[Mark | one] |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NEBRASKA | 47-0648386 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
14507 FRONTIER ROAD POST OFFICE BOX 45308 OMAHA, NEBRASKA | 68145-0308 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | o | |||
Non-accelerated filer | o | Smaller reporting company | o | |||
Emerging growth company | o |
PAGE | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 2. | ||
Item 6. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Unaudited) | |||||||||||||||
Operating revenues | $ | 629,735 | $ | 528,643 | $ | 1,811,549 | $ | 1,549,372 | |||||||
Operating expenses: | |||||||||||||||
Salaries, wages and benefits | 201,606 | 170,238 | 580,515 | 500,620 | |||||||||||
Fuel | 67,072 | 50,266 | 191,769 | 140,551 | |||||||||||
Supplies and maintenance | 47,136 | 41,986 | 138,556 | 120,276 | |||||||||||
Taxes and licenses | 18,463 | 21,671 | 63,607 | 64,095 | |||||||||||
Insurance and claims | 22,011 | 20,669 | 73,858 | 60,336 | |||||||||||
Depreciation | 58,382 | 53,578 | 170,439 | 162,619 | |||||||||||
Rent and purchased transportation | 147,870 | 126,087 | 435,225 | 377,146 | |||||||||||
Communications and utilities | 3,993 | 4,199 | 12,028 | 12,158 | |||||||||||
Other | (184 | ) | 4,075 | (3,732 | ) | 12,812 | |||||||||
Total operating expenses | 566,349 | 492,769 | 1,662,265 | 1,450,613 | |||||||||||
Operating income | 63,386 | 35,874 | 149,284 | 98,759 | |||||||||||
Other expense (income): | |||||||||||||||
Interest expense | 870 | 492 | 1,842 | 1,892 | |||||||||||
Interest income | (646 | ) | (766 | ) | (2,079 | ) | (2,556 | ) | |||||||
Other | 41 | 88 | 172 | 293 | |||||||||||
Total other expense (income) | 265 | (186 | ) | (65 | ) | (371 | ) | ||||||||
Income before income taxes | 63,121 | 36,060 | 149,349 | 99,130 | |||||||||||
Income taxes | 15,607 | 13,543 | 35,764 | 37,375 | |||||||||||
Net income | $ | 47,514 | $ | 22,517 | $ | 113,585 | $ | 61,755 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.67 | $ | 0.31 | $ | 1.58 | $ | 0.85 | |||||||
Diluted | $ | 0.66 | $ | 0.31 | $ | 1.57 | $ | 0.85 | |||||||
Dividends declared per share | $ | 0.090 | $ | 0.070 | $ | 0.250 | $ | 0.200 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 71,436 | 72,298 | 72,001 | 72,239 | |||||||||||
Diluted | 71,752 | 72,601 | 72,300 | 72,517 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Unaudited) | |||||||||||||||
Net income | $ | 47,514 | $ | 22,517 | $ | 113,585 | $ | 61,755 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | 2,011 | (627 | ) | 1,799 | 3,205 | ||||||||||
Change in fair value of interest rate swap | 5 | 100 | 377 | 334 | |||||||||||
Other comprehensive income (loss) | 2,016 | (527 | ) | 2,176 | 3,539 | ||||||||||
Comprehensive income | $ | 49,530 | $ | 21,990 | $ | 115,761 | $ | 65,294 |
(In thousands, except share amounts) | September 30, 2018 | December 31, 2017 | |||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,650 | $ | 13,626 | |||
Accounts receivable, trade, less allowance of $8,750 and $8,250, respectively | 324,911 | 304,174 | |||||
Other receivables | 27,559 | 26,491 | |||||
Inventories and supplies | 11,805 | 11,694 | |||||
Prepaid taxes, licenses and permits | 7,327 | 15,972 | |||||
Other current assets | 38,595 | 28,272 | |||||
Total current assets | 419,847 | 400,229 | |||||
Property and equipment | 2,249,911 | 2,114,337 | |||||
Less – accumulated depreciation | 781,262 | 767,474 | |||||
Property and equipment, net | 1,468,649 | 1,346,863 | |||||
Other non-current assets | 144,640 | 60,899 | |||||
Total assets | $ | 2,033,136 | $ | 1,807,991 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Checks issued in excess of cash balances | $ | 3,299 | $ | 21,539 | |||
Accounts payable | 90,013 | 73,802 | |||||
Current portion of long-term debt | 75,000 | — | |||||
Insurance and claims accruals | 65,021 | 79,674 | |||||
Accrued payroll | 37,787 | 32,520 | |||||
Other current liabilities | 26,757 | 24,642 | |||||
Total current liabilities | 297,877 | 232,177 | |||||
Long-term debt, net of current portion | 50,000 | 75,000 | |||||
Other long-term liabilities | 11,646 | 12,575 | |||||
Insurance and claims accruals, net of current portion | 208,560 | 108,270 | |||||
Deferred income taxes | 221,552 | 195,187 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares | |||||||
issued; 71,194,303 and 72,409,222 shares outstanding, respectively | 805 | 805 | |||||
Paid-in capital | 106,904 | 102,563 | |||||
Retained earnings | 1,365,523 | 1,267,871 | |||||
Accumulated other comprehensive loss | (13,659 | ) | (15,835 | ) | |||
Treasury stock, at cost; 9,339,233 and 8,124,314 shares, respectively | (216,072 | ) | (170,622 | ) | |||
Total stockholders’ equity | 1,243,501 | 1,184,782 | |||||
Total liabilities and stockholders’ equity | $ | 2,033,136 | $ | 1,807,991 |
Nine Months Ended September 30, | |||||||
(In thousands) | 2018 | 2017 | |||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 113,585 | $ | 61,755 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 170,439 | 162,619 | |||||
Deferred income taxes | 25,114 | 6,492 | |||||
Gain on disposal of property and equipment | (15,922 | ) | (6,031 | ) | |||
Non-cash equity compensation | 5,507 | 3,215 | |||||
Insurance and claims accruals, net of current portion | 21,100 | (6,645 | ) | ||||
Other | (5,081 | ) | (8,755 | ) | |||
Changes in certain working capital items: | |||||||
Accounts receivable, net | (20,737 | ) | (18,344 | ) | |||
Other current assets | (9,535 | ) | 21,467 | ||||
Accounts payable | 11,742 | 7,107 | |||||
Other current liabilities | 6,301 | 351 | |||||
Net cash provided by operating activities | 302,513 | 223,231 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (412,557 | ) | (205,874 | ) | |||
Proceeds from sales of property and equipment | 123,267 | 84,769 | |||||
Issuance of notes receivable | (3,300 | ) | (5,000 | ) | |||
Decrease in notes receivable | 15,846 | 15,637 | |||||
Net cash used in investing activities | (276,744 | ) | (110,468 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of short-term debt | (40,000 | ) | (45,000 | ) | |||
Proceeds from issuance of short-term debt | 40,000 | — | |||||
Repayments of long-term debt | (20,000 | ) | (60,000 | ) | |||
Proceeds from issuance of long-term debt | 70,000 | — | |||||
Change in net checks issued in excess of cash balances | (18,240 | ) | 3,538 | ||||
Dividends on common stock | (16,605 | ) | (13,721 | ) | |||
Repurchases of common stock | (46,413 | ) | — | ||||
Tax withholding related to net share settlements of restricted stock awards | (679 | ) | (445 | ) | |||
Stock options exercised | 476 | 2,339 | |||||
Net cash used in financing activities | (31,461 | ) | (113,289 | ) | |||
Effect of exchange rate fluctuations on cash | 211 | 580 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,481 | ) | 54 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 15,131 | 17,477 | |||||
Cash, cash equivalents and restricted cash, end of period(1) | $ | 9,650 | $ | 17,531 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 1,699 | $ | 2,004 | |||
Income taxes paid | 6,332 | 15,819 | |||||
Supplemental schedule of non-cash investing activities: | |||||||
Notes receivable issued upon sale of property and equipment | $ | 8,054 | $ | 4,058 | |||
Change in fair value of interest rate swap | 377 | 334 | |||||
Property and equipment acquired included in accounts payable | 4,797 | 492 | |||||
Property and equipment disposed included in other receivables | 1,007 | 1,300 | |||||
(1) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Consolidated Condensed Balance Sheets. | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 9,650 | $ | 10,733 | |||
Restricted cash included in Other current assets | — | 6,798 | |||||
Total cash, cash equivalents and restricted cash | $ | 9,650 | $ | 17,531 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Truckload Transportation Services | $ | 484,782 | $ | 407,566 | $ | 1,386,615 | $ | 1,196,071 | |||||||
