J.B. Hunt Transport Services, Inc. Reports U.S. GAAP Revenues, Net Earnings and Earnings Per Share for the Second Quarter 2024
-
Second Quarter 2024 Revenue:
$2.93 billion ; down 7% -
Second Quarter 2024 Operating Income:
$205.7 million ; down 24% -
Second Quarter 2024 EPS:
$1.32 vs.$1.81 ; down 27%
Total operating revenue for the current quarter was
Operating income for the current quarter decreased 24% to
Net interest expense for the current quarter increased approximately 38% from the second quarter 2023 due to higher effective interest rates and consolidated debt balance, partially offset by higher interest income.
The effective income tax rate was 26.8% in the current quarter compared to 26.0% in the second quarter 2023. We continue to expect our 2024 annual tax rate to be between 24.0% and 25.0%.
Segment Information:
Intermodal (JBI)
-
Second Quarter 2024 Segment Revenue:
$1.41 billion ; down 5% -
Second Quarter 2024 Operating Income:
$99.2 million ; down 31%
Intermodal volume decreased 1% over the same period in 2023. Transcontinental network loads increased 4%, while eastern network loads decreased 7% compared to the second quarter 2023. While experiencing some seasonal build in demand through the quarter, overall performance continued to be pressured by the soft freight market and its impact on over-the-road truck competition in the eastern network. Segment gross revenue decreased 5% from the prior-year period, reflecting the 1% decrease in volume and a 5% decrease in gross revenue per load, resulting from changes in customer rates, fuel surcharge revenue, and the mix of freight. Revenue per load excluding fuel surcharge revenue decreased 4% year-over-year.
Operating income decreased 31% compared to the second quarter 2023 primarily from a combination of lower yields and the underutilization of assets in the network. 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, ownership costs of underutilized equipment, higher equipment and maintenance expenses, and higher insurance and claims expense, as a percentage of gross revenue. During the period, we onboarded 1,862 new pieces of trailing equipment. We ended the quarter with approximately 121,200 containers and 6,200 power units in the dray fleet.
Dedicated Contract Services (DCS)
-
Second Quarter 2024 Segment Revenue:
$851 million ; down 4% -
Second Quarter 2024 Operating Income:
$96.4 million ; down 15%
DCS revenue decreased 4% during the current quarter over the same period 2023 driven by a 1% decline in average trucks combined with a 3% decline in productivity (revenue per truck per week). Productivity excluding fuel surcharge revenue decreased 3% from a year ago driven primarily from lower utilization and increases in idled equipment, partially offset by contracted indexed-based price escalators. On a net basis, there were 339 fewer revenue-producing trucks in the fleet by the end of the quarter compared to the prior-year period and 365 fewer versus the end of the first quarter 2024. Customer retention rates are approximately 88%, largely reflecting downsizing of fleets and to a lesser extent account losses, as compared to the prior-year period.
Operating income decreased 15% from the prior-year quarter primarily from lower revenue, higher insurance and claims, equipment-related and bad debt expenses 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)
-
Second Quarter 2024 Segment Revenue:
$270 million ; down 21% -
Second Quarter 2024 Operating Loss:
$(13.3) million ; vs.$(4.4) million in Q2’23
ICS revenue declined 21% during the current quarter versus the second quarter 2023. Overall segment volume decreased 25% versus the prior-year period. Revenue per load increased 5% compared to the second quarter 2023 due to increases in both contractual and transactional rates as well as changes in customer mix. Contractual volume represented approximately 61% of the total load volume and 59% of the gross segment revenue in the current quarter compared to 66% and 64%, respectively, in second quarter 2023.
Operating loss was
Final Mile Services (FMS)
-
Second Quarter 2024 Segment Revenue:
$235 million ; up 5% -
Second Quarter 2024 Operating Income:
$19.8 million ; up 33%
FMS revenue increased 5% compared to the same period 2023. The increase was primarily driven by multiple new contracts implemented over the past year. This was partially offset by ongoing efforts to improve revenue quality and profitability across various accounts which resulted in some loss of business in addition to general weakness in demand across some of the end markets served.
