Werner Enterprises Reports Fourth Quarter and Annual 2023 Results
Fourth Quarter 2023 Highlights (all metrics compared to fourth quarter 2022)
-
Total revenues of
$821.9 million , down 5% -
Operating income of
$37.9 million , down 57%; non-GAAP adjusted operating income of$39.2 million , down 56% - Operating margin of 4.6%, down 570 basis points; non-GAAP adjusted operating margin of 4.8%, down 560 basis points
-
Diluted EPS of
$0.37 , down 61%; non-GAAP adjusted diluted EPS of$0.39 , down 61%
2023 Highlights (all metrics compared to 2022)
-
Total revenues of
$3.28 billion , relatively flat -
Operating income of
$176.4 million , down 45%; non-GAAP adjusted operating income of$189.7 million , down 43% - Operating margin of 5.4%, down 440 basis points; non-GAAP adjusted operating margin of 5.8%, down 430 basis points
-
Diluted EPS of
$1.76 , down 53%; non-GAAP adjusted diluted EPS of$1.93 , down 48%
“Freight conditions remained challenging in the fourth quarter with ongoing pricing pressure. Despite this, our nearly 14,000 talented Werner team members and cycle-tested management team focused on what we can control. Our Dedicated business proved to be durable and resilient, generating double-digit margins and growing revenue per truck for the 9th year out of the last decade. Our
Total revenues for the quarter were
Operating income of
TTS operating income decreased
Net interest expense of
During fourth quarter 2023, we had losses on our strategic investments of
Net income attributable to Werner of
Key Consolidated Financial Metrics
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||
(In thousands, except per share amounts) |
2023 |
|
2022 |
|
Y/Y
|
|
2023 |
|
2022 |
|
Y/Y
|
||||||||||
Total revenues |
$ |
821,945 |
|
|
$ |
861,491 |
|
|
(5 |
)% |
|
$ |
3,283,499 |
|
|
$ |
3,289,978 |
|
|
0 |
% |
|
|
580,093 |
|
|
|
634,787 |
|
|
(9 |
)% |
|
|
2,310,810 |
|
|
|
2,428,686 |
|
|
(5 |
)% |
Werner Logistics revenues |
|
226,963 |
|
|
|
213,485 |
|
|
6 |
% |
|
|
910,433 |
|
|
|
793,492 |
|
|
15 |
% |
Operating income |
|
37,932 |
|
|
|
88,381 |
|
|
(57 |
)% |
|
|
176,416 |
|
|
|
323,076 |
|
|
(45 |
)% |
Operating margin |
|
4.6 |
% |
|
|
10.3 |
% |
|
(570) bps |
|
|
5.4 |
% |
|
|
9.8 |
% |
|
(440) bps |
||
Net income attributable to Werner |
|
23,573 |
|
|
|
60,166 |
|
|
(61 |
)% |
|
|
112,382 |
|
|
|
241,256 |
|
|
(53 |
)% |
Diluted earnings per share |
|
0.37 |
|
|
|
0.94 |
|
|
(61 |
)% |
|
|
1.76 |
|
|
|
3.74 |
|
|
(53 |
)% |
Adjusted operating income (1) |
|
39,206 |
|
|
|
89,917 |
|
|
(56 |
)% |
|
|
189,705 |
|
|
|
333,164 |
|
|
(43 |
)% |
Adjusted operating margin (1) |
|
4.8 |
% |
|
|
10.4 |
% |
|
(560) bps |
|
|
5.8 |
% |
|
|
10.1 |
% |
|
(430) bps |
||
Adjusted net income attributable to Werner (1) |
|
24,639 |
|
|
|
62,840 |
|
|
(61 |
)% |
|
|
122,721 |
|
|
|
239,164 |
|
|
(49 |
)% |
Adjusted diluted earnings per share (1) |
|
0.39 |
|
|
|
0.99 |
|
|
(61 |
)% |
|
|
1.93 |
|
|
|
3.70 |
|
|
(48 |
)% |
(1) See attached Reconciliation of Non-GAAP Financial Measures - Consolidated. |
-
Revenues of
$580.1 million decreased$54.7 million ; trucking revenues, net of fuel surcharge, decreased 6% -
Operating income of
$34.3 million decreased$46.0 million ; non-GAAP adjusted operating income of$37.2 million decreased$45.9 million due to a lower rate per mile in One-Way Truckload, smaller overall fleet size, and lower gains on the sale of property and equipment - Operating margin of 5.9% decreased 680 basis points from 12.7%
- Non-GAAP adjusted operating margin, net of fuel surcharge, of 7.5% decreased 830 basis points from 15.8%
- Average segment trucks in service totaled 8,168, a decrease of 541 trucks year over year, or 6%
- Dedicated unit trucks at quarter end totaled 5,265, or 66% of the total TTS segment fleet, compared to 5,450 trucks, or 63%, a year ago
- Average revenues per truck per week, net of fuel surcharges, increased 0.2% for TTS and increased 0.9% for Dedicated
During fourth quarter 2023, Dedicated experienced net reduction in average trucks, down 3.3% year over year and down 0.3% sequentially. Dedicated revenue per truck per week increased 0.9% year over year, and despite a highly competitive environment and normal churn, pipeline opportunities remain healthy and client retention remains strong. One-Way Truckload customer freight demand during fourth quarter 2023 was stable with slightly better-than-expected peak volumes, but at significantly reduced pricing compared to the prior-year period. One-Way rate per mile was down 8.6% and fleet size was smaller year over year (down 11.0%), offset with the third consecutive quarter of higher total miles per truck (up 8.7%).
