J. B. Hunt Transport Services, Inc. Financial Reports for the 2nd Quarter of 2000
18 July 2000
J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the Second Quarter of 2000
LOWELL, Ark. - J. B. Hunt Transport Services, Inc., announced second quarter 2000 net earnings of $11.1 million, or earnings per diluted share of 31 cents, compared with 1999 second quarter net earnings of $10.8 million, or 30 cents per diluted share.Total revenue increased 17% to $584 million in the second quarter of 2000 from $498 in the comparable period of 1999. Revenue grew 5% during the second quarter of 2000 in both the Truck and Intermodal business segments. The Company began reporting Truck and Intermodal segment results separately effective January 1, 2000. Dedicated Contract Services (DCS) segment revenue increased 53% during the second quarter, while revenues in the non-asset based Logistics segment grew 37%. As previously announced, the Company contributed all of its non-asset based Logistics business to a recently formed joint venture, Transplace.com. Transplace.com, which is jointly owned by six of the largest publicly-held truckload transportation companies and its Chief Executive Officer, Jun-Sheng Li, commenced operations effective July 1, 2000. J. B. Hunt contributed all of its Logistics business and all related intangible assets, plus $5.0 million of cash, in exchange for an approximate 27% initial membership interest in the fair market value of Transplace.com.
Second quarter earnings were positively impacted by higher consolidated revenue levels and truck only rate increases (excluding fuel surcharges). Intermodal rates were essentially flat when compared to 1999. Fuel costs remained historically high during the second quarter of 2000. The Company was able to recover the majority of these increased costs relative to the second quarter of 1999, through fuel surcharge revenues. Second quarter earnings were also enhanced by a decrease in the effective income tax rate. The lower tax rate was the result of a sale and lease-back transaction that closed during the fourth quarter of 1999.
Operating revenues for the six months ended June 30, 2000 increased 15%, to $1.117 billion from $967.8 million in 1999. For the current six months Truck segment revenue was up 9%, Intermodal revenue grew 1%, DCS revenue was up 47% and Logistics increased 36%. Net earnings for the six months ended June 30, 2000 were $16.1 million, or 45 cents per diluted share, compared with $21.4 million, or 59 cents per diluted share in 1999. Fuel costs (net of fuel surcharge revenue) for the six months ended June 30, 2000 reduced net earnings by 15 cents per diluted share.
J. B. HUNT TRANSPORT SERVICES, INC.
Comparative Condensed Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
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2000 1999 2000 1999
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Operating revenues $583,500 $497,554 $1,117,056 $967,798
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Operating income $20,708 $24,239 $32,937 $48,414
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Net earnings $11,054 $10,785 $16,067 $21,370
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Average number of common
shares outstanding 35,315 35,625 35,459 35,620
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Diluted shares outstanding 35,505 35,847 35,548 36,226
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Basic earnings per share $0.31 $0.30 $0.45 $0.60
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Diluted earnings per share $0.31 $0.30 $0.45 $0.59
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