J.B. Hunt Transport Services, Inc.

Transcription

1 What s your next move? J.B. Hunt Transport Services, Inc. 2Q 2013 Results SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED

2 Disclosure This presentation and discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Words such as expects, anticipates, intends, estimates, or similar expressions are intended to identify these forward-looking statements. These statements are based on J.B. Hunt s current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. For further information, please refer to J.B. Hunt s reports and filings with the Securities and Exchange Commission. 2

3 Distinct Complementary Businesses Intermodal (JBI) Largest, 100% 53 high-cube container fleet Largest drayage fleet in North America Priority loading and unloading at major rail terminals Dedicated Contract Services (DCS) Fleet creation, conversion and augmentation Design and implementation of value-driven supply chain solutions On-site management Integrated Capacity Solutions (ICS) Non-asset based offering of dry van, flatbed, refrigerated, expedited and LTL services 40- and 20-foot box domestic and international containers and international intermodal services Services to all 50 States, Canada and Mexico Truckload (JBT) One of the largest capacity networks in North America Instant tracking via the Internet GPS trailer tracking 80% 60% 40% 20% 0% 22% 75% 9% 2Q 2013 Revenue Mix 7% 20% 62% Percentage of 2Q 2013 Operating Income by Business Segment JBI DCS ICS JBT 3% 2% JBI DCS ICS JBT 3

4 2Q 2013 Results vs. 2Q Q 2013 Revenue: $1.38 billion; up 10% 2Q 2013 Revenue, excl FSC: $1.12 billion; up 11% 2Q 2013 Operating Income: $147 million; up 7% 2Q 2013 EPS: $0.73 vs. $0.67 Segment Performance Intermodal (JBI) Revenue: $855 million; up 12% Operating Income: $110.7 million; up 19% Dedicated Contract Services (DCS) Revenue: $303 million; up 13% Operating Income: $29.7 million; down 11% Integrated Capacity Solutions (ICS) Revenue: $132 million; up 20% Operating Income: $4.2 million; up 113% Truck (JBT) Revenue: $101 million; down 20% Operating Income: $3.0 million; down 67% 4

5 2Q 2013 Results Consolidated $6,000 $5,000 $4,000 $3,732 Revenue (in millions) $3,793 $4,527 $5,055 $600 $500 $400 $300 $200 $100 $- $358 $248 Operating Income (in millions) $348 $444 $530 $137 $ $3,203 $3,000 Diluted EPS $2,000 $1,000 $1,255 $1,383 $3.00 $2.50 $2.00 $1.50 $1.00 $1.56 $1.05 $1.56 $2.11 $2.59 $0.67 $0.73 $0.50 $ Q12 2Q13 $

6 Key Points Industry leading Intermodal franchise Differentiated & specialized Dedicated business Independent brokerage/management services Lighter Truckload asset model 6

7 What s your next move? J.B. Hunt Transport Services, Inc. Segment Discussion SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED

8 JBI Intermodal $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- $1,952 $1,764 JBI Revenue (in millions) $2,141 $2,673 $3,071 $762 $ Revenue increased by 12% due to overall volumes increasing 12% compared to 2Q 2012 Eastern network grew by 14% and transcontinental growth showed a 11% improvement Operating income increased 19% over 2Q 2012 Benefits from steady demand, overall growth, lower insurance and claims costs and lower office personnel compensation costs were partially offset by abandoned shared technology costs, destruction of equipment due to two train derailments and increases in outsourced dray costs, rail transportation costs and equipment costs The quarter ended with close to 62,000 trailing units and approximately 3,950 power units available to the dray fleet 8

