8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.   20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 19, 2009

J.B. HUNT TRANSPORT SERVICES, INC.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Arkansas	0-11757	71-0335111
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation or organization)		Identification No.)
615 J.B. Hunt Corporate Drive
Lowell, Arkansas	72745	(479) 820-0000
(Address of principal executive offices)	(Zip Code)	(Registrant’s telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
	On October 19, 2009, we issued a news release announcing our revenues and earnings for the third quarter ended September 30, 2009. A copy of the news release is attached as an exhibit to this Form 8-K.
ITEM 9.01.	FINANCIAL STATEMENTS AND EXHIBITS
	Exhibit 99.1	News release issued by J.B. Hunt Transport Services, Inc. on October 19, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, in the city of Lowell, Arkansas, on the 20th day of July 2009.

J.B. HUNT TRANSPORT SERVICES, INC.
BY:	/s/ Kirk Thompson
	Kirk Thompson
	President and Chief Executive Officer
BY:	/s/ David G. Mee
	David G. Mee
	Executive Vice President, Finance and
	Administration,
	Chief Financial Officer
BY:	/s/ Donald G. Cope
	Donald G. Cope
	Senior Vice President, Controller,
	Chief Accounting Officer

2

EX-99.1

Exhibit 99.1

J.B. Hunt Transport Services, Inc.	Contact:	Kirk Thompson
615 J.B. Hunt Corporate Drive		President and
Lowell, Arkansas 72745		Chief Executive Officer
(NASDAQ:  JBHT)		(479) 820-8111

FOR IMMEDIATE RELEASE

J. B. HUNT TRANSPORT SERVICES, INC. REPORTS REVENUES AND EARNINGS

FOR THE THIRD QUARTER 2009

·	Third Quarter 2009 Revenue:	$834 million; down 16%
·	Third Quarter 2009 Operating Income:	$71 million; down 33%
·	Third Quarter 2009 EPS:	31 cents vs. 47 cents

LOWELL, ARKANSAS, October 19, 2009 - J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2009 net earnings of $40.0 million, or diluted earnings per share of 31 cents vs. 2008 third quarter earnings of $60.3 million, or 47 cents per diluted share.

Total operating revenue for the current quarter was $834 million, a 16% decrease from the $996 million for the third quarter 2008.  The decrease in operating revenue was primarily attributable to lower fuel surcharge revenues, which reflect significantly lower fuel costs in the current quarter.  Declines in intermodal and truckload pricing also contributed to the lower revenue.  Current quarter operating revenue, excluding fuel surcharges, decreased 4% from the third quarter 2008.

Operating income for the current quarter declined to $71 million vs. $106 million in the third quarter 2008.  Materially lower freight rates affected operating profits in our Intermodal, Integrated Capacity Solutions and Truck segments.  While we were successful at lowering costs in most categories, the reduced expenses did not offset the significant drop in rates.  Net interest expense in the current quarter was lower than the previous year, while the effective income tax rate was higher in the third quarter 2009.

“The freight recession that began in the second half of 2006 continued into its third year.  Our diversified transportation platform has allowed us to weather the storm in relatively strong fashion.  We continue to generate growth in our Intermodal (JBI) and Integrated Capacity Solutions (ICS) segments.  Additionally, our Dedicated Contract Services (DCS) segment has successfully transitioned further away from the generic dedicated business to more customized solutions and is poised to re-establish growth in the near future.  DCS has been able to maintain a fairly consistent margin in the 10% range, which we believe is a remarkable achievement in the current environment.  And despite the biggest decrease in freight rates in history, our Truck (JBT) segment approached break-even profitability in the current quarter and we believe will continue to edge toward recovery.  We have noted some recent signs of firming demand, however, the freight economy remains weak and we are not anticipating a rapid improvement.  Consequently, until freight rates start to return to a reasonable level, margins are unlikely to improve dramatically.

“While current quarter volumes did show seasonal improvements across our four business segments, pricing continues to be challenging following the implementation of various bids and proposals from customers submitted earlier in the year in both the Intermodal and Truck segments.  We are not pleased with the resulting pricing in these two segments.  The elimination of reasonable pricing in the transportation and logistics business could result in the inability of transportation providers to respond to a sharp pick-up in demand likely leading to service disruptions, significant price increases and more adequate returns.

“In the meantime, we are proud of our employees who have shown great ingenuity and experienced substantial personal sacrifice to keep costs as low as possible during these recessionary economic times,” said Kirk Thompson, JBHT President and CEO.

