Werner Enterprises Business News

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Werner Enterprises Business News

Postby Coyote » Thu Oct 14, 2004 6:19 pm

Werner Enterprises Reports Record Operating Revenues and Earnings

OMAHA, Neb.--(BUSINESS WIRE)--Oct. 14, 2004--Werner Enterprises, Inc. (Nasdaq:WERN), one of the nation's largest truckload transportation companies, reported record revenues and earnings for the third quarter ended September 30, 2004. Operating revenues increased 16% to $425.4 million compared to $368.0 million in third quarter 2003. Net income increased 18% to $24.3 million compared to $20.5 million in third quarter 2003. Earnings per share for third quarter 2004 were $.30 per share, or 21% higher than the $.25 per share earned in third quarter 2003.

"I am pleased to report our twelfth consecutive quarter of improved year-over-year earnings. Despite rising costs for fuel and driver pay, we improved our operating margin by negotiating needed rate increases," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "Our freight volumes and service performance are at a high level as we move into the seasonally strongest period of the year." ....

http://home.businesswire.com/portal/sit ... =news_view



Werner Enterprises is a full-service transportation company providing truckload and logistics services throughout the 48 states, portions of Canada and Mexico. C.L. Werner founded the Company in 1956. Werner is one of the nation's largest truckload transportation companies with a fleet of 8,475 trucks and 22,950 trailers.

Werner Enterprises' common stock is traded on The Nasdaq Stock Market under the symbol WERN. The Werner Enterprises web site address is http://www.werner.com.
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Werner first carrier allowed by DOT to go totally paperless

Postby eomaha » Tue Nov 30, 2004 7:32 pm

Omaha World Herald wrote:Werner to toss its paper logs

Werner Enterprises' drivers are officially paperless after six years of tracking their work hours with satellite technology.

Under a government-supervised pilot program, Werner drivers haven't had to use the traditional log books since 1998. The company's high-tech system wasn't permanent, however, until a final government nod: an exemption from the Department of Transportation.

Werner, one of the nation's largest truckload carriers, is the first to receive such an exemption and the only one so far to propose and test a fully paperless log system.

The Omaha-based company will celebrate the exemption Thursday at its headquarters with a formal signing by Annette Sandberg, head of the Federal Motor Carrier Safety Administration. After the signing, Sandberg and other officials will tour Werner's driver-training center.

Other companies have attempted less complete systems, said Dick Reiser, Werner executive vice president and general counsel.

Only Werner's uses Global Positioning System technology to free the driver from tracking a truck's movements, Reiser said.

"That's the real distinction. Ours keeps the data and transfers it to the office, so we know on a real-time basis what that driver's duty status is," he said.

The driver pushes a button to indicate a change of status from on-duty but not driving to sleeper berth time or to off duty, he said. If the truck is moving, the system senses and tracks the movement.

The system has other checks and balances, too, Reiser said.

"A receipt for fueling that shows the time of day automatically is picked up and compared to see if the driver is showing he's on duty," he said. "There are a number of cross-checks built into the system that we think gives us a pretty accurate read of what the driver is doing."

One result could be fewer accidents, he said, since some accidents are related to fatigue. Fatigue can be related to work hours.

With GPS tracking, "We can do a better job of ensuring our drivers are driving in accordance with regulations," Reiser said.

Werner began its paperless system as a pilot program under a 1998 memorandum of understanding with the government.

The company started with a system it already was using - called Qualcomm - to provide GPS tracking of loads and wireless communication with drivers.

"So what we really did was take that technology, using the communication feature and global positioning, and wrote a paperless log system that keeps the log for the driver with some entries the driver makes" by pushing a button, Reiser said.

Werner Enterprises only retained rights to use the system it designed for itself, he said.

"The rights to market it were transferred to Qualcomm. It was business transaction," Reiser said. "Did we get something for it? Yes."

Reiser declined to say what compensation Werner received.

The pilot program was revised just once over six years, he said.

The exemption must be renewed every two years, which Reiser said company officials do not anticipate will be a burdensome process.

"Certainly not compared to what we've already had to do to get to where we are now," he said. "It was expensive. It was time consuming. A lot of people here put in tremendous effort to get it done."

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Werner trucking net income up 18%

Postby eomaha » Thu Jan 20, 2005 9:07 pm

Werner may well be Omaha's next F500 company in the years to come.

