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

Exhibit 99.1

J.B. Hunt Transport Services, Inc. 615 J.B. Hunt Corporate Drive Lowell, Arkansas 72745 (NASDAQ: JBHT) Contact: David G. Mee Executive Vice President, Finance/Administration and Chief Financial Officer (479) 820-8363

FOR IMMEDIATE RELEASE

J.B. HUNT TRANSPORT SERVICES, INC. REPORTS EARNINGS FOR THE THIRD QUARTER 2017

■    Third Quarter 2017 Revenue:                    $1.84 billion; up 9%

■    Third Quarter 2017 Operating Income:   $165 million; down 10%

■    Third Quarter 2017 EPS:                            91 cents vs. 97 cents

LOWELL, ARKANSAS, October 13, 2017 - J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2017 net earnings of $100.4 million, or diluted earnings per share of 91 cents vs. third quarter 2016 net earnings of $109.4 million, or 97 cents per diluted share.

Total operating revenue for the current quarter was $1.84 billion, compared with $1.69 billion for the third quarter 2016. Load growth of 6% in Intermodal (JBI), a 14% increase in revenue producing trucks and improved asset productivity in Dedicated Contract Services (DCS)™ and a 17% increase in revenue per load in Integrated Capacity Solutions (ICS) contributed to the increase in consolidated revenue compared to prior year. Operating revenue growth was partially offset by a 7% decrease in load count in the Truck (JBT) business segment and the disruption caused by hurricanes Harvey, Irma and Maria. Current quarter total operating revenue, excluding fuel surcharges, increased 8% vs. the comparable quarter 2016.

Operating income for the current quarter totaled $165 million vs. $183 million for the third quarter 2016. Operating income decreased from third quarter 2016 primarily from increases in driver wages and recruiting costs, increased rail purchase transportation rates, higher insurance and claims costs, increased legal and consulting costs, higher equipment maintenance costs and acquisition and integration costs incurred by DCS with the purchase of Special Logistics Dedicated (SLD) that closed during the quarter.

Interest expense in the current quarter increased primarily from higher debt balances and higher interest rates compared to third quarter 2016. The effective income tax rate for the current quarter is 35.9%, compared to 38% in the third quarter 2016. We expect our 2017 annual tax rate to be approximately 35%.

Segment Information:

Intermodal (JBI)

■Third Quarter 2017 Segment Revenue:    $1.05 billion; up 8%

■Third Quarter 2017 Operating Income:    $109.1 million; down 7%

Overall volumes increased 6% over the same period in 2016. The Eastern network realized load growth of 2% and Transcontinental loads grew 8% over the third quarter 2016. The network disruption caused from hurricanes Harvey, Irma and Maria limited our ability to handle approximately 5,500 loads in the current period. Revenue increased 8% reflecting the 6% volume growth and an approximate 2% increase in revenue per load, which is the combination of changes in customer rate, freight mix and fuel surcharges. Revenue per load excluding fuel surcharges was flat compared to third quarter 2016.

Operating income decreased 7% over prior year. Benefits from improved volumes were offset by increased costs to attract, place and retain drivers; higher insurance and claims costs; increases in rail purchased transportation rates; increases in costs from inefficiencies due to rail congestion, rationalization and maintenance; and approximately $1.8 million in additional costs and inefficiencies in the dray and rail networks in areas directly affected by natural disasters. The current period ended with approximately 87,000 units of trailing capacity and 5,500 power units assigned to the dray fleet.

Dedicated Contract Services (DCS)

■    Third Quarter 2017 Segment Revenue:     $438 million; up 11%

■Third Quarter 2017 Operating Income:    $42.9 million; down 18%

DCS revenue increased 11% during the current quarter over the same period in 2016. Productivity (revenue per truck per week) increased by approximately 2% vs. 2016. Productivity excluding fuel surcharge revenue was flat from a year ago. Increased revenue from better integration of assets between customer accounts and customer rate increases was partially offset by lower productivity at new contracts implemented during the current quarter. A net additional 1,024 revenue producing trucks, 621 net additions sequentially from second quarter 2017 including 328 acquired in the SLD purchase, were in the fleet by the end of the quarter. Approximately 63% of these additions represent private fleet conversions versus traditional dedicated capacity services. Customer retention rates remain above 98%.