Segment Information:

Intermodal (JBI)

·	Third Quarter 2009 Segment Revenue:	$456 million; down 14%
·	Third Quarter 2009 Operating Income:	$50 million; down 33%

JBI continued to gain market share and make important progress in strengthening our position in the market place. Overall load volume grew at 9% during the current quarter, over the comparable period of 2008, compared to the 5% growth in the first quarter and 8% growth in the second quarter 2009 vs. the same periods in 2008.  Eastern volume growth slowed during the current quarter as customers had ample truck capacity at substantially lower prices than a year ago, combined with fuel prices that were also 40% lower than a year ago.   Still, our eastern volumes increased by 12% during the current quarter, while our transcontinental volume continued to rebound with 7% growth over the same quarter a year ago.  Revenue declined despite the increase in volume as a result of three factors: an extremely competitive bid season, a 1% decline in the average length-of-haul from the comparable period and fuel surcharge revenue that was down more than $70 million from a year ago.

Our bid activity during this unique time in the freight economy was particularly challenging as we attempted to balance short term market realities against long term strategic objectives.  We believe, as our rail partners continue to make multi-year investments to improve service and network efficiency and as shippers remain under economic and environmental pressure to find sustainable alternatives to traditional trucking, the long term outlook for our intermodal business is very attractive.  As a result, it is important for us to continue to make strategic investments even in the midst of these harsh market conditions.

Successful cost reduction efforts continued, with a strong focus on filling empty miles and improving driver productivity.   These efforts increased operating income 9% and our operating ratio improved to 89.1% in the current quarter from the second quarter 2009, excluding the $6.6 million second quarter charge to adjust the value of certain tractors held for sale.  Both the tractor and container fleets continue to be updated with newer model equipment.  The tractor fleet consists of more than 2,200 company owned tractors with an average age of less than 3 years.  Our relatively new dray fleet will meet or exceed currently proposed state and federal government regulations that will require certain levels of fuel economy and emission levels.

Dedicated Contract Services (DCS)

·	Third Quarter 2009 Segment Revenue:	$197 million; down 19%
·	Third Quarter 2009 Operating Income:	$19 million; down 30%

DCS continues to focus marketing efforts on services that offer more sustainable margins and attractive long-term growth opportunities.  In recent months, DCS has experienced growth in these newer lines of business, both in terms of record amounts of business sold and our pipeline of bid activity.   Consistent with our focus on more specialized services, we have continued to reduce our exposure to the capacity-oriented model, which we believe is more susceptible to irrational competition and harsh cyclicality.

The average truck count at our base business accounts (locations that commenced operations prior to the current calendar year) declined by approximately 19% to 3,732 in the current quarter compared to the same quarter 2008.  Total revenue declined 32%, while revenue, excluding fuel surcharge, declined 22%.  The majority of these decreases related to continued proactive reductions in existing fleets as adjustments have been made to match lower business demand levels.  In addition, we have seen a 4% decrease in the productivity of trucks at our base business accounts.  We define productivity as revenue per truck, excluding fuel surcharge.  This decrease in productivity also relates to lower business demand levels experienced at this point of the economic recession.

The operating income at our base business accounts declined 27% during the current quarter.  However, these accounts operated at an approximate 88% operating ratio vs. an 89% operating ratio in the third quarter 2008.  Though we cannot predict the speed or pace of an economic recovery, we have seen the

rate of truck reductions at our base business accounts slow in the current quarter compared to the first and second quarters 2009.

We have had significant new business development in 2009, as mentioned in our second quarter release.  As all new development accounts this year are incremental vs. the same quarter last year, we compare the performance of these accounts to the second quarter 2009.  Our new development truck count increased in the current quarter by 437 trucks, bringing the total current quarter average count to 631 for new development.  These accounts recognized a 75% increase in profit from the second quarter 2009, despite incurring approximately $2.7 million of new contract start-ups and related implementation expenses.  The main reason for the improvement in new development accounts relates to the 484 trucks that have completed the early implementation phase and are moving towards operating at acceptable and forecasted margins.

As of the end of the current quarter, we had on-boarded approximately 70% of the incremental delivery contracts we first mentioned in second quarter 2009 earnings release.

