ex99.htm

LOWELL, ARKANSAS, October 14, 2010 - J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2010 net earnings of $52.2 million, or diluted earnings per share of 41 cents vs. third quarter 2009 earnings of $40.0 million, or 31 cents per diluted share. Third quarter 2010 results included $4.0 million of pretax expense related to a $5.0 million commitment to Arkansas Children’s Hospital, which reduced net earnings by 2 cents per diluted share.

Total operating revenue for the current quarter was $986 million, an 18% increase over the $834 million reported for the third quarter 2009. The increase in operating revenue was primarily attributable to higher Intermodal segment volumes, significant growth in our Dedicated Contract Services (DCS) segment and revenue growth in our Truck segment. Utilization of equipment also improved significantly as did pricing in the Truck segment. Current quarter operating revenue, excluding fuel surcharges, increased 15% vs. comparable quarter 2009.

“We continue to distance ourselves from the ‘Great Recession’ by increased revenues, operating income, net earnings and EPS of 18%, 29%, 31% and 32%, respectively, over last year’s third quarter. Though freight volumes backed off from the torrid pace we saw in June, demand remained steady across all segments. In Intermodal, we continued to see record numbers of loads and double digit increases compared to prior periods despite the fact that, unlike most of the intermodal industry, we were growing last year, making the comparables more difficult for us. September 30th was an all-time high in load count for a single day in Intermodal and we expect to surpass one million loads for the first time later this year. The ability to continue to grow our Intermodal business is a testament to the differentiated service and value we and our rail partners bring to the shipping public.

“Load volume in our DCS segment, which we believe is a strong indicator of current customer demand and the general direction of the freight economy, continues to point toward steady business activity. Contract pricing, reflecting improvement in supply and demand balance, in both Intermodal and Truck, rose sequentially from this year’s second quarter and from the same period a year ago. Assuming demand remains near current levels, we expect to see freight rates continue to rebound from the unsustainable lows we saw during the recession.

“During the current quarter we reactivated and increased certain compensation and benefit programs for our great team of employees who sacrificed during the downturn. We were able to make these moves as profits rebounded quicker than we had anticipated going into 2010. Also during the current quarter, we were proud to make a $5.0 million commitment to Arkansas Children’s Hospital (ACH). ACH is among the leading pediatric critical care facilities in the country treating children from an average of 45 states and from countries all over the world. We are honored to be able to participate in a major expansion that will greatly improve the quality of services they provide,” stated Kirk Thompson, President and CEO.

JBI load count was up 17% in the current quarter compared to a year ago. Demand was generally strong across the country as our eastern network grew 26% and transcontinental business grew 13% over the same period 2009. To support this growth we transferred 1,000 trailers from our Truck business unit and added approximately 900 net containers during the current period to end the quarter with approximately 43,000 units of trailing capacity.

§	Third Quarter 2010 Segment Revenue:	$232 million; up 18%
§	Third Quarter 2010 Operating Income:	$22.1 million; up 17%

DCS revenue increased 18% while revenue, excluding fuel surcharges, increased 16%. Revenue in our delivery channel, defined as delivering product to its point of consumption, increased 66% vs. third quarter 2009. Some examples of operations in our delivery channel include delivering to and installing product in single family homes, delivering food to restaurants and animal feed to farms. Revenue in our replenishment channel increased 13%. An example of our replenishment channel is delivering product to a retail store where it will be purchased and consumed elsewhere. Revenue in our capacity channel, which has more traditional truckload characteristics, decreased 20% vs. third quarter 2009. We intend to continue redeploying our assets away from business that is highly competitive and easily replicated into new business with potentially higher returns.

§	Third Quarter 2010 Segment Revenue:	$124 million; up 4%
§	Third Quarter 2010 Operating Income:	$ 6.5 million vs. $(0.4) million

JBT revenue for the current quarter increased 4% vs. third quarter 2009. Excluding fuel surcharges, JBT revenue increased 2% despite a 13% reduction in tractor count. At the end of the current quarter, our tractor count was 2,793 vs. 3,227 in 2009. JBT’s operating income was $6.5 million in current quarter 2010 vs. a loss of $(0.4) million in third quarter 2009.

