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Werner Enterprises Reports Record Fourth Quarter and Full Year 2020 Operating Income

February, 04, 2021

Fourth Quarter 2020 Highlights

  • Total revenues of $620.3 million, flat YoY, up 5% sequentially
  • Operating income of $81.5 million, up 24% YoY, up 31% sequentially; non-GAAP adjusted operating income of $82.7 million, up 30% YoY, up 29% sequentially
  • Operating margin of 13.1%, up 250 bps YoY, up 260 bps sequentially; non-GAAP adjusted operating margin of 13.3%, up 310 bps YoY, up 240 bps sequentially
  • Diluted EPS of $0.88, up 26% YoY, up 31% sequentially; non-GAAP adjusted diluted EPS of $0.89, up 33% YoY, up 29% sequentially

OMAHA, Neb., Feb. 04, 2021 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, today reported record operating income for the fourth quarter and year ended December 31, 2020.

“Werner produced strong results in the fourth quarter by safely delivering superior on-time service to our customers,” said Derek J. Leathers, Vice Chairman, President and Chief Executive Officer. “I have never been more proud of our Werner team. Their resilience, tenacity and perseverance in 2020 enabled us to overcome significant obstacles and challenges.

“I am confident that Werner is very well-positioned to continue our success in 2021. Our young fleet and the high performance delivered by our associates are enabling us to deliver differentiated service levels while efficiently managing our controllable costs. The driver market remains challenging, which should limit growth in truckload industry capacity at a time when we expect demand to be strong due to our customers’ low inventory levels. Werner is poised to achieve sustainable performance improvement going forward.”

Total revenues for the quarter decreased $1.5 million to $620.3 million versus the prior-year quarter, due to reduced fuel surcharges of $19.9 million due to lower fuel prices, partially offset by 5.3% higher revenues per truck.

Operating income of $81.5 million increased $15.8 million, or 24%, versus the prior-year quarter, while operating margin of 13.1% increased 250 basis points. On a non-GAAP basis, adjusted operating income of $82.7 million increased $19.3 million, or 30%. Adjusted operating margin of 13.3% improved 310 basis points from 10.2% for the same quarter last year. Revenues per truck improvements, combined with effective cost management, generated the margin expansion.

Interest expense of $0.6 million was $1.6 million lower, due to lower average borrowings. The effective income tax rate during the quarter was 25.4% compared to 24.4% in fourth quarter 2019.

Net income of $60.6 million increased 25%. On a non-GAAP basis, adjusted net income increased 31% to $61.5 million compared to $46.8 million for the same quarter last year. Diluted earnings per share (EPS) for the quarter of $0.88 increased 26%. On a non-GAAP basis, adjusted diluted EPS of $0.89 increased 33% compared to $0.67 in fourth quarter 2019.

Key Consolidated Financial Metrics
 
  Three Months Ended
December 31,
  Year Ended
December 31,
(In thousands, except per share amounts) 2020   2019   Y/Y Change   2020   2019   Y/Y Change
Total revenues $ 620,302     $ 621,787     0 %   $ 2,372,178     $ 2,463,701     (4 )%
Truckload Transportation Services revenues 475,037     486,575     (2 )%   1,843,209     1,909,776     (3 )%
Werner Logistics revenues 130,113     120,145     8 %   469,791     489,729     (4 )%
Operating income 81,451     65,654     24 %   227,438     225,472     1 %
Operating margin 13.1 %   10.6 %   250 bps    9.6 %   9.2 %   40 bps 
Net income 60,556     48,496     25 %   169,078     166,944     1 %
Diluted earnings per share 0.88     0.70     26 %   2.44     2.38     2 %
                                           
Adjusted operating income (1) 82,710     63,413     30 %   241,945     225,947     7 %
Adjusted operating margin (1) 13.3 %   10.2 %   310 bps    10.2 %   9.2 %   100 bps 
Adjusted net income (1) 61,494     46,821     31 %   179,886     167,299     8 %
Adjusted diluted earnings per share (1) 0.89     0.67     33 %   2.59     2.39     8 %
 
(1) See GAAP to non-GAAP reconciliation schedule.
 

