• First Quarter 2022 Revenue: $3.49 billion; up 33%
  • First Quarter 2022 Operating Income: $334.3 million; up 61%
  • First Quarter 2022 EPS: $2.29 vs. $1.37

LOWELL, Ark.–(BUSINESS WIRE)–J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced first quarter 2022 U.S. GAAP (United States Generally Accepted Accounting Principles) net earnings of $243.3 million, or diluted earnings per share of $2.29 versus first quarter 2021 net earnings of $146.6 million, or $1.37 per diluted share.

Total operating revenue for the current quarter was $3.49 billion compared with $2.62 billion for the first quarter 2021. All segments contributed to the year-over-year increase in revenue. Truckload (JBT) and Integrated Capacity Solutions™ (ICS) grew revenue 77% and 29% 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 36%, driven by a 28% increase in revenue per load and complimented with a 7% increase in load volume. Dedicated Contract Services® (DCS®) revenue grew 28% as a result of a 20% increase in average revenue producing trucks and a 6% increase in fleet productivity versus the prior year period. Final Mile Services® (FMS) revenue increased 8% 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 surcharge revenue, increased approximately 27% versus the first quarter 2021.

Total freight transactions in the Marketplace for J.B. Hunt 360 increased 36% to $600 million in the first quarter 2022 compared to $443 million in the prior year quarter. ICS revenue on the platform increased 20% to $430 million versus a year ago. JBT and JBI executed approximately $116 million and $54 million, an increase of 125% and 68% respectively, of their third-party dray, independent contractor and power-only capacity through the platform during the quarter.

Operating income for the current quarter increased 61% to $334.3 million versus $207.7 million for the first quarter 2021. Operating income increased from first quarter 2021 primarily due to higher volumes, customer rate and cost recovery efforts, and further scaling of investments in our people and technology, in addition to an approximately $18 million increase in gains on the sale of equipment year-over-year. These items were partially offset by increases in rail and truck purchased transportation costs, professional driver and non-driver wages and benefits, hiring and recruiting expense, and implementation costs for newly awarded business in both DCS and FMS segments.

Net interest expense for the current quarter increased approximately 5% from first quarter 2021 due to higher effective interest rates on our debt.

The effective income tax rate decreased to 24.4% in the current quarter compared to 25.1% in the first quarter 2021. We continue to expect our 2022 annual tax rate to be between 24.0% and 25.0%.

Segment Information:

Intermodal (JBI)

  • First Quarter 2022 Segment Revenue: $1.60 billion; up 36%
  • First Quarter 2022 Operating Income: $201.0 million; up 87%

Intermodal volumes increased 7% over the same period in 2021. Eastern network loads increased 10%, while transcontinental loads increased 5%. Volumes early in the quarter were negatively impacted by network fluidity issues attributable to labor challenges within the activities of our rail providers and customers, as well as our internal operations largely as a result of COVID-related disruptions. As the quarter progressed, volume levels strengthened as customer unloading activity improved, although rail network velocity continued to govern our ability to capitalize on even greater intermodal demand. Segment gross revenue increased 36% from the prior year period, reflecting the 7% increase in volume and a 28% increase in gross 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 21% year-over-year.

Operating income increased 87% in the first quarter from higher customer rate and cost recovery efforts and approximately $14 million of increased gains on the sale of equipment 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 professional driver and non-driver wages and benefits, higher driver-recruiting costs, as well as costs stemming from inefficiencies in the rail and port networks. During the period, we successfully onboarded approximately 4,350 new pieces of trailing equipment. We ended the quarter with approximately 109,300 containers and 6,340 power units in the dray fleet.

Dedicated Contract Services (DCS)

  • First Quarter 2022 Segment Revenue: $741 million; up 28%
  • First Quarter 2022 Operating Income: $77.1 million; up 4%

DCS revenue increased 28% during the current quarter over the same period 2021. Productivity (revenue per truck per week) increased approximately 6% versus the prior period. Productivity excluding fuel surcharge revenue was flat from a year ago driven by increases in contracted indexed-based price escalators, offset by lower productivity of equipment on start-up accounts, COVID-related labor disruptions early in the quarter, and a greater number of open trucks as a result of a tight labor market. A net additional 2,221 revenue producing trucks were in the fleet by the end of the quarter compared to the prior year period, and a net additional 483 versus the end of the fourth quarter 2021. Customer retention rates remain above 98%.

Operating income increased 4% from the prior year quarter. Benefits from higher revenue and contracted indexed-based price escalators were mostly offset by increases in professional driver and non-driver wages and benefits, higher driver-recruiting costs, productivity headwinds due to COVID-related labor disruptions, and other costs related to the implementation of new, long-term contractual business.