Werner Logistics | 129,422 | 104,568 | 380,854 | 305,225 | |||||||||||
Inter-segment eliminations | (208 | ) | (104 | ) | (878 | ) | (720 | ) | |||||||
Transportation services | 613,996 | 512,030 | 1,766,591 | 1,500,576 | |||||||||||
Other revenues | 15,739 | 16,613 | 44,958 | 48,796 | |||||||||||
Total revenues | $ | 629,735 | $ | 528,643 | $ | 1,811,549 | $ | 1,549,372 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
United States | $ | 548,885 | $ | 454,611 | $ | 1,577,189 | $ | 1,341,667 | |||||||
Mexico | 61,028 | 54,587 | 177,180 | 155,903 | |||||||||||
Other | 19,822 | 19,445 | 57,180 | 51,802 | |||||||||||
Total revenues | $ | 629,735 | $ | 528,643 | $ | 1,811,549 | $ | 1,549,372 |
2018 | $ | — | |
2019 | 75,000 | ||
2020 | 50,000 | ||
2021 | — | ||
2022 | — | ||
Total | $ | 125,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 47,514 | $ | 22,517 | $ | 113,585 | $ | 61,755 | |||||||
Weighted average common shares outstanding | 71,436 | 72,298 | 72,001 | 72,239 | |||||||||||
Dilutive effect of stock-based awards | 316 | 303 | 299 | 278 | |||||||||||
Shares used in computing diluted earnings per share | 71,752 | 72,601 | 72,300 | 72,517 | |||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.31 | $ | 1.58 | $ | 0.85 | |||||||
Diluted earnings per share | $ | 0.66 | $ | 0.31 | $ | 1.57 | $ | 0.85 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Stock options: | |||||||||||||||
Pre-tax compensation expense | $ | — | $ | 2 | $ | — | $ | 5 | |||||||
Tax benefit | — | 1 | — | 2 | |||||||||||
Stock option expense, net of tax | $ | — | $ | 1 | $ | — | $ | 3 | |||||||
Restricted awards: | |||||||||||||||
Pre-tax compensation expense | $ | 1,028 | $ | 941 | $ | 3,091 | $ | 2,440 | |||||||
Tax benefit | 262 | 367 | 788 | 952 | |||||||||||
Restricted stock expense, net of tax | $ | 766 | $ | 574 | $ | 2,303 | $ | 1,488 | |||||||
Performance awards: | |||||||||||||||
Pre-tax compensation expense | $ | 992 | $ | 308 | $ | 2,319 | $ | 897 | |||||||
Tax benefit | 253 | 120 | 591 | 350 | |||||||||||
Performance award expense, net of tax | $ | 739 | $ | 188 | $ | 1,728 | $ | 547 |
Number of Options (in thousands) | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding at beginning of period | 33 | $ | 19.69 | |||||||||
Granted | — | — | ||||||||||
Exercised | (24 | ) | 19.94 | |||||||||
Forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Outstanding at end of period | 9 | 19.02 | 1.17 | $ | 147 | |||||||
Exercisable at end of period | 9 | 19.02 | 1.17 | $ | 147 |
Number of Restricted Awards (in thousands) | Weighted Average Grant Date Fair Value ($) | |||||
Nonvested at beginning of period | 273 | $ | 27.69 | |||
Granted | 125 | 37.42 | ||||
Vested | (22 | ) | 26.81 | |||
Forfeited | (10 | ) | 29.05 | |||
Nonvested at end of period | 366 | 31.03 |
Number of Performance Awards (in thousands) | Weighted Average Grant Date Fair Value ($) | |||||
Nonvested at beginning of period | 158 | $ | 27.20 | |||
Granted | 84 | 37.48 | ||||
Vested | (35 | ) | 27.07 | |||
Forfeited | — | — | ||||
Nonvested at end of period | 207 | 28.30 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
Truckload Transportation Services | $ | 484,782 | $ | 407,566 | $ | 1,386,615 | $ | 1,196,071 | |||||||
Werner Logistics | 129,422 | 104,568 | 380,854 | 305,225 | |||||||||||
Other | 15,107 | 16,020 | 42,788 | 47,257 | |||||||||||
Corporate | 632 | 593 | 2,170 | 1,539 | |||||||||||
Subtotal | 629,943 | 528,747 | 1,812,427 | 1,550,092 | |||||||||||
Inter-segment eliminations | (208 | ) | (104 | ) | (878 | ) | (720 | ) | |||||||
Total | $ | 629,735 | $ | 528,643 | $ | 1,811,549 | $ | 1,549,372 | |||||||
Operating Income | |||||||||||||||
Truckload Transportation Services | $ | 58,894 | $ | 34,009 | $ | 135,748 | $ | 93,511 | |||||||
Werner Logistics | 4,776 | 1,318 | 13,135 | 6,652 | |||||||||||
Other | 576 | 1,001 | 433 | 605 | |||||||||||
Corporate | (860 | ) | (454 | ) | (32 | ) | (2,009 | ) | |||||||
Total | $ | 63,386 | $ | 35,874 | $ | 149,284 | $ | 98,759 |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Contractual Obligations and Commercial Commitments |
• | Regulations |
• | Critical Accounting Policies and Estimates |
Three Months Ended (3ME) September 30, | Nine Months Ended (9ME) September 30, | Percentage Change in Dollar Amounts | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 3ME | 9ME | |||||||||||||||||||||||
(Amounts in thousands) | $ | % | $ | % | $ | % | $ | % | % | % | ||||||||||||||||||
Operating revenues | $ | 629,735 | 100.0 | $ | 528,643 | 100.0 | $ | 1,811,549 | 100.0 | $ | 1,549,372 | 100.0 | 19.1 | % | 16.9 | % | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Salaries, wages and benefits | 201,606 | 32.0 | 170,238 | 32.2 | 580,515 | 32.0 | 500,620 | 32.3 | 18.4 | % | 16.0 | % | ||||||||||||||||
Fuel | 67,072 | 10.6 | 50,266 | 9.5 | 191,769 | 10.6 | 140,551 | 9.1 | 33.4 | % | 36.4 | % | ||||||||||||||||
Supplies and maintenance | 47,136 | 7.5 | 41,986 | 7.9 | 138,556 | 7.7 | 120,276 | 7.8 | 12.3 | % | 15.2 | % | ||||||||||||||||
Taxes and licenses | 18,463 | 2.9 | 21,671 | 4.1 | 63,607 | 3.5 | 64,095 | 4.1 | (14.8 | )% | (0.8 | )% | ||||||||||||||||
Insurance and claims | 22,011 | 3.5 | 20,669 | 3.9 | 73,858 | 4.1 | 60,336 | 3.9 | 6.5 | % | 22.4 | % | ||||||||||||||||
Depreciation | 58,382 | 9.3 | 53,578 | 10.1 | 170,439 | 9.4 | 162,619 | 10.5 | 9.0 | % | 4.8 | % | ||||||||||||||||
Rent and purchased transportation | 147,870 | 23.5 | 126,087 | 23.9 | 435,225 | 24.0 | 377,146 | 24.3 | 17.3 | % | 15.4 | % | ||||||||||||||||
Communications and utilities | 3,993 | 0.6 | 4,199 | 0.8 | 12,028 | 0.7 | 12,158 | 0.8 | (4.9 | )% | (1.1 | )% | ||||||||||||||||
Other | (184 | ) | — | 4,075 | 0.8 | (3,732 | ) | (0.2 | ) | 12,812 | 0.8 | (104.5 | )% | (129.1 | )% | |||||||||||||
Total operating expenses | 566,349 | 89.9 | 492,769 | 93.2 | 1,662,265 | 91.8 | 1,450,613 | 93.6 | 14.9 | % | 14.6 | % | ||||||||||||||||
Operating income | 63,386 | 10.1 | 35,874 | 6.8 | 149,284 | 8.2 | 98,759 | 6.4 | 76.7 | % | 51.2 | % | ||||||||||||||||
Total other expense (income) | 265 | 0.1 | (186 | ) | — | (65 | ) | — | (371 | ) | — | 242.5 | % | 82.5 | % | |||||||||||||
Income before income taxes | 63,121 | 10.0 | 36,060 | 6.8 | 149,349 | 8.2 | 99,130 | 6.4 | 75.0 | % | 50.7 | % | ||||||||||||||||
Income taxes | 15,607 | 2.5 | 13,543 | 2.5 | 35,764 | 1.9 | 37,375 | 2.4 | 15.2 | % | (4.3 | )% | ||||||||||||||||
Net income | $ | 47,514 | 7.5 | $ | 22,517 | 4.3 | 113,585 | 6.3 | $ | 61,755 | 4.0 | 111.0 | % | 83.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Truckload Transportation Services (amounts in thousands) | $ | % | $ | % | $ | % | $ | % | |||||||||||||
Trucking revenues, net of fuel surcharge | $ | 409,306 | $ | 351,114 | 1,168,588 | 1,029,036 | |||||||||||||||
Trucking fuel surcharge revenues | 68,420 | 50,164 | 197,212 | 147,641 | |||||||||||||||||
Non-trucking and other operating revenues | 7,056 | 6,288 | 20,815 | 19,394 | |||||||||||||||||
Operating revenues | 484,782 | 100.0 | 407,566 | 100.0 | 1,386,615 | 100.0 | 1,196,071 | 100.0 | |||||||||||||
Operating expenses | 425,888 | 87.9 | 373,557 | 91.7 | 1,250,867 | 90.2 | 1,102,560 | 92.2 | |||||||||||||
Operating income | $ | 58,894 | 12.1 | $ | 34,009 | 8.3 | 135,748 | 9.8 | 93,511 | 7.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
Truckload Transportation Services | 2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||||||
Operating ratio, net of fuel surcharge revenues (1) | 85.9 | % | 90.5 | % | 88.6 | % | 91.1 | % | |||||||||||||
Average revenues per tractor per week (2) | $ | 4,074 | $ | 3,693 | 10.3 | % | $ | 3,959 | $ | 3,634 | 9.0 | % | |||||||||
Average completed trip length in miles (loaded) | 451 | 469 | (3.8 | )% | 449 | 469 | (4.3 | )% | |||||||||||||
Average percentage of empty miles (3) | 12.27 | % | 12.53 | % | (2.1 | )% | 12.39 | % | 12.40 | % | (0.1 | )% | |||||||||
Average tractors in service | 7,728 | 7,314 | 5.7 | % | 7,568 | 7,261 | 4.2 | % | |||||||||||||
Total trailers (at quarter end) | 23,345 | 22,435 | 23,345 | 22,435 | |||||||||||||||||
