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J.B. Hunt Transport Services Annual Report, Year Ended Dec 31, 1994

Filing Date
Filed March 29, 1995
Period End
December 31, 1994
Security
JBHT
In the record · 2016–202610-K1110-Q348-K102

JBHT filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 102 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Material agreement8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 29, 1995. Cited figures are marked; the original filing is the authoritative source.

J.B.

Hunt Transport Services, Inc. (Nasdaq: JBHT), an Arkansas holding company, reported operating revenues of $1.21 billiona for fiscal 1994, up from $1.02 billion in 1993, and net earnings of $40.4 million, or $1.05 per share, versus $38.2 million, or $1.00 per share, the prior year. The company describes itself as the largest publicly-held truckload carrier in the United States, and its growth was driven by intermodal dry van volume, specialized carrier operations and logistics and dedicated contract services. Purchased transportation rose sharply to $288.2 million from $187.7 million, reflecting intermodal and third-party growth, while depreciation rose 33% to $110.7 million, and operating income increased to $84.9 million from $78.6 million.

The balance sheet expanded, with total assets of $993.7 millionb and stockholders' equity of $377.9 million at year-end 1994. Long-term debt was $299.2 million, and current maturities of long-term debt rose to $68.1 million, largely from commercial paper supporting the $250 million program. Net capital expenditures were $219 million in 1994, and management expects capital spending to decline in 1995 because more than 70% of the dry van fleet has been converted to new containers.

Commitments to purchase approximately $160 millionc of revenue and service equipment were outstanding at year-end. The company paid quarterly dividends of $.05 per share, totaling $.20 for 1994, and reported 2,032 stockholders of record as of February 28, 1995. Management described employee relations as excellent, while the company noted it had experienced driver shortages during the first half of 1994 and higher driver recruitment costs.

02—Key points

Key Highlights

  1. Operating revenues rose 18% to $1.21 billion in 1994, driven by intermodal dry van volume, specialized carrier operations and logistics and dedicated contract services.
  2. Net earnings were $40.4 million, or $1.05 per share, compared with $38.2 million, or $1.00 per share, in 1993.
  3. Operating income increased to $84.9 million from $78.6 million, while the operating ratio improved slightly, with operating expenses at 93.0% of revenue versus 92.3% in 1993.
  4. Purchased transportation expense increased 53% to $288.2 million, reflecting growth in intermodal and third-party services.
  5. Net capital expenditures were $219 million in 1994, and management expects capital spending to decline in 1995 as more than 70% of the dry van fleet is converted to new containers.
  6. Total assets reached $993.7 million, and long-term debt was $299.2 million at December 31, 1994.
  7. Quarterly dividend of $.05 per share was declared in January 1995, with annual dividends of $.20 per share paid in both 1994 and 1993.

03—Questions

Frequently Asked Questions

  1. What drove the increase in revenue in 1994?

    The filing attributes the $187 million revenue increase to $89 million from logistics and dedicated contract services, $71 million of dry van volume, including intermodal revenue, and $27 million from other specialized carrier operations. Intermodal revenue increased 37% in 1994.

  2. Why did depreciation and purchased transportation expenses rise so sharply?

    Depreciation increased 33% in 1994 due to significantly lower gains on the disposition of revenue equipment and an 18% increase in the number of trailers and containers. Purchased transportation rose on growth of intermodal and third-party transportation services.

  3. How is the company funding its capital spending?

    The company funded 1994 capital expenditures with proceeds from long-term debt, a 1992 secondary stock offering and cash from operations. It expects to fund future spending from operating cash flow and long-term debt proceeds. Cash provided by operating activities was $171.3 million in 1994.

  4. What were the company's debt levels and related obligations at year-end 1994?

    Long-term debt was $299.2 million, with current maturities of $68.1 million. Commercial paper outstanding was $182.6 million under a program authorized for up to $250 million. The company had committed to purchase approximately $160 million of revenue and service equipment, net of $15 million in expected proceeds.

  5. What did management say about the driver shortage and employee relations?

    The company experienced a shortage of qualified drivers during the first half of 1994, which led to higher driver advertising and recruitment costs. Management stated that its relationship with all employees is excellent. JBH employed 11,837 people at December 31, 1994, including 8,667 drivers.

04—Continue

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