J. B. Hunt Reports Revenues and Earnings Q1 2000
14 April 2000
J. B. Hunt Transport Services, Inc. Reports Revenues and Earnings for the First Quarter of 2000
LOWELL, Ark.--April 13, 2000--J. B. Hunt Transport Services, Inc., (Nasdaq:JBHT) announced revenues of $534 million for the first quarter of 2000, an increase of 13% over the first quarter of 1999. Net earnings were $5.0 million, or diluted earnings per share of 14 cents in the first quarter of 2000, compared with $10.6 million, or diluted earnings per share of 29 cents, in the first quarter of 1999.The first quarter of 2000 marks the first period of separately reporting segment results from the Company's Truck and Intermodal business units. Previously, the two units had been reported together as the Van segment. The Company's previously announced plan to operationally separate the Truck and Intermodal business units, which is proceeding according to plan, prompted the separate segment reporting. Revenue in the Truck segment grew 12%, Intermodal segment revenue declined 3% and revenue from Dedicated Contract Services (DCS) rose 40%. Revenues from the non-asset based Logistics segment (JBHL) increased 34%.
During the current quarter, the Company added 563 tractors, with 534 of those being placed in DCS. Overall truck revenue per mile, exclusive of fuel surcharges, rose 3.7% in the first quarter of 2000 vs. the same quarter in 1999. Intermodal rates were essentially flat when compared with the same period in 1999. 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 the large growth in the tractor fleet, new contractual arrangements and growth with existing customers.
Net earnings were unfavorably impacted by substantially higher fuel costs that were 54% higher than the same quarter a year ago. Fuel surcharges recovered approximately 60% of the higher fuel costs resulting in a net negative impact on earnings per share of 17 cents for the current quarter. Earnings were enhanced by a drop in the effective income tax rate, but the savings was offset by similar increases in other accruals. The lower income tax rate was the result of a sale and lease-back transaction that closed during the fourth quarter of 1999.
As previously announced, the Company, along with five other carriers, intends to merge its non-asset based logistics business into a commonly owned, Internet-based global transportation logistics company, Transplace.com.
This report may contain 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.
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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2000 1999
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Operating revenues $533,556 $470,244
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Operating income $ 12,229 $ 24,174
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Net earnings $ 5,013 $ 10,586
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Average number of common
shares outstanding 35,604 35,615
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Diluted shares outstanding 35,622 36,555
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Basic earnings per share $ 0.14 $ 0.30
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Diluted earnings per share $ 0.14 $ 0.29
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