Key Truckload Transportation Services Segment Financial Metrics
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||
(In thousands) |
2023 |
|
2022 |
|
Y/Y
|
|
2023 |
|
2022 |
|
Y/Y
|
||||||||||
Trucking revenues, net of fuel surcharge |
$ |
487,408 |
|
|
$ |
518,393 |
|
|
(6 |
)% |
|
$ |
1,949,445 |
|
|
$ |
1,982,639 |
|
|
(2 |
)% |
Trucking fuel surcharge revenues |
|
84,675 |
|
|
|
109,611 |
|
|
(23 |
)% |
|
|
332,388 |
|
|
|
419,240 |
|
|
(21 |
)% |
Non-trucking and other revenues |
|
8,010 |
|
|
|
6,783 |
|
|
18 |
% |
|
|
28,977 |
|
|
|
26,807 |
|
|
8 |
% |
Total revenues |
$ |
580,093 |
|
|
$ |
634,787 |
|
|
(9 |
)% |
|
$ |
2,310,810 |
|
|
$ |
2,428,686 |
|
|
(5 |
)% |
Operating income |
$ |
34,339 |
|
|
$ |
80,341 |
|
|
(57 |
)% |
|
$ |
169,330 |
|
|
$ |
294,555 |
|
|
(43 |
)% |
Operating margin |
|
5.9 |
% |
|
|
12.7 |
% |
|
(680) bps |
|
|
7.3 |
% |
|
|
12.1 |
% |
|
(480) bps |
||
Operating ratio |
|
94.1 |
% |
|
|
87.3 |
% |
|
680 bps |
|
|
92.7 |
% |
|
|
87.9 |
% |
|
480 bps |
||
Adjusted operating income (1) |
$ |
37,165 |
|
|
$ |
83,104 |
|
|
(55 |
)% |
|
$ |
180,453 |
|
|
$ |
303,902 |
|
|
(41 |
)% |
Adjusted operating margin (1) |
|
6.4 |
% |
|
|
13.1 |
% |
|
(670) bps |
|
|
7.8 |
% |
|
|
12.5 |
% |
|
(470) bps |
||
Adjusted operating margin, net of fuel surcharge (1) |
|
7.5 |
% |
|
|
15.8 |
% |
|
(830) bps |
|
|
9.1 |
% |
|
|
15.1 |
% |
|
(600) bps |
||
Adjusted operating ratio (1) |
|
93.6 |
% |
|
|
86.9 |
% |
|
670 bps |
|
|
92.2 |
% |
|
|
87.5 |
% |
|
470 bps |
||
Adjusted operating ratio, net of fuel surcharge (1) |
|
92.5 |
% |
|
|
84.2 |
% |
|
830 bps |
|
|
90.9 |
% |
|
|
84.9 |
% |
|
600 bps |
||
(1) See attached Reconciliation of Non-GAAP Financial Measures - |
Werner Logistics Segment
-
Revenues of
$227.0 million increased$13.5 million , or 6%, including ReedTMS acquisition which closed inNovember 2022 -
Operating income of
$4.6 million decreased$5.3 million - Operating margin of 2.0% decreased 260 basis points from 4.6%
-
Adjusted operating income of
$3.0 million decreased$5.0 million - Adjusted operating margin of 1.3% decreased 250 basis points from 3.8%
Truckload Logistics revenues (77% of Logistics revenues) increased 15%, driven by a double-digit increase in shipments (including
Intermodal revenues (12% of Logistics revenues) decreased 27%, due to fewer shipments and lower revenue per shipment year over year; although we achieved the third consecutive quarter of a sequential increase in shipments.