Noteworthy Developments Since Third Quarter 2020

  • Issued our comprehensive Environmental, Social and Governance report, “Building on a Strong Foundation to Drive Greater Sustainability at Werner”
  • Earned the 2020 Smartway Excellence Award from the EPA for the fourth consecutive year
  • Appointed Carmen Tapio to the Werner Board of Directors
  • Named experienced Werner leader Kathy Peissig to the position of AVP - Diversity, Inclusion and Learning
  • Announced partnership with, and investment in, Mastery Logistics Systems, including its innovative MasterMind™ TMS solution to accelerate Werner TMS supply chain automation, visibility and productivity
  • Made an equity investment in TuSimple, an autonomous trucking technology company, to take an active role in developing technologies that will enhance the lives of our professional drivers and customers
  • Announced the sale of the Werner Global Logistics freight forwarding services for international ocean and air shipments to focus on providing superior truckload and logistics services in North America

Truckload Transportation Services (TTS) Segment

  • Revenues of $475.0 million decreased $11.5 million
  • Operating income of $78.6 million increased $19.4 million, or 33%; non-GAAP adjusted operating income of $79.9 million increased $19.5 million, or 32%
  • Operating margin of 16.5% increased 430 basis points from 12.2%; non-GAAP adjusted operating margin of 16.8% increased 440 basis points from 12.4%.
  • Non-GAAP adjusted operating margin, net of fuel, of 18.2% increased 420 basis points from 14.0%
  • Average segment trucks in service totaled 7,790, a decrease of 252 trucks year over year, or 3.1%
  • Dedicated unit trucks at quarter end totaled 4,945 or 63% of the total TTS segment fleet, compared to 4,630 trucks, or 58%, a year ago
  • 5.3% increase in TTS average revenues per truck per week

In our Dedicated fleet, freight demand remained strong in fourth quarter 2020. We added 230 trucks in Dedicated during the quarter. One-Way Truckload freight demand in fourth quarter 2020 was also strong.   Peak holiday season demand started earlier than normal in October and continued well into December. Freight demand in Dedicated and One-Way Truckload has continued to be seasonally strong so far in first quarter 2021.

In fourth quarter 2020, TTS company truck miles decreased by approximately 3.4 million miles, and independent contractor miles decreased by approximately 4.8 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
December 31,
  Year Ended
December 31,
(In thousands) 2020   2019   Y/Y Change   2020   2019   Y/Y Change
Trucking revenues, net of fuel surcharge $ 434,127     $ 425,558     2 %   $ 1,667,394     $ 1,652,663     1 %
Trucking fuel surcharge revenues 36,563     56,485     (35 )%   158,611     234,366     (32 )%
Non-trucking and other revenues 4,347     4,532     (4 )%   17,204     22,747     (24 )%
Total revenues $ 475,037     $ 486,575     (2 )%   $ 1,843,209     $ 1,909,776     (3 )%
                         
Operating income 78,613     59,172     33 %   222,007     202,660     10 %
Operating margin 16.5 %   12.2 %   430 bps   12.0 %   10.6 %   140 bps
Operating ratio 83.5 %   87.8 %   (430) bps   88.0 %   89.4 %   (140) bps
                       
Adjusted operating income 79,872     60,370     32 %   236,514     206,574     14 %
Adjusted operating margin 16.8 %   12.4 %   440 bps   12.8 %   10.8 %   200 bps
Adjusted operating margin, net of fuel surcharge 18.2 %   14.0 %   420 bps   14.0 %   12.3 %   170 bps
Adjusted operating ratio 83.2 %   87.6 %   (440) bps   87.2 %   89.2 %   (200) bps
Adjusted operating ratio, net of fuel surcharge 81.8 %   86.0 %   (420) bps   86.0 %   87.7 %   (170) bps
                                   

Werner Logistics Segment

  • Revenues of $130.1 million increased $10.0 million, or 8%
  • Gross margin of 12.5% decreased 280 bps
  • Operating income of $2.6 million decreased $0.7 million, or 22%
  • Operating margin of 2.0% decreased 80 bps

Truckload Logistics revenues (62% of total Logistics revenues) increased by 2%. Truckload Logistics volume declined 12%, and revenues per load increased 16%. Intermodal revenues (27% of Logistics revenues) increased 23%, due to volume growth of 21% and 1% higher revenues per load.

