-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OS6HqUUIehaK+SELmrf1rSU9ZVuC5IE7u4qTpDYQFvNSycpQ66JXmsHCNrTq/I6d WuvGHSVUDMXhbF+H2Ro7qA== 0000793074-96-000006.txt : 19960513 0000793074-96-000006.hdr.sgml : 19960513 ACCESSION NUMBER: 0000793074-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960510 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: WERNER ENTERPRISES INC CENTRAL INDEX KEY: 0000793074 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 470648386 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14690 FILM NUMBER: 96559439 BUSINESS ADDRESS: STREET 1: P O BOX 37308 STREET 2: P O BOX 37308 CITY: OMAHA STATE: NE ZIP: 68137 BUSINESS PHONE: 4028956640 10-Q 1 WERNER ENTERPRISES, INC. 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter ended Commission file number March 31, 1996 0-14690 WERNER ENTERPRISES, INC. (Exact name of registrant as specified in its charter) NEBRASKA 47-0648386 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) INTERSTATE 80 & HIGHWAY 50 POST OFFICE BOX 37308 OMAHA, NEBRASKA 68137 (402)895-6640 (Address of principal (Zip Code) (Registrant's telephone number) executive offices) -------------------------------------- Indicate by check mark whether the registrant(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] As of April 30, 1996, 25,193,627 shares of the registrant's common stock, par value $.01 per share, were outstanding. PART I FINANCIAL INFORMATION Item 1. Financial Statements. The interim consolidated financial statements contained herein reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the financial condition and results of operations for the periods presented. They have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the three-month period ended March 31, 1996 are not necessarily indicative of the results that may be expected for the year ending December 31, 1996. In the opinion of management, the information set forth in the accompanying consolidated condensed balance sheets is fairly stated in all material respects in relation to the consolidated balance sheets from which it has been derived. These interim consolidated financial statements should be read in conjunction with the Company's latest annual report (which is incorporated by reference in the Form 10-K for the year ended December 31, 1995). Consolidated Statements of Income for the Three Months Ended March 31, 1996 and 1995........................Page 3 Consolidated Condensed Balance Sheets as of March 31, 1996 and December 31, 1995..............................Page 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1996 and 1995........................Page 5 Notes to Consolidated Financial Statements as of March 31, 1996..............................................Page 6 2 WERNER ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended (Amounts in thousands, except per share data) March 31 1996 1995 (Unaudited) Operating revenues $147,903 $132,434 Operating expenses: Salaries, wages and benefits 52,377 47,361 Fuel 13,368 10,841 Supplies and maintenance 12,723 12,795 Taxes and licenses 12,402 12,129 Insurance and claims 5,287 4,493 Depreciation 15,616 15,271 Rent and purchased transportation 22,930 16,451 Communications and utilities 1,876 2,082 Other (911) (1,587) Total operating expenses 135,668 119,836 Operating income 12,235 12,598 Other expense (income): Interest expense 649 493 Interest income (396) (241) Other 36 31 Total other expense 289 283 Income before income taxes 11,946 12,315 Income taxes 4,658 4,803 Net income $ 7,288 $ 7,512 Average common shares outstanding 25,185 25,198 Earnings per share $ .29 $ .30 3 WERNER ENTERPRISES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) March 31 December 31 1996 1995 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 23,570 $ 16,227 Accounts receivable, net 56,214 57,871 Prepaid taxes, licenses and permits 6,426 7,752 Other current assets 18,228 19,145 Total current assets 104,438 100,995 Property and equipment 527,430 526,208 Less - accumulated depreciation 122,754 119,524 Property and equipment, net 404,676 406,684 $509,114 $507,679 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 16,226 $ 15,719 Insurance and claims accruals 20,735 19,073 Accrued payroll 8,523 7,718 Income taxes payable 2,297 3,226 Other current liabilities 9,103 8,455 Total current liabilities 56,884 54,191 Long-term debt 30,000 40,000 Insurance and claims accruals 26,000 26,000 Other long-term liabilities 2,736 2,736 Deferred income taxes 77,790 75,700 Stockholders' equity 315,704 309,052 $509,114 $507,679 4 WERNER ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended (In thousands) March 31 1996 1995 (Unaudited) Cash flows from operating activities: Net income $ 7,288 $ 7,512 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 15,616 15,271 Deferred income taxes 2,090 2,155 Gain on disposal of operating equipment (1,300) (1,909) Long-term liabilities - (1,000) Changes in certain working capital items: Accounts receivable, net 1,657 3,897 Prepaid expenses and other current assets 2,243 1,214 Accounts payable 507 (4,801) Accrued payroll 805 (1,001) Other current liabilities 1,381 1,181 Net cash provided by operating activities 30,287 22,519 Cash flows from investing activities: Additions to property and equipment (19,491) (34,866) Retirements of property and equipment 7,183 10,304 Net cash used in investing activities (12,308) (24,562) Cash flows from financing activities: Repayments of long-term debt (10,000) - Dividends on common stock (755) (630) Repurchases of common stock - (923) Stock options exercised 119 7 Net cash used in financing activities (10,636) (1,546) Net increase (decrease) in cash and cash equivalents 7,343 (3,589) Cash and cash equivalents, beginning of period 16,227 11,660 Cash and cash equivalents, end of period $23,570 $ 8,071 Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 703 $ 460 Income taxes 3,458 2,812 5 WERNER ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Commitments As of March 31, 1996, the Company has committed to capital expenditures of approximately $42,000,000 (net cost, after revenue equipment trade-in allowances of approximately $16,000,000). 