Werner Enterprises Reports Q1 2000 Operating Revenues and Earnings
14 April 2000
Werner Enterprises Reports First Quarter 2000 Operating Revenues and Earnings
OMAHA, Neb.--April 14, 2000--Werner Enterprises, Inc. (Werner), one of the nation's largest truckload transportation companies, today reported operating revenues and earnings for the first quarter ended March 31, 2000. Operating revenues for first quarter increased 21% to a record $291.4 million compared to $241.0 million in the first quarter of 1999. Earnings per share decreased to $.22 per share compared to $.27 per share in first quarter 1999, due primarily to the higher cost of fuel."First quarter 2000 was a quarter of challenges and opportunities for Werner Enterprises," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "Fuel prices reached a ten-year high during the quarter, compared to a ten-year low in the same period a year ago. High fuel prices reduced our earnings by approximately 10 cents per share for first quarter 2000 compared to first quarter 1999.
"Over the last few months, we have increased our focus on improving our margins and returns. We contacted our customers to explain the critical need for improved fuel surcharge reimbursement. We significantly improved the percentage recovery of fuel reimbursement for the increased cost of fuel in first quarter 2000 compared to fourth quarter 1999. Demand for our services remained strong throughout the quarter. We improved our revenue per truck per week, net of fuel reimbursement, by about 4% due to improved rates per mile and better utilization."
On March 14, 2000, we announced that Werner Enterprises signed a letter of intent to join five other large transportation companies and merge their logistics business units into a commonly owned, Internet-based transportation logistics company, Transplace.com. Transplace.com will offer a Web-enabled transportation platform to bring together shippers and carriers to collaborate on their transportation logistics planning and execution in the most efficient and effective manner. Transplace.com is developing programs for the cooperative purchasing of products, supplies and services with the goal of lowering the costs of member carriers. It is expected that Werner Enterprises will transfer its existing logistics business to Transplace.com during third quarter 2000. This transfer is not expected to materially impact the earnings of Werner Enterprises during the year 2000.
During first quarter 2000, Werner Enterprises purchased 163,201 shares of its common stock at an average cost of $13 per share.
"Werner Enterprises is committed to improving earnings growth and shareholder value. The current challenges facing the truckload industry are tremendous opportunities for our Company. Our size, superior service, advanced technology, financial strength and experienced management team provide Werner Enterprises with distinct competitive advantages. We are excited and optimistic about the future of our Company," said C. L. Werner.
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 Clarence L. Werner. Werner is one of the nation's largest truckload carriers with a fleet of 7,175 trucks and 18,900 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 contains 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, 1999.
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
3/31/00 Revenues 3/31/99 Revenues
--------- ---------- --------- ----------
Operating revenues $291,379 100.0 $240,980 100.0
--------- ---------- --------- ----------
Operating expenses:
Salaries, wages and
benefits 103,312 35.4 89,321 37.1
Fuel 31,209 10.7 14,008 5.8
Supplies and maintenance 25,312 8.7 20,138 8.3
Taxes and licenses 21,462 7.4 19,766 8.2
Insurance and claims 6,980 2.4 9,390 3.9
Depreciation 26,321 9.0 23,535 9.8
Rent and purchased
transportation 57,027 19.5 42,327 17.6
Communications and
utilities 3,686 1.3 3,099 1.3
Other (2,465) (0.8) (1,847) (0.8)
--------- ---------- --------- ----------
Total operating
expenses 272,844 93.6 219,737 91.2
--------- ---------- --------- ----------
Operating income 18,535 6.4 21,243 8.8
--------- ---------- --------- ----------
Other expense (income):
Interest expense 2,235 0.8 1,198 0.5
Interest income (447) (0.1) (330) (0.1)
Other 105 0.0 17 0.0
--------- ---------- --------- ----------
Total other expense 1,893 0.7 885 0.4
--------- ---------- --------- ----------
Income before income taxes 16,642 5.7 20,358 8.4
Income taxes 6,324 2.2 7,736 3.2
--------- ---------- --------- ----------
Net income $10,318 3.5 $12,622 5.2
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Diluted shares outstanding 47,251 47,570
========= =========
Diluted earnings per share $.22 $.27
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BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
3/31/00 12/31/99
--------- --------
Current assets $196,138 $188,827
Total assets $887,913 $896,879
Current liabilities $102,632(a) $121,206(a)
Long-term debt $120,000 $120,000
Stockholders' equity $501,800 $494,772
(a) Current liabilities include $5 million and $25 million of
short-term debt at March 31, 2000 and December 31, 1999, respectively.