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Werner Enterprises Reports First Quarter 2020 Results

April, 28, 2020

First Quarter 2020 Highlights (all metrics compared to first quarter 2019 unless otherwise noted)

  • Total revenues of $592.7 million, down 1%
  • Operating income of $31.1 million, down 35%; non-GAAP adjusted operating income of $37.3 million, down 24%
  • Operating margin of 5.2%, down 290 basis points (bps); non-GAAP adjusted operating margin of 6.3%, down 190 bps
  • Diluted EPS of $0.33, down 35%; non-GAAP adjusted diluted EPS of $0.40, down 24%

OMAHA, Neb., April 28, 2020 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, today reported financial results for the first quarter ended March 31, 2020.

“Our lives were profoundly impacted beginning in March with the unprecedented COVID-19 pandemic,” said Derek J. Leathers, President and Chief Executive Officer. “Our heartfelt thoughts go out to those directly impacted by this global pandemic and their family members, the medical professionals, the first responders and all other essential workers who are bravely and heroically combatting this virus under very difficult circumstances.

“I would like to thank the men and women of Werner who are relentlessly focused, determined and 100 percent committed to serve during this challenging time. Our front-line professional drivers and mechanics take tremendous pride in being an essential service provider and safely delivering America’s freight on-time and damage-free, while protecting their safety and health. In these challenging times, our non-driver associates continue to step up in numerous ways to remain productive and efficient, while ensuring the needs of our customers and drivers are being met. We remain focused, flexible and strategic as we constantly adjust and adapt to the changes affecting our business and associates. As we adapt to changing COVID-19 developments, we are deploying and executing our plans by being rational, logical and above all compassionate.

“Our results in first quarter 2020 reflect freight demand that was slightly below the same period a year ago.  Following the pandemic declaration on March 11, we experienced above normal demand for two to three weeks as consumers purchased essential products for their homes. This led to demand for the full month of March 2020 being comparable to March a year ago.

“April 2020 freight demand has held up fairly well so far, with some expected gradual weakening given that many parts of the U.S. economy are shut down or have been significantly curtailed. Our freight base is designed to more effectively manage through what we anticipate will be an extremely difficult economic environment in second quarter 2020, as a significant portion of our revenues come from delivering essential goods and products. 62% of revenues from our top 100 customers (85% of revenues in first quarter 2020) came from the discount retail, home improvement retail, food and beverage or consumer packaged goods verticals.”

Total revenues for the quarter decreased 1% to $592.7 million versus the prior year quarter, primarily attributable to lower Logistics and fuel surcharge revenues, partially offset by an increase in dedicated fleet revenues.

Operating income of $31.1 million decreased $17.0 million, or 35%. Operating margin of 5.2% decreased 290 basis points due to a more challenging freight and rate market in One-Way Truckload and Logistics. In addition, as previously disclosed, we had a serious truck accident claim in first quarter 2020. As a result, we accrued insurance and claims expense of $10.0 million for this accident, that is included in our GAAP and non-GAAP financial results. Our GAAP results also included $5.0 million of additional depreciation expense related to a change in estimated life of certain trucks expected to be sold in 2020. On a non-GAAP basis, adjusted operating income of $37.3 million decreased $11.9 million, or 24%. Adjusted operating margin of 6.3% declined 190 basis points from 8.2% for the same quarter last year.

Interest expense of $1.6 million was $0.7 million higher, or a $0.01 increase per share, due to higher average borrowings. The effective income tax rate during the quarter was 23.3% compared to 25.1% in first quarter 2019, or a $0.01 per share favorable impact. The current quarter tax rate was lower than our expected range of 25% to 26% because of a favorable discrete income tax item.

Net income of $23.1 million decreased 36%. On a non-GAAP basis, adjusted net income declined 25% to $27.7 million compared to $36.9 million for the same quarter last year. Diluted earnings per share (EPS) for the quarter of $0.33 decreased 35%. On a non-GAAP basis, adjusted diluted EPS of $0.40 decreased 24% compared to $0.52 in first quarter 2019.

Key Consolidated Financial Metrics

  Three Months Ended
March 31,
(In thousands, except per share amounts) 2020   2019   Y/Y Change
Total revenues $ 592,703     $ 596,117     (1 )%
Truckload Transportation Services revenues 464,863     462,891     0 %
Werner Logistics revenues 112,164     117,370     (4 )%
Operating income 31,066     48,019     (35 )%
Operating margin 5.2 %   8.1 %   (290 ) bps
Net income 23,058     36,086     (36 )%
Diluted earnings per share 0.33     0.51     (35 )%
             
Adjusted operating income (1) 37,278     49,169     (24 )%
Adjusted operating margin (1) 6.3 %   8.2 %   (190 ) bps
Adjusted net income (1) 27,686     36,946     (25 )%
Adjusted diluted earnings per share (1) 0.40     0.52     (24 )%

(1) See GAAP to non-GAAP reconciliation schedule.

