OMAHA, Neb.--(BUSINESS WIRE)--Jan. 29, 2015--
Werner Enterprises, Inc. (NASDAQ:WERN), one of the nation's largest
transportation and logistics companies, reported revenues and earnings
for the fourth quarter and year ended December 31, 2014.
Summarized financial results for fourth quarter and year 2014 compared
to fourth quarter and year 2013 are as follows (dollars in thousands,
except per share data):
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2014
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2013
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% Change
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2014
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2013
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% Change
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Total revenues
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$
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553,186
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$
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517,920
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7%
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$
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2,139,289
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$
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2,029,183
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5%
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Trucking revenues, net of fuel surcharge
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354,812
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332,592
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7%
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1,332,879
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1,287,656
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4%
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Value Added Services (“VAS”) revenues
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98,500
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91,234
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8% |
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390,645
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361,384
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8%
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Operating income
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52,627
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36,089
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46%
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160,088
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139,726
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15%
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Net income
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32,709
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22,175
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48%
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98,650
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86,785
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14%
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Earnings per diluted share
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0.45
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0.30
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49%
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1.36
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1.18
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15%
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We would like to take this opportunity to sincerely thank the dedicated
and hard working men and women of Werner Enterprises. Their unwavering
commitment to our customers by literally going the extra mile each and
every day is what enables us to produce these strong results.
Freight demand continued to be strong in fourth quarter 2014. Freight
demand (as measured by our daily morning ratio of loads available to
trucks available in our One-Way Truckload network, which includes the
medium-to-long-haul Van, Expedited and short-haul Regional fleets)
showed consistent strength, and we were overbooked (more available
freight than available trucks at the beginning of each business day)
throughout most of fourth quarter 2014. October 2014 demand was the
strongest October since the 2008 recession, and our freight demand
strengthened further, as expected, in the seasonally strong months of
November and December 2014. Fourth quarter 2013 freight demand showed
normal seasonal improvement in October and November, with some further
demand strengthening between Thanksgiving and Christmas. Freight demand
thus far in 2015 has followed typical seasonal patterns and is similar
to the same period of 2014.
An improving economy combined with constrained truck capacity is
contributing to improved freight demand. Truck capacity is challenged by
an increasingly competitive driver market and heightened regulatory cost
increases for truck ownership and safety; thus, we expect this favorable
demand trend relative to constrained supply will continue in 2015. There
are several new safety regulatory initiatives in process or scheduled
for implementation during 2015, and we anticipate they will further
tighten truck capacity.
Average revenues per tractor per week, net of fuel surcharge, increased
8.8% in fourth quarter 2014 compared to fourth quarter 2013. This
compares to year-over-year percentage improvements in average revenues
per tractor per week of 1.6% in first quarter 2014, 4.9% in second
quarter 2014, and 7.4% in third quarter 2014. Continued focus on
securing driver friendly, highly productive freight and improved freight
selection using our proprietary freight optimization system enabled us
to raise our average miles per truck by 4.1% compared to fourth quarter
2013. Average revenues per total mile, net of fuel surcharge, increased
4.4% in fourth quarter 2014 compared to fourth quarter 2013. Contractual
rate increases and improved freight mix combined with higher seasonal
capacity surcharges in the One-Way Truckload fleet were the primary
reasons for the rate improvement.
Several factors had a positive impact on our average revenues per
tractor per week and profitability, while at the same time reduced the
percentage increase in our revenue per total mile. Our average trip
length increased by 5.0% in fourth quarter 2014 compared to fourth
quarter 2013, and longer length of haul shipments generally have a lower
rate per mile due to productivity benefits. Noting the improved freight
market in fourth quarter 2014 compared to fourth quarter 2013, during
fourth quarter 2014 we accepted less brokerage freight (in which rates
are inclusive of fuel) and instead supported our customers with
additional capacity priced with a base rate per mile and a fuel
surcharge per mile. Finally, customer changes in fuel surcharge programs
had a neutral impact on profitability but an adverse effect on revenue
per total mile. A few large customers modified their fuel surcharge
programs to a "zero peg" in the last 12 months, which shifted revenues
from base rates to fuel surcharges.
