J.B. Hunt Transport Services (JBHT) 8-K J.B. Hunt Transport Services, Inc. Reports Revenues, Net Earnings and Earnings

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 REVENUES, NET EARNINGS AND EARNINGS

PER SHARE FOR BOTH THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2019

■	Fourth quarter 2019 Revenue:	$2.45 billion; up 6%
■	Fourth quarter 2019 Operating Income:	$205.1 million; up 67%
■	Fourth quarter 2019 EPS:	$1.35 vs. $0.81; up 67%
■	Full Year 2019 Revenue:	$9.17 billion; up 6%
■	Full Year 2019 Operating Income:	$733.8 million; up 8%
■	Full Year 2019 EPS:	$4.75 vs. $4.43; up 7%

LOWELL, Ark., January 17, 2020 - J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced fourth quarter 2019 net earnings of $144.7 million, or diluted earnings per share of $1.35 vs. fourth quarter 2018 net earnings of $88.7 million, or $0.81 per diluted share. Fourth quarter 2018 net earnings included pretax charges of $134.0 million for contingent liabilities related to the arbitration with BNSF Railway Company.

Total operating revenue for the current quarter was $2.45 billion, compared with $2.32 billion for the fourth quarter 2018. A 2% increase in load volume in Intermodal (JBI), partially offset with a lower revenue per load, contributed to a less than 1% increase in segment revenue. Dedicated Contract Services (DCS) segment revenue increased by 20%, primarily from the February 2019 acquisition and the addition of new customer accounts. Integrated Capacity Solutions (ICS) segment revenue increased by 9% primarily from a 3% increase in load growth and a favorable change in customer freight mix. Truck (JBT) segment revenue decreased 20% primarily from lower loaded miles and lower rates per loaded mile. Current quarter total operating revenue, excluding fuel surcharges, increased approximately 7% vs. the comparable quarter 2018.

Total freight transactions in the Marketplace for J.B. Hunt 360° increased to $289 million compared to $174 million in the prior year quarter. ICS revenue on the platform increased to $225 million with an approximate 60% increase in average monthly active carrier users vs. the year ago period. JBI and JBT executed approximately $47 million and $17 million, respectively, of their third-party dray and independent contractor costs through the platform during the quarter.

Operating income for the current quarter totaled $205.1 million vs. $122.7 million for the fourth quarter 2018. Operating income in fourth quarter 2018 included $134.0 million in charges for contingent liabilities related to the arbitration with BNSF Railway Company. Excluding these charges, operating income decreased 20% from fourth quarter 2018. The benefit from increased revenues was offset with cost increases in rail purchase transportation rates; higher building rental expense in the Final Mile Services network; lower gross margins in ICS; increased technology spend on new applications, primarily in ICS, and legacy system upgrades affecting all segments; increased driver wages; increased driver and independent contractor recruiting costs and higher salary and wage expenses for non-driving personnel.

Interest expense increased from fourth quarter 2018 primarily from increased debt levels at higher interest rates. The fourth quarter effective tax rates for 2019 and 2018 were 24.8% and 20.5%, respectively. The annual effective tax rates for 2019 and 2018 were 24.2% and 23.6%, respectively.

Segment Information:

Intermodal (JBI)

■	Fourth quarter 2019 Segment Revenue:	$1.27 billion; flat
■	Fourth quarter 2019 Operating Income:	$131.1 million; up 304%

JBI total volumes increased 2% over the same period in 2018. Eastern network loads decreased by 8% and transcontinental loads grew by 8% compared to the fourth quarter 2018. Revenue increased less than one percent, reflecting the 2% increase in volume offset by a 1% decrease in revenue per load, the combination of freight mix, customer rate increases, and fuel surcharges. Revenue per load excluding fuel surcharges was flat compared to a year ago.

Operating income increased 304% from the prior year. In fourth quarter 2018, JBI recorded $134.0 million in charges for contingent liabilities related to the arbitration. Excluding these charges, operating income decreased by $35.3 million or approximately 21% from the comparable quarter 2018. Benefits from increased volumes were offset by higher rail purchase transportation rates, increased box repositioning costs due to a lack of balance in the intermodal network, increased costs to recover from rail service interruptions including a derailment in Southern California and increased costs to attract and retain drivers. The current period ended with approximately 96,700 units of trailing capacity and approximately 5,560 power units in the dray fleet.

