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    J B Hunt Transport Services Inc (JBHT)

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    Business Description

    J.B. Hunt Transport Services, Inc. is one of the largest surface transportation, delivery, and logistics companies in North America, offering a wide range of services across five distinct business segments . The company specializes in intermodal transportation, dedicated contract services, integrated capacity solutions, final mile services, and truckload delivery, utilizing a vast network of resources to meet diverse customer needs . J.B. Hunt's operations are supported by a significant fleet of containers and advanced logistics platforms, contributing to its position as a leader in the industry .

    1. Intermodal (JBI) - Utilizes over 118,000 containers for efficient rail and truck transportation, with plans to expand to 150,000 containers by 2027, significantly contributing to the company's operations .
    2. Dedicated Contract Services® (DCS®) - Provides customized freight movement solutions with a high customer retention rate, supporting steady growth through tailored logistics services .
    3. Integrated Capacity Solutions (ICS) - Offers brokerage services by leveraging the J.B. Hunt 360 platform to match shippers with carriers, though facing challenges in the current market environment .
    4. Final Mile Services® (FMS) - Handles big and bulky deliveries directly to consumers' homes, showing growth in revenue quality and service metrics .
    5. Truckload (JBT) - Provides traditional over-the-road full truckload delivery services, including the J.B. Hunt 360box® program, offering flexible solutions despite a decline in revenue .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Kevin BracySenior Vice President of Finance and Treasurer1998Kevin Bracy, aged 53, joined J.B. Hunt Transport Services, Inc. in 1998 as a Financial Analyst. He currently serves as the Senior Vice President of Finance and Treasurer .
    Darren FieldPresident of Intermodal and Executive Vice President1994Darren Field, aged 53, joined J.B. Hunt Transport Services, Inc. in 1994 as a Night Dispatcher. He currently serves as the President of Intermodal and Executive Vice President .
    Spencer FrazierExecutive Vice President of Sales and Marketing1992Spencer Frazier joined J.B. Hunt Transport Services, Inc. in 1992 as a Management Trainee. He currently serves as the Executive Vice President of Sales and Marketing .
    Bradley HicksPresident of Highway Services and Executive Vice President of People1996Bradley Hicks, aged 51, joined J.B. Hunt Transport Services, Inc. in 1996 as a Management Trainee. He currently serves as the President of Highway Services and Executive Vice President of People .
    Nicholas HobbsChief Operating Officer, President of Contract Services, and Executive Vice President1984Nicholas Hobbs joined J.B. Hunt Transport Services, Inc. in 1984 as a Management Trainee. He currently serves as the Chief Operating Officer, President of Contract Services, and Executive Vice President .
    David KeefauverExecutive Vice President of Dedicated Contract Services1995David Keefauver, 51, joined J.B. Hunt Transport Services, Inc. in 1995 as a Management Trainee and currently serves as Executive Vice President of Dedicated Contract Services .
    John KuhlowChief Financial Officer, Chief Accounting Officer, and Executive Vice President2006John Kuhlow joined J.B. Hunt Transport Services, Inc. in 2006 as Assistant Corporate Controller. He currently serves as the Chief Financial Officer, Chief Accounting Officer, and Executive Vice President .
    Eric McGeeExecutive Vice President of Highway Services1998Eric McGee, aged 50, joined J.B. Hunt Transport Services, Inc. in 1998 as a National Account Service Monitor. He currently serves as the Executive Vice President of Highway Services .
    Stuart ScottChief Information Officer and Executive Vice President2016Stuart Scott, aged 57, joined J.B. Hunt Transport Services, Inc. in 2016 as Chief Information Officer and Executive Vice President. Prior to joining the company, he served as Chief Information Officer at Tempur-Sealy International, Microsoft, and various General Electric businesses .
    Brian WebbExecutive Vice President of Final Mile Services2002Brian Webb, age 55, joined J.B. Hunt Transport Services, Inc. in 2002 as a Business Development Executive. He currently serves as Executive Vice President of Final Mile Services .
    Greer WoodruffExecutive Vice President of Safety, Sustainability, and Maintenance1987Greer Woodruff joined J.B. Hunt in 1987 as a Management Trainee. He currently serves as the Executive Vice President of Safety, Sustainability, and Maintenance .
    Jennifer R. BoattiniSenior Vice President of Legal and Litigation and General Counsel2006Jennifer R. Boattini joined J.B. Hunt Transport Services, Inc. in 2006 as Director of Litigation and Contract Management. She currently serves as Senior Vice President of Legal and Litigation and General Counsel .
    Shelley SimpsonChief Executive Officer and President1994Shelley Simpson has been with J.B. Hunt Transport Services, Inc. since 1994, starting as an hourly Customer Service Representative. She became the President in August 2022 and assumed the role of Chief Executive Officer on July 1, 2024 .
    John N. Roberts, IIIExecutive Chairman of the Board1989John N. Roberts, III has been with J.B. Hunt Transport Services, Inc. since 1989, starting as a Management Trainee. He became the Chief Executive Officer in 2010 and transitioned to Executive Chairman of the Board in 2024 .

