JBHT J B Hunt Transport Services Inc

• Third Quarter 2024 Revenue: $3.07 billion; down 3%
• Third Quarter 2024 Operating Income: $224.1 million; down 7%
• Third Quarter 2024 EPS: $1.49 vs. $1.80; down 17%

J.B. Hunt Transport Services, Inc., (NASDAQ: JBHT) announced third quarter 2024 U.S. GAAP (United States Generally Accepted Accounting Principles) net earnings of $152.1 million, or diluted earnings per share of $1.49 versus third quarter 2023 net earnings of $187.4 million, or $1.80 per diluted share.

Total operating revenue for the current quarter was $3.07 billion, a decrease of 3% compared with $3.16 billion for the third quarter 2023. The decline in revenue was primarily driven by a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services® (DCS®), respectively, and 6% fewer stops in Final Mile Services® (FMS). These items were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Current quarter total operating revenue, excluding fuel surcharge revenue, decreased less than 1% versus the comparable quarter 2023.

Operating income for the current quarter decreased 7% to $224.1 million versus $241.7 million for the third quarter 2023. Operating income decreased primarily due to lower revenue in all segments excluding JBI, and higher personnel-related, insurance and claims, and equipment-related expense compared to third quarter 2023. On a consolidated basis, operating income as a percentage of gross revenue decreased year-over-year as a result of the same aforementioned expense items, partially offset by lower rail and truck purchased transportation costs as a percentage of gross revenue.

Net interest expense for the current quarter increased compared to third quarter 2023 due primarily to higher interest rates and the prior year including an interest component of a discrete income tax benefit.

The effective income tax rate in the current quarter was 25.2% versus 18.2% in the third quarter 2023. The increase was due to the recording of a discrete benefit recognized in the prior-year quarter. We expect our 2024 annual tax rate to be approximately 24.5%.

Segment Information:

Intermodal (JBI)

• Third Quarter 2024 Segment Revenue: $1.56 billion; flat
• Third Quarter 2024 Operating Income: $111.8 million; down 13%

Intermodal volume increased 5% over the same period in 2023. Transcontinental network loads increased 7%, while eastern network loads increased 3% compared to the third quarter 2023. Demand for our intermodal service improved throughout the quarter across both the transcontinental and eastern networks, supported by seasonal activity and strong performance from our rail providers. Demand was particularly strong on eastbound transcontinental loads out of Southern California which increased by a double digit percentage as compared to the prior year period. Segment gross revenue was flat from the prior-year period, reflecting the 5% increase in volume and a 5% decrease in gross revenue per load, resulting from changes in customer rates, fuel surcharge revenue, and the mix of freight. Revenue per load excluding fuel surcharge revenue decreased 2% year-over-year.

Operating income decreased 13% in the third quarter primarily from lower yields, which was only partially offset by the resulting impact of absorbing network and equipment costs with higher volume. During the quarter, network imbalance and repositioning costs were elevated, along with driver hiring costs to meet peak season demand for customers in the quarter. JBl segment operating income as a percentage of segment gross revenue declined versus the prior-year period as a result of increases in professional driver and non-driver wages and benefits, higher insurance and claims cost, and higher equipment-related and maintenance expenses as a percentage of gross revenue. During the period, we onboarded 308 new pieces of trailing equipment. We ended the quarter with approximately 121,500 containers and 6,500 power units in the dray fleet.

Dedicated Contract Services (DCS)

• Third Quarter 2024 Segment Revenue: $846 million; down 5%
• Third Quarter 2024 Operating Income: $95.5 million; down 7%

DCS revenue decreased 5% during the current quarter over the same period 2023 driven by a 3% decline in average trucks combined with a 3% decline in productivity (revenue per truck per week). Productivity excluding fuel surcharge revenue was flat from a year ago driven primarily from lower utilization and increases in idled equipment, offset by contracted indexed­based price escalators. On a net basis, there were 498 fewer revenue producing trucks in the fleet by the end of the quarter compared to the prior-year period, and 128 fewer versus the end of the second quarter 2024. Customer retention rates are approximately 87%, largely reflecting downsizing of fleets and to a lesser extent account losses.

