J.B. Hunt Transport Services (JBHT) 8-K J.B. Hunt Transport Services, Inc. Reports Earnings for the Third Quarter 2018 and Schedules Conference Call

Exhibit 99.1

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

FOR IMMEDIATE RELEASE

J.B. HUNT TRANSPORT SERVICES, INC. REPORTS EARNINGS FOR THE THIRD QUARTER 2018 AND SCHEDULES CONFERENCE CALL

■	Third Quarter 2018 Revenue:	$2.21 billion; up 20%
■	Third Quarter 2018 Operating Income:	$174.7 million; up 6%
■	Third Quarter 2018 EPS:	$1.19 vs. 91 cents

LOWELL, ARKANSAS, October 15, 2018 - J.B. Hunt Transport Services, Inc., (NASDAQ:JBHT) announced third quarter 2018 net earnings of $131.1 million, or diluted earnings per share of $1.19 vs. third quarter 2017 net earnings of $100.4 million, or 91 cents per diluted share. Included in the current quarter results are the pre-announced after-tax charges of $31.1 million or 28 cents per share.

Total operating revenue for the current quarter was $2.21 billion, compared with $1.84 billion for the third quarter 2017. A revenue per load increase of 15% in Intermodal (JBI), a 15% increase in revenue producing trucks and an increase of 7% in asset productivity in Dedicated Contract Services (DCS), a 41% increase in load growth in Integrated Capacity Solutions (ICS) and a 19% increase in rates per loaded mile in Truck (JBT). Current quarter total operating revenue, excluding fuel surcharges, increased 17% vs. the comparable quarter 2017.

Operating income for the current quarter totaled $174.7 million vs. $165 million for the third quarter 2017. Operating income increased from third quarter 2017 primarily from customer rate increases partially offset by increases in driver wages and recruiting costs, higher than normal implementation expenses for new long term DCS contracts, increased rail purchase transportation and third party dray rates, increased technology spend on new applications and legacy operating systems as well as the $39 million in pre-announced charges reflected in increased rail purchase transportation expense, insurance and claims costs and bad debt expense.

Interest expense in the current quarter increased primarily from higher debt balances, higher interest rates and costs to refinance our revolving line of credit compared to third quarter 2017. The effective income tax rate for the current quarter is 20.4%, which includes discrete tax benefits related to vesting of equity compensation awards and the statute expiration of uncertain tax positions. The tax rate was 35.9% in the third quarter 2017. We expect our 2018 annual tax rate to be approximately 24%.

Segment Information:

Intermodal (JBI)

■	Third Quarter 2018 Segment Revenue:	$1.22 billion; up 16%
■	Third Quarter 2018 Operating Income:	$120.3 million; up 10%

Overall volumes increased 1% over the same period in 2017. The Eastern network realized load growth of 9.5% while Transcontinental loads declined 5% compared to the third quarter 2017. The network disruption caused from five major derailments in our national intermodal network and the service disruption from hurricane Florence combined to limit our ability to handle approximately 4,000 loads in the current period. Revenue increased 16% reflecting the 1% volume growth and an approximate 15% 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 increased approximately 12% compared to third quarter 2017.

Operating income increased 10% over prior year. Benefits from customer rate increases were partially offset by increased costs to attract, place and retain drivers; increases in costs from inefficiencies due to rail congestion including additional third-party dray expense; $18.3 million of the pre-announced increase in rail purchase transportation costs; $8.6 million of the pre-announced charge to insurance and claims expense and $0.4 million of the pre-announced charge due to a customer bankruptcy. The current period ended with approximately 93,000 units of trailing capacity and 5,600 power units assigned to the dray fleet.

Dedicated Contract Services (DCS)

■	Third Quarter 2018 Segment Revenue:	$543 million; up 24%
■	Third Quarter 2018 Operating Income:	$35.0 million; down 18%

DCS revenue increased 24% during the current quarter over the same period in 2017. Productivity (revenue per truck per week) increased by approximately 7% vs. 2017. Productivity excluding fuel surcharge revenue increased approximately 4% from a year ago primarily from customer rate increases, improved integration of assets between customer accounts and increased customer supply chain fluidity. Included in the DCS revenue growth, Final Mile Services (FMS) recorded an increase in revenue of $23 million (including approximately $10.3 million from the July 2017 acquisition) compared to the third quarter 2017. A net additional 1,261 revenue producing trucks, 598 net additions sequentially from second quarter 2018, were in the fleet by the end of the quarter. Approximately 42% of these additions represent private fleet conversions and 5% represent FMS versus traditional dedicated capacity services. Customer retention rates remain above 98%.

