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Werner Enterprises, Inc.$40.34($.78)(1.90%)

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 Werner Enterprises Reports Fourth Quarter and Full Year 2019 Results
   Wednesday, February 05, 2020 4:05:00 PM ET

Fourth Quarter 2019 Highlights (all metrics compared to fourth quarter 2018 unless otherwise noted)

  • Total revenues of $621.8 million, down $24.6 million, or 4%
  • Operating income of $65.7 million, down 12%; non-GAAP adjusted operating income of $63.4 million, down 14%
  • Operating margin of 10.6%, down 100 basis points (bps); non-GAAP adjusted operating margin of 10.2%, down 120 bps
  • Diluted EPS of $0.70, down 9%; non-GAAP adjusted diluted EPS of $0.67, down 11%

OMAHA, Neb., Feb. 05, 2020 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, today reported financial results for the fourth quarter and full year ended December 31, 2019.

“We are pleased to report good results for the quarter, despite a challenging operating environment compared to the stronger freight and market conditions in the prior-year quarter. In fourth quarter 2019, freight volumes were comparable to fourth quarter 2018 and showed improvement sequentially from third quarter 2019; however, the rate environment in fourth quarter 2019 was meaningfully softer due to a decline in One-Way Truckload project and surge pricing,” said Derek J. Leathers, President and Chief Executive Officer.

“With respect to the full year comparisons, 2019 was a more difficult year than 2018, due to slower growth in the domestic economy and increased truckload capacity, both of which led to lower freight volumes and less attractive pricing. Despite these challenges, we delivered higher earnings per share in 2019 than 2018. Our exceptional execution, effective cost management and our balanced revenue model of Dedicated, One-Way Truckload and Logistics, allowed us to weather the storm. I am extremely proud and grateful for the contributions of our entire Werner team to produce these strong results.”

Total revenues for the quarter decreased 4% to $621.8 million versus the prior year quarter, primarily attributable to lower Logistics and fuel surcharge revenues, partially offset by dedicated fleet growth.

Operating income of $65.7 million decreased $9.3 million, or 12%. Operating margin of 10.6% decreased 100 basis points due to a more challenging freight and rate market in one-way truckload and logistics. On a non-GAAP basis, adjusted operating income of $63.4 million decreased $10.2 million, or 14%. Adjusted operating margin of 10.2% declined 120 basis points from 11.4% for the same quarter last year.

Interest expense of $2.2 million was $1.3 million higher, or a $0.01 increase per share. The effective income tax rate during the quarter was 24.4% compared to 26.8% in fourth quarter 2018, or a $0.02 per share favorable impact. The current quarter rate was slightly lower than our expected range of 25% to 26% because of favorable discrete federal and state income tax items.

Net income of $48.5 million decreased 11%. On a non-GAAP basis, adjusted net income declined 13% to $46.8 million compared to $53.6 million for the same quarter last year. Diluted earnings per share (EPS) for the quarter of $0.70 decreased 9%.

Diluted EPS in fourth quarter 2019 included (i) a $0.01 per share, or $1.2 million pre-tax, insurance and claims accrual for interest on a previously disclosed May 2018 jury verdict that we are appealing and (ii) pre-tax gains of $3.4 million, or $0.04 per share, related to the sale of real estate. Diluted EPS in fourth quarter 2018 included (i) a $0.01 per share, or $1.2 million, insurance and claims accrual for interest on the  aforementioned jury verdict and (ii) a gain of $2.4 million, or $0.03 per share, related to the sale of real estate.

On a non-GAAP basis, adjusted diluted EPS of $0.67 decreased 11% from $0.75 for fourth quarter 2018.

Key Consolidated Financial Metrics

 Three Months Ended Year Ended
 December 31, December 31,
(In thousands, except per share amounts)2019 2018 Y/Y Change 2019 2018 Y/Y Change
Total revenues$621,787  $646,365  (4)% $2,463,701  $2,457,914  0%
Truckload Transportation Services revenues486,575  494,708  (2)% 1,909,776  1,881,323  2%
Werner Logistics revenues120,145  137,224  (12)% 489,729  518,078  (5)%
Operating income65,654  74,931  (12)% 225,472  224,215  1%
Operating margin10.6% 11.6% (100) bps 9.2% 9.1% 10 bps
Net income48,496  54,563  (11)% 166,944  168,148  (1)%
Diluted earnings per share0.70  0.77  (9)% 2.38  2.33  2%
            
Adjusted operating income (1)63,413  73,649  (14)% 225,947  228,577  (1)%
Adjusted operating margin (1)10.2% 11.4% (120) bps 9.2% 9.3% (10) bps
Adjusted net income (1)46,821  53,603  (13)% 167,299  171,413  (2)%
Adjusted diluted earnings per share (1)0.67  0.75  (11)% 2.39  2.38  0%
(1) See GAAP to non-GAAP reconciliation schedule.