Operating income increased 33% compared to the prior-year period. Second quarter 2024 included a
Truckload (JBT)
-
Second Quarter 2024 Segment Revenue:
$168 million ; down 12% -
Second Quarter 2024 Operating Income:
$3.5 million ; down 7%
JBT revenue decreased 12% compared to the same period in the previous year. Revenue excluding fuel surcharge revenue decreased 13% due to a 9% decline in load volume and a 4% decline in revenue per load excluding fuel surcharge revenue. Total average effective trailer count decreased by approximately 500 units, or 4% versus the prior-year period. Trailer turns in the quarter were down 5% from the prior period primarily due to weaker overall market demand compared to the second quarter 2023.
JBT operating income decreased 7% to
Cash Flow and Capitalization:
At
Our net capital expenditures for the six months ended
In the second quarter 2024, we purchased approximately 1,225,000 shares of common stock for approximately
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
About J.B. Hunt
J.B. Hunt’s vision is to create the most efficient transportation network in
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|||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended |
|||||||||||
2024 |
|
|
2023 |
||||||||
|
|
% Of |
|
|
|
|
% Of |
||||
Amount |
|
Revenue |
|
|
Amount |
|
Revenue |
||||
Operating revenues, excluding fuel surcharge revenues | $ |
2,545,023 |
$ |
2,707,560 |
|||||||
Fuel surcharge revenues |
383,662 |
425,063 |
|||||||||
Total operating revenues |
2,928,685 |
100.0 |
% |
3,132,623 |
100.0 |
% |
|||||
Operating expenses | |||||||||||
Rents and purchased transportation |
1,274,011 |
43.5 |
% |
1,404,586 |
44.8 |
% |
|||||
Salaries, wages and employee benefits |
803,047 |
27.4 |
% |
821,876 |
26.2 |
% |
|||||
Depreciation and amortization |
184,658 |
6.3 |
% |
179,972 |
5.7 |
% |
|||||
Fuel and fuel taxes |
164,291 |
5.6 |
% |
171,846 |
5.5 |
% |
|||||
Operating supplies and expenses |
120,425 |
4.1 |
% |
128,949 |
4.1 |
% |
|||||
General and administrative expenses, net of asset dispositions |
74,707 |
2.6 |
% |
61,472 |
2.1 |
% |
|||||
Insurance and claims |
73,222 |
2.5 |
% |
63,893 |
2.1 |
% |
|||||
Operating taxes and licenses |
17,575 |
0.6 |
% |
18,951 |
0.6 |
% |
|||||
Communication and utilities |
11,040 |
0.4 |
% |
10,366 |
0.3 |
% |
|||||
Total operating expenses |
2,722,976 |
93.0 |
% |
2,861,911 |
91.4 |
% |
|||||
Operating income |
205,709 |
7.0 |
% |
270,712 |
8.6 |
% |
|||||
Net interest expense |
20,198 |
0.7 |
% |
14,604 |
0.4 |
% |
|||||
Earnings before income taxes |
185,511 |
6.3 |
% |
256,108 |
8.2 |
% |
|||||
Income taxes |
49,638 |
1.7 |
% |
66,556 |
2.1 |
% |
|||||
Net earnings | $ |
135,873 |
4.6 |
% |
$ |
189,552 |
6.1 |
% |
|||
Average diluted shares outstanding |
103,146 |
104,566 |
|||||||||
Diluted earnings per share | $ |
1.32 |
$ |
1.81 |
|
|||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Six Months Ended |
|||||||||||
2024 |
|
|
2023 |
||||||||
|
|
% Of |
|
|
|
|
% Of |
||||
Amount |
|
Revenue |
|
|
Amount |
|
Revenue |
||||
Operating revenues, excluding fuel surcharge revenues | $ |
5,097,508 |
$ |
5,450,070 |
|||||||
Fuel surcharge revenues |
775,177 |
912,142 |
|||||||||
Total operating revenues |
5,872,685 |
