EX-99.1 2 ex_324890.htm EXHIBIT 99.1 ex_324890.htm

Exhibit 99.1

 

 

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J.B. Hunt Transport Services, Inc. Contact: Brad Delco
615 J.B. Hunt Corporate Drive Vice President – Finance & Investor Relations
Lowell, Arkansas 72745 (479) 820-2723
(NASDAQ: JBHT)  

 

FOR IMMEDIATE RELEASE

 

 

J.B. HUNT TRANSPORT SERVICES, INC. REPORTS U.S. GAAP REVENUES, NET EARNINGS AND EARNINGS PER SHARE FOR BOTH THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2021

 

  Fourth Quarter 2021 Revenue: $3.50 billion; up 28%
  Fourth Quarter 2021 Operating Income: $322.5 million; up 55%
  Fourth Quarter 2021 EPS: $2.28 vs. $1.44; up 58%
       
       
  Full Year 2021 Revenue: $12.17 billion; up 26%
  Full Year 2021 Operating Income: $1.05 billion; up 47%
  Full Year 2021 EPS: $7.14 vs. $4.74; up 51%

 

LOWELL, Ark., January 18, 2021 - J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced fourth quarter 2021 U.S. GAAP (United States Generally Accepted Accounting Principles) net income of $242.2 million, or diluted earnings per share of $2.28 vs. fourth quarter 2020 net earnings of $154.0 million, or diluted earnings per share of $1.44.

 

Total operating revenue for the current quarter was $3.50 billion, compared with $2.74 billion for the fourth quarter 2020. All segments contributed to the revenue growth versus the prior year period. Truckload (JBT) and Integrated Capacity Solutions™ (ICS) grew revenue 85% and 26% year over year, respectively, as both segments were able to source capacity for customers by leveraging the talents and skills of our people and our investments in technology across the organization, including the Marketplace for J.B. Hunt 360°®. Intermodal (JBI) revenue grew 26%, driven by a 30% increase in revenue per load, partially offset by a 3% decline in volume. Dedicated Contract Services® (DCS®) revenue grew 25% as a result of a 16% increase in average revenue producing trucks and a 7% increase in fleet productivity versus the prior year period. Final Mile Services® (FMS) revenue increased 4% as strong demand for services in the segment were offset by supply-chain related challenges in most of the primary markets served. Current quarter total operating revenue, excluding fuel surcharges, increased approximately 22% vs. the comparable quarter 2020.

 

Total freight transactions in the Marketplace for J.B. Hunt 360 increased 27% to $593 million in the fourth quarter 2021 compared to $468 million in the prior year quarter. ICS revenue on the platform increased 11% to $431 million versus the year ago period. JBT and JBI executed approximately $113 million and $48 million, respectively, of third-party dray, independent contractor and power-only capacity through the platform during the quarter.

 

U.S. GAAP operating income for the current quarter totaled $322.5 million vs. $207.7 million for the fourth quarter 2020. Operating income increased from fourth quarter 2020 primarily from customer rate and cost recovery efforts and further scaling into our technology investments at a consolidated level, in addition to a $5.7 million benefit from the reduction of a contingent liability in FMS. These items were partially offset by network fluidity challenges presented from both rail and customer activity in JBI as well as increases in: frontline employee bonuses; driver wage and recruiting costs; rail and truck purchase transportation expense; non-driver personnel salary, wages and incentive compensation; group medical and casualty insurance expense; and implementation costs for newly awarded business in both DCS and FMS segments.

 

 

 

Net interest expense in the current quarter decreased primarily from lower interest rates from fourth quarter 2020. The fourth quarter effective tax rates for 2021 and 2020 were 22.6% and 22.0%, respectively. The annual effective tax rates for 2021 and 2020 were 23.9% and 24.0%, respectively. We expect our 2022 annual tax rate to be between 24.0% and 25.0%.