Total tractors (at quarter end): | |||||||||||||||||||||
Company | 7,135 | 6,700 | 7,135 | 6,700 | |||||||||||||||||
Independent contractor | 615 | 675 | 615 | 675 | |||||||||||||||||
Total tractors | 7,750 | 7,375 | 7,750 | 7,375 |
(1) | Calculated as if fuel surcharge revenues are excluded from total revenues and instead reported as a reduction of operating expenses, which provides a more consistent basis for comparing results of operations from period to period. |
(2) | Net of fuel surcharge revenues. |
(3) | “Empty” refers to miles without trailer cargo. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Werner Logistics (amounts in thousands) | $ | % | $ | % | $ | % | $ | $ | |||||||||||||||
Operating revenues | $ | 129,422 | 100.0 | $ | 104,568 | 100.0 | $ | 380,854 | 100.0 | $ | 305,225 | 100.0 | |||||||||||
Rent and purchased transportation expense | 108,870 | 84.1 | 89,507 | 85.6 | 322,064 | 84.6 | 259,277 | 84.9 | |||||||||||||||
Gross margin | 20,552 | 15.9 | 15,061 | 14.4 | 58,790 | 15.4 | 45,948 | 15.1 | |||||||||||||||
Other operating expenses | 15,776 | 12.2 | 13,743 | 13.1 | 45,655 | 12.0 | 39,296 | 12.9 | |||||||||||||||
Operating income | $ | 4,776 | 3.7 | $ | 1,318 | 1.3 | 13,135 | 3.4 | 6,652 | 2.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Werner Logistics | 2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||
Average tractors in service | 43 | 48 | (10.4 | )% | 42 | 53 | (20.8 | )% | |||||||||
Total trailers (at quarter end) | 1,415 | 1,655 | (14.5 | )% | 1,415 | 1,655 | (14.5 | )% | |||||||||
Total tractors (at quarter end) | 43 | 47 | (8.5 | )% | 43 | 47 | (8.5 | )% |
• | Depreciation and impairment of tractors and trailers. |
• | Estimates of accrued liabilities for insurance and claims for liability and physical damage losses and workers’ compensation. |
• | Accounting for income taxes. |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||||
July 1-31, 2018 | 194,750 | $ | 35.95 | 194,750 | 3,890,307 | ||||
August 1-31, 2018 | 396,165 | $ | 36.36 | 396,165 | 3,494,142 | ||||
September 1-30, 2018 | 58,534 | $ | 36.27 | 58,534 | 3,435,608 | ||||
Total | 649,449 | $ | 36.23 | 649,449 | 3,435,608 |
Exhibit No. | Exhibit | Incorporated by Reference to: | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith |
WERNER ENTERPRISES, INC. | |||
Date: November 1, 2018 | By: | /s/ John J. Steele | |
John J. Steele | |||
Executive Vice President, Treasurer and Chief Financial Officer | |||
Date: November 1, 2018 | By: | /s/ James L. Johnson | |
James L. Johnson | |||
Executive Vice President, Chief Accounting Officer and Corporate Secretary |
1. | I have reviewed this quarterly report on Form 10-Q of Werner Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Derek J. Leathers |
Derek J. Leathers |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Werner Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John J. Steele |
John J. Steele |
Executive Vice President, Treasurer and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 1, 2018 | /s/ Derek J. Leathers | |
Derek J. Leathers | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 1, 2018 | /s/ John J. Steele | |
John J. Steele | ||
Executive Vice President, Treasurer and Chief Financial Officer |
Document And Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2018 |
Oct. 22, 2018 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Start Date | Jan. 01, 2018 | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | WERNER ENTERPRISES INC | |
Entity Central Index Key | 0000793074 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 71,194,303 |
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Operating revenues | $ 629,735 | $ 528,643 | $ 1,811,549 | $ 1,549,372 |
Operating expenses: | ||||
Salaries, wages and benefits | 201,606 | 170,238 | 580,515 | 500,620 |
Fuel | 67,072 | 50,266 | 191,769 | 140,551 |
Supplies and maintenance | 47,136 | 41,986 | 138,556 | 120,276 |
Taxes and licenses | 18,463 | 21,671 | 63,607 | 64,095 |
Insurance and claims | 22,011 | 20,669 | 73,858 | 60,336 |
Depreciation | 58,382 | 53,578 | 170,439 | 162,619 |
Rent and purchased transportation | 147,870 | 126,087 | 435,225 | 377,146 |
Communications and utilities | 3,993 | 4,199 | 12,028 | 12,158 |
Other | (184) | 4,075 | (3,732) | 12,812 |
Total operating expenses | 566,349 | 492,769 | 1,662,265 | 1,450,613 |
Operating income | 63,386 | 35,874 | 149,284 | 98,759 |
Other expense (income): | ||||
Interest expense | 870 | 492 | 1,842 | 1,892 |
Interest income | (646) | (766) | (2,079) | (2,556) |
Other | 41 | 88 | 172 | 293 |
Total other expense (income) | 265 | (186) | (65) | (371) |
Income before income taxes | 63,121 | 36,060 | 149,349 | 99,130 |
Income taxes | 15,607 | 13,543 | 35,764 | 37,375 |
Net income | $ 47,514 | $ 22,517 | $ 113,585 | $ 61,755 |
Earnings per share: | ||||
Basic | $ 0.67 | $ 0.31 | $ 1.58 | $ 0.85 |
Diluted | 0.66 | 0.31 | 1.57 | 0.85 |
Dividends declared per share | $ 0.090 | $ 0.070 | $ 0.250 | $ 0.200 |
Weighted-average common shares outstanding: | ||||
Basic | 71,436 | 72,298 | 72,001 | 72,239 |
Diluted | 71,752 | 72,601 | 72,300 | 72,517 |
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Net income | $ 47,514 | $ 22,517 | $ 113,585 | $ 61,755 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 2,011 | (627) | 1,799 | 3,205 |
Change in fair value of interest rate swap | 5 | 100 | 377 | 334 |
Other comprehensive income (loss) | 2,016 | (527) | 2,176 | 3,539 |
Comprehensive income | $ 49,530 | $ 21,990 | $ 115,761 | $ 65,294 |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Allowance for doubtful trade accounts receivable | $ 8,750 | $ 8,250 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 80,533,536 | 80,533,536 |
Common stock, shares outstanding | 71,194,303 | 72,409,222 |
Treasury stock, shares | 9,339,233 | 8,124,314 |
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 9,650 | $ 10,733 |
Restricted cash included in Other current assets | 0 | 6,798 |
Cash, cash equivalents and restricted cash | $ 9,650 | $ 17,531 |
Accounting Policies |
9 Months Ended |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies New Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU 2014-09 and related amendments, which is also known as Accounting Standards Codification (“ASC”) Topic 606, as of January 1, 2018 using the modified retrospective transition method. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. See Note 2 - Revenue for additional adoption information, the updated accounting policy for revenue recognition, and disclosures required by ASC Topic 606. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted ASU No. 2016-15 as of January 1, 2018. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires an entity to include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The Company adopted ASU No. 2016-18 as of January 1, 2018, using the required retrospective adoption method. The adoption of this standard impacted the consolidated statements of cash flows by increasing beginning and ending cash to include the restricted balance of our like-kind exchange account and removing from operating activities the change in such balance, which resulted in a $6.3 million increase to cash flow from operations for the nine months ended September 30, 2017. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting,” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted ASU No. 2017-09 as of January 1, 2018 on a prospective basis. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. Accounting Standards Updates Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to increase transparency and comparability by recognizing a right-of-use asset and a lease liability on the balance sheet and disclosing key information about leasing arrangements. The provisions of this update and additional guidance in subsequent ASUs will become effective for us beginning January 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, “Leases,” which provides an optional transition method allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, with no restatement of comparative prior periods required. We currently intend to adopt the standard using this optional transition method. We continue to assess the contractual arrangements that may qualify as a lease under the new standard and to evaluate the impact of adopting ASU No. 2016-02 on our consolidated financial position, results of operations and cash flows. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the impact of adopting ASU No. 2017-12 on our financial position, results of operations and cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the impact of adopting ASU No. 2018-02 on our financial position, results of operations and cash flows. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. As part of its disclosure framework project, the FASB has eliminated, amended and added disclosure requirements for fair value measurements in Topic 820, Fair Value Measurement. The provisions of this update are effective for fiscal years beginning after December 15, 2019. Although we are evaluating the impact of adopting ASU No. 2018-13 on our financial position, results of operations and cash flows, we do not expect a material effect upon adoption because we do not currently disclose any fair value measurements subject to the amendments. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force),” which updates the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract to align with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We are evaluating the impact of adopting ASU No. 2018-15 on our financial position, results of operations and cash flows. |
Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective method. Results for periods beginning January 1, 2018 and later are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy for revenue recognition. We recorded a $2.0 million net increase to the opening balance of retained earnings as of January 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily related to the change in accounting for shipments in transit as of December 31, 2017. ASC Topic 606 requires us to recognize revenue and related direct costs over time as the shipment is being delivered. Prior to adopting the new guidance, we recognized revenue and related direct costs when the shipment was delivered. Under the modified retrospective method of adoption, we are required to disclose the impact to our financial statements had we continued to follow our accounting policies under the previous revenue recognition guidance. Had we continued to recognize revenues and direct costs upon delivery, our operating revenues and operating expenses for the three months ended September 30, 2018 would have been been lower by approximately $2.2 million and $1.5 million, respectively, and for the nine months ended September 30, 2018, would have been lower by approximately $3.2 million and $1.9 million, respectively. Additionally, under ASC Topic 606, we recorded a $3.6 million and $10.7 million reduction of revenues for the three and nine months ended September 30, 2018, respectively, related to our driver training schools that would have been reported as bad debt expense prior to the new standard. Revenue Recognition Revenues are recognized over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The following table presents our revenues disaggregated by revenue source (in thousands):
The following table presents our revenues disaggregated by geographic areas in which we conduct business (in thousands). Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
Transportation Services We generate nearly all of our revenues by transporting truckload freight shipments for our customers. Transportation services are carried out by our Truckload Transportation Services (“Truckload”) segment and our Werner Logistics (“Logistics”) segment. The Truckload segment utilizes company-owned and independent contractor trucks to deliver shipments, while the Logistics segment uses third-party capacity providers. The Company generates revenue from billings for transportation services under contracts with customers, generally on a rate per mile or per shipment, based on origin and destination of the shipment. The Company’s performance obligation arises when it receives a shipment order to transport a customer’s freight and is satisfied upon delivery of the shipment. The transaction price may be defined in a transportation services agreement or negotiated with the customer prior to accepting the shipment order. A customer may submit several shipment orders for transportation services at various times throughout a service agreement term, but each shipment represents a distinct service that is a separately identified performance obligation. The Company often provides additional or ancillary services as part of the shipment (such as loading/unloading and stops in transit) which are not distinct or are not material in the context of the contract; therefore the revenue for these services is recognized with the freight transaction price. The average transit time to complete a shipment is approximately 3 days. Invoices for transportation services are typically generated soon after shipment delivery and, while payment terms and conditions vary by customer, are generally due within 30 days after the invoice date. The Consolidated Statements of Income reflect recognition of transportation revenues (including fuel surcharge revenues) and related direct costs over time as the shipment is being delivered. The Company uses distance shipped (for the Truckload segment) and transit time (for the Logistics segment) to measure progress and the amount of revenue recognized over time, as the customer simultaneously receives and consumes the benefit. Determining a measure of progress requires us to make judgments that affect the timing of revenue recognized. The Company has determined that the methods described provide a faithful depiction of the transfer of services to the customer. For shipments where a third-party capacity provider (including independent contractors under contract with us) is utilized to provide some or all of the service, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report such revenues on a gross basis, that is, we recognize both revenues for the service we bill to the customer and rent and purchased transportation expense for transportation costs we pay to the third-party provider. Where we are the principal, we control the transportation service before it is provided to our customers, which is supported by us being primarily responsible for fulfilling the shipment obligation to the customer and having a level of discretion in establishing pricing with the customer. During the first nine months of 2018, revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price) was not material. Other Revenues Other revenues include revenues from our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. These revenues are generally recognized over time and accounted for 2% of our total revenue in the first nine months of 2018. Revenues from our driver training schools require us to make judgments regarding price concessions in determining the amount of revenue to recognize. Contract Balances and Accounts Receivable A receivable is an unconditional right to consideration and is recognized when shipments have been completed and the related performance obligation has been fully satisfied. At September 30, 2018 and December 31, 2017, the accounts receivable, net, balance was $324.9 million and $304.2 million, respectively. Contract assets represent a conditional right to consideration in exchange for goods or services, and are transferred to receivables when the rights become unconditional. At September 30, 2018, the balance of contract assets was $11.0 million, and the balance was $7.8 million at January 1, 2018, after adopting ASC Topic 606. The Company has recognized contract assets within the other