Rates continued to improve in the current quarter, gaining nearly 9% over the same period last year and 3% from the second quarter of this year. In addition, our average length of haul in 2010 was 8% longer than a year ago, amplifying the effect of the rate change. Our rate gain can be attributed mainly to a comprehensive review of approximately 200 underperforming accounts and improving supply and demand.

§	Third Quarter 2010 Segment Revenue:	$ 77 million; up 14%
§	Third Quarter 2010 Operating Income:	$2.7 million; down 11%

ICS revenue increased 14% vs. third quarter 2009. Our gross profit (gross revenue less purchased transportation expense) declined 2% to $11 million and our gross profit margin decreased to 14.3% in the current quarter vs. 16.5% last year, partly due to a tighter market balance of supply and demand for transportation services. However, our gross profit increased 13% vs. second quarter 2010 due to increased contract pricing.

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, 2009. 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 immediately to interested parties on our web site, www.jbhunt.com.

	Three Months Ended September 30
	2010					2009
			% Of						% Of
	Amount		Revenue			Amount			Revenue

Operating revenues, excluding fuel surcharge revenues	$	854,836				$	740,697
Fuel surcharge revenues		131,188					93,052
Total operating revenues		986,024		100.0	%		833,749			100.0	%

Operating expenses
Rents and purchased transportation		446,721		45.3	%		365,057			43.8	%
Salaries, wages and employee benefits		237,353		24.1	%		203,446			24.4	%
Fuel and fuel taxes		84,592		8.6	%		72,510			8.7	%
Depreciation and amortization		49,808		5.1	%		47,098			5.6	%
Operating supplies and expenses		39,905		4.0	%		40,398			4.8	%
Insurance and claims		11,543		1.2	%		12,316			1.5	%
General and administrative expenses, net of asset dispositions		13,147		1.2	%		10,232			1.2	%
Operating taxes and licenses		6,790		0.7	%		6,984			0.8	%
Communication and utilities		4,675		0.5	%		4,754			0.6	%
Total operating expenses		894,534		90.7	%		762,795			91.5	%
Operating income		91,490		9.3	%		70,954			8.5	%
Net interest expense		6,662		0.7	%		6,308			0.8	%
Equity in operations of affiliated company		-		-			(229	)		(0.0	%)
Earnings before income taxes		84,828		8.6	%		64,875			7.8	%
Income taxes		32,659		3.3	%		24,912			3.0	%
Net earnings	$	52,169		5.3	%	$	39,963			4.8	%
Average diluted shares outstanding		126,404					129,819
Diluted earnings per share	$	0.41				$	0.31

	Nine Months Ended September 30
	2010					2009
			% Of					% Of
	Amount		Revenue			Amount		Revenue

Operating revenues, excluding fuel surcharge revenues	$	2,403,695				$	2,107,337
Fuel surcharge revenues		369,778					219,032
Total operating revenues		2,773,473		100.0	%		2,326,369		100.0	%

Operating expenses
Rents and purchased transportation		1,240,951		44.7	%		1,001,048		43.0	%
Salaries, wages and employee benefits		673,852		24.3	%		588,725		25.3	%
Fuel and fuel taxes		249,511		9.0	%		194,452		8.4	%
Depreciation and amortization		146,968		5.3	%		141,555		6.1	%
Operating supplies and expenses		114,512		4.1	%		114,690		4.9	%
Insurance and claims		34,743		1.3	%		38,024		1.6	%
General and administrative expenses, net of asset dispositions		28,628		1.1	%		38,082		1.6	%
Operating taxes and licenses		20,032		0.7	%		20,901		0.9	%
Communication and utilities		13,999		0.5	%		13,857		0.6	%
Total operating expenses		2,523,196		91.0	%		2,151,334		92.5	%
Operating income		250,277		9.0	%		175,035		7.5	%
Net interest expense		19,767		0.7	%		20,569		0.9	%
Equity in operations of affiliated company		-		-			619		0.0	%
Earnings before income taxes		230,510		8.3	%		153,847		6.6	%
Income taxes		88,746		3.2	%		59,077		2.5	%
Net earnings	$	141,764		5.1	%	$	94,770		4.1	%
Average diluted shares outstanding		128,559					129,251
Diluted earnings per share	$	1.10				$	0.73