Dedicated Contract Services (DCS)

■	Fourth quarter 2019 Segment Revenue:	$717 million; up 20%
■	Fourth quarter 2019 Operating Income:	$79.6 million; up 34%

DCS revenue increased 20% during the current quarter over the same period 2018. Productivity (revenue per truck per week) increased approximately 9% vs. 2018. Productivity excluding fuel surcharge revenue increased approximately 11% from a year ago primarily from the February 2019 acquisition, 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 $59 million (primarily from the February 2019 acquisition) compared to fourth quarter 2018. A net additional 972 revenue producing trucks, 153 net additions sequentially from third quarter 2019, were in the fleet by the end of the quarter. Approximately 58% of these additions represent private fleet conversions and 15% represent FMS versus traditional dedicated capacity fleets. Customer retention rates remain above 98%.

Operating income increased by 34% from a year ago. The benefits from additional trucks under contract, higher productivity and more predictable and consistent start-up costs were partially offset by increased costs expanding the FMS network, increased driver wages and increased driver recruiting costs and an incremental $1.0 million in noncash amortization expense attributable to the February 2019 acquisition compared to the same period a year ago.

Integrated Capacity Solutions (ICS)

■	Fourth Quarter 2019 Segment Revenue:	$377 million; up 9%
■	Fourth Quarter 2019 Operating Loss:	$(11.8 million); compared to $16.1 million Operating Income in 2018

ICS revenue increased 9% in the current quarter vs. the fourth quarter 2018. Volume increased 3% and revenue per load increased 5.5%, mostly due to customer mix changes, compared to the prior year. Contractual volumes represent approximately 73% of the total load volume and 65% of the total revenue in the current quarter compared to 71% and 53%, respectively, in fourth quarter 2018. Of the total reported ICS revenue, approximately $225 million was executed through the Marketplace for J.B. Hunt 360 compared to $174 million in fourth quarter 2018.

Operating income decreased $28.0 million compared to the same period in 2018 primarily from a lower gross profit margin, a 150% increase in expenditures to expand capacity and functionality of the Marketplace for J.B. Hunt 360, higher personnel costs, and increased digital marketing and advertising costs. Gross profit margin decreased to 10.6% in the current period from 16.9% last year primarily from a competitive pricing environment in the contractual business and a softer overall spot market. ICS carrier base increased 15% and the employee count increased 6% from a year ago.

Truck (JBT)

■	Fourth quarter 2019 Segment Revenue:	$94 million; down 20%
■	Fourth quarter 2019 Operating Income:	$6.3 million; down 57%

JBT revenue decreased 20% from the same period in 2018. Revenue excluding fuel surcharges also decreased approximately 21% primarily from an 11% decrease in rates per loaded mile and a 9% decrease in load count compared to a year ago. Comparable contractual customer rates were flat compared to the same period 2018. At the end of the period, JBT operated 1,831 tractors compared to 2,112 a year ago.

Operating income decreased 57% from fourth quarter 2018. A decrease in spot market loads moved, an increase in empty miles and an overall lower load count compared to fourth quarter 2018 all contributed to lower operating income.

Cash Flow and Capitalization:

At December 31, 2019, we had total debt outstanding of $1.30 billion on various debt instruments compared to $1.15 billion at December 31, 2018, and $1.29 billion at September 30, 2019.

Our net capital expenditures for 2019 approximated $688 million vs. $885 million in 2018. At December 31, 2019, we had cash and cash equivalents of $35 million.

In the fourth quarter 2019, we purchased approximately 441,000 shares of our common stock for approximately $50 million. At December 31, 2019, we had approximately $95 million remaining under our share repurchase authorization. Actual shares outstanding at December 31, 2019, approximated 106.2 million.

Conference Call Information:

The company will hold a conference call today at 9:00 a.m.–10:00 a.m. CST to discuss the quarterly earnings. To receive a dial-in number and personal access code, participants must register here. A replay of the call will be posted on its website later today.

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, 2018. 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 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 December 31
	2019				2018
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	2,168,497			$	2,033,674
Fuel surcharge revenues		281,826				284,168
Total operating revenues		2,450,323		100.0%		2,317,842		100.0%
Operating expenses
Rents and purchased transportation		1,246,130		50.9%		1,271,097		54.8%
Salaries, wages and employee benefits		561,507		22.9%		515,271		22.2%
Depreciation and amortization		128,418		5.2%		114,086		4.9%
Fuel and fuel taxes		118,269		4.8%		117,613		5.1%
Operating supplies and expenses		83,633		3.4%		77,178		3.3%
General and administrative expenses, net of asset dispositions		51,277		2.1%		51,191		2.3%
Insurance and claims		32,289		1.3%		26,941		1.2%
Operating taxes and licenses		14,345		0.6%		14,055		0.6%
Communication and utilities		9,381		0.4%		7,670		0.3%
Total operating expenses		2,245,249		91.6%		2,195,102		94.7%
Operating income		205,074		8.4%		122,740		5.3%
Net interest expense		12,776		0.6%		11,235		0.5%
Earnings before income taxes		192,298		7.8%		111,505		4.8%
Income taxes		47,622		1.9%		22,824		1.0%
Net earnings	$	144,676		5.9%	$	88,681		3.8%
Average diluted shares outstanding		107,529				109,940
Diluted earnings per share	$	1.35			$	0.81