current assets financial statement caption on the balance sheet. These contract assets are considered current assets as they will be settled in less than 12 months. Contract liabilities represent advance consideration received from customers, and are recognized as revenue over time as the related performance obligation is satisfied. At September 30, 2018 and December 31, 2017, the balance of contract liabilities was $2.9 million and $2.1 million, respectively. The amount of revenue recognized in the first nine months of 2018 that was included in the December 31, 2017 contract liability balance was $2.1 million. The Company has recognized contract liabilities within the accounts payable and other current liabilities financial statement captions on the balance sheet. These contract liabilities are considered current liabilities as they will be settled in less than 12 months. Performance Obligations We have elected to apply the practical expedient in ASC Topic 606 to not disclose the value of remaining performance obligations for contracts with an original expected length of one year or less. Remaining performance obligations represent the transaction price allocated to future reporting periods for freight shipments started but not completed at the reporting date that we expect to recognize as revenue in the period subsequent to the reporting date; transit times generally average approximately 3 days. |
Credit Facilities |
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Line of Credit Facility [Abstract] | |||||||||||||||||||||||||||||||||
Credit Facilities | Credit Facilities As of September 30, 2018, we had unsecured committed credit facilities with three banks as well as a term commitment with one of these banks. We had with Wells Fargo Bank, N.A., a $100.0 million credit facility which will expire on July 12, 2020, and a $75.0 million term commitment with principal due and payable on September 15, 2019. We had an unsecured line of credit of $75.0 million with U.S. Bank, N.A., which will expire on July 13, 2020. We also had a $75.0 million credit facility with BMO Harris Bank, N.A., which will expire on March 5, 2020. Borrowings under these credit facilities and term note bear variable interest based on the London Interbank Offered Rate (“LIBOR”). As of September 30, 2018, and December 31, 2017, our outstanding debt totaled $125.0 million and $75.0 million, respectively. We had $75.0 million outstanding under the term commitment at a variable rate of 2.76% as of September 30, 2018, which is effectively fixed at 2.5% with an interest rate swap agreement, and we had an additional $50.0 million outstanding under the credit facilities at a variable interest rate of 2.68%. The $325.0 million of borrowing capacity under our credit facilities at September 30, 2018, is further reduced by $31.3 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and/or (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At September 30, 2018, we were in compliance with these covenants. At September 30, 2018, the aggregate future maturities of long-term debt by year are as follows (in thousands):
The carrying amounts of our long-term debt approximate fair value due to the duration of the notes and the variable interest rates. |
Income Taxes |
9 Months Ended |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We accrued interest expense of $26 thousand and $39 thousand during the three-month periods ended September 30, 2018 and September 30, 2017, respectively, and $79 thousand and $142 thousand during the nine-month periods ended September 30, 2018 and September 30, 2017, respectively, excluding the reversal of accrued interest related to adjustments for the remeasurement of uncertain tax positions. Our total gross liability for unrecognized tax benefits at September 30, 2018, is $2.4 million. If recognized, $1.9 million of unrecognized tax benefits would impact our effective tax rate. Interest of $0.3 million has been reflected as a component of the total liability. We expect no significant increases or decreases for uncertain tax positions during the next twelve months. The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was enacted on December 22, 2017, and lowered the federal corporate income tax rate to 21% from 35% effective January 1, 2018. The Company recognized the provisional tax impact related to the revaluation of deferred income tax assets and liabilities in accordance with SEC Staff Accounting Bulletin No. 118 and included the amount in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from the provisional amount due to, among other things, additional analysis, change in interpretations and assumptions the Company has made, and additional regulatory guidance that may be issued. During the three and nine months ended September 30, 2018, we did not make any adjustments to the provisional amounts recorded as of December 31, 2017. The accounting is expected to be completed during fourth quarter 2018. We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2015 through 2017 are open for examination by the Internal Revenue Service (“IRS”), and various years are open for examination by state and foreign tax authorities. State and foreign jurisdictional statutes of limitations generally range from three to four years. |
Commitments And Contingencies |
9 Months Ended |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of September 30, 2018, we have committed to property and equipment purchases of approximately $100.4 million. We are involved in certain claims and pending litigation, including those described herein, arising in the ordinary course of business. The majority of these claims relate to bodily injury, property damage, cargo and workers’ compensation incurred in the transportation of freight, as well as certain class action litigation related to personnel and employment matters. We accrue for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the knowledge of the facts, management believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse effect on our consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict, and our view of these matters may change in the future as the litigation and related events unfold. On May 17, 2018, in Harris County District Court in Houston, Texas, a jury rendered an adverse verdict against Werner Enterprises, Inc. (the “Company”) in a lawsuit arising from an accident between a Werner tractor-trailer and a passenger vehicle. The accident happened on December 30, 2014, near Odessa, Texas. A Werner driver was westbound on Interstate 20. A pickup truck, driven by Zaragoza Salinas, was eastbound on Interstate 20. The Salinas pickup lost control in the eastbound lanes, traveled into and through the grassy interstate median, and directly into the path of the Werner unit. The pickup had spun prior to impact, so that the bed of the pickup first struck the front of the Werner tractor. As a result of the accident, four passengers in the pickup sustained varying injuries. Tragically, a 7 year-old boy died, and his 12 year-old sister suffered catastrophic brain injuries. The children’s mother and their 14 year-old brother were also injured. Werner’s driver did not receive a citation, and the investigating officers placed no blame on the Werner driver. The Werner driver was traveling well below the posted speed limit, did not lose control of his tractor-trailer, and even brought the unit to a controlled stop after the impact. Despite these facts, the jury entered a verdict against the Company. On July 30, 2018, the court entered a final judgment against Werner for $92 million, including pre-judgment interest. The Company has premium-based liability insurance to cover the potential outcome from this jury verdict. Under the Company’s insurance policies in effect on the date of this accident, the Company’s maximum liability for this accident is $10.0 million (plus pre-judgment and post-judgment interest) with premium-based coverage that exceeds the