Operating income decreased 7% from the prior-year quarter primarily from lower revenue, higher insurance and claims and new-account start-up costs as compared to the prior-year period. These items were partially offset by lower personnel, bad debt and equipment-related expenses and the maturing of new business onboarded over the trailing twelve months. DCS segment operating income as a percentage of segment gross revenue declined versus the prior-year period as a result of increases in professional driver and non-driver wages and benefits, insurance and claims expense, and higher equipment and maintenance costs, as a percentage of gross revenue.

Integrated Capacity Solutions (ICS)

• Third Quarter 2024 Segment Revenue: $278 million; down 7%
• Third Quarter 2024 Operating (Loss): $(3.3) million; vs. $(9.4) million in Q3'23

ICS revenue declined 7% during the current quarter versus the third quarter 2023. Overall segment volume decreased 10% versus the prior-year period. Revenue per load increased 3% compared to the third quarter 2023 due to increases in both contractual and transactional rates as well as changes in customer mix. Contractual volume represented approximately 62% of the total load volume and 61% of the total revenue in the current quarter compared to 68% and 67%, respectively, in third quarter 2023.

Operating loss was $3.3 million compared to an operating loss of $9.4 million in the third quarter 2023. The decrease in operating loss was largely driven by an $11.7 million increase in gross profit and lower cargo claims and personnel-related expenses, partially offset by integration and transition costs related to the purchase of the brokerage assets of BNSF Logistics. Gross profit increased 31% as a result of higher gross profit margins compared to the prior-year period. Gross profit margins increased to 17.9% in the current period versus 12.8% in the prior period as a result of our disciplined bid strategy, effective sourcing of capacity and some project-related work. ICS’ carrier base decreased 18% year-over-year, largely driven by changes to carrier qualification requirements to mitigate cargo theft.

Final Mile Services (FMS)

• Third Quarter 2024 Segment Revenue: $218 million; down 3%
• Third Quarter 2024 Operating Income: $12.0 million; down 7%

FMS revenue decreased 3% compared to the same period 2023 primarily driven by general weakness in demand across many of the end markets served. The decline in revenue was partially offset by multiple new customer contracts implemented over the trailing twelve months, as well as improved revenue quality on the overall business portfolio.

Operating income decreased 7% compared to the prior-year period primarily driven by the decline in segment revenue along with higher purchased transportation costs and insurance premiums as compared to the prior-year period. These items were partially offset by lower personnel-related expenses.

Truckload (JBT)

• Third Quarter 2024 Segment Revenue: $173 million; down 12%
• Third Quarter 2024 Operating Income: $8.2 million; up 6%

JBT segment gross revenue decreased 12% compared to the same period in the previous year. Segment gross revenue excluding fuel surcharge revenue decreased 9% due to a 6% decline in load volume and a 3% decline in gross revenue per load excluding fuel surcharge revenue. Total average effective trailer count decreased by approximately 300 units, or 2% versus the prior-year period. Trailer turns in the quarter were down 4% from the prior-year period primarily due to softer overall freight demand as compared to the third quarter 2023.

JBT segment operating income increased 6% to $8.2 million versus the third quarter 2023. The increase in operating income was primarily driven by improved network balance and lower trailing capacity costs. JBT segment operating income as a percentage of segment gross revenue increased year-over-year due to the aforementioned items, partially offset by higher personnel-related expenses and higher insurance premiums as a percentage of revenue. JBT continues to leverage the J.B. Hunt 360°® platform to grow third-party power capacity and capability for the 360box® service offering.

Cash Flow and Capitalization:

At September 30, 2024, we had approximately $1.53 billion outstanding on various debt instruments compared to $1.45 billion at September 30, 2023 and $1.58 billion at December 31, 2023.

Our net capital expenditures for the nine months ended September 30, 2024 approximated $488 million compared to $1.32 billion for the same period 2023. At September 30, 2024, we had cash and cash equivalents of approximately $120 million.

