JB Hunt Transport Services Inc. (NASDAQ:JBHT) Q1 2019 Earnings Conference Call - Final Transcript

Apr 15, 2019 • 05:00 pm ET

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JB Hunt Transport Services Inc. (NASDAQ:JBHT) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
John N. Roberts, III

primarily inside Intermodal, which is about equal to the first quarter of last year. But more specifically, the marketplace for J.B. Hunt 360, volume through the platform was up over 100% year-over-year that yielded a 92% increase in revenue executed. We also began the migration of Intermodal's third-party dray business during the quarter.

As with the ICS business, as those trade network capacity matures inside the platform, we expect to provide these carriers with opportunities to eliminate waste so that provide them with additional revenue opportunities as well as provide JBI and ICS with additional revenue opportunities that are not exposed through our traditional customer sales and bid processes.

Lastly, but certainly not least, truck had a successful quarter as it capitalized on moving committed loads at committed pricing and growing its capacity to meet their customer demand. Truck continued to focus on its return on invested capital profile as was evident by the change in its capacity composition from a roughly 65% on equipment first quarter of 2018 to roughly 50% on equipment in first quarter 2019, and the continued rationalization of its trailing fleet to fit actual customer demand.

A balance sheet analysis we had -- a balance sheet analysis shows we had an out of character amount of cash at March 31st. We issued $700 million in securities at the end of February to refinance our March 15, 2019 maturity, term out our current balance on the revolver, and raise cash for some expected first quarter working capital needs. The working capital needs were delayed until subsequent periods but that determination cannot be made until after our trading window closed. I specifically mention this to caution investors that they should not be this anomaly as a change to our historical balance sheet or cash management philosophy.

That concludes our prepared remarks. Artesia, if you wouldn't mind, you may open the lines for questions. Artesia? Artesia, are you there?