jury verdict amount. As a result of this jury verdict, the Company has accrued $14.0 million of pre-tax insurance and claims expense (including interest and legal fees) in its financial statements during 2018. Under the terms of the Company’s insurance policies, the Company is the primary obligor of the verdict awarded to the family, and as such, the Company has recorded a $79.2 million receivable from its third-party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals in the unaudited consolidated condensed balance sheets as of September 30, 2018, and such amounts are treated as non-cash operating activities in the unaudited consolidated statement of cash flows for the nine months ended September 30, 2018. The Company is pursuing an appeal of this verdict. No assurances can be given regarding the outcome of any such appeal. We are involved in class action litigation in the U.S. District Court for the District of Nebraska, in which the plaintiffs allege that we owe drivers for unpaid wages under the Fair Labor Standards Act (FLSA) and the Nebraska Wage Payment and Collection Act and that we failed to pay minimum wage per hour for drivers in our student driver training program, related to short break time and sleeper berth time. The period covered by this class action suit is August 2008 through March 2014. The case was tried to a jury in May 2017, resulting in a verdict of $0.8 million in plaintiffs’ favor on the short break matter and a verdict in our favor on the sleeper berth matter. As a result of various post-trial motions, the court has awarded $0.5 million to the plaintiffs for attorney fees and costs. As of September 30, 2018, we had accrued for the jury’s award, attorney fees and costs in the short break matter and had not accrued for the sleeper berth matter. Plaintiffs have appealed the post-verdict amounts awarded by the trial court for fees, costs and liquidated damages. We are also involved in certain class action litigation in which the plaintiffs allege claims for failure to provide meal and rest breaks, unpaid wages, unauthorized deductions and other items. Based on the knowledge of the facts, management does not currently believe the outcome of these class actions is likely to have a material adverse effect on our financial position or results of operations. However, the final disposition of these matters and the impact of such final dispositions cannot be determined at this time. |
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Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. There are no differences in the numerators of our computations of basic and diluted earnings per share for any period presented. The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).
There were no options to purchase shares of common stock that were outstanding during the periods indicated above that were excluded from the computation of diluted earnings per share because the option purchase price was greater than the average market price of the common shares during the period. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. |
Equity Compensation |
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Equity Compensation | Equity Compensation The Werner Enterprises, Inc. Amended and Restated Equity Plan (the “Equity Plan”), approved by the Company’s shareholders, provides for grants to employees and non-employee directors of the Company in the form of nonqualified stock options, restricted stock and units (“restricted awards”), performance awards, and stock appreciation rights. The Board of Directors or the Compensation Committee of our Board of Directors determines the terms of each award, including the type, recipients, number of shares subject to and vesting conditions of each award. No awards of stock appreciation rights have been issued under the Equity Plan to date. The maximum number of shares of common stock that may be awarded under the Equity Plan is 20,000,000 shares. The maximum aggregate number of shares that may be awarded to any one person in any one calendar year under the Equity Plan is 500,000. As of September 30, 2018, there were 7,086,915 shares available for granting additional awards. Equity compensation expense is included in salaries, wages and benefits within the Consolidated Statements of Income. As of September 30, 2018, the total unrecognized compensation cost related to non-vested equity compensation awards was approximately $11.1 million and is expected to be recognized over a weighted average period of 2.0 years. The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands):
We do not have a formal policy for issuing shares upon an exercise of stock options or vesting of restricted and performance awards. Such shares are generally issued from treasury stock. From time to time, we repurchase shares of our common stock, the timing and amount of which depends on market and other factors. Historically, the shares acquired from such repurchases have provided us with sufficient quantities of stock to issue for equity compensation. Based on current treasury stock levels, we do not expect to repurchase additional shares specifically for equity compensation during 2018. Stock Options Stock options are granted at prices equal to the market value of the common stock on the date the option award is granted. Option awards currently outstanding become exercisable in installments from 24 to 72 months after the date of grant. The options are exercisable over a period not to exceed ten years, one day from the date of grant. The following table summarizes stock option activity for the nine months ended September 30, 2018:
We did not grant any stock options during the nine-month periods ended September 30, 2018 and September 30, 2017. The fair value of stock option grants is estimated using a Black-Scholes valuation model. The total intrinsic value of stock options exercised was $484 thousand and $1.6 million for the nine-month periods ended September 30, 2018 and September 30, 2017, respectively. Restricted Awards Restricted stock entitles the holder to shares of common stock when the award vests. Restricted stock units entitle the holder to a combination of cash or stock equal to the value of common stock when the unit vests. The value of these shares may fluctuate according to market conditions and other factors. Restricted awards currently outstanding vest over periods ranging from 12 to 60 months from the grant date of the award. The restricted awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes restricted award activity for the nine months ended September 30, 2018:
We estimate the fair value of restricted awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. Cash settled restricted stock units are recorded as a liability within the Consolidated Balance Sheets and are adjusted to fair value each reporting period. The total fair value of previously granted restricted awards vested during the nine-month period ended September 30, 2018 was $793 thousand, and for the nine-month period ended September 30, 2017 was $467 thousand. We withheld shares based on the closing stock price on the vesting date to settle the employees’ statutory obligation for the applicable income and other employment taxes. The shares withheld to satisfy the tax withholding obligations are recorded as treasury stock. Performance Awards Performance awards entitle the recipient to shares of common stock upon attainment of performance objectives as pre-established by the Compensation Committee. If the performance objectives are achieved, performance awards currently outstanding vest, subject to continued employment, over periods ranging from 12 to 60 months from the grant date of the award. The performance awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes performance award activity for the nine months ended September 30, 2018:
