J.B. Hunt Transport Services (JBHT) 8-K Results of Operations and Financial Condition

Exhibit 99.1

J.B. Hunt Transport Services, Inc.	Contact:	Kirk Thompson
615 J.B. Hunt Corporate Drive		President and
Lowell, Arkansas 72745		Chief Executive Officer
(NASDAQ: JBHT)		(479) 820-8110

FOR IMMEDIATE RELEASE

J. B. HUNT TRANSPORT SERVICES, INC. REPORTS REVENUES AND EARNINGS

FOR THE THIRD QUARTER 2007

•	Third Quarter 2007 Revenue:	$892 million; up 4%
•	Third Quarter 2007 Operating Income:	$96 million; down 5%
•	Third Quarter 2007 EPS:	38 cents vs. 39 cents

LOWELL, ARKANSAS, October 11, 2007 - J. B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2007 net earnings of $50.8 million, or diluted earnings per share of 38 cents vs. 2006 third quarter earnings of $57.8 million, or 39 cents per diluted share.

Total operating revenue for the current quarter was $892 million, a 4% increase over the $858 million for the third quarter 2006.  Containers and trailers grew from 51,889 at the end of the third quarter 2006 to 57,489, or 11%, over the same period last year.  The growth in the fleet was primarily to support additional intermodal business.  A 146% surge in revenues from our Integrated Capacity Solutions (ICS) segment also contributed to the growth.

Operating income for the current quarter decreased to $96 million vs. $100 million for the third quarter 2006.  Net interest expense increased significantly from $5.2 million in the third quarter 2006 to $12.5 million in the current quarter, primarily due to higher levels of debt.  These increased borrowings were used primarily for our purchases of company stock.

“In the early part of this decade we embarked upon a plan to dramatically improve our margins, our return on invested capital, our returns to shareholders and our free cash flow.  While our shrinking truck business is currently showing the strains of a depressed freight economy, we have experienced tremendous success at accomplishing our previously established goals.  To post a sub-90% operating ratio in this environment and generate earnings of $51 million is an achievement that confirms our strategy.  It appears we have also accomplished our goal of becoming less cyclical in earnings.  We are by no means satisfied with our results, but frankly we can’t be too disappointed in the level of earnings power the Company has in a particularly difficult environment.  Our Intermodal business clearly represents the foundation of our earnings resiliency and demonstrates that our Company is no longer driven by the cyclicality typical of a truckload model,” said Kirk Thompson, JBHT President and CEO.

Segment Information:

Intermodal (JBI)

•	Third Quarter 2007 Segment Revenue:	$429 million; up 17%
•	Third Quarter 2007 Operating Income:	$61 million; up 32%

JBI load count increased 23% over the same quarter 2006 with significant growth coming in shorter haul lanes primarily in the Eastern half of the U.S.  The majority of this growth came from existing customers that value the consistent service provided by JBI and our underlying rail partners and reflects confidence in our Intermodal product.  Service sensitive customers are continuing to convert over-the-road truck freight to the more economical intermodal service.  JBI has also seen increased freight volumes as imports continue to positively impact our business.

Operating income gains were the result of improved asset efficiency and strict cost controls.  Driver productivity improved 3%, driver turnover statistics improved, while empty dray miles and the use of purchased outside dray were reduced.  JBI continues to focus on adding our own company dray trucks to support our growth, adding more than 200 tractors and drivers since the beginning of 2007.  New container additions have allowed the Company to retire some older containers, thereby leading to reduced maintenance cost and increased container productivity.

Dedicated Contract Services (DCS)

•	Third Quarter 2007 Segment Revenue:	$237 million; down 1%
•	Third Quarter 2007 Operating Income:	$24.4 million; down 21%

DCS revenue declined 1% vs. the same quarter last year.  However, excluding the effects of fuel surcharges, revenue was essentially flat as was the average active tractor count of 5,248 units in the third quarter 2007 compared to 5,230 units in the third quarter 2006.  Revenue per truck per week was down by less than 1% over the same period.  Operating income declined $6.4 million primarily attributable to unfavorable casualty and workers compensation costs which were, as a percentage of revenue, 200 basis points higher in the third quarter 2007 versus 2006.