Operating income decreased by 18% from a year ago primarily from the timing between increasing driver wages and recovery through customer contracts, increased driver recruiting costs including the length of time to fill open trucks, increased insurance and claims costs, increased salaries and benefits costs, higher equipment ownership costs and approximately $1 million of excess costs associated with operations in the hurricane affected regions compared to the same period in 2016. During the current period, DCS incurred approximately $3 million in acquisition costs and $1.5 million in intangible asset amortization due to the purchase of SLD.

Integrated Capacity Solutions (ICS)

■Third Quarter 2017 Segment Revenue:     $269 million; up 16%

■  Third Quarter 2017 Operating Income:    $ 7.3 million; down 14%

ICS revenue increased 16% in the current quarter vs. the third quarter 2016. Revenue per load increased 17% from increased spot market activity while load volumes decreased 1% vs third quarter 2016. While continuing to meet our customer commitments, increased spot market activity created a better balance between contractual and spot revenues. Contractual volumes represented approximately 65% of total load volume and 48% of total revenue in the current quarter compared to 75% and 64%, respectively, in third quarter 2016.

Operating income decreased 14% over the same period 2016. Gross profit margin was flat at 12.8% compared to the prior year as continued compression of gross margins in contractual business offset improvements in spot market gross margins. Higher year over year technology development costs and a higher number of branches open less than two years (23 vs.15) more than offset the increased revenue compared to a year ago. Total location count grew to 44 compared to 40 at the end of third quarter last year. ICS’s carrier base increased 10% and the employee count increased 17% vs. third quarter 2016.

Truck (JBT)

■Third Quarter 2017 Segment Revenue:    $ 93 million; down 5%

■Third Quarter 2017 Operating Income:    $ 5.7 million; up 12%

JBT revenue was down 5% from the same period in 2016. Revenue excluding fuel surcharge decreased 6%, primarily from a 7% decrease in load count from third quarter 2016. Revenue per load increased approximately 1% due to a 4% increase in rates per loaded mile offset by a 3% decrease in length of haul compared to a year ago. Comparable contractual customer rates were flat compared to the same period in 2016. At the end of the period, JBT operated 2,040 tractors compared to 2,183 a year ago.

Operating income increased 12% compared to third quarter 2016. Favorable changes from higher rates per loaded mile and lower insurance and claims costs were partially offset by increased driver wages and independent contractor costs per mile, a decrease in fleet size, lower tractor utilization from an increase in unseated trucks and higher equipment maintenance costs compared to third quarter 2016.

Cash Flow and Capitalization:

At September 30, 2017, we had a total of $1.08 billion outstanding on various debt instruments compared to $944 million at September 30, 2016 and $986 million at December 31, 2016.

Our net capital expenditures for the nine months ended September 30, 2017 approximated $330 million compared to $359 million for the same period 2016. At September 30, 2017, we had cash and cash equivalents of approximately $7.7 million. Other assets include approximately $55-$65 million of amortizable intangible assets related to the purchase of SLD.

We had no purchases of our common stock during the third quarter 2017. At September 30,2017, we had approximately $521 million remaining under our combined share repurchase authorizations. Actual shares outstanding at September 30, 2017 approximated 110 million.

This press release may contain 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, 2016. 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 additional information will be available immediately to interested parties on our web site, www.jbhunt.com.

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

	Three Months Ended September 30
	2017				2016
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	1,657,380			$	1,538,701
Fuel surcharge revenues		185,954				151,958
Total operating revenues		1,843,334		100.0%		1,690,659		100.0%
Operating expenses
Rents and purchased transportation		947,145		51.4%		846,238		50.1%
Salaries, wages and employee benefits		408,340		22.2%		374,517		22.2%
Depreciation and amortization		95,959		5.2%		91,001		5.4%
Fuel and fuel taxes		87,006		4.7%		74,179		4.4%
Operating supplies and expenses		67,578		3.7%		62,191		3.7%
Insurance and claims		26,463		1.4%		21,862		1.3%
General and administrative expenses, net of asset dispositions		29,389		1.6%		21,025		1.1%
Operating taxes and licenses		10,744		0.6%		11,665		0.7%
Communication and utilities		5,738		0.3%		5,004		0.3%
Total operating expenses		1,678,362		91.1%		1,507,682		89.2%
Operating income		164,972		8.9%		182,977		10.8%
Net interest expense		8,310		0.4%		6,485		0.4%
Earnings before income taxes		156,662		8.5%		176,492		10.4%
Income taxes		56,277		3.1%		67,067		3.9%
Net earnings	$	100,385		5.4%	$	109,425		6.5%
Average diluted shares outstanding		110,628				113,363
Diluted earnings per share	$	0.91			$	0.97