9 JBI Performance 30% 25% 20% 15% 10% 5% 25% JBI Revenue Growth 15% 12% 40% 30% 20% 10% 27% JBI Operating Income Growth 24% 19% 0% FY11/FY10 FY12/FY11 2Q Y/Y 0% FY11/FY10 FY12/FY11 2Q Y/Y 1,735 1,725 1,726 JBI Average Length of Haul $2,200 JBI Revenue per Load 1,715 1,705 1,702 $2,169 1,695 1,685 1,687 1,688 $2,150 $2,141 $2,148 $2,144 1,675 1,665 1,655 $2,100 9

10 DCS Dedicated $1,200 $1,000 $800 $600 $400 $200 $- $927 $757 DCS Revenue (in millions) $907 $1,031 $1,080 $267 $ Revenue increased 13% over 2Q 2012 New accounts provided a net additional 863 revenue-producing trucks Operating income decreased 11% compared to 2Q 2012 Operating income decrease is primarily related to the approximately $2.5 million in account start up costs associated with new long-term customers Additionally, operating income was affected by abandoned shared technology costs, lower gains on equipment sales, increased equipment costs and increased insurance and claims costs 10

11 DCS Performance 15% 14% DCS Revenue Growth 13% 30% 25% DCS Operating Income Growth 10% 20% 10% 13% 5% 5% 0% 0% FY11/FY10 FY12/FY11 2Q Y/Y -10% -20% -11% FY11/FY10 FY12/FY11 2Q Y/Y DCS Average Length of Haul ,500,000 DCS Loads 1,444,518 1,522, ,000, , , ,

12 ICS Non-Asset Based $500 ICS Revenue (in millions) $456 Revenue increased 20% vs. 2Q 2012 mostly due to a 29% increase in load volume Volumes grew faster than revenue primarily $450 due to an increase in less-than-truckload $400 business $350 $356 Contractual volume growth accelerated to $300 $250 $209 $259 $291 60% of total volume, comparable to 2Q 2012 Operating income increased 113% over 2Q 2012 primarily due to the increased revenue $200 and improvement in gross profit margin $150 $100 $50 $- $109 $ Gross profit margin increased to 11.8% from 10.6% in 2Q 2012 Carrier base increased 10% and employee count increased 8% over 2Q

13 ICS Performance 30% 25% 20% 15% 10% 5% 22% ICS Revenue Growth 28% 20% 125% 100% 75% 50% 25% 41% ICS Operating Income Change 113% 23% 0% FY11/FY10 FY12/FY11 2Q Y/Y 0% FY11/FY10 FY12/FY11 2Q Y/Y 15.0% 10.0% 5.0% 0.0% ICS Gross Profit Margin 13.5% 13.0% 10.6% 11.8% 350, , , , , ,000 50,000 - ICS Loads 326, ,344 74,112 95,740 13

14 JBT Truckload $800 $600 $400 $676 $447 JBT Revenue (in millions) $479 $504 $484 Revenue decreased 20% from 2Q 2012 on an approximately 16% reduction in fleet size Revenue, excluding fuel surcharges, decreased 19% Rate per mile, excluding fuel surcharges, increased 2.1% over 2Q 2012 on a 10% shorter length of haul Rates from consistent shippers decreased by 0.6% over 2Q 2012 $200 $126 $101 Operating income decreased 67% compared to 2Q 2012 At the end of the period, JBT operated just over 2,000 tractors $ Q 12 1Q 13 14

15 JBT Performance JBT Average Length of Haul JBT Average Nonpaid Empty Miles Per Load JBT Loads 444, ,366 JBT Revenue per Tractor per Week 400, ,000 $5,000 $4,000 $3,869 $3,891 $3,994 $3, ,000 $3, , , ,024 $2,000 - $1,000 $- 15

16 Summary Competitively differentiated Unique intermodal network Distinct advantages in dedicated segments Network economics and brand strength to penetrate new markets Complemented by industry dynamics Shippers need to reduce costs Shippers demand on-time service Increasingly complex supply-chains Positioned for growth Leading positions in large and consolidating markets Clear value proposition for our customers Best-in-class systems and technology 16

17 Balance Sheet 17