Final Mile revenues (11% of Logistics revenues) increased
Logistics operating income decreased
Key Werner Logistics Segment Financial Metrics
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||
(In thousands) |
2023 |
|
2022 |
|
Y/Y
|
|
2023 |
|
2022 |
|
Y/Y
|
||||||||||
Total revenues |
$ |
226,963 |
|
|
$ |
213,485 |
|
|
6 |
% |
|
$ |
910,433 |
|
|
$ |
793,492 |
|
|
15 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased transportation expense |
|
193,132 |
|
|
|
174,463 |
|
|
11 |
% |
|
|
761,948 |
|
|
|
653,185 |
|
|
17 |
% |
Other operating expenses |
|
29,256 |
|
|
|
29,154 |
|
|
0 |
% |
|
|
132,606 |
|
|
|
104,123 |
|
|
27 |
% |
Total operating expenses |
|
222,388 |
|
|
|
203,617 |
|
|
9 |
% |
|
|
894,554 |
|
|
|
757,308 |
|
|
18 |
% |
Operating income |
$ |
4,575 |
|
|
$ |
9,868 |
|
|
(54 |
)% |
|
$ |
15,879 |
|
|
$ |
36,184 |
|
|
(56 |
)% |
Operating margin |
|
2.0 |
% |
|
|
4.6 |
% |
|
(260) bps |
|
|
1.7 |
% |
|
|
4.6 |
% |
|
(290) bps |
||
Adjusted operating income (1) |
$ |
3,023 |
|
|
$ |
8,028 |
|
|
(62 |
)% |
|
$ |
18,045 |
|
|
$ |
35,844 |
|
|
(50 |
)% |
Adjusted operating margin (1) |
|
1.3 |
% |
|
|
3.8 |
% |
|
(250) bps |
|
|
2.0 |
% |
|
|
4.5 |
% |
|
(250) bps |
||
(1) See attached Reconciliation of Non-GAAP Financial Measures - Werner Logistics Segment. |
Cash Flow and Capital Allocation
Cash flow from operations in fourth quarter 2023 was
Net capital expenditures in fourth quarter 2023 were
Gains on sales of property and equipment in fourth quarter 2023 were
We did not repurchase shares of our common stock in fourth quarter 2023. As of
As of
Introducing 2024 Guidance
|
2023 Guidance
|
2023 Actual
|
2024 Guidance
|
TTS truck count from BoY to EoY |
(5)% to (3)%
|
(7)%
|
(3)% to 0%
|
Net capital expenditures |
|
|
|
TTS Guidance |
|
|
|
Dedicated RPTPW* growth |
0% to 3%
|
1.5%
|
0% to 3%
|
One-Way Truckload RPTM* growth |
(9)% to (7)%
|
(8.6)%
|
(6)% to (3)%
|
* Net of fuel surcharge revenues |
Assumptions
- Effective income tax rate of 24.5% to 25.5% in 2024 compared to 24.0% in 2023.
- Expect average truck age of 2.1 years and average trailer age of 5.0 years as of 12/31/24, compared to 2.1 years and 4.9 years as of 12/31/23, respectively.
Call Information
A replay of the conference call will be available on
About
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
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
Consolidated Financial Information
INCOME STATEMENT |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
||||||||||||
Operating revenues |
$ |
821,945 |
|
|
100.0 |
|
|
$ |
861,491 |
|
|
100.0 |
|
|
$ |
3,283,499 |
|
|
100.0 |
|
|
$ |
3,289,978 |
|
|
100.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits |
|
269,816 |
|
|
32.8 |
|
|
|
260,531 |
|
|
30.2 |
|
|
|
1,072,558 |
|
|
32.7 |
|
|
|
1,020,609 |
|
|
31.0 |
|
Fuel |
|
85,478 |
|
|
10.4 |
|
|
|
111,447 |
|
|
12.9 |
|
|
|
345,001 |
|
|
10.5 |
|
|
|
437,299 |
|
|
13.3 |
|
Supplies and maintenance |
|
63,124 |
|
|
7.7 |
|
|
|
65,406 |
|
|
7.6 |
|
|
|
256,494 |
|
|
7.8 |
|
|
|
253,096 |
|
|
7.7 |
|
Taxes and licenses |
|
25,999 |
|
|
3.2 |
|
|
|
25,289 |
|
|
2.9 |
|
|
|
102,684 |
|
|
3.1 |
|
|
|
97,929 |
|
|
3.0 |
|
Insurance and claims |
|
33,964 |
|
|
4.1 |
|
|
|
44,301 |
|
|
5.2 |
|
|
|
138,516 |
|
|
4.2 |
|
|
|
147,365 |
|
|
4.5 |
|
Depreciation and amortization |
|
75,712 |
|
|
9.2 |
|
|
|
73,826 |
|
|
8.6 |
|
|
|
299,509 |
|
|
9.1 |
|
|
|
279,923 |
|
|
8.5 |
|
Rent and purchased transportation |
|
224,418 |
|
|
27.3 |
|
|
|
207,662 |
|
|
24.1 |
|
|
|
886,284 |
|
|
27.0 |
|
|
|
777,464 |
|
|
23.6 |
|
Communications and utilities |
|
4,523 |
|
|
0.6 |
|
|
|
4,429 |
|
|
0.5 |
|
|
|
18,480 |
|
|
0.6 |
|
|
|
15,856 |
|
|
0.5 |
|
Other |
|
979 |
|
|
0.1 |
|
|
|
(19,781 |
) |
|
(2.3 |
) |
|
|
(12,443 |
) |
|
(0.4 |
) |
|
|
(62,639 |
) |
|
(1.9 |
) |
Total operating expenses |
|
784,013 |
|
|
95.4 |
|
|
|
773,110 |
|
|
89.7 |
|
|
|