 

Segment Information:

 

Intermodal (JBI)

Fourth Quarter 2021 Segment Revenue: $1.57 billion; up 26%
Fourth Quarter 2021 Operating Income: $195.3 million; up 76%

 

Intermodal volumes declined 3% over the same period in 2020. Eastern network loads increased 1%, while transcontinental loads declined 5% compared to the fourth quarter 2020. While demand for intermodal capacity remains strong, ongoing network fluidity challenges driven by rail restrictions and customer detention of equipment, were even further impacted by weather, derailments and COVID-related labor shortages and disruptions during the quarter. Despite these volume-related challenges, revenue increased 26% for the quarter versus the prior year, driven by a 30% increase in revenue per load resulting from changes in the mix of freight, customer rates, and fuel surcharge revenues. Revenue per load excluding fuel surcharge revenue was up 22% year over year.

 

Operating income increased 76% in the fourth quarter from higher customer rate and cost recovery efforts compared to the prior year period. Rate and cost recovery efforts were partially offset by higher rail and third-party dray purchased transportation costs, increases in driver and non-driver wages and benefits, higher driver recruiting costs, and activity-based costs incurred to counteract network inefficiencies stemming from rail and customer fluidity challenges. The current period ended with approximately 105,000 units of trailing capacity and approximately 6,190 power units in the dray fleet.

 

Dedicated Contract Services (DCS)

Fourth Quarter 2021 Segment Revenue: $712 million; up 25%
Fourth Quarter 2021 Operating Income: $72.6 million; down 6%

 

DCS revenue increased 25% during the current quarter over the same period 2020. Productivity (revenue per truck per week) increased approximately 7% versus the prior period. Productivity, excluding fuel surcharge revenue increased 2% from a year ago primarily from contracted indexed-based price escalators partially offset by lower productivity on start-up accounts and a greater number of open trucks due to the tight labor market and COVID-related labor disruptions. A net additional 1,778 revenue producing trucks were in the fleet by the end of the quarter compared to the prior year period, and a net additional 439 versus the end of the third quarter 2021. Customer retention rates remain above 98%.

 

Operating income decreased 6% from the prior year quarter. Benefits from higher revenue and increased productivity of assets were more than offset by increases in casualty insurance expense, frontline employee bonuses, group medical benefits, driver wage and recruiting costs, non-driver personnel salary, wages and incentive compensation, and other costs related to the implementation of new, long-term contractual business.

 

Integrated Capacity Solutions (ICS)

Fourth Quarter 2021 Segment Revenue: $739 million; up 26%
Fourth Quarter 2021 Operating Income: $21.2 million; up 280%

 

ICS revenue increased 26% in the current quarter versus the fourth quarter 2020. Revenue growth was primarily driven by a 27% increase in revenue per load resulting from changes in customer freight mix and higher contractual and spot rates in our truckload business as compared to the fourth quarter 2020. Overall segment volumes declined 1% with truckload volumes increasing 3% versus the prior year period. Contractual volumes represented approximately 54% of the total load volume and 43% of the total revenue in the current quarter compared to 51% and 35%, respectively, in fourth quarter 2020. Of the total reported ICS revenue, approximately $431 million was executed through the Marketplace for J.B. Hunt 360 compared to $387 million in fourth quarter 2020.

 

Operating income increased to $21.2 million compared to $5.6 million in the fourth quarter 2020. Benefits from higher gross margin were partially offset by higher personnel and technology costs as compared to the same period 2020. Gross profit margins increased to 12.2% in the current period versus 10.8% in the prior period. ICS carrier base increased 36% year over year.

 

 

 

Final Mile Services (FMS)

Fourth Quarter 2021 Segment Revenue: $222 million; up 4%
Fourth Quarter 2021 Operating Income: $7.4 million; up 35%

 

FMS revenue increased 4% compared to the same period 2020. Stop count within FMS decreased 22% during the current quarter versus a year ago. The addition of multiple customer contracts implemented over the last year were more than offset by the reduction of stops at several customers due to labor shortages and supply chain constraints. Productivity, defined as revenue per stop, increased approximately 33% compared to the prior year period primarily from a shift in the mix of business between asset and asset-light operations.