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

	Twelve Months Ended December 31
	2019				2018
			% Of				% Of
	Amount		Revenue		Amount		Revenue
Operating revenues, excluding fuel surcharge revenues	$	8,122,600			$	7,557,648
Fuel surcharge revenues		1,042,658				1,057,226
Total operating revenues		9,165,258		100.0%		8,614,874		100.0%
Operating expenses
Rents and purchased transportation		4,528,812		49.4%		4,434,540		51.5%
Salaries, wages and employee benefits		2,167,851		23.7%		1,926,213		22.4%
Depreciation and amortization		499,145		5.4%		435,893		5.1%
Fuel and fuel taxes		463,195		5.1%		459,011		5.3%
Operating supplies and expenses		333,113		3.6%		303,529		3.5%
General and administrative expenses, net of asset dispositions		191,933		2.1%		163,270		1.8%
Insurance and claims		157,251		1.7%		129,406		1.5%
Operating taxes and licenses		55,336		0.6%		51,080		0.6%
Communication and utilities		34,797		0.4%		30,911		0.4%
Total operating expenses		8,431,433		92.0%		7,933,853		92.1%
Operating income		733,825		8.0%		681,021		7.9%
Net interest expense		52,930		0.6%		40,203		0.5%
Earnings before income taxes		680,895		7.4%		640,818		7.4%
Income taxes		164,575		1.8%		151,233		1.7%
Net earnings	$	516,320		5.6%	$	489,585		5.7%
Average diluted shares outstanding		108,599				110,428
Diluted earnings per share	$	4.75			$	4.43

Financial Information By Segment 

(in thousands)

(unaudited)

	Three Months Ended December 31
	2019					2018
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	1,267,142			52%	$	1,263,469			54%
Dedicated		716,940			29%		595,809			26%
Integrated Capacity Solutions		376,537			15%		345,400			15%
Truck		93,640			4%		117,707			5%
Subtotal		2,454,259			100%		2,322,385			100%
Intersegment eliminations		(3,936	)		(0%)		(4,543	)		(0%)
Consolidated revenue	$	2,450,323			100%	$	2,317,842			100%
Operating income
Intermodal	$	131,097			64%	$	32,445			27%
Dedicated		79,565			39%		59,416			48%
Integrated Capacity Solutions		(11,843	)		(6%)		16,142			13%
Truck		6,321			3%		14,737			12%
Other (1)		(66	)		0%		-			0%
Operating income	$	205,074			100%	$	122,740			100%

	Twelve Months Ended December 31
	2019					2018
				% Of					% Of
	Amount			Total		Amount			Total
Revenue
Intermodal	$	4,744,636			52%	$	4,716,649			55%
Dedicated		2,694,811			29%		2,163,155			25%
Integrated Capacity Solutions		1,348,336			15%		1,334,629			15%
Truck		389,301			4%		417,351			5%
Subtotal		9,177,084			100%		8,631,784			100%
Intersegment eliminations		(11,826	)		(0%)		(16,910	)		(0%)
Consolidated revenue	$	9,165,258			100%	$	8,614,874			100%
Operating income
Intermodal	$	447,479			61%	$	400,999			59%
Dedicated		268,579			37%		193,419			29%
Integrated Capacity Solutions		(11,088	)		(2%)		50,167			7%
Truck		29,046			40%		36,568			5%
Other (1)		(191	)		(0%)		(132	)		(0%)
Operating income	$	733,825			100%	$	681,021			100%

      (1) Includes corporate support activity

Operating Statistics by Segment

(unaudited)