Omaha World Herald wrote:Werner Enterprises gained 18% last year

Werner Enterprises Inc., an Omaha trucking company, reported a 18 percent rise in diluted per-share net income for 2004 over the previous year.

Werner said it had net income of $87.3 million, or $1.08 per share, last year. For the previous year, the company's profit was $73.7 million, or 90 cents per share.

For the year, revenue was nearly $1.68 billion, a 15 percent increase from revenue of nearly $1.46 billion in 2003.

In the fourth quarter, Werner had net income of $25.8 million, or 32 cents per share, compared with $21.5 million, or 26 cents per share, in 2003. Revenue rose to $455.2 million from $380.2 million.

Chairman and Chief Executive Officer Clarence Werner said increasing freight demand and tight supplies of trucks and drivers combined to provide "truckload carriers with the strongest pricing market in many years."

That situation should continue this year, he said

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Postby DTO Luv » Thu Jan 20, 2005 9:10 pm

It's seems alot of big Omaha companies are banking. Werner, Kiewit, and Ameritrade. Maybe Omaha will soon be home to 7 F500s.
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Postby OmahaDevelopmentMan » Thu Jan 20, 2005 9:37 pm

Great news. Too bad their not likely to move downtown.

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Postby OmahaRules » Thu Jan 20, 2005 9:37 pm

if only First National would go public I'm sure we'd have one more!

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Postby Coyote » Thu Jan 20, 2005 10:31 pm

Bruce "Almighty" Lauritzen would have none of that.
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Postby eomaha » Mon Apr 18, 2005 10:23 pm

At this rate... Werner will soon break 2 billion and WILL be a Fortune 500 company in within a few short years.

Business Wire wrote:Werner Enterprises Reports Improved Operating Revenues and Earnings
OMAHA, Neb.--(BUSINESS WIRE)--April 18, 2005--Werner Enterprises, Inc. (Nasdaq:WERN), one of the nation's largest truckload transportation companies, reported improved operating revenues and earnings for the first quarter ended March 31, 2005.

Operating revenues increased 18% to $455.3 million compared to $386.3 million in first quarter 2004. Net income increased 28% to $19.9 million compared to $15.6 million in first quarter 2004. Earnings per share for first quarter 2005 were $.25 per share, or 29% higher than the $.19 per share earned in first quarter 2004.

"I am pleased to report another excellent quarter," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "Our Werner Enterprises operating model and the outstanding contributions of our drivers, owner-operators, and non-driver employees produced record results. Compared to the abnormally strong freight and pricing market in first quarter 2004, demand for our services and pricing remained strong in first quarter 2005. For the first few weeks of April, freight demand is solid and is trending consistent with normal seasonal freight volumes."

Revenue per total mile, excluding fuel surcharges, continued to steadily improve on a year-over-year basis with a 7.3% increase in first quarter 2005. The ongoing support of our partner customers who agreed to contractual rate increases in third and fourth quarter 2004 contributed to the pricing improvement. Their commitment to Werner Enterprises is sincerely appreciated and helps our Company offset inflationary cost increases such as driver pay, fuel, truck engines, tolls, and other costs.

Historically, our freight demand in first quarter is significantly weaker than the previous fourth quarter due to the seasonal decline from the peak retail season in fourth quarter. However, the decline from fourth quarter 2004 to first quarter 2005 was less significant due to the increasing stability of our freight base and the strength of our customer relationships. For example, our dedicated fleet has grown to almost 40% of our total truck fleet which helps produce more consistent results. In addition, our Value Added Services business generates additional freight opportunities, which tends to level out freight volumes from quarter to quarter and soften seasonal fluctuations.

The driver recruiting market continues to be extremely challenging. By placing more emphasis on training drivers, increasing the frequency of driver home time, providing drivers with a newer truck, and maximizing driver productivity within the federal hours of service regulations, Werner is obtaining an adequate number of drivers to maintain its current fleet size. However, the supply of qualified truck drivers in our industry remains visibly constrained due to alternative jobs that are becoming available with an improved economy and stagnant demographic growth for the industry's targeted driver base over the next several years. Werner expects the tight driver market will make it very difficult for truckload carriers, both large and small, to add meaningful truck capacity in the near future. To provide customers with additional capacity in this tight driver market, Werner is growing its non-asset based Value Added Services (VAS) division.