We continued to experience reduction in fleets at certain accounts that provide more generic dedicated business as some customers converted freight to traditional truckload service.  We remain committed to growing our value-added, true dedicated business that represents our targeted market.  The loss of the more generic business, the shift to more true dedicated capacity and a weaker freight environment yielded a 4% reduction in utilization and a slight increase in empty miles when comparing the third quarter 2007 to the third quarter 2006.  Offsetting the reduction in utilization was a 5% increase in revenue per loaded mile which primarily reflects the change in business mix.

Truck (JBT)

•	Third Quarter 2007 Segment Revenue:	$208 million; down 16%
•	Third Quarter 2007 Operating Income:	$9.2 million; down 61%

JBT revenue declined 16% on an 11% reduction in loads, as compared to the third quarter 2006.  We also reduced the size of our tractor fleet by approximately 11%.  Overall, our rate per loaded mile, excluding fuel surcharges, decreased 3.8% during the current quarter.  Most of the rate decline was a result of lower spot and unplanned business and a significant change in our freight mix.  We continue to focus on holding existing rates steady in other categories despite rate pressure from the market.  Freight demand overall remained very soft throughout the quarter.

The continued reduction in the number of trucks in the segment is based on our assessment of longer term demand with the ultimate goal for JBT to be a fleet that is right-sized in relation to customers’ needs, price elasticity and return on investment.  Truckload service remains a core competency of the Company and completes our broad service offering.

Integrated Capacity Solutions (ICS)

•	Third Quarter 2007 Segment Revenue:	$26 million; up 146%
•	Third Quarter 2007 Operating Income:	$1.4 million; up 64%

ICS provides non-asset and asset-light transportation solutions to customers through relationships with third-party carriers and integration with JBHT owned equipment. ICS services include flatbed, refrigerated, LTL, as well as a variety of dry van and intermodal solutions. ICS financial results in 2006 were reported as part of the Truck segment.

Our third quarter 2007 revenue increased 146% from the third quarter 2006 on increased volume.  ICS’s steady revenue growth from new and existing customers resulted in a 51% increase from the second quarter of this year. Margin expansion was achieved, relative to the earlier part of 2007, as operating leverage from the higher revenue began to cover higher costs primarily resulting from a significant increase in headcount.  Operating income, as a result, increased 64% and exceeded last year’s comparable quarter for the first time this year.  In addition, our third-party carrier base grew 26% during the third quarter to over 6,400 carriers by quarter-end.

Cash Flow and Capitalization:

Approximately 8.6 million shares of company stock were purchased during the third quarter 2007 for just over $241 million.  Approximately $62 million remained authorized by our Board of Directors and available at September 30, 2007, for purchases of company stock.  As of September 30, 2007, we owed approximately $857 million on our various credit facilities vs. $396 million at December 31, 2006.

This press release contains forward-looking statements, which are based on information currently available.  Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2006. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason.  This press release and related information will be available immediately to interested parties at our web site, www.jbhunt.com.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	September 30, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$		4,113	$	7,371
Accounts receivable	359,220			346,251
Income tax receivable	0			11,824
Prepaid expenses and other	48,196			105,797
Total current assets	411,529			471,243
Property and equipment	2,114,910			1,884,318
Less accumulated depreciation	715,230			600,767
Net property and equipment	1,399,680			1,283,551
Other assets	14,943			15,263
	$	1,826,152		$		1,770,057
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt	$	234,000		$		214,000
Trade accounts payable	202,968			170,672
Claims accruals	18,522			20,042
Accrued payroll	39,080			42,352
Other accrued expenses	19,327			7,961
Deferred income taxes	21,799			23,703
Total current liabilities	535,696			478,730
Long-term debt	623,200			182,400
Other long-term liabilities	34,406			54,656
Deferred income taxes	273,575			294,534
Stockholders’ equity	359,275			759,737
	$	1,826,152		$		1,770,057

Supplemental Data

(unaudited)

	September 30, 2007		December 31, 2006
Actual shares outstanding at end of period (000)	126,879		144,555
Book value per actual share outstanding at end of period	$	2.83	$	5.26
	Nine Months Ended September 30
	2007		2006
Net cash provided by operating activities (000)	$	362,953	$	365,188
Net capital expenditures (000)	$	268,371	$	334,192
Purchases of common stock (000)	$	541,618	$	257,395

J.B. HUNT TRANSPORT SERVICES, INC.
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)