The 2018 performance awards are earned based upon the level of attainment by the Company of specified performance objectives related to cumulative diluted earnings per share for the two-year period from January 1, 2018 to December 31, 2019. Shares earned based on cumulative diluted earnings per share may be capped based on absolute total shareholder return during the three-year period ended December 31, 2020. The 2018 performance awards will vest in one installment on the third anniversary from the grant date. We estimate the fair value of performance awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. The vesting date fair value of performance awards that vested during the nine-month periods ended September 30, 2018 and September 30, 2017 was $1.3 million and $1.0 million, respectively. We withhold shares based on the closing stock price on the vesting date to settle the employees’ statutory obligation for the applicable income and other employment taxes. The shares withheld to satisfy the tax withholding obligations are recorded as treasury stock. |
Segment Information |
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Segment Information | Segment Information We have two reportable segments – Truckload Transportation Services (“Truckload”) and Werner Logistics. The Truckload segment consists of three operating units, Dedicated, One-Way Truckload and Temperature Controlled. These units are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. Dedicated provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, utilizing either dry van or specialized trailers. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers; (ii) the expedited (“Expedited”) fleet provides time-sensitive truckload services utilizing driver teams; and (iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States. Temperature Controlled provides truckload services for temperature sensitive products over irregular routes utilizing temperature-controlled trailers. Revenues for the Truckload segment include a small amount of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider. The Werner Logistics segment generates the majority of our non-trucking revenues through five operating units that provide non-trucking services to our customers. These five Werner Logistics operating units are as follows: (i) truck brokerage (“Brokerage”) uses contracted carriers to complete customer shipments; (ii) freight management (“Freight Management”) offers a full range of single-source logistics management services and solutions; (iii) the intermodal (“Intermodal”) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; (iv) Werner Global Logistics international (“WGL”) provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes; and (v) Werner Final Mile (“Final Mile”) offers home and business deliveries of large or heavy items using third-party agents with two associates operating a liftgate straight truck. We generate other revenues from our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. None of these operations meets the quantitative reporting thresholds. As a result, these operations are grouped in “Other” in the table below. “Corporate” includes revenues and expenses that are incidental to our activities and are not attributable to any of our operating segments, including gains and losses on sales of assets not attributable to our operating segments. We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Inter-segment eliminations in the table below represent transactions between reporting segments that are eliminated in consolidation. The following table summarizes our segment information (in thousands):
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Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU 2014-09 and related amendments, which is also known as Accounting Standards Codification (“ASC”) Topic 606, as of January 1, 2018 using the modified retrospective transition method. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. See Note 2 - Revenue for additional adoption information, the updated accounting policy for revenue recognition, and disclosures required by ASC Topic 606. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted ASU No. 2016-15 as of January 1, 2018. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires an entity to include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The Company adopted ASU No. 2016-18 as of January 1, 2018, using the required retrospective adoption method. The adoption of this standard impacted the consolidated statements of cash flows by increasing beginning and ending cash to include the restricted balance of our like-kind exchange account and removing from operating activities the change in such balance, which resulted in a $6.3 million increase to cash flow from operations for the nine months ended September 30, 2017. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting,” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted ASU No. 2017-09 as of January 1, 2018 on a prospective basis. Upon adoption, this update had no effect on our consolidated financial position, results of operations or cash flows. |
Accounting Standards Updates Not Yet Effective | Accounting Standards Updates Not Yet Effective In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to increase transparency and comparability by recognizing a right-of-use asset and a lease liability on the balance sheet and disclosing key information about leasing arrangements. The provisions of this update and additional guidance in subsequent ASUs will become effective for us beginning January 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, “Leases,” which provides an optional transition method allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, with no restatement of comparative prior periods required. We currently intend to adopt the standard using this optional transition method. We continue to assess the contractual arrangements that may qualify as a lease under the new standard and to evaluate the impact of adopting ASU No. 2016-02 on our consolidated financial position, results of operations and cash flows. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the impact of adopting ASU No. 2017-12 on our financial position, results of operations and cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the impact of adopting ASU No. 2018-02 on our financial position, results of operations and cash flows. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. As part of its disclosure framework project, the FASB has eliminated, amended and added disclosure requirements for fair value measurements in Topic 820, Fair Value Measurement. The provisions of this update are effective for fiscal years beginning after December 15, 2019. Although we are evaluating the impact of adopting ASU No. 2018-13 on our financial position, results of operations and cash flows, we do not expect a material effect upon adoption because we do not currently disclose any fair value measurements subject to the amendments. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force),” which updates the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract to align with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We are evaluating the impact of adopting ASU No. 2018-15 on our financial position, results of operations and cash flows. |
Revenue (Tables) |
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Disaggregation of revenue by revenue source | The following table presents our revenues disaggregated by revenue source (in thousands):
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Revenue by geographical location | The following table presents our revenues disaggregated by geographic areas in which we conduct business (in thousands). Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
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Schedule of Maturities of Long-term Debt | At September 30, 2018, the aggregate future maturities of long-term debt by year are as follows (in thousands):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic And Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).