We made continued progress implementing sustainable rate increases with
our customers during fourth quarter 2014. These efforts are ongoing as
we move forward in 2015 and work to recoup the cost increases associated
with more expensive equipment, a shrinking supply of qualified drivers
and an increasingly challenging regulatory environment. Strategic
customers understand the collective capacity and service challenges
facing our company and our industry and are increasingly supportive of
Werner's ongoing initiatives to provide sustainable transportation
solutions in support of their supply chain needs.
In fourth quarter 2014, we averaged 7,021 trucks in service in the
Truckload segment and 55 intermodal drayage trucks in the VAS segment.
We averaged 47 more trucks in service in fourth quarter 2014 than in
third quarter 2014 as compared to a decline of 43 trucks in service from
third quarter 2013 to fourth quarter 2013. We ended fourth quarter 2014
with 7,050 trucks in the Truckload segment and 55 intermodal drayage
trucks in the VAS segment. Our Specialized Services unit, primarily
Dedicated, ended the quarter with 3,690 trucks (or 52% of our total
Truckload segment fleet).
In periods of rapidly rising fuel prices, the Company's earnings have
been negatively impacted by the lag effect that occurs because the cost
of fuel rises immediately but the market indexes used to determine fuel
surcharges increase at a slower pace and only once per week. During
periods of rapidly declining fuel prices, the Company generally
experiences a temporary favorable earnings lag effect, since fuel costs
decline at a faster pace than the market indexes used to determine fuel
surcharges. This occurred in fourth quarter 2014 as the significant
decline in diesel fuel prices in the latter half of the quarter reduced
the Company's fuel expense while lowering fuel surcharge revenues by a
lesser amount.
Diesel fuel prices were 55 cents per gallon lower in fourth quarter 2014
than in fourth quarter 2013 and were 42 cents per gallon lower than in
third quarter 2014. For the first 29 days of January 2015, the average
diesel fuel price per gallon was $1.38 lower than the average diesel
fuel price per gallon in the same period of 2014 and $1.48 lower than in
first quarter 2014. The components of the Company's total fuel cost
consist of and are recorded in our income statement as follows: (i) Fuel
(fuel expense for company trucks excluding federal and state fuel
taxes); (ii) Taxes and Licenses (federal and state fuel taxes); and
(iii) Rent and Purchased Transportation (fuel component of our
independent contractor costs, including the base cost of fuel and
additional fuel surcharge reimbursement for costs exceeding the fuel
base).
We continue to invest in equipment solutions to improve the safety,
operational efficiency and fuel miles per gallon of our fleet. We
increased our capital expenditures in the second half of 2014 to lower
the average age of our truck fleet, and attained an average age of 2.2
years as of December 31, 2014. Net capital expenditures in 2014 were
$212.3 million. We estimate net capital expenditures for 2015 to be in
the range of $275 to $325 million, which we expect will enable us to
further reduce the average age of our truck fleet to under two years. We
remain committed to investing in a best in class fleet for the benefit
of our customers, our drivers and the Werner brand.
The driver recruiting and retention market was difficult during fourth
quarter 2014. In mid-August 2014, we increased pay by varying percentage
amounts for many drivers in certain fleets within our One-Way Truckload
unit. After these driver pay changes, our driver and truck count
recovered and increased from July 2014 levels. Additionally over the
last several months, we increased driver pay in multiple Dedicated
fleets, most of which were funded by customer rate increases to ensure
capacity. However, significant problematic market factors remain
including a declining number of, and increased competition for, driver
training school graduates, a gradually declining national unemployment
rate and job competition from the housing construction and manufacturing
industries. We expect that competition for drivers will remain high in
the coming months.
Gains on sales of assets were $5.0 million in fourth quarter 2014. This
compares to gains on sales of assets of $3.7 million in fourth quarter
2013, which included a $0.7 million gain from the sale of real estate,
and $4.5 million in third quarter 2014. In fourth quarter 2014, we
realized higher average gains per truck and trailer and sold more trucks
and trailers compared to fourth quarter 2013. Gains on sales of assets
are reflected as a reduction of Other Operating Expenses in our income
statement.