	Three Months Ended September 30
	2007				2006
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	767,365			$	734,139
Fuel surcharge revenues	124,273				124,126
Total operating revenues	891,638		100.0	%	858,265		100.0	%
Operating expenses
Rents and purchased transportation	319,809		35.9	%	288,096		33.6	%
Salaries, wages and employee benefits	224,421		25.2	%	229,668		26.8	%
Fuel and fuel taxes	116,596		13.1	%	119,663		13.9	%
Depreciation and amortization	52,299		5.9	%	45,812		5.3	%
Operating supplies and expenses	40,399		4.5	%	37,028		4.3	%
Insurance and claims	17,669		2.0	%	14,325		1.7	%
Operating taxes and licenses	8,429		0.9	%	8,829		1.0	%
General and administrative expenses, net of gains	10,802		1.2	%	8,482		1.0	%
Communication and utilities	5,315		0.6	%	5,873		0.7	%
Total operating expenses	795,739		89.2	%	757,776		88.3	%
Operating income	95,899		10.8	%	100,489		11.7	%
Net interest expense	12,487		1.4	%	5,156		0.6	%
Equity in loss of associated company	25		0.0	%	523		0.1	%
Earnings before income taxes	83,387		9.4	%	94,810		11.0	%
Income taxes	32,604		3.7	%	36,976		4.3	%
Net earnings	$	50,783	5.7	%	$	57,834	6.7	%
Average diluted shares outstanding	133,659				148,680
Diluted earnings per share	$	0.38			$	0.39

J.B. HUNT TRANSPORT SERVICES, INC
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)

	Nine Months Ended September 30
	2007				2006
	% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	2,216,410			$	2,148,215
Fuel surcharge revenues	328,539				328,204
Total operating revenues	2,544,949		100.0	%	2,476,419		100.0	%
Operating expenses
Rents and purchased transportation	878,474		34.5	%	837,225		33.8	%
Salaries, wages and employee benefits	666,996		26.2	%	668,295		27.0	%
Fuel and fuel taxes	336,425		13.2	%	339,446		13.7	%
Depreciation and amortization	152,346		6.0	%	133,862		5.4	%
Operating supplies and expenses	115,840		4.6	%	108,599		4.4	%
Insurance and claims	51,745		2.0	%	42,125		1.7	%
Operating taxes and licenses	25,362		1.0	%	25,921		1.0	%
General and administrative expenses, net of gains	29,395		1.2	%	26,356		1.1	%
Communication and utilities	15,841		0.6	%	17,304		0.7	%
Total operating expenses	2,272,424		89.3	%	2,199,133		88.8	%
Operating income	272,525		10.7	%	277,286		11.2	%
Net interest expense	30,613		1.2	%	8,726		0.4	%
Equity in loss of associated company	1,085		0.0	%	2,744		0.1	%
Earnings before income taxes	240,827		9.5	%	265,816		10.7	%
Income taxes	82,016		3.2	%	103,668		4.2	%
Net earnings	$	158,811	6.3	%	$	162,148	6.5	%
Average diluted shares outstanding	140,675				153,816
Diluted earnings per share	$	1.13			$	1.05

Financial Information By Segment
(unaudited)

	Three Months Ended September 30
	2007					2006
	Dollar			% Of		Dollar			% Of
	Amounts			Total		Amounts			Total
	(000)					(000)
Revenue
Intermodal	$	428,872		48	%	$	366,470		43	%
Dedicated	237,044			27	%	238,576			28	%
Truck	208,148			23	%	248,741			29	%
Integrated Capacity Solutions	25,575			3	%	10,407			1	%
Subtotal	899,639			101	%	864,194			101	%
Intersegment eliminations	(8,001		)	(1	)%	(5,929		)	(1	)%
Consolidated revenue	$	891,638		100	%	$	858,265		100	%
Operating income
Intermodal	$	61,025		64	%	$	46,358		46	%
Dedicated	24,374			25	%	30,817			31	%
Truck	9,162			10	%	23,293			23	%
Integrated Capacity Solutions	1,391			1	%	847			1	%
Other (1)	(53		)	(0	)%	(826		)	(1	)%
Operating income	$	95,899		100	%	$	100,489		100	%

