-----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, B4h41boFj33taKq+BRC4K8sccXH3TCcxXcvMuV0nYRcB6wwjW/2WGjGEr+JPbjvp JYDwemKecpUiSxYE92ZJGw== 0000793074-02-000003.txt : 20020414 0000793074-02-000003.hdr.sgml : 20020414 ACCESSION NUMBER: 0000793074-02-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020122 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020129 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14690 FILM NUMBER: 02520999 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 wern8k012202.txt WERNER ENTERPRISES, INC. 8K 01/22/02 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): January 22, 2002 ----------------- 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 January 22, 2002, the registrant issued a news release announcing its operating revenues and earnings for the fourth quarter and year ended December 31, 2001. 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 January 22, 2002. 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: January 29, 2002 By: /s/ John J. Steele ------------------ -------------------------- John J. Steele Vice President, Treasurer and Chief Financial Officer Date: January 29, 2002 By: /s/ James L. Johnson ------------------ -------------------------- James L. Johnson Vice President, Controller and Corporate Secretary EX-99 3 wern4q01.txt WERNER ENTERPRISES, INC. 8K 01/22/02 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) 894-3036 WERNER ENTERPRISES ANNOUNCES HIGHER FOURTH QUARTER 2001 OPERATING REVENUES AND EARNINGS Omaha, Nebraska, January 22, 2002: - --------------------------------- Werner Enterprises, Inc. (Nasdaq:WERN-news), one of the nation's largest truckload transportation companies, today reported higher operating revenues and earnings for the fourth quarter ended December 31, 2001. Operating revenues increased 3% to $320.5 million compared to $311.4 million in fourth quarter 2000. Net income increased 10% to $13.7 million compared to $12.5 million in fourth quarter 2000. Earnings per share for fourth quarter 2001 were $.28 per share, or 8% higher than the $.26 per share earned in fourth quarter 2000. For the year, operating revenues of $1.271 billion in 2001 were 5% higher than the $1.215 billion of operating revenues in 2000. Net income decreased slightly to $47.7 million in 2001, compared to $48.0 million in 2000. Earnings per share decreased slightly to $.99 per share, compared to the $1.02 per share in 2000. "Earnings improvement continued in fourth quarter 2001 despite difficult operating conditions," said Chairman and Chief Executive Officer, Clarence (C.L.) Werner. "Disciplined execution of our operating plan enabled Werner Enterprises to maintain its high equipment utilization. Revenue per truck per week, net of fuel surcharge, was $2,910, a 1% increase over our revenue per truck per week in fourth quarter 2000. Recognizing that the economy was weaker in fourth quarter 2001 than fourth quarter 2000, I am pleased with the improvement in our revenue per truck per week." Freight demand remained soft throughout the quarter, compared to the same period a year ago. Werner Enterprises continued to add or replace freight to counter the impact of a weak economy. While business inventory levels in the United States are at low levels, to date we have not yet experienced a pickup in freight demand that would be expected to replenish these inventories. As a result, we plan to continue growing our fleet at a lower rate in the near term. However, we plan to increase our growth rate when we see better returns. Average diesel fuel prices were about 40 cents per gallon lower in fourth quarter 2001, compared to the very high prices of fourth quarter 2000. However, current fuel prices are comparable to average prices over the last ten years. In periods when fuel prices are high, the Company collects fuel surcharge revenues to reimburse the Company for the high cost of fuel. In periods when fuel prices decrease, such as fourth quarter 2001, the Company's fuel surcharge revenues decrease. Excluding lower fuel surcharge revenues, operating revenues grew 7% in fourth quarter 2001 compared to fourth quarter 2000. The truckload industry continues to face a combination of negative trends that are causing weaker carriers to exit the market in record numbers. The weakened value of used trucks, skyrocketing liability insurance premiums, more restrictive equipment lending standards, and a weaker economy are some of these significant trends. Trucking company failures in 2001 are estimated to be about 4,000, more than double the average annual rate of failures that occurred in the previous 15 years. With regard to the weak used truck pricing market, in second quarter 2001 we renegotiated our trade agreements with our primary truck manufacturer. We have also been expanding our nationwide retail truck sales network that has been a leading seller of used Company trucks for ten years. The buying power of being a large purchaser of trucks combined with our extensive retail truck sales network uniquely positions Werner Enterprises to minimize the impact of a weak used truck pricing market. The Company plans to continue its current truck replacement cycle. As of December 31, 2001, the average age of our company truck fleet is 1.5 years. For over ten years, we have self-insured and managed virtually all of our liability insurance claims with qualified Risk Department professionals. As a result, higher liability insurance rates have had a less significant effect on Werner Enterprises than on many other carriers, impacting the Company only for catastrophic claim coverage. Werner Enterprises renewed its annual catastrophic liability insurance coverage effective August 1, 2001, and the effect of the increase in premiums was less than 10% of the Company's total annual insurance and claims expense. Industry sources have reported