3,107,083 |
|
|
94.6 |
|
|
|
2,966,902 |
|
|
90.2 |
|
Operating income |
|
37,932 |
|
|
4.6 |
|
|
|
88,381 |
|
|
10.3 |
|
|
|
176,416 |
|
|
5.4 |
|
|
|
323,076 |
|
|
9.8 |
|
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense |
|
8,819 |
|
|
1.1 |
|
|
|
5,824 |
|
|
0.7 |
|
|
|
33,535 |
|
|
1.0 |
|
|
|
11,828 |
|
|
0.4 |
|
Interest income |
|
(1,523 |
) |
|
(0.2 |
) |
|
|
(751 |
) |
|
(0.1 |
) |
|
|
(6,701 |
) |
|
(0.2 |
) |
|
|
(1,731 |
) |
|
(0.1 |
) |
Loss (gain) on investments in equity securities, net |
|
242 |
|
|
— |
|
|
|
2,208 |
|
|
0.3 |
|
|
|
278 |
|
|
— |
|
|
|
(12,195 |
) |
|
(0.4 |
) |
Loss from equity method investment |
|
92 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1,046 |
|
|
0.1 |
|
|
|
— |
|
|
— |
|
Other |
|
100 |
|
|
— |
|
|
|
112 |
|
|
— |
|
|
|
477 |
|
|
— |
|
|
|
388 |
|
|
— |
|
Total other expense (income) |
|
7,730 |
|
|
0.9 |
|
|
|
7,393 |
|
|
0.9 |
|
|
|
28,635 |
|
|
0.9 |
|
|
|
(1,710 |
) |
|
(0.1 |
) |
Income before income taxes |
|
30,202 |
|
|
3.7 |
|
|
|
80,988 |
|
|
9.4 |
|
|
|
147,781 |
|
|
4.5 |
|
|
|
324,786 |
|
|
9.9 |
|
Income tax expense |
|
6,970 |
|
|
0.9 |
|
|
|
19,977 |
|
|
2.3 |
|
|
|
35,491 |
|
|
1.1 |
|
|
|
79,206 |
|
|
2.4 |
|
Net income |
|
23,232 |
|
|
2.8 |
|
|
|
61,011 |
|
|
7.1 |
|
|
|
112,290 |
|
|
3.4 |
|
|
|
245,580 |
|
|
7.5 |
|
Net loss (income) attributable to noncontrolling interest |
|
341 |
|
|
0.1 |
|
|
|
(845 |
) |
|
(0.1 |
) |
|
|
92 |
|
|
— |
|
|
|
(4,324 |
) |
|
(0.2 |
) |
Net income attributable to Werner |
$ |
23,573 |
|
|
2.9 |
|
|
$ |
60,166 |
|
|
7.0 |
|
|
$ |
112,382 |
|
|
3.4 |
|
|
$ |
241,256 |
|
|
7.3 |
|
Diluted shares outstanding |
|
63,780 |
|
|
|
|
|
63,695 |
|
|
|
|
|
63,718 |
|
|
|
|
|
64,579 |
|
|
|
||||
Diluted earnings per share |
$ |
0.37 |
|
|
|
|
$ |
0.94 |
|
|
|
|
$ |
1.76 |
|
|
|
|
$ |
3.74 |
|
|
|
CONDENSED BALANCE SHEET |
|||||||
(In thousands, except share amounts) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
61,723 |
|
|
$ |
107,240 |
|
Accounts receivable, trade, less allowance of |
|
444,944 |
|
|
|
518,815 |
|
Other receivables |
|
25,479 |
|
|
|
29,875 |
|
Inventories and supplies |
|
18,077 |
|
|
|
14,527 |
|
Prepaid taxes, licenses and permits |
|
16,505 |
|
|
|
17,699 |
|
Other current assets |
|
67,900 |
|
|
|
74,459 |
|
Total current assets |
|
634,628 |
|
|
|
762,615 |
|
Property and equipment |
|
2,951,654 |
|
|
|
2,885,641 |
|
Less – accumulated depreciation |
|
978,698 |
|
|
|
1,060,365 |
|
Property and equipment, net |
|
1,972,956 |
|
|
|
1,825,276 |
|
|
|
129,104 |
|
|
|
132,717 |
|
Intangible assets, net |
|
86,477 |
|
|
|
81,502 |
|
Other non-current assets (1) |
|
334,771 |
|
|
|
295,145 |
|
Total assets |
$ |
3,157,936 |
|
|
$ |
3,097,255 |
|
|
|
|
|
||||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
135,990 |
|
|
$ |
124,483 |
|
Current portion of long-term debt |
|
2,500 |
|
|
|
6,250 |
|
Insurance and claims accruals |
|
81,794 |
|
|
|
78,620 |
|
Accrued payroll |
|
50,549 |
|
|
|
49,793 |
|
Accrued expenses |
|
30,282 |
|
|
|
20,358 |
|
Other current liabilities |
|
29,470 |
|
|
|
30,016 |
|
Total current liabilities |
|
330,585 |
|
|
|
309,520 |
|
Long-term debt, net of current portion |
|
646,250 |
|
|
|
687,500 |
|
Other long-term liabilities |
|
54,275 |
|
|
|
59,677 |
|
Insurance and claims accruals, net of current portion (1) |
|
239,700 |
|
|
|
244,946 |
|
Deferred income taxes |
|
320,180 |
|
|
|
313,278 |
|
Total liabilities |
|
1,590,990 |
|
|
|
1,614,921 |
|
Temporary equity - redeemable noncontrolling interest |
|
38,607 |
|
|
|
38,699 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
805 |
|
|
|
805 |
|
Paid-in capital |
|
134,894 |
|
|
|
129,837 |
|
Retained earnings |
|
1,953,385 |
|
|
|
1,875,873 |
|
Accumulated other comprehensive loss |
|
(9,684 |
) |
|
|
(11,292 |
) |
|
|
(551,061 |
) |
|
|
(551,588 |
) |
Total stockholders’ equity |
|
1,528,339 |
|
|
|
1,443,635 |
|