The gross margin percentage decreased 280 bps due to the large rise in spot truckload rates in the second half of 2020 which significantly increased the cost of capacity for contractual brokerage shipments in fourth quarter 2020. The logistics operating margin declined 80 bps to 2.0% as the 12% decline in gross profit exceeded the 10% decline in other operating expenses. As a result of improving customer rates for contractual brokerage shipments, the gross margin percentage and operating margin percentage both improved sequentially from third quarter 2020 to fourth quarter 2020 by 170 basis points and 270 basis points, respectively.

Key Werner Logistics Segment Financial Metrics
 
  Three Months Ended
December 31,
  Year Ended
December 31,
(In thousands) 2020   2019   Y/Y Change   2020   2019   Y/Y Change
Total revenues $ 130,113     $ 120,145     8 %   $ 469,791     $ 489,729     (4 )%
Rent and purchased transportation expense 113,908     101,764     12 %   407,308     411,506     (1 )%
Gross profit 16,205     18,381     (12 )%   62,483     78,223     (20 )%
Other operating expenses 13,572     15,014     (10 )%   56,478     61,935     (9 )%
Operating income 2,633     3,367     (22 )%   6,005     16,288     (63 )%
Gross margin 12.5 %   15.3 %   (280) bps   13.3 %   16.0 %   (270) bps
Operating margin 2.0 %   2.8 %   (80) bps   1.3 %   3.3 %   (200) bps
                                   

Cash Flow and Capital Allocation

Cash flow from operations in fourth quarter 2020 was $99.5 million compared to $94.5 million in fourth quarter 2019, an increase of 5%. Full year 2020 cash flow from operations was $445.9 million, producing $179.7 million of free cash flow for the year. 

Gains on sales of equipment in fourth quarter 2020 were $4.0 million, or $0.04 per share, compared to $3.6 million, or $0.04 per share, in fourth quarter 2019. Year over year, we sold slightly fewer trucks and significantly fewer trailers which was offset by higher average gains per truck and trailer. Pricing in the market for our used trucks continued to improve in fourth quarter 2020. As a reminder, gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

Net capital expenditures in 2020 were $266.2 million compared to $283.9 million in 2019, a decrease of 6%. As a result of the improved pricing for our used trucks in fourth quarter 2020, we sold significantly more trucks than originally anticipated. This resulted in a decrease in fourth quarter 2020 net capital expenditures versus our guidance. 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. The average ages of our truck and trailer fleets remain low by industry standards and were 2.0 years and 4.0 years, respectively, as of December 31, 2020.

During the quarter, we repurchased 1.2 million shares of common stock for a total cost of $47.7 million, or an average price of $39.77 per share. As of December 31, 2020, we had 2.8 million shares remaining under our share repurchase authorization.

As of December 31, 2020, we had $200 million of debt outstanding, $29 million of cash and nearly $1.2 billion of stockholders’ equity.

2020 and 2021 Guidance Metrics and Assumptions

The following table summarizes (1) our 2020 guidance and assumptions compared to actual results and (2) introduces our 2021 guidance and assumptions:

2020 and 2021
Guidance
4Q20
Guidance
(as of 10/28/20)
4Q20
Actual
(as of 12/31/20)
2021 Annual
Guidance
(as of 2/4/21)
2021
Commentary
TTS truck
growth from
BoY to EoY
(3)% to (1)% (2)% 1% to 3% Targeted growth with strong performing Dedicated fleet

Augmenting TTS capacity with growing power-only Logistics solution
Gains on sales
of equipment
$2M to $3M $4.0M $12M to $15M Higher gains in improving market with highly spec’d equipment

Growing retail vs. wholesale sales mix
Net capital
expenditures
$88M to $113M $79M $275M to $300M Newer trucks/trailers with enhanced safety features

Opening two new full-service terminals

Continued investment in Werner Edge digital initiative
TTS Guidance        
Dedicated
RPTPW*

growth
n/a n/a 3% to 5%
(1H21 vs. 1H20)
Consistent performance record of YoY improvement through both strong and softer freight markets
One-Way
Truckload
(OWT) RPTM*
growth
3% to 5%
(4Q20 vs. 4Q19)
6.9%
(4Q20 vs. 4Q19)
7% to 10%
(1H21 vs. 1H20)
High-single-digit to Low-double-digit percentage contractual rate renewals expected during bid season

Strong OWT freight market; focus areas of cross-border and expedited
Assumptions        
Effective
income tax rate
25.0% to 25.5% 25.4% 24.5% to 25.5%  
Truck age
Trailer age
2.0 years
Low-to-mid “4” years
2.0 years
4.0 years
2.0 years
Low-to-mid “4” years
Reinvest to maintain young fleet

* Net of fuel surcharge revenues

Conference Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss fourth 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 “News and Events” and then “Webcasts & Presentations.” To participate in 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 February 4, 2021 at approximately 6:00 p.m. CT through March 4, 2021 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 10150328. A replay of the webcast will also be available at www.werner.com in the “Investors” section under “News and Events” and then “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. Werner maintains its corporate headquarters in Omaha, Nebraska and maintains offices in the United States, Canada and Mexico. 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 North American truck brokerage, freight management, intermodal and final mile services.

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 and subsequently filed Quarterly Reports on Form 10-Q.

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.

To supplement our financial results presented on a GAAP basis, we provide certain non-GAAP financial measures, including adjusted operating income, adjusted net income and adjusted diluted earnings per share. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

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
December 31,
  Year Ended
December 31,
  2020   2019   2020   2019
  $   %   $   %   $   %   $   %
Operating revenues $ 620,302     100.0     $ 621,787     100.0     $ 2,372,178     100.0     $ 2,463,701     100.0  
Operating expenses:                              
Salaries, wages and benefits 197,718     31.9     200,101     32.2     795,847     33.6     818,487     33.2  
Fuel 39,743     6.4     59,208     9.5     157,124     6.6     235,928     9.6  
Supplies and maintenance 42,763     6.9     45,946     7.4     175,842     7.4     182,909     7.4  
Taxes and licenses 24,911     4.0     24,737     4.0     95,746     4.0     95,525     3.9  
Insurance and claims 24,656     4.0     23,282     3.7     109,816     4.6     88,913     3.6  
Depreciation 63,799     10.3     64,711     10.4     263,286     11.1     249,527     10.1  
Rent and purchased transportation 140,195     22.6     135,629     21.8     519,184     21.9     549,438     22.3  
Communications and utilities 3,333     0.5     3,497     0.6     14,474     0.6     15,303     0.6  
Other 1,733     0.3     (978 )   (0.2 )   13,421     0.6     2,199     0.1  
Total operating expenses 538,851     86.9     556,133     89.4     2,144,740     90.4     2,238,229     90.8  
Operating income 81,451     13.1     65,654     10.6     227,438     9.6     225,472     9.2  
Other expense (income):                              
Interest expense 576         2,159     0.4     4,215     0.2     6,854     0.3  
Interest income (308 )       (678 )   (0.1 )   (1,634 )   (0.1 )   (3,326 )   (0.1 )
Other 40         49         163         38      
Total other expense (income) 308         1,530     0.3     2,744     0.1     3,566     0.2  
Income before income taxes 81,143     13.1     64,124     10.3     224,694     9.5     221,906     9.0  
Income tax expense 20,587     3.3     15,628     2.5     55,616     2.4     54,962     2.2  
Net income $ 60,556     9.8     $ 48,496     7.8     $ 169,078     7.1     $ 166,944     6.8  
Diluted shares outstanding 69,052         69,723         69,427         70,026      
Diluted earnings per share $ 0.88         $ 0.70         $ 2.44         $ 2.38      
                               

 

    GAAP TO NON-GAAP RECONCILIATION
    (Unaudited)
    (In thousands, except per share amounts)
                 