that other trucking companies have experienced insurance increases of 50% to 100%. Some carriers are reacting to these cost increases by reducing their liability insurance coverage to lower coverage amounts, some as low as the minimum allowable level prescribed by the U.S. Department of Transportation of $750,000 per claim. Over the past year, Werner Enterprises reduced its debt by $55 million, and our invested cash exceeds our only remaining debt. At the same time, stockholders' equity has grown to $590 million. For 2001, cash flow from operations was $226.9 million, or 33% higher than 2000. Our strong financial position is increasingly important to customers and employees. "Werner Enterprises remains 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 workforce 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, except per share amounts) Quarter % of Quarter % of Ended Operating Ended Operating 12/31/01 Revenues 12/31/00 Revenues -------- -------- -------- -------- Operating revenues $320,547 100.0 $311,435 100.0 -------- -------- -------- -------- Operating expenses: Salaries, wages and benefits 118,477 37.0 109,690 35.2 Fuel 27,160 8.5 39,335 12.6 Supplies and maintenance 29,940 9.3 24,250 7.8 Taxes and licenses 23,829 7.4 22,915 7.4 Insurance and claims 10,428 3.3 9,020 2.9 Depreciation 28,935 9.0 28,181 9.0 Rent and purchased transportation 53,884 16.8 51,949 16.7 Communications and utilities 3,778 1.2 3,605 1.2 Other 1,400 0.4 1,665 0.5 -------- -------- -------- -------- Total operating expenses 297,831 92.9 290,610 93.3 -------- -------- -------- -------- Operating income 22,716 7.1 20,825 6.7 -------- -------- -------- -------- Other expense (income): Interest expense 760 0.2 1,913 0.6 Interest income (595) (0.2) (890) (0.3) Other 559 0.2 (358) (0.1) -------- -------- -------- -------- Total other expense 724 0.2 665 0.2 -------- -------- -------- -------- Income before income taxes 21,992 6.9 20,160 6.5 Income taxes 8,247 2.6 7,661 2.5 -------- -------- -------- -------- Net income $13,745 4.3 $12,499 4.0 ======== ======== ======== ======== Diluted shares outstanding 48,576 47,252 ======== ======== Diluted earnings per share $.28 $.26 ======== ======== OPERATING STATISTICS (Quarter Ended December 31) Average monthly miles per tractor 10,273 10,242 Average revenues per total mile (1) $1.227 $1.222 Average revenues per loaded mile (1) $1.360 $1.354 Average percentage of empty miles 9.78% 9.74% Average tractors in service 7,766 7,402 Average revenues per truck per week (1) $2,910 $2,889 Non-trucking revenues (in thousands) $20,091 $15,225 Total tractors (at quarter end) Company 6,640 6,300 Owner-operator 1,135 1,175 -------- -------- Total tractors 7,775 7,475 Total trailers (at quarter end) 19,775 19,770
(1) Net of fuel surcharge revenues.
INCOME STATEMENT DATA (In thousands, except per share amounts) Year % of Year % of Ended Operating Ended Operating 12/31/01 Revenues 12/31/00 Revenues ---------- -------- ---------- -------- Operating revenues $1,270,519 100.0 $1,214,628 100.0 ---------- -------- ---------- -------- Operating expenses: Salaries, wages and benefits 457,433 36.0 429,825 35.4 Fuel 131,498 10.3 137,620 11.3 Supplies and maintenance 117,882 9.3 102,784 8.5 Taxes and licenses 93,628 7.4 89,126 7.3 Insurance and claims 41,946 3.3 34,147 2.8 Depreciation 116,043 9.2 109,107 9.0 Rent and purchased transportation 214,336 16.9 216,917 17.9 Communications and utilities 14,365 1.1 14,454 1.2 Other 4,059 0.3 (2,173) (0.2) ---------- -------- ---------- -------- Total operating expenses 1,191,190 93.8 1,131,807 93.2 ---------- -------- ---------- -------- Operating income 79,329 6.2 82,821 6.8 ---------- -------- ---------- -------- Other expense (income): Interest expense 3,775 0.3 8,169 0.7 Interest income (2,628) (0.2) (2,650) (0.3) Other 1,791 0.1 (154) 0.0 ---------- -------- ---------- -------- Total other expense 2,938 0.2 5,365 0.4 ---------- -------- ---------- -------- Income before income taxes 76,391 6.0 77,456 6.4 Income taxes 28,647 2.2 29,433 2.4 ---------- -------- ---------- -------- Net income $47,744 3.8 $48,023 4.0 ========== ======== ========== ======== Diluted shares outstanding 48,110 47,257 ========== ========== Diluted earnings per share $0.99 $1.02 ========== ========== OPERATING STATISTICS (Year Ended December 31) Average monthly miles per tractor 10,305 10,464 Average revenues per total mile (1) $1.208 $1.197 Average revenues per loaded mile (1) $1.342 $1.328 Average percentage of empty miles 9.96% 9.88% Average tractors in service 7,698 7,303 Average revenues per truck per week (1) $2,874 $2,889 Non-trucking revenues (in thousands) $74,001 $65,977 Total tractors (at year end) Company 6,640 6,300 Owner-operator 1,135 1,175 ---------- ---------- Total tractors 7,775 7,475 Total trailers (at year end) 19,775 19,770
(1) Net of fuel surcharge revenues.
BALANCE SHEET DATA (In thousands) As of As of 12/31/01 12/31/00 -------- -------- Cash and cash equivalents $74,366 $25,485 Current assets $236,067 $206,777 Total assets $964,014 $927,207 Current liabilities $152,257* $101,419 Total debt (current and long-term) $50,000 $105,000 Stockholders' equity $590,049 $536,084
* Current liabilities include $30 million of debt which matures in November 2002. 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 7,775 trucks and 19,775 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. If you are interested in keeping up to date on the Company's news releases or SEC filings, you can obtain automatic Internet e-mail alerts by going to www.werner.com, clicking on Investor Relations (upper right hand corner), clicking on e-mail alerts (lower left hand corner), entering your e-mail address, and completing the registration information. 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, 2000. 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-----