|
Equity Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Compensation Expense and Related Income Tax Benefit Recognized | The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands):
|
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Schedule of Equity Compensation Stock Options Activity | The following table summarizes stock option activity for the nine months ended September 30, 2018:
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Schedule of Equity Compensation, Restricted Award Activity | The following table summarizes restricted award activity for the nine months ended September 30, 2018:
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Schedule of Equity Compensation Performance Award Activity | The following table summarizes performance award activity for the nine months ended September 30, 2018:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | The following table summarizes our segment information (in thousands):
|
Accounting Policies (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Increase to Cash Flow from Operations [Abstract] | |
Prior period reclassification adjustment | $ 6.3 |
Revenue (Disaggregation of Revenue by Revenue Source) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of revenue | ||||
Revenues | $ 629,735 | $ 528,643 | $ 1,811,549 | $ 1,549,372 |
Truckload Transportation Services | ||||
Disaggregation of revenue | ||||
Revenues | 484,782 | 407,566 | 1,386,615 | 1,196,071 |
Werner Logistics | ||||
Disaggregation of revenue | ||||
Revenues | 129,422 | 104,568 | 380,854 | 305,225 |
Inter-segment eliminations | ||||
Disaggregation of revenue | ||||
Revenues | (208) | (104) | (878) | (720) |
Transportation Services | ||||
Disaggregation of revenue | ||||
Revenues | 613,996 | 512,030 | 1,766,591 | 1,500,576 |
Other revenues | ||||
Disaggregation of revenue | ||||
Revenues | $ 15,739 | $ 16,613 | $ 44,958 | $ 48,796 |
Revenue (Disaggregation of Revenue by Geographical Areas) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of revenue | ||||
Revenues | $ 629,735 | $ 528,643 | $ 1,811,549 | $ 1,549,372 |
United States | ||||
Disaggregation of revenue | ||||
Revenues | 548,885 | 454,611 | 1,577,189 | 1,341,667 |
Mexico | ||||
Disaggregation of revenue | ||||
Revenues | 61,028 | 54,587 | 177,180 | 155,903 |
Others | ||||
Disaggregation of revenue | ||||
Revenues | $ 19,822 | $ 19,445 | $ 57,180 | $ 51,802 |
Credit Facilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Line of Credit Facility [Line Items] | ||
2018 | $ 0 | |
2019 | 75,000 | |
2020 | 50,000 | |
2021 | 0 | |
2022 | 0 | |
Total | $ 125,000 | $ 75,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Examination [Line Items] | ||||||
Accrued interest expense | $ 26 | $ 39 | $ 79 | $ 142 | ||
Gross liability for unrecognized tax benefits | 2,400 | 2,400 | ||||
Unrecognized tax benefits that would impact our effective tax rate | 1,900 | 1,900 | ||||
Interest included in total liability | 300 | 300 | ||||
Significant increases or decreases for uncertain tax positions | $ 0 | $ 0 | ||||
Federal corporate tax rate | 35.00% | |||||
State and Foreign Tax Authorities | Minimum | ||||||
Income Tax Examination [Line Items] | ||||||
Period of statute of limitations (years) | 3 years | |||||
State and Foreign Tax Authorities | Maximum | ||||||
Income Tax Examination [Line Items] | ||||||
Period of statute of limitations (years) | 4 years | |||||
Statutory federal income tax rate [Domain] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal corporate tax rate | 21.00% |
Commitments And Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Dec. 30, 2014 |
|
Loss Contingencies [Line Items] | ||||||
Commitment for property and equipment purchases | $ 100,400 | $ 100,400 | ||||
Loss contingency, damages awarded, value | $ 800 | |||||
Insurance and claims | 22,011 | $ 20,669 | 73,858 | $ 60,336 | ||
Loss contingency, damages awarded, attorney fees and costs | $ 500 | |||||
May 17, 2018 Verdict [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages awarded, value | 92,000 | |||||
Self insurance retained liability | $ 10,000 | |||||
Insurance and claims | 14,000 | |||||
Loss contingency, receivable, noncurrent | 79,200 | 79,200 | ||||
Loss contingency, accrual, noncurrent | $ 79,200 | $ 79,200 |
Earnings Per Share (Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 47,514 | $ 22,517 | $ 113,585 | $ 61,755 |
Weighted average common shares outstanding | 71,436 | 72,298 | 72,001 | 72,239 |
Dilutive effect of stock-based awards | 316 | 303 | 299 | 278 |
Shares used in computing diluted earnings per share | 71,752 | 72,601 | 72,300 | 72,517 |
Basic earnings per share | $ 0.67 | $ 0.31 | $ 1.58 | $ 0.85 |
Diluted earnings per share | $ 0.66 | $ 0.31 | $ 1.57 | $ 0.85 |
Number of antidilutive options that were excluded from computation of earnings per share | 0 | 0 | 0 | 0 |
Equity Compensation (Equity Compensation Expense And Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Stock Options | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | $ 0 | $ 2 | $ 0 | $ 5 |
Tax benefit | 0 | 1 | 0 | 2 |
Stock expense, net of tax | 0 | 1 | 0 | 3 |
Restricted Stock | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | 1,028 | 941 | 3,091 | 2,440 |
Tax benefit | 262 | 367 | 788 | 952 |
Stock expense, net of tax | 766 | 574 | 2,303 | 1,488 |
Performance Shares | ||||
Equity Compensation [Abstract] | ||||
Pre-tax compensation expense | 992 | 308 | 2,319 | 897 |
Tax benefit | 253 | 120 | 591 | 350 |
Stock expense, net of tax | $ 739 | $ 188 | $ 1,728 | $ 547 |
Equity Compensation (Schedule of Equity Compensation Restricted Stock Activity) (Details) - Restricted Stock shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 273 |
Number of shares granted | shares | 125 |
Number of shares vested | shares | (22) |
Number of shares forfeited | shares | (10) |
Number of shares nonvested at end of period | shares | 366 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 27.69 |
Weighted average grant date fair value shares granted | $ / shares | 37.42 |
Weighted average grant date fair value shares vested | $ / shares | 26.81 |
Weighted average grant date fair value shares forfeited | $ / shares | 29.05 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 31.03 |
Equity Compensation (Schedule of Equity Compensation Performance Shares Activity) (Details) - Performance Shares shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 158 |
Number of shares granted | shares | 84 |
Number of shares vested | shares | (35) |
Number of shares forfeited | shares | 0 |
Number of shares nonvested at end of period | shares | 207 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 27.20 |
Weighted average grant date fair value shares granted | $ / shares | 37.48 |
Weighted average grant date fair value shares vested | $ / shares | 27.07 |
Weighted average grant date fair value shares forfeited | $ / shares | 0.00 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 28.30 |
Segment Information (Narratives) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
Segments
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 629,735 | $ 528,643 | $ 1,811,549 | $ 1,549,372 |
Operating Income | 63,386 | 35,874 | 149,284 | 98,759 |
Truckload Transportation Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 484,782 | 407,566 | 1,386,615 | 1,196,071 |
Operating Income | 58,894 | 34,009 | 135,748 | 93,511 |
Werner Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129,422 | 104,568 | 380,854 | 305,225 |
Operating Income | 4,776 | 1,318 | 13,135 | 6,652 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,107 | 16,020 | 42,788 | 47,257 |
Operating Income | 576 | 1,001 | 433 | 605 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 632 | 593 | 2,170 | 1,539 |
Operating Income | (860) | (454) | (32) | (2,009) |
Subtotal | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 629,943 | 528,747 | 1,812,427 | 1,550,092 |
Inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (208) | $ (104) | $ (878) | $ (720) |
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