SPY382.33-9.44 -2.41%
DIA313.98-5.55 -1.74%
IXIC13,119.43-478.54 -3.52%

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

· 02/04/2021 16:05
Key Truckload Transportation Services Segment Financial Metrics Three Months Ended Year Ended December 31, December 31, ------------------------------------- ---------------------------------------- Y/Y Y/Y (In thousands) 2020 2019 Change 2020 2019 Change ------------ ------------ --------- -------------- -------------- -------- Trucking revenues, net of fuel surcharge $434,127 $425,558 2% $1,667,394 $1,652,663 1% Trucking fuel surcharge revenues 36,563 56,485 (35)% 158,611 234,366 (32)% Non-trucking and other revenues 4,347 4,532 (4)% 17,204 22,747 (24)% -------- -------- ---------- ---------- Total revenues $475,037 $486,575 (2)% $1,843,209 $1,909,776 (3)% Operating income 78,613 59,172 33% 222,007 202,660 10% Operating margin 16.5% 12.2% 430 bps 12.0% 10.6% 140 bps (140) Operating ratio 83.5% 87.8% (430) bps 88.0% 89.4% bps Adjusted operating income 79,872 60,370 32% 236,514 206,574 14% Adjusted operating margin 16.8% 12.4% 440 bps 12.8% 10.8% 200 bps Adjusted operating margin, net of fuel-- Revenues of $475.0 million decreased $11.5 million -- Operating income of $78.6 million increased $19.4 million, or 33%; non-GAAP adjusted operating income of $79.9 million increased $19.5 million, or 32% -- Operating margin of 16.5% increased 430 basis points from 12.2%; non-GAAP adjusted operating margin of 16.8% increased 440 basis points from 12.4%. -- Non-GAAP adjusted operating margin, net of fuel, of 18.2% increased 420 basis points from 14.0% -- Average segment trucks in service totaled 7,790, a decrease of 252 trucks year over year, or 3.1% -- Dedicated unit trucks at quarter end totaled 4,945 or 63% of the total TTS segment fleet, compared to 4,630 trucks, or 58%, a year ago -- 5.3% increase in TTS average revenues per truck per week-- Issued our comprehensive Environmental, Social and Governance report, "Building on a Strong Foundation to Drive Greater Sustainability at Werner" -- Earned the 2020 Smartway Excellence Award from the EPA for the fourth consecutive year -- Appointed Carmen Tapio to the Werner Board of Directors -- Named experienced Werner leader Kathy Peissig to the position of AVP - Diversity, Inclusion and Learning -- Announced partnership with, and investment in, Mastery Logistics Systems, including its innovative MasterMind(TM) TMS solution to accelerate Werner TMS supply chain automation, visibility and productivity -- Made an equity investment in TuSimple, an autonomous trucking technology company, to take an active role in developing technologies that will enhance the lives of our professional drivers and customers -- Announced the sale of the Werner Global Logistics freight forwarding services for international ocean and air shipments to focus on providing superior truckload and logistics services in North AmericaKey Consolidated Financial Metrics Three Months Ended Year Ended December 31, December 31, ------------------------------------- ----------------------------------------- (In thousands, except per Y/Y Y/Y share amounts) 2020 2019 Change 2020 2019 Change ------------ ------------ --------- -------------- -------------- --------- Total revenues $620,302 $621,787 0% $2,372,178 $2,463,701 (4)% Truckload Transportation Services revenues 475,037 486,575 (2)% 1,843,209 1,909,776 (3)% Werner Logistics revenues 130,113 120,145 8% 469,791 489,729 (4)% Operating income 81,451 65,654 24% 227,438 225,472 1% Operating margin 13.1% 10.6% 250 bps 9.6% 9.2% 40 bps Net income 60,556 48,496 25% 169,078 166,944 1% Diluted earnings per share 0.88 0.70 26% 2.44 2.38 2% Adjusted operating income (1) 82,710 63,413 30% 241,945 225,947 7% Adjusted operating margin (1) 13.3% 10.2% 310 bps 10.2% 9.2% 100 bps Adjusted net income (1) 61,494 46,821 31% 179,886 167,299 8% Adjusted diluted earnings per share (1) 0.89 0.67 33% 2.59 2.39 8% (1) See GAAP to non-GAAP reconciliation schedule.-- Total revenues of $620.3 million, flat YoY, up 5% sequentially -- Operating income of $81.5 million, up 24% YoY, up 31% sequentially; non-GAAP adjusted operating income of $82.7 million, up 30% YoY, up 29% sequentially -- Operating margin of 13.1%, up 250 bps YoY, up 260 bps sequentially; non-GAAP adjusted operating margin of 13.3%, up 310 bps YoY, up 240 bps sequentially -- Diluted EPS of $0.88, up 26% YoY, up 31% sequentially; non-GAAP adjusted diluted EPS of $0.89, up 33% YoY, up 29% sequentially