    Three Months Ended
December 31,
  Year Ended
December 31,
    2020   2019   2020   2019
Operating revenues   $ 620,302     $ 621,787     $ 2,372,178     $ 2,463,701  
Operating expenses   538,851     556,133     2,144,740     2,238,229  
Operating income   81,451     65,654     227,438     225,472  
Total other expense (income)   308     1,530     2,744     3,566  
Income before income taxes   81,143     64,124     224,694     221,906  
Income tax expense   20,587     15,628     55,616     54,962  
Net income   $ 60,556     $ 48,496     $ 169,078     $ 166,944  
Diluted shares outstanding   69,052     69,723     69,427     70,026  
Diluted earnings per share   $ 0.88     $ 0.70     $ 2.44     $ 2.38  
                                 
Adjusted for:                                
Operating expenses   $ 538,851     $ 556,133     $ 2,144,740     $ 2,238,229  
Insurance and claims (1)   (1,259 )   (1,198 )   (4,893 )   (3,914 )
Gains on sale of real estate (2)       3,439         3,439  
Depreciation (3)           (9,614 )    
Adjusted operating expenses   537,592     558,374     2,130,233     2,237,754  
Adjusted operating income (4)   82,710     63,413     241,945     225,947  
Total other expense (income)   308     1,530     2,744     3,566  
Adjusted income before income taxes   82,402     61,883     239,201     222,381  
Adjusted income tax expense   20,908     15,062     59,315     55,082  
Adjusted net income (4)   $ 61,494     $ 46,821     $ 179,886     $ 167,299  
Diluted shares outstanding   69,052     69,723     69,427     70,026  
Adjusted diluted earnings per share (4)   $ 0.89     $ 0.67     $ 2.59     $ 2.39  

(1) During fourth quarter 2020 and 2019, we accrued 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 excluding the months of June and July 2019 where the plaintiffs requested an extension of time to respond to our appeal. 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 fourth quarter 2019, we sold two parcels of real estate which resulted in a $3,439 pre-tax gain on sale. This item is included in our Segment Information table in “Corporate” operating income.

(3) During first quarter 2020, we changed the estimated life of certain trucks expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market. These trucks continued to depreciate at the same higher rate per truck, until all were 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.

(4) 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 the additional depreciation expense and add the gains on sale of real estate to (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
December 31,
  Year Ended
December 31,
    2020   2019   2020   2019
Revenues                
Truckload Transportation Services   $ 475,037     $ 486,575     $ 1,843,209     $ 1,909,776  
Werner Logistics   130,113     120,145     469,791     489,729  
Other (1)   14,737     14,386     57,276     61,850  
Corporate   467     684     2,009     2,589  
Subtotal   620,354     621,790     2,372,285     2,463,944  
Inter-segment eliminations (2)   (52 )   (3 )   (107 )   (243 )
Total   $ 620,302     $ 621,787     $ 2,372,178     $ 2,463,701  
                 
Operating Income                
Truckload Transportation Services   $ 78,613     $ 59,172     $ 222,007     $ 202,660  
Werner Logistics   2,633     3,367     6,005     16,288  
Other (1)   907     354     3,839     5,535  
Corporate   (702 )   2,761     (4,413 )   989  
Total   $ 81,451     $ 65,654     $ 227,438     $ 225,472  

(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
December 31,
      Year Ended
December 31,
   
  2020   2019   % Chg   2020   2019   % Chg
Truckload Transportation Services segment                      
Average trucks in service 7,790     8,042     (3.1 )%   7,757     7,969     (2.7 )%
Average revenues per truck per week (1) $ 4,287     $ 4,071     5.3 %   $ 4,134     $ 3,988     3.7 %
Total trucks (at quarter end)                      
Company 7,390     7,460     (0.9 )%   7,390     7,460     (0.9 )%
Independent contractor 440     540     (18.5 )%   440     540     (18.5 )%
Total trucks 7,830     8,000     (2.1 )%   7,830     8,000     (2.1 )%
Total trailers (at quarter end) 23,125     22,700     1.9 %   23,125     22,700     1.9 %
                       