Truck (JBT)

·	Third Quarter 2009 Segment Revenue:	$119 million; down 30%
·	Third Quarter 2009 Operating Loss:	($0.4) million; down 117%

JBT made significant strides in the current quarter, overcoming sequential quarterly losses of $5.8 million and $4.0 million in the first and second quarters of 2009.  Of the $10.3 million total loss recorded through the current three quarters, $9.1 million occurred in the first four months of the year.  Cost control measures implemented over the last several months, improvements in quality of revenue, and refining our network balance have resulted in near-breakeven operating results for the current quarter despite a miserable pricing environment.  Demand improved in August and September over the second quarter 2009 and capacity tightened in some regions.  Improvement in monthly operating income has been consistent and in line with internal expectations.

We continue to adjust our fleet size to match customer demand and market conditions.  We refined our network to achieve greater utilization and efficiency, essential as market prices declined sharply.  Utilization, as measured by miles per truck per day, increased 6% during the current quarter compared to the same period last year.  JBT also intensified its focus on improving fuel mileage.  Focusing on unnecessary idle time and other fuel strategies resulted in an improvement in fuel economy of 5%, saving 470,000 gallons during the current quarter.  JBT was able to reduce driver recruiting expense as fleet size declined and turnover improved.  We believe these cost saving strategies are sustainable, regardless of economic conditions.

JBT’s revenue for the current quarter declined 30%, compared with the third quarter 2008.  Excluding fuel surcharge revenue, JBT revenue declined 21%.  Overall rate per loaded mile, excluding fuel surcharges, decreased sharply compared to the third quarter 2008.  Average length-of-haul increased by 4.9%, but spot rate per mile, excluding fuel surcharges, declined by 18.7%.  Meanwhile, rates from consistent shippers declined $0.09 per loaded mile, or 5.1%, excluding fuel surcharges.

At the end of the current quarter, our truck count was 3,227 compared to 3,309 at the end of the same period in 2008.  JBT’s tractor capacity makes it one of the country’s larger for-hire carriers and underpins the Company’s full-service, multi-modal capacity offering.

Integrated Capacity Solutions (ICS)

·	Third Quarter 2009 Segment Revenue:	$68 million; up 16%
·	Third Quarter 2009 Operating Income:	$3 million; down 1%

ICS continued to grow our customer base, load volumes and employees during the third quarter 2009, compared to third quarter 2008.  Total loads increased 76% on an 80% increase in our customer base and employee count increased 50%.  While we experienced sharply lower revenue per load, due to significant rate pressures, lower fuel surcharge revenue per load and a change in the types of freight hauled, our operating income was relatively flat with the third quarter 2008.  Despite this decrease in our revenue per load, our gross profit (gross revenue less purchased transportation expense) increased 19% to $11 million as gross profit margin increased to 16.5% in the current quarter from 16% in the third quarter 2008.

We believe the margins experienced during the previous three quarters were a reflection of the severe over-capacity of trucks in the marketplace.  While truck capacity is still plentiful, we have seen a slight tightening in the third quarter.

Cash Flow and Capitalization:

At September 30, 2009, we had total debt outstanding of $626 million, compared with $634 million at December 31, 2008 and $692 million at September 30, 2008.

Our net capital expenditures for the nine months ended September 30, 2009 approximated $209 million, compared with $122 million for the same period 2008.  The increase in current year net capital expenditures was primarily due to the acquisition of new Intermodal trailing equipment and capital related to new DCS business investments.  At September 30, 2009, we had cash and cash equivalents of $4.7 million.

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, 2008. 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 related information will be available immediately to interested parties at our web site, www.jbhunt.com.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

	Three Months Ended September 30
	2009					2008
				% Of				% Of
	Amount			Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	740,697				$	770,656
Fuel surcharge revenues	93,052					225,778
Total operating revenues	833,749			100.0	%	996,434		100.0	%
Operating expenses
Rents and purchased transportation	365,057			43.8	%	400,641		40.2	%
Salaries, wages and employee benefits	203,446			24.4	%	217,194		21.8	%
Fuel and fuel taxes	72,510			8.7	%	143,028		14.4	%
Depreciation and amortization	47,098			5.6	%	50,666		5.1	%
Operating supplies and expenses	40,398			4.8	%	41,924		4.2	%
Insurance and claims	12,316			1.5	%	13,860		1.4	%
Operating taxes and licenses	6,984			0.8	%	7,985		0.8	%
General and administrative expenses, net of gains	10,232			1.2	%	10,214		1.0	%
Communication and utilities	4,754			0.6	%	4,656		0.5	%
Total operating expenses	762,795			91.5	%	890,168		89.3	%
Operating income	70,954			8.5	%	106,266		10.7	%
Net interest expense	6,308			0.8	%	9,480		1.0	%
Equity in loss of associated companies	(229		)	(0.0	)%	247		0.0	%
Earnings before income taxes	64,875			7.8	%	96,539		9.7	%
Income taxes	24,912			3.0	%	36,239		3.6	%
Net earnings	$	39,963		4.8	%	$	60,300	6.1	%
Average diluted shares outstanding	129,819					129,042
Diluted earnings per share	$	0.31				$	0.47

