Skip to content
AnalystLens

J.B. Hunt Transport Services Annual Report, Year Ended Dec 31, 1996

Filing Date
Filed February 26, 1997
Period End
December 31, 1996
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 February 26, 1997. Cited figures are marked; the original filing is the authoritative source.

J.B.

Hunt Transport Services, Inc. reported operating revenues of $1.49 billiona for fiscal 1996, up from $1.35 billion in 1995, and net earnings of $22.1 million, or $.58 per share, compared with a net loss of $2.2 million, or $(.06) per share, in 1995. The 1995 results included $17.3 million of special charges to write down idle and under-performing assets. The operating ratio improved to 95.9% from 98.4%, and operating income rose to $60.4 million from $21.3 million.

Growth came mainly from logistics management ($75.9 millionb revenue increase) and dedicated contract services ($16.3 million), while dry-van revenue rose $79.0 million. Purchased transportation, which rose 19%, was the largest cost driver tied to the growth in logistics and dedicated business. The company's balance sheet remained substantial, with total assets of $1.04 billion, long-term debt of $332.6 million, and stockholders' equity of $357.3 million.

Total debt was $382.3 millionc, and the total debt to equity ratio was 1.07. Net cash from operating activities was $143 million in 1996, and net capital expenditures declined to $129 million from $155 million. The company repurchased 1,159,100 shares during 1996 under an October 1996 authorization for up to 2.0 million shares, and it declared a quarterly dividend of $.05 per share in January 1997.

Management highlighted a planned driver compensation program effective February 25, 1997, which includes an average 33% wage increase for about 4,000 over-the-road van drivers. Management estimated the program would cost approximately $50.0 milliond per year, to be funded by shifting costs from driver recruiting and training, safety, and improved equipment utilization. The company also cited significantly higher accident rates in the first half of 1996, which led to a July 1996 decision to limit over-the-road tractor speeds to 59 miles per hour.

02—Key points

Key Highlights

  1. Operating revenues rose 10% to $1.49 billion in 1996 from $1.35 billion in 1995, led by logistics management and dry-van growth.
  2. Net earnings of $22.1 million ($.58 per share) in 1996, versus a net loss of $2.2 million ($(.06) per share) in 1995, which included $17.3 million of special charges.
  3. Operating ratio improved to 95.9% in 1996 from 98.4% in 1995 (97.1% in 1995 excluding special charges).
  4. Net cash provided by operating activities was $143 million in 1996; net capital expenditures declined to $129 million from $155 million.
  5. Total debt was $382.3 million at December 31, 1996, with a total debt to equity ratio of 1.07, and stockholders' equity was $357.3 million.
  6. The company repurchased 1,159,100 shares in 1996 and authorized repurchase of up to 2.0 million additional shares in October 1996.
  7. A driver compensation program effective February 25, 1997, includes an average 33% wage increase for about 4,000 over-the-road drivers, estimated at about $50.0 million per year.

03—Questions

Frequently Asked Questions

  1. How did J.B. Hunt perform financially in 1996 compared with 1995?

    Operating revenues increased to $1,486.7 million from $1,352.2 million, and net earnings were $22.1 million, or $.58 per share, compared with a net loss of $2.2 million, or $(.06) per share, in 1995. The 1995 results were affected by $17.3 million of special charges, and 1996 recorded no special charges.

  2. What drove revenue growth in 1996?

    Revenue growth came mainly from logistics management, which increased $75.9 million, and dry-van (including intermodal), which increased $79.0 million. Dedicated contract revenue increased $16.3 million, while other operations declined $36.7 million, reflecting a $32.2 million impact from the sale of special commodities and parcel management operations.

  3. What is the company's debt and liquidity position?

    At December 31, 1996, total debt was $382.3 million and long-term debt was $332.6 million. Commercial paper outstanding was $170 million under a program authorized up to $250 million. The company also had approximately $128 million of uncommitted lines of credit, none of which were outstanding at year-end. The working capital ratio was 1.03.

  4. What is the impact of the new driver compensation program?

    The program, effective February 25, 1997, includes an average 33% wage increase for about 4,000 over-the-road van drivers. Management estimated the cost at approximately $50.0 million per year and expects it to be funded by shifting costs out of driver recruiting and training, safety, and improved equipment utilization. The company expects a more stable and experienced workforce as a result.

  5. What shareholder return actions did the company take?

    The company declared and paid cash dividends of $.20 per share in both 1996 and 1995, and declared a quarterly dividend of $.05 per share in January 1997. It repurchased 1,159,100 shares in 1996 at prices from $14.13 to $16.63 per share, and the Board authorized the repurchase of up to 2.0 million shares in October 1996.

04—Continue

← View all 10-K filings