Our effective income tax rate in fourth quarter 2014 was 38.0%, lower
than the expected rate of 40.3%. Tax legislation enacted in December
2014 retroactively reinstated certain qualifying tax credits only for
2014, thereby reducing the Company’s fourth quarter 2014 income tax rate.
To provide shippers with additional sources of managed capacity and
network analysis, we continue to grow our non-asset-based VAS segment.
VAS includes Brokerage, Freight Management, Intermodal and Werner Global
Logistics (International).
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2014
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2013
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2014
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2013
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Value Added Services (amounts in thousands)
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$
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%
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$
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%
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$
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%
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$
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%
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Operating revenues
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$
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98,500
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100.0
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$
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91,234
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100.0
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$
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390,645
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100.0
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$
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361,384
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100.0
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Rent and purchased transportation expense
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85,100
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86.4
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78,172
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85.7
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338,625
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86.7
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305,582
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84.6
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Gross margin
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13,400
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13.6
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13,062
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14.3
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52,020
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13.3
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55,802
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15.4
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Other operating expenses
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10,997
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11.2
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10,693
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11.7
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44,485
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11.4
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41,138
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11.3
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Operating income
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$
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2,403
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2.4
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$
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2,369
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2.6
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$
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7,535
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1.9
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$
|
14,664
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4.1
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In fourth quarter 2014, VAS revenues increased $7.3 million or 8%, and
operating income dollars increased by 1%, compared to fourth quarter
2013. Operating income in fourth quarter 2014 of $2.4 million improved
sequentially compared to operating income of $1.0 million in third
quarter 2014. During fourth quarter 2014, we addressed several customer
pricing, contractual and operational issues within VAS with the goal of
gradually improving VAS financial performance in 2015.
Comparisons of the operating ratios for the Truckload segment (net of
fuel surcharge revenues of $81.2 million and $86.9 million in fourth
quarters 2014 and 2013, respectively, and $349.8 million and $354.6
million in 2014 and 2013 periods, respectively) and the VAS segment are
shown below.
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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Operating Ratios
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2014
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2013
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Difference
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2014
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2013
|
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Difference
|
Truckload Transportation Services
|
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84.8%
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|
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89.8%
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(5.0)%
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88.7%
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|
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90.8%
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(2.1)%
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Value Added Services
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|
97.6%
|
|
|
|
97.4%
|
|
|
|
0.2
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|
|
|
98.1%
|
|
|
|
95.9%
|
|
|
|
2.2%
|
|
|
|
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|
|
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|
Fluctuating fuel prices and fuel surcharge collections impact the total
company operating ratio and the Truckload segment's operating ratio when
fuel surcharges are reported on a gross basis as revenues versus netting
against fuel expenses. Eliminating fuel surcharge revenues, which are
generally a more volatile source of revenue, provides a more consistent
basis for comparing the results of operations from period to period. The
Truckload segment's operating ratios for fourth quarter 2014 and fourth
quarter 2013 are 87.6% and 91.9%, respectively, and for 2014 and 2013
are 91.0% and 92.8%, respectively, when fuel surcharge revenues are
reported as revenues instead of a reduction of operating expenses.
Our financial position remains strong. As of December 31, 2014, we had
$75.0 million of debt outstanding and $833.9 million of stockholders'
equity. During 2014, the Company purchased 1,200,000 shares of its
common stock for a total cost of $30.6 million.