Truckload Transportation Services (TTS) Segment

  • Revenues of $486.6 million decreased $8.1 million, or 2%
  • Operating income of $59.2 million decreased $7.7 million, or 11%; non-GAAP adjusted operating income of $60.4 million decreased $7.6 million, or 11%
  • Operating margin of 12.2% decreased 130 basis points from 13.5%; non-GAAP adjusted operating margin of 12.4% decreased 130 basis points from 13.7%
  • Average segment trucks in service totaled 8,042, an increase of 255 trucks year over year
  • Dedicated unit trucks at quarter end totaled 4,630, or 58% of the total TTS segment fleet, compared to 4,500 trucks, or 58%, a year ago

Revenues decreased 2% due to an $11.4 million decrease in fuel surcharge revenues and a 1.8% decrease in average revenues per truck, partially offset by a 3.3% increase in average trucks in service. The average revenues per truck decrease was due primarily to a decrease in average miles per truck, partially offset by a small increase in average revenues per total mile. The small increase in average revenues per total mile was due primarily to relative strength in Dedicated pricing, mostly offset by lower One-Way Truckload pricing, particularly project and surge pricing.

During the fourth quarter, the freight market was seasonally below average compared to fourth quarter 2018. One-Way Truckload freight volumes in fourth quarter 2019 were comparable to freight volumes in fourth quarter 2018, and showed seasonal improvement sequentially from third quarter 2019.

Adjusted TTS operating income declined 11% and adjusted TTS operating margin declined 130 bps to 12.4%. Dedicated improved its operating income and operating margin percentage, while One-Way Truckload had a decline in operating income and operating margin percentage.

Due to growth in company trucks and a decline in independent contractor trucks during the quarter, company truck miles increased by approximately 2.6 million miles, and independent contractor miles decreased by approximately 1.1 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 Year Ended
 December 31, December 31,
(In thousands)2019 2018 Y/Y Change 2019 2018 Y/Y Change
Trucking revenues, net of fuel surcharge$425,558  $419,587  1% $1,652,663  $1,588,175  4%
Trucking fuel surcharge revenues56,485  67,866  (17)% 234,366  265,078  (12)%
Non-trucking and other revenues4,532  7,255  (38)% 22,747  28,070  (19)%
Total revenues$486,575  $494,708  (2)% $1,909,776  $1,881,323  2%
            
Operating income59,172  66,833  (11)% 202,660  202,581  0%
Operating margin12.2% 13.5% (130) bps 10.6% 10.8% (20) bps
Operating ratio87.8% 86.5% 130 bps 89.4% 89.2% 20 bps
            
Adjusted operating income60,370  67,983  (11)% 206,574  212,870  (3)%
Adjusted operating margin12.4% 13.7% (130) bps 10.8% 11.3% (50) bps
Adjusted operating ratio87.6% 86.3% 130 bps 89.2% 88.7% 50 bps
Adjusted operating ratio, net of fuel surcharge86.0% 84.1% 190 bps 87.7% 86.8% 90 bps

Werner Logistics Segment

  • Revenues of $120.1 million decreased $17.1 million or 12%
  • Gross margin of 15.3% decreased 150 bps
  • Operating income of $3.4 million decreased $3.9 million, or 54%
  • Operating margin of 2.8% decreased 250 bps

Truckload Logistics revenues (65% of total Logistics revenues) declined 12% due to fewer transactional freight opportunities, less attractive contract and transactional pricing and increased competition from logistics competitors, including digital brokers. Intermodal revenues declined 9%.

The gross margin percentage decreased 150 bps to 15.3% due primarily to a softer freight market driven by significantly less project and surge opportunities and a more competitive Truckload Logistics freight market. The logistics operating margin decreased 250 bps to 2.8% as the percentage decline in gross profit exceeded the percentage decline in other operating expenses.

