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):

April 11, 2013

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:

{ } Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 2.02.      RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 11, 2013, we issued a news release announcing our revenues and earnings for the first quarter ended March 31, 2013. A copy of the news release is attached as Exhibit 99.1 and is incorporated herein by reference.

ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS

(d)	Exhibits.
99.1	News release dated April 11, 2013, issued by J.B. Hunt Transport Services, Inc.

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 on the 12th day of April 2013.

 

J.B. HUNT TRANSPORT SERVICES, INC.

BY: /s/ John N. Roberts, III                                  

        John N. Roberts, III

        President and Chief Executive Officer

        (Principal Executive Officer)

BY: /s/ David G. Mee                                             

        David G. Mee

        Executive Vice President, Finance and

        Administration and

        Chief Financial Officer

        (Principal Accounting Officer)

EX-99

 

Exhibit 99.1

J.B. Hunt Transport Services, Inc. 615 J.B. Hunt Corporate Drive Lowell, Arkansas 72745 (NASDAQ: JBHT) Contact:    David G. Mee EVP, Finance/Administration and Chief Financial Officer (479) 820-8111

FOR IMMEDIATE RELEASE

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

FOR THE FIRST QUARTER 2013

●	First Quarter 2013 Revenue:	$1.29 billion; up 11%
●	First Quarter 2013 Operating Income:	$125 million; up 7%
●	First Quarter 2013 EPS:	61 cents vs. 57 cents

LOWELL, ARKANSAS, April 11, 2013 - J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced first quarter 2013 net earnings of $73.3 million, or diluted earnings per share of 61 cents vs. first quarter 2012 net earnings of $67.7 million, or 57 cents per diluted share.

Total operating revenue for the current quarter was $1.29 billion, compared with $1.17 billion for the first quarter 2012. Load growth of 13% in Intermodal (JBI) and 47% in Integrated Capacity Solutions (ICS), helped drive 15% and 26% increases in segment revenue, respectively. Dedicated Contract Services (DCS) segment increased operating revenue by 9%, primarily from new long-term contracts currently being implemented, while Truck (JBT) segment revenue declined primarily from a 21% reduction in fleet size.

Operating income for the current quarter totaled $125 million vs. $117 million for the first quarter 2012. Combined, JBI and ICS operating income increased by approximately $18 million on higher load volume, improved freight mix and overhead cost controls. The increase in operating income was partially offset by higher equipment costs in the asset-based business units, higher claims costs from two old claims shared by all business units, contract implementation costs related to new customers for DCS and higher employee costs with lower asset utilization for JBT.

Net interest expense for the current quarter decreased by $0.7 million due to lower debt levels. The effective income tax rate for the quarter was consistent with last year at 38.25%.

Segment Information:

Intermodal (JBI)

●	First Quarter 2013 Segment Revenue:	$796 million; up 15%
●	First Quarter 2013 Operating Income:	$ 96.8 million; up 22%

Steady first quarter demand drove load growth of 13% over the prior year. Improved service levels and tighter capacity in the truck market contributed to our Eastern network growth of 19% and transcontinental growth of 10% compared to the prior year. Overall revenue grew 15% as a result of the volume growth and higher revenue per load, which is a combination of customer rates, fuel surcharges and freight mix.

Operating income increased 22% over the prior year. Increased equipment and maintenance costs, increased dray costs and higher dray purchase transportation costs were offset with the combination of steady demand and load growth, consistent and improved rail service, improved execution on dray movements and increased revenue per load. The current period ended with approximately 60,300 units of trailing capacity and 3,700 power units available to the dray fleet.

Dedicated Contract Services (DCS)

●	First Quarter 2013 Segment Revenue:	$279 million; up 9%
●	First Quarter 2013 Operating Income:	$21.9 million; down 22%

DCS revenue increased 9% during the current quarter while revenue, excluding fuel surcharges, increased 10%. Productivity, revenue per truck per week, excluding fuel surcharges, was up approximately 2% vs. first quarter 2012. A net additional 633 revenue producing trucks were added over the same period 2012, primarily from new accounts.