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INCOME STATEMENT
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(Unaudited)
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(In thousands, except per share amounts)
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
$
|
|
|
%
|
|
|
$
|
|
|
%
|
|
|
$
|
|
|
%
|
|
|
|
$
|
|
|
%
|
Operating revenues
|
|
|
$
|
553,186
|
|
|
|
100.0
|
|
|
|
$
|
517,920
|
|
|
|
100.0
|
|
|
|
$
|
2,139,289
|
|
|
|
100.0
|
|
|
|
$
|
2,029,183
|
|
|
|
100.0
|
|
Operating expenses:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
155,581
|
|
|
|
28.1
|
|
|
|
|
139,244
|
|
|
|
26.9
|
|
|
|
|
584,006
|
|
|
|
27.3
|
|
|
|
|
545,419
|
|
|
|
26.9
|
|
Fuel
|
|
|
|
76,032
|
|
|
|
13.7
|
|
|
|
|
91,915
|
|
|
|
17.7
|
|
|
|
|
346,058
|
|
|
|
16.2
|
|
|
|
|
371,789
|
|
|
|
18.3
|
|
Supplies and maintenance
|
|
|
|
48,169
|
|
|
|
8.7
|
|
|
|
|
45,572
|
|
|
|
8.8
|
|
|
|
|
188,437
|
|
|
|
8.8
|
|
|
|
|
179,172
|
|
|
|
8.8
|
|
Taxes and licenses
|
|
|
|
21,905
|
|
|
|
4.0
|
|
|
|
|
21,928
|
|
|
|
4.2
|
|
|
|
|
85,468
|
|
|
|
4.0
|
|
|
|
|
86,686
|
|
|
|
4.3
|
|
Insurance and claims
|
|
|
|
21,200
|
|
|
|
3.8
|
|
|
|
|
17,342
|
|
|
|
3.3
|
|
|
|
|
80,375
|
|
|
|
3.7
|
|
|
|
|
71,177
|
|
|
|
3.5
|
|
Depreciation
|
|
|
|
45,106
|
|
|
|
8.2
|
|
|
|
|
45,709
|
|
|
|
8.8
|
|
|
|
|
176,984
|
|
|
|
8.3
|
|
|
|
|
173,019
|
|
|
|
8.5
|
|
Rent and purchased transportation
|
|
|
|
125,004
|
|
|
|
22.6
|
|
|
|
|
117,856
|
|
|
|
22.8
|
|
|
|
|
498,782
|
|
|
|
23.3
|
|
|
|
|
456,885
|
|
|
|
22.5
|
|
Communications and utilities
|
|
|
|
3,623
|
|
|
|
0.7
|
|
|
|
|
3,423
|
|
|
|
0.7
|
|
|
|
|
14,220
|
|
|
|
0.7
|
|
|
|
|
13,506
|
|
|
|
0.7
|
|
Other
|
|
|
|
3,939
|
|
|
|
0.7
|
|
|
|
|
(1,158)
|
|
|
|
(0.2)
|
|
|
|
|
4,871
|
|
|
|
0.2
|
|
|
|
|
(8,196)
|
|
|
|
(0.4)
|
|
Total operating expenses
|
|
|
|
500,559
|
|
|
|
90.5
|
|
|
|
|
481,831
|
|
|
|
93.0
|
|
|
|
|
1,979,201
|
|
|
|
92.5
|
|
|
|
|
1,889,457
|
|
|
|
93.1
|
|
Operating income
|
|
|
|
52,627
|
|
|
|
9.5
|
|
|
|
|
36,089
|
|
|
|
7.0
|
|
|
|
|
160,088
|
|
|
|
7.5
|
|
|
|
|
139,726
|
|
|
|
6.9
|
|
Other expense (income):
|
|
|
|
|
|
|
Interest expense
|
|
|
|
511
|
|
|
|
0.1
|
|
|
|
|
118
|
|
|
|
—
|
|
|
|
|
881
|
|
|
|
—
|
|
|
|
|
454
|
|
|
|
—
|
|
Interest income
|
|
|
|
(609)
|
|
|
|
(0.1)
|
|
|
|
|
(640)
|
|
|
|
(0.1)
|
|
|
|
|
(2,538)
|
|
|
|
(0.1)
|
|
|
|
|
(2,269)
|
|
|
|
(0.1)
|
|
Other
|
|
|