    Questions to Ask Management

    1. Given the continued pressure on Intermodal margins and the challenges in restoring them, could you elaborate on the specific pricing actions and cost initiatives you are implementing to achieve your margin targets, and how sustainable are these measures in the long term?

    2. With the integration of the brokerage assets from BNSF Logistics resulting in additional operating expenses and a $2 million negative impact this quarter, how do you plan to address these integration costs, and when do you expect to see a meaningful improvement in ICS profitability?

    3. In light of increased competition in the dedicated market and reports of private fleets expanding their own capacity, how are you adjusting your sales strategy to secure new dedicated contracts, and are you seeing any pressure on pricing or margins in this segment?

    4. Considering the significant cost inflation across the industry and the current low rates that you believe are unsustainable, how confident are you in your ability to implement necessary pricing increases in the upcoming bid season without sacrificing volume growth, especially given the excess capacity in the market?

    5. With the anticipated shift in market dynamics and your focus on repairing margins, what specific steps are you taking to prepare for a potential market upturn, and how are you balancing investments in capacity and technology with the need for cost control to ensure acceptable returns on capital?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateJuly 20, 2022 August 16, 2024
    End Date/DurationNo expiration date No expiration date
    Total additional amount$500 million $1 billion
    Remaining authorizationFully exhausted $967 million
    DetailsAuthorization fully used Effective upon previous authorization completion

    Debt Maturity Schedule

    YearAmount Due (millions)Debt TypeInterest Rate (%)% of Total Debt
    2024500 Current portion of long-term debtN/A21.1% = (500 / 2367.3) * 100
    2025500 Term loans under the senior credit facilityVariable, 6.07% 21.1% = (500 / 2367.3) * 100
    2026700 3.875% senior notes3.875% 29.6% = (700 / 2367.3) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Other intermodal marketing companies; other full-load carriers that utilize railroads for a portion of the transportation service; and, to a certain extent, some railroads directly .
    • Customers' private fleets, other private fleet outsourcing companies, equipment leasing companies, local and regional delivery service providers, and some truckload carriers .
    • Other non-asset-based logistics companies and freight brokers, as well as full-load carriers .
    • Thousands of carriers, many of which are very small .
    • LTL carriers and railroads, some of which have more equipment and greater capital resources .

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP2021 PresentCurrent auditor.
    Ernst & Young LLPN/AJune 22, 2021 The change followed a competitive request for proposals process.

    Latest news

    Recent developments and announcements about JBHT.

    Financial Reporting

      Earnings Call

      ·
      Jan 17, 2025, 3:40 AM

      The earnings call transcript for J.B. Hunt Transport Services (JBHT) provides several key insights into the company's current performance and strategic outlook as of January 2025.

      Key Financial Performance

      • Revenue and Profit: The company experienced a 5% decline in revenue for the fourth quarter compared to the previous year, while operating income increased by 2% and diluted earnings per share rose by 4%. However, for the full year 2024, revenue declined by 6%, operating income decreased by 16%, and diluted EPS fell by 20%.
      • Capital Expenditures: JBHT plans to invest between $700 million and $900 million in capital expenditures for 2025, up from $674 million in 2024, focusing on growth and strategic investments.

      Management's Forward Guidance

      • Intermodal Business: The company reported record Intermodal volumes for two consecutive quarters, with a 5% year-over-year increase in total volume for the fourth quarter. They anticipate continued growth opportunities, particularly in the Eastern network, and are focused on improving margins by adjusting pricing to reflect inflationary pressures.
      • Dedicated Contract Services: The dedicated business has shown resilience, with plans to return to net fleet growth in 2025 despite some fleet losses and customer bankruptcies in 2024. The company expects modest growth in top-line and operating income for this segment in 2025.

      Market Conditions and Strategic Initiatives

      • Market Dynamics: JBHT is navigating a challenging freight environment, described as the worst freight recession experienced, but sees opportunities for growth as market conditions improve.
      • Strategic Focus: The company is committed to operational excellence, cost control, and leveraging strategic investments in technology and capacity to drive long-term growth. They are also focused on improving returns on capital and margins, particularly in the Intermodal segment.

      Analyst Questions and Management Responses

      • Analysts inquired about the company's pricing strategy and margin improvement plans. Management emphasized the importance of service, cost, and capacity in pricing discussions and expressed confidence in their ability to negotiate favorable terms with customers.
      • Questions about the scalability of Intermodal operations were addressed by highlighting the company's efforts to improve utilization and manage excess capacity, particularly following the acquisition of Walmart's Intermodal assets.

      Overall, JBHT is focused on navigating current market challenges while positioning itself for future growth through strategic investments and operational improvements.