Truckload Transportation Services (TTS) Segment

  • Revenues of $464.9 million increased $2.0 million
  • Operating income of $29.1 million decreased $13.9 million, or 32%; non-GAAP adjusted operating income of $35.3 million decreased $8.8 million, or 20%
  • Operating margin of 6.3% decreased 300 basis points from 9.3%; non-GAAP adjusted operating margin of 7.6% decreased 190 basis points from 9.5%
  • Average segment trucks in service totaled 7,862, a decrease of 25 trucks year over year
  • Dedicated unit trucks at quarter end totaled 4,685, or 60% of the total TTS segment fleet, compared to 4,560 trucks, or 57%, a year ago

Revenues increased $2.0 million due to a 3.2% increase in average revenues per truck, offset by a $7.1 million decrease in fuel surcharge revenues and a 0.3% decrease in average trucks in service. The average revenues per truck increase was due primarily to an improvement in average miles per truck and to a lesser extent an increase in average revenues per total mile. The increase in average revenues per total mile was due primarily to relative strength in Dedicated pricing, mostly offset by a 3.7% decrease in One-Way Truckload pricing.

As we referenced in our COVID-19 Business Update on March 26, 2020, our results in first quarter 2020 in our One-Way Truckload fleet included freight demand in January and February that was seasonally normal and slightly lower than the same period a year ago. March 2020 freight demand was comparable to March 2019, and demand strengthened during the last two to three weeks of March 2020.

In our Dedicated fleet, freight demand remained steady in first quarter 2020 with above normal demand in March for store replenishment, primarily due to customer inventory restocking following consumers buying essential products for their households after the pandemic declaration.

During first quarter 2020, we changed the estimated life of certain trucks currently expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market. The effect of this change in accounting estimate increased first quarter 2020 depreciation expense by $5.0 million, or five cents per share. These trucks will continue to depreciate at the same higher rate per truck until the trucks are sold.  This expense is included in GAAP earnings per share and is adjusted as a non-GAAP item due to the unusual and infrequent nature of this expense.

In first quarter 2020, company truck miles increased by approximately 6.4 million miles, and independent contractor miles decreased by approximately 1.9 million miles.

Comparisons of key financial metrics for the TTS segment, including operating ratios (actual and net of fuel surcharge revenues), are shown below. Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS 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.

 Key Truckload Transportation Services Segment Financial Metrics

  Three Months Ended
March 31,
(In thousands) 2020   2019   Y/Y Change
Trucking revenues, net of fuel surcharge $ 409,098     $ 397,691     3 %
Trucking fuel surcharge revenues 51,041     58,177     (12 )%
Non-trucking and other revenues 4,724     7,023     (33 )%
Total revenues $ 464,863     $ 462,891     0 %
           
Operating income 29,089     42,953     (32 )%
Operating margin 6.3 %   9.3 %   (300 ) bps
Operating ratio 93.7 %   90.7 %   300  bps
             
Adjusted operating income 35,301     44,103     (20 )%
Adjusted operating margin 7.6 %   9.5 %   (190 ) bps
Adjusted operating ratio 92.4 %   90.5 %   190  bps
Adjusted operating ratio, net of fuel surcharge 91.5 %   89.1 %   240  bps
                 

Werner Logistics Segment

  • Revenues of $112.2 million decreased $5.2 million, or 4%
  • Gross margin of 14.5% decreased 280 bps
  • Operating income of $1.1 million decreased $3.6 million, or 77%
  • Operating margin of 1.0% decreased 300 bps

Truckload Logistics revenues (64% of total Logistics revenues) declined 9% due to fewer transactional freight opportunities from a slowing freight economy and the competitive logistics market. However, due to an 8% increase in contractual shipments, our Truckload Logistics total load count increased 1% while revenue per load declined 10%. Intermodal revenues declined 6%.

The gross margin percentage decreased 280 bps to 14.5% due primarily to a softer freight market, and contractual brokerage had a higher cost of capacity in March 2020 due to higher replenishment activity. The logistics operating margin decreased 300 bps to 1.0% as the percentage decline in gross profit exceeded the percentage decline in other operating expenses. Other operating expenses in first quarter 2020 included $0.5 million of bad debt expense primarily due to customer bankruptcies.