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

	Nine Months Ended September 30
	2009				2008
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	2,107,337			$	2,258,130
Fuel surcharge revenues	219,032				594,026
Total operating revenues	2,326,369		100.0	%	2,852,156		100.0	%
Operating expenses
Rents and purchased transportation	1,001,048		43.0	%	1,108,749		38.9	%
Salaries, wages and employee benefits	588,725		25.3	%	651,790		22.9	%
Fuel and fuel taxes	194,452		8.4	%	434,667		15.2	%
Depreciation and amortization	141,555		6.1	%	151,934		5.3	%
Operating supplies and expenses	114,690		4.9	%	119,686		4.2	%
Insurance and claims	38,024		1.6	%	45,924		1.6	%
Operating taxes and licenses	20,901		0.9	%	24,158		0.8	%
General and administrative expenses, net of gains	38,082		1.6	%	28,328		1.0	%
Communication and utilities	13,857		0.6	%	14,553		0.5	%
Total operating expenses	2,151,334		92.5	%	2,579,789		90.5	%
Operating income	175,035		7.5	%	272,367		9.5	%
Net interest expense	20,569		0.9	%	31,053		1.1	%
Equity in loss of associated companies	619		0.0	%	2,125		0.1	%
Earnings before income taxes	153,847		6.6	%	239,189		8.4	%
Income taxes	59,077		2.5	%	91,872		3.2	%
Net earnings	$	94,770	4.1	%	$	147,317	5.2	%
Average diluted shares outstanding	129,251				128,480
Diluted earnings per share	$	0.73			$	1.15

Financial Information By Segment

(in thousands)

(unaudited)

	Three Months Ended September 30
	2009					2008
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	455,955		55	%	$	531,502		53	%
Dedicated	196,785			24	%	243,887			25	%
Truck	119,199			14	%	170,641			17	%
Integrated Capacity Solutions	67,653			8	%	58,532			6	%
Subtotal	839,592			101	%	1,004,562			101	%
Intersegment eliminations	(5,843		)	(1	)%	(8,128		)	(1	)%
Consolidated revenue	$	833,749		100	%	$	996,434		100	%
Operating income
Intermodal	$	49,577		70	%	$	73,971		70	%
Dedicated	18,874			27	%	26,843			25	%
Truck	(421		)	(1	)%	2,451			2	%
Integrated Capacity Solutions	3,039			4	%	3,068			3	%
Other (1)	(115		)	(0	)%	(67		)	(0	)%
Operating income	$	70,954		100	%	$	106,266		100	%

	Nine Months Ended September 30
	2009					2008
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	1,272,393		55	%	$	1,464,140		52	%
Dedicated	550,443			24	%	715,513			25	%
Truck	328,826			14	%	547,467			19	%
Integrated Capacity Solutions	192,236			8	%	149,148			5	%
Subtotal	2,343,898			101	%	2,876,268			101	%
Intersegment eliminations	(17,529		)	(1	)%	(24,112		)	(1	)%
Consolidated revenue	$	2,326,369		100	%	$	2,852,156		100	%
Operating income
Intermodal	$	129,678		74	%	$	191,965		70	%
Dedicated	44,305			25	%	67,327			25	%
Truck	(10,259		)	(6	)%	5,791			2	%
Integrated Capacity Solutions	11,381			7	%	7,309			3	%
Other (1)	(70		)	(0	)%	(25		)	(0	)%
Operating income	$	175,035		100	%	$	272,367		100	%

(1) Includes corporate support activity

Operating Statistics by Segment

(unaudited)