Total liabilities, temporary equity and stockholders’ equity |
$ |
3,157,936 |
|
|
$ |
3,097,255 |
|
(1) Under the terms of our insurance policies, we are the primary obligor of the damage award in a previously disclosed adverse jury verdict, and as such, we have recorded a |
SUPPLEMENTAL INFORMATION |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Capital expenditures, net |
$ |
34,537 |
|
|
$ |
63,507 |
|
|
$ |
408,698 |
|
|
$ |
317,579 |
|
Cash flow from operations |
|
118,347 |
|
|
|
115,995 |
|
|
|
474,366 |
|
|
|
448,711 |
|
Return on assets (annualized) |
|
2.9 |
% |
|
|
8.2 |
% |
|
|
3.6 |
% |
|
|
8.8 |
% |
Return on equity (annualized) |
|
6.0 |
% |
|
|
16.8 |
% |
|
|
7.3 |
% |
|
|
17.5 |
% |
Segment Financial and Operating Statistics Information
SEGMENT INFORMATION |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
|
$ |
580,093 |
|
|
$ |
634,787 |
|
|
$ |
2,310,810 |
|
|
$ |
2,428,686 |
|
Werner Logistics |
|
226,963 |
|
|
|
213,485 |
|
|
|
910,433 |
|
|
|
793,492 |
|
Other (1) |
|
18,974 |
|
|
|
16,257 |
|
|
|
78,063 |
|
|
|
71,185 |
|
Corporate |
|
420 |
|
|
|
431 |
|
|
|
1,883 |
|
|
|
1,833 |
|
Subtotal |
|
826,450 |
|
|
|
864,960 |
|
|
|
3,301,189 |
|
|
|
3,295,196 |
|
Inter-segment eliminations (2) |
|
(4,505 |
) |
|
|
(3,469 |
) |
|
|
(17,690 |
) |
|
|
(5,218 |
) |
Total |
$ |
821,945 |
|
|
$ |
861,491 |
|
|
$ |
3,283,499 |
|
|
$ |
3,289,978 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
||||||||
|
$ |
34,339 |
|
|
$ |
80,341 |
|
|
$ |
169,330 |
|
|
$ |
294,555 |
|
Werner Logistics |
|
4,575 |
|
|
|
9,868 |
|
|
|
15,879 |
|
|
|
36,184 |
|
Other (1) |
|
(244 |
) |
|
|
(2,419 |
) |
|
|
69 |
|
|
|
(2,604 |
) |
Corporate |
|
(738 |
) |
|
|
591 |
|
|
|
(8,862 |
) |
|
|
(5,059 |
) |
Total |
$ |
37,932 |
|
|
$ |
88,381 |
|
|
$ |
176,416 |
|
|
$ |
323,076 |
|
(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. |
|||||||||||||||
(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation. |
OPERATING STATISTICS BY SEGMENT |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
||||||||||||||
|
2023 |
|
2022 |
|
% Chg |
|
2023 |
|
2022 |
|
% Chg |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average trucks in service |
|
8,168 |
|
|
|
8,709 |
|
|
(6.2 |
)% |
|
|
8,326 |
|
|
|
8,437 |
|
|
(1.3 |
)% |
Average revenues per truck per week (1) |
$ |
4,590 |
|
|
$ |
4,579 |
|
|
0.2 |
% |
|
$ |
4,502 |
|
|
$ |
4,519 |
|
|
(0.4 |
)% |
Total trucks (at quarter end) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company |
|
7,740 |
|
|
|
8,305 |
|
|
(6.8 |
)% |
|
|
7,740 |
|
|
|
8,305 |
|
|
(6.8 |
)% |
Independent contractor |
|
260 |
|
|
|
295 |
|
|
(11.9 |
)% |
|
|
260 |
|
|
|
295 |
|
|
(11.9 |
)% |
Total trucks |
|
8,000 |
|
|
|
8,600 |
|
|
(7.0 |
)% |
|
|
8,000 |
|
|
|
8,600 |
|
|
(7.0 |
)% |
Total trailers (at quarter end) |
|
27,850 |
|
|
|
27,650 |
|
|
0.7 |
% |
|
|
27,850 |
|
|
|
27,650 |
|
|
0.7 |
% |
One-Way Truckload |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trucking revenues, net of fuel surcharge (in 000’s) |
$ |
178,118 |
|
|
$ |
201,460 |
|
|
(11.6 |
)% |
|
$ |
713,762 |
|
|
$ |
766,013 |
|
|
(6.8 |
)% |
Average trucks in service |
|
2,929 |
|
|
|
3,292 |
|
|
(11.0 |
)% |
|
|
3,042 |
|
|
|
3,153 |
|
|
(3.5 |
)% |
Total trucks (at quarter end) |
|
2,735 |
|
|
|
3,150 |
|
|
(13.2 |
)% |
|
|
2,735 |
|
|
|
3,150 |
|
|
(13.2 |
)% |
Average percentage of empty miles |
|
14.92 |
% |
|
|
13.58 |
% |
|
9.9 |
% |
|
|
14.36 |
% |
|
|
12.70 |
% |
|
13.1 |
% |
Average revenues per truck per week (1) |
$ |
4,678 |
|
|
$ |
4,708 |
|
|
(0.6 |
)% |
|
$ |
4,512 |
|
|
$ |
4,672 |
|
|
(3.4 |
)% |
Average % change YOY in revenues per total mile (1) |
|
(8.6 |
)% |
|
|
0.4 |
% |
|
|
|
|
(5.5 |
)% |
|
|
8.6 |
% |
|
|
||
Average % change YOY in total miles per truck per week |
|
8.7 |
% |
|
|
(4.6 |
)% |
|
|
|
|
2.2 |
% |
|
|
(7.4 |
)% |
|
|
||
Average completed trip length in miles (loaded) |
|
594 |
|
|
|
633 |
|
|
(6.2 |