Operating income decreased by 22% from a year ago primarily due to increased equipment and maintenance costs, lower gains on equipment sales, increased bad debt expense and approximately $1.7 million in contract implementation costs for new long-term customers. These implementation costs include, but are not limited to, driver and management hiring costs and relocation, personnel travel costs, equipment repositioning costs, technology design and integration, and telecommunication and operational system infrastructure. These exceptionally large private fleet conversions will take approximately 6 to 8 months to fully implement. Additional implementation costs expected to be expensed in the coming periods are estimated to be $2.5 million.

Integrated Capacity Solutions (ICS)

●	First Quarter 2013 Segment Revenue:	$122 million; up 26%
●	First Quarter 2013 Operating Income:	$5.2 million; up 27%

ICS revenue increased 26% vs. first quarter 2012, mostly due to a 47% increase in load volume and higher pricing in our transactional business. Volumes grew faster than revenue primarily due to a change in freight mix driven by customer demand. Both transactional and contractual business continued to grow, however the contractual business grew faster to become 69% of total volumes vs. 59% in first quarter 2012.

Operating income increased 27% over the same period in 2012 primarily from the increased revenue and improved overhead cost controls. Gross profit margin declined to 13.0% in the current quarter vs. 14.3% at the same time last year due to increased rates paid to carriers from tighter supply and a competitive brokerage environment. ICS’s carrier base increased 9% and our employee count increased 16% compared to first quarter 2012.

Truck (JBT)

●	First Quarter 2013 Segment Revenue:	$102 million; down 21%
●	First Quarter 2013 Operating Income:	$1.1 million; down 78%

JBT revenue decreased 21% compared to the same quarter 2012 primarily from a 21% reduction in fleet size and lower utilization per truck. Excluding fuel surcharges, revenue for the current quarter decreased by 21%. Rate per loaded mile, excluding fuel surcharges, increased 3.8% over the same period last year but on a 9.8% shorter length of haul. Rates from consistent shippers improved 0.5% year-over-year. At the end of the current quarter, our tractor count was 2,011 compared to 2,561 in first quarter 2012.

Operating income for the current quarter decreased 78% compared to the same quarter of 2012. Increased rate per loaded mile, lower fuel costs and lower claims costs were offset by increases in driver and independent contractor costs per mile, higher office salaries per tractor, higher maintenance and equipment costs per unit, and fewer gains on equipment sales compared to the first quarter of 2012.

Cash Flow and Capitalization:

As of March 31, 2013, we had a total of $593 million outstanding on various debt instruments compared to $702 million on March 31, 2012, and $685 million on December 31, 2012.

Our net capital expenditures for the first quarter 2013 approximated $115 million compared to $84 million for the first quarter 2012. As of March 31, 2013, we had cash and cash equivalents of $5.7 million.

We did not purchase any shares of our common stock during the quarter. As of March 31, 2013, we had approximately $453 million remaining under our share repurchase authorization. Actual shares outstanding on March 31, 2013 approximated 117 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, 2012. We assume no obligation to update any forward-looking statement to the extent we become aware it will not be achieved for any reason. This press release and additional information will be available immediately to interested parties on 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 March 31
	2013					2012
			% Of					% Of
	Amount		Revenue			Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	1,038,940				$	938,683
Fuel surcharge revenues		252,647					227,239
Total operating revenues		1,291,587		100.0	%		1,165,922		100.0	%
Operating expenses
Rents and purchased transportation		644,533		49.9	%		556,117		47.7	%
Salaries, wages and employee benefits		263,724		20.4	%		250,044		21.4	%
Fuel and fuel taxes		116,560		9.0	%		120,554		10.3	%
Depreciation and amortization		60,730		4.7	%		56,120		4.8	%
Operating supplies and expenses		44,914		3.5	%		39,811		3.4	%
Insurance and claims		12,770		1.0	%		11,045		1.0	%
General and administrative expenses, net of asset dispositions		10,985		0.8	%		3,995		0.4	%
Operating taxes and licenses		7,513		0.6	%		7,142		0.6	%
Communication and utilities		4,819		0.4	%		4,497		0.4	%
Total operating expenses		1,166,548		90.3	%		1,049,325		90.0	%
Operating income		125,039		9.7	%		116,597		10.0	%
Net interest expense		6,256		0.5	%		6,987		0.6	%
Earnings before income taxes		118,783		9.2	%		109,610		9.4	%
Income taxes		45,434		3.5	%		41,926		3.6	%
Net earnings	$	73,349		5.7	%	$	67,684		5.8	%
Average diluted shares outstanding		119,825					119,750
Diluted earnings per share	$	0.61				$	0.57

