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J.B. Hunt Transport Services Annual Report, Year Ended Dec 31, 2000

Filing Date
Filed March 12, 2001
Period End
December 31, 2000
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 12, 2001. Cited figures are marked; the original filing is the authoritative source.

J.B.

Hunt Transport Services, Inc. (Nasdaq: JBHT) reported 2000 operating revenues of $2.16 billiona, up from $2.05 billion in 1999, but operating income fell to $63.4 million from $74.3 million and net earnings were $36.1 million, or $1.02 diluted EPS, compared with $31.9 million, or $.89 per diluted share, in 1999. The filing attributes the 2000 results to a 43.3% increase in fuel and fuel tax expense, driven by an approximate 35% higher cost per gallon, partly offset by fuel surcharges that recovered approximately 90% of higher fuel costs. Revenue growth was affected by the July 1, 2000 contribution of the JBL logistics business to Transplace.com, LLC, in which the company holds an approximate 27% membership interest accounted for under the equity method.

Excluding JBL, revenue growth for the remaining segments was approximately 15%. Segment results were mixed. The JBT dry-van truckload segment posted an operating loss of $7.1 millionb on $833.8 million of revenue, which the filing partly attributes to costs of separating JBT and JBI.

The JBI intermodal segment generated operating income of $36.7 millionc on $681.1 million of revenue, and the DCS dedicated contract services segment grew revenue 49% to $478.6 million with operating income of $28.4 million. The company also began using independent contractors in late 2000, with 16 leasing tractors at year end. Capital and dividend policy shifted in 2000.

Net cash from operations was $125 milliond, and the company relied increasingly on operating and capital leases for revenue equipment, with capital lease obligations of $94.2 million at year end. The board discontinued quarterly cash dividends in February 2000, and Moody's downgraded the senior unsecured debt to Baa3 in January 2001. Total debt and capitalized lease obligations were $401 million at year end.

02—Key points

Key Highlights

  1. Operating revenues rose to $2,160.4 million in 2000 from $2,045.1 million in 1999, while operating income declined to $63.4 million from $74.3 million.
  2. Diluted earnings per share were $1.02 in 2000, up from $.89 in 1999, with net earnings of $36.1 million versus $31.9 million.
  3. Fuel and fuel taxes rose 43.3% to $242.8 million, or 11.3% of revenue, driven by an approximate 35% higher cost per gallon; fuel surcharges recovered approximately 90% of higher fuel costs.
  4. The JBT truckload segment reported a $7.1 million operating loss on $833.8 million of revenue, while the JBI intermodal segment earned $36.7 million on $681.1 million of revenue.
  5. The DCS dedicated contract services segment revenue grew 49% to $478.6 million, with operating income of $28.4 million.
  6. The JBL logistics business was contributed to Transplace.com, LLC effective July 1, 2000, for an approximate 27% membership interest accounted for under the equity method.
  7. The board discontinued quarterly cash dividends in February 2000, and Moody's downgraded senior unsecured debt to Baa3 in January 2001.

03—Questions

Frequently Asked Questions

  1. Why did operating income decline in 2000 even though revenue increased?

    Operating income fell to $63.4 million from $74.3 million as total operating expenses rose 6.4% against a 5.6% revenue increase. The filing cites fuel and fuel tax expense, which rose 43.3% on a higher cost per gallon, and an operating loss of $7.1 million in the JBT truckload segment, which partly reflected costs to separate the JBT and JBI businesses.

  2. How did the Transplace.com contribution affect reported results?

    Effective July 1, 2000, the company contributed its JBL logistics business and $5 million of cash to Transplace.com, LLC for an approximate 27% membership interest. JBL generated $230 million of revenue and $8.1 million of operating income in the first half of 2000. The company's share of TPC results is reported as a one-line item, equity in earnings of associated companies, which totaled $440,000 in 2000.

  3. Did JBHT change its dividend policy?

    Yes. The board declared a $.05 per share quarterly dividend in January 2000, paid in February 2000, and on February 16, 2000 announced it would discontinue quarterly cash dividends. The filing states no dividends have been paid since February 2000.

  4. How is the company funding its equipment needs?

    Net cash provided by operating activities was $125 million in 2000. The company sold and leased back approximately $66 million of trailers in September 2000 and entered into capital leases for revenue equipment with a net book value of approximately $94 million. It had approximately $75.6 million of unused borrowing capacity and expected 2001 equipment spending to be funded from operations and existing borrowing facilities.

  5. What did the filing say about the balance sheet and credit ratings?

    Total debt and capitalized lease obligations were $401 million at December 31, 2000, compared with $328 million in 1999. Total debt to equity was .94. In January 2001, Moody's Investors Service downgraded senior unsecured debt to Baa3 from Baa2 and commercial paper to Prime-3 from Prime-2. The company stated it was in compliance with its financial covenants at year end.

04—Continue

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