Operating income decreased by 18% from a year ago primarily from $8.4 million of the pre-announced charge to insurance and claims costs, approximately $4 million in implementation costs for new contracts in the early stages of operations, increased costs to expand the FMS network, increased driver wages and recruiting costs including the length of time to fill open trucks and increased salaries and benefits costs.

Integrated Capacity Solutions (ICS)

■	Third Quarter 2018 Segment Revenue:	$346 million; up 28%
■	Third Quarter 2018 Operating Income:	$10.2 million; up 40%

ICS revenue increased 28% in the current quarter vs. the third quarter 2017. Volumes increased 41% while revenue per load decreased approximately 9% primarily due to an increased mix of contractual less-than-truckload volume compared to third quarter 2017. Total contractual volumes represented approximately 72% of total load volume and 49% of total revenue in the current period compared to 65% and 48%, respectively, in the third quarter 2017. Of the total reported ICS revenue, approximately $151 million was executed through the marketplace for J.B. Hunt 360 compared to $137 million in the second quarter 2018.

Operating income increased 40% over the same period 2017 primarily from a higher gross profit margin percentage and improved operating leverage in branches open more than two years. Gross profit margin increased to 15.5% in the current quarter vs. 12.8% compared to the prior year. Improvements in gross profit margins were partially offset by $2.2 million of the pre-announced charge due to a customer bankruptcy and approximately $0.8 million of the pre-announced charge in insurance and claims costs, higher personnel costs and increased technology development costs as the marketplace for J.B. Hunt 360 continues growth and adds additional functionality. Total location count decreased to 43 in the current period from 44 in 2017 as two locations were consolidated. ICS’s carrier base increased 26% and the employee count increased 26% vs. third quarter 2017.

Truck (JBT)

■	Third Quarter 2018 Segment Revenue:	$106 million; up 14%
■	Third Quarter 2018 Operating Income:	$9.2 million; up 61%

JBT revenue increased 14% from the same period in 2017. Revenue excluding fuel surcharge increased approximately 13%, primarily from a 19% increase in rates per loaded mile offset by a 5% decrease in length of haul compared to a year ago. Comparable contractual customer rates increased approximately 13% compared to the same period in 2017. At the end of the period, JBT operated 1,972 tractors compared to 2,040 a year ago.

Operating income increased 61% compared to third quarter 2017. Favorable changes from higher rates per loaded mile and lower equipment ownership costs were partially offset by $0.3 million of the pre-announced charge to insurance and claims expense, increased driver wages and independent contractor costs per mile and higher driver and independent contractor recruiting costs compared to third quarter 2017.

Cash Flow and Capitalization:

At September 30, 2018, we had a total of $1.07 billion outstanding on various debt instruments compared to $1.08 billion at September 30, 2017 and $1.09 billion at December 31, 2017.

Our net capital expenditures for the nine months ended September 30, 2018 approximated $585 million compared to $315 million for the same period 2017. At September 30, 2018, we had cash and cash equivalents of approximately $7.6 million.

We purchased approximately 422,000 shares of our common stock during the third quarter 2018 for approximately $50 million. At September 30, 2018, we had approximately $421 million remaining under our share repurchase authorization. Actual shares outstanding at September 30, 2018 approximated 109.2 million.

Conference Call Information:

The Company will hold a conference call today at 4:30-6:00 pm Central to discuss the quarterly earnings. The call-in number for participants is (866) 439-5964 and a replay of the call will be posted on its website www.jbhunt/investors within two hours following the call.

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, 2017. 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
	2018					2017
			% Of					% Of
	Amount		Revenue			Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	1,936,653				$	1,657,380
Fuel surcharge revenues		273,107					185,954
Total operating revenues		2,209,760		100.0	%		1,843,334		100.0	%
Operating expenses
Rents and purchased transportation		1,125,386		50.9	%		947,145		51.4	%
Salaries, wages and employee benefits		495,350		22.4	%		408,340		22.2	%
Fuel and fuel taxes		117,976		5.3	%		87,006		4.7	%
Depreciation and amortization		108,801		4.9	%		95,959		5.2	%
Operating supplies and expenses		79,225		3.6	%		67,578		3.7	%
General and administrative expenses, net of asset dispositions		42,449		1.9	%		29,389		1.6	%
Insurance and claims		45,594		2.1	%		26,463		1.4	%
Operating taxes and licenses		13,203		0.7	%		10,744		0.6	%
Communication and utilities		7,088		0.3	%		5,738		0.3	%
Total operating expenses		2,035,072		92.1	%		1,678,362		91.1	%
Operating income		174,688		7.9	%		164,972		8.9	%
Net interest expense		9,961		0.5	%		8,310		0.4	%
Earnings before income taxes		164,727		7.4	%		156,662		8.5	%
Income taxes		33,617		1.5	%		56,277		3.1	%
Net earnings	$	131,110		5.9	%	$	100,385		5.4	%
Average diluted shares outstanding		110,235					110,628
Diluted earnings per share	$	1.19				$	0.91