Financial Information By Segment
(in thousands) (unaudited)

	Three Months Ended September 30
	2010						2009
				% Of						% Of
	Amount			Total			Amount			Total
Revenue

Intermodal	$	559,028			57	%	$	455,955			55	%
Dedicated		232,395			24	%		196,785			24	%
Truck		124,049			13	%		119,199			14	%
Integrated Capacity Solutions		76,924			8	%		67,653			8	%
Subtotal		992,396			101	%		839,592			101	%
Intersegment eliminations		(6,372	)		(1	%)		(5,843	)		(1	%)
Consolidated revenue	$	986,024			100	%	$	833,749			100	%


Operating income

Intermodal	$	60,347			66	%	$	49,577			70	%
Dedicated		22,118			24	%		18,874			27	%
Truck		6,530			7	%		(421	)		(1	%)
Integrated Capacity Solutions		2,692			3	%		3,039			4	%
Other (1)		(197	)		(0	%)		(115	)		(0	%)
Operating income	$	91,490			100	%	$	70,954			100	%

	Nine Months Ended September 30
	2010						2009
				% Of						% Of
	Amount			Total			Amount			Total
Revenue

Intermodal	$	1,553,180			56	%	$	1,272,393			55	%
Dedicated		668,905			24	%		550,443			24	%
Truck		361,427			13	%		328,826			14	%
Integrated Capacity Solutions		207,986			7	%		192,236			8	%
Subtotal		2,791,498			101	%		2,343,898			101	%
Intersegment eliminations		(18,025	)		(1	%)		(17,529	)		(1	%)
Consolidated revenue	$	2,773,473			100	%	$	2,326,369			100	%


Operating income

Intermodal	$	167,347			67	%	$	129,678			74	%
Dedicated		62,794			25	%		44,305			25	%
Truck		14,301			6	%		(10,259	)		(6	%)
Integrated Capacity Solutions		6,014			2	%		11,381			7	%
Other (1)		(179	)		(0	%)		(70	)		(0	%)
Operating income	$	250,277			100	%	$	175,035			100	%

Operating Statistics by Segment
(unaudited)

	Three Months Ended September 30
	2010			2009
Intermodal

Loads		279,786			239,270
Average length of haul		1,777			1,795
Revenue per load	$	1,998		$	1,906
Average tractors during the period *		2,610			2,254

Tractors (end of period)
Company-owned		2,554			2,289
Independent contractor		74			4
Total tractors		2,628			2,293

Trailing equipment (end of period)		43,130			40,432
Average effective trailing equipment usage		42,299			39,816

Dedicated

Loads		353,638			313,743
Average length of haul		198			204
Revenue per truck per week**	$	3,972		$	3,476
Average trucks during the period***		4,499			4,363

Trucks (end of period)
Company-owned		4,145			3,992
Independent contractor		23			35
Customer-owned (Dedicated operated)		350			358
Total trucks		4,518			4,385

Trailing equipment (end of period)		10,404			9,554
Average effective trailing equipment usage		12,471			11,864

Truck

Loads		115,322			134,191
Average length of haul		530			492
Loaded miles (000)		60,447			65,495
Total miles (000)		69,585			75,913
Average nonpaid empty miles per load		70.8			72.9
Revenue per tractor per week**	$	3,443		$	3,209
Average tractors during the period *		2,797			2,885

Tractors (end of period)
Company-owned		1,749			2,018
Independent contractor		1,044			1,209
Total tractors		2,793			3,227

Trailers (end of period)		10,492			12,485
Average effective trailing equipment usage		8,975			10,137

