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Press Release: Werner Enterprises Reports Record -4-

· 02/04/2021 16:05
OPERATING STATISTICS BY SEGMENT (Unaudited) Three Months Ended Year Ended December 31, December 31, -------------------------- -------------------------- 2020 2019 % Chg 2020 2019 % Chg ------------ ------------ --------- ------------ ------------ --------- Truckload Transportation Services segment ----------------- Average trucks in service 7,790 8,042 (3.1)% 7,757 7,969 (2.7)% Average revenues per truck per week (1) $ 4,287 $ 4,071 5.3% $ 4,134 $ 3,988 3.7% Total trucks (at quarter end) Company 7,390 7,460 (0.9)% 7,390 7,460 (0.9)% Independent contractor 440 540 (18.5)% 440 540 (18.5)% -------- -------- -------- -------- Total trucks 7,830 8,000 (2.1)% 7,830 8,000 (2.1)% Total trailers (at quarter end) 23,125 22,700 1.9% 23,125 22,700 1.9% One-Way Truckload ----------------- Trucking revenues, net of fuel surcharge (in 000's) $176,014 $188,306 (6.5)% $694,868 $738,510 (5.9)% Average trucks in service 2,918 3,349 (12.9)% 3,096 3,376 (8.3)% Total trucks (at quarter end) 2,885 3,370 (14.4)% 2,885 3,370 (14.4)% Average percentage of empty miles 11.69% 11.98% (2.4)% 12.06% 12.01% 0.4% Average revenues per truck per week (1) $ 4,638 $ 4,325 7.2% $ 4,315 $ 4,207 2.6% Average % change YOY in revenues per total mile (1) 6.9% (5.4)% 0.9% (2.1)% Average % change YOY in total miles per truck per week 0.3% (3.5)% 1.6% (3.1)% Average completed trip length in miles (loaded) 869 862 0.8% 852 848 0.5% Dedicated ----------------- Trucking revenues, net of fuel surcharge (in 000's) $258,113 $237,252 8.8% $972,526 $914,153 6.4% Average trucks in service 4,872 4,693 3.8% 4,661 4,593 1.5% Total trucks (at quarter end) 4,945 4,630 6.8% 4,945 4,630 6.8% Average revenues per truck per week (1) $ 4,075 $ 3,888 4.8% $ 4,012 $ 3,827 4.8% Werner Logistics segment ----------------- Average trucks in service 31 35 (11.4)% 31 36 (13.9)%SEGMENT INFORMATION (Unaudited) (In thousands) Three Months Ended Year Ended December 31, December 31, -------------------- -------------------------- 2020 2019 2020 2019 --------- --------- ----------- ------------- Revenues --------------- Truckload Transportation Services $475,037 $486,575 $1,843,209 $1,909,776 Werner Logistics 130,113 120,145 469,791 489,729 Other (1) 14,737 14,386 57,276 61,850 Corporate 467 684 2,009 2,589 -------- -------- ---------- ---------- Subtotal 620,354 621,790 2,372,285 2,463,944 Inter-segment eliminations (2) (52) (3) (107) (243) -------- -------- ---------- ---------- Total $620,302 $621,787 $2,372,178 $2,463,701 ======= ======= ========= ========= Operating Income --------------- Truckload Transportation Services $ 78,613 $ 59,172 $ 222,007 $ 202,660 Werner Logistics 2,633 3,367 6,005 16,288 Other (1) 907 354 3,839 5,535 Corporate (702) 2,761 (4,413) 989 -------- -------- ---------- ---------- Total $ 81,451 $ 65,654 $ 227,438 $ 225,472 ======= ======= ========= =========-------- -------- ---------- ---------- Net income $ 60,556 $ 48,496 $ 169,078 $ 166,944 ======= ======= ========= ========= Diluted shares outstanding 69,052 69,723 69,427 70,026 ======== ======== ========== ========== Diluted earnings per share $ 0.88 $ 0.70 $ 2.44 $ 2.38 ======= ======= ========= ========= Adjusted for: Operating expenses $538,851 $556,133 $2,144,740 $2,238,229 Insurance and claims (1) (1,259) (1,198) (4,893) (3,914) Gains on sale of real estate (2) -- 3,439 -- 3,439 Depreciation (3) -- -- (9,614) -- -------- -------- ---------- ---------- Adjusted operating expenses 537,592 558,374 2,130,233 2,237,754 -------- -------- ---------- ---------- Adjusted operating income (4) 82,710 63,413 241,945 225,947 Total other expense (income) 308 1,530 2,744 3,566 -------- -------- ---------- ---------- Adjusted income before income taxes 82,402 61,883 239,201 222,381 Adjusted income tax expense 20,908 15,062 59,315 55,082 -------- -------- ---------- ---------- Adjusted net income (4) $ 61,494 $ 46,821 $ 179,886 $ 167,299 ======= ======= ========= ========= Diluted shares outstanding 69,052 69,723 69,427 70,026 ======== ======== ========== ========== Adjusted diluted earnings per share (4) $ 0.89 $ 0.67 $ 2.59 $ 2.39 ======= ======= ========= =========

(1) During fourth quarter 2020 and 2019, we accrued pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on May 17, 2018 in a lawsuit arising from a December 2014 accident. The Company is appealing this verdict. Additional information about the accident was included in our Current Report on Form 8-K dated May 17, 2018. Under our insurance policies in effect on the date of this accident, our maximum liability for this accident is $10.0 million (plus pre-judgment and post-judgment interest) with premium-based insurance coverage that exceeds the jury verdict amount. Interest is accrued at $0.4 million per month until such time as the outcome of our appeal is finalized excluding the months of June and July 2019 where the plaintiffs requested an extension of time to respond to our appeal. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(2) During fourth quarter 2019, we sold two parcels of real estate which resulted in a $3,439 pre-tax gain on sale. This item is included in our Segment Information table in "Corporate" operating income.

(3) During first quarter 2020, we changed the estimated life of certain trucks expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market. These trucks continued to depreciate at the same higher rate per truck, until all were sold. Management believes excluding the effect of this unusual and infrequent item provides a more useful comparison of our performance from period to period. This item is included in the Truckload Transportation Services segment in our Segment Information table.

(4) Our definition of the non-GAAP measures adjusted operating income, adjusted net income and adjusted diluted earnings per share begins with (a) operating expenses, the most comparable GAAP measure. We subtract the insurance and claims jury verdict interest accrual and the additional depreciation expense and add the gains on sale of real estate to (a) to arrive at adjusted operating expenses, which we subtract from operating revenues to arrive at (b) adjusted operating income. We subtract (c) total other expense (income) from (b) adjusted operating income to arrive at (d) adjusted income before income taxes. We calculate adjusted income tax expense by applying the incremental income tax rate excluding discrete items to the net pre-tax adjustments and adding this additional income tax to GAAP income tax expense. We then subtract adjusted income tax expense from adjusted income before income taxes to arrive at adjusted net income. The adjusted net income is divided by the diluted shares outstanding to calculate the adjusted diluted earnings per share.

(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities.

(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation.

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