 

Operating income, which included a $5.7 million benefit from the reduction of a contingent liability, increased 35% over the prior year quarter. Excluding the benefit , operating income declined 68% versus the prior year period. Higher revenue from multiple new customer contracts was more than offset by significant increases in implementation expenses as a result of those same contracts, along with less revenue at some existing customers due to supply-chain constraints. Higher personnel expense related to salary, wages and incentive compensation were also offsetting items in the quarter.

 

Truck (JBT)

Fourth Quarter 2021 Segment Revenue: $259 million; up 85%
Fourth Quarter 2021 Operating Income: $25.9 million; up 210%

 

JBT revenue increased 85% from the same period in 2020. Revenue excluding fuel surcharge revenue increased 79%, primarily from a 55% increase in revenue per load excluding fuel surcharge revenue and a 15% increase in load count compared to a year ago. The increase in revenue per load excluding fuel surcharge revenue was driven by a 32% increase in revenue per loaded mile excluding fuel surcharge revenue and a 19% increase in average length of haul. Load count growth and the length of haul increase were primarily related to the continued net trailer additions and expansion of J.B. Hunt 360box® which leverages the J.B. Hunt 360 platform to access drop-trailer capacity for customers across our transportation network. Comparable contractual customer rates were up approximately 27% compared to the same period 2020. The current period ended with 11,172 trailers and 2,235 tractors, compared to 8,567 and 1,769 respectively for the prior year period.

 

Operating income increased to $25.9 million compared $8.4 million in the fourth quarter 2020. Benefits from increased load counts and revenue per load were partially offset by increases in purchased transportation expense, higher driver wages and recruiting costs and higher non-driver personnel expense related to salary, wages and incentive compensation. Further investments in both building out our trailer network and technology related to the continued expansion of 360box also partially offset higher revenue.

 

Cash Flow and Capitalization:

 

At December 31, 2021, we had total debt outstanding of $1.3 billion outstanding on various debt instruments which is comparable to the total debt levels at December 31, 2020, and September 30, 2021.

 

Our net capital expenditures for 2021 approximated $877 million vs. $601 million in 2020. At December 31, 2021, we had cash and cash equivalents of $356 million.

 

In the fourth quarter 2021, we purchased approximately 76,000 shares of our common stock for approximately $15 million. At December 31, 2021, we had approximately $351 million remaining under our share repurchase authorization. Actual shares outstanding at December 31, 2021, approximated 105.1 million.

 

 

 

Conference Call Information:

The Company will hold a conference call today from 4:00–5:00 pm CST to discuss the quarterly earnings. To participate in the call, dial 1-833-360-0810 (domestic) or 470-495-0976 (international) 15 minutes prior to the start of the call and provide the following conference ID: 8876825. A replay of the call will be posted on the investor relations section of our website later today.

 

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, 2020. 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 Transport Services, Inc., an S&P 500 company, provides innovative supply chain solutions for a variety of customers throughout North America. Utilizing an integrated, multimodal approach, the company applies technology driven methods to create the best solution for each customer, adding efficiency, flexibility, and value to their operations. J.B. Hunt services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, final mile, and more. J.B. Hunt Transport Services, Inc. stock trades on NASDAQ under the ticker symbol JBHT and is a component of the Dow Jones Transportation Average. J.B. Hunt Transport, Inc. is a wholly owned subsidiary of JBHT. For more information, visit www.jbhunt.com.