)% |
|
|
595 |
|
|
|
675 |
|
|
(11.9 |
)% |
Dedicated |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trucking revenues, net of fuel surcharge (in 000’s) |
$ |
309,290 |
|
|
$ |
316,933 |
|
|
(2.4 |
)% |
|
$ |
1,235,683 |
|
|
$ |
1,216,626 |
|
|
1.6 |
% |
Average trucks in service |
|
5,239 |
|
|
|
5,417 |
|
|
(3.3 |
)% |
|
|
5,284 |
|
|
|
5,284 |
|
|
— |
% |
Total trucks (at quarter end) |
|
5,265 |
|
|
|
5,450 |
|
|
(3.4 |
)% |
|
|
5,265 |
|
|
|
5,450 |
|
|
(3.4 |
)% |
Average revenues per truck per week (1) |
$ |
4,541 |
|
|
$ |
4,501 |
|
|
0.9 |
% |
|
$ |
4,496 |
|
|
$ |
4,428 |
|
|
1.5 |
% |
Werner Logistics segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average trucks in service |
|
39 |
|
|
|
45 |
|
|
(13.3 |
)% |
|
|
37 |
|
|
|
52 |
|
|
(28.8 |
)% |
Total trucks (at quarter end) |
|
35 |
|
|
|
39 |
|
|
(10.3 |
)% |
|
|
35 |
|
|
|
39 |
|
|
(10.3 |
)% |
Total trailers (at quarter end) |
|
2,960 |
|
|
|
2,315 |
|
|
27.9 |
% |
|
|
2,960 |
|
|
|
2,315 |
|
|
27.9 |
% |
(1) Net of fuel surcharge revenues |
Non-GAAP Financial Measures and Reconciliations
To supplement our financial results presented in accordance with generally accepted accounting principles in
The following tables present reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure as required by SEC Regulation G. In addition, information regarding each of the excluded items as well as our reasons for excluding them from our non-GAAP results is provided below.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED |
|||||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||||||
Non-GAAP Adjusted Operating Income and
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
||||||||||||||||
Operating income and operating margin – (GAAP) |
$ |
37,932 |
|
|
|
4.6 |
% |
|
$ |
88,381 |
|
|
|
10.3 |
% |
|
$ |
176,416 |
|
|
|
5.4 |
% |
|
$ |
323,076 |
|
|
|
9.8 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Insurance and claims (2) |
|
1,457 |
|
|
|
0.2 |
% |
|
|
1,387 |
|
|
|
0.1 |
% |
|
|
5,664 |
|
|
|
0.2 |
% |
|
|
5,394 |
|
|
|
0.2 |
% |
Amortization of intangible assets (3) |
|
2,517 |
|
|
|
0.3 |
% |
|
|
2,036 |
|
|
|
0.2 |
% |
|
|
10,325 |
|
|
|
0.3 |
% |
|
|
6,113 |
|
|
|
0.2 |
% |
Acquisition expenses (4) |
|
— |
|
|
|
— |
% |
|
|
613 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
|
|
1,081 |
|
|
|
— |
% |
Contingent consideration adjustments (5) |
|
(2,700 |
) |
|
|
(0.3 |
)% |
|
|
(2,500 |
) |
|
|
(0.3 |
)% |
|
|
(2,700 |
) |
|
|
(0.1 |
)% |
|
|
(2,500 |
) |
|
|
(0.1 |
)% |
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
$ |
39,206 |
|
|
|
4.8 |
% |
|
$ |
89,917 |
|
|
|
10.4 |
% |
|
$ |
189,705 |
|
|
|
5.8 |
% |
|
$ |
333,164 |
|
|
|
10.1 |
% |
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||||||
Non-GAAP Adjusted Net Income
|
$ |
|
Diluted
|
|
$ |
|
Diluted
|
|
$ |
|
Diluted
|
|
$ |
|
Diluted
|
||||||||||||||||
Net income attributable to Werner and diluted EPS – (GAAP) |
$ |
23,573 |
|
|
$ |
0.37 |
|
|
$ |
60,166 |
|
|
$ |
0.94 |
|
|
$ |
112,382 |
|
|
$ |
1.76 |
|
|
$ |
241,256 |
|
|
$ |
3.74 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Insurance and claims (2) |
|
1,457 |
|
|
|
0.02 |
|
|
|
1,387 |
|
|
|
0.02 |
|
|
|
5,664 |
|
|
|
0.09 |
|
|
|
5,394 |
|
|
|
0.08 |
|
Amortization of intangible assets, net of amount attributable to noncontrolling interest (3) |
|
2,345 |
|
|
|
0.04 |
|
|
|
1,864 |
|
|
|
0.03 |
|
|
|
9,637 |
|
|
|
0.15 |
|
|
|
5,425 |
|
|
|
0.08 |
|
Acquisition expenses (4) |
|
— |
|
|
|
— |
|
|
|
613 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
1,081 |
|
|
|
0.02 |
|
Contingent consideration adjustments (5) |
|
(2,700 |
) |
|
|
(0.04 |
) |
|
|
(2,500 |
) |
|
|
(0.04 |
) |
|
|
(2,700 |
) |
|
|
(0.04 |
) |
|
|
(2,500 |
) |
|
|
(0.04 |
) |
Loss (gain) on investments in equity securities, net (6) |
|
242 |
|
|
|
— |
|
|
|
2,208 |
|
|
|
0.04 |
|
|
|
278 |
|
|
|
0.01 |
|
|
|
(12,195 |
) |
|
|
(0.19 |
) |