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Financial Condition: During the three months ended March 31, 1996, the Company generated cash flow from operations of $30.3 million. After the Company made net property additions, primarily revenue equipment, of $12.3 million, repaid long-term debt of $10.0 million and paid common stock dividends of $.8 million, cash and cash equivalents increased by $7.3 million. The Company's long-term debt to equity ratio at March 31, 1996 was 9.5%, compared with 12.9% at December 31, 1995. Results of Operations: Three Months Ended March 31, 1996 and 1995 Operating revenues increased 12% for the three months ended March 31, 1996, compared to the same period of the prior year. The average number of tractors increased by 7%, primarily due to expansion in the long-haul van fleet during the last nine months of 1995. Revenue per mile was comparable to the same period of the previous year. Loaded miles per tractor during the three months ended March 31, 1996 increased 4% due to an increased emphasis on team freight (tractors operated with two drivers) and management focus on maximizing equipment utilization. Increased revenues from logistics transportation services also contributed to the overall increase in operating revenues. Operating expenses, expressed as a percentage of operating revenues, were 91.7% for the three months ended March 31, 1996, compared to 90.5% for the three months ended March 31, 1995. Owner-operator tractors represented a larger percentage of total tractors during the quarter ended March 31, 1996 (17.2%), compared to the same period of 1995 (14.5%), which caused a shift in expenses as a percentage of operating revenues from the salaries, wages and benefits; fuel; supplies and maintenance; taxes and licenses; and depreciation categories (owner-operators are independent contractors and are responsible for these costs under their contracts with the Company) to the rent and purchased transportation category. The Company's increased use of logistics transportation services also contributed to the shift in costs to the rent and purchased transportation category. Salaries, wages and benefits decreased from 35.8% to 35.4% of revenues due primarily to the increase in the percentage of owner-operator tractors, partially offset by the effect of a $2,400,000 reduction in the estimated liability for accrued driver payroll during the first quarter of 1995. 7 Fuel increased from 8.2% to 9.0% of revenues, due mainly to increased average fuel prices during the first quarter of 1996, partially offset by the increase in the percentage of owner-operator tractors. If the higher fuel prices continue, future operating results could be adversely affected. During April 1996, the Company began collecting a fuel surcharge from customers which will partially offset the increased fuel prices. However, the Company cannot predict whether the higher fuel prices will continue or the extent to which fuel surcharges will be collected to offset such increases. Supplies and maintenance decreased from 9.7% to 8.6% of revenues due primarily to the increased percentage of owner-operator tractors, increased use of logistics transportation services, and decreased general administrative costs. Taxes and licenses decreased from 9.1% to 8.4% of revenues due primarily to the increased percentage of owner-operators, increased use of logistics services, and refunds of state sales taxes. Depreciation decreased from 11.5% to 10.5% of revenues due principally to the increased percentage of owner-operator tractors, increased tractor utilization, and the effect of an increase in the estimated salvage value of certain trailers effective April 1, 1995. Other operating expenses increased from (1.2%) to (.6%) of revenues mainly due to a decrease in gains realized on the sale of revenue equipment to third parties. The Company's effective income tax rate (income taxes as a percentage of income before income taxes) was 39.0% for the three month periods ended March 31, 1996 and 1995. 8 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit Page Number or Incorporated Number Description by Reference to 10 Amended and Restated Exhibit 10 to the Company's Stock Option Plan report on Form 10-Q for the quarter ended May 31, 1994 27 Financial Data Schedule Page 10 of sequentially numbered pages (b) Reports on Form 8-K - None 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. WERNER ENTERPRISES, INC. Date: May 10, 1996 By: /s/Robert E. Synowicki, Jr. Robert E. Synowicki, Jr. Executive Vice President and Chief Financial Officer Date: May 10, 1996 By: /s/John J. Steele John J. Steele Vice President - Controller and Secretary 9 EX-27 2
5 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 23,570 0 56,214 0 0 104,438 527,430 122,754 509,114 56,884 0 0 0 258 315,446 509,114 147,903 147,903 0 135,668 (360) 0 649 11,946 4,658 7,288 0 0 0 7,288 .29 .29
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