-----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, TPKBQWIj9kmCspZ9GOFLe5EkAqd5hTC1liCYg06Mk//+gcwTuzexvp0SjgdyAFFx p66ZRfaqqTFKjkRsASdMNw== 0000793074-97-000008.txt : 19970513 0000793074-97-000008.hdr.sgml : 19970513 ACCESSION NUMBER: 0000793074-97-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970512 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: 97601173 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, 1997 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, 1997, 38,212,571 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, 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. 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, 1996). Consolidated Statements of Income for the Three Months Ended March 31, 1997 and 1996........................Page 3 Consolidated Condensed Balance Sheets as of March 31, 1997 and December 31, 1996..............................Page 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996........................Page 5 Notes to Consolidated Financial Statements as of March 31, 1997..............................................Page 6 2 WERNER ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended (Amounts in thousands, except per share data) March 31 - ------------------------------------------------------------------------- 1997 1996 - ------------------------------------------------------------------------- (Unaudited) Operating revenues $172,049 $147,903 --------------------- Operating expenses: Salaries, wages and benefits 63,273 52,377 Fuel 17,265 13,368 Supplies and maintenance 14,945 12,723 Taxes and licenses 12,719 12,402 Insurance and claims 6,350 5,287 Depreciation 17,248 15,616 Rent and purchased transportation 27,648 22,930 Communications and utilities 2,184 1,876 Other (1,036) (911) --------------------- Total operating expenses 160,596 135,668 --------------------- Operating income 11,453 12,235 --------------------- Other expense (income): Interest expense 447 649 Interest income (415) (396) Other 29 36 --------------------- Total other expense 61 289 --------------------- Income before income taxes 11,392 11,946 Income taxes 3,943 4,658 --------------------- Net income $ 7,449 $ 7,288 ===================== Average common shares outstanding 37,990 37,778 ===================== Earnings per share $ .20 $ .19 ===================== Dividends declared per share $ .025 $ .020 ===================== 3 WERNER ENTERPRISES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) March 31 December 31 - --------------------------------------------------------------------------- 1997 1996 - --------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 23,591 $ 22,136 Accounts receivable, net 76,036 67,928 Prepaid taxes, licenses and permits 6,716 7,753 Other current assets 18,800 18,347 ---------------------- Total current assets 125,143 116,164 ---------------------- Property and equipment 604,214 579,075 Less - accumulated depreciation 156,137 146,028 ---------------------- Property and equipment, net 448,077 433,047 ---------------------- $573,220 $549,211 ====================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 30,514 $ 19,025 Insurance and claims accruals 21,444 19,758 Accrued payroll 9,393 8,970 Income taxes payable 5,361 3,752 Other current liabilities 9,226 7,560 ---------------------- Total current liabilities 75,938 59,065 ---------------------- Long-term debt 30,000 30,000 Insurance and claims accruals 27,000 27,000 Other long-term liabilities 1,273 2,275 Deferred income taxes 84,012 82,500 Stockholders' equity 354,997 348,371 ---------------------- $573,220 $549,211 ====================== 4 WERNER ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended (In thousands) March 31 - --------------------------------------------------------------------------- 1997 1996 - --------------------------------------------------------------------------- (Unaudited) Cash flows from operating activities: Net income $ 7,449 $ 7,288 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 17,248 15,616 Deferred income taxes 1,512 2,090 Gain on disposal of operating equipment (1,256) (1,300) Long-term liabilities (1,002) - Changes in certain working capital items: Accounts receivable, net (8,108) 1,657 Prepaid expenses and other current assets 584 2,243 Accounts payable 11,489 507 Other current liabilities 5,384 2,186 ---------------------- Net cash provided by operating activities 33,300 30,287 ---------------------- Cash flows from investing activities: Additions to property and equipment (38,464) (19,491) Retirements of property and equipment 7,442 7,183 ---------------------- Net cash used in investing activities (31,022) (12,308) ---------------------- Cash flows from financing activities: Repayments of long-term debt - (10,000) Dividends on common stock (950) (755) Stock options exercised 127 119 ---------------------- Net cash used in financing activities (823) (10,636) ---------------------- Net increase in cash and cash equivalents 1,455 7,343 Cash and cash equivalents, beginning of period 22,136 16,227 ---------------------- Cash and cash equivalents, end of period $ 23,591 $ 23,570 ====================== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 458 $ 703 Income taxes 776 3,458 5 WERNER ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Commitments As of March 31, 1997, the Company has commitments for capital expenditures of approximately $45,000,000 (net cost, after revenue equipment trade-in allowances of approximately $13,000,000). 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. This report contains forward-looking statements which are based on information currently available to the Company's management. Actual results could differ materially from those anticipated in forward-looking statements as a result of a number of factors, including, but not limited to, those discussed in Item 7, "Management's Discussion and Analysis of Results of Operations and Financial Condition", of the Company's Annual Report on Form 10-K for the year ended December 31, 1996. Financial Condition: During the three months ended March 31, 1997, the Company generated cash flow from operations of $33.3 million. After the Company made net property additions, primarily revenue equipment, of $31 million and paid common stock dividends of $0.9 million, cash and cash equivalents increased by $1.5 million. If the Company continues to grow at a faster rate than in the prior year (as described below), additional debt borrowings may occur. Based on the Company's strong financial position, management foresees no significant barriers to obtaining sufficient financing, if necessary, to continue with its growth plans. Results of Operations: Three Months Ended March 31, 1997 and 1996 - ------------------------------------------ Operating revenues increased 16% for the three months ended March 31, 1997, compared to the same period of the prior year. A two cent per mile driver pay increase, effective January 1, 1997, helped the Company add and retain experienced drivers and contributed to a 12% increase in the average number of tractors compared to the same period of the prior year. The Company added 350 tractors to its fleet in first quarter 1997, compared to 250 for all of 1996. Revenue per mile, excluding a temporary fuel surcharge, increased about $.01 per mile as a result of rate increases and a 5% decrease in the percentage of empty miles. Average miles per tractor in service increased 0.3%. A $3.4 million increase in revenues from logistics and other non-trucking transportation services also contributed to the overall increase in operating revenues. Operating expenses, expressed as a percentage of operating revenues, were 93.3% for the three months ended March 31, 1997, compared to 91.7% for the three months ended March 31, 1996. Salaries, wages and benefits increased from 35.4% to 36.8% of revenues due primarily to the impact of a two cent per mile driver pay increase effective January 1, 1997. 7 Fuel increased from 9.0% to 10.0% of revenues, due mainly to higher average fuel prices at the beginning of the first quarter of 1997. Fuel prices at the end of first quarter 1997 were slightly lower than at the end of first quarter 1996. Fuel prices began rising at the end of first quarter 1996 and, for the most part, remained at elevated price levels during much of 1996 and the beginning of first quarter 1997. In April 1996, the Company began recovering the increased cost of fuel from customers via a temporary fuel surcharge. The amount of fuel surcharge recovered from customers typically varies as the price of fuel fluctuates on a weekly or monthly basis. The Company cannot predict whether the higher fuel prices will return or the extent to which fuel surcharges will be collected to offset such increases. Taxes and licenses decreased from 8.4% to 7.4% of revenues due primarily to refunds and favorable development of state tax issues. Depreciation decreased from 10.6% to 10.0% of revenues due to increased revenues from logistics and other non-trucking transportation services, which require significantly less capital investment than trucking services, and increased tractor utilization. Rent and purchased transportation increased from 15.5% to 16.1% of revenues due primarily to the Company's increase in logistics and other non-trucking transportation services. The Company's effective income tax rate (income taxes as a percentage of income before income taxes) was 34.6% and 39.0% for the three month periods ended March 31, 1997 and 1996, respectively. The decrease was due to favorable settlement of income tax issues. The Company's effective income tax rate is expected to continue at a lower rate for the remainder of 1997 compared to the effective income tax rate in 1996 due to the impact of the favorable settlement. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share." This statement establishes standards for computing and presenting earnings per share (EPS). It requires dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures. Currently, the Company presents a single disclosure of EPS. The standard is effective for financial statements for both interim and annual periods ending after December 15, 1997. Based on information currently available to management, the Company expects its diluted EPS will not differ materially from basic EPS. 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 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 12, 1997 By: /s/John J. Steele John J. Steele Vice President, Treasurer and Chief Financial Officer Date: May 12, 1997 By: /s/James L. Johnson James L. Johnson Corporate Secretary and Controller 9 EX-27 2
5 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 23,591 0 76,036 0 0 125,143 604,214 156,137 573,220 75,938 0 0 0 387 354,610 573,220 172,049 172,049 0 160,596 (386) 0 447 11,392 3,943 7,449 0 0 0 7,449 .20 .20
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