Werner Enterprises, Inc., one of the nation’s largest transportation and logistics companies, has reported financial results for the fourth quarter and full year ended December 31, 2018.
Total revenues for the quarter increased 14% to $646.4 million versus the prior year quarter, primarily attributable to dedicated fleet expansion, logistics growth, higher contractual rates, increased customer project revenues and lane mix changes.
Operating income of $74.9 million increased $29.9 million, or 66%. Operating margin of 11.6% increased 370 basis points due to revenue increases that exceeded cost increases, which benefited from a newer fleet and low driver turnover. On a non-GAAP basis, adjusted operating income of $73.6 million increased $28.6 million, or 63%. Adjusted operating margin of 11.4% improved 350 basis points from 7.9% for the same quarter last year.
Interest expense of $0.9 million was $0.5 million higher than the same quarter a year ago due to slightly higher aggregate debt and a higher average interest rate. The effective income tax rate during the quarter was 26.8% compared to an adjusted 32.6% effective income tax rate in fourth quarter 2017.
Net income of $54.6 million decreased 61%. Adjusted net income of $53.6 million increased 75%. Diluted earnings per share (EPS) for the quarter of $0.77 decreased 61%. Diluted EPS included a $0.03 per share real estate gain and a $0.01 per share insurance and claims accrual for interest on a previously disclosed jury verdict. On a non-GAAP basis, adjusted EPS of $0.75 increased 79% compared to $0.42 for the fourth quarter 2017. Fourth quarter 2017 and full year 2017 results included a $110.5 million, or $1.52 per diluted share, non-cash reduction in income tax expense, which resulted from the revaluation of net deferred income tax liabilities to reflect the lower federal corporate income tax rate enacted in December 2017.
“We are extremely pleased and proud that Werner produced record results in 2018, both in our fourth quarter and the full year,” said Derek J. Leathers, President and Chief Executive Officer.
“Beginning three years ago, we made significant investments in our 5 T’s strategy of Trucks, Trailers, Talent, Technology and Terminals. Those investments, combined with our commitment to raise the bar on customer service, are delivering results. I want to personally thank the extremely talented and dedicated men and women of Werner who keep America moving every day. It is an exciting time at Werner. We believe we are uniquely positioned to continue advancing our market leadership given our new fleet, experienced driver and non-driver workforce and our diversified portfolio of dedicated truckload, one-way truckload and asset-backed logistics service offerings. In addition, our strong cash flow, flexible balance sheet and low debt level position Werner well for the future.”
To view full financial release, click here.
Werner Enterprises, Inc., one of the nation’s largest transportation and logistics companies, has reported financial results for the fourth quarter and full year ended December 31, 2018.
Total revenues for the quarter increased 14% to $646.4 million versus the prior year quarter, primarily attributable to dedicated fleet expansion, logistics growth, higher contractual rates, increased customer project revenues and lane mix changes.
Operating income of $74.9 million increased $29.9 million, or 66%. Operating margin of 11.6% increased 370 basis points due to revenue increases that exceeded cost increases, which benefited from a newer fleet and low driver turnover. On a non-GAAP basis, adjusted operating income of $73.6 million increased $28.6 million, or 63%. Adjusted operating margin of 11.4% improved 350 basis points from 7.9% for the same quarter last year.
Interest expense of $0.9 million was $0.5 million higher than the same quarter a year ago due to slightly higher aggregate debt and a higher average interest rate. The effective income tax rate during the quarter was 26.8% compared to an adjusted 32.6% effective income tax rate in fourth quarter 2017.
Net income of $54.6 million decreased 61%. Adjusted net income of $53.6 million increased 75%. Diluted earnings per share (EPS) for the quarter of $0.77 decreased 61%. Diluted EPS included a $0.03 per share real estate gain and a $0.01 per share insurance and claims accrual for interest on a previously disclosed jury verdict. On a non-GAAP basis, adjusted EPS of $0.75 increased 79% compared to $0.42 for the fourth quarter 2017. Fourth quarter 2017 and full year 2017 results included a $110.5 million, or $1.52 per diluted share, non-cash reduction in income tax expense, which resulted from the revaluation of net deferred income tax liabilities to reflect the lower federal corporate income tax rate enacted in December 2017.
“We are extremely pleased and proud that Werner produced record results in 2018, both in our fourth quarter and the full year,” said Derek J. Leathers, President and Chief Executive Officer.
“Beginning three years ago, we made significant investments in our 5 T’s strategy of Trucks, Trailers, Talent, Technology and Terminals. Those investments, combined with our commitment to raise the bar on customer service, are delivering results. I want to personally thank the extremely talented and dedicated men and women of Werner who keep America moving every day. It is an exciting time at Werner. We believe we are uniquely positioned to continue advancing our market leadership given our new fleet, experienced driver and non-driver workforce and our diversified portfolio of dedicated truckload, one-way truckload and asset-backed logistics service offerings. In addition, our strong cash flow, flexible balance sheet and low debt level position Werner well for the future.”
To view full financial release, click here.
