J.B. Hunt Transport Services, Inc. Reports Revenues and Earnings
29 January 1999
J.B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the Fourth Quarter of 1998
LOWELL, Ark.--Jan. 28, 1999--J.B. Hunt Transport Services, Inc. the transportation logistics company, announced fourth quarter 1998 net earnings of $10.9 million, or diluted earnings per share of 30 cents, compared with 1997 fourth quarter earnings of $7.0 million or 19 cents per diluted share.Total revenue increased 19% to $493.8 million in the fourth quarter of 1998 from $415.2 million in 1997. Van revenues grew 16% during the quarter with truckload business up 18% and intermodal revenue up 14%. J.B. Hunt Logistics revenue rose 15% while revenues from Dedicated Contract Services (DCS) grew by 57%
In the Van group road tractors increased 11% in the fourth quarter of 1998 vs. the same quarter a year ago and truck rates rose 1.2% while intermodal rates fell 1.5%. Truck utilization rose to 2,715 miles per week from 2,670 miles per week. Lower fuel costs, better productivity and greatly improved safety results combined to produce an operating ratio of 94.0% in the Van group and operating income of $21.9 million, a 122% increase over a year ago.
Several new accounts and substantial growth with existing customers accounted for the jump in revenues at J.B. Hunt Logistics. The 2% margin generated on the logistics management services was in line with the company's expectations and consistent with prior periods. An increase of 870 tractors in the DCS segment fueled the growth in DCS revenues. Operating income rose 47% with an operating ratio of 93.9%.
Operating revenues for the year ended December 31, 1998, increased 18% to $1.84 billion from $1.55 billion in 1997. Net earnings for the twelve months ended December 31, 1998 were a record $46.8 million, or $1.28 per diluted share, compared with $11.4 million, or 31 cents per diluted share in 1997.
J. B. HUNT TRANSPORT SERVICES, INC.
Comparative Condensed Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
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1998 1997 1998 1997
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Operating
revenues $493,789 $415,233 $1,841,628 $1,554,292
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Operating income $25,349 $17,298 $103,044 $42,909
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Net earnings $10,882 $7,011 $46,837 $11,366
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Average number
of shares 35,605 36,034 35,582 36,405
outstanding ------- -------- ------- ---------
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Diluted shares
outstanding 35,787 36,128 36,601 36,448
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Basic earnings
per share $0.31 $0.19 $1.32 $0.31
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Diluted earnings
per share $0.30 $0.19 $1.28 $0.31
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