-----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, THoDr6SOPSH5/q4/30C5cpDhh+pgKtSdlW/DfncRyomnFabVmCyhhwg1njOALd5C BqNbWLU22grtwEoF0Lhy6Q== /in/edgar/work/0000793074-00-000012/0000793074-00-000012.txt : 20001019 0000793074-00-000012.hdr.sgml : 20001019 ACCESSION NUMBER: 0000793074-00-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001017 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WERNER ENTERPRISES INC CENTRAL INDEX KEY: 0000793074 STANDARD INDUSTRIAL CLASSIFICATION: [4213 ] IRS NUMBER: 470648386 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-14690 FILM NUMBER: 741771 BUSINESS ADDRESS: STREET 1: 14507 FRONTIER ROAD STREET 2: P O BOX 45308 CITY: OMAHA STATE: NE ZIP: 68145 BUSINESS PHONE: 4028956640 8-K 1 0001.txt 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 17, 2000 --------------- WERNER ENTERPRISES, INC. (Exact name of registrant as specified in its charter) NEBRASKA 0-14690 47-0648386 (State or other jurisdiction of (Commission File (IRS Employer incorporation or organization) Number) Identification No.) 14507 FRONTIER ROAD POST OFFICE BOX 45308 OMAHA, NEBRASKA 68145 (402)895-6640 (Address of principal (Zip Code) (Registrant's telephone number) executive offices) ITEM 5. OTHER EVENTS. On October 17, 2000, the registrant issued a news release announcing its operating revenues and earnings for the third quarter and nine months ended September 30, 2000. A copy of the news release is filed as an exhibit to this Form 8-K. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. Exhibit 99.1 News release issued by the registrant on October 17, 2000. 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 hereunto duly authorized. WERNER ENTERPRISES, INC. Date: October 18, 2000 By: /s/ John J. Steele ----------------------- ----------------------------- John J. Steele Vice President, Treasurer and Chief Financial Officer Date: October 18, 2000 By: /s/ James L. Johnson ----------------------- ----------------------------- James L. Johnson Vice President - Controller and Secretary EX-99 2 0002.txt Exhibit 99.1 WERNER ENTERPRISES, INC. 14507 Frontier Road P. O. Box 45308 Omaha, Nebraska 68145 FOR IMMEDIATE RELEASE Contact: Robert E. Synowicki, Jr. - --------------------- Executive Vice President and Chief Information Officer (402) 894-3000 John J. Steele Vice President, Treasurer and Chief Financial Officer (402) 894-3000 WERNER ENTERPRISES ANNOUNCES THIRD QUARTER 2000 OPERATING REVENUES AND EARNINGS Omaha, Nebraska, October 17, 2000: - --------------------------------- Werner Enterprises, Inc. (Werner), one of the nation's largest truckload transportation companies, today reported operating revenues and earnings for the third quarter ended September 30, 2000. Operating revenues for third quarter increased 13% to $304.6 million compared to $270.1 million for the quarter ended September 30, 1999. Earnings per share decreased to $.26 per share compared to $.36 per share in third quarter 1999, due primarily to the high cost of fuel, a weak market for the sale of used trucks, and a slightly softer freight environment. "The operating environment for truckload carriers became increasingly difficult in third quarter," said Chairman and Chief Executive Officer, Clarence (C.L.) Werner. "While Werner Enterprises is not immune to these macro industry trends, we are taking steps to lessen their effect on our business and our earnings. In the short run, these factors make it challenging for all trucking companies. In the long run, the current operating environment may create opportunities for larger, financially-stable carriers like Werner Enterprises." During third quarter 2000, the average price per gallon of diesel fuel, excluding fuel taxes, increased another 13% over the price paid in second quarter 2000. Further, third quarter 2000 prices were approximately 50% higher than the price paid in third quarter 1999. Werner Enterprises has made significant improvement in fuel surcharge reimbursements from customers for the higher cost of fuel. However, Werner Enterprises is continuing to work with its customers on these reimbursement programs. Werner incurs unreimbursed fuel costs for empty miles between freight shipments, out-of-route miles caused in part by driver home time needs, truck idling, and reimbursements to owner operator drivers. Other industry factors affecting the company's business include the weak used truck market and a slightly softer freight environment. Due to record levels of trucks manufactured over the past two years, an increased supply of used trucks caused in part by business failures, and slower fleet growth by many carriers, the pricing for used trucks has decreased. Freight demand during much of third quarter 2000 was slightly less than anticipated, when compared to the same period a year ago. The Company experienced a small increase in its empty mile percentage and a small decrease in miles per truck when compared to the third quarter 1999. However, due in part to Werner's diversified freight base, the Company's low empty mile percentage and high miles per truck remain among the best in the industry. Over the past several months, Werner Enterprises has increased its focus on margin improvement and debt reduction. Revenue per mile, net of fuel surcharge revenues, increased 4%, year over year. Progress has been achieved this quarter through the reduction of controllable costs and improved efficiency. Over the last nine months, the Company has improved its financial strength as total debt has been reduced from $145 million to $115 million, while stockholders' equity has increased from $495 million to $525 million. Until market conditions improve, the Company anticipates growing its fleet at a slower rate. However, when market conditions improve, the Company intends to increase its growth rate. The Company's revenues in third quarter 2000 were reduced by approximately 4% due to transferring its logistics business units to Transplace.com. Werner Enterprises is one of six large transportation companies that merged their logistics business into a commonly owned, Internet-based logistics company, Transplace.com. Effective July 1, 2000, the transfer was completed, and each of the six founding members contributed their logistics business, related intangible assets, and $5 million of cash. Werner Enterprises is recording its approximate 15% investment in Transplace.com using the equity method of accounting and is accruing its percentage share of Transplace.com's earnings as non- operating income. "Werner Enterprises is committed to improving earnings growth and shareholder value. The current challenges facing the truckload industry are tremendous opportunities for our Company. Our size, excellent service, advanced technology, financial strength and experienced management team provide Werner Enterprises with distinct competitive advantages. We are excited and optimistic about the future of our Company," said C.L. Werner.