Integrated Capacity Solutions (ICS)

  • First Quarter 2022 Segment Revenue: $675 million; up 29%
  • First Quarter 2022 Operating Income: $25.0 million; up 243%

ICS revenue increased 29% in the current quarter versus the first quarter 2021. Overall segment volumes increased 12% with truckload volumes increasing 15% versus the prior year period. Revenue per load increased 14% compared to the first quarter 2021 due to higher contractual and spot rates in our truckload business as well as changes in customer freight mix. Contractual volumes represented approximately 53% of the total load volume and 43% of the total revenue in the current quarter compared to 49% and 35%, respectively, in first quarter 2021. Of the total reported ICS revenue, approximately $430 million was executed through the Marketplace for J.B. Hunt 360 compared to $359 million in first quarter 2021.

Operating income increased 243% to $25.0 million compared to $7.3 million in the first quarter 2021. Benefits from higher revenue and gross margin were partially offset by higher personnel salary and wages, and further investments into platform infrastructure and development. Gross profit margins increased to 13.0% in the current period versus 12.4% in the prior period. ICS carrier base increased 36% year-over-year.

Truck (JBT)

  • First Quarter 2022 Segment Revenue: $264 million; up 77%
  • First Quarter 2022 Operating Income: $31.5 million; up 210%

JBT revenue increased 77% as compared to the same period in the previous year. Revenue excluding fuel surcharge revenue increased 72% primarily due to increased load volume and higher revenue per load excluding fuel surcharge revenue. Volume for JBT was up 17% year-over-year as total trailer count increased by approximately 3,000 units, or 36% versus the prior year period. Trailer turns in the quarter were down 13% from the prior period due to the onboarding of new trailers, freight mix and customer detention of equipment. Revenue per load excluding fuel surcharge revenue was up 47% on a 10% increase in length of haul. Both mix and same-store rate increases contributed to the increase in revenue quality.

JBT operating income increased 210% to $31.5 million versus $10.2 million in the first quarter 2021. JBT continues to leverage the J.B. Hunt 360 platform to grow power capacity and capability for the J.B. Hunt 360box® service offering. Benefits from higher volume and revenue quality led to an improvement in contribution margins across the segment. These benefits were partially offset by higher purchased transportation expense, trailer parts and maintenance costs, and continued technology investments to build out 360box.

Final Mile Services (FMS)

  • First Quarter 2022 Segment Revenue: $218 million; up 8%
  • First Quarter 2022 Operating Income/(Loss): $(0.2) million; compared to $8.5 million in Q1’21

FMS revenue increased 8% compared to the same period 2021 driven by the addition of multiple customer contracts implemented over the last year and complemented by the previously announced acquisition of Zenith Freight Lines that closed at the end of February. Revenue growth in the quarter was partially offset by supply-chain related constraints for goods in the primary markets served, in addition to internal efforts to improve revenue quality across certain accounts. FMS revenue increased 3% over the prior year period excluding the March acquisition, which contributed approximately $10 million to segment revenue in the quarter.

Operating income decreased to an operating loss of $0.2 million from $8.5 million of operating income in the prior year quarter. Higher revenue was more than offset by increases in professional driver and non-driver wages and benefits, implementation costs for newly awarded business, third-party contract carrier expense, driver-recruiting costs, and professional fees related to the Zenith acquisition.

Cash Flow and Capitalization:

At March 31, 2022, we had a total of $1.30 billion outstanding on various debt instruments which is comparable to the total debt levels at December 31, 2021.

Our net capital expenditures for the first quarter 2022 approximated $289 million compared to $86 million for the first quarter 2021. At March 31, 2022, we had cash and cash equivalents of $145 million.

In the first quarter 2022, we purchased approximately 382,000 shares of common stock for approximately $75 million. At March 31, 2022, we had approximately $276 million remaining under our share repurchase authorization. Actual shares outstanding at March 31, 2022, approximated 104.8 million.

Conference Call Information:

The Company will hold a conference call today from 4:00–5:00 pm CDT to discuss the quarterly earnings. Investors will have the opportunity to listen to the conference call live over the internet by going to investors.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, 2021. 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 March

 

 

2022

 

2021

 

 

 

 

% Of

 

 

 

% Of

 

 

Amount

 

Revenue

 

Amount

 

Revenue

 
Operating revenues, excluding fuel surcharge revenues

$

3,042,217

$

2,388,034

Fuel surcharge revenues

446,371

230,115

Total operating revenues

3,488,588

100.0%

2,618,149

100.0%

 
Operating expenses
Rents and purchased transportation

1,837,340

52.7%

1,352,301

51.7%

Salaries, wages and employee benefits

763,591

21.9%

620,032

23.7%

Fuel and fuel taxes

189,466

5.4%

113,040

4.3%

Depreciation and amortization

148,763

4.3%

137,545

5.3%

Operating supplies and expenses

106,939

3.1%

81,698

3.1%

General and administrative expenses, net of asset dispositions

37,447

0.9%

44,891

1.7%

Insurance and claims

46,131

1.3%

38,030

1.5%

Operating taxes and licenses

15,749

0.5%

13,814

0.5%

Communication and utilities

8,868

0.3%

9,146

0.3%

Total operating expenses

3,154,294

90.4%

2,410,497

92.1%

Operating income

334,294

9.6%

207,652

7.9%

Net interest expense

12,586

0.4%

12,024

0.4%

Earnings before income taxes

321,708

9.2%

195,628

7.5%

Income taxes

78,383

2.2%

49,022

1.9%

Net earnings

$

243,325

7.0%

$

146,606

5.6%

Average diluted shares outstanding

106,075

106,816

Diluted earnings per share

$

2.29

$

1.37

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

2022

2021

% Of % Of
Amount Total Amount Total
 
Revenue
 
Intermodal $

1,603,385

 