 

 

 

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J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

 

 

   

Three Months Ended December 31

 
   

2021

   

2020

 
           

% Of

           

% Of

 
   

Amount

   

Revenue

   

Amount

   

Revenue

 
                                 

Operating revenues, excluding fuel surcharge revenues

  $ 3,106,488             $ 2,551,777          

Fuel surcharge revenues

    390,483               185,875          

Total operating revenues

    3,496,971       100.0 %     2,737,652       100.0 %
                                 

Operating expenses

                               

Rents and purchased transportation

    1,891,298       54.1 %     1,486,341       54.3 %

Salaries, wages and employee benefits

    764,484       21.9 %     625,168       22.8 %

Depreciation and amortization

    141,254       4.0 %     134,589       4.9 %

Fuel and fuel taxes

    151,606       4.3 %     93,551       3.4 %

Operating supplies and expenses

    98,035       2.8 %     83,515       3.1 %

General and administrative expenses, net of asset dispositions

    52,955       1.6 %     48,431       1.8 %

Insurance and claims

    50,261       1.4 %     35,809       1.3 %

Operating taxes and licenses

    15,974       0.5 %     13,757       0.5 %

Communication and utilities

    8,601       0.2 %     8,800       0.3 %

Total operating expenses

    3,174,468       90.8 %     2,529,961       92.4 %

Operating income

    322,503       9.2 %     207,691       7.6 %

Net interest expense

    9,697       0.3 %     10,344       0.4 %

Earnings before income taxes

    312,806       8.9 %     197,347       7.2 %

Income taxes

    70,597       2.0 %     43,340       1.6 %

Net earnings

  $ 242,209       6.9 %   $ 154,007       5.6 %

Average diluted shares outstanding

    106,312               106,738          

Diluted earnings per share

  $ 2.28             $ 1.44          

 


 

 J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

 

   

Twelve Months Ended December 31

 
   

2021

   

2020

 
           

% Of

           

% Of

 
   

Amount

   

Revenue

   

Amount

   

Revenue

 
                                 

Operating revenues, excluding fuel surcharge revenues

  $ 10,915,442             $ 8,879,653          

Fuel surcharge revenues

    1,252,860               756,920          

Total operating revenues

    12,168,302       100.0 %     9,636,573       100.0 %
                                 

Operating expenses

                               

Rents and purchased transportation

    6,449,068       53.0 %     4,954,123       51.4 %

Salaries, wages and employee benefits

    2,761,680       22.7 %     2,347,716       24.4 %

Depreciation and amortization

    557,093       4.6 %     527,375       5.5 %

Fuel and fuel taxes

    530,642       4.4 %     357,483       3.7 %

Operating supplies and expenses

    369,294       3.0 %     334,350       3.5 %

General and administrative expenses, net of asset dispositions

    195,616       1.5 %     180,083       1.8 %

Insurance and claims

    165,052       1.4 %     134,482       1.4 %

Operating taxes and licenses

    59,462       0.5 %     54,331       0.6 %

Communication and utilities

    34,865       0.3 %     33,511       0.3 %

Total operating expenses

    11,122,772       91.4 %     8,923,454       92.6 %

Operating income

    1,045,530       8.6 %     713,119       7.4 %

Net interest expense

    45,758       0.4 %     47,094       0.5 %

Earnings before income taxes

    999,772       8.2 %     666,025       6.9 %

Income taxes

    238,966       1.9 %     159,990       1.6 %

Net earnings

  $ 760,806       6.3 %   $ 506,035       5.3 %

Average diluted shares outstanding

    106,593               106,766          

Diluted earnings per share

  $ 7.14             $ 4.74          

 

 

 

Financial Information By Segment 

(in thousands)

(unaudited)

 

   

Three Months Ended December 31

 
   

2021

   

2020

 
           

% Of

           

% Of

 
   

Amount

   

Total

   

Amount

   

Total

 
                                 

Revenue

                               
                                 

Intermodal

  $ 1,574,174       45 %   $ 1,249,065       46 %

Dedicated

    712,419       20 %     568,349       21 %

Integrated Capacity Solutions

    738,906       21 %     587,277       21 %

Final Mile Services

    221,907       6 %     213,161       8 %

Truckload

    259,078       8 %     140,384       5 %

Subtotal

    3,506,484       100 %     2,758,236       101 %

Intersegment eliminations

    (9,513 )     (0 %)     (20,584 )     (1 %)