|
(31)
|
|
|
|
—
|
|
|
|
|
(43)
|
|
|
|
—
|
|
|
|
|
(29)
|
|
|
|
—
|
|
|
|
|
(170)
|
|
|
|
—
|
|
Total other expense (income)
|
|
|
|
(129
)
|
|
|
|
—
|
|
|
|
|
(565)
|
|
|
|
(0.1)
|
|
|
|
|
(1,686
|
|
|
|
(0.1)
|
|
|
|
|
(1,985)
|
|
|
|
(0.1)
|
|
Income before income taxes
|
|
|
|
52,756
|
|
|
|
9.5
|
|
|
|
|
36,654
|
|
|
|
7.1
|
|
|
|
|
161,774
|
|
|
|
7.6
|
|
|
|
|
141,711
|
|
|
|
7.0
|
|
Income taxes
|
|
|
|
20,047
|
|
|
|
3.6
|
|
|
|
|
14,479
|
|
|
|
2.8
|
|
|
|
|
63,124
|
|
|
|
3.0
|
|
|
|
|
54,926
|
|
|
|
2.7
|
|
Net income
|
|
|
$
|
32,709
|
|
|
|
5.9
|
|
|
|
$
|
22,175
|
|
|
|
4.3
|
|
|
|
$
|
98,650
|
|
|
|
4.6
|
|
|
|
$
|
86,785
|
|
|
|
4.3
|
|
Diluted shares outstanding
|
|
|
|
72,508
|
|
|
|
|
|
|
|
73,142
|
|
|
|
|
|
|
|
72,738
|
|
|
|
|
|
|
|
73,428
|
|
|
|
|
Diluted earnings per share
|
|
|
$
|
0.45
|
|
|
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
$
|
1.36
|
|
|
|
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload Transportation Services
|
|
|
|
|
|
|
|
|
$
|
440,943
|
|
|
|
$
|
423,412
|
|
|
|
$
|
1,702,137
|
|
|
|
$
|
1,657,854
|
|
Value Added Services
|
|
|
|
|
|
|
|
|
|
98,500
|
|
|
|
|
91,234
|
|
|
|
|
390,645
|
|
|
|
|
361,384
|
|
Other
|
|
|
|
|
|
|
|
|
|
13,473
|
|
|
|
|
3,847
|
|
|
|
|
46,588
|
|
|
|
|
11,342
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
728
|
|
|
|
|
414
|
|
|
|
|
2,803
|
|
|
|
|
3,081
|
|
Subtotal
|
|
|
|
|
|
|
|
|
|
553,644
|
|
|
|
|
518,907
|
|
|
|
|
2,142,173
|
|
|
|
|
2,033,661
|
|
Inter-segment eliminations (1)
|
|
|
|
|
|
|
|
|
|
(458)
|
|
|
|
|
(987)
|
|
|
|
|
(2,884)
|
|
|
|
|
(4,478)
|
|
Total
|
|
|
|
|
|
|
|
|
$
|
553,186
|
|
|
|
$
|
517,920
|
|
|
|
$
|
2,139,289
|
|
|
|
$
|
2,029,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload Transportation Services
|
|
|
|
|
|
|
|
|
$
|
54,754
|
|
|
|
$
|
34,439
|
|
|
|
$
|
152,992
|
|
|
|
$
|
119,597
|
|
Value Added Services
|
|
|
|
|
|
|
|
|
|
2,403
|
|
|
|
|
2,369
|
|
|
|
|
7,535
|
|
|
|
|
14,664
|
|
Other
|
|
|
|
|
|
|
|
|
|
(5,236)
|
|
|
|
|
470
|
|
|
|
|
(3,991)
|
|
|
|
|
3,947
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
706
|
|
|
|
|
(1,189)
|
|
|
|
|
3,552
|
|
|
|
|
1,518
|
|
Total
|
|
|
|
|
|
|
|
|
$
|
52,627
|
|
|
|
$
|
36,089
|
|
|
|
$
|
160,088
|
|
|
|
$
|
139,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Inter-segment eliminations represent transactions between
reporting segments that are eliminated in consolidation.
