Werner Enterprises Inc 8-K, filed Feb 4, 2021

Werner Enterprises Inc (WERN)

8-K 2021-02-04 For: 2021-02-04

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Added on April 12, 2026

About this 8-K

Werner Enterprises Inc filed this 8-K on February 4, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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99.1						Press release issued by the registrant on February 4, 2021, “Werner Enterprises Reports Record Fourth Quarter and Full Year 2020 Opera t ing I ncome ”.

101						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

104						The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.


	WERNER ENTERPRISES, INC.

Date: February 4, 2021	By:	/s/ John J. Steele
		John J. Steele
		Executive Vice President, Treasurer and Chief Financial Officer

Date: February 4, 2021	By:	/s/ James L. Johnson
		James L. Johnson
		Executive Vice President, Chief Accounting Officer and Corporate Secretary


	Three Months Ended December 31,								Year Ended December 31,
(In thousands, except per share amounts)	2020			2019			Y/Y Change		2020			2019			Y/Y 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	%


	Three Months Ended December 31,								Year Ended December 31,
(In thousands)	2020			2019			Y/Y Change		2020			2019			Y/Y 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
Operating ratio	83.5		%	87.8		%	(430) bps		88.0		%	89.4		%	(140) 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 surcharge	18.2		%	14.0		%	420 bps		14.0		%	12.3		%	170 bps
Adjusted operating ratio	83.2		%	87.6		%	(440) bps		87.2		%	89.2		%	(200) bps
Adjusted operating ratio, net of fuel surcharge	81.8		%	86.0		%	(420) bps		86.0		%	87.7		%	(170) bps


	Three Months Ended December 31,								Year Ended December 31,
(In thousands)	2020			2019			Y/Y Change		2020			2019			Y/Y Change
Total revenues	$	130,113		$	120,145		8	%	$	469,791		$	489,729		(4)	%
Rent and purchased transportation expense	113,908			101,764			12	%	407,308			411,506			(1)	%
Gross profit	16,205			18,381			(12)	%	62,483			78,223			(20)	%
Other operating expenses	13,572			15,014			(10)	%	56,478			61,935			(9)	%
Operating income	2,633			3,367			(22)	%	6,005			16,288			(63)	%
Gross margin	12.5		%	15.3		%	(280) bps		13.3		%	16.0		%	(270) bps
Operating margin	2.0		%	2.8		%	(80) bps		1.3		%	3.3		%	(200) bps


	INCOME STATEMENT
	(Unaudited)
	(In thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2020			2019			2020			2019
	$		%	$		%	$		%	$		%
Operating revenues	$	620,302	100.0	$	621,787	100.0	$	2,372,178	100.0	$	2,463,701	100.0
Operating expenses:
Salaries, wages and benefits	197,718		31.9	200,101		32.2	795,847		33.6	818,487		33.2
Fuel	39,743		6.4	59,208		9.5	157,124		6.6	235,928		9.6
Supplies and maintenance	42,763		6.9	45,946		7.4	175,842		7.4	182,909		7.4
Taxes and licenses	24,911		4.0	24,737		4.0	95,746		4.0	95,525		3.9
Insurance and claims	24,656		4.0	23,282		3.7	109,816		4.6	88,913		3.6
Depreciation	63,799		10.3	64,711		10.4	263,286		11.1	249,527		10.1
Rent and purchased transportation	140,195		22.6	135,629		21.8	519,184		21.9	549,438		22.3
Communications and utilities	3,333		0.5	3,497		0.6	14,474		0.6	15,303		0.6
Other	1,733		0.3	(978)		(0.2)	13,421		0.6	2,199		0.1
Total operating expenses	538,851		86.9	556,133		89.4	2,144,740		90.4	2,238,229		90.8
Operating income	81,451		13.1	65,654		10.6	227,438		9.6	225,472		9.2
Other expense (income):
Interest expense	576		—	2,159		0.4	4,215		0.2	6,854		0.3
Interest income	(308)		—	(678)		(0.1)	(1,634)		(0.1)	(3,326)		(0.1)
Other	40		—	49		—	163		—	38		—
Total other expense (income)	308		—	1,530		0.3	2,744		0.1	3,566		0.2
Income before income taxes	81,143		13.1	64,124		10.3	224,694		9.5	221,906		9.0
Income tax expense	20,587		3.3	15,628		2.5	55,616		2.4	54,962		2.2
Net income	$	60,556	9.8	$	48,496	7.8	$	169,078	7.1	$	166,944	6.8
Diluted shares outstanding	69,052			69,723			69,427			70,026
Diluted earnings per share	$	0.88		$	0.70		$	2.44		$	2.38


	GAAP TO NON-GAAP RECONCILIATION
	(Unaudited)
	(In thousands, except per share amounts)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
Operating revenues	$	620,302	$	621,787	$	2,372,178	$	2,463,701
Operating expenses	538,851		556,133		2,144,740		2,238,229
Operating income	81,451		65,654		227,438		225,472
Total other expense (income)	308		1,530		2,744		3,566
Income before income taxes	81,143		64,124		224,694		221,906
Income tax expense	20,587		15,628		55,616		54,962
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


	SEGMENT INFORMATION
	(Unaudited)
	(In thousands)

	Three Months Ended December 31,				Year Ended 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


	OPERATING STATISTICS BY SEGMENT
	(Unaudited)

	Three Months Ended December 31,								Year Ended 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)	%
Total trucks (at quarter end)	31			33			(6.1)	%	31			33			(6.1)	%
Total trailers (at quarter end)	1,275			1,445			(11.8)	%	1,275			1,445			(11.8)	%


	SUPPLEMENTAL INFORMATION
	(Unaudited)
	(In thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2020			2019			2020			2019
Capital expenditures, net	$	78,978		$	12,216		$	266,241		$	283,875
Cash flow from operations	99,513			94,459			445,909			426,644
Return on assets (annualized)	11.2		%	9.0		%	8.0		%	7.8		%
Return on equity (annualized)	20.3		%	17.9		%	14.7		%	14.6		%


	CONDENSED BALANCE SHEET
	(In thousands, except share amounts)

	December 31, 2020		December 31, 2019
	(Unaudited)

ASSETS
Current assets:
Cash and cash equivalents	$	29,334	$	26,418
Accounts receivable, trade, less allowance of $8,686 and $7,921, respectively	341,104		322,846
Other receivables	23,491		52,221
Inventories and supplies	12,062		9,243
Prepaid taxes, licenses and permits	17,231		16,757

Other current assets	33,694		38,849
Total current assets	456,916		466,334

Property and equipment	2,405,335		2,343,536
Less – accumulated depreciation	862,077		817,260
Property and equipment, net	1,543,258		1,526,276

Other non-current assets (1)	156,502		151,254
Total assets	$	2,156,676	$	2,143,864

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

Accounts payable	$	83,263	$	94,634
Current portion of long-term debt	25,000		75,000
Insurance and claims accruals	76,917		69,810
Accrued payroll	35,594		38,347
Accrued expenses	25,032		11,072
Other current liabilities	28,208		19,977
Total current liabilities	274,014		308,840

Long-term debt, net of current portion	175,000		225,000
Other long-term liabilities	43,114		21,129
Insurance and claims accruals, net of current portion (1)	231,638		228,218
Deferred income taxes	237,870		249,669

Stockholders’ equity:
Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536
shares issued; 67,931,726 and 69,244,525 shares outstanding, respectively	805		805
Paid-in capital	116,039		112,649
Retained earnings	1,438,916		1,294,608
Accumulated other comprehensive loss	(22,833)		(14,728)
Treasury stock, at cost; 12,601,810 and 11,289,011 shares, respectively	(337,887)		(282,326)
Total stockholders’ equity	1,195,040		1,111,008
Total liabilities and stockholders’ equity	$	2,156,676	$	2,143,864