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Werner Enterprises, Inc.$40.25$.25.63%

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 Werner Enterprises Reports Fourth Quarter and Annual 2015 Revenues and Record Earnings
   Thursday, January 28, 2016 4:05:08 PM ET

Werner Enterprises, Inc. (WERN ), one of the nation’s largest transportation and logistics companies, reported revenues and record earnings for the fourth quarter and year ended December 31, 2015.

Summarized financial results for fourth quarter and year 2015 compared to fourth quarter and year 2014 are as follows (dollars in thousands, except per share data):

                                                                                                                                                                                                                                                          
                                                                                                                                                             Three Months Ended                                                                                                                                                   Year Ended
                                                                                                                                                                December 31,                                                                                                                                                     December 31,
                                                                                                                                     ------------------------------------------------------------                                                                                                    --------------------------------------------------------------
                                                                                                                                         2015            2014                                               % Change                                               2015             2014                                                        % Change
                                                                                                                                     ------------                                          ------------                                          ----------                                          -------------                                          -------------                                          --------------------------
Total revenues                                                                                                                       $   528,783                                           $   553,186                                             (4 )%                                             $  2,093,529                                           $  2,139,289                                             (2 )%
Trucking revenues, net of fuel surcharge                                                                                                 368,790                                               354,812                                              4 %                                                 1,411,099                                              1,332,879                                              6 %
Value Added Services ("VAS") revenues                                                96,715                                                98,500                                             (2 )%                                                  393,174                                                390,645                                              1 %
Operating income                                                                                                                          57,261                                                52,627                                              9 %                                                   200,456                                                160,088                                             25 %
Net income                                                                                                                                36,648                                                32,709                                             12 %                                                   123,714                                                 98,650                                             25 %
Earnings per diluted share                                                                                                                  0.51                                                  0.45                                             12 %                                                      1.71                                                   1.36                                             26 %
                                                                                                                                                                                                                                                                                                                                                                                                                         

2015 was a strong earnings year for Werner Enterprises. We would like to take this opportunity to thank the hard working men and women of Werner for keeping America moving and helping us achieve this significant milestone. Their relentless commitment to excellence and outstanding customer service are the keys to our success as we enter our 60th year in business.

Our freight demand in fourth quarter 2015 was less robust than the strong fourth quarter of 2014; however, it was consistent with our average freight demand in the fourth quarters of 2013, 2012 and 2011. Demand was less than expected in the first half of fourth quarter 2015, picked up significant strength in latter November and early December and then tapered to seasonally solid freight levels for the remainder of the year. Freight demand to date in January 2016 has been seasonally softer and in-line with the same periods of 2013, 2012 and 2011. Compared to the same periods in January 2015 and January 2014, freight demand is not as strong.

2014 and 2015 were cyclically contrasting years. 2014 provided the benefits of gradually improving demand from a strengthening economy and constrained supply due to a tight driver market and increasing safety regulations. Freight demand in 2015 did not strengthen as the year progressed, as the rate of economic growth slowed. The truckload sector also experienced supply increases in 2015 as small carrier confidence rose as a result of better rates in 2014 and much lower fuel prices beginning in late 2014. Finally, as 2015 ended, truckload supply began to stabilize as truck orders declined significantly and safety regulators finalized the long awaited electronic logging device regulations in December 2015.

Noting the difficult comparisons to the strong freight market in fourth quarter 2014, average revenues per tractor per week, net of fuel surcharge, decreased 2.3% in fourth quarter 2015 compared to fourth quarter 2014. We continued to focus on securing driver friendly, highly productive freight in a market with fewer surge and project opportunities than we had in fourth quarter 2014. Our average miles per truck declined by 2.8% in fourth quarter 2015 compared to fourth quarter 2014.

Average revenues per total mile, net of fuel surcharge, increased 0.5% in fourth quarter 2015 compared to fourth quarter 2014. Our average length of haul in fourth quarter 2015 was essentially flat compared to fourth quarter 2014.

