01—Abstract
Summary
Summary of the 10-K filed February 25, 2011. Cited figures are marked; the original filing is the authoritative source.
J.B.
Hunt Transport Services, Inc. reported calendar 2010 operating revenues of $3,793 milliona (about $3.8 billion), up from $3,203 million in 2009, and net earnings of $199.6 million, or $1.56 per diluted share, versus $136.4 million, or $1.05 per diluted share, in 2009. The filing states that the increase in earnings was due to higher load count and increased activity in the JBI and DCS segments. The operating ratio improved to 90.8% from 92.3%.
Fuel surcharge revenues rose to $516 millionb from $326 million, and the filing notes that excluding fuel surcharge revenue, 2010 revenue increased 14% over 2009. The company generated $428 million in operating cash flow in 2010 and spent $262 million on property and equipment additions. It repurchased about 7.2 million shares for $251 million and issued $250 million of 3.375% senior notes due 2015.
Total debt was $654.2 millionc at year-end, against stockholders' equity of $573 million. The $200 million 5.31% senior notes mature in March 2011, and the company anticipates refinancing all or a portion of them. The company has committed to about $406 million of 2011 revenue equipment and facilities spending, net of expected sales proceeds.
The filing also discloses an increase in the quarterly dividend to $0.13d per share from $0.12, payable February 25, 2011. Segment revenue for 2010 was $2.14 billion for JBI, $907 million for DCS, $479 million for JBT and $291 million for ICS. The company identifies a class-action suit by California-based drivers over wage and meal and rest period claims, for which it says it cannot reasonably estimate the possible loss.
02—Key points
Key Highlights
- Revenue: Total operating revenues of $3.79 billion in 2010, up from $3.20 billion in 2009; JBI contributed $2.14 billion, DCS $907 million, JBT $479 million and ICS $291 million.
- Earnings: Net earnings of $199.6 million, or $1.56 per diluted share, compared with $136.4 million, or $1.05 per diluted share, in 2009.
- Operating ratio: Improved to 90.8% in 2010 from 92.3% in 2009.
- Cash flow and capital: Operating cash flow of $428 million; additions to property and equipment of $262 million.
- Shareholder returns: Repurchased about 7.2 million shares for $251 million in 2010; quarterly dividend raised to $0.13 per share from $0.12.
- Debt: Issued $250 million of 3.375% senior notes in September 2010; total debt of $654.2 million at December 31, 2010, including a $200 million note maturing March 2011.
- Legal: Defendant in class-action suits by California-based drivers over unpaid wages and meal and rest periods; the company cannot reasonably estimate a possible loss.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 25, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $3.79B$3.20B | +18.4% |
| Operating Expenses | $3.45B$2.96B | +16.6% |
| Operating Income | $347.63M$247.97M | +40.2% |
| Interest Expense | $28.01M$27.43M | +2.1% |
| Net Income | $199.62M$136.44M | +46.3% |
| EPS (Basic) | $1.60$1.08 | +48.1% |
| EPS (Diluted) | $1.56$1.05 | +48.6% |
| Shares Outstanding (Basic) | 124.71M126.68M | −1.6% |
| Shares Outstanding (Diluted) | 127.77M129.46M | −1.3% |
05—Questions
Frequently Asked Questions
How did J.B. Hunt's 2010 earnings compare with 2009?
Net earnings rose to $199.6 million, or $1.56 per diluted share, from $136.4 million, or $1.05 per diluted share, in 2009. The filing attributes the increase to higher load count and increased activity in the JBI and DCS segments, along with improved equipment utilization and pricing across all segments.
How much fuel surcharge revenue did the company generate?
Fuel surcharge revenues were $516 million in 2010, compared with $326 million in 2009. The filing states that excluding fuel surcharge revenue from both years, 2010 revenue increased 14% over 2009.
What debt obligations come due soon?
A $200 million 5.31% senior note matures in March 2011, and the company anticipates refinancing all or a portion of it. Other debt includes $200 million of 6.08% notes maturing in July 2014 and $250 million of 3.375% notes maturing in September 2015. The company had $5 million outstanding under its revolving line of credit at year-end.
What capital spending is planned for 2011?
The company is committed to spend approximately $406 million in 2011, net of proceeds from sales or trade-ins, primarily related to tractors, containers and chassis. The filing notes this amount is net of approximately $40 million of expected sales proceeds from equipment dispositions.
Is the dividend changing?
On February 3, 2011, the company announced an increase in its quarterly cash dividend from $0.12 to $0.13 per share, paid February 25, 2011, to stockholders of record on February 15, 2011. The company says it currently intends to continue paying quarterly dividends, but gives no assurance that future dividends will be paid.
06—Continue