Financial Information By Segment

(in thousands)

(unaudited)

	Three Months Ended March 31
	2013						2012
				% Of						% Of
	Amount			Total			Amount			Total
Revenue
Intermodal	$	796,262			62	%	$	694,116			60	%
Dedicated		279,083			22	%		255,852			22	%
Integrated Capacity Solutions		122,321			9	%		97,052			8	%
Truck		101,845			8	%		128,156			11	%
Subtotal		1,299,511			101	%		1,175,176			101	%
Intersegment eliminations		(7,924	)		(1%	)		(9,254	)		(1%	)
Consolidated revenue	$	1,291,587			100	%	$	1,165,922			100	%
Operating income
Intermodal	$	96,794			77	%	$	79,430			68	%
Dedicated		21,946			18	%		28,149			24	%
Integrated Capacity Solutions		5,174			4	%		4,064			4	%
Truck		1,095			1	%		4,884			4	%
Other (1)		30			0	%		70			0	%
Operating income	$	125,039			100	%	$	116,597			100	%

      (1) Includes corporate support activity

 

Operating Statistics by Segment

(unaudited)

	Three Months Ended March 31
	2013			2012
Intermodal
Loads		367,766			324,142
Average length of haul		1,691			1,704
Revenue per load	$	2,165		$	2,141
Average tractors during the period *		3,665			3,185
Tractors (end of period)
Company-owned		3,230			2,956
Independent contractor		482			299
Total tractors		3,712			3,255
Net change in trailing equipment during the period		1,343			331
Trailing equipment (end of period)		60,305			54,837
Average effective trailing equipment usage		55,938			50,596
Dedicated
Loads		398,299			351,187
Average length of haul		198			208
Revenue per truck per week**	$	4,149		$	4,069
Average trucks during the period***		5,322			4,881
Trucks (end of period)
Company-owned		5,119			4,600
Independent contractor		13			18
Customer-owned (Dedicated operated)		363			244
Total trucks		5,495			4,862
Trailing equipment (end of period)		17,466			11,163
Average effective trailing equipment usage		17,737			12,435
Integrated Capacity Solutions
Loads		99,923			68,138
Revenue per load	$	1,224		$	1,424
Gross profit margin		13.0	%		14.3	%
Employee count (end of period)		441			379
Approximate number of third-party carriers (end of period)		32,600			29,800
Truck
Loads		97,886			116,904
Average length of haul		449			498
Loaded miles (000)		43,606			57,551
Total miles (000)		51,062			66,264
Average nonpaid empty miles per load		75.4			73.8
Revenue per tractor per week**	$	3,886		$	3,822
Average tractors during the period*		2,083			2,615
Tractors (end of period)
Company-owned		1,190			1,563
Independent contractor		821			998
Total tractors		2,011			2,561
Trailers (end of period)		8,460			9,285
Average effective trailing equipment usage		7,416			8,154

* 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, 2013		December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	5,747	$	5,589
Accounts Receivable		529,333		466,011
Prepaid expenses and other		80,118		82,932
Total current assets		615,198		554,532
Property and equipment		2,982,697		2,904,706
Less accumulated depreciation		1,041,271		1,019,232
Net property and equipment		1,941,426		1,885,474
Other assets		29,495		24,635
	$	2,586,119	$	2,464,641
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt	$	200,000	$	100,000
Trade accounts payable		374,968		266,722
Claims accruals		49,850		47,442
Accrued payroll		54,485		70,647
Other accrued expenses		47,168		17,199
Deferred income taxes		750		750
Total current liabilities		727,221		502,760
Long-term debt		393,289		585,347
Other long-term liabilities		53,815		53,050
Deferred income taxes		536,022		531,624
Stockholders' equity		875,772		791,860
	$	2,586,119	$	2,464,641

Supplemental Data

(unaudited)

	March 31, 2013		December 31, 2012
Actual shares outstanding at end of period (000)		117,583		117,529
Book value per actual share outstanding at end of period	$	7.45	$	6.74

	Three Months Ended March 31
	2013		2012
Net cash provided by operating activities (000)	$	206,759	$	146,272
Net capital expenditures (000)	$	115,058	$	83,782