We are continuing to work with our customers to recoup the cost increases associated with more expensive equipment, a shrinking supply of qualified drivers and an increasingly challenging regulatory environment. Strategic customers understand the collective capacity and service challenges facing our company and our industry and are supportive of Werner’s ongoing initiatives to provide sustainable transportation solutions in support of their supply chain needs.

In fourth quarter 2015, we averaged 7,469 trucks in service in the Truckload segment and 64 intermodal drayage trucks in the VAS segment. Following an ongoing and intense company-wide focus to improve our driver recruiting and retention, we ended fourth quarter 2015 with 7,450 trucks in the Truckload segment, a year-over-year improvement of 400 trucks compared to the end of fourth quarter 2014. Our Specialized Services unit, primarily Dedicated, ended 2015 with 3,675 trucks (or 49% of our total Truckload segment fleet).

Diesel fuel prices were $1.02 per gallon lower in fourth quarter 2015 than in fourth quarter 2014 and were 19 cents per gallon lower than in third quarter 2015. For the first 28 days of January 2016, the average diesel fuel price per gallon was 60 cents lower than the average diesel fuel price per gallon in the same period of 2015 and 78 cents lower than in first quarter 2015. The components of the Company’s total fuel cost consist of and are recorded in our income statement as follows: (i) Fuel (fuel expense for company trucks excluding federal and state fuel taxes); (ii) Taxes and Licenses (federal and state fuel taxes); and (iii) Rent and Purchased Transportation (fuel component of our independent contractor costs, including the base cost of fuel and additional fuel surcharge reimbursement for costs exceeding the fuel base).

Total revenues declined by 4% in fourth quarter 2015 compared to fourth quarter 2014. However, trucking revenues, net of fuel surcharge revenues, grew 4% in fourth quarter 2015 compared to fourth quarter 2014. The significantly lower fuel prices in fourth quarter 2015 compared to fourth quarter 2014 primarily caused a reduction in fuel surcharge revenues by $36 million in the Truckload segment and revenues by an estimated $6 million in the VAS segment. This had the effect of reducing total consolidated revenues by an estimated 8 percentage points in fourth quarter 2015 compared to fourth quarter 2014.

We continue to invest in equipment solutions to improve our driver experience, raise operational efficiency and better manage maintenance and safety costs. We increased our capital expenditures in 2015 to lower the average age of our truck fleet and attained an average age of 1.9 years as of December 31, 2015, which compares to an average age of 2.2 years as of December 31, 2014. Net capital expenditures in 2015 were $351.5 million compared to $212.3 million in 2014. We estimate net capital expenditures for 2016 to be in the range of $400 million to $450 million, assuming mid-single digit fleet growth and a continuing reduction in our truck average age. However, if the freight market shows significant weakness during 2016, we will consider adjusting our capital expenditures accordingly. We remain committed to investing in a best in class fleet for the benefit of our customers, our drivers and the Werner brand.

The driver recruiting market remained challenging during fourth quarter 2015. Several difficult market factors persist including a declining number of, and increased competition for, driver training school graduates, a gradually declining national unemployment rate, aging truck driver demographics and increased truck safety regulations. During fourth quarter 2015, we announced strategic and targeted driver and owner-operator per mile increases in our Van 48-state business units totaling slightly more than $10 million on an annualized basis to nearly 20% of our drivers. Most of these increases became effective January 2016. Over time, we expect the cost benefits of improved retention, higher mileage productivity and lower safety costs will more than offset these pay increases.