100.0 |
% |
6,362,212 |
100.0 |
% |
|||||
Operating expenses | |||||||||||
Rents and purchased transportation |
2,554,998 |
43.5 |
% |
2,872,384 |
45.1 |
% |
|||||
Salaries, wages and employee benefits |
1,610,931 |
27.4 |
% |
1,646,875 |
25.9 |
% |
|||||
Depreciation and amortization |
367,655 |
6.3 |
% |
355,784 |
5.6 |
% |
|||||
Fuel and fuel taxes |
337,817 |
5.8 |
% |
367,680 |
5.8 |
% |
|||||
Operating supplies and expenses |
243,416 |
4.1 |
% |
257,308 |
4.0 |
% |
|||||
General and administrative expenses, net of asset dispositions |
151,490 |
2.6 |
% |
121,879 |
2.0 |
% |
|||||
Insurance and claims |
148,908 |
2.5 |
% |
134,221 |
2.1 |
% |
|||||
Operating taxes and licenses |
35,110 |
0.6 |
% |
37,058 |
0.6 |
% |
|||||
Communication and utilities |
22,282 |
0.4 |
% |
20,822 |
0.3 |
% |
|||||
Total operating expenses |
5,472,607 |
93.2 |
% |
5,814,011 |
91.4 |
% |
|||||
Operating income |
400,078 |
6.8 |
% |
548,201 |
8.6 |
% |
|||||
Net interest expense |
35,847 |
0.6 |
% |
29,393 |
0.4 |
% |
|||||
Earnings before income taxes |
364,231 |
6.2 |
% |
518,808 |
8.2 |
% |
|||||
Income taxes |
100,865 |
1.7 |
% |
131,488 |
2.1 |
% |
|||||
Net earnings | $ |
263,366 |
4.5 |
% |
$ |
387,320 |
6.1 |
% |
|||
Average diluted shares outstanding |
103,626 |
104,647 |
|||||||||
Diluted earnings per share | $ |
2.54 |
$ |
3.70 |
Financial Information By Segment | |||||||||||||
(in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended |
|||||||||||||
2024 |
|
|
2023 |
||||||||||
|
|
% Of |
|
|
|
|
% Of |
||||||
Amount |
|
Total |
|
|
Amount |
|
Total |
||||||
Revenue | |||||||||||||
Intermodal | $ |
1,407,496 |
|
48 |
% |
$ |
1,489,148 |
|
48 |
% |
|||
Dedicated |
851,010 |
|
29 |
% |
887,593 |
|
28 |
% |
|||||
Integrated Capacity Solutions |
270,378 |
|
9 |
% |
343,691 |
|
11 |
% |
|||||
Final Mile Services |
235,290 |
|
8 |
% |
223,939 |
|
7 |
% |
|||||
Truckload |
168,095 |
|
6 |
% |
191,803 |
|
6 |
% |
|||||
Subtotal |
2,932,269 |
|
100 |
% |
3,136,174 |
|
100 |
% |
|||||
Intersegment eliminations |
(3,584 |
) |
(0 |
%) |
(3,551 |
) |
(0 |
%) |
|||||
Consolidated revenue | $ |
2,928,685 |
|
100 |
% |
$ |
3,132,623 |
|
100 |
% |
|||
Operating income | |||||||||||||
Intermodal | $ |
99,244 |
|
48 |
% |
$ |
142,860 |
|
53 |
% |
|||
Dedicated |
96,410 |
|
47 |
% |
113,615 |
|
42 |
% |
|||||
Integrated Capacity Solutions |
(13,287 |
) |
(7 |
%) |
(4,419 |
) |
(2 |
%) |
|||||
Final Mile Services |
19,778 |
|
10 |
% |
14,824 |
|
5 |
% |
|||||
Truckload |
3,549 |
|
2 |
% |
3,798 |
|
2 |
% |
|||||
Other (1) |
15 |
|
0 |
% |
34 |
|
0 |
% |
|||||
Operating income | $ |
205,709 |
|
100 |
% |
$ |
270,712 |
|
100 |
% |
|||
Six Months Ended |
|||||||||||||
2024 |
|
|
2023 |
||||||||||
|
|
% Of |
|
|
|
|
% Of |
||||||
Amount |
|
Total |
|
|
Amount |
|
Total |
||||||
Revenue | |||||||||||||
Intermodal | $ |
2,802,846 |
|
48 |
% |
$ |
3,028,707 |
|
48 |
% |
|||
Dedicated |
1,711,026 |
|
29 |
% |
1,766,735 |
|
28 |
% |
|||||
Integrated Capacity Solutions |
555,665 |
|
9 |
% |
728,465 |
|
11 |
% |
|||||
Final Mile Services |
464,570 |
|
8 |
% |
449,016 |
|
7 |
% |
|||||
Truckload |
346,407 |
|
6 |
% |
397,665 |
|
6 |
% |
|||||
Subtotal |
5,880,514 |
|
100 |
% |
6,370,588 |
|
100 |
% |
|||||
Intersegment eliminations |