Integrated Capacity Solutions

Loads		57,016			61,589
Revenue per load	$	1,349		$	1,098
Gross profit margin		14.3	%		16.5	%
Approximate number of third-party carriers (end of period)		24,800			21,000

* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks

Operating Statistics by Segment
(unaudited)

	Nine Months Ended September 30
	2010			2009
Intermodal

Loads		789,446			663,386
Average length of haul		1,775			1,792
Revenue per load	$	1,967		$	1,918
Average tractors during the period *		2,486			2,171

Tractors (end of period)
Company-owned		2,554			2,289
Independent contractor		74			4
Total tractors		2,628			2,293

Trailing equipment (end of period)		43,130			40,432
Average effective trailing equipment usage		40,634			39,377

Dedicated

Loads		1,028,518			888,251
Average length of haul		197			209
Revenue per truck per week**	$	3,915		$	3,256
Average trucks during the period***		4,433			4,391

Trucks (end of period)
Company-owned		4,145			3,992
Independent contractor		23			35
Customer-owned (Dedicated operated)		350			358
Total trucks		4,518			4,385

Trailing equipment (end of period)		10,404			9,554
Average effective trailing equipment usage		12,289			12,250

Truck

Loads		355,570			372,109
Average length of haul		520			478
Loaded miles (000)		182,637			177,352
Total miles (000)		208,957			205,516
Average nonpaid empty miles per load		66.9			73.5
Revenue per tractor per week**	$	3,346		$	2,857
Average tractors during the period*		2,816			2,999

Tractors (end of period)
Company-owned		1,749			2,018
Independent contractor		1,044			1,209
Total tractors		2,793			3,227

Trailers (end of period)		10,492			12,485
Average effective trailing equipment usage		9,525			10,082

Integrated Capacity Solutions

Loads		169,188			179,491
Revenue per load	$	1,229		$	1,071
Gross profit margin		14.3	%		19.2	%
Approximate number of third-party carriers (end of period)		24,800			21,000

* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks

	September 30, 2010		December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	68,560	$	7,843
Accounts Receivable		371,120		310,339
Assets held for sale		171		3,192
Prepaid expenses and other		46,414		71,091
Total current assets		486,265		392,465
Property and equipment		2,277,087		2,192,947
Less accumulated depreciation		827,055		748,276
Net property and equipment		1,450,032		1,444,671
Other assets		19,712		19,778
	$	1,956,009	$	1,856,914


LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt	$	200,000	$	-
Trade accounts payable		218,703		191,347
Claims accruals		27,801		18,545
Accrued payroll		49,810		34,651
Other accrued expenses		17,794		14,170
Deferred income taxes		11,108		10,505
Total current liabilities		525,216		269,218

Long-term debt		449,164		565,000
Other long-term liabilities		41,115		35,581
Deferred income taxes		346,056		343,262
Stockholders' equity		594,458		643,853
	$	1,956,009	$	1,856,914

J.B. Hunt Transport Services, Inc	Contact:	David G. Mee
615 J.B. Hunt Corporate Drive		Executive Vice President,
Lowell, Arkansas 72745		Finance and Administration
(NASDAQ: JBHT)		and Chief Financial Officer
		(479) 820-8363

§	Third Quarter 2010 Revenue:	$986 million; up 18%
§	Third Quarter 2010 Operating Income:	$91.5* million; up 29%
§	Third Quarter 2010 EPS:	41* cents vs. 31 cents

	September 30, 2010		December 31, 2009

Actual shares outstanding at end of period (000)		123,272		127,242

Book value per actual share outstanding at end of period	$	4.82	$	5.06


	Nine Months Ended September 30
		2010		2009

Net cash provided by operating activities (000)	$	330,237	$	248,160

Net capital expenditures (000)	$	145,360	$	209,007

§	Third Quarter 2010 Segment Revenue:	$559 million; up 23%
§	Third Quarter 2010 Operating Income:	$60.3 million; up 22%