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J.B. Hunt Transport Services Inc. Reports Operating Results (10-Q)

July 29, 2011 | About:
10qk

10qk

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J.B. Hunt Transport Services Inc. (JBHT) filed Quarterly Report for the period ended 2011-06-30.

J.b. Hunt Transport Services Inc. has a market cap of $5.43 billion; its shares were traded at around $45.16 with a P/E ratio of 25.1 and P/S ratio of 1.5. The dividend yield of J.b. Hunt Transport Services Inc. stocks is 1.1%. J.b. Hunt Transport Services Inc. had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated J.b. Hunt Transport Services Inc. the business predictability rank of 3-star.

Highlight of Business Operations:

JBI segment revenue increased 29%, to $676 million during the second quarter 2011, compared with $526 million in 2010. This increase in segment revenue was primarily a result of an 18% increase in load volume over the prior year. Load volume in our eastern network increased 32% over the prior year, while transcontinental loads grew by 12%. Current quarter pricing, excluding fuel surcharges, increased 4.4% over the prior year quarter. Operating income of the JBI segment increased to $76.5 million in the second quarter 2011, from $59.5 million in 2010, primarily due to the volume growth and price increases.

DCS segment revenue increased 16%, to $264 million in 2011, from $229 million in 2010. Excluding fuel surcharges, revenue increased 9% compared to the second quarter 2010, primarily due to increased truck count and an approximate 2% increase in productivity, which is defined as revenue per truck per week. The increase in truck counts related to both new contracts and a significant increase in demand at existing accounts. Operating income of our DCS segment increased to $27.4 million in 2011, from $22.3 million in 2010. The increase in operating income was due to improved cost controls and increased truck count and productivity.

ICS segment revenue grew 27%, to $89 million in the second quarter 2011, from $70 million in the second quarter 2010, due to an 11% increase in load volume, higher pricing in the contractual and transactional business and an increase in the cost of fuel. Operating income of our ICS segment increased to $2.6 million, from $2.2 million in 2010 primarily due to increased revenues. Gross profit (gross revenue less purchased transportation expense) increased 12% to $11 million, while our gross profit margin decreased to 12.3% in the current quarter vs. 13.9% in the second quarter 2010, due to higher fuel prices and increased transportation costs.

JBI segment revenue increased 26%, to $1,253 million during the first six months 2011, compared with $994 million in 2010. This increase in revenue was primarily a result of increased load volume in both our eastern and transcontinental networks. In addition, pricing, excluding fuel surcharges, increased approximately 4% over the prior year. Excluding fuel surcharge, revenues increased 18% over the comparable prior year period. Operating income of the JBI segment increased to $139.2 million in the first six months 2011, from $107.0 million in 2010, primarily due to the volume and pricing increases over the prior year.

DCS segment revenue increased 15%, to $503 million in 2011, from $437 million in 2010. This revenue increase was primarily attributable to new contracts and growth in existing accounts as well as increases in productivity. Operating income of our DCS segment increased to $46.0 million in 2011, from $40.7 million in 2010. The increase in operating income was primarily related to improved cost controls and increases in truck count and productivity.

ICS segment revenue grew 25%, to $164 million in 2011, from $131 million in 2010, due to an 11% increase in loads. The increase also related to higher pricing in our contractual and transactional business and an increase in the cost of fuel. Operating income of our ICS segment increased to $5.2 million, from $3.3 million in 2010, primarily due to increased revenues. ICS gross profit (gross revenue less purchased transportation expense) increased 17% to $22 million. Gross profit margin declined slightly to 13.4% for the first six months 2011 from 14.3% for the comparable period 2010 due to increased rates paid to carriers from tighter supply and increased fuel costs. Our ICS employee count increased 16% during the first six months 2011, compared with 2010, and our third-party carrier base increased 14% over 2010.

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