(7,829 |
) |
(0 |
%) |
(8,376 |
) |
(0 |
%) |
|||||
Consolidated revenue | $ |
5,872,685 |
|
100 |
% |
$ |
6,362,212 |
|
100 |
% |
|||
Operating income | |||||||||||||
Intermodal | $ |
201,133 |
|
50 |
% |
$ |
311,518 |
|
57 |
% |
|||
Dedicated |
190,060 |
|
48 |
% |
216,175 |
|
39 |
% |
|||||
Integrated Capacity Solutions |
(30,828 |
) |
(8 |
%) |
(9,791 |
) |
(2 |
%) |
|||||
Final Mile Services |
34,864 |
|
9 |
% |
21,444 |
|
4 |
% |
|||||
Truckload |
4,778 |
|
1 |
% |
8,788 |
|
2 |
% |
|||||
Other (1) |
71 |
|
0 |
% |
67 |
|
0 |
% |
|||||
Operating income | $ |
400,078 |
|
100 |
% |
$ |
548,201 |
|
100 |
% |
|||
(1) Includes corporate support activity |
Operating Statistics by Segment | |||||||
(unaudited) | |||||||
Three Months Ended |
|||||||
2024 |
|
|
2023 |
||||
Intermodal | |||||||
Loads |
497,446 |
|
501,681 |
|
|||
Average length of haul |
1,689 |
|
1,655 |
|
|||
Revenue per load | $ |
2,829 |
|
$ |
2,968 |
|
|
Average tractors during the period * |
6,209 |
|
6,517 |
|
|||
Tractors (end of period) * |
6,162 |
|
6,491 |
|
|||
Trailing equipment (end of period) |
121,169 |
|
116,481 |
|
|||
Average effective trailing equipment usage |
98,350 |
|
95,815 |
|
|||
Dedicated | |||||||
Loads |
1,007,798 |
|
1,104,896 |
|
|||
Average length of haul |
182 |
|
172 |
|
|||
Revenue per truck per week** | $ |
5,004 |
|
$ |
5,182 |
|
|
Average trucks during the period*** |
13,142 |
|
13,236 |
|
|||
Trucks (end of period) *** |
12,889 |
|
13,228 |
|
|||
Trailing equipment (end of period) |
31,802 |
|
31,280 |
|
|||
Average effective trailing equipment usage |
32,461 |
|
31,979 |
|
|||
Integrated Capacity Solutions | |||||||
Loads |
145,362 |
|
194,635 |
|
|||
Revenue per load | $ |
1,860 |
|
$ |
1,766 |
|
|
Gross profit margin |
14.8 |
% |
13.0 |
% |
|||
Employee count (end of period) |
708 |
|
769 |
|
|||
Approximate number of third-party carriers (end of period) |
109,200 |
|
144,600 |
|
|||
Marketplace for J.B. Hunt 360 revenue (millions) | $ |
104.1 |
|
$ |
225.0 |
|
|
Final Mile Services | |||||||
Stops |
1,098,521 |
|
1,141,415 |
|
|||
Average trucks during the period*** |
1,374 |
|
1,551 |
|
|||
Truckload | |||||||
Loads |
92,628 |
|
101,402 |
|
|||
Revenue per load | $ |
1,815 |
|
$ |
1,892 |
|
|
Average length of haul |
646 |
|
659 |
|
|||
Tractors (end of period) | |||||||
Company-owned |
23 |
|
33 |
|
|||
Independent contractor |
1,874 |
|
2,035 |
|
|||
Total tractors |
1,897 |
|
2,068 |
|
|||
Trailers (end of period) |
13,299 |
|
13,851 |
|
|||
Average effective trailing equipment usage |
12,600 |
|
13,108 |
|
|||
* Includes company-owned and independent contractor tractors | |||||||
** Using weighted workdays | |||||||
*** Includes company-owned, independent contractor, and customer-owned trucks |
Operating Statistics by Segment | |||||||
(unaudited) | |||||||
Six Months Ended |
|||||||
2024 |
|
|
2023 |
||||
Intermodal | |||||||
Loads |
982,612 |
|
987,772 |
|
|||
Average length of haul |
1,689 |
|
1,653 |
|
|||
Revenue per load | $ |
2,852 |
|
$ |
3,066 |
|
|
Average tractors during the period * |
6,277 |
|
6,558 |
|
|||
Tractors (end of period) * |
6,162 |
|
6,491 |
|
|||
Trailing equipment (end of period) |
121,169 |
|
116,481 |
|
|||
Average effective trailing equipment usage |
97,231 |
|