Consolidated revenue

  $ 3,496,971       100 %   $ 2,737,652       100 %
                                 
                                 

Operating income

                               
                                 

Intermodal

  $ 195,337       61 %   $ 110,751       53 %

Dedicated

    72,638       23 %     77,564       37 %

Integrated Capacity Solutions

    21,190       6 %     5,575       3 %

Final Mile Services

    7,442       2 %     5,514       3 %

Truckload

    25,907       8 %     8,367       4 %

Other (1)

    (11 )     0 %     (80 )     0 %

Operating income

  $ 322,503       100 %   $ 207,691       100 %

 

 

   

Twelve Months Ended December 31

 
   

2021

   

2020

 
           

% Of

           

% Of

 
   

Amount

   

Total

   

Amount

   

Total

 

Revenue

                               
                                 

Intermodal

  $ 5,453,511       44 %   $ 4,675,074       48 %

Dedicated

    2,578,322       21 %     2,196,200       23 %

Integrated Capacity Solutions

    2,537,684       21 %     1,658,182       17 %

Final Mile Services

    841,963       7 %     688,431       7 %

Truckload

    795,850       7 %     462,720       5 %

Subtotal

    12,207,330       100 %     9,680,607       100 %

Intersegment eliminations

    (39,028 )     (0 %)     (44,034 )     (0 %)

Consolidated revenue

  $ 12,168,302       100 %   $ 9,636,573       100 %
                                 
                                 

Operating income

                               
                                 

Intermodal

  $ 602,540       58 %   $ 428,403       60 %

Dedicated

    304,125       29 %     313,987       44 %

Integrated Capacity Solutions

    46,324       4 %     (44,699 )     (6 %)

Final Mile Services

    27,909       3 %     (945 )     (0 %)

Truckload

    64,940       6 %     16,574       2 %

Other (1)

    (308 )     (0 %)     (201 )     (0 %)

Operating income

  $ 1,045,530       100 %   $ 713,119       100 %

 

(1)

Includes corporate support activity

 

 

 

Operating Statistics by Segment

(unaudited)

 

   

Three Months Ended December 31

 
   

2021

   

2020

 
                 

Intermodal

               
                 

Loads

    509,264       524,906  

Average length of haul

    1,693       1,711  

Revenue per load

  $ 3,091     $ 2,380  

Average tractors during the period *

    6,161       5,667  

Tractors (end of period) *

    6,194       5,663  

Trailing equipment (end of period)

    104,973       98,689  

Average effective trailing equipment usage

    102,926       97,267  
                 
                 

Dedicated

               
                 

Loads

    1,053,733       949,757  

Average length of haul

    160       159  

Revenue per truck per week**

  $ 4,879     $ 4,544  

Average trucks during the period***

    11,441       9,833  

Trucks (end of period) ***

    11,689       9,911  

Trailing equipment (end of period)

    28,822       27,290  
                 
                 

Integrated Capacity Solutions

               
                 

Loads

    364,620       369,188  

Revenue per load

  $ 2,027     $ 1,591  

Gross profit margin

    12.2 %     10.8 %

Employee count (end of period)

    975       1,011  

Approximate number of third-party carriers (end of period)

    136,400       100,200  

Marketplace for J.B. Hunt 360 revenue (millions)

  $ 431.4     $ 387.1  
                 
                 

Final Mile Services

               
                 

Stops

    1,450,208       1,849,215  

Average trucks during the period***

    1,565       1,537  
                 
                 

Truckload

               
                 

Loads

    123,782       107,253  

Loaded miles (000)

    61,858       45,423  

Nonpaid empty mile percentage

    20.1 %     18.4 %

Revenue per tractor per week**

  $ 5,383     $ 4,410  

Average tractors during the period *

    2,168       1,772  
                 

Tractors (end of period)

               

