Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported record second quarter operating income, net income and diluted earnings per share for the quarter ended June 30, 2021.

“Werner achieved record second quarter results based on our strong execution in a robust freight market,” said Derek J. Leathers, Chairman, President and Chief Executive Officer. “The rapidly recovering economy combined with a severely constrained driver market is presenting labor challenges for customers and carriers alike. I am proud of the Werner team for working tirelessly and creatively to provide our customers with best-in-class solutions and superior performance.”

Total revenues for the quarter were $649.8 million, an increase of $80.9 million compared to the prior year quarter, due primarily to Truckload Transportation Services revenues growth of $46.1 million and Logistics revenues growth of $31.5 million.

Operating income of $76.9 million increased $24.0 million, or 46%, while operating margin of 11.8% increased 250 basis points. On a non-GAAP basis, adjusted operating income of $79.1 million increased $21.4 million, or 37%. Adjusted operating margin of 12.2% improved 210 basis points from 10.1% for the same quarter last year.

We generated operating margin expansion from significantly higher revenues per total mile, continued strong safety performance, effective cost management and improved gains on sales of trucks and trailers. These improvements were partially offset by inflationary cost increases for drivers, fuel and other expenses and lower miles per truck due to a higher percentage of Dedicated trucks to total trucks and fewer team drivers.

Interest expense of $0.7 million decreased from $1.2 million due to lower average borrowings. The effective income tax rate during the quarter was 25.5% compared to 24.8% in second quarter 2020.

In first quarter 2021, Werner made a strategic minority equity investment in TuSimple, an autonomous technology company. TuSimple completed an initial public offering in April 2021. As a result, we recognized a $20.2 million, or $0.22 per share, unrealized gain on our investment, which increased our non-operating income in second quarter 2021.

Net income of $72.0 million increased 84%. On a non-GAAP basis, adjusted net income of $58.7 million increased 37%. Diluted earnings per share (EPS) for the quarter of $1.06 increased 87%. On a non-GAAP basis, adjusted diluted EPS of $0.86 increased 40%.

Key Consolidated Financial Metrics

  Three Months Ended June 30,   Six Months Ended June 30,
(In thousands, except per share amounts) 2021   2020   Y/Y Change   2021   2020   Y/Y Change
Total revenues $ 649,814     $ 568,959     14 %   $ 1,266,260     $ 1,161,662     9 %
Truckload Transportation Services revenues 491,200     445,053     10 %   954,149     909,916     5 %
Werner Logistics revenues 141,673     110,163     29 %   279,526     222,327     26 %
Operating income 76,863     52,818     46 %   139,334     83,884     66 %
Operating margin 11.8 %   9.3 %   250 bps   11.0 %   7.2 %   380 bps
Net income 72,032     39,132     84 %   118,524     62,190     91 %
Diluted earnings per share 1.06     0.56     87 %   1.74     0.89     94 %
                       
Adjusted operating income (1) 79,113     57,695     37 %   141,829     94,973     49 %
Adjusted operating margin (1) 12.2 %   10.1 %   210 bps   11.2 %   8.2 %   300 bps
Adjusted net income (1) 58,666     42,765     37 %   105,340     70,451     50 %
Adjusted diluted earnings per share (1) 0.86     0.62     40 %   1.54     1.01     52 %

(1) See GAAP to non-GAAP reconciliation schedule.

Noteworthy Developments

  • On July 1, 2021, Werner acquired an 80% equity ownership interest in ECM Transport Group (“ECM”) for a purchase price of $142.4 million. ECM achieved revenues of $108 million in 2020 with an operating margin 19.8%. ECM consists of ECM Transport and Motor Carrier Service, which are elite regional truckload carriers that together operate nearly 500 trucks and 2,000 trailers in the Mid-Atlantic, Ohio and Northeast regions of the U.S.
  • Werner issued its inaugural Corporate Social Responsibility report on July 27, 2021 which is accessible from the Company’s website at werner.com