46

%

$

1,177,131

 

45

%

Dedicated

741,306

 

21

%

579,958

 

22

%

Integrated Capacity Solutions

675,391

 

19

%

524,946

 

20

%

Truckload

264,343

 

8

%

149,531

 

6

%

Final Mile Services

218,454

 

6

%

201,883

 

8

%

Subtotal

3,502,879

 

100

%

2,633,449

 

101

%

Intersegment eliminations

(14,291

)

(0

%)

(15,300

)

(1

%)

Consolidated revenue $

3,488,588

 

100

%

$

2,618,149

 

100

%

 
 
Operating income
 
Intermodal $

200,972

 

60

%

$

107,468

 

52

%

Dedicated

77,104

 

23

%

74,339

 

36

%

Integrated Capacity Solutions

24,963

 

8

%

7,269

 

3

%

Truckload

31,490

 

9

%

10,173

 

5

%

Final Mile Services

(180

)

(0

%)

8,498

 

4

%

Other (1)

(55

)

(0

%)

(95

)

(0

%)

Operating income $

334,294

 

100

%

$

207,652

 

100

%

(1) Includes corporate support activity

Operating Statistics by Segment

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended March

 

 

2022

 

 

 

 

2021

 

 
Intermodal
 
Loads

510,736

 

478,285

 

Average length of haul

1,671

 

1,687

 

Revenue per load $

3,139

 

$

2,461

 

Average tractors during the period *

6,262

 

5,718

 

Tractors (end of period) *

6,343

 

5,744

 

Trailing equipment (end of period)

109,329

 

99,043

 

Average effective trailing equipment usage

105,884

 

94,603

 

 
 
Dedicated
 
Loads

1,041,842

 

942,220

 

Average length of haul

164

 

162

 

Revenue per truck per week** $

4,846

 

$

4,576

 

Average trucks during the period***

11,946

 

9,961

 

Trucks (end of period) ***

12,172

 

9,951

 

Trailing equipment (end of period)

30,343

 

27,283

 

 
 
Integrated Capacity Solutions
 
Loads

328,712

 

292,365

 

Revenue per load $

2,055

 

$

1,796

 

Gross profit margin

13.0

%

12.4

%

Employee count (end of period)

1,027

 

936

 

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

147,000

 

107,700

 

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

430.4

 

$

359.0

 

 
 
Truckload
 
Loads

120,527

 

103,062

 

Average trailers during the period

11,456

 

8,571

 

Revenue per load $

2,193

 

$

1,451

 

Average length of haul

492

 

446

 

 
Tractors (end of period)
Company-owned

709

 

798

 

Independent contractor

1,527

 

918

 

Total tractors

2,236

 

1,716

 

 
Trailers (end of period)

11,655

 

8,571

 

 
 
Final Mile Services
 
Stops

1,344,829

 

1,676,025

 

Average trucks during the period***

1,556

 

1,514

 

* 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)

 

 

 

 

 

 

 

 

 

 

 

March 31, 2022

 

 

 

December 31, 2021

 

 

ASSETS
Current assets:
Cash and cash equivalents $

144,529

$

355,549

Accounts receivable, net

1,745,647

1,506,619

Prepaid expenses and other

364,977

451,201

Total current assets

2,255,153

2,313,369

Property and equipment

6,950,327

6,680,316

Less accumulated depreciation

2,716,061

2,612,661

Net property and equipment

4,234,266

4,067,655

Other assets, net

542,522

413,324

$

7,031,941

$

6,794,348

 
 
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt $

351,214

$

355,972

Trade accounts payable

854,879

772,736

Claims accruals

309,949

307,210

Accrued payroll and payroll taxes

143,181

190,950

Other accrued expenses

125,507

102,732

Total current liabilities

1,784,730

1,729,600

 
Long-term debt

945,628

945,257

Other long-term liabilities

294,314

256,233

Deferred income taxes

753,727

745,442

Stockholders’ equity

3,253,542

3,117,816

$

7,031,941

$

6,794,348

 
 

Supplemental Data

(unaudited)

 

March 31, 2022

December 31, 2021

 
Actual shares outstanding at end of period (000)

104,783

105,094

 
Book value per actual share outstanding at end of period $

31.05

$

29.67

 
 

Three Months Ended March

2022

2021

 
Net cash provided by operating activities (000) $

291,785

$

364,658

 
Net capital expenditures (000) $

289,126

$

85,854

 

 

Contacts

Brad Delco

Senior Vice President – Finance

(479) 820-2723

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