Exhibit 99.1
WERNER ENTERPRISES, INC.
14507 Frontier Road
P. O. Box 45308
Omaha, Nebraska 68145
FOR IMMEDIATE RELEASE Contact: Robert E. Synowicki, Jr.
- --------------------- Executive Vice President and
Chief Information Officer
(402) 894-3000
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
(402) 894-3036
WERNER ENTERPRISES ANNOUNCES HIGHER FOURTH QUARTER 2001 OPERATING
REVENUES AND EARNINGS
Omaha, Nebraska, January 22, 2002:
- ---------------------------------
Werner Enterprises, Inc. (Nasdaq:WERN-news), one of the nation's
largest truckload transportation companies, today reported higher
operating revenues and earnings for the fourth quarter ended December
31, 2001. Operating revenues increased 3% to $320.5 million compared to
$311.4 million in fourth quarter 2000. Net income increased 10% to
$13.7 million compared to $12.5 million in fourth quarter 2000.
Earnings per share for fourth quarter 2001 were $.28 per share, or 8%
higher than the $.26 per share earned in fourth quarter 2000.
For the year, operating revenues of $1.271 billion in 2001 were 5%
higher than the $1.215 billion of operating revenues in 2000. Net
income decreased slightly to $47.7 million in 2001, compared to $48.0
million in 2000. Earnings per share decreased slightly to $.99 per
share, compared to the $1.02 per share in 2000.
"Earnings improvement continued in fourth quarter 2001 despite
difficult operating conditions," said Chairman and Chief Executive
Officer, Clarence (C.L.) Werner. "Disciplined execution of our
operating plan enabled Werner Enterprises to maintain its high equipment
utilization. Revenue per truck per week, net of fuel surcharge, was
$2,910, a 1% increase over our revenue per truck per week in fourth
quarter 2000. Recognizing that the economy was weaker in fourth quarter
2001 than fourth quarter 2000, I am pleased with the improvement in our
revenue per truck per week."
Freight demand remained soft throughout the quarter, compared to
the same period a year ago. Werner Enterprises continued to add or
replace freight to counter the impact of a weak economy. While business
inventory levels in the United States are at low levels, to date we have
not yet experienced a pickup in freight demand that would be expected to
replenish these inventories. As a result, we plan to continue growing
our fleet at a lower rate in the near term. However, we plan to
increase our growth rate when we see better returns.
Average diesel fuel prices were about 40 cents per gallon lower in
fourth quarter 2001, compared to the very high prices of fourth quarter
2000. However, current fuel prices are comparable to average prices
over the last ten years. In periods when fuel prices are high, the
Company collects fuel surcharge revenues to reimburse the Company for
the high cost of fuel. In periods when fuel prices decrease, such as
fourth quarter 2001, the Company's fuel surcharge revenues decrease.
Excluding lower fuel surcharge revenues, operating revenues grew 7% in
fourth quarter 2001 compared to fourth quarter 2000.
The truckload industry continues to face a combination of negative
trends that are causing weaker carriers to exit the market in record
numbers. The weakened value of used trucks, skyrocketing liability
insurance premiums, more restrictive equipment lending standards, and a
weaker economy are some of these significant trends. Trucking company
failures in 2001 are estimated to be about 4,000, more than double the
average annual rate of failures that occurred in the previous 15 years.
With regard to the weak used truck pricing market, in second
quarter 2001 we renegotiated our trade agreements with our primary truck
manufacturer. We have also been expanding our nationwide retail truck
sales network that has been a leading seller of used Company trucks for
ten years. The buying power of being a large purchaser of trucks
combined with our extensive retail truck sales network uniquely
positions Werner Enterprises to minimize the impact of a weak used truck
pricing market. The Company plans to continue its current truck
replacement cycle. As of December 31, 2001, the average age of our
company truck fleet is 1.5 years.
For over ten years, we have self-insured and managed virtually all
of our liability insurance claims with qualified Risk Department
professionals. As a result, higher liability insurance rates have had a
less significant effect on Werner Enterprises than on many other
carriers, impacting the Company only for catastrophic claim coverage.
Werner Enterprises renewed its annual catastrophic liability insurance
coverage effective August 1, 2001, and the effect of the increase in
premiums was less than 10% of the Company's total annual insurance and
claims expense. Industry sources have reported that other trucking
companies have experienced insurance increases of 50% to 100%. Some
carriers are reacting to these cost increases by reducing their
liability insurance coverage to lower coverage amounts, some as low as
the minimum allowable level prescribed by the U.S. Department of
Transportation of $750,000 per claim.
Over the past year, Werner Enterprises reduced its debt by $55
million, and our invested cash exceeds our only remaining debt. At the
same time, stockholders' equity has grown to $590 million. For 2001,
cash flow from operations was $226.9 million, or 33% higher than 2000.
Our strong financial position is increasingly important to customers and
employees.