Truckload Transportation Services (TTS) Segment

  • Revenues of $491.2 million increased $46.1 million
  • Operating income of $73.1 million increased $21.9 million, or 43%; non-GAAP adjusted operating income of $74.4 million increased $18.3 million, or 33%
  • Operating margin of 14.9% increased 340 basis points from 11.5%; non-GAAP adjusted operating margin of 15.1% increased 250 basis points from 12.6%
  • Non-GAAP adjusted operating margin, net of fuel, of 17.1% increased 340 basis points from 13.7%
  • Average segment trucks in service totaled 7,664, a decrease of 98 trucks year over year, or 1.3%
  • Dedicated unit trucks at quarter end totaled 5,040 or 66% of the total TTS segment fleet, compared to 4,535 trucks, or 59%, a year ago
  • 6.7% increase in TTS average revenues per truck per week

In our Dedicated and One-Way Truckload fleets, freight demand was strong during second quarter 2021. Freight demand has continued to be strong so far in third quarter 2021.

Total miles decreased 12.3 million miles in second quarter 2021, caused by a higher percentage of Dedicated trucks to total trucks and fewer team drivers, and 1.3% fewer average trucks in service. TTS company truck miles decreased by approximately 6.8 million miles, and independent contractor miles decreased by approximately 5.5 million miles.

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

Key Truckload Transportation Services Segment Financial Metrics

  Three Months Ended June 30,   Six Months Ended June 30,
(In thousands) 2021   2020   Y/Y Change   2021   2020   Y/Y Change
Trucking revenues, net of fuel surcharge $ 428,523     $ 406,834     5 %   $ 839,175     $ 815,932     3 %
Trucking fuel surcharge revenues 57,439     34,208     68 %   104,898     85,249     23 %
Non-trucking and other revenues 5,238     4,011     31 %   10,076     8,735     15 %
Total revenues $ 491,200     $ 445,053     10 %   $ 954,149     $ 909,916     5 %
                       
Operating income 73,108     51,225     43 %   130,736     80,314     63 %
Operating margin 14.9 %   11.5 %   340 bps   13.7 %   8.8 %   490 bps
Operating ratio 85.1 %   88.5 %   (340) bps   86.3 %   91.2 %   (490) bps
                       
Adjusted operating income 74,366     56,102     33 %   133,252     91,403     46 %
Adjusted operating margin 15.1 %   12.6 %   250 bps   14.0 %   10.0 %   400 bps
Adjusted operating margin, net of fuel surcharge 17.1 %   13.7 %   340 bps   15.7 %   11.1 %   460 bps
Adjusted operating ratio 84.9 %   87.4 %   (250) bps   86.0 %   90.0 %   (400) bps
Adjusted operating ratio, net of fuel surcharge 82.9 %   86.3 %   (340) bps   84.3 %   88.9 %   (460) bps

Werner Logistics Segment

  • Revenues of $141.7 million increased $31.5 million, or 29%
  • Gross margin of 12.2% decreased 350 bps
  • Operating income of $3.9 million increased $0.8 million, or 25%
  • Operating margin of 2.8% remained flat

Logistics revenues of $142 million increased 29%. Logistics revenues increased 52%, if you exclude Werner Global Logistics (WGL) revenues from second quarter 2020. Werner sold WGL in first quarter 2021.

Truckload Logistics revenues (69% of total Logistics revenues) increased 49%. Truckload Logistics volume increased 10%, and revenues per shipment increased 37%.

Intermodal revenues (29% of Logistics revenues) increased 52%, due to volume growth of 30% and 17% higher revenues per shipment.

The gross margin percentage decreased 350 bps due to higher spot truckload and intermodal dray rates which significantly increased the cost of capacity for contractual brokerage shipments and Intermodal shipments in second quarter 2021. The Logistics gross profit remained flat while operating income increased 25% as other operating expenses declined 6% due to improved automation and efficiency.

Key Werner Logistics Segment Financial Metrics

  Three Months Ended June 30,   Six Months Ended June 30,
(In thousands) 2021   2020   Y/Y Change   2021   2020   Y/Y Change
Total revenues $ 141,673     $ 110,163     29 %   $ 279,526     $ 222,327     26 %
Rent and purchased transportation expense 124,388     92,842     34 %   244,915     188,774     30 %
Gross profit 17,285     17,321     0 %   34,611     33,553     3 %
Other operating expenses 13,358     14,182     (6) %   26,110     29,329     (11) %
Operating income 3,927     3,139     25 %   8,501     4,224     101 %
Gross margin 12.2 %   15.7 %   (350) bps   12.4 %   15.1 %   (270) bps
Operating margin 2.8 %   2.8 %   — bps   3.0 %   1.9 %   110 bps

Cash Flow and Capital Allocation

Cash flow from operations in second quarter 2021 was $53.6 million compared to $154.0 million in second quarter 2020, a decrease of 65%. The decrease was primarily due to working capital changes resulting from the timing of estimated income tax payments and changes in accounts receivable.