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

	Nine Months Ended September 30
	2018					2017
			% Of					% Of
	Amount		Revenue			Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	5,523,974				$	4,670,200
Fuel surcharge revenues		773,058					529,208
Total operating revenues		6,297,032		100.0	%		5,199,408		100.0	%
Operating expenses
Rents and purchased transportation		3,163,443		50.2	%		2,624,707		50.5	%
Salaries, wages and employee benefits		1,410,942		22.4	%		1,178,524		22.7	%
Fuel and fuel taxes		341,398		5.4	%		246,725		4.7	%
Depreciation and amortization		321,807		5.1	%		281,198		5.4	%
Operating supplies and expenses		226,352		3.6	%		190,085		3.7	%
General and administrative expenses, net of asset dispositions		112,078		1.8	%		74,597		1.4	%
Insurance and claims		102,464		1.6	%		76,930		1.5	%
Operating taxes and licenses		37,025		0.6	%		32,329		0.6	%
Communication and utilities		23,241		0.4	%		16,337		0.3	%
Total operating expenses		5,738,750		91.1	%		4,721,432		90.8	%
Operating income		558,282		8.9	%		477,976		9.2	%
Net interest expense		28,969		0.5	%		22,521		0.4	%
Earnings before income taxes		529,313		8.4	%		455,455		8.8	%
Income taxes		128,409		2.0	%		154,499		3.0	%
Net earnings	$	400,904		6.4	%	$	300,956		5.8	%
Average diluted shares outstanding		110,591					111,154
Diluted earnings per share	$	3.63				$	2.71

Financial Information By Segment 

(in thousands)

(unaudited)

	Three Months Ended September 30
	2018						2017
				% Of						% Of
	Amount			Total			Amount			Total
Revenue
Intermodal	$	1,218,408			55	%	$	1,048,187			57	%
Dedicated		542,884			24	%		437,521			24	%
Integrated Capacity Solutions		345,830			16	%		269,451			14	%
Truck		105,685			5	%		92,632			5	%
Subtotal		2,212,807			100	%		1,847,791			100	%
Intersegment eliminations		(3,047	)		(0	%)		(4,457	)		(0	%)
Consolidated revenue	$	2,209,760			100	%	$	1,843,334			100	%
Operating income
Intermodal	$	120,319			69	%	$	109,130			66	%
Dedicated		34,990			20	%		42,867			26	%
Integrated Capacity Solutions		10,216			6	%		7,291			4	%
Truck		9,218			5	%		5,713			4	%
Other (1)		(55	)		(0	%)		(29	)		(0	%)
Operating income	$	174,688			100	%	$	164,972			100	%

	Nine Months Ended September 30
	2018						2017
				% Of						% Of
	Amount			Total			Amount			Total
Revenue
Intermodal	$	3,453,180			55	%	$	2,986,746			57	%
Dedicated		1,567,346			25	%		1,241,899			24	%
Integrated Capacity Solutions		989,230			15	%		701,335			14	%
Truck		299,644			5	%		280,895			5	%
Subtotal		6,309,400			100	%		5,210,875			100	%
Intersegment eliminations		(12,368	)		(0	%)		(11,467	)		(0	%)
Consolidated revenue	$	6,297,032			100	%	$	5,199,408			100	%
Operating income
Intermodal	$	368,554			66	%	$	314,105			66	%
Dedicated		134,003			24	%		136,195			29	%
Integrated Capacity Solutions		34,026			6	%		11,520			2	%
Truck		21,832			4	%		16,216			3	%
Other (1)		(133	)		(0	%)		(60	)		(0	%)
Operating income	$	558,282			100	%	$	477,976			100	%

(1)    Includes corporate support activity

Operating Statistics by Segment

(unaudited)