|
|
|
|
|
|
|
|
|
OPERATING STATISTICS BY SEGMENT
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
Truckload Transportation Services segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average percentage of empty miles
|
|
|
|
12.08%
|
|
|
|
|
11.91%
|
|
|
|
1.4%
|
|
|
|
|
12.06%
|
|
|
|
|
12.54%
|
|
|
|
(3.8)%
|
|
Average trip length in miles (loaded)
|
|
|
|
484
|
|
|
|
|
461
|
|
|
|
5.0%
|
|
|
|
|
473
|
|
|
|
|
453
|
|
|
|
4.4%
|
|
Average tractors in service
|
|
|
|
7,021
|
|
|
|
|
7,157
|
|
|
|
(1.9)%
|
|
|
|
|
7,013
|
|
|
|
|
7,162
|
|
|
|
(2.1)%
|
|
Average revenues per tractor per week (1)
|
|
|
$
|
3,888
|
|
|
|
$
|
3,575
|
|
|
|
8.8%
|
|
|
|
$
|
3,655
|
|
|
|
$
|
3,457
|
|
|
|
5.7%
|
|
Total trailers (at quarter end)
|
|
|
|
22,305
|
|
|
|
|
21,980
|
|
|
|
|
|
|
|
22,305
|
|
|
|
|
21,980
|
|
|
|
|
Total tractors (at quarter end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
|
|
6,400
|
|
|
|
|
6,380
|
|
|
|
|
|
|
|
6,400
|
|
|
|
|
6,380
|
|
|
|
|
Independent contractor
|
|
|
|
650
|
|
|
|
|
670
|
|
|
|
|
|
|
|
650
|
|
|
|
|
670
|
|
|
|
|
Total tractors
|
|
|
|
7,050
|
|
|
|
|
7,050
|
|
|
|
|
|
|
|
7,050
|
|
|
|
|
7,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value Added Services segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total VAS shipments
|
|
|
|
73,622
|
|
|
|
|
71,471
|
|
|
|
3.0%
|
|
|
|
|
285,153
|
|
|
|
|
277,430
|
|
|
|
2.8%
|
|
Less: Non-committed shipments to truckload segment
|
|
|
|
16,299
|
|
|
|
|
17,299
|
|
|
|
(5.8)%
|
|
|
|
|
71,963
|
|
|
|
|
75,852
|
|
|
|
(5.1)%
|
|
Net VAS shipments
|
|
|
|
57,323
|
|
|
|
|
54,172
|
|
|
|
5.8%
|
|
|
|
|
213,190
|
|
|
|
|
201,578
|
|
|
|
5.8%
|
|
Average revenue per shipment
|
|
|
$
|
1,617
|
|
|
|
$
|
1,560
|
|
|
|
3.6%
|
|
|
|
$
|
1,696
|
|
|
|
$
|
1,627
|
|
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tractors in service
|
|
|
|
55
|
|
|
|
|
50
|
|
|
|
|
|
|
|
50
|
|
|
|
|
45
|
|
|
|
|
Total trailers (at quarter end)
|
|
|
|
1,670
|
|
|
|
|
1,725
|
|
|
|
|
|
|
|
1,670
|
|
|
|
|
1,725
|
|
|
|
|
Total tractors (at quarter end)
|
|
|
|
55
|
|
|
|
|
49
|
|
|
|
|
|
|
|
55
|
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of fuel surcharge revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION
|
|
|
|
|
(Unaudited)
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Capital expenditures, net
|
|
|
|
$
|
65,455
|
|
|
|
$
|
45,448
|
|
|
|
$
|
212,294
|
|
|
|
$
|
151,916
|
|
Cash flow from operations
|
|
|
|
|
41,354
|
|
|
|
|
61,366
|
|
|
|
|
206,565
|
|
|
|
|
232,457
|
|
Return on assets (annualized)
|
|
|
|
|
8.9%
|
|
|
|
|
6.5%
|
|
|
|
|
7.0%
|
|
|
|
|
6.5%
|
|
Return on equity (annualized)
|
|
|
|
|
15.9%
|
|
|
|
|
11.6%
|
|
|
|
|
12.4%
|
|
|
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEET
|
|
|
|
(In thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
22,604
|
|
|
|
$
|
23,678
|
|
Accounts receivable, trade, less allowance of $10,017 and $9,939,
respectively
|
|
|
|
266,727
|
|
|
|
|
231,647
|
|
Other receivables
|
|
|
|
20,316
|
|
|
|
|
10,769
|
|
Inventories and supplies
|
|
|
|
17,824
|
|
|
|
|
15,743
|
|
Prepaid taxes, licenses and permits
|
|
|
|
14,914
|
|
|
|
|
15,064
|
|
Current deferred income taxes
|
|
|
|
34,066
|
|
|
|
|
25,315
|
|
Income taxes receivable
|
|
|
|
23,435
|
|
|
|
|
3,346
|
|
Other current assets
|
|
|
|
26,458
|
|
|
|
|
24,099
|
|
Total current assets
|
|
|
|
426,344
|
|
|
|
|
349,661
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
|
|
1,786,229
|
|
|
|
|
1,727,737
|
|
Less – accumulated depreciation
|
|
|
|
772,447
|
|
|
|
|
750,219
|
|
Property and equipment, net
|
|
|
|
1,013,782
|
|
|
|
|
977,518
|
|
|