Key Werner Logistics Segment Financial Metrics

  Three Months Ended
March 31,
(In thousands) 2020   2019   Y/Y Change
Total revenues $ 112,164     $ 117,370     (4 )%
Rent and purchased transportation expense 95,932     97,020     (1 )%
Gross profit 16,232     20,350     (20 )%
Other operating expenses 15,147     15,639     (3 )%
Operating income 1,085     4,711     (77 )%
Gross margin 14.5 %   17.3 %   (280 ) bps
Operating margin 1.0 %   4.0 %   (300 ) bps
               

Cash Flow and Capital Allocation

Cash flow from operations in first quarter 2020 was $133.4 million compared to $138.8 million in first quarter 2019, a decrease of 4% due to lower net income offset partially by higher depreciation.

Net capital expenditures in the first quarter 2020 were $18.8 million compared to $83.4 million in first quarter  2019, a decrease of 77%, due primarily to delays in receiving new trucks and trailers from OEMs. We plan to continue to invest in new trucks and trailers and our terminals to improve our driver experience, increase operational efficiency and more effectively manage our maintenance, safety and fuel costs. As a result of our continued investment, the average age of our truck fleet remains low by industry standards and was 2.0 years as of March 31, 2020.

Gains on sales of equipment in first quarter 2020 were $2.5 million, or $0.03 per share, compared to $5.9 million, or $0.06 per share, in the prior-year quarter. Year over year, we sold 44% fewer trucks and 3% fewer trailers, and we realized significantly lower average gains per truck and trailer. Pricing in the market for our used trucks and trailers continued to weaken in first quarter 2020 due to declining demand. As a reminder, gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

During the quarter, we repurchased 282,992 shares of common stock for a total cost of $8.8 million, or an average price of $31.09 per share. We have stopped repurchasing stock until we have more clarity on the duration and effects of the pandemic. As of March 31, 2020, we had 4.0 million shares remaining under our share repurchase authorization.

We repaid $50 million of debt in the first quarter and had $250 million of debt outstanding as of March 31, 2020. After considering letters of credit issued, we had available liquidity, consisting of cash and available borrowing capacity, of over $350 million.

As of March 31, 2020, we had $72.2 million of cash and over $1.1 billion of stockholders’ equity.

2020 Guidance Metrics and Assumptions

The following table summarizes our updated 2020 guidance and assumptions:

  2020 Guidance Prior Annual
Guidance
(as of 2/5/20)
1Q20
Actual
(as of 3/31/20)
Current Annual
Guidance
(as of 4/28/20)
Commentary
TTS truck growth  from year-end 2019   (3)% to 1% (2)% (5)% to 0%  
Gains on sales of  equipment $6M to $12M $2.5M Withdrawing guidance Demand very low in used truck market; too difficult to predict accurately at this time
Net capital expenditures   $260M to $300M $19M $260M to $300M Lower new truck purchases (-$46M) and lower used truck sales (-$42M)
First Half 2020 Guidance        
One-Way Truckload  RPTM (1H20 vs. 1H19) (7)% to (5)% (3.7)% (7)% to (5)% Assumes a very difficult freight market in May and June 2020
Assumptions
       
Effective tax rate 25% to 26% 23.3% 25% to 26%  
Truck age
Trailer age
1.9 years
4.0 years
2.0 years
4.1 years
Low “2” years
Low-to-mid “4” years
Will depend on freight recovery and timing of OEM plant re-openings
         
         

Conference Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss first quarter 2020 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at www.werner.com in the “Investors” section under “Webcasts & Presentations.” To participate on the conference call, please dial (844) 701-1165 (domestic) or (412) 317-5498 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call.

A replay of the conference call will be available on April 28, 2020 at approximately 6:00 p.m. CT through May 28, 2020 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 10137223. A replay of the webcast will also be available at www.werner.com in the “Investors” section under “Webcasts & Presentations.”

About Werner Enterprises

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 and China. Werner is among the five largest truckload carriers in the United States, with a diversified portfolio of transportation services that includes dedicated; medium-to-long-haul, regional and expedited van; and temperature-controlled. The Werner Logistics portfolio includes truck brokerage, freight management, intermodal, international and final mile 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, 2019.

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.

Contact:
John J. Steele
Executive Vice President, Treasurer
and Chief Financial Officer
(402) 894-3036

Source: Werner Enterprises, Inc.