Fuel prices (excluding fuel taxes) rose sharply in the latter part of February and throughout March 2005. Fuel averaged 45 cents a gallon, or 44%, higher in first quarter 2005 than in first quarter 2004. Sequentially, fuel prices in first quarter 2005 were just two cents a gallon higher than in fourth quarter 2004. In fourth quarter 2004, fuel prices were abnormally high in October and declined by 17% from October to December. In first quarter 2005, fuel prices were lower in January but climbed 22% from January to March. Fuel expense, after considering fuel surcharge collections and the cost impact of owner-operator fuel reimbursements (which is included in rent and purchased transportation expense) and lower miles per gallon due to the new truck engines, had a one cent negative impact on earnings per share in first quarter 2005 compared to first quarter 2004. The strength of the Company's fuel surcharge programs helped to limit the impact to first quarter 2005 earnings.

Fuel prices in the first eighteen days of April 2005 averaged 55 cents a gallon, or 49%, higher than average fuel prices for second quarter 2004. Assuming fuel prices remain at today's price levels throughout the remainder of second quarter 2005, the negative impact of fuel expense on earnings for second quarter 2005 compared to second quarter 2004 is estimated to be in the range of approximately two to three cents per share. This expected earnings impact is lessened due to the fact that in second quarter 2004 fuel prices were increasing and there was a temporary fuel price spike in the western United States. Both of these items reduced earnings in second quarter 2004.

Werner's fuel surcharge program is designed to recoup the higher cost of fuel from customers when fuel prices rise and automatically provide Werner customers with the benefit of lower costs when fuel prices decline. Werner is not pricing the higher cost of fuel in its base per-mile rates to customers, since this approach does not result in lower costs to customers when fuel prices decline.

The average age of the Company's truck fleet declined to 1.54 years as of March 2005. The percentage of the Company truck fleet with post-October 2002 engines increased from 47% as of December 2004 to 59% as of March 2005. It is the Company's intention to continue to keep its fleet as new as possible, in advance of the federally mandated engine emission standards, which are required for all newly manufactured trucks beginning in January 2007. In addition, all truckload carriers will be required to use new ultra-low sulfur fuel for all of the existing trucks in their fleet beginning in mid-2006. Preliminary estimates are that the new ultra-low sulfur fuel will cause an approximate 1% to 3% decline in fuel miles per gallon than current fuel. To gain a better understanding of the impact of these items, the Company recently received a few January 2007 compliant test engines that the Company will operate using the ultra-low sulfur fuel.

The Company's non-asset based VAS division continued its excellent growth in revenues and improved operating income. VAS revenues rose 50% and operating income increased 115%.

Value Added Services (amounts in 000's) 1Q05 1Q04
--------------------------------------- -------------- --------------
Revenues $50,160 100.0% $33,367 100.0%
Gross margin 4,994 10.0 3,126 9.4
Operating income 1,993 4.0 929 2.8
Werner's expansion of its VAS service offerings assists customers by providing needed capacity while driving cost out of their freight system. The Company's VAS business operates with a lower operating income percentage, but is realizing a substantially higher return on assets than the more capital-intensive truckload business due to the lower equipment investment. A comparison of the Company's truckload and VAS operating ratios for first quarter 2005 and 2004 is shown below.

Operating Ratios 1Q05 1Q04 Difference
--------------------------------- ------ ------ ----------
Truckload Transportation Services 92.2% 93.1% (0.9)%
Value Added Services 96.0 97.2 (1.2)
Higher fuel prices and higher fuel surcharge collections have the effect of increasing the Total Company operating ratio and the Truckload Transportation Services segment's operating ratio. Eliminating this sometimes volatile source of revenue provides a more consistent basis for comparing the results of operations from period to period. The Truckload Transportation Services segment's operating ratio for first quarter 2005 and first quarter 2004 would be 91.4% and 92.7%, respectively, if the fuel surcharge revenues are excluded from revenues and netted against operating expenses.

Gains on sales of revenue equipment, primarily trucks, are reflected as a reduction of Other Operating Expenses in the Company's income statement and were $4.5 million in first quarter 2005 compared to $1.6 million in first quarter 2004. Gains on sales increased due to increased unit sales of trucks as the Company is attempting to keep its fleet as new as possible and due to $1.3 million of pre-sale repair expenses of revenue equipment being included in Other Operating Expenses in first quarter 2004. In first quarter 2005 these similar repair expenses are included in Supplies and Maintenance. Werner Enterprises' wholly-owned subsidiary, Fleet Truck Sales, is one of the largest domestic class 8 truck sales companies in the United States. Fleet Truck Sales will be adding its 17th truck sales location during second quarter 2005. The Company's goal is to sell a majority of its used equipment through its Fleet Truck Sales network.

The Company's financial position remains strong. Werner Enterprises is debt-free and has no truck or trailer operating leases and, therefore, has no off-balance sheet debt. Stockholders' equity has grown to $793.0 million, or $9.99 per share.

The Company's continuing goal is to improve its annual operating margin to 10% or better before increasing the Company's fleet growth rate, assuming an adequate supply of drivers is available.

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

Quarter % of Quarter % of
Ended Operating Ended Operating
3/31/05 Revenues 3/31/04 Revenues
--------- --------- --------- ---------

Operating revenues $455,262 100.0 $386,280 100.0
--------- --------- --------- ---------

Operating expenses:
Salaries, wages and benefits 140,222 30.8 133,312 34.5
Fuel 67,628 14.9 45,752 11.9
Supplies and maintenance 38,747 8.5 32,894 8.5
Taxes and licenses 28,778 6.3 27,512 7.1
Insurance and claims 23,200 5.1 19,507 5.0
Depreciation 39,637 8.7 34,985 9.1
Rent and purchased
transportation 82,567 18.1 63,150 16.4
Communications and utilities 5,442 1.2 4,548 1.2
Other (3,796) (0.8) (239) (0.1)
--------- --------- --------- ---------
Total operating expenses 422,425 92.8 361,421 93.6
--------- --------- --------- ---------
Operating income 32,837 7.2 24,859 6.4
--------- --------- --------- ---------

Other expense (income):
Interest expense 4 0.0 2 0.0
Interest income (965) (0.2) (535) (0.1)
Other 27 0.0 37 0.0
--------- --------- --------- ---------
Total other expense
(income) (934) (0.2) (496) (0.1)
--------- --------- --------- ---------
Income before income taxes 33,771 7.4 25,355 6.5
Income taxes 13,850 3.0 9,787 2.5
--------- --------- --------- ---------
Net income $19,921 4.4 $15,568 4.0
========= ========= ========= =========

Diluted shares outstanding 80,824 81,357
========= =========
Diluted earnings per share $.25 $.19
========= =========


OPERATING STATISTICS
(Quarter Ended March 31)
1Q05 % Change 1Q04
--------- -------- ---------
Trucking revenues, net of fuel surcharge
(1) $357,866 8.5% $329,733
Trucking fuel surcharge revenues (1) 40,936 127.8% 17,971
Non-trucking revenues, including VAS (1) 53,677 48.1% 36,253
Other operating revenues (1) 2,783 19.8% 2,323
--------- ---------
Operating revenues (1) $455,262 17.9% $386,280
========= =========

Average monthly miles per tractor 9,932 (1.0)% 10,034
Average revenues per total mile (2) $1.393 7.3% $1.298
Average revenues per loaded mile (2) $1.579 7.4% $1.470
Average percentage of empty miles 11.77% 0.7% 11.69%
Average trip length in miles (loaded) 573 (1.2)% 580
Total miles (loaded and empty) (1) 256,846 1.1% 253,952
Average tractors in service 8,620 2.2% 8,436
Average revenues per tractor per week (2) $3,193 6.2% $3,007
Capital expenditures, net (1) $77,038 $32,421
Cash flow from operations (1) $65,032 $59,508
Return on assets (annualized) 6.4% 5.5%
Total tractors (at quarter end)
Company 7,720 7,495
Owner-operator 930 930
--------- ---------
Total tractors 8,650 8,425

Total trailers (at quarter end) 23,710 22,960


(1) Amounts in thousands.
(2) Net of fuel surcharge revenues.



BALANCE SHEET DATA
(In thousands, except
share amounts)


3/31/05 12/31/04
----------- -----------
(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents $96,058 $108,807
Accounts receivable, trade, less allowance
of $8,469 and $8,189, respectively 187,609 186,771
Other receivables 10,922 11,832
Inventories and supplies 10,146 9,658
Prepaid taxes, licenses and permits 11,988 15,292
Current deferred income taxes 17,538 -
Other current assets 19,791 18,896
----------- -----------
Total current assets 354,052 351,256
----------- -----------

Property and equipment 1,435,965 1,374,649
Less - accumulated depreciation 532,307 511,651
----------- -----------
Property and equipment, net 903,658 862,998
----------- -----------