One-Way Truckload                      
Trucking revenues, net of fuel surcharge (in 000’s) $ 176,014     $ 188,306     (6.5 )%   $ 694,868     $ 738,510     (5.9 )%
Average trucks in service 2,918     3,349     (12.9 )%   3,096     3,376     (8.3 )%
Total trucks (at quarter end) 2,885     3,370     (14.4 )%   2,885     3,370     (14.4 )%
Average percentage of empty miles 11.69 %   11.98 %   (2.4 )%   12.06 %   12.01 %   0.4 %
Average revenues per truck per week (1) $ 4,638     $ 4,325     7.2 %   $ 4,315     $ 4,207     2.6 %
Average % change YOY in revenues per total mile (1) 6.9 %   (5.4 )%       0.9 %   (2.1 )%    
Average % change YOY in total miles per truck per week 0.3 %   (3.5 )%       1.6 %   (3.1 )%    
Average completed trip length in miles (loaded) 869     862     0.8 %   852     848     0.5 %
                       
Dedicated                      
Trucking revenues, net of fuel surcharge (in 000’s) $ 258,113     $ 237,252     8.8 %   $ 972,526     $ 914,153     6.4 %
Average trucks in service 4,872     4,693     3.8 %   4,661     4,593     1.5 %
Total trucks (at quarter end) 4,945     4,630     6.8 %   4,945     4,630     6.8 %
Average revenues per truck per week (1) $ 4,075     $ 3,888     4.8 %   $ 4,012     $ 3,827     4.8 %
                       
Werner Logistics segment                      
Average trucks in service 31     35     (11.4 )%   31     36     (13.9 )%
Total trucks (at quarter end) 31     33     (6.1 )%   31     33     (6.1 )%
Total trailers (at quarter end) 1,275     1,445     (11.8 )%   1,275     1,445     (11.8 )%
                                   
(1) Net of fuel surcharge revenues                 
                                   

 

  SUPPLEMENTAL INFORMATION
  (Unaudited)
  (In thousands)
           
  Three Months Ended
December 31,
  Year Ended
December 31,
  2020   2019   2020   2019
Capital expenditures, net $ 78,978     $ 12,216     $ 266,241     $ 283,875  
Cash flow from operations 99,513     94,459     445,909     426,644  
Return on assets (annualized) 11.2 %   9.0 %   8.0 %   7.8 %
Return on equity (annualized) 20.3 %   17.9 %   14.7 %   14.6 %
                       

 

  CONDENSED BALANCE SHEET
  (In thousands, except share amounts)
       
  December 31,
2020
  December 31,
2019
  (Unaudited)    
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 29,334     $ 26,418  
Accounts receivable, trade, less allowance of $8,686 and $7,921, respectively 341,104     322,846  
Other receivables 23,491     52,221  
Inventories and supplies 12,062     9,243  
Prepaid taxes, licenses and permits 17,231     16,757  
Other current assets 33,694     38,849  
Total current assets 456,916     466,334  
       
Property and equipment 2,405,335     2,343,536  
Less – accumulated depreciation 862,077     817,260  
Property and equipment, net 1,543,258     1,526,276  
       
Other non-current assets (1) 156,502     151,254  
Total assets $ 2,156,676     $ 2,143,864  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 83,263     $ 94,634  
Current portion of long-term debt 25,000     75,000  
Insurance and claims accruals 76,917     69,810  
Accrued payroll 35,594     38,347  
Accrued expenses 25,032     11,072  
Other current liabilities 28,208     19,977  
Total current liabilities 274,014     308,840  
       
Long-term debt, net of current portion 175,000     225,000  
Other long-term liabilities 43,114     21,129  
Insurance and claims accruals, net of current portion (1) 231,638     228,218  
Deferred income taxes 237,870     249,669  
       
Stockholders’ equity:      
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536      
 shares issued; 67,931,726 and 69,244,525 shares outstanding, respectively 805     805  
Paid-in capital 116,039     112,649  
Retained earnings 1,438,916     1,294,608  
Accumulated other comprehensive loss (22,833 )   (14,728 )
Treasury stock, at cost; 12,601,810 and 11,289,011 shares, respectively (337,887 )   (282,326 )
Total stockholders’ equity 1,195,040     1,111,008  
Total liabilities and stockholders’ equity $ 2,156,676     $ 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 December 31, 2020 and December 31, 2019.

 


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