Gains on sales of assets were $4.4 million in fourth quarter 2015. This compares to gains on sales of assets of $5.0 million in fourth quarter 2014 and gains on sales of assets of $6.7 million in third quarter 2015 (which included a $0.7 million gain from a real estate sale). In fourth quarter 2015, we sold fewer trucks and more trailers than in fourth quarter 2014. We realized lower average gains per truck and higher average gains per trailer in fourth quarter 2015 compared to fourth quarter 2014. The used truck market weakened in fourth quarter 2015 causing lower pricing. This trend is expected to continue into 2016. Gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

To provide shippers with additional sources of managed capacity and network analysis, we continue to develop our non-asset-based VAS segment. VAS includes Brokerage, Freight Management, Intermodal and Werner Global Logistics (International).

                                                                                                                                                                                                                                                     
                                                                                                                                                                              Three Months Ended                                                                                                                                                                                                                            Year Ended
                                                                                                                                                                                 December 31,                                                                                                                                                                                                                              December 31,
                                                                                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                      -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          2015                                                                            2014                                                                                                                  2015                                                                          2014
                                                                                      ----------------------------------------------------------------------------                                          ----------------------------------------------------------------------------                                          -----------------------------------------------------------------------------                                          -----------------------------------------------------------------------
Value Added Services (amounts in thousands)                                                         $                    %                                                          $                    %                                                          $                     %                                                          $                          %
-------------------------------------------                                           --------------------------                                            -----                                           --------------------------                                            -----                                           ---------------------------                                            -----                                           ---------------------------                       --------------------
Operating revenues                                                                              $          96,715                                           100.0                                                     $          98,500                                           100.0                                                     $          393,174                                           100.0                                                     $          390,645                                     100.0
Rent and purchased transportation expense                                               80,762                                            83.5                                             85,100                                            86.4                                             332,168                                            84.5                                             338,625                                      86.7
                                                                                      -------------------- ------                                                                                           -------------------- ------                                                                                           -------------------- -------                                                                                           -------------------- -------
Gross margin                                                                                               15,953                                            16.5                                                                13,400                                            13.6                                                                 61,006                                            15.5                                                                 52,020                                      13.3
Other operating expenses                                                                11,529                                            11.9                                             10,997                                            11.2                                              44,108                                            11.2                                              44,485                                      11.4
                                                                                      -------------------- ------                                                                                           -------------------- ------                                                                                           -------------------- -------                                                                                           -------------------- -------
Operating income                                                                                $           4,424                                             4.6                                                     $           2,403                                             2.4                                                     $           16,898                                             4.3                                                     $            7,535                                       1.9
                                                                                      ==================== ======                                                                                           ==================== ======                                                                                           ==================== =======                                                                                           ==================== =======
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

In fourth quarter 2015, VAS revenues decreased $1.8 million or 2%, and operating income dollars increased $2.0 million or 84%, compared to fourth quarter 2014. Adjusting for lower fuel prices that reduced operating revenues by an estimated $6 million, operating revenues would have increased 4%. The VAS gross margin percentage in fourth quarter 2015 of 16.5% improved 290 basis points year over year compared to the gross margin percentage of 13.6% in fourth quarter 2014. The VAS operating income percentage in fourth quarter 2015 of 4.6% improved 220 basis points from fourth quarter 2014 of 2.4%.

Comparisons of the operating ratios for the Truckload segment (net of fuel surcharge revenues of $45.3 million and $81.2 million in fourth quarters 2015 and 2014, respectively, and $212.5 million and $349.8 million in 2015 and 2014, respectively) and the VAS segment are shown below.