(1) Includes corporate support activity

	Nine Months Ended September 30
	2007					2006
	Dollar			% Of		Dollar			% Of
	Amounts			Total		Amounts			Total
	(000)					(000)
Revenue
Intermodal	$	1,170,563		46	%	$	1,043,301		42	%
Dedicated	697,640			28	%	681,757			28	%
Truck	644,917			25	%	736,586			30	%
Integrated Capacity Solutions	55,493			2	%	31,783			1	%
Subtotal	2,568,613			101	%	2,493,427			101	%
Intersegment eliminations	(23,664		)	(1	)%	(17,008		)	(1	)%
Consolidated revenue	$	2,544,949		100	%	$	2,476,419		100	%
Operating income
Intermodal	$	161,773		59	%	$	125,651		45	%
Dedicated	71,170			26	%	79,577			29	%
Truck	37,051			14	%	69,238			25	%
Integrated Capacity Solutions	2,546			1	%	2,745			1	%
Other (1)	(15		)	(0	)%	75			0	%
Operating income	$	272,525	��	100	%	$	277,286		100	%

(1) Includes corporate support activity

Operating Statistics by Segment

(unaudited)

	Three Months Ended September 30
	2007		2006
Intermodal (JBI)
Loads	194,670		158,188
Length of haul	1,913		1,980
Revenue per load	$	2,203	$	2,317
Average tractors during the period *	1,737		1,527
Tractors (end of period)
Company-owned	1,757		1,518
Independent contractor	7		19
Total Tractors	1,764		1,537
Containers (end of period)	31,075		26,263
Average effective trailing equipment usage	30,381		25,433
Dedicated (DCS)
Loads	354,590		353,378
Length of haul	246		261
Revenue per truck per week**	$	3,529	$	3,553
Average trucks during the period***	5,248		5,230
Trucks (end of period)
Company-owned	5,062		5,070
Independent contractor	109		125
Customer-owned (DCS Operated)	60		72
Total Trucks	5,231		5,267
Trailers (end of period)	8,015		6,519
Average effective trailing equipment usage	13,662		12,572
Truck (JBT)
Loads	193,549		217,852
Length of haul	516		527
Loaded miles (000)	100,206		115,886
Total miles (000)	114,307		130,718
Average non-paid empty miles per load	73.0		66.1
Revenue per tractor per week**	$	3,835	$	3,817
Average tractors during the period *	4,740		5,300
Tractors (end of period)
Company-owned	3,790		4,358
Independent contractor	938		944
Total Tractors	4,728		5,302
Trailers (end of period)	18,399		19,107
Average effective trailing equipment usage	13,042		13,412
Integrated Capacity Solutions (ICS)
Loads	18,998		6,953

* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor and customer-owned trucks

Operating Statistics by Segment

(unaudited)

	Nine Months Ended September 30
	2007		2006
Intermodal (JBI)
Loads	532,209		461,770
Length of haul	1,928		1,991
Revenue per load	$	2,199	$	2,259
Average tractors during the period *	1,653		1,458
Tractors (end of period)
Company-owned	1,757		1,518
Independent contractor	7		19
Total Tractors	1,764		1,537
Containers (end of period)	31,075		26,263
Average effective trailing equipment usage	28,726		24,567
Dedicated (DCS)
Loads	1,048,573		1,026,993
Length of haul	253		265
Revenue per truck per week**	$	3,455	$	3,460
Average trucks during the period***	5,243		5,118
Trucks (end of period)
Company-owned	5,062		5,070
Independent contractor	109		125
Customer-owned (DCS Operated)	60		72
Total Trucks	5,231		5,267
Trailers (end of period)	8,015		6,519
Average effective trailing equipment usage	13,274		12,486
Truck (JBT)
Loads	605,101		657,313
Length of haul	518		535
Loaded miles (000)	316,687		354,464
Total miles (000)	360,065		397,720
Average non-paid empty miles per load	71.3		63.6
Revenue per tractor per week**	$	3,656	$	3,715
Average tractors during the period*	4,988		5,382
Tractors (end of period)
Company-owned	3,790		4,358
Independent contractor	938		944
Total Tractors	4,728		5,302
Trailers (end of period)	18,399		19,107
Average effective trailing equipment usage	13,168		13,609
Integrated Capacity Solutions (ICS)
Loads	39,134		19,648

* Includes company-owned and independent contractor tractors
** Using weighted workdays
*** Includes company-owned, independent contractor and customer-owned trucks