U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    45,316.65
    -2,371.52 (-4.97%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
Werner Enterprises, Inc.
·26 min read
  • Oops!
    Something went wrong.
    Please try again later.

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.