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

Fourth Quarter 2020 Highlights

OMAHA, Neb., Feb. 04, 2021 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation's largest transportation and logistics companies, today reported record operating income for the fourth quarter and year ended December 31, 2020.

"Werner produced strong results in the fourth quarter by safely delivering superior on-time service to our customers," said Derek J. Leathers, Vice Chairman, President and Chief Executive Officer. "I have never been more proud of our Werner team. Their resilience, tenacity and perseverance in 2020 enabled us to overcome significant obstacles and challenges.

"I am confident that Werner is very well-positioned to continue our success in 2021. Our young fleet and the high performance delivered by our associates are enabling us to deliver differentiated service levels while efficiently managing our controllable costs. The driver market remains challenging, which should limit growth in truckload industry capacity at a time when we expect demand to be strong due to our customers' low inventory levels. Werner is poised to achieve sustainable performance improvement going forward."

Total revenues for the quarter decreased $1.5 million to $620.3 million versus the prior-year quarter, due to reduced fuel surcharges of $19.9 million due to lower fuel prices, partially offset by 5.3% higher revenues per truck.

Operating income of $81.5 million increased $15.8 million, or 24%, versus the prior-year quarter, while operating margin of 13.1% increased 250 basis points. On a non-GAAP basis, adjusted operating income of $82.7 million increased $19.3 million, or 30%. Adjusted operating margin of 13.3% improved 310 basis points from 10.2% for the same quarter last year. Revenues per truck improvements, combined with effective cost management, generated the margin expansion.

Interest expense of $0.6 million was $1.6 million lower, due to lower average borrowings. The effective income tax rate during the quarter was 25.4% compared to 24.4% in fourth quarter 2019.

Net income of $60.6 million increased 25%. On a non-GAAP basis, adjusted net income increased 31% to $61.5 million compared to $46.8 million for the same quarter last year. Diluted earnings per share (EPS) for the quarter of $0.88 increased 26%. On a non-GAAP basis, adjusted diluted EPS of $0.89 increased 33% compared to $0.67 in fourth quarter 2019.

Noteworthy Developments Since Third Quarter 2020

Truckload Transportation Services (TTS) Segment

In our Dedicated fleet, freight demand remained strong in fourth quarter 2020. We added 230 trucks in Dedicated during the quarter. One-Way Truckload freight demand in fourth quarter 2020 was also strong. Peak holiday season demand started earlier than normal in October and continued well into December. Freight demand in Dedicated and One-Way Truckload has continued to be seasonally strong so far in first quarter 2021.

In fourth quarter 2020, TTS company truck miles decreased by approximately 3.4 million miles, and independent contractor miles decreased by approximately 4.8 million miles.

Comparisons of key financial metrics for the TTS segment, including operating ratios (actual and net of fuel surcharge revenues), are shown below. Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment's operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting against fuel expenses. Eliminating fuel surcharge revenues, which are generally a more volatile source of revenue, provides a more consistent basis for comparing the results of operations from period to period.

(MORE TO FOLLOW) Dow Jones Newswires

February 04, 2021 16:05 ET (21:05 GMT)