Key Werner Logistics Segment Financial Metrics

 Three Months Ended Year Ended
 December 31, December 31,
(In thousands)2019 2018 Y/Y Change 2019 2018 Y/Y Change
Total revenues$120,145  $137,224  (12)% $489,729  $518,078  (5)%
Rent and purchased transportation expense101,764  114,156  (11)% 411,506  436,220  (6)%
Gross profit18,381  23,068  (20)% 78,223  81,858  (4)%
Other operating expenses15,014  15,825  (5)% 61,935  61,480  1%
Operating income3,367  7,243  (54)% 16,288  20,378  (20)%
Gross margin15.3% 16.8% (150) bps 16.0% 15.8% 20 bps
Operating margin2.8% 5.3% (250) bps 3.3% 3.9% (60) bps

Cash Flow and Capital Allocation

Cash flow from operations in fourth quarter 2019 was $94.5 million compared to $115.6 million in fourth quarter 2018, a decrease of 18% due to lower net income and working capital changes. Full year 2019 cash flow from operations was $426.6 million, producing $142.8 million of free cash flow for the year.

Net capital expenditures in 2019 were $283.9 million compared to $349.0 million in 2018, a decrease of 19%. As part of our strategy, net capital expenditures returned to normalized replacement levels in 2019 after achieving our desired fleet age. We 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. As a result of our continued investment, the average age of our truck fleet remains low by industry standards and was 1.9 years as of December 31, 2019 and was 1.8 years as of December 31, 2018.

Gains on sales of equipment in fourth quarter 2019 were $3.6 million, or $.04 per share, compared to $6.5 million, or $0.07 per share, in the prior-year quarter. Year over year, we sold 5% more trucks and 3% more trailers, and we realized lower average gains per truck and trailer. For the full year 2019, gains on sales of equipment were $18.1 million, or $0.19 per share, compared to $19.0 million, or $0.20 per share, in 2018. Pricing in the market for our used trucks and trailers began to moderate in the latter part of second quarter 2019, and the used truck pricing decline accelerated in fourth quarter 2019 due to weaker demand. As a reminder, gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

During the quarter, no shares of common stock were repurchased. As of December 31, 2019, we had 4.3 million shares remaining under our new share repurchase authorization approved by the Board of Directors in May 2019.

We had $300 million of debt outstanding as of December 31, 2019, and after considering letters of credit issued, had available remaining borrowing capacity of over $240 million. In early July 2019, we fixed the interest rate for $150 million of our debt at an average interest rate of 2.34% through May 2024.

As of December 31, 2019, we had $26.4 million of cash and over $1.1 billion of stockholders’ equity.

2020 Guidance Metrics

The following table summarizes our 2020 guidance and assumptions:

2020 Guidance  
   
TTS truck growth (3)% to 1%
from year-end 2019 With flat to slightly lower truck count in the first half of 2020 due to current market conditions
   
Gains on sales of equipment $6 million to $12 million
Gains on sales of equipment in 2020 are expected to continue to moderate due to the softer used equipment market and lower trailer sales
   
Net capital expenditures $260 million to $300 million
   
First Half 2020 Guidance  
   
One-Way Truckload (5%) to (7%)
revenues per total mile Revenues per total mile (RPTM) comparisons are expected to remain difficult in the first half of 2020
1H 2020 vs. 1H 2019  
   
Assumptions  
   
Effective tax rate 25% to 26%
   
Truck and trailer age We intend to maintain the average age of our truck and trailer fleet at or near current levels of 1.9 and 4.0 years
   
Interest expense $1.8 million
first quarter 2020 Estimated first quarter 2020 interest expense to be slightly lower than fourth quarter 2019 of $2.2 million based on current debt levels and current interest rates (variable and fixed)

Conference Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss fourth quarter 2019 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 “Webcasts & Presentations.” To participate on 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 5, 2020 at approximately 6:00 p.m. CT through March 5, 2020 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 10137213. A replay of the webcast will also be available at www.werner.com  in the “Investors” section under “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, Asia, Europe, South America, Africa and Australia. Werner maintains its global headquarters in Omaha, Nebraska and maintains offices in the United States, Canada, Mexico and China. 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 truck brokerage, freight management, intermodal, international and final mile services. International services are provided through Werner’s domestic and global subsidiary companies and include ocean, air and ground transportation; freight forwarding; and customs brokerage.

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, 2018.

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.