Other non-current assets 13,415 11,521
----------- -----------

$1,271,125 $1,225,775
=========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $47,349 $49,618
Insurance and claims accruals 61,191 55,095
Accrued payroll 18,215 19,579
Income taxes payable 40,200 475
Current deferred income taxes - 15,569
Other current liabilities 18,120 17,230
----------- -----------
Total current liabilities 185,075 157,566
----------- -----------

Insurance and claims accruals, net of current
portion 86,301 84,301

Deferred income taxes 206,746 210,739

Stockholders' equity:
Common stock, $.01 par value, 200,000,000
shares authorized; 80,533,536 shares
issued; 79,410,733 and 79,197,747 shares
outstanding, respectively 805 805
Paid-in capital 105,631 106,695
Retained earnings 708,176 691,035
Accumulated other comprehensive loss (910) (861)
Treasury stock, at cost; 1,122,803 and
1,335,789 shares, respectively (20,699) (24,505)
----------- -----------
Total stockholders' equity 793,003 773,169
----------- -----------
$1,271,125 $1,225,775
=========== ===========
Werner Enterprises is a full-service transportation company providing truckload and logistics services throughout the 48 states, portions of Canada and Mexico. C.L. Werner founded the Company in 1956. Werner is one of the nation's largest truckload transportation companies with a fleet of 8,650 trucks and 23,710 trailers.

Last Friday, Werner announced that it launched a redesigned website which features expanded information and improved functionality. In addition to the redesign, Werner unveiled a website dedicated to its VAS division which enhances service to both VAS carriers and VAS customers.

Werner Enterprises' common stock is traded on The Nasdaq Stock Market under the symbol WERN.

Note: This press release contains forward-looking statements, which are based on information currently available. Actual results could differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2004. The Company assumes no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason.


CONTACT: Werner Enterprises, Inc., Omaha
Robert E. Synowicki, Jr., 402-894-3000
or
John J. Steele, 402-894-3036

SOURCE: Werner Enterprises, Inc.


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Postby DTO Luv » Mon Apr 18, 2005 10:52 pm

That'll make up for Kieiwt's slip. I hope they get back in.
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Werner profits go up.

Postby the1wags » Tue Apr 18, 2006 11:36 am

Werner's first quarter profits up 11% over last year. Good news.

Link to the World Herald article
http://www.omaha.com/index.php?u_pg=46& ... nd=2399336

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Werner goes Global

Postby OmahaJaysCU » Sun Jul 09, 2006 5:15 pm

http://www.omaha.com/index.php?u_pg=46&u_sid=2203028

Now Werner is following its customers to Shanghai, establishing itself for the first time as a freight forwarder, guiding its customers' products from factories, through ocean ports in China and the United States, and on to final destinations. Werner also will manage freight from the United States to destinations in China.


China holds some risks for Werner, the fourth-largest truckload carrier in the United States, but the risk of not going there posed a greater threat, Leathers said.


This could be huge for Werner. Maybe in a few years this will help them climb the F1000 list and possibly crack the 500 in the future. Which would be nice, since DTO is calling a Mutual drop out.

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Re: Werner doing just fine

Postby Coyote » Thu Apr 14, 2016 11:43 pm

I did not know Werner had an office in MTC's South Twin Tower...
Greenslate will be renovating it...
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Re: Werner Enterprises Business News

Postby jessep28 » Fri Apr 15, 2016 9:40 pm

Increased fuel costs? Unless they are locked in to some bad futures contracts, diesel prices are way down.
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Re: Werner Enterprises Business News

Postby iamjacobm » Fri Apr 15, 2016 9:49 pm

jessep28 wrote:Increased fuel costs? Unless they are locked in to some bad futures contracts, diesel prices are way down.


OP is nearly 12 years old.

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Re: Werner Enterprises Business News

Postby jessep28 » Fri Apr 15, 2016 10:16 pm

iamjacobm wrote:
jessep28 wrote:Increased fuel costs? Unless they are locked in to some bad futures contracts, diesel prices are way down.


OP is nearly 12 years old.


Oops. I read that article twice and didn't catch the date.
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Re: Werner doing just fine

Postby iamjacobm » Wed Jun 08, 2016 4:51 pm

Coyote wrote:I did not know Werner had an office in MTC's South Twin Tower...
Greenslate will be renovating it...


New signs up. "Werner Logistics."


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