	Three Months Ended December 31
	2019			2018
Intermodal
Loads		520,898			512,935
Average length of haul		1,707			1,660
Revenue per load	$	2,433		$	2,463
Average tractors during the period *		5,587			5,632
Tractors (end of period)
Company-owned		4,989			5,017
Independent contractor		570			633
Total tractors		5,559			5,650
Net change in trailing equipment during the period		54			1,750
Trailing equipment (end of period)		96,743			94,902
Average effective trailing equipment usage		92,571			91,785
Dedicated
Loads		945,907			808,043
Average length of haul		166			173
Revenue per truck per week**	$	5,128		$	4,715
Average trucks during the period***		11,019			9,914
Trucks (end of period)
Company-owned		10,542			9,652
Independent contractor		40			51
Customer-owned (Dedicated operated)		505			412
Total trucks		11,087			10,115
Trailing equipment (end of period)		28,118			26,710
Average effective trailing equipment usage		28,300			27,014
Integrated Capacity Solutions
Loads		328,060			317,512
Revenue per load	$	1,148		$	1,088
Gross profit margin		10.6	%		16.9	%
Employee count (end of period)		1,213			1,142
Approximate number of third-party carriers (end of period)		84,400			73,100
Marketplace for J.B. Hunt 360°:
Approximate carrier tractor count (end of period)		682,000			529,000
Revenue (millions)		225.5			174.4
Truck
Loads		86,891			95,747
Average length of haul		396			405
Loaded miles (000)		34,388			38,828
Total miles (000)		42,544			47,555
Average nonpaid empty miles per load		94.1			91.3
Revenue per tractor per week**	$	4,017		$	4,513
Average tractors during the period *		1,875			2,108
Tractors (end of period)
Company-owned		845			1,139
Independent contractor		986			973
Total tractors		1,831			2,112
Trailers (end of period)		6,975			6,800
Average effective trailing equipment usage		6,444			6,532

* Includes company-owned and independent contractor tractors

** Using weighted workdays

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

Operating Statistics by Segment

(unaudited)

	Twelve Months Ended December 31
	2019			2018
Intermodal
Loads		1,979,169			2,049,014
Average length of haul		1,679			1,648
Revenue per load	$	2,397		$	2,302
Average tractors during the period *		5,635			5,551
Tractors (end of period)
Company-owned		4,989			5,017
Independent contractor		570			633
Total tractors		5,559			5,650
Net change in trailing equipment during the period		1,841			6,262
Trailing equipment (end of period)		96,743			94,902
Average effective trailing equipment usage		86,836			88,739
Dedicated
Loads		3,615,580			2,981,344
Average length of haul		169			177
Revenue per truck per week**	$	4,895		$	4,534
Average trucks during the period***		10,725			9,264
Trucks (end of period)
Company-owned		10,542			9,652
Independent contractor		40			51
Customer-owned (Dedicated operated)		505			412
Total trucks		11,087			10,115
Trailing equipment (end of period)		28,118			26,710
Average effective trailing equipment usage		28,147			26,806
Integrated Capacity Solutions
Loads		1,243,992			1,234,632
Revenue per load	$	1,084		$	1,081
Gross profit margin		13.1	%		15.4	%
Employee count (end of period)		1,213			1,142
Approximate number of third-party carriers (end of period)		84,400			73,100
Marketplace for J.B. Hunt 360°:
Approximate carrier tractor count (end of period)		682,000			529,000
Revenue (millions)		839.8			557.8
Truck
Loads		346,459			355,038
Average length of haul		415			427
Loaded miles (000)		143,511			151,322
Total miles (000)		177,035			181,718
Average nonpaid empty miles per load		96.9			85.5
Revenue per tractor per week**	$	3,917		$	4,148
Average tractors during the period*		1,958			1,990
Tractors (end of period)
Company-owned		845			1,139
Independent contractor		986			973
Total tractors		1,831			2,112
Trailers (end of period)		6,975			6,800
Average effective trailing equipment usage		6,497			6,513

* 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)

	December 31, 2019		December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	35,000	$	7,600
Accounts Receivable		1,011,829		1,051,698
Prepaid expenses and other		434,470		443,683
Total current assets		1,481,299		1,502,981
Property and equipment		5,640,806		5,329,243
Less accumulated depreciation		2,019,940		1,884,132
Net property and equipment		3,620,866		3,445,111
Other assets, net		368,689		143,555
	$	5,470,854	$	5,091,647
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current debt	$	-	$	250,706
Trade accounts payable		602,601		709,736
Claims accruals		279,590		275,139
Accrued payroll		68,220		80,922
Other accrued expenses		85,355		35,845
Total current liabilities		1,035,766		1,352,348
Long-term debt		1,295,740		898,398
Other long-term liabilities		173,241		96,056
Deferred income taxes		699,078		643,461
Stockholders' equity		2,267,029		2,101,384
	$	5,470,854	$	5,091,647

Supplemental Data

(unaudited)

	December 31, 2019		December 31, 2018
Actual shares outstanding at end of period (000)		106,213		108,711
Book value per actual share outstanding at end of period	$	21.34	$	19.33

	Twelve Months Ended December 31
	2019		2018
Net cash provided by operating activities (000)	$	1,098,347	$	1,087,841
Net capital expenditures (000)	$	688,197	$	885,485