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 Year Ended
 December 31, December 31,
 2019 2018 2019 2018
 $ % $ % $ % $ %
Operating revenues$621,787  100.0  $646,365  100.0  $2,463,701  100.0  $2,457,914  100.0 
Operating expenses:               
Salaries, wages and benefits200,101  32.2  200,549  31.0  818,487  33.2  781,064  31.8 
Fuel59,208  9.5  62,795  9.7  235,928  9.6  254,564  10.4 
Supplies and maintenance45,946  7.4  46,518  7.2  182,909  7.4  185,074  7.5 
Taxes and licenses24,737  4.0  23,711  3.7  95,525  3.9  87,318  3.5 
Insurance and claims23,282  3.7  24,275  3.8  88,913  3.6  98,133  4.0 
Depreciation64,711  10.4  59,712  9.2  249,527  10.1  230,151  9.4 
Rent and purchased transportation135,629  21.8  153,777  23.8  549,438  22.3  589,002  24.0 
Communications and utilities3,497  0.6  4,035  0.6  15,303  0.6  16,063  0.6 
Other(978) (0.2) (3,938) (0.6) 2,199  0.1  (7,670) (0.3)
Total operating expenses556,133  89.4  571,434  88.4  2,238,229  90.8  2,233,699  90.9 
Operating income65,654  10.6  74,931  11.6  225,472  9.2  224,215  9.1 
Other expense (income):                       
Interest expense2,159  0.4  853  0.1  6,854  0.3  2,695  0.1 
Interest income(678) (0.1) (658)   (3,326) (0.1) (2,737) (0.1)
Other49    204    38    376   
Total other expense (income)1,530  0.3  399  0.1  3,566  0.2  334   
Income before income taxes64,124  10.3  74,532  11.5  221,906  9.0  223,881  9.1 
Income tax expense15,628  2.5  19,969  3.1  54,962  2.2  55,733  2.3 
Net income$48,496  7.8  $54,563  8.4  $166,944  6.8  $168,148  6.8 
                
Diluted shares outstanding69,723    71,136    70,026    72,057   
Diluted earnings per share$0.70    $0.77    $2.38    $2.33   


 GAAP TO NON-GAAP RECONCILIATION
 (Unaudited)
 (In thousands, except per share amounts)
        
 Three Months Ended Year Ended
 December 31, December 31,
 2019 2018 2019 2018
Operating revenues$621,787  $646,365  $2,463,701  $2,457,914 
        
Operating expenses556,133  571,434  2,238,229  2,233,699 
Adjusted for:       
Insurance and claims (1)(1,198) (1,150) (3,914) (15,189)
Property tax settlement (2)      4,900 
Gains on sale of real estate (3)3,439  2,432  3,439  5,927 
Adjusted operating expenses558,374  572,716  2,237,754  2,229,337 
Adjusted operating income (4)63,413  73,649  225,947  228,577 
Total other expense (income)1,530  399  3,566  334 
Adjusted income before income taxes61,883  73,250  222,381  228,243 
Adjusted income tax expense15,062  19,647  55,082  56,830 
Adjusted net income (4)$46,821  $53,603  $167,299  $171,413 
Diluted shares outstanding69,723  71,136  70,026  72,057 
Adjusted diluted earnings per share (4)$0.67  $0.75  $2.39  $2.38 

(1) During fourth quarter 2019 and 2018, we accrued $1,198 and $1,150, respectively, of 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 third quarter 2018, we reached a favorable settlement related to a property tax dispute that reduced taxes and licenses expense by $4,900, for property taxes that were previously expensed and paid over a multi-year period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(3) During fourth quarter 2019, we sold two parcels of real estate which resulted in a $3,439 pre-tax gain on sale. During second quarter 2018, we sold a parcel of real estate which resulted in a $3,495 pre-tax gain on sale, and during fourth quarter 2018 we sold a parcel of real estate which resulted in a $2,432 pre-tax gain. These items are included in our Segment Information table in “Corporate” operating income.

(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 expense accrual and related interest and add the gains on sale of real estate and the property tax settlement 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 Year Ended
 December 31, December 31,
 2019 2018 2019 2018
Revenues       
Truckload Transportation Services$486,575  $494,708  $1,909,776  $1,881,323 
Werner Logistics120,145  137,224  489,729  518,078 
Other (1)14,386  14,115  61,850  56,903 
Corporate684  589  2,589  2,759 
Subtotal621,790  646,636  2,463,944  2,459,063 
Inter-segment eliminations (2)(3) (271) (243) (1,149)
Total$621,787  $646,365  $2,463,701  $2,457,914 
        
Operating Income       
Truckload Transportation Services$59,172  $66,833  $202,660  $202,581 
Werner Logistics3,367  7,243  16,288  20,378 
Other (1)354  (886) 5,535  (453)
Corporate2,761  1,741  989  1,709 
Total$65,654  $74,931  $225,472  $224,215 

(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   Year Ended  
 December 31,   December 31,  
 2019 2018 % Chg 2019 2018 % Chg
Truckload Transportation Services segment           
Average tractors in service8,042  7,787  3.3% 7,969  7,622  4.6%
Average revenues per tractor per week (1)$4,071  $4,145  (1.8)% $3,988  $4,007  (0.5)%
Total tractors (at quarter end)           
Company7,460  7,240  3.0% 7,460  7,240  3.0%
Independent contractor540  580  (6.9)% 540  580  (6.9)%
Total tractors8,000  7,820  2.3% 8,000  7,820  2.3%
Total trailers (at quarter end)22,700  23,945  (5.2)% 22,700  23,945  (5.2)%
            
One-Way Truckload           
Trucking revenues, net of fuel surcharge (in 000’s)$188,306  $204,266  (7.8)% $738,510  $770,972  (4.2)%
Average tractors in service3,349  3,315  1.0% 3,376  3,345  0.9%
Total tractors (at quarter end)3,370  3,320  1.5% 3,370  3,320  1.5%
Average percentage of empty miles11.98% 11.66% 2.7% 12.01% 11.17% 7.5%
Average revenues per tractor per week (1)$4,325  $4,739  (8.7)% $4,207  $4,432  (5.1)%
Average % change YOY in revenues per total mile (1)(5.4)% 10.5%   (2.1)% 13.2%  
Average % change YOY in total miles per tractor per week(3.5)% (0.6)%   (3.1)% 0.0%  
Average completed trip length in miles (loaded)862  851  1.3% 848  833  1.8%
            
Dedicated           
Trucking revenues, net of fuel surcharge (in 000’s)$237,252  $215,321  10.2% $914,153  $817,203  11.9%
Average tractors in service4,693  4,472  4.9% 4,593  4,277  7.4%
Total tractors (at quarter end)4,630  4,500  2.9% 4,630  4,500  2.9%
Average revenues per tractor per week (1)$3,888  $3,703  5.0% $3,827  $3,673  4.2%
            
Werner Logistics segment           
Average tractors in service35  42  (16.7)% 36  42  (14.3)%
Total tractors (at quarter end)33  40  (17.5)% 33  40  (17.5)%
Total trailers (at quarter end)1,445  1,310  10.3% 1,445  1,310  10.3%

(1) Net of fuel surcharge revenues

 SUPPLEMENTAL INFORMATION
 (Unaudited)
 (In thousands)
      
 Three Months Ended Year Ended
 December 31, December 31,
 2019 2018 2019 2018
Capital expenditures, net$12,216  $59,682  $283,875  $348,972 
Cash flow from operations94,459  115,646  426,644  418,159 
Return on assets (annualized)9.0% 10.6% 7.8% 8.7%
Return on equity (annualized)17.9% 17.4% 14.6% 13.7%


 CONDENSED BALANCE SHEET
 (In thousands, except share amounts)
    
 December 31, December 31,
 2019 2018
 (Unaudited)  
    
ASSETS   
Current assets:   
Cash and cash equivalents$26,418  $33,930 
Accounts receivable, trade, less allowance of $7,921 and $8,613, respectively322,846  337,927 
Other receivables52,221  26,545 
Inventories and supplies9,243  10,060 
Prepaid taxes, licenses and permits16,757  16,619 
Other current assets38,849  31,577 
Total current assets466,334  456,658 
    
Property and equipment2,343,536  2,247,577 
Less – accumulated depreciation817,260  760,015 
Property and equipment, net1,526,276  1,487,562 
    
Other non-current assets (1)151,254  139,284 
Total assets$2,143,864  $2,083,504 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$94,634  $97,781 
Current portion of long-term debt75,000  75,000 
Insurance and claims accruals69,810  67,304 
Accrued payroll38,347  40,271 
Other current liabilities31,049  30,004 
Total current liabilities308,840  310,360 
    
Long-term debt, net of current portion225,000  50,000 
Other long-term liabilities21,129  10,911 
Insurance and claims accruals, net of current portion (1)228,218  214,030 
Deferred income taxes249,669  233,450 
    
Stockholders’ equity:   
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536   
shares issued; 69,244,525 and 70,441,973 shares outstanding, respectively805  805 
Paid-in capital112,649  107,455 
Retained earnings1,294,608  1,413,746 
Accumulated other comprehensive loss(14,728) (16,073)
Treasury stock, at cost; 11,289,011 and 10,091,563 shares, respectively(282,326) (241,180)
Total stockholders’ equity1,111,008  1,264,753 
Total liabilities and stockholders’ equity$2,143,864  $2,083,504 

(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, 2019 and December 31, 2018.

Werner.jpg

Source: Werner Enterprises, Inc.


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