Net capital expenditures in the second quarter 2021 were $65.1 million compared to $88.8 million in second quarter 2020, a decrease of 27%. We plan to continue to invest in new trucks and trailers and our terminals to improve our driver experience, optimize operational efficiency and more effectively manage our maintenance, safety and fuel costs. The average ages of our truck and trailer fleets remain low by industry standards and were 2.0 years and 4.1 years, respectively, as of June 30, 2021.

Gains on sales of equipment in second quarter 2021 were $13.5 million, or $0.15 per share, compared to $0.9 million, or $0.01 per share, in second quarter 2020. Year over year, we sold more trucks and fewer trailers and realized substantially higher average gains per truck and trailer due to the significantly improved pricing market for our used equipment. As a reminder, gains on sales of assets are reflected as a reduction of Other Operating Expenses in our income statement.

We did not repurchase shares of our common stock in second quarter 2021. As of June 30, 2021, we had 2.7 million shares remaining under our share repurchase authorization.

As of June 30, 2021, we had $192 million of cash and nearly $1.3 billion of stockholders’ equity. Total debt outstanding increased $125 million during the quarter to $300 million at June 30, 2021. After considering letters of credit issued, we had available liquidity consisting of cash and available borrowing capacity as of June 30, 2021 of $441 million, prior to the closing payment for ECM on July 1, 2021.

2021 Guidance Metrics and Assumptions

The following table summarizes our updated 2021 guidance and assumptions:

2021 Guidance Prior (as of 4/28/21) Actual (as of 6/30/21) New (as of 7/29/21) Commentary
TTS truck growth from BoY to EoY 1% to 3%(annual) (2)%(YTD21) 1% to 4%(annual) Includes ECM acquisition of 500 trucks
Gains on sales of equipment $7M to $10M(2Q21) $13.5M (2Q21) $9M to $13M(3Q21) Guidance based on lower sales volume, higher pricing and subject to timing of OEM new truck and trailer deliveries
Net capital expenditures $275M to $300M(annual) $103M(YTD21) $275M to $300M(annual) Larger net CapEx in 2H21 due to timing of OEM deliveries
TTS Guidance        
Dedicated RPTPW* growth 3% to 5%(annual) 2.4%(2Q21 vs. 2Q20) 3% to 5%(annual) Rates in 2Q21 vs. 2Q20 above guidance range, miles per truck lower due to fleet mix
One-Way Truckload (OWT) RPTM* growth 13% to 16%(2Q21 vs. 2Q20) 16.7%(2Q21 vs. 2Q20) 16% to 19%(2H21 vs. 2H20) New guidance includes the favorable impact of the ECM acquisition in 2H21 (16% of OWT fleet)
Assumptions        
Effective income tax rate 24.5% to 25.5%(annual) 25.5%(2Q21) 24.5% to 25.5%(annual)  
Truck ageTrailer age 2.0 yearsLow-to-mid “4” years 2.0 years4.1 years 2.0 yearsLow-to-mid “4” years Reinvesting to maintain young fleet advantage, subject to timing of OEM deliveries

* Net of fuel surcharge revenues

Conference Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss second quarter 2021 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at werner.com in the “Investors” section under “News & Events” and then “Webcasts & Presentations.” To participate in the conference call, please dial (844) 701-1165 (domestic) or (412) 317-5498 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call.

A replay of the conference call will be available on July 29, 2021 at approximately 6:00 p.m. CT through August 29, 2021 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 10150332. A replay of the webcast will also be available at werner.com in the “Investors” section under “News & Events” and then “Webcasts & Presentations.”

About Werner Enterprises

Werner Enterprises, Inc. (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2020 revenues of $2.4 billion, an industry-leading modern truck and trailer fleet, over 13,000 talented associates and our innovative Werner Edge technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. As an industry leader, Werner is deeply committed to promoting sustainability and supporting diversity, equity and inclusion.