   
  INCOME STATEMENT
  (Unaudited)
  (In thousands, except per share amounts)
   
  Three Months Ended
March 31,
  2020   2019
  $   %   $   %
Operating revenues $ 592,703     100.0     $ 596,117     100.0  
Operating expenses:              
Salaries, wages and benefits 205,997     34.8     202,799     34.0  
Fuel 48,771     8.2     56,138     9.4  
Supplies and maintenance 45,721     7.7     45,685     7.7  
Taxes and licenses 22,850     3.9     22,901     3.8  
Insurance and claims 36,064     6.1     22,709     3.8  
Depreciation 68,837     11.6     60,759     10.2  
Rent and purchased transportation 126,442     21.3     132,836     22.3  
Communications and utilities 3,808     0.7     4,011     0.7  
Other 3,147     0.5     260      
Total operating expenses 561,637     94.8     548,098     91.9  
Operating income 31,066     5.2     48,019     8.1  
Other expense (income):                          
Interest expense 1,591     0.2     858     0.1  
Interest income (626 )   (0.1 )   (903 )   (0.1 )
Other 45         (116 )    
Total other expense (income) 1,010     0.1     (161 )    
Income before income taxes 30,056     5.1     48,180     8.1  
Income tax expense 6,998     1.2     12,094     2.0  
Net income $ 23,058     3.9     $ 36,086     6.1  
               
Diluted shares outstanding 69,609         70,572      
Diluted earnings per share $ 0.33         $ 0.51      
               

 

  GAAP TO NON-GAAP RECONCILIATION
  (Unaudited)
  (In thousands, except per share amounts)
       
  Three Months Ended
March 31,
  2020   2019
Operating revenues $ 592,703     $ 596,117  
       
Operating expenses 561,637     548,098  
Adjusted for:      
Insurance and claims (1) (1,198 )   (1,150 )
Depreciation (2) (5,014 )    
Adjusted operating expenses 555,425     546,948  
Adjusted operating income (3) 37,278     49,169  
Total other expense (income) 1,010     (161 )
Adjusted income before income taxes 36,268     49,330  
Adjusted income tax expense 8,582     12,384  
Adjusted net income (3) $ 27,686     $ 36,946  
Diluted shares outstanding 69,609     70,572  
Adjusted diluted earnings per share (3) $ 0.40     $ 0.52  

(1) During first quarter 2020 and 2019, we accrued $1,198 and $1,150, respectively, of pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on May 17, 2018 in a lawsuit arising from a December 2014 accident. The Company is appealing this verdict. Additional information about the accident was included in our Current Report on Form 8-K dated May 17, 2018. Under our insurance policies in effect on the date of this accident, our maximum liability for this accident is $10.0 million (plus pre-judgment and post-judgment interest) with premium-based insurance coverage that exceeds the jury verdict amount. Interest is accrued at $0.4 million per month until such time as the outcome of our appeal is finalized. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(2) During first quarter 2020, we changed the estimated life of certain trucks currently expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market.  The effect of this change in accounting estimate increased first quarter 2020 depreciation expense by $5,014. These trucks will continue to depreciate at the same higher rate per truck until the trucks are sold.  Management believes excluding the effect of this unusual and infrequent item provides a more useful comparison of our performance from period to period.  This item is included in the Truckload Transportation Services segment in our Segment Information table.

(3) Our definition of the non-GAAP measures adjusted operating income, adjusted net income and adjusted diluted earnings per share begins with (a) operating expenses, the most comparable GAAP measure. We subtract the insurance and claims jury verdict interest accrual and additional depreciation expense from (a) to arrive at adjusted operating expenses, which we subtract from operating revenues to arrive at (b) adjusted operating income. We subtract (c) total other expense (income) from (b) adjusted operating income to arrive at (d) adjusted income before income taxes. We calculate adjusted income tax expense by applying the incremental income tax rate excluding discrete items to the net pre-tax adjustments and adding this additional income tax to GAAP income tax expense. We then subtract adjusted income tax expense from adjusted income before income taxes to arrive at adjusted net income. The adjusted net income is divided by the diluted shares outstanding to calculate the adjusted diluted earnings per share.

   
  SEGMENT INFORMATION
  (Unaudited)
  (In thousands)
   
  Three Months Ended
March 31,
  2020   2019
Revenues      
Truckload Transportation Services $ 464,863     $ 462,891  
Werner Logistics 112,164     117,370  
Other (1) 15,068     15,472  
Corporate 619     589  
Subtotal 592,714     596,322  
Inter-segment eliminations (2) (11 )   (205 )
Total $ 592,703     $ 596,117  
       
Operating Income      
Truckload Transportation Services $ 29,089     $ 42,953  
Werner Logistics 1,085     4,711  
Other (1) 2,900     1,179  
Corporate (2,008 )   (824 )
Total $ 31,066     $ 48,019  

(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities.

(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation.

   
  OPERATING STATISTICS BY SEGMENT
  (Unaudited)
   
  Three Months Ended
March 31,
   
  2020   2019   % Chg
Truckload Transportation Services segment          
Average tractors in service 7,862     7,887     (0.3 )%
Average revenues per tractor per week (1) $ 4,003     $ 3,879     3.2 %
Total tractors (at quarter end)          
Company 7,350     7,355     (0.1 )%
Independent contractor 485     590     (17.8 )%
Total tractors 7,835     7,945     (1.4 )%
Total trailers (at quarter end) 21,910     23,235     (5.7 )%
           
One-Way Truckload          
Trucking revenues, net of fuel surcharge (in 000’s) $ 177,849     $ 180,134     (1.3 )%
Average tractors in service 3,271     3,357     (2.6 )%
Total tractors (at quarter end) 3,150     3,385     (6.9 )%
Average percentage of empty miles 11.83 %   11.60 %   2.0 %
Average revenues per tractor per week (1) $ 4,182     $ 4,127     1.3 %
Average % change YOY in revenues per total mile (1) (3.7 )%   6.5 %    
Average % change YOY in total miles per tractor per week 5.1 %   (3.5 )%    
Average completed trip length in miles (loaded) 863     854     1.1 %
           
Dedicated          
Trucking revenues, net of fuel surcharge (in 000’s) $ 231,249     $ 217,557     6.3 %
Average tractors in service 4,591     4,530     1.3 %
Total tractors (at quarter end) 4,685     4,560     2.7 %
Average revenues per tractor per week (1) $ 3,874     $ 3,694     4.9 %
           
Werner Logistics segment          
Average tractors in service 32     38     (15.8 )%
Total tractors (at quarter end) 30     40     (25.0 )%
Total trailers (at quarter end) 1,625     1,745     (6.9 )%

(1) Net of fuel surcharge revenues

   
  SUPPLEMENTAL INFORMATION
  (Unaudited)
  (In thousands)
   
  Three Months Ended
March 31,
  2020   2019
Capital expenditures, net $ 18,840     $ 83,364  
Cash flow from operations 133,376     138,769  
Return on assets (annualized) 4.4 %   6.9 %
Return on equity (annualized) 8.3 %   11.3 %

 

   
  CONDENSED BALANCE SHEET
  (In thousands, except share amounts)
       
  March 31, 2020   December 31, 2019
  (Unaudited)    
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 72,237     $ 26,418  
Accounts receivable, trade, less allowance of $8,678 and $7,921, respectively 310,900     322,846  
Other receivables 22,575     52,221  
Inventories and supplies 8,151     9,243  
Prepaid taxes, licenses and permits 12,757     16,757  
Other current assets 33,023     38,849  
Total current assets 459,643     466,334  
       
Property and equipment 2,325,615     2,343,536  
Less – accumulated depreciation 846,871     817,260  
Property and equipment, net 1,478,744     1,526,276  
       
Other non-current assets (1) 150,511     151,254  
Total assets $ 2,088,898     $ 2,143,864  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 87,698     $ 94,634  
Current portion of long-term debt 75,000     75,000  
Insurance and claims accruals 72,987     69,810  
Accrued payroll 37,650     38,347  
Other current liabilities 31,336     31,049  
Total current liabilities 304,671     308,840  
       
Long-term debt, net of current portion 175,000     225,000  
Other long-term liabilities 28,186     21,129  
Insurance and claims accruals, net of current portion (1) 234,191     228,218  
Deferred income taxes 244,814     249,669  
       
Stockholders’ equity:      
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536      
shares issued; 69,086,736 and 69,244,525 shares outstanding, respectively 805     805  
Paid-in capital 110,695     112,649  
Retained earnings 1,311,448     1,294,608  
Accumulated other comprehensive loss (30,218 )   (14,728 )
Treasury stock, at cost; 11,446,800 and 11,289,011 shares, respectively (290,694 )   (282,326 )
Total stockholders’ equity 1,102,036     1,111,008  
Total liabilities and stockholders’ equity $ 2,088,898     $ 2,143,864  

(1) Under the terms of our insurance policies, we are the primary obligor of the damage award in the previously mentioned adverse jury verdict, and as such, we have recorded a $79.2 million receivable from our third party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals in the unaudited condensed balance sheets as of March 31, 2020 and December 31, 2019.

Werner.jpg

Source: Werner Enterprises, Inc.

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