	Three Months Ended September 30
	2009			2008
Intermodal
Loads	239,270			220,352
Average Length of haul	1,795			1,817
Revenue per load	$	1,906		$	2,412
Average tractors during the period *	2,254			2,097
Tractors (end of period)
Company-owned	2,289			2,101
Independent contractor	4			5
Total tractors	2,293			2,106
Containers (end of period)	40,432			36,985
Average effective trailing equipment usage	39,816			36,286
Dedicated
Loads	313,743			335,854
Average length of haul	204			227
Revenue per truck per week**	$	3,476		$	4,070
Average trucks during the period***	4,363			4,631
Trucks (end of period)
Company-owned	3,992			4,445
Independent contractor	35			67
Customer-owned (Dedicated operated)	358			102
Total trucks	4,385			4,614
Trailing equipment (end of period)	9,554			8,039
Average effective trailing equipment usage	11,864			12,711
Truck
Loads	134,191			149,885
Average Length of haul	492			454
Loaded miles (000)	59,317			68,240
Total miles (000)	68,186			78,325
Average nonpaid empty miles per load	72.9			68.1
Revenue per tractor per week**	$	3,209		$	3,678
Average tractors during the period *	2,885			3,588
Tractors (end of period)
Company-owned	2,018			2,666
Independent contractor	1,209			643
Total tractors	3,227			3,309
Trailers (end of period)	12,485			16,382
Average effective trailing equipment usage	10,137			11,567
Integrated Capacity Solutions
Loads	61,589			35,033
Revenue per load	$	1,098		$	1,671
Gross profit margin	16.5		%	16.0		%
Approximate number of third-party carriers (end of period)	21,000			15,200

* Includes company-owned and independent contractor tractors

** Using weighted workdays

*** Includes company-owned, independent contractor, and customer-owned trucks

Operating Statistics by Segment

(unaudited)

	Nine Months Ended September 30
	2009			2008
Intermodal
Loads	663,386			617,938
Average Length of haul	1,792			1,847
Revenue per load	$	1,918		$	2,369
Average tractors during the period *	2,171			1,983
Tractors (end of period)
Company-owned	2,289			2,101
Independent contractor	4			5
Total tractors	2,293			2,106
Containers (end of period)	40,432			36,985
Average effective trailing equipment usage	39,377			34,872
Dedicated
Loads	888,251			1,010,437
Average length of haul	209			228
Revenue per truck per week**	$	3,256		$	3,894
Average trucks during the period***	4,391			4,748
Trucks (end of period)
Company-owned	3,992			4,445
Independent contractor	35			67
Customer-owned (Dedicated operated)	358			102
Total trucks	4,385			4,614
Trailing equipment (end of period)	9,554			8,039
Average effective trailing equipment usage	12,250			12,838
Truck
Loads	372,109			494,372
Average Length of haul	478			470
Loaded miles (000)	169,491			233,103
Total miles (000)	195,750			265,880
Average nonpaid empty miles per load	73.5			66.8
Revenue per tractor per week**	$	2,857		$	3,627
Average tractors during the period*	2,999			3,908
Tractors (end of period)
Company-owned	2,018			2,666
Independent contractor	1,209			643
Total tractors	3,227			3,309
Trailers (end of period)	12,485			16,382
Average effective trailing equipment usage	10,082			12,045
Integrated Capacity Solutions
Loads	179,491			97,260
Revenue per load	$	1,071		$	1,533
Gross profit margin	19.2		%	15.4		%
Approximate number of third-party carriers (end of period)	21,000			15,200

* Includes company-owned and independent contractor tractors

** Using weighted workdays

*** Includes company-owned, independent contractor, and customer-owned trucks

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	September 30, 2009		December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	4,711	$	2,373
Accounts receivable	340,330		280,614
Assets held for sale	11,402		17,843
Prepaid expenses and other	45,459		95,457
Total current assets	401,902		396,287
Property and equipment	2,181,247		2,169,893
Less accumulated depreciation	745,335		783,363
Net property and equipment	1,435,912		1,386,530
Other assets	20,281		10,636
	$	1,858,095	$	1,793,453
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt	$	0	$	118,500
Trade accounts payable	180,712		196,059
Claims accruals	16,787		18,095
Accrued payroll	46,777		33,156
Other accrued expenses	10,398		31,995
Deferred income taxes	13,859		10,083
Total current liabilities	268,533		407,888
Long-term debt	625,800		515,000
Other long-term liabilities	30,201		30,490
Deferred income taxes	325,907		311,064
Stockholders’ equity	607,654		529,011
	$	1,858,095	$	1,793,453

Supplemental Data

(unaudited)

	September 30, 2009		December 31, 2008
Actual shares outstanding at end of period (000)	127,137		126,062
Book value per actual share outstanding at end of period	$	4.78	$	4.20

	Nine Months Ended September 30
	2009		2008
Net cash provided by operating activities (000)	$	248,160	$	349,678
Net capital expenditures (000)	$	209,007	$	122,382