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, 2020.

For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission, through the issuance of press releases or by other methods of public disclosure.

To supplement our financial results presented on a GAAP basis, we provide certain non-GAAP financial measures, including adjusted operating income, adjusted net income and adjusted diluted earnings per share. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

Contact:John J. SteeleExecutive Vice President, Treasurerand Chief Financial Officer(402) 894-3036

Source: Werner Enterprises, Inc.

  INCOME STATEMENT
  (Unaudited)
  (In thousands, except per share amounts)
                   
  Three Months Ended June 30,   Six Months Ended June 30,
  2021   2020   2021   2020
  $   %   $   %   $   %   $   %
Operating revenues $ 649,814       100.0       $ 568,959       100.0       $ 1,266,260       100.0       $ 1,161,662       100.0    
Operating expenses:                              
Salaries, wages and benefits 210,095       32.4       194,981       34.3       414,948       32.8       400,978       34.5    
Fuel 58,503       9.0       30,677       5.4       109,341       8.6       79,448       6.8    
Supplies and maintenance 49,414       7.6       43,343       7.6       95,561       7.5       89,064       7.7    
Taxes and licenses 23,744       3.7       23,953       4.2       46,977       3.7       46,803       4.0    
Insurance and claims 20,739       3.2       25,789       4.5       42,795       3.4       61,853       5.3    
Depreciation 63,865       9.8       67,670       11.9       127,816       10.1       136,507       11.8    
Rent and purchased transportation 150,920       23.2       120,704       21.2       297,413       23.5       247,146       21.3    
Communications and utilities 3,333       0.5       3,536       0.6       6,355       0.5       7,344       0.6    
Other (7,662 )     (1.2 )     5,488       1.0       (14,280 )     (1.1 )     8,635       0.8    
Total operating expenses 572,951       88.2       516,141       90.7       1,126,926       89.0       1,077,778       92.8    
Operating income 76,863       11.8       52,818       9.3       139,334       11.0       83,884       7.2    
Other expense (income):                              
Interest expense 701       0.1       1,161       0.2       1,539       0.1       2,752       0.2    
Interest income (334 )     (0.1 )     (377 )     (0.1 )     (631 )           (1,003 )     (0.1 )  
Gain on equity investment (20,191 )     (3.1 )                 (20,191 )     (1.6 )              
Other 54             23             96             68          
Total other expense (income) (19,770 )     (3.1 )     807       0.1       (19,187 )     (1.5 )     1,817       0.1    
Income before income taxes 96,633       14.9       52,011       9.2       158,521       12.5       82,067       7.1    
Income tax expense 24,601       3.8       12,879       2.3       39,997       3.1       19,877       1.7    
Net income $ 72,032       11.1       $ 39,132       6.9       $ 118,524       9.4       $ 62,190       5.4    
Diluted shares outstanding 68,216           69,435           68,237           69,531        
Diluted earnings per share $ 1.06           $ 0.56           $ 1.74           $ 0.89        
  GAAP TO NON-GAAP RECONCILIATION
  (Unaudited)
  (In thousands, except per share amounts)
               
  Three Months Ended June 30,   Six Months Ended June 30,
  2021   2020   2021   2020
Operating revenues $ 649,814       $ 568,959       $ 1,266,260       $ 1,161,662    
Operating expenses 572,951       516,141       1,126,926       1,077,778    
Operating income 76,863       52,818       139,334       83,884    
Total other expense (income) (19,770 )     807       (19,187 )     1,817    
Income before income taxes 96,633       52,011       158,521       82,067    
Income tax expense 24,601       12,879       39,997       19,877    
Net income $ 72,032       $ 39,132       $ 118,524       $ 62,190    
Diluted shares outstanding 68,216       69,435       68,237       69,531    
Diluted earnings per share $ 1.06       $ 0.56       $ 1.74       $ 0.89    
               
