J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the Second Quarter of 2002; Conference Call Scheduled Today - 4:00 pm EDT

    LOWELL, Ark.--July 15, 2002--J. B. Hunt Transport Services, Inc., announced second quarter 2002 net earnings of $15.5 million, or diluted earnings per share of 40 cents, compared with 2001 second quarter earnings of $8.6 million, or 24 cents per diluted share.
    Total operating revenue for the current quarter was $557 million, compared with $521 million during the second quarter of 2001. During the second quarter of 2002, revenues of the Company's Truck segment were essentially flat, while the Intermodal segment revenue rose 10% over the comparable period of 2001. Dedicated segment (DCS) revenue increased 12% during the current quarter.
    Earnings improved significantly in the quarter as the operating leverage attributable primarily to the Truck segment began to be realized to a greater degree. The Truck operating ratio was 94.8% for the quarter, a 380 basis point improvement vs. the comparable period last year. The improvement in the Truck business segment for the fifth quarter in a row, relative to prior years, continues a trend of reaching the Company's stated objective of returning to acceptable margins. Net revenue (excluding fuel surcharges) per tractor per week improved 3.2% over the second quarter of 2001 in spite of a decline in miles per tractor per week. Contributing to the decline in miles was the continuing slowness of the economy, particularly in April. However, utilization improved throughout the quarter and by June, miles per tractor per week approximated June 2001 levels. Rate yields continued to improve as the loaded rate per mile (excluding fuel surcharges) increased 4.2% relative to a year ago. In spite of the continuing recession, empty miles declined significantly to 9% vs. 12% for the second quarter a year ago. The higher rates and lower empty miles are a result of the company's yield management initiatives launched in the last year. While the improvement is noteworthy, the company believes there is additional potential for further improvement. Better returns in the Truck segment are a prerequisite for re-investment in the truckload business. The company has no plans to add capacity in the Truck segment until satisfactory margins are achieved. The average number of trucks was 5,902 for the second quarter 2002 and 5,964 for the second quarter 2001.
    In the Intermodal segment, the operating ratio was 94.3% for the second quarter of 2002. Intermodal revenue per loaded mile (excluding fuel surcharge) was up 0.5% when compared with the same period in 2001. Dray costs per load, the pick-up and delivery portion of the intermodal move, were down 3% in the second quarter of 2002 vs. a year ago positively impacting profitability. Utilization of company containers as measured in turns per month jumped 13% vs. a year ago. Based on early July numbers, load volumes appear to be in line with expectations suggesting that a significant number of loads were not shifted into the second quarter in anticipation of a possible work stoppage or slowdown by port workers on the West Coast.
    The operating ratio for the DCS segment was 95.5% for the current quarter, an 80 basis point improvement over the same period a year ago. The increase in DCS revenue was driven by growth in the fleet of 267 tractors, new contractual arrangements and growth with existing customers. Revenue per tractor per day increased 6.6% partially due to new fleet projects that resulted in activating trucks that had been idle. As a result of the new start-ups, idle trucks declined from 228 at March 31 to 70 at June 30. Toward the end of the quarter as overall freight volumes began to improve, backhaul revenue for the last 4 weeks increased 2% over the average of the last 12 weeks.
    As previously announced, the Company closed on an offering of approximately 5.9 million shares of Common Stock during the current quarter. The Company issued and sold approximately 2.8 million shares and 3.1 million shares were sold by a shareholder. The 2.8 million additional Company shares, which were only outstanding during the latter part of the current quarter, reduced diluted earnings per share by approximately $.01.
    This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's best estimates. Actual results may differ materially.
    This press release and related information will be available immediately to interested parties at the Company's web site: www.jbhunt.com. Additionally, the Company will host a conference call today at 4:00 pm EDT to discuss second quarter results and an analyst report released this morning. You may participate in the conference call by dialing 866/210-6747