Company-owned

    734       798  

Independent contractor

    1,501       971  

Total tractors

    2,235       1,769  
                 

Trailers (end of period)

    11,172       8,567  

 

*

Includes company-owned and independent contractor tractors

**

Using weighted workdays

***

Includes company-owned, independent contractor, and customer-owned trucks

 

 

 

Operating Statistics by Segment

(unaudited)

 

   

Twelve Months Ended December 31

 
   

2021

   

2020

 
                 

Intermodal

               
                 

Loads

    1,984,834       2,019,391  

Average length of haul

    1,684       1,690  

Revenue per load

  $ 2,748     $ 2,315  

Average tractors during the period *

    5,904       5,530  

Tractors (end of period) *

    6,194       5,663  

Trailing equipment (end of period)

    104,973       98,689  

Average effective trailing equipment usage

    98,798       90,514  
                 
                 

Dedicated

               
                 

Loads

    4,020,308       3,676,212  

Average length of haul

    161       160  

Revenue per truck per week**

  $ 4,719     $ 4,373  

Average trucks during the period***

    10,628       9,743  

Trucks (end of period) ***

    11,689       9,911  

Trailing equipment (end of period)

    28,822       27,290  
                 
                 

Integrated Capacity Solutions

               
                 

Loads

    1,326,979       1,265,897  

Revenue per load

  $ 1,912     $ 1,310  

Gross profit margin

    11.8 %     9.9 %

Employee count (end of period)

    975       1,011  

Approximate number of third-party carriers (end of period)

    136,400       100,200  

Marketplace for J.B. Hunt 360 revenue (millions)

  $ 1,583.8     $ 1,142.2  
                 
                 

Final Mile Services

               
                 

Stops

    6,413,680       5,771,533  

Average trucks during the period***

    1,520       1,405  
                 
                 

Truckload

               
                 

Loads

    445,812       406,550  

Loaded miles (000)

    215,940       171,141  

Nonpaid empty mile percentage

    19.4 %     18.8 %

Revenue per tractor per week**

  $ 4,791     $ 3,978  

Average tractors during the period*

    1,899       1,837  
                 

Tractors (end of period)

               

Company-owned

    734       798  

Independent contractor

    1,501       971  

Total tractors

    2,235       1,769  
                 

Trailers (end of period)

    11,172       8,567  

 

*

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)

 

   

December 31, 2021

   

December 31, 2020

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 355,549     $ 313,302  

Accounts Receivable

    1,503,379       1,124,403  

Prepaid expenses and other

    444,915       404,412  

Total current assets

    2,303,843       1,842,117  

Property and equipment

    6,680,316       5,908,710  

Less accumulated depreciation

    2,612,661       2,219,816  

Net property and equipment

    4,067,655       3,688,894  

Other assets, net

    419,611       397,337  
    $ 6,791,109     $ 5,928,348  
                 
                 

LIABILITIES & STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Current debt

  $ 355,972     $ -  

Trade accounts payable

    769,496       587,510  

Claims accruals

    307,210       276,056  

Accrued payroll

    190,950       130,943  

Other accrued expenses

    102,732       90,294  

Total current liabilities

    1,726,360       1,084,803  
                 

Long-term debt

    945,257       1,305,424  

Other long-term liabilities

    256,234       245,961  

Deferred income taxes

    745,442       692,022  

Stockholders' equity

    3,117,816       2,600,138  
    $ 6,791,109     $ 5,928,348  

 

 

Supplemental Data

(unaudited)

 

   

December 31, 2021

   

December 31, 2020

 
                 

Actual shares outstanding at end of period (000)

    105,094       105,654  
                 

Book value per actual share outstanding at end of period

  $ 29.67     $ 24.61  

 

   

Twelve Months Ended December 31

 
   

2021

   

2020

 
                 

Net cash provided by operating activities (000)

  $ 1,223,899     $ 1,122,859  
                 

Net capital expenditures (000)

  $ 877,018     $ 600,769