Adjusted for:              
Operating expenses $ 572,951       $ 516,141       $ 1,126,926       $ 1,077,778    
Insurance and claims (1) (1,258 )     (1,198 )     (2,516 )     (2,396 )  
Acquisition expenses (2) (992 )           (992 )        
Gain on sale of Werner Global Logistics (3)             1,013          
Depreciation (4)       (3,679 )           (8,693 )  
Adjusted operating expenses 570,701       511,264       1,124,431       1,066,689    
Adjusted operating income (5) 79,113       57,695       141,829       94,973    
Total other expense (income) (19,770 )     807       (19,187 )     1,817    
Adjusted for:              
Gain on equity investment (6) 20,191             20,191          
Adjusted income before income taxes 78,692       56,888       140,825       93,156    
Adjusted income tax expense 20,026       14,123       35,485       22,705    
Adjusted net income (5) $ 58,666       $ 42,765       $ 105,340       $ 70,451    
Diluted shares outstanding 68,216       69,435       68,237       69,531    
Adjusted diluted earnings per share (5) $ 0.86       $ 0.62       $ 1.54       $ 1.01    

(1) During second quarter 2021 and 2020, 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. 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 second quarter 2021, we incurred legal and professional fees related to the acquisition of ECM Transport Group, which was finalized on July 1, 2021. The expenses are included within other operating expenses in the Income Statement and in Corporate operating income in our Segment Information table.

(3) During first quarter 2021, we sold Werner Global Logistics (“WGL”) freight forwarding services for international ocean and air shipments to Scan Global Logistics Group, which resulted in the pre-tax gain on sale. 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 Werner Logistics segment in our Segment Information table.

(4) 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.

(5) 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, the acquisition expenses, and the additional depreciation expense and add the gain on sale of WGL 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) adjusted to remove the gain on equity investment 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.

(6) Non-operating, mark-to-market gain on our ownership interest in TuSimple, an autonomous technology company. TuSimple completed its initial public offering in April 2021. Upon completion, our equity investment was converted to Class A common shares. We account for our interest, which represents less than 1%, under ASC 321, Investments - Equity Securities. We record changes in the value of our investment, based on the share price reported by Nasdaq, in other expense (income) in the Income Statement. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period.

  SEGMENT INFORMATION
  (Unaudited)
  (In thousands)
           
  Three Months Ended June 30,   Six Months Ended June 30,
  2021   2020   2021   2020
Revenues              
Truckload Transportation Services $ 491,200       $ 445,053       $ 954,149       $ 909,916    
Werner Logistics 141,673       110,163       279,526       222,327    
Other (1) 16,725       13,315       32,124       28,383    
Corporate 409       442       788       1,061    
Subtotal 650,007       568,973       1,266,587       1,161,687    
Inter-segment eliminations (2) (193 )     (14 )     (327 )     (25 )  
Total $ 649,814       $ 568,959       $ 1,266,260       $ 1,161,662    
               
Operating Income              
Truckload Transportation Services $ 73,108       $ 51,225       $ 130,736       $ 80,314    
Werner Logistics 3,927       3,139       8,501       4,224    
Other (1) 1,663       (534 )     2,529       2,366    
Corporate (1,835 )     (1,012 )     (2,432 )     (3,020 )  
Total $ 76,863       $ 52,818       $ 139,334       $ 83,884    

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

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

  OPERATING STATISTICS BY SEGMENT
  (Unaudited)
               
  Three Months Ended June 30,       Six Months Ended June 30,    
  2021   2020   % Chg   2021   2020   % Chg
Truckload Transportation Services segment                      
Average trucks in service 7,664       7,762       (1.3 ) %   7,727       7,812       (1.1 ) %
Average revenues per truck per week (1) $ 4,301       $ 4,032       6.7   %   $ 4,177       $ 4,017       4.0   %
Total trucks (at quarter end)                      
Company 7,305       7,165       2.0   %   7,305       7,165       2.0   %
Independent contractor 340       485       (29.9 ) %   340       485       (29.9 ) %
Total trucks 7,645       7,650       (0.1 ) %   7,645       7,650       (0.1 ) %
Total trailers (at quarter end) 23,090       21,820       5.8   %   23,090       21,820       5.8   %
                       
