truckload, less-than-truckload, flatbed, single source, last mile,
transload and more. For more information, visit www.jbhunt.com.
J.B. HUNT TRANSPORT SERVICES,
INC.
Condensed Consolidated Statements of Earnings (in thousands,
except per share data) (unaudited)
Three Months Ended March 31
2024
2023
% Of % Of
Amount Revenue Amount Revenue
Operating revenues, excluding fuel surcharge revenues
$
2,552,486
$
2,731,453
Fuel surcharge revenues
391,515
498,135
Total operating revenues
2,944,001
100.0%
3,229,588
100.0%
Operating expenses
Rents and purchased transportation
1,280,987
43.5%
1,467,798
45.4%
Salaries, wages and employee benefits
807,884
27.4%
824,999
25.5%
Depreciation and amortization
182,996
6.2%
175,812
5.4%
Fuel and fuel taxes
173,527
5.9%
195,834
6.1%
Operating supplies and expenses
122,991
4.2%
128,360
4.0%
General and administrative expenses, net of asset dispositions
76,784
2.6%
60,404
1.9%
Insurance and claims
75,686
2.6%
70,328
2.2%
Operating taxes and licenses
17,535
0.6%
18,108
0.6%
Communication and utilities
11,242
0.4%
10,456
0.3%
Total operating expenses
2,749,632
93.4%
2,952,099
91.4%
Operating income
194,369
6.6%
277,489
8.6%
Net interest expense
15,649
0.5%
14,789
0.5%
Earnings before income taxes
178,720
6.1%
262,700
8.1%
Income taxes
51,227
1.8%
64,932
2.0%
Net earnings
$
127,493
4.3%
$
197,768
6.1%
Average diluted shares outstanding
104,107
104,729
Diluted earnings per share
$
1.22
$
1.89
Financial Information By Segment (in thousands)
(unaudited)
Three Months Ended March 31
2024
2023
% Of % Of
Amount Total Amount Total
Revenue
Intermodal
$
1,395,351
47%
$
1,539,560
48%
Dedicated
860,016
29%
879,143
27%
Integrated Capacity Solutions
285,287
10%
384,774
12%
Final Mile Services
229,280
8%
225,077
7%
Truckload
178,312
6%
205,862
6%
Subtotal
2,948,246
100%
3,234,416
100%
Intersegment eliminations
(4,245
)
(0%)
(4,828
)
(0%)
Consolidated revenue
$
2,944,001
100%
$
3,229,588
100%
Operating income
Intermodal
$
101,889
52%
$
168,658
61%
Dedicated
93,649
48%
102,560
37%
Integrated Capacity Solutions
(17,541
)
(9%)
(5,372
)
(2%)
Final Mile Services
15,086
8%
6,619
2%
Truckload
1,229
1%
4,990
2%
Other (1)
57
0%
34
0%
Operating income
$
194,369
100%
$
277,489
100%
(1) Includes corporate support activity
Operating Statistics by Segment (unaudited)
Three Months Ended March 31
2024
2023
Intermodal
Loads
485,166
486,091
Average length of haul
1,689
1,651
Revenue per load
$
2,876
$
3,167
Average tractors during the period *
6,345
6,599
Tractors (end of period) *
6,312
6,574
Trailing equipment (end of period)
119,307
116,155
Average effective trailing equipment usage
96,112
96,306
Dedicated
Loads
1,004,419
1,077,372
Average length of haul
180
171
Revenue per truck per week**
$
5,021
$
5,060
Average trucks during the period***
13,298
13,469
Trucks (end of period) ***
13,254
13,325
Trailing equipment (end of period)
32,054
31,153
Average effective trailing equipment usage
32,996
31,378
Integrated Capacity
Solutions
Loads
158,247
202,531
Revenue per load
$
1,803
$
1,900
Gross profit margin
14.3
%
13.4
%
Employee count (end of period)
748
807
Approximate number of third-party carriers (end of period)
116,300
149,300
Marketplace for J.B. Hunt 360 revenue (millions)
$
105.5
$
250.6
Final Mile Services
Stops
1,076,689
1,162,138
Average trucks during the period***
1,408
1,651
Truckload
Loads
93,685
98,784
Revenue per load
$
1,903
$
2,084
Average length of haul
677
640
Tractors (end of period)
Company-owned
25
104
Independent contractor
1,908
2,058
Total tractors
1,933
2,162
Trailers (end of period)
13,306
13,433
Average effective trailing equipment usage
12,891
13,127
* Includes company-owned and independent contractor tractors
** Using weighted workdays *** Includes company-owned, independent
contractor, and customer-owned trucks
J.B. HUNT TRANSPORT SERVICES, INC. Condensed
Consolidated Balance Sheets (in thousands) (unaudited)
March 31, 2024
December 31, 2023 ASSETS
Current assets:
Cash and cash equivalents
$
64,185
$
53,344
Accounts Receivable, net
1,272,115
1,334,912
Prepaid expenses and other
613,260
696,656
Total current assets
1,949,560
2,084,912
Property and equipment
8,866,281
8,767,872
Less accumulated depreciation
3,071,485
2,993,959
Net property and equipment
5,794,796
5,773,913
Other assets, net
683,427
679,435
$
8,427,783
$
8,538,260
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt
$
-
$
249,961
Trade accounts payable
731,741
737,364
Claims accruals
576,082
547,277
Accrued payroll
93,579
94,563
Other accrued expenses
142,582
150,256
Total current liabilities
1,543,984
1,779,421
Long-term debt
1,366,506
1,326,107
Other long-term liabilities
397,866
392,766
Deferred income taxes
952,996
936,208
Stockholders' equity
4,166,431
4,103,758
$
8,427,783
$
8,538,260
Supplemental Data (unaudited)
March 31, 2024
December 31, 2023
Actual shares outstanding at end of period (000)
103,197
103,220
Book value per actual share outstanding at end of period
$
40.37
$
39.76
Three Months Ended March 31
2024
2023
Net cash provided by operating activities (000)
$
466,467
$
487,621
Net capital expenditures (000)
$
166,182
$
379,831
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240416599723/en/
J.B. Hunt Transport Services, Inc. Brad Delco Senior Vice
President – Finance (479) 820-2723
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