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

	Nine Months Ended September 30
	2017				2016
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	4,670,200			$	4,448,709
Fuel surcharge revenues		529,208				385,688
Total operating revenues		5,199,408		100.0%		4,834,397		100.0%
Operating expenses
Rents and purchased transportation		2,624,707		50.5%		2,381,547		49.3%
Salaries, wages and employee benefits		1,178,524		22.7%		1,108,997		22.9%
Depreciation and amortization		281,198		5.4%		269,717		5.6%
Fuel and fuel taxes		246,725		4.7%		205,082		4.2%
Operating supplies and expenses		190,085		3.7%		173,222		3.6%
Insurance and claims		76,930		1.5%		58,384		1.2%
General and administrative expenses, net of asset dispositions		74,597		1.4%		61,570		1.3%
Operating taxes and licenses		32,329		0.6%		34,156		0.7%
Communication and utilities		16,337		0.3%		15,063		0.3%
Total operating expenses		4,721,432		90.8%		4,307,738		89.1%
Operating income		477,976		9.2%		526,659		10.9%
Net interest expense		22,521		0.4%		19,347		0.4%
Earnings before income taxes		455,455		8.8%		507,312		10.5%
Income taxes		154,499		3.0%		192,778		4.0%
Net earnings	$	300,956		5.8%	$	314,534		6.5%
Average diluted shares outstanding		111,154				113,709
Diluted earnings per share	$	2.71			$	2.77

Financial Information By Segment

(in thousands)

(unaudited)

	Three Months Ended September 30
	2017					2016
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	1,048,187			57%	$	969,654			57%
Dedicated		437,521			24%		393,770			23%
Integrated Capacity Solutions		269,451			14%		233,022			14%
Truck		92,632			5%		97,154			6%
Subtotal		1,847,791			100%		1,693,600			100%
Intersegment eliminations		(4,457	)		(0%)		(2,941	)		(0%)
Consolidated revenue	$	1,843,334			100%	$	1,690,659			100%
Operating income
Intermodal	$	109,130			66%	$	116,885			64%
Dedicated		42,867			26%		52,463			28%
Integrated Capacity Solutions		7,291			4%		8,516			5%
Truck		5,713			4%		5,080			3%
Other (1)		(29	)		(0%)		33			0%
Operating income	$	164,972			100%	$	182,977			100%

	Nine Months Ended September 30
	2017					2016
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	2,986,746			57%	$	2,798,284			58%
Dedicated		1,241,899			24%		1,134,861			23%
Integrated Capacity Solutions		701,335			14%		619,956			13%
Truck		280,895			5%		291,468			6%
Subtotal		5,210,875			100%		4,844,569			100%
Intersegment eliminations		(11,467	)		(0%)		(10,172	)		(0%)
Consolidated revenue	$	5,199,408			100%	$	4,834,397			100%
Operating income
Intermodal	$	314,105			66%	$	325,625			62%
Dedicated		136,195			29%		147,700			28%
Integrated Capacity Solutions		11,520			2%		30,186			6%
Truck		16,216			3%		23,112			4%
Other (1)		(60	)		(0%)		36			0%
Operating income	$	477,976			100%	$	526,659			100%

(1) Includes corporate support activity

Operating Statistics by Segment

(unaudited)

	Three Months Ended September 30
	2017			2016
Intermodal
Loads		516,260			489,109
Average length of haul		1,685			1,662
Revenue per load	$	2,030		$	1,983
Average tractors during the period *		5,461			5,279
Tractors (end of period)
Company-owned		4,768			4,568
Independent contractor		773			714
Total tractors		5,541			5,282
Net change in trailing equipment during the period		1,724			1,578
Trailing equipment (end of period)		87,305			82,821
Average effective trailing equipment usage		86,622			79,107
Dedicated
Loads		655,881			607,876
Average length of haul		177			177
Revenue per truck per week**	$	4,196		$	4,120
Average trucks during the period***		8,105			7,357
Trucks (end of period)
Company-owned		7,792			6,936
Independent contractor		55			22
Customer-owned (Dedicated operated)		549			414
Total trucks		8,396			7,372
Trailing equipment (end of period)		24,524			22,391
Average effective trailing equipment usage		24,914			22,939
Integrated Capacity Solutions
Loads		236,796			239,399
Revenue per load	$	1,138		$	973
Gross profit margin		12.8	%		12.8	%
Employee count (end of period)		899			769
Approximate number of third-party carriers (end of period)		54,900			50,100
Truck
Loads		90,520			97,052
Average length of haul		437			453
Loaded miles (000)		39,516			43,865
Total miles (000)		47,292			52,317
Average nonpaid empty miles per load		86.0			87.2
Revenue per tractor per week**	$	3,524		$	3,468
Average tractors during the period *		2,055			2,162
Tractors (end of period)
Company-owned		1,340			1,384
Independent contractor		700			799
Total tractors		2,040			2,183
Trailers (end of period)		7,538			7,572
Average effective trailing equipment usage		7,099			7,083

* 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
	2017			2016
Intermodal
Loads		1,484,138			1,424,733
Average length of haul		1,680			1,648
Revenue per load	$	2,012		$	1,964
Average tractors during the period *		5,301			5,206
Tractors (end of period)
Company-owned		4,768			4,568
Independent contractor		773			714
Total tractors		5,541			5,282
Net change in trailing equipment during the period		2,711			3,864
Trailing equipment (end of period)		87,305			82,821
Average effective trailing equipment usage		85,719			75,702
Dedicated
Loads		1,888,770			1,794,432
Average length of haul		178			175
Revenue per truck per week**	$	4,156		$	4,021
Average trucks during the period***		7,737			7,280
Trucks (end of period)
Company-owned		7,792			6,936
Independent contractor		55			22
Customer-owned (Dedicated operated)		549			414
Total trucks		8,396			7,372
Trailing equipment (end of period)		24,524			22,391
Average effective trailing equipment usage		24,126			22,657
Integrated Capacity Solutions
Loads		714,923			614,334
Revenue per load	$	981		$	1,009
Gross profit margin		12.9	%		14.9	%
Employee count (end of period)		899			769
Approximate number of third-party carriers (end of period)		54,900			50,100
Truck
Loads		283,053			288,392
Average length of haul		435			460
Loaded miles (000)		123,080			132,562
Total miles (000)		147,227			157,526
Average nonpaid empty miles per load		86.1			86.6
Revenue per tractor per week**	$	3,484		$	3,432
Average tractors during the period*		2,103			2,202
Tractors (end of period)
Company-owned		1,340			1,384
Independent contractor		700			799
Total tractors		2,040			2,183
Trailers (end of period)		7,538			7,572
Average effective trailing equipment usage		7,165			6,846

* Includes company-owned and independent contractor tractors

** Using weighted workdays

*** Includes company-owned, independent contractor, and customer-owned trucks

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	September 30, 2017		December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	7,707	$	6,377
Accounts receivable		858,720		745,288
Prepaid expenses and other		140,164		194,016
Total current assets		1,006,591		945,681
Property and equipment		4,507,917		4,258,915
Less accumulated depreciation		1,632,108		1,440,124
Net property and equipment		2,875,809		2,818,791
Other assets		171,523		64,516
	$	4,053,923	$	3,828,988
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable	$	493,585	$	384,308
Claims accruals		117,645		109,745
Accrued payroll		47,514		51,929
Other accrued expenses		23,011		27,152
Total current liabilities		681,755		573,134
Long-term debt		1,084,801		986,278
Other long-term liabilities		68,564		64,881
Deferred income taxes		746,833		790,634
Stockholders' equity		1,471,970		1,414,061
	$	4,053,923	$	3,828,988

Supplemental Data

(unaudited)

	September 30, 2017		December 31, 2016
Actual shares outstanding at end of period (000)		109,752		111,305
Book value per actual share outstanding at end of period	$	13.41	$	12.70

	Nine Months Ended September 30
	2017		2016
Net cash provided by operating activities (000)	$	628,549	$	683,963
Net capital expenditures (000)	$	329,775	$	358,754