In the third quarter 2024, we purchased approximately 1,200,000 shares of common stock for approximately $200 million. At September 30, 2024, we had approximately $967 million remaining under our share repurchase authorization. Actual shares outstanding at September 30, 2024 approximated 100.8 million.

Conference Call Information:

The company will hold a conference call today from 4:00–5:00 p.m. CDT to discuss the quarterly earnings. Investors will have the opportunity to listen to the conference call live over the internet by going to investor.jbhunt.com. Please log on 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, an online replay of the earnings call webcast will be available a few hours after the completion of the call.

Forward-Looking Statements:

This press release may contain forward-looking statements, which are based on information currently available. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2023. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason. This press release and additional information will be available to interested parties on our website, www.jbhunt.com.

About J.B. Hunt

J.B. Hunt’s vision is to create the most efficient transportation network in North America. The company’s industry-leading solutions and mode-neutral approach generate value for customers by eliminating waste, reducing costs and enhancing supply chain visibility. Powered by one of the largest company-owned fleets in the country and third-party capacity through its J.B. Hunt 360°® digital freight marketplace, J.B. Hunt can meet the unique shipping needs of any business, from first mile to final delivery, and every shipment in-between. Through disciplined investments in its people, technology and capacity, J.B. Hunt is delivering exceptional value and service that enable long-term growth for the company and its stakeholders.

J.B. Hunt Transport Services Inc. is a Fortune 500 company, an S&P 500 company and a component of the Dow Jones Transportation Average. Its stock trades on NASDAQ under the ticker symbol JBHT. J.B. Hunt Transport Inc. is a wholly owned subsidiary of JBHT. The company’s services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, transload and more. For more information, visit www.jbhunt.com.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended September 30

2024

2023

% Of

% Of

Amount

Revenue

Amount

Revenue

 

 

Operating revenues, excluding fuel surcharge revenues $

2,678,484

 

$

2,690,890

 

Fuel surcharge revenues

389,687

 

472,863

 

Total operating revenues

3,068,171

100.0%

3,163,753

100.0%

 

 

Operating expenses

 

 

Rents and purchased transportation

1,380,380

45.0%

1,443,197

45.6%

Salaries, wages and employee benefits

809,494

26.4%

803,187

25.4%

Depreciation and amortization

187,982

6.1%

187,714

5.9%

Fuel and fuel taxes

158,792

5.2%

195,962

6.2%

Operating supplies and expenses

127,889

4.2%

130,905

4.1%

Insurance and claims

78,441

2.6%

62,675

2.0%

General and administrative expenses, net of asset dispositions

72,389

2.2%

69,413

2.3%

Operating taxes and licenses

17,705

0.6%

18,739

0.6%

Communication and utilities

10,991

0.4%

10,245

0.3%

Total operating expenses

2,844,063

92.7%

2,922,037

92.4%

Operating income

224,108

7.3%

241,716

7.6%

Net interest expense

20,751

0.7%

12,586

0.4%

Earnings before income taxes

203,357

6.6%

229,130

7.2%

Income taxes

51,291

1.6%

41,699

1.3%

Net earnings $

152,066

5.0%

$

187,431

5.9%

Average diluted shares outstanding

102,135

 

104,394

 

Diluted earnings per share $

1.49

 

$

1.80

 

 

 

 

 

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

 

 

Nine Months Ended September 30

2024

2023

% Of

% Of

Amount

Revenue

Amount

Revenue

 

 

Operating revenues, excluding fuel surcharge revenues $

7,775,991

 

$

8,140,959

 

Fuel surcharge revenues

1,164,865

 

1,385,006

 

Total operating revenues

8,940,856

100.0%

9,525,965

100.0%

 

 

Operating expenses

 

 

Rents and purchased transportation

3,935,379

44.0%

4,315,581

45.3%

Salaries, wages and employee benefits

2,420,425

27.1%

2,450,062

25.7%

Depreciation and amortization

555,637

6.2%

543,498

5.7%

Fuel and fuel taxes

496,610

5.6%

563,642

5.9%

Operating supplies and expenses

371,305

4.2%

388,213

4.1%

Insurance and claims

227,348

2.5%

196,896

2.1%

General and administrative expenses, net of asset dispositions

223,878

2.4%

191,291

2.0%

Operating taxes and licenses

52,815

0.6%

55,797

0.6%

Communication and utilities

33,273

0.4%

31,067

0.3%

Total operating expenses

8,316,670

93.0%

8,736,047

91.7%

Operating income

624,186

7.0%

789,918

8.3%

Net interest expense

56,598

0.7%

41,980

0.4%

Earnings before income taxes

567,588

6.3%

747,938

7.9%

Income taxes

152,156

1.7%

173,186

1.9%

Net earnings $

415,432

4.6%

$

574,752

6.0%

Average diluted shares outstanding

103,126

 

104,562

 

Diluted earnings per share $

4.03

 

$

5.50

 

 

 

 

 

Financial Information By Segment

(in thousands)

(unaudited)

 

 

Three Months Ended September 30

2024

2023

% Of

% Of

Amount

Total

Amount

Total

 

 

Revenue

 

 

Intermodal $

1,556,774

 

51%

$

1,555,382

 

49%

Dedicated

845,963

 

28%

892,257

 

28%

Integrated Capacity Solutions

278,177

 

9%

298,015

 

9%

Final Mile Services

218,318

 

7%

225,929

 

8%

Truckload

173,223

 

5%

196,338

 

6%

Subtotal

3,072,455

 

100%

3,167,921

 

100%

Intersegment eliminations

(4,284

)

(0%)

(4,168

)

(0%)

Consolidated revenue $

3,068,171

 

100%

$

3,163,753

 

100%

 

 

 

 

Operating income

 

 

Intermodal $

111,785

 

50%

$

127,972

 

53%

Dedicated

95,510

 

43%

102,435

 

42%

Integrated Capacity Solutions

(3,255

)

(1%)

(9,375

)

(4%)

Final Mile Services

12,021

 

5%

12,975

 

6%

Truckload

8,151

 

3%

7,715

 

3%

Other (1)

(104

)

(0%)

(6

)

(0%)

Operating income $

224,108

 

100%

$

241,716

 

100%

 

 

 

 

Nine Months Ended September 30

2024

2023

% Of

% Of

Amount

Total

Amount

Total

Revenue

 

 

Intermodal $

4,359,621

 

49%

$

4,584,089

 

48%

Dedicated

2,556,989

 

29%

2,658,993

 

28%

Integrated Capacity Solutions

833,841

 

9%

1,026,480

 

11%

Final Mile Services

682,887

 

8%

674,945

 

7%

Truckload

519,631

 

5%

594,003

 

6%

Subtotal

8,952,969

 

100%

9,538,510

 

100%

Intersegment eliminations

(12,113

)

(0%)

(12,545

)

(0%)

Consolidated revenue $

8,940,856

 

100%

$

9,525,965

 

100%

 

 

 

 

Operating income

 

 

Intermodal $

312,918

 

50%

$

439,490

 

56%

Dedicated

285,569

 

46%

318,610

 

40%

Integrated Capacity Solutions

(34,084

)

(5%)

(19,166

)

(2%)

Final Mile Services

46,886

 

8%

34,419

 

4%

Truckload

12,928

 

1%

16,503

 

2%

Other (1)

(31

)

(0%)

62

 

0%

Operating income $

624,186

 

100%

$

789,918

 

100%

 

 

(1) Includes corporate support activity

 

 

Operating Statistics by Segment (unaudited)   Three Months Ended September 30

2024

2023

  Intermodal Loads

547,988

521,221

Average length of haul

1,697

1,683

Revenue per load $

2,841

$

2,984

Average tractors during the period *

6,374

6,447

Tractors (end of period) *

6,514

6,398

Trailing equipment (end of period)

121,477

117,387

Average effective trailing equipment usage

108,632

100,593

    Dedicated Loads

1,005,515

1,070,626

Average length of haul

180

176

Revenue per truck per week** $

5,073

$

5,215

Average trucks during the period***

12,800

13,242

Trucks (end of period) ***

12,761

13,259

Trailing equipment (end of period)

31,967

32,875

Average effective trailing equipment usage

32,525

33,185

    Integrated Capacity Solutions Loads

147,805

163,745

Revenue per load $

1,882

$

1,820

Gross profit margin

17.9%

12.8%

Employee count (end of period)

640

680

Approximate number of third-party carriers (end of period)

108,000

131,600

Marketplace for J.B. Hunt 360 revenue (millions) $

92.2

$

168.5

    Final Mile Services Stops

1,051,428

1,123,435

Average trucks during the period***

1,334

1,487

    Truckload Loads

100,896

107,149

Revenue per load $

1,717

$

1,832

Average length of haul

601

644

  Tractors (end of period) Company-owned

18

29

Independent contractor

1,971

1,960

Total tractors

1,989

1,989

  Trailers (end of period)

13,205

13,409

Average effective trailing equipment usage

12,588

12,869

    * Includes company-owned and independent contractor tractors ** Using weighted workdays *** Includes company-owned, independent contractor, and customer-owned trucks Operating Statistics by Segment (unaudited)   Nine Months Ended September 30

2024

2023

  Intermodal Loads

1,530,600

1,508,993

Average length of haul

1,692

1,663

Revenue per load $

2,848

$

3,038

Average tractors during the period *

6,309

6,521

Tractors (end of period) *

6,514

6,398

Trailing equipment (end of period)

121,477

117,387

Average effective trailing equipment usage

101,031

97,571

    Dedicated Loads

3,017,650

3,252,894

Average length of haul

181

173

Revenue per truck per week** $

5,032

$

5,152

Average trucks during the period***

13,080

13,316

Trucks (end of period) ***

12,761

13,259

Trailing equipment (end of period)

31,967

32,875

Average effective trailing equipment usage

32,660

32,181

    Integrated Capacity Solutions Loads

451,414

560,912

Revenue per load $

1,847

$

1,830

Gross profit margin

15.7%

13.1%

Employee count (end of period)

640

680

Approximate number of third-party carriers (end of period)

108,000

131,600

Marketplace for J.B. Hunt 360 revenue (millions) $

301.8

$

644.1

    Final Mile Services Stops

3,226,638

3,426,988

Average trucks during the period***

1,372

1,563

    Truckload Loads

287,209

307,336

Revenue per load $

1,809

$

1,933

Average length of haul

642

648

  Tractors (end of period) Company-owned

18

29

Independent contractor

1,971

1,960

Total tractors

1,989

1,989

  Trailers (end of period)

13,205

13,409

Average effective trailing equipment usage

12,693

13,035

    * Includes company-owned and independent contractor tractors ** Using weighted workdays *** Includes company-owned, independent contractor, and customer-owned trucks J.B. HUNT TRANSPORT SERVICES, INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited)   September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $

120,002

$

53,344

Accounts Receivable, net

1,262,921

1,334,912

Prepaid expenses and other

543,477

696,656

Total current assets

1,926,400

2,084,912

Property and equipment

9,053,779

8,767,872

Less accumulated depreciation

3,302,505

2,993,959

Net property and equipment

5,751,274

5,773,913

Other assets, net

648,276

679,435

$

8,325,950

$

8,538,260

    LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Current debt $

500,000

$

249,961

Trade accounts payable

673,452

737,364

Claims accruals

613,311

547,277

Accrued payroll

108,428

94,563

Other accrued expenses

146,254

150,256

Total current liabilities

2,041,445

1,779,421

  Long-term debt

1,032,303

1,326,107

Other long-term liabilities

390,156

392,766

Deferred income taxes

861,828

936,208

Stockholders' equity

4,000,218

4,103,758

$

8,325,950

$

8,538,260

      Supplemental Data (unaudited)  

September 30, 2024

December 31, 2023

  Actual shares outstanding at end of period (000)

100,830

103,220

  Book value per actual share outstanding at end of period $

39.67

$

39.76

      Nine Months Ended September 30

2024

2023

  Net cash provided by operating activities (000) $

1,165,520

$

1,529,612

  Net capital expenditures (000) $

488,067

$

1,319,905

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015964411/en/

Brad Delco Senior Vice President – Finance (479) 820-2723