INCOME STATEMENT DATA (Unaudited) (In thousands) Quarter % of Quarter % of Ended Operating Ended Operating 9/30/00 Revenues 9/30/99 Revenues -------- --------- -------- --------- Operating revenues $304,572 100.0 $270,144 100.0 -------- --------- -------- --------- Operating expenses: Salaries, wages and benefits 109,283 35.9 97,830 36.2 Fuel 35,237 11.6 21,600 8.0 Supplies and maintenance 26,895 8.8 23,027 8.5 Taxes and licenses 22,563 7.4 20,467 7.6 Insurance and claims 9,923 3.3 7,040 2.6 Depreciation 27,811 9.1 25,415 9.4 Rent and purchased transportation 48,603 16.0 45,382 16.8 Communications and utilities 3,688 1.2 3,394 1.3 Other (474) (0.2) (2,852) (1.1) -------- --------- -------- --------- Total operating expenses 283,529 93.1 241,303 89.3 -------- --------- -------- --------- Operating income 21,043 6.9 28,841 10.7 -------- --------- -------- --------- Other expense (income): Interest expense 2,043 0.7 1,731 0.6 Interest income (688) (0.2) (355) (0.1) Other (136) (0.1) 83 0.0 -------- --------- -------- --------- Total other expense 1,219 0.4 1,459 0.5 -------- --------- -------- --------- Income before income taxes 19,824 6.5 27,382 10.2 Income taxes 7,533 2.5 10,405 3.9 -------- --------- -------- --------- Net income $ 12,291 4.0 $16,977 6.3 ======== ========= ======== ========= Diluted shares outstanding 47,191 47,741 ======== ======== Diluted earnings per share $.26 $.36 ======== ======== Average monthly miles per tractor 10,467 10,550 Average revenues per total mile(1) $1.204 $1.164 Average revenues per loaded mile(1) $1.339 $1.290 Average tractors in service 7,410 6,949 Total tractors (at quarter end) Company 6,225 5,845 Owner-operator 1,200 1,230 -------- -------- Total tractors 7,425 7,075 Total trailers (at quarter end) 19,620 18,030
(1) Net of fuel surcharge revenues.
Nine Nine Months % of Months % of Ended Operating Ended Operating 9/30/00 Revenues 9/30/99 Revenues -------- --------- -------- --------- Operating revenues $903,193 100.0 $771,770 100.0 -------- --------- -------- --------- Operating expenses: Salaries, wages and benefits 320,135 35.4 282,397 36.6 Fuel 98,285 10.9 53,819 7.0 Supplies and maintenance 78,534 8.7 64,190 8.3 Taxes and licenses 66,211 7.3 60,071 7.8 Insurance and claims 25,127 2.8 24,311 3.2 Depreciation 80,926 9.0 73,606 9.5 Rent and purchased transportation 164,968 18.3 131,565 17.0 Communications and utilities 10,849 1.2 9,904 1.3 Other (3,838) (0.4) (7,868) (1.0) -------- --------- -------- --------- Total operating expenses 841,197 93.1 691,995 89.7 -------- --------- -------- --------- Operating income 61,996 6.9 79,775 10.3 -------- --------- -------- --------- Other expense (income): Interest expense 6,256 0.7 4,574 0.6 Interest income (1,760) (0.2) (1,028) (0.1) Other 204 0.0 140 0.0 -------- --------- -------- --------- Total other expense 4,700 0.5 3,686 0.5 -------- --------- -------- --------- Income before income taxes 57,296 6.3 76,089 9.8 Income taxes 21,772 2.4 28,914 3.7 -------- --------- -------- --------- Net income 35,524 3.9 $47,175 6.1 ======== ========= ======== ========= Diluted shares outstanding 47,260 47,645 ======== ======== Diluted earnings per share $.75 $.99 ======== ========
BALANCE SHEET DATA (Unaudited) (In thousands) As of As of 9/30/00 12/31/99 -------- -------- Current assets $203,866 $188,827 Total assets $918,093 $896,879 Current liabilities $108,342 $121,206* Long-term debt $115,000 $120,000 Stockholders' equity $524,969 $494,772
* Current liabilities include $25 million of short-term debt at December 31, 1999. Werner Enterprises is a full-service transportation company providing truckload services throughout the 48 states, portions of Canada and Mexico. C.L. Werner founded the Company in 1956. Werner is one of the nation's largest truckload carriers with a fleet of 7,425 trucks and 19,620 trailers. Werner Enterprises' common stock is traded on The Nasdaq Stock Market under the symbol WERN. The Werner Enterprises web site address is www.werner.com. -------------- Note: This press release contains forward-looking statements which are based on information currently available. Actual results could differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 1999. The Company assumes no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason. -----END PRIVACY-ENHANCED MESSAGE-----