                                                                                                                                                                                                                                                                                                                                             
                                                                                                 Three Months Ended                                                                                                                                                                                                                          Year Ended
                                                                                                    December 31,                                                                                                                                                                                                                            December 31,
                                                                            ------------------------------------------------------                                                                                                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Ratios                                                              2015         2014                                              Difference                                             2015         2014                                                     Difference
---------------------------------                                           -------                                            -------                                            ----------                                            -----------------------------------------------------------------------------------                                            -----------------------------------------------------------------------------------                                            -------------------------
Truckload Transportation Services                                           84.5 %                                             84.8 %                                              (0.3 )%                                                                                    86.7 %                                                                                                                         88.7 %                                                                                    (2.0 )%
Value Added Services                                                        95.4 %                                             97.6 %                                              (2.2 )%                                                                                    95.7 %                                                                                                                         98.1 %                                                                                    (2.4 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the Truckload 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. The Truckload segment’s operating ratios for fourth quarter 2015 and fourth quarter 2014 are 86.2% and 87.6%, respectively, and for 2015 and 2014 are 88.5% and 91.0%, respectively, when fuel surcharge revenues are reported as revenues instead of a reduction of operating expenses.

Our financial position remains strong. As of December 31, 2015, we had $75.0 million of debt outstanding and $935.7 million of stockholders’ equity.

                                        
                                                                                                                                                                                                                                                                                                                    INCOME STATEMENT
                                                                                                                                                                                                                                                                                                                    (Unaudited)
                                                                                                                                                                                                                                                                                                                    (In thousands, except per share amounts)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                           Three Months Ended                                                                                                                                                                                                                                                                                                                                        Year Ended
                                                                                                                                                                                                                              December 31,                                                                                                                                                                                                                                                                                                                                          December 31,
                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             2015                                                                                                                                2014                                                                                                                                                                       2015                                                                                                                                                                        2014
                                                                               --------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                        $                                              %                                                                                    $                                              %                                                                                     $                                                                                     %                                                                                     $                                                                                     %
                                                                               --------------------------------------------------                                          ------------------------------------                                          --------------------------------------------------                                          ------------------------------------                                          ----------------------------------------------------                                          ------------------------------------                                          ----------------------------------------------------                                          ------------------------------------
Operating revenues                                                                       $          528,783                                                      100.0                                                       $          553,186                                                      100.0                                                       $          2,093,529                                                      100.0                                                       $          2,139,289                                                      100.0  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
Operating expenses:
   Salaries, wages and benefits                                                                     160,766                                                                          30.4                                                                                     155,581                                                                          28.1                                                                                       639,908                                                                          30.6                                                                                       584,006                                                                          27.3
   Fuel                                                                                              43,587                                                                           8.2                                                                                      76,032                                                                          13.7                                                                                       204,583                                                                           9.8                                                                                       346,058                                                                          16.2
   Supplies and maintenance                                                                          45,786                                                                           8.7                                                                                      48,169                                                                           8.7                                                                                       190,114                                                                           9.1                                                                                       188,437                                                                           8.8
   Taxes and licenses                                                                                23,187                                                                           4.4                                                                                      21,905                                                                           4.0                                                                                        89,646                                                                           4.3                                                                                        85,468                                                                           4.0
   Insurance and claims                                                                              20,814                                                                           3.9                                                                                      21,200                                                                           3.8                                                                                        80,848                                                                           3.9                                                                                        80,375                                                                           3.7
   Depreciation                                                                                      50,144                                                                           9.5                                                                                      45,106                                                                           8.2                                                                                       193,209                                                                           9.2                                                                                       176,984                                                                           8.3
   Rent and purchased transportation                                                                119,918                                                                          22.7                                                                                     125,004                                                                          22.6                                                                                       480,624                                                                          22.9                                                                                       498,782                                                                          23.3
   Communications and utilities                                                                       3,820                                                                           0.7                                                                                       3,623                                                                           0.7                                                                                        15,121                                                                           0.7                                                                                        14,220                                                                           0.7
   Other                                                                           3,500                                                        0.7                                                 3,939                                                        0.7                                                    (980 )                                                                        (0.1 )                                                                    4,871                                                        0.2  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
      Total operating expenses                                                   471,522                                                       89.2                                               500,559                                                       90.5                                               1,893,073                                                       90.4                                               1,979,201                                                       92.5  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
Operating income                                                                  57,261                                                       10.8                                                52,627                                                        9.5                                                 200,456                                                        9.6                                                 160,088                                                        7.5  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
Other expense (income):
   Interest expense                                                                                     405                                                                --                                                                                         511                                                                           0.1                                                                                         1,974                                                                           0.1                                                                                           881                                                                --
   Interest income                                                                                     (787 )                                                                        (0.1 )                                                                                      (609 )                                                                        (0.1 )                                                                                      (2,875 )                                                                        (0.1 )                                                                                      (2,538 )                                                                        (0.1 )
   Other                                                                             (61 )                                                              --                                                   (31 )                                                              --                                                     196                                             --                                                     (29 )                                                              --  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
      Total other expense (income)                                                  (443 )                                                                        (0.1 )                                                                   (129 )                                                              --                                                    (705 )                                                              --                                                  (1,686 )                                                                        (0.1 )
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
Income before income taxes                                                                           57,704                                                                          10.9                                                                                      52,756                                                                           9.5                                                                                       201,161                                                                           9.6                                                                                       161,774                                                                           7.6
Income taxes                                                                      21,056                                                        4.0                                                20,047                                                        3.6                                                  77,447                                                        3.7                                                  63,124                                                        3.0  
                                                                               -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- ------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------                                           -------------------- --------- --------------------                                           -------------- --------------------
Net income                                                                               $           36,648                                                        6.9                                                       $           32,709                                                        5.9                                                       $            123,714                                                        5.9                                                       $             98,650                                                        4.6  
                                                                               ==================== ======= ====================                                           ============== ====================                                           ==================== ======= ====================                                           ============== ====================                                           ==================== ========= ====================                                           ============== ====================                                           ==================== ========= ====================                                           ============== ====================
Diluted shares outstanding                                                        72,417                                                                                                                              72,508                                                                                                                                72,556                                                                                                                                72,738  
                                                                               ==================== ======= ====================                                                                                                                         ==================== ======= ====================                                                                                                                         ==================== ========= ====================                                                                                                                         ==================== ========= ====================
Diluted earnings per share                                                               $             0.51                                                                                                                                     $             0.45                                                                                                                                     $               1.71                                                                                                                                     $               1.36  
                                                                               ==================== ======= ====================                                                                                                                         ==================== ======= ====================                                                                                                                         ==================== ========= ====================                                                                                                                         ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                     
                                                                                                                                                                                                                                        SEGMENT INFORMATION
                                                                                                                                                                                                                                            (Unaudited)
                                                                                                                                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                     
                                                                                                                                          Three Months Ended                                                                                                                                                                            Year Ended
                                                                                                                                             December 31,                                                                                                                                                                              December 31,
                                                                            --------------------------------------------------------------------------------------------------------------------------------------                                                  -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   2015                                                  2014                                                                                         2015                                                                                          2014
                                                                            --------------------------------------------------                                          --------------------------------------------------                                          ----------------------------------------------------                                          -----------------------------------------------------
Revenues
---------------------------------
Truckload Transportation Services                                                     $          419,435                                                                          $          440,943                                                                          $          1,644,874                                                                          $           1,702,137
Value Added Services                                                                              96,715                                                                                      98,500                                                                                       393,174                                                                                        390,645
Driving Schools and Other                                                                         12,516                                                                                      13,473                                                                                        54,512                                                                                         46,588
Corporate                                                                         417                                                   728                                                   2,297                                                    2,803  
                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
    Subtotal                                                                                     529,083                                                                                     553,644                                                                                     2,094,857                                                                                      2,142,173
Inter-segment eliminations (1)                                                   (300 )                                                                   (458 )                                                                   (1,328 )                                                                    (2,884 )
                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
      Total                                                                           $          528,783                                                       $          553,186                                                       $          2,093,529                                                       $           2,139,289  
                                                                            ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                   
Operating Income
---------------------------------
Truckload Transportation Services                                                     $           57,949                                                                          $           54,754                                                                          $            189,850                                                                          $             152,992
Value Added Services                                                                               4,424                                                                                       2,403                                                                                        16,898                                                                                          7,535
Driving Schools and Other                                                                         (5,475 )                                                                                    (5,236 )                                                                                      (7,513 )                                                                                       (3,991 )
Corporate                                                                         363                                                   706                                                   1,221                                                    3,552  
                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------
      Total                                                                           $           57,261                                                       $           52,627                                                       $            200,456                                                       $             160,088  
                                                                            ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ========= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                        