Loss from equity method investment (7) |
|
92 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,046 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Income tax effect of above adjustments (8) |
|
(370 |
) |
|
|
— |
|
|
|
(898 |
) |
|
|
(0.01 |
) |
|
|
(3,586 |
) |
|
|
(0.06 |
) |
|
|
703 |
|
|
|
0.01 |
|
Non-GAAP adjusted net income attributable to Werner and non-GAAP adjusted diluted EPS |
$ |
24,639 |
|
|
$ |
0.39 |
|
|
$ |
62,840 |
|
|
$ |
0.99 |
|
|
$ |
122,721 |
|
|
$ |
1.93 |
|
|
$ |
239,164 |
|
|
$ |
3.70 |
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge (1) |
|
$ |
|
$ |
|
$ |
|
$ |
||||||||
Operating revenues – (GAAP) |
|
$ |
821,945 |
|
|
$ |
861,491 |
|
|
$ |
3,283,499 |
|
|
$ |
3,289,978 |
|
Non-GAAP adjustment: |
|
|
|
|
|
|
|
|
||||||||
Trucking fuel surcharge (9) |
|
|
(84,675 |
) |
|
|
(109,611 |
) |
|
|
(332,388 |
) |
|
|
(419,240 |
) |
Non-GAAP Operating revenues, net of fuel surcharge |
|
$ |
737,270 |
|
|
$ |
751,880 |
|
|
$ |
2,951,111 |
|
|
$ |
2,870,738 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT |
|||||||||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||||||||
(In thousands) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||||||||||||
Non-GAAP Adjusted Operating Income and
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|||||||||||||
Operating income and operating margin – (GAAP) |
|
$ |
34,339 |
|
|
5.9 |
% |
|
$ |
80,341 |
|
|
12.7 |
% |
|
$ |
169,330 |
|
|
7.3 |
% |
|
$ |
294,555 |
|
|
12.1 |
% |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance and claims (2) |
|
|
1,457 |
|
|
0.3 |
% |
|
|
1,387 |
|
|
0.2 |
% |
|
|
5,664 |
|
|
0.3 |
% |
|
|
5,394 |
|
|
0.2 |
% |
|
Amortization of intangible assets (3) |
|
|
1,369 |
|
|
0.2 |
% |
|
|
1,376 |
|
|
0.2 |
% |
|
|
5,459 |
|
|
0.2 |
% |
|
|
3,953 |
|
|
0.2 |
% |
|
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
|
$ |
37,165 |
|
|
6.4 |
% |
|
$ |
83,104 |
|
|
13.1 |
% |
|
$ |
180,453 |
|
|
7.8 |
% |
|
$ |
303,902 |
|
|
12.5 |
% |
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||||
Non-GAAP Adjusted Operating Expenses and
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
||||||||||||||
Operating expenses and operating ratio – (GAAP) |
$ |
545,754 |
|
|
94.1 |
% |
|
$ |
554,446 |
|
|
87.3 |
% |
|
$ |
2,141,480 |
|
|
92.7 |
% |
|
$ |
2,134,131 |
|
|
87.9 |
% |
||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Insurance and claims (2) |
|
(1,457 |
) |
|
(0.3 |
)% |
|
|
(1,387 |
) |
|
(0.2 |
)% |
|
|
(5,664 |
) |
|
(0.3 |
)% |
|
|
(5,394 |
) |
|
(0.2 |
)% |
||
Amortization of intangible assets (3) |
|
(1,369 |
) |
|
(0.2 |
)% |
|
|
(1,376 |
) |
|
(0.2 |
)% |
|
|
(5,459 |
) |
|
(0.2 |
)% |
|
|
(3,953 |
) |
|
(0.2 |
)% |
||
Non-GAAP adjusted operating expenses and non-GAAP adjusted operating ratio |
$ |
542,928 |
|
|
93.6 |
% |
|
$ |
551,683 |
|
|
86.9 |
% |
|
$ |
2,130,357 |
|
|
92.2 |
% |
|
$ |
2,124,784 |
|
|
87.5 |
% |
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge;
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
$ |
|
$ |
|
$ |
|
$ |
|||||||||
Operating revenues – (GAAP) |
|
$ |
580,093 |
|
|
$ |
634,787 |
|
|
$ |
2,310,810 |
|
|
$ |
2,428,686 |
|
Less: Trucking fuel surcharge (9) |
|
|
(84,675 |
) |
|
|
(109,611 |
) |
|
|
(332,388 |
) |
|
|
(419,240 |
) |
Operating revenues, net of fuel surcharge – (Non-GAAP) |
|
|
495,418 |
|
|
|
525,176 |
|
|
|
1,978,422 |
|
|
|
2,009,446 |
|
Operating expenses – (GAAP) |
|
|
545,754 |
|
|
|
554,446 |
|
|
|
2,141,480 |
|
|
|
2,134,131 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Trucking fuel surcharge (9) |
|
|
(84,675 |
) |
|
|
(109,611 |
) |
|
|
(332,388 |
) |
|
|
(419,240 |
) |
Insurance and claims (2) |
|
|
(1,457 |
) |
|
|
(1,387 |
) |
|
|
(5,664 |
) |
|
|
(5,394 |
) |
Amortization of intangible assets (3) |
|
|
(1,369 |
) |
|
|
(1,376 |
) |
|
|
(5,459 |
) |
|
|
(3,953 |
) |
Non-GAAP adjusted operating expenses, net of fuel surcharge |
|
|
