Werner Enterprises Reports Record Second Quarter 2021 Results

Thursday, 29. July 2021 22:05

Second Quarter 2021 Highlights (all metrics compared to second quarter 2020)

  • Total revenues of $649.8 million, up 14%
  • Operating income of $76.9 million, up 46%; non-GAAP adjusted operating income of $79.1 million, up 37%
  • Operating margin of 11.8%, up 250 bps; non-GAAP adjusted operating margin of 12.2%, up 210 bps
  • Diluted EPS of $1.06, up 87%; non-GAAP adjusted diluted EPS of $0.86, up 40%

OMAHA, Neb., July 29, 2021 (GLOBE NEWSWIRE) -- 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 revenues491,200  445,053  10% 954,149  909,916  5%
Werner Logistics revenues141,673  110,163  29% 279,526  222,327  26%
Operating income76,863  52,818  46% 139,334  83,884  66%
Operating margin11.8% 9.3% 250 bps 11.0% 7.2% 380 bps
Net income72,032  39,132  84% 118,524  62,190  91%
Diluted earnings per share1.06  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 revenues57,439  34,208  68% 104,898  85,249  23%
Non-trucking and other revenues5,238  4,011  31% 10,076  8,735  15%
Total revenues$491,200  $445,053  10% $954,149  $909,916  5%
            
Operating income73,108  51,225  43% 130,736  80,314  63%
Operating margin14.9% 11.5% 340 bps 13.7% 8.8% 490 bps
Operating ratio85.1% 88.5% (340) bps 86.3% 91.2% (490) bps
            
Adjusted operating income74,366  56,102  33% 133,252  91,403  46%
Adjusted operating margin15.1% 12.6% 250 bps 14.0% 10.0% 400 bps
Adjusted operating margin, net of fuel surcharge17.1% 13.7% 340 bps 15.7% 11.1% 460 bps
Adjusted operating ratio84.9% 87.4% (250) bps 86.0% 90.0% (400) bps
Adjusted operating ratio, net of fuel surcharge82.9% 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 expense124,388  92,842  34% 244,915  188,774  30%
Gross profit17,285  17,321  0% 34,611  33,553  3%
Other operating expenses13,358  14,182  (6)% 26,110  29,329  (11)%
Operating income3,927  3,139  25% 8,501  4,224  101%
Gross margin12.2% 15.7% (350) bps 12.4% 15.1% (270) bps
Operating margin2.8% 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 EoY1% 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* growth3% 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* growth13% 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 rate24.5% to 25.5%
(annual)
25.5%
(2Q21)
24.5% to 25.5%
(annual)
 
Truck age
Trailer age
2.0 years
Low-to-mid “4” years
2.0 years
4.1 years
2.0 years
Low-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. Steele
Executive Vice President, Treasurer
and 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 benefits210,095   32.4   194,981   34.3   414,948   32.8   400,978   34.5  
Fuel58,503   9.0   30,677   5.4   109,341   8.6   79,448   6.8  
Supplies and maintenance49,414   7.6   43,343   7.6   95,561   7.5   89,064   7.7  
Taxes and licenses23,744   3.7   23,953   4.2   46,977   3.7   46,803   4.0  
Insurance and claims20,739   3.2   25,789   4.5   42,795   3.4   61,853   5.3  
Depreciation63,865   9.8   67,670   11.9   127,816   10.1   136,507   11.8  
Rent and purchased transportation150,920   23.2   120,704   21.2   297,413   23.5   247,146   21.3  
Communications and utilities3,333   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 expenses572,951   88.2   516,141   90.7   1,126,926   89.0   1,077,778   92.8  
Operating income76,863   11.8   52,818   9.3   139,334   11.0   83,884   7.2  
Other expense (income):               
Interest expense701   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)       
Other54      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 taxes96,633   14.9   52,011   9.2   158,521   12.5   82,067   7.1  
Income tax expense24,601   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 outstanding68,216     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 expenses572,951   516,141   1,126,926   1,077,778  
Operating income76,863   52,818   139,334   83,884  
Total other expense (income)(19,770)  807   (19,187)  1,817  
Income before income taxes96,633   52,011   158,521   82,067  
Income tax expense24,601   12,879   39,997   19,877  
Net income$72,032   $39,132   $118,524   $62,190  
Diluted shares outstanding68,216   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 expenses570,701   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 taxes78,692   56,888   140,825   93,156  
Adjusted income tax expense20,026   14,123   35,485   22,705  
Adjusted net income (5)$58,666   $42,765   $105,340   $70,451  
Diluted shares outstanding68,216   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 Logistics141,673   110,163   279,526   222,327  
Other (1)16,725   13,315   32,124   28,383  
Corporate409   442   788   1,061  
Subtotal650,007   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 Logistics3,927   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 service7,664   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)           
Company7,305   7,165   2.0 % 7,305   7,165   2.0 %
Independent contractor340   485   (29.9)% 340   485   (29.9)%
Total trucks7,645   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 service2,715   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 miles10.72 % 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 service4,949   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 service34   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 operations53,597  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, respectively391,082   341,104  
Other receivables25,120   23,491  
Inventories and supplies11,899   12,062  
Prepaid taxes, licenses and permits7,970   17,231  
Other current assets38,312   33,694  
Total current assets666,511   456,916  
    
Property and equipment2,428,268   2,405,335  
Less – accumulated depreciation893,453   862,077  
Property and equipment, net1,534,815   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 accruals65,321   76,917  
Accrued payroll48,420   35,594  
Accrued expenses25,972   25,032  
Other current liabilities20,107   28,208  
Total current liabilities254,187   274,014  
    
Long-term debt, net of current portion300,000   175,000  
Other long-term liabilities42,568   43,114  
Insurance and claims accruals, net of current portion (1)236,270   231,638  
Deferred income taxes253,259   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, respectively805   805  
Paid-in capital117,069   116,039  
Retained earnings1,542,497   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’ equity1,296,583   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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