|
|
|
|
|
|
Other non-current assets
|
|
|
|
40,336
|
|
|
|
|
26,918
|
|
Total assets
|
|
|
$
|
1,480,462
|
|
|
|
$
|
1,354,097
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
64,827
|
|
|
|
$
|
66,678
|
|
Insurance and claims accruals
|
|
|
|
73,814
|
|
|
|
|
59,811
|
|
Accrued payroll
|
|
|
|
28,121
|
|
|
|
|
22,785
|
|
Other current liabilities
|
|
|
|
19,768
|
|
|
|
|
18,457
|
|
Total current liabilities
|
|
|
|
186,530
|
|
|
|
|
167,731
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
|
75,000
|
|
|
|
|
40,000
|
|
Other long-term liabilities
|
|
|
|
20,021
|
|
|
|
|
14,710
|
|
Insurance and claims accruals, net of current portion
|
|
|
|
123,445
|
|
|
|
|
131,900
|
|
Deferred income taxes
|
|
|
|
241,606
|
|
|
|
|
227,237
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Common stock, $.01 par value, 200,000,000 shares authorized;
80,533,536 shares issued; 72,038,368 and 72,713,920 shares
outstanding, respectively
|
|
|
|
805
|
|
|
|
|
805
|
|
Paid-in capital
|
|
|
|
101,803
|
|
|
|
|
98,534
|
|
Retained earnings
|
|
|
|
915,085
|
|
|
|
|
830,842
|
|
Accumulated other comprehensive loss
|
|
|
|
(9,375)
|
|
|
|
|
(4,631)
|
|
Treasury stock, at cost; 8,495,168 and 7,819,616 shares, respectively
|
|
|
|
(174,458)
|
|
|
|
|
(153,031)
|
|
Total stockholders’ equity
|
|
|
|
833,860
|
|
|
|
|
772,519
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,480,462
|
|
|
|
$
|
1,354,097
|
|
|
|
|
|
|
|
|
|
|
|
|
Werner Enterprises, Inc. was founded in 1956 and is a premier
transportation and logistics company, with coverage throughout North
America, Asia, Europe, South America, Africa and Australia. Werner
maintains its global headquarters in Omaha, Nebraska and maintains
offices in the United States, Canada, Mexico, China and Australia.
Werner is among the five largest truckload carriers in the United
States, with a diversified portfolio of transportation services that
includes dedicated van, temperature-controlled and flatbed;
medium-to-long-haul, regional and local van; and expedited services.
Werner's Value Added Services portfolio includes freight management,
truck brokerage, intermodal, and international services. International
services are provided through Werner's domestic and global subsidiary
companies and include ocean, air and ground transportation; freight
forwarding; and customs brokerage.
Werner Enterprises, Inc.'s common stock trades on The NASDAQ Global
Select MarketSM under the symbol “WERN”. For further
information about Werner, visit the Company's website at www.werner.com.
This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. Such forward-looking
statements are based on information presently available to the Company's
management and are current only as of the date made. Actual results
could also differ materially from those anticipated as a result of a
number of factors, including, but not limited to, those discussed in the
Company's Annual Report on Form 10-K for the year ended December 31,
2013.
For those reasons, undue reliance should not be placed on any
forward-looking statement. The Company assumes no duty or obligation to
update or revise any forward-looking statement, although it may do so
from time to time as management believes is warranted or as may be
required by applicable securities law. Any such updates or revisions may
be made by filing reports with the U.S. Securities and Exchange
Commission, through the issuance of press releases or by other methods
of public disclosure.
Source: Werner Enterprises, Inc.
Werner Enterprises, Inc.
John J. Steele, 402-894-3036
Executive
Vice President, Treasurer and Chief Financial Officer