(1) 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,
                                                                                    ------------------------------------------------------------------------------------------------------------------------------------                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          2015                                                 2014                                                                  % Change                                                                 2015                                                                                       2014                                                                       % Change
                                                                                    -------------------------------------------------                                          -------------------------------------------------                                          ----------                                          -------------------------------------------------                                          -------------------------------------------------                                          ---------------------
Truckload Transportation Services segment
-----------------------------------------
Average percentage of empty miles                                                                         12.63 %                                                                                    12.08 %                                                               4.6 %                                                                    12.39 %                                                                                    12.06 %                                                                     2.7 %
Average trip length in miles (loaded)                                                                       485                                                                                        484                                                                 0.2 %                                                                      482                                                                                        473                                                                       1.9 %
Average tractors in service                                                                               7,469                                                                                      7,021                                                                 6.4 %                                                                    7,271                                                                                      7,013                                                                       3.7 %
Average revenues per tractor per week (1)                                                     $           3,798                                                                          $           3,888                                                                (2.3 )%                                                       $           3,732                                                                          $           3,655                                                                       2.1 %
Total trailers (at quarter end)                                                                          22,630                                                                                     22,305                                                                                                                                         22,630                                                                                     22,305
Total tractors (at quarter end)
    Company                                                                                               6,635                                                                                      6,400                                                                                                                                          6,635                                                                                      6,400
    Independent contractor                                                               815                                                  650                                                                                                      815                                                  650  
                                                                                    -------------------- ------ --------------------                                           -------------------- ------ --------------------                                                                                               -------------------- ------ --------------------                                           -------------------- ------ --------------------
        Total tractors                                                                                    7,450                                                                                      7,050                                                                                                                                          7,450                                                                                      7,050
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Value Added Services segment
-----------------------------------------
Average tractors in service                                                                                  64                                                                                         55                                                                                                                                             56                                                                                         50
Total trailers (at quarter end)                                                                           1,460                                                                                      1,670                                                                                                                                          1,460                                                                                      1,670
Total tractors (at quarter end)                                                                              62                                                                                         55                                                                                                                                             62                                                                                         55
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

(1) Net of fuel surcharge revenues.

                                 
                                                                                                                                                              SUPPLEMENTAL INFORMATION
                                                                                                                                                                     (Unaudited)
                                                                                                                                                                   (In thousands)
                                                                                                                                                                
                                                                                                 Three Months Ended                                                                                                         Year Ended
                                                                                                    December 31,                                                                                                           December 31,
                                                                        -------------------------------------------------------------                                                  -----------------------------------------------------------------------------
                                                                             2015             2014                                                   2015                                                           2014
                                                                        --------------                                          -------------                                          ------------                                          -------------------------------
Capital expenditures, net                                                $ 100,374                                               $ 65,455                                               $351,483                                              $212,294
Cash flow from operations                                                   87,620                                                 41,354                                                370,392                                               206,565
Return on assets (annualized)                                                  9.2 %                                                  8.9 %                                                  8.0 %                                                 7.0 %
Return on equity (annualized)                                                 15.9 %                                                 15.9 %                                                 14.1 %                                                12.4 %
                                                                                                                                                                                                                                                        
                                                                            
                                                                                                                                                                                 CONDENSED BALANCE SHEET
                                                                                                                                                                          (In thousands, except share amounts)
                                                                                                                                                                          
