J.B. Hunt Transport Services Inc. Reports Operating Results (10-Q)
J.b. Hunt Transport Services, Inc. has a market cap of $6.48 billion; its shares were traded at around $54.85 with a P/E ratio of 22.9 and P/S ratio of 1.4. The dividend yield of J.b. Hunt Transport Services, Inc. stocks is 1%. J.b. Hunt Transport Services, Inc. had an annual average earning growth of 13% 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 13%, to $762 million during the second quarter 2012, compared with $676 million in 2011. This increase in segment revenue was primarily a result of a 13% increase in load volume with the effect of traffic mix, customer rate increases and fuel surcharges keeping revenue per load virtually flat compared to a year ago. Load volume in our eastern network increased 21% and transcontinental loads grew by 8% over the second quarter 2011. Operating income of the JBI segment increased to $93.4 million in the second quarter 2012, from $76.5 million in 2011, primarily due to steady demand, overall load growth and lower office personnel compensation costs, partially offset by increases in outsourced drayage costs, rail purchase transportation costs, fleet maintenance costs and driver wages.
JBT segment revenue totaled $126 million for the second quarter 2012, a decrease of 3% from the $130 million in the second quarter 2011. Excluding fuel surcharges, segment revenue also decreased 3%, primarily due to a 4% reduction in tractors year-over-year. Rates per mile, excluding fuel surcharges, increased 3%, while length of haul declined 10%. Our JBT segment operating income was $8.8 million, compared to $6.9 million in the second quarter 2011. This 27% increase in operating income was the result of favorable changes in freight mix, strong seasonal spot pricing, steadily declining fuel costs and improvements in fuel efficiency. This increase in operating income was partially offset by increases in driver wages, independent contractor costs, lower utilization and higher empty miles compared to second quarter 2011.
Our total consolidated operating revenues increased to $2.42 billion for the first six months 2012, a 13% increase from the $2.15 billion for the comparable period 2011. Higher fuel prices during the first half of the period and overall increased load volume resulted in fuel surcharge revenues of $476.9 million during the first six months 2012, compared with $394.3 million in 2011. If fuel surcharge revenues were excluded from both periods, the increase of 2012 revenue from 2011 was 11%.
ICS segment revenue grew 26%, to $207 million in 2012, from $164 million in 2011, primarily due to a 15% increase in loads and higher pricing in our contractual and transactional business. Operating income of our ICS segment increased to $6.0 million, from $5.2 million in 2011, primarily due to increased revenues. ICS gross profit margin declined slightly to 12.4% for the first six months 2012 from 13.4% for the comparable period 2011 due to increased rates paid to carriers due to a tighter supply of qualified purchased transportation providers. Our ICS employee count increased 7% during the first six months 2012, compared with 2011, and our third-party carrier base increased 13% over 2011.
Net cash provided by operating activities totaled $261 million during the first six months of 2012, compared with $308 million for the same period 2011. Operating cash flows decreased primarily due to timing of payments of trade accounts payable and other accrued expenses, offset by increased earnings and the timing of trade receivables collections. Net cash used in investing activities totaled $171 million in 2012, compared with $211 million in 2011. The decrease related to the timing of equipment purchases and sales. Net cash used in financing activities decreased to $89 million in 2012, compared to $93 million in 2011. Financing expenditures consisted primarily of payments on outstanding debt and dividends in 2012, while net financing expenditures in 2011 were primarily for stock repurchases and dividends. Cash paid for income taxes during the current period increased $66.4 million when compared to the first six months of 2011 due to the effect of timing differences caused by the use of 100% bonus depreciation within the Company s 2011 corporate tax filings.
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