458,253 |
|
|
|
442,072 |
|
|
|
1,797,969 |
|
|
|
1,705,544 |
|
Non-GAAP adjusted operating income |
|
$ |
37,165 |
|
|
$ |
83,104 |
|
|
$ |
180,453 |
|
|
$ |
303,902 |
|
Non-GAAP adjusted operating margin, net of fuel surcharge |
|
|
7.5 |
% |
|
|
15.8 |
% |
|
|
9.1 |
% |
|
|
15.1 |
% |
Non-GAAP adjusted operating ratio, net of fuel surcharge |
|
|
92.5 |
% |
|
|
84.2 |
% |
|
|
90.9 |
% |
|
|
84.9 |
% |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT |
||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||
Non-GAAP Adjusted Operating Income and
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
|
$ |
|
% of
|
||||||||||||
Operating income and operating margin – (GAAP) |
|
$ |
4,575 |
|
|
2.0 |
% |
|
$ |
9,868 |
|
|
4.6 |
% |
|
$ |
15,879 |
|
|
1.7 |
% |
|
$ |
36,184 |
|
|
4.6 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of intangible assets (3) |
|
|
1,148 |
|
|
0.5 |
% |
|
|
660 |
|
|
0.3 |
% |
|
|
4,866 |
|
|
0.6 |
% |
|
|
2,160 |
|
|
0.2 |
% |
Contingent consideration adjustment (5) |
|
|
(2,700 |
) |
|
(1.2 |
)% |
|
|
(2,500 |
) |
|
(1.1 |
)% |
|
|
(2,700 |
) |
|
(0.3 |
)% |
|
|
(2,500 |
) |
|
(0.3 |
)% |
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
|
$ |
3,023 |
|
|
1.3 |
% |
|
$ |
8,028 |
|
|
3.8 |
% |
|
$ |
18,045 |
|
|
2.0 |
% |
|
$ |
35,844 |
|
|
4.5 |
% |
(1) Non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income attributable to Werner; non-GAAP adjusted diluted earnings per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge should be considered in addition to, rather than as substitutes for, GAAP operating income; GAAP operating margin; GAAP net income attributable to Werner; GAAP diluted earnings per share; GAAP operating revenues; GAAP operating expenses; and GAAP operating ratio, which are their most directly comparable GAAP financial measures. |
(2) We accrued pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on |
(3) Amortization expense related to intangible assets acquired in our business acquisitions is excluded because management does not believe it is indicative of our core operating performance. This item is included in our |
(4) We incurred business acquisition-related expenses including legal and professional fees. Acquisition-related expenses are excluded as management believes these costs are not representative of the costs of managing our on-going business. The expenses are included within other operating expenses in our Income Statement and in Corporate operating income in our Segment Information table. |
(5) Contingent consideration, also referred to as earnout, adjustments related to our business acquisitions are excluded because management does not believe these adjustments are indicative of our core operating performance. These adjustments are recorded in other operating expenses in our Income Statement and are included in our Werner Logistics segment. |
(6) Represents non-operating mark-to-market adjustments for gains/losses on our minority equity investments, which we account for under Accounting Standards Codification (“ASC”) 321, Investments – |
(7) Represents earnings/losses from our equity method investment, which we account for under ASC 323, Investments - |
(8) The income tax effect of the non-GAAP adjustments is calculated using the incremental income tax rate excluding discrete items, and the income tax effect for 2023 has been updated to reflect the annual incremental income tax rate. |
(9) Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting the fuel surcharges against fuel expenses. Management believes netting fuel surcharge revenues, which are generally a more volatile source of revenue, against fuel expenses provides a more consistent basis for comparing the results of operations from period to period. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206756247/en/
Executive Vice President, Treasurer and Chief Financial Officer
(402) 894-3700
Source: