Werner Enterprises Reports Record 4Q 1998 and Annual 1998
21 January 1999
Werner Enterprises Reports Record Fourth Quarter 1998 and Annual 1998 Operating Revenues and Earnings
Business Editors
OMAHA, Neb.--Jan. 21, 1999--Werner Enterprises,
Inc. (Werner), one of the nation's five largest truckload
transportation companies, today reported record operating revenues and
earnings for the fourth quarter and year ended December 31, 1998.
Operating revenues for fourth quarter 1998 increased 13% to $232.3
million compared to $206.2 million in the fourth quarter of 1997.
Earnings grew 10% to $.33 per diluted share in fourth quarter 1998
compared to $.29 per diluted share in fourth quarter 1997. Werner
generated substantial truck growth of 276 trucks during fourth quarter
1998 compared to third quarter 1998, due to improved driver
recruiting. This should increase growth in revenues and earnings in
1999.
Operating revenues increased 12% to $863.4 million for the full
year 1998 compared to $772.1 million for 1997. Earnings increased 18%
to $1.19 per diluted share for 1998 compared to $1.01 per diluted
share for 1997.
Clarence (C.L.) Werner, Chairman and Chief Executive Officer said
"Improved driver recruiting, solid shipper demand, and lower fuel
prices contributed to the record fourth quarter results. We were
pleased that we added 200 more trucks in fourth quarter 1998 compared
to fourth quarter 1997. We expect to continue to improve our
recruitment of drivers in 1999."
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INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
12/31/98 Revenues 12/31/97 Revenues
--------- --------- -------- ---------
Operating revenues $232,317 100.0 $206,174 100.0
--------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 88,256 38.0 73,734 35.8
Fuel 14,124 6.1 17,556 8.5
Supplies and maintenance 19,114 8.2 15,979 7.8
Taxes and licenses 18,301 7.9 16,075 7.8
Insurance and claims 5,729 2.5 4,967 2.4
Depreciation 22,114 9.5 19,072 9.2
Rent and purchased
transportation 38,556 16.6 36,210 17.6
Communications and
utilities 2,874 1.2 2,114 1.0
Other (2,678) (1.2) (2,651) (1.3)
--------- --------- -------- ---------
Total operating
expenses 206,390 88.8 183,056 88.8
--------- --------- -------- ---------
Operating income 25,927 11.2 23,118 11.2
--------- --------- -------- ---------
Other expense (income):
Interest expense 1,403 0.6 1,041 0.5
Interest income (428) (0.1) (481) (0.2)
Other 40 0.0 41 0.0
--------- --------- -------- ---------
Total other expense 1,015 0.5 601 0.3
--------- --------- -------- ---------
Income before income taxes 24,912 10.7 22,517 10.9
Income taxes 9,466 4.1 8,319 4.0
--------- --------- -------- ---------
Net income $15,446 6.6 $14,198 6.9
========= ========= ======== =========
Diluted shares outstanding 47,480 48,184
========= ========
Diluted earnings per share $.33 $.29
========= ========
Year % of Year % of
Ended Operating Ended Operating
12/31/98 Revenues 12/31/97 Revenues
--------- --------- -------- ---------
Operating revenues $863,417 100.0 $772,095 100.0
--------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 325,659 37.7 278,968 36.1
Fuel 56,786 6.6 67,600 8.8
Supplies and maintenance 72,273 8.4 63,060 8.2
Taxes and licenses 67,907 7.9 58,513 7.6
Insurance and claims 23,875 2.7 21,212 2.7
Depreciation 82,549 9.6 72,634 9.4
Rent and purchased
transportation 139,026 16.1 132,261 17.1
Communications and
utilities 10,796 1.2 8,358 1.1
Other (11,065) (1.3) (8,158) (1.1)
--------- --------- -------- ---------
Total operating
expenses 767,806 88.9 694,448 89.9
--------- --------- -------- ---------
Operating income 95,611 11.1 77,647 10.1
--------- --------- -------- ---------
Other expense (income):
Interest expense 4,889 0.6 3,002 0.4
Interest income (1,724) (0.2) (1,580) (0.2)
Other 114 0.0 130 0.0
--------- --------- -------- ---------
Total other expense 3,279 0.4 1,552 0.2
--------- --------- -------- ---------
Income before income taxes 92,332 10.7 76,095 9.9
Income taxes 35,086 4.1 27,717 3.6
--------- --------- -------- ---------
Net income $57,246 6.6 $48,378 6.3
========= ========= ======== =========
Diluted shares outstanding 47,910 47,959
========= ========
Diluted earnings per share $1.19 $1.01
========= ========
BALANCE SHEET DATA
(In thousands)
As of As of
12/31/98 12/31/97
--------- ---------
Current assets $145,265 $145,792
Total assets 769,196 667,638
Current liabilities 91,907 91,791
Long-term debt 100,000 60,000
Stockholders' equity 440,588 395,118
Werner Enterprises is a full-service transportation company
providing truckload and other transportation services throughout the
48 states, portions of Canada and Mexico. The Company was founded in
1956 by C.L. Werner. Werner is one of the nation's five largest
truckload carriers with a fleet of 6,150 trucks and 16,350 trailers.
Werner Enterprises' common stock is traded on The Nasdaq Stock
Market under the symbol WERN. The Werner Enterprises web site address
is www.werner.com.
Note: This press release may contain forward-looking statements
which are based on information currently available. Actual results
could differ materially from those anticipated as a result of a number
of factors, including, but not limited to, those discussed in item 7
of the Company's Annual Report on Form 10-K for the year ended
December 31, 1997.