	Three Months Ended September 30
	2018			2017
Intermodal
Loads		519,974			516,260
Average length of haul		1,636			1,685
Revenue per load	$	2,343		$	2,030
Average tractors during the period *		5,582			5,461
Tractors (end of period)
Company-owned		4,969			4,768
Independent contractor		631			773
Total tractors		5,600			5,541
Net change in trailing equipment during the period		2,577			1,724
Trailing equipment (end of period)		93,152			87,305
Average effective trailing equipment usage		89,456			85,910
Dedicated
Loads		753,814			655,881
Average length of haul		174			177
Revenue per truck per week**	$	4,504		$	4,196
Average trucks during the period***		9,331			8,105
Trucks (end of period)
Company-owned		9,182			7,792
Independent contractor		56			55
Customer-owned (Dedicated operated)		419			549
Total trucks		9,657			8,396
Trailing equipment (end of period)		26,116			24,524
Average effective trailing equipment usage		26,600			24,914
Integrated Capacity Solutions
Loads		334,321			236,796
Revenue per load	$	1,034		$	1,138
Gross profit margin		15.5	%		12.8	%
Employee count (end of period)		1,137			899
Approximate number of third-party carriers (end of period)		69,000			54,900
Truck
Loads		89,491			90,520
Average length of haul		417			437
Loaded miles (000)		37,348			39,516
Total miles (000)		44,850			47,292
Average nonpaid empty miles per load		83.7			86.0
Revenue per tractor per week**	$	4,366		$	3,524
Average tractors during the period *		1,904			2,055
Tractors (end of period)
Company-owned		1,136			1,340
Independent contractor		836			700
Total tractors		1,972			2,040
Trailers (end of period)		6,818			7,538
Average effective trailing equipment usage		6,462			7,099

* 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
	2018			2017
Intermodal
Loads		1,536,079			1,484,138
Average length of haul		1,644			1,680
Revenue per load	$	2,248		$	2,012
Average tractors during the period *		5,524			5,301
Tractors (end of period)
Company-owned		4,969			4,768
Independent contractor		631			773
Total tractors		5,600			5,541
Net change in trailing equipment during the period		4,542			2,711
Trailing equipment (end of period)		93,152			87,305
Average effective trailing equipment usage		87,724			81,451
Dedicated
Loads		2,173,301			1,888,770
Average length of haul		178			178
Revenue per truck per week**	$	4,471		$	4,156
Average trucks during the period***		9,048			7,737
Trucks (end of period)
Company-owned		9,182			7,792
Independent contractor		56			55
Customer-owned (Dedicated operated)		419			549
Total trucks		9,657			8,396
Trailing equipment (end of period)		26,116			24,524
Average effective trailing equipment usage		26,736			24,126
Integrated Capacity Solutions
Loads		917,120			714,923
Revenue per load	$	1,079		$	981
Gross profit margin		14.9	%		12.9	%
Employee count (end of period)		1,137			899
Approximate number of third-party carriers (end of period)		69,000			54,900
Truck
Loads		259,290			283,053
Average length of haul		434			435
Loaded miles (000)		112,494			123,080
Total miles (000)		134,163			147,227
Average nonpaid empty miles per load		83.6			86.1
Revenue per tractor per week**	$	4,023		$	3,484
Average tractors during the period*		1,950			2,103
Tractors (end of period)
Company-owned		1,136			1,340
Independent contractor		836			700
Total tractors		1,972			2,040
Trailers (end of period)		6,818			7,538
Average effective trailing equipment usage		6,506			7,165

* 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, 2018		December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	7,587	$	14,612
Accounts receivable		1,095,638		920,767
Prepaid expenses and other		239,257		403,349
Total current assets		1,342,482		1,338,728
Property and equipment		5,064,126		4,670,464
Less accumulated depreciation		1,822,619		1,687,133
Net property and equipment		3,241,507		2,983,331
Other assets		137,682		143,290
	$	4,721,671	$	4,465,349
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt	$	248,680	$	-
Trade accounts payable		569,453		598,594
Claims accruals		279,136		251,980
Accrued payroll		74,802		42,382
Other accrued expenses		40,589		28,888
Total current liabilities		1,212,660		921,844
Long-term debt		820,864		1,085,649
Other long-term liabilities		89,141		76,661
Deferred income taxes		518,428		541,870
Stockholders' equity		2,080,578		1,839,325
	$	4,721,671	$	4,465,349

Supplemental Data

(unaudited)

	September 30, 2018		December 31, 2017
Actual shares outstanding at end of period (000)		109,176		109,753
Book value per actual share outstanding at end of period	$	19.06	$	16.76

	Nine Months Ended September 30
	2018		2017
Net cash provided by operating activities (000)	$	777,603	$	628,549
Net capital expenditures (000)	$	584,977	$	314,838