                                                                                                                                     December 31, 2015                                                                             December 31, 2014
                                                                                                                   ----------------------------------------------------                                          ----------------------------------------------------
                                                                                                                                        (Unaudited)
                                                                                                                                                                                                                  
ASSETS
   Current assets:
   Cash and cash equivalents                                                                                                 $             31,833                                                                          $             22,604
   Accounts receivable, trade, less allowance of $10,298 and $10,017,                                                                     251,023                                                                                       266,727
   respectively
   Other receivables                                                                                                                       17,241                                                                                        20,316
   Inventories and supplies                                                                                                                16,415                                                                                        17,824
   Prepaid taxes, licenses and permits                                                                                                     15,657                                                                                        14,914
   Current deferred income taxes                                                                                                           28,037                                                                                        34,066
   Income taxes receivable                                                                                                                 20,052                                                                                        23,435
   Other current assets                                                                                                 27,281                                                  26,458  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total current assets                                                                                             407,539                                                 426,344  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                  
Property and equipment                                                                                                                  1,908,600                                                                                     1,786,229
Less - accumulated depreciation                                                                           754,130                                                 772,447  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Property and equipment, net                                                                                    1,154,470                                               1,013,782  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                  
Other non-current assets                                                                                                51,675                                                  40,336  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total assets                                                                                                                 $          1,613,684                                                       $          1,480,462  
                                                                                                                   ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
   Accounts payable                                                                                                          $             70,643                                                                          $             64,827
   Insurance and claims accruals                                                                                                           64,106                                                                                        73,814
   Accrued payroll                                                                                                                         25,233                                                                                        28,121
   Other current liabilities                                                                                            23,720                                                  19,768  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total current liabilities                                                                                        183,702                                                 186,530  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
                                                                                                                                                                                                                  
Long-term debt, net of current portion                                                                                                     75,000                                                                                        75,000
Other long-term liabilities                                                                                                                19,832                                                                                        20,021
Insurance and claims accruals, net of current portion                                                                                     125,195                                                                                       123,445
Deferred income taxes                                                                                                                     274,301                                                                                       241,606
                                                                                                                                                                                                                  
Stockholders’ equity:
                                                                                                                                              805                                                                                           805
   Common stock, $.01 par value, 200,000,000 shares authorized;
   80,533,536 shares issued; 71,998,750 and 72,038,368 shares
   outstanding, respectively
   Paid-in capital                                                                                                                        102,734                                                                                       101,803
   Retained earnings                                                                                                                    1,022,966                                                                                       915,085
   Accumulated other comprehensive loss                                                                                                   (13,063 )                                                                                      (9,375 )
   Treasury stock, at cost; 8,534,786 and 8,495,168 shares, respectively                                              (177,788 )                                                                 (174,458 )
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
      Total stockholders’ equity                                                            935,654                                                 833,860  
                                                                                                                   -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total liabilities and stockholders’ equity                                                                                   $          1,613,684                                                       $          1,480,462  
                                                                                                                   ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                  

On January 27, 2016, Gary L. Werner provided notice of his intent to retire from the Board of Directors and as the Vice Chairman of the company, effective February 12, 2016. Mr. Werner is retiring after more than 40 years of service and the Company is very thankful for his many years of valued service.

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, China and Australia. Werner is among the five largest truckload carriers in the United States, with a diversified portfolio of transportation services that includes dedicated van, temperature-controlled and flatbed; medium-to-long-haul, regional and local van; and expedited services. Werner’s Value Added Services portfolio includes freight management, truck brokerage, intermodal, and international 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 Market(SM) 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, 2014.

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.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160128006461r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160128006461/en/

SOURCE: Werner Enterprises, Inc.

Werner Enterprises, Inc. 
John J. Steele, 402-894-3036 
Executive Vice President, Treasurer and 
Chief Financial Officer


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