One-Way Truckload                      
Trucking revenues, net of fuel surcharge (in 000’s) $ 166,171       $ 167,984       (1.1 ) %   $ 323,010       $ 345,833       (6.6 ) %
Average trucks in service 2,715       3,149       (13.8 ) %   2,785       3,210       (13.2 ) %
Total trucks (at quarter end) 2,605       3,115       (16.4 ) %   2,605       3,115       (16.4 ) %
Average percentage of empty miles 10.72   %   13.01   %   (17.6 ) %   11.04   %   12.41   %   (11.0 ) %
Average revenues per truck per week (1) $ 4,709       $ 4,103       14.8   %   $ 4,461       $ 4,143       7.7   %
Average % change YOY in revenues per total mile (1) 16.7   %   (1.9 ) %       13.1   %   (2.7 ) %    
Average % change YOY in total miles per truck per week (1.7 ) %   (0.3 ) %       (4.8 ) %   2.3   %    
Average completed trip length in miles (loaded) 877       813       7.9   %   865       838       3.2   %
                       
Dedicated                      
Trucking revenues, net of fuel surcharge (in 000’s) $ 262,352       $ 238,850       9.8   %   $ 516,165       $ 470,099       9.8   %
Average trucks in service 4,949       4,613       7.3   %   4,942       4,602       7.4   %
Total trucks (at quarter end) 5,040       4,535       11.1   %   5,040       4,535       11.1   %
Average revenues per truck per week (1) $ 4,079       $ 3,983       2.4   %   $ 4,018       $ 3,928       2.3   %
                       
Werner Logistics segment                      
Average trucks in service 34       31       9.7   %   36       32       12.5   %
Total trucks (at quarter end) 41       30       36.7   %   41       30       36.7   %
Total trailers (at quarter end) 1,325       1,635       (19.0 ) %   1,325       1,635       (19.0 ) %

(1) Net of fuel surcharge revenues

  SUPPLEMENTAL INFORMATION
  (Unaudited)
  (In thousands)
           
  Three Months Ended June 30,   Six Months Ended June 30,
  2021   2020   2021   2020
Capital expenditures, net $ 65,081     $ 88,769     $ 102,947     $ 107,609  
Cash flow from operations 53,597     153,966     189,464     287,342  
Return on assets (annualized) 12.7 %   7.5 %   10.7 %   5.9 %
Return on equity (annualized) 22.9 %   14.0 %   19.2 %   11.1 %
  CONDENSED BALANCE SHEET
  (In thousands, except share amounts)
       
  June 30, 2021   December 31, 2020
  (Unaudited)    
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 192,128       $ 29,334    
Accounts receivable, trade, less allowance of $8,988 and $8,686, respectively 391,082       341,104    
Other receivables 25,120       23,491    
Inventories and supplies 11,899       12,062    
Prepaid taxes, licenses and permits 7,970       17,231    
Other current assets 38,312       33,694    
Total current assets 666,511       456,916    
       
Property and equipment 2,428,268       2,405,335    
Less – accumulated depreciation 893,453       862,077    
Property and equipment, net 1,534,815       1,543,258    
       
Other non-current assets (1) 181,541       156,502    
Total assets $ 2,382,867       $ 2,156,676    
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 94,367       $ 83,263    
Current portion of long-term debt       25,000    
Insurance and claims accruals 65,321       76,917    
Accrued payroll 48,420       35,594    
Accrued expenses 25,972       25,032    
Other current liabilities 20,107       28,208    
Total current liabilities 254,187       274,014    
       
Long-term debt, net of current portion 300,000       175,000    
Other long-term liabilities 42,568       43,114    
Insurance and claims accruals, net of current portion (1) 236,270       231,638    
Deferred income taxes 253,259       237,870    
       
Stockholders’ equity:      
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536      
shares issued; 67,931,873 and 67,931,726 shares outstanding, respectively 805       805    
Paid-in capital 117,069       116,039    
Retained earnings 1,542,497       1,438,916    
Accumulated other comprehensive loss (20,873 )     (22,833 )  
Treasury stock, at cost; 12,601,663 and 12,601,810 shares, respectively (342,915 )     (337,887 )  
Total stockholders’ equity 1,296,583       1,195,040    
Total liabilities and stockholders’ equity $ 2,382,867       $ 2,156,676    

(1) Under the terms of our insurance policies, we are the primary obligor of the damage award in the previously mentioned adverse jury verdict, and as such, we have recorded a $79.2 million receivable from our third party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals in the unaudited condensed balance sheets as of June 30, 2021 and December 31, 2020.

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