J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings
14 April 1999
J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the First Quarter of 1999
LOWELL, Ark.--April 14, 1999--J. B. Hunt Transport Services, Inc., the transportation logistics company, announced a 12% increase in net earnings and a 14% increase in revenues for the first quarter of 1999. Net earnings rose to $10.6 million, or diluted earnings per share of 29 cents in the first quarter of 1999, compared with $9.5 million, or diluted earnings per share of 26 cents, in the first quarter of 1998.Total revenue increased to $470.2 million in the first quarter of 1999 from $413.5 million in the comparable period of 1998. Revenue in the Van segment grew 5%, with truck business up 8% and intermodal revenue increasing 5%. The Logistics segment (JBHL) revenue increased 20%, while Dedicated Contract Services (DCS) segment revenues rose 66%. Average road tractors in Van increased 3% in the first quarter of 1999, compared with 1998. Overall truck freight rates in 1999 were essentially flat when compared with the same period in 1998, while intermodal rates declined 1.3%. While the overall rates show little movement, it should be noted that the company is in the process of increasing prices where appropriate even though the overall rate may not reflect the increases due to a change in the freight mix hauled by the company. The increase in JBHL revenue was due to the addition of new account relationships and growth with existing customers. The significant increase in DCS revenue was driven by a 64% increase in the tractor fleet, supporting new contractual arrangements and growth with existing customers.
Revenue and earnings were in line with the company's plan for the first quarter. The excellent growth in the JBHL and DCS segments was slightly ahead of plan, continuing the company's strategy of providing technology enabled, engineered solutions for customers. Additionally, the company's Van business produced modest growth also in accordance with the plan for 1999. Net earnings were favorably impacted by lower fuel costs and improved safety results when compared with the first quarter of 1998. However, fuel costs increased significantly during March and early April of 1999. Also, while frequency of accidents reached record lows in the first quarter, the cost of three serious collisions in February and March substantially exceeded recent trends and negatively impacted earnings in the quarter by four cents per share.
J. B. HUNT TRANSPORT SERVICES, INC.
Comparative Condensed Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31
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1999 1998
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Operating revenues $470,244 $413,466
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Operating income $ 24,174 $ 21,658
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Net earnings $ 10,586 $ 9,483
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Average number of common
shares outstanding 35,615 35,613
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Diluted shares outstanding 36,555 36,648
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Basic earnings per share $ 0.30 $ 0.27
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Diluted earnings per share $ 0.29 $ 0.26
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