96,061 |
|
|||
Dedicated | |||||||
Loads |
2,012,135 |
|
2,182,268 |
|
|||
Average length of haul |
181 |
|
172 |
|
|||
Revenue per truck per week** | $ |
5,012 |
|
$ |
5,120 |
|
|
Average trucks during the period*** |
13,220 |
|
13,353 |
|
|||
Trucks (end of period) *** |
12,889 |
|
13,228 |
|
|||
Trailing equipment (end of period) |
31,802 |
|
31,280 |
|
|||
Average effective trailing equipment usage |
32,728 |
|
31,679 |
|
|||
Integrated Capacity Solutions | |||||||
Loads |
303,609 |
|
397,166 |
|
|||
Revenue per load | $ |
1,830 |
|
$ |
1,834 |
|
|
Gross profit margin |
14.5 |
% |
13.3 |
% |
|||
Employee count (end of period) |
708 |
|
769 |
|
|||
Approximate number of third-party carriers (end of period) |
109,200 |
|
144,600 |
|
|||
Marketplace for J.B. Hunt 360 revenue (millions) | $ |
209.6 |
|
$ |
475.6 |
|
|
Final Mile Services | |||||||
Stops |
2,175,210 |
|
2,303,553 |
|
|||
Average trucks during the period*** |
1,391 |
|
1,601 |
|
|||
Truckload | |||||||
Loads |
186,313 |
|
200,186 |
|
|||
Revenue per load | $ |
1,859 |
|
$ |
1,986 |
|
|
Average length of haul |
662 |
|
650 |
|
|||
Tractors (end of period) | |||||||
Company-owned |
23 |
|
33 |
|
|||
Independent contractor |
1,874 |
|
2,035 |
|
|||
Total tractors |
1,897 |
|
2,068 |
|
|||
Trailers (end of period) |
13,299 |
|
13,851 |
|
|||
Average effective trailing equipment usage |
12,746 |
|
13,118 |
|
|||
* Includes company-owned and independent contractor tractors | |||||||
** Using weighted workdays | |||||||
*** Includes company-owned, independent contractor, and customer-owned trucks |
|
|||||
Condensed Consolidated Balance Sheets | |||||
(in thousands) | |||||
(unaudited) | |||||
|
|
||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ |
53,505 |
$ |
53,344 |
|
Accounts Receivable, net |
1,251,665 |
1,334,912 |
|||
Prepaid expenses and other |
608,540 |
696,656 |
|||
Total current assets |
1,913,710 |
2,084,912 |
|||
Property and equipment |
9,007,510 |
8,767,872 |
|||
Less accumulated depreciation |
3,174,017 |
2,993,959 |
|||
Net property and equipment |
5,833,493 |
5,773,913 |
|||
Other assets, net |
668,677 |
679,435 |
|||
$ |
8,415,880 |
$ |
8,538,260 |
||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Current debt | $ |
- |
$ |
249,961 |
|
Trade accounts payable |
724,862 |
737,364 |
|||
Claims accruals |
594,482 |
547,277 |
|||
Accrued payroll |
111,234 |
94,563 |
|||
Other accrued expenses |
150,882 |
150,256 |
|||
Total current liabilities |
1,581,460 |
1,779,421 |
|||
Long-term debt |
1,483,804 |
1,326,107 |
|||
Other long-term liabilities |
394,494 |
392,766 |
|||
Deferred income taxes |
880,126 |
936,208 |
|||
Shareholders' equity |
4,075,996 |
4,103,758 |
|||
$ |
8,415,880 |
$ |
8,538,260 |
||
Supplemental Data |
|||||
(unaudited) |
|||||
|
|
||||
Actual shares outstanding at end of period (000) |
101,987 |
103,220 |
|||
Book value per actual share outstanding at end of period | $ |
39.97 |
$ |
39.76 |
|
Six Months Ended June 30 |
|||||
2024 |
2023 |
||||
Net cash provided by operating activities (000) | $ |
827,021 |
$ |
1,097,290 |
|
Net capital expenditures (000) | $ |
408,853 |
$ |
853,778 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716256509/en/
Senior Vice President – Finance
(479) 820-2723
Source: