J.B. Hunt Transport Services, Inc. Reports U.S. GAAP Revenues, Net Earnings and Earnings Per Share for Both the Fourth Quarter and Year Ended December 31, 2021

January 18, 2022 4:02 PM EST

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  • Fourth Quarter 2021 Revenue: $3.50 billion; up 28%
  • Fourth Quarter 2021 Operating Income: $322.5 million; up 55%
  • Fourth Quarter 2021 EPS: $2.28 vs. $1.44; up 58%
  • Full Year 2021 Revenue: $12.17 billion; up 26%
  • Full Year 2021 Operating Income: $1.05 billion; up 47%
  • Full Year 2021 EPS: $7.14 vs. $4.74; up 51%

LOWELL, Ark.--(BUSINESS WIRE)-- J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced fourth quarter 2021 U.S. GAAP (United States Generally Accepted Accounting Principles) net income of $242.2 million, or diluted earnings per share of $2.28 vs. fourth quarter 2020 net earnings of $154.0 million, or diluted earnings per share of $1.44.

Total operating revenue for the current quarter was $3.50 billion, compared with $2.74 billion for the fourth quarter 2020. All segments contributed to the revenue growth versus the prior year period. Truckload (JBT) and Integrated Capacity Solutions™ (ICS) grew revenue 85% and 26% year over year, respectively, as both segments were able to source capacity for customers by leveraging the talents and skills of our people and our investments in technology across the organization, including the Marketplace for J.B. Hunt 360°®. Intermodal (JBI) revenue grew 26%, driven by a 30% increase in revenue per load, partially offset by a 3% decline in volume. Dedicated Contract Services® (DCS®) revenue grew 25% as a result of a 16% increase in average revenue producing trucks and a 7% increase in fleet productivity versus the prior year period. Final Mile Services® (FMS) revenue increased 4% as strong demand for services in the segment were offset by supply-chain related challenges in most of the primary markets served. Current quarter total operating revenue, excluding fuel surcharges, increased approximately 22% vs. the comparable quarter 2020.

Total freight transactions in the Marketplace for J.B. Hunt 360 increased 27% to $593 million in the fourth quarter 2021 compared to $468 million in the prior year quarter. ICS revenue on the platform increased 11% to $431 million versus the year ago period. JBT and JBI executed approximately $113 million and $48 million, respectively, of third-party dray, independent contractor and power-only capacity through the platform during the quarter.

U.S. GAAP operating income for the current quarter totaled $322.5 million vs. $207.7 million for the fourth quarter 2020. Operating income increased from fourth quarter 2020 primarily from customer rate and cost recovery efforts and further scaling into our technology investments at a consolidated level, in addition to a $5.7 million benefit from the reduction of a contingent liability in FMS. These items were partially offset by network fluidity challenges presented from both rail and customer activity in JBI as well as increases in: frontline employee bonuses; driver wage and recruiting costs; rail and truck purchase transportation expense; non-driver personnel salary, wages and incentive compensation; group medical and casualty insurance expense; and implementation costs for newly awarded business in both DCS and FMS segments.

Net interest expense in the current quarter decreased primarily from lower interest rates from fourth quarter 2020. The fourth quarter effective tax rates for 2021 and 2020 were 22.6% and 22.0%, respectively. The annual effective tax rates for 2021 and 2020 were 23.9% and 24.0%, respectively. We expect our 2022 annual tax rate to be between 24.0% and 25.0%.

Segment Information:

Intermodal (JBI)

  • Fourth Quarter 2021 Segment Revenue: $1.57 billion; up 26%
  • Fourth Quarter 2021 Operating Income: $195.3 million; up 76%

Intermodal volumes declined 3% over the same period in 2020. Eastern network loads increased 1%, while transcontinental loads declined 5% compared to the fourth quarter 2020. While demand for intermodal capacity remains strong, ongoing network fluidity challenges driven by rail restrictions and customer detention of equipment, were even further impacted by weather, derailments and COVID-related labor shortages and disruptions during the quarter. Despite these volume-related challenges, revenue increased 26% for the quarter versus the prior year, driven by a 30% increase in revenue per load resulting from changes in the mix of freight, customer rates, and fuel surcharge revenues. Revenue per load excluding fuel surcharge revenue was up 22% year over year.

Operating income increased 76% in the fourth quarter from higher customer rate and cost recovery efforts compared to the prior year period. Rate and cost recovery efforts were partially offset by higher rail and third-party dray purchased transportation costs, increases in driver and non-driver wages and benefits, higher driver recruiting costs, and activity-based costs incurred to counteract network inefficiencies stemming from rail and customer fluidity challenges. The current period ended with approximately 105,000 units of trailing capacity and approximately 6,190 power units in the dray fleet.

Dedicated Contract Services (DCS)

  • Fourth Quarter 2021 Segment Revenue: $712 million; up 25%
  • Fourth Quarter 2021 Operating Income: $72.6 million; down 6%

DCS revenue increased 25% during the current quarter over the same period 2020. Productivity (revenue per truck per week) increased approximately 7% versus the prior period. Productivity excluding fuel surcharge revenue increased 2% from a year ago primarily from contracted indexed-based price escalators partially offset by lower productivity on start-up accounts and a greater number of open trucks due to the tight labor market and COVID-related labor disruptions. A net additional 1,778 revenue producing trucks were in the fleet by the end of the quarter compared to the prior year period, and a net additional 439 versus the end of the third quarter 2021. Customer retention rates remain above 98%.

Operating income decreased 6% from the prior year quarter. Benefits from higher revenue and increased productivity of assets were more than offset by increases in casualty insurance expense, frontline employee bonuses, group medical benefits, driver wage and recruiting costs, non-driver personnel salary, wages and incentive compensation, and other costs related to the implementation of new, long-term contractual business.

Integrated Capacity Solutions (ICS)

  • Fourth Quarter 2021 Segment Revenue: $739 million; up 26%
  • Fourth Quarter 2021 Operating Income: $21.2 million; up 280%

ICS revenue increased 26% in the current quarter versus the fourth quarter 2020. Revenue growth was primarily driven by a 27% increase in revenue per load resulting from changes in customer freight mix and higher contractual and spot rates in our truckload business as compared to the fourth quarter 2020. Overall segment volumes declined 1% with truckload volumes increasing 3% versus the prior year period. Contractual volumes represented approximately 54% of the total load volume and 43% of the total revenue in the current quarter compared to 51% and 35%, respectively, in fourth quarter 2020. Of the total reported ICS revenue, approximately $431 million was executed through the Marketplace for J.B. Hunt 360 compared to $387 million in fourth quarter 2020.

Operating income increased to $21.2 million compared to $5.6 million in the fourth quarter 2020. Benefits from higher gross margin were partially offset by higher personnel and technology costs as compared to the same period 2020. Gross profit margins increased to 12.2% in the current period versus 10.8% in the prior period. ICS carrier base increased 36% year over year.

Final Mile Services (FMS)

  • Fourth Quarter 2021 Segment Revenue: $222 million; up 4%
  • Fourth Quarter 2021 Operating Income: $7.4 million; up 35%

FMS revenue increased 4% compared to the same period 2020. Stop count within FMS decreased 22% during the current quarter versus a year ago. The addition of multiple customer contracts implemented over the last year were more than offset by the reduction of stops at several customers due to labor shortages and supply chain constraints. Productivity, defined as revenue per stop, increased approximately 33% compared to the prior year period primarily from a shift in the mix of business between asset and asset-light operations.

Operating income, which included a $5.7 million benefit from the reduction of a contingent liability, increased 35% over the prior year quarter. Excluding the benefit, operating income declined 68% versus the prior year period. Higher revenue from multiple new customer contracts was more than offset by significant increases in implementation expenses as a result of those same contracts, along with less revenue at some existing customers due to supply-chain constraints. Higher personnel expense related to salary, wages and incentive compensation were also offsetting items in the quarter.

Truckload (JBT)

  • Fourth Quarter 2021 Segment Revenue: $259 million; up 85%
  • Fourth Quarter 2021 Operating Income: $25.9 million; up 210%

JBT revenue increased 85% from the same period in 2020. Revenue excluding fuel surcharge revenue increased 79%, primarily from a 55% increase in revenue per load excluding fuel surcharge revenue and a 15% increase in load count compared to a year ago. The increase in revenue per load excluding fuel surcharge revenue was driven by a 32% increase in revenue per loaded mile excluding fuel surcharge revenue and a 19% increase in average length of haul. Load count growth and the length of haul increase were primarily related to the continued net trailer additions and expansion of J.B. Hunt 360box® which leverages the J.B. Hunt 360 platform to access drop-trailer capacity for customers across our transportation network. Comparable contractual customer rates were up approximately 27% compared to the same period 2020. The current period ended with 11,172 trailers and 2,235 tractors, compared to 8,567 and 1,769 respectively for the prior year period.

Operating income increased to $25.9 million compared to $8.4 million in the fourth quarter 2020. Benefits from increased load counts and revenue per load were partially offset by increases in purchased transportation expense, higher driver wages and recruiting costs and higher non-driver personnel expense related to salary, wages and incentive compensation. Further investments in both building out our trailer network and technology related to the continued expansion of 360box also partially offset higher revenue.

Cash Flow and Capitalization:

At December 31, 2021, we had total debt outstanding of $1.3 billion outstanding on various debt instruments which is comparable to the total debt levels at December 31, 2020, and September 30, 2021.

Our net capital expenditures for 2021 approximated $877 million vs. $601 million in 2020. At December 31, 2021, we had cash and cash equivalents of $356 million.

In the fourth quarter 2021, we purchased approximately 76,000 shares of our common stock for approximately $15 million. At December 31, 2021, we had approximately $351 million remaining under our share repurchase authorization. Actual shares outstanding at December 31, 2021, approximated 105.1 million.

Conference Call Information:

The Company will hold a conference call today from 4:00–5:00 pm CST to discuss the quarterly earnings. To participate in the call, dial 1-833-360-0810 (domestic) or 470-495-0976 (international) 15 minutes prior to the start of the call and provide the following conference ID: 8876825. A replay of the call will be posted on the investor relations section of our website here later today.

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, 2020. 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 Transport Services, Inc., an S&P 500 company, provides innovative supply chain solutions for a variety of customers throughout North America. Utilizing an integrated, multimodal approach, the company applies technology driven methods to create the best solution for each customer, adding efficiency, flexibility, and value to their operations. J.B. Hunt services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, final mile, and more. J.B. Hunt Transport Services, Inc. stock trades on NASDAQ under the ticker symbol JBHT and is a component of the Dow Jones Transportation Average. J.B. Hunt Transport, Inc. is a wholly owned subsidiary of JBHT. 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 December 31

2021

2020

% Of % Of
Amount Revenue Amount Revenue
 
Operating revenues, excluding fuel surcharge revenues $

3,106,488

$

2,551,777

Fuel surcharge revenues

390,483

185,875

Total operating revenues

3,496,971

100.0

%

2,737,652

100.0

%

 
Operating expenses
Rents and purchased transportation

1,891,298

54.1

%

1,486,341

54.3

%

Salaries, wages and employee benefits

764,484

21.9

%

625,168

22.8

%

Depreciation and amortization

141,254

4.0

%

134,589

4.9

%

Fuel and fuel taxes

151,606

4.3

%

93,551

3.4

%

Operating supplies and expenses

98,035

2.8

%

83,515

3.1

%

General and administrative expenses, net of asset dispositions

52,955

1.6

%

48,431

1.8

%

Insurance and claims

50,261

1.4

%

35,809

1.3

%

Operating taxes and licenses

15,974

0.5

%

13,757

0.5

%

Communication and utilities

8,601

0.2

%

8,800

0.3

%

Total operating expenses

3,174,468

90.8

%

2,529,961

92.4

%

Operating income

322,503

9.2

%

207,691

7.6

%

Net interest expense

9,697

0.3

%

10,344

0.4

%

Earnings before income taxes

312,806

8.9

%

197,347

7.2

%

Income taxes

70,597

2.0

%

43,340

1.6

%

Net earnings $

242,209

6.9

%

$

154,007

5.6

%

Average diluted shares outstanding

106,312

106,738

Diluted earnings per share $

2.28

$

1.44

 
 
J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
 
Twelve Months Ended December 31

2021

2020

% Of % Of
Amount Revenue Amount Revenue
 
Operating revenues, excluding fuel surcharge revenues $

10,915,442

$

8,879,653

Fuel surcharge revenues

1,252,860

756,920

Total operating revenues

12,168,302

100.0

%

9,636,573

100.0

%

 
Operating expenses
Rents and purchased transportation

6,449,068

53.0

%

4,954,123

51.4

%

Salaries, wages and employee benefits

2,761,680

22.7

%

2,347,716

24.4

%

Depreciation and amortization

557,093

4.6

%

527,375

5.5

%

Fuel and fuel taxes

530,642

4.4

%

357,483

3.7

%

Operating supplies and expenses

369,294

3.0

%

334,350

3.5

%

General and administrative expenses, net of asset dispositions

195,616

1.5

%

180,083

1.8

%

Insurance and claims

165,052

1.4

%

134,482

1.4

%

Operating taxes and licenses

59,462

0.5

%

54,331

0.6

%

Communication and utilities

34,865

0.3

%

33,511

0.3

%

Total operating expenses

11,122,772

91.4

%

8,923,454

92.6

%

Operating income

1,045,530

8.6

%

713,119

7.4

%

Net interest expense

45,758

0.4

%

47,094

0.5

%

Earnings before income taxes

999,772

8.2

%

666,025

6.9

%

Income taxes

238,966

1.9

%

159,990

1.6

%

Net earnings $

760,806

6.3

%

$

506,035

5.3

%

Average diluted shares outstanding

106,593

106,766

Diluted earnings per share $

7.14

$

4.74

 
Financial Information By Segment
(in thousands)
(unaudited)
 
 
Three Months Ended December 31

2021

2020

% Of % Of
Amount Total Amount Total
 
Revenue
 
Intermodal $

1,574,174

 

45

%

$

1,249,065

 

46

%

Dedicated

712,419

 

20

%

568,349

 

21

%

Integrated Capacity Solutions

738,906

 

21

%

587,277

 

21

%

Final Mile Services

221,907

 

6

%

213,161

 

8

%

Truckload

259,078

 

8

%

140,384

 

5

%

Subtotal

3,506,484

 

100

%

2,758,236

 

101

%

Intersegment eliminations

(9,513

)

(0

%)

(20,584

)

(1

%)

Consolidated revenue $

3,496,971

 

100

%

$

2,737,652

 

100

%

 
 
Operating income
 
Intermodal $

195,337

 

61

%

$

110,751

 

53

%

Dedicated

72,638

 

23

%

77,564

 

37

%

Integrated Capacity Solutions

21,190

 

6

%

5,575

 

3

%

Final Mile Services

7,442

 

2

%

5,514

 

3

%

Truckload

25,907

 

8

%

8,367

 

4

%

Other (1)

(11

)

0

%

(80

)

0

%

Operating income $

322,503

 

100

%

$

207,691

 

100

%

 
 
 
 
 
Twelve Months Ended December 31

2021

2020

% Of % Of
Amount Total Amount Total
Revenue
 
Intermodal $

5,453,511

 

44

%

$

4,675,074

 

48

%

Dedicated

2,578,322

 

21

%

2,196,200

 

23

%

Integrated Capacity Solutions

2,537,684

 

21

%

1,658,182

 

17

%

Final Mile Services

841,963

 

7

%

688,431

 

7

%

Truckload

795,850

 

7

%

462,720

 

5

%

Subtotal

12,207,330

 

100

%

9,680,607

 

100

%

Intersegment eliminations

(39,028

)

(0

%)

(44,034

)

(0

%)

Consolidated revenue $

12,168,302

 

100

%

$

9,636,573

 

100

%

 
 
Operating income
 
Intermodal $

602,540

 

58

%

$

428,403

 

60

%

Dedicated

304,125

 

29

%

313,987

 

44

%

Integrated Capacity Solutions

46,324

 

4

%

(44,699

)

(6

%)

Final Mile Services

27,909

 

3

%

(945

)

(0

%)

Truckload

64,940

 

6

%

16,574

 

2

%

Other (1)

(308

)

(0

%)

(201

)

(0

%)

Operating income $

1,045,530

 

100

%

$

713,119

 

100

%

 

(1) Includes corporate support activity

 

 
Operating Statistics by Segment
(unaudited)
 
Three Months Ended December 31

2021

2020

 
Intermodal
 
Loads

509,264

 

524,906

 

Average length of haul

1,693

 

1,711

 

Revenue per load $

3,091

 

$

2,380

 

Average tractors during the period *

6,161

 

5,667

 

Tractors (end of period) *

6,194

 

5,663

 

Trailing equipment (end of period)

104,973

 

98,689

 

Average effective trailing equipment usage

102,926

 

97,267

 

 
 
Dedicated
 
Loads

1,053,733

 

949,757

 

Average length of haul

160

 

159

 

Revenue per truck per week** $

4,879

 

$

4,544

 

Average trucks during the period***

11,441

 

9,833

 

Trucks (end of period) ***

11,689

 

9,911

 

Trailing equipment (end of period)

28,822

 

27,290

 

 
 
Integrated Capacity Solutions
 
Loads

364,620

 

369,188

 

Revenue per load $

2,027

 

$

1,591

 

Gross profit margin

12.2

%

10.8

%

Employee count (end of period)

975

 

1,011

 

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

136,400

 

100,200

 

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

431.4

 

$

387.1

 

 
 
Final Mile Services
 
Stops

1,450,208

 

1,849,215

 

Average trucks during the period***

1,565

 

1,537

 

 
 
Truckload
 
Loads

123,782

 

107,253

 

Loaded miles (000)

61,858

 

45,423

 

Nonpaid empty mile percentage

20.1

%

18.4

%

Revenue per tractor per week** $

5,383

 

$

4,410

 

Average tractors during the period *

2,168

 

1,772

 

 
Tractors (end of period)
Company-owned

734

 

798

 

Independent contractor

1,501

 

971

 

Total tractors

2,235

 

1,769

 

 
Trailers (end of period)

11,172

 

8,567

 

 
 
 
 
* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor, and customer-owned trucks
 
Operating Statistics by Segment
(unaudited)
 
Twelve Months Ended December 31

2021

2020

 
Intermodal
 
Loads

1,984,834

 

2,019,391

 

Average length of haul

1,684

 

1,690

 

Revenue per load $

2,748

 

$

2,315

 

Average tractors during the period *

5,904

 

5,530

 

Tractors (end of period) *

6,194

 

5,663

 

Trailing equipment (end of period)

104,973

 

98,689

 

Average effective trailing equipment usage

98,798

 

90,514

 

 
 
Dedicated
 
Loads

4,020,308

 

3,676,212

 

Average length of haul

161

 

160

 

Revenue per truck per week** $

4,719

 

$

4,373

 

Average trucks during the period***

10,628

 

9,743

 

Trucks (end of period) ***

11,689

 

9,911

 

Trailing equipment (end of period)

28,822

 

27,290

 

 
 
Integrated Capacity Solutions
 
Loads

1,326,979

 

1,265,897

 

Revenue per load $

1,912

 

$

1,310

 

Gross profit margin

11.8

%

9.9

%

Employee count (end of period)

975

 

1,011

 

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

136,400

 

100,200

 

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

1,583.8

 

$

1,142.2

 

 
 
Final Mile Services
 
Stops

6,413,680

 

5,771,533

 

Average trucks during the period***

1,520

 

1,405

 

 
 
Truckload
 
Loads

445,812

 

406,550

 

Loaded miles (000)

215,940

 

171,141

 

Nonpaid empty mile percentage

19.4

%

18.8

%

Revenue per tractor per week** $

4,791

 

$

3,978

 

Average tractors during the period*

1,899

 

1,837

 

 
Tractors (end of period)
Company-owned

734

 

798

 

Independent contractor

1,501

 

971

 

Total tractors

2,235

 

1,769

 

 
Trailers (end of period)

11,172

 

8,567

 

 
 
 
 
* 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)
 
December 31, 2021 December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents $

355,549

$

313,302

Accounts Receivable

1,503,379

1,124,403

Prepaid expenses and other

444,915

404,412

Total current assets

2,303,843

1,842,117

Property and equipment

6,680,316

5,908,710

Less accumulated depreciation

2,612,661

2,219,816

Net property and equipment

4,067,655

3,688,894

Other assets, net

419,611

397,337

$

6,791,109

$

5,928,348

 
 
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $

355,972

$

-

Trade accounts payable

769,496

587,510

Claims accruals

307,210

276,056

Accrued payroll

190,950

130,943

Other accrued expenses

102,732

90,294

Total current liabilities

1,726,360

1,084,803

 
Long-term debt

945,257

1,305,424

Other long-term liabilities

256,234

245,961

Deferred income taxes

745,442

692,022

Stockholders' equity

3,117,816

2,600,138

$

6,791,109

$

5,928,348

 
Supplemental Data
(unaudited)

December 31,
2021

 

 

December 31,
2020

 
Actual shares outstanding at end of period (000)

105,094

105,654

 
Book value per actual share outstanding at end of period $

29.67

$

24.61

 
 
 
Twelve Months Ended December 31

2021

 

 

 

2020

 
Net cash provided by operating activities (000) $

1,223,899

$

1,122,859

 
Net capital expenditures (000) $

877,018

$

600,769

 

Brad Delco
Vice President – Finance & Investor Relations
(479) 820-2723 

Source: J.B. Hunt Transport Services, Inc.



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