Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries 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 By: J.B. Hunt Transport Services, Inc. via Business Wire January 18, 2022 at 16:02 PM EST 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% 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20220118006185/en/Contacts Brad Delco Vice President – Finance & Investor Relations (479) 820-2723 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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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 By: J.B. Hunt Transport Services, Inc. via Business Wire January 18, 2022 at 16:02 PM EST 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% 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20220118006185/en/Contacts Brad Delco Vice President – Finance & Investor Relations (479) 820-2723
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%
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 View source version on businesswire.com: https://www.businesswire.com/news/home/20220118006185/en/