"Werner Enterprises remains committed to improving earnings growth
and shareholder value. The current challenges facing the truckload
industry are tremendous opportunities for our Company. Our size,
excellent service, advanced technology, financial strength, and
experienced workforce provide Werner Enterprises with distinct
competitive advantages. We are excited and optimistic about the future
of our Company," said C.L. Werner.
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share amounts)
Quarter % of Quarter % of
Ended Operating Ended Operating
12/31/01 Revenues 12/31/00 Revenues
-------- -------- -------- --------
Operating revenues $320,547 100.0 $311,435 100.0
-------- -------- -------- --------
Operating expenses:
Salaries, wages and
benefits 118,477 37.0 109,690 35.2
Fuel 27,160 8.5 39,335 12.6
Supplies and maintenance 29,940 9.3 24,250 7.8
Taxes and licenses 23,829 7.4 22,915 7.4
Insurance and claims 10,428 3.3 9,020 2.9
Depreciation 28,935 9.0 28,181 9.0
Rent and purchased
transportation 53,884 16.8 51,949 16.7
Communications and
utilities 3,778 1.2 3,605 1.2
Other 1,400 0.4 1,665 0.5
-------- -------- -------- --------
Total operating
expenses 297,831 92.9 290,610 93.3
-------- -------- -------- --------
Operating income 22,716 7.1 20,825 6.7
-------- -------- -------- --------
Other expense (income):
Interest expense 760 0.2 1,913 0.6
Interest income (595) (0.2) (890) (0.3)
Other 559 0.2 (358) (0.1)
-------- -------- -------- --------
Total other expense 724 0.2 665 0.2
-------- -------- -------- --------
Income before income taxes 21,992 6.9 20,160 6.5
Income taxes 8,247 2.6 7,661 2.5
-------- -------- -------- --------
Net income $13,745 4.3 $12,499 4.0
======== ======== ======== ========
Diluted shares outstanding 48,576 47,252
======== ========
Diluted earnings per share $.28 $.26
======== ========
OPERATING STATISTICS
(Quarter Ended December 31)
Average monthly miles per
tractor 10,273 10,242
Average revenues per total
mile (1) $1.227 $1.222
Average revenues per loaded
mile (1) $1.360 $1.354
Average percentage of empty
miles 9.78% 9.74%
Average tractors in service 7,766 7,402
Average revenues per truck
per week (1) $2,910 $2,889
Non-trucking revenues (in
thousands) $20,091 $15,225
Total tractors (at quarter
end)
Company 6,640 6,300
Owner-operator 1,135 1,175
-------- --------
Total tractors 7,775 7,475
Total trailers (at quarter
end) 19,775 19,770
(1) Net of fuel surcharge revenues.
INCOME STATEMENT DATA
(In thousands, except per share amounts)
Year % of Year % of
Ended Operating Ended Operating
12/31/01 Revenues 12/31/00 Revenues
---------- -------- ---------- --------
Operating revenues $1,270,519 100.0 $1,214,628 100.0
---------- -------- ---------- --------
Operating expenses:
Salaries, wages and
benefits 457,433 36.0 429,825 35.4
Fuel 131,498 10.3 137,620 11.3
Supplies and maintenance 117,882 9.3 102,784 8.5
Taxes and licenses 93,628 7.4 89,126 7.3
Insurance and claims 41,946 3.3 34,147 2.8
Depreciation 116,043 9.2 109,107 9.0
Rent and purchased
transportation 214,336 16.9 216,917 17.9
Communications and
utilities 14,365 1.1 14,454 1.2
Other 4,059 0.3 (2,173) (0.2)
---------- -------- ---------- --------
Total operating
expenses 1,191,190 93.8 1,131,807 93.2
---------- -------- ---------- --------
Operating income 79,329 6.2 82,821 6.8
---------- -------- ---------- --------
Other expense (income):
Interest expense 3,775 0.3 8,169 0.7
Interest income (2,628) (0.2) (2,650) (0.3)
Other 1,791 0.1 (154) 0.0
---------- -------- ---------- --------
Total other expense 2,938 0.2 5,365 0.4
---------- -------- ---------- --------
Income before income taxes 76,391 6.0 77,456 6.4
Income taxes 28,647 2.2 29,433 2.4
---------- -------- ---------- --------
Net income $47,744 3.8 $48,023 4.0
========== ======== ========== ========
Diluted shares outstanding 48,110 47,257
========== ==========
Diluted earnings per share $0.99 $1.02
========== ==========
OPERATING STATISTICS
(Year Ended December 31)
Average monthly miles per
tractor 10,305 10,464
Average revenues per total
mile (1) $1.208 $1.197
Average revenues per loaded
mile (1) $1.342 $1.328
Average percentage of empty
miles 9.96% 9.88%
Average tractors in service 7,698 7,303
Average revenues per truck
per week (1) $2,874 $2,889
Non-trucking revenues (in
thousands) $74,001 $65,977
Total tractors (at year
end)
Company 6,640 6,300
Owner-operator 1,135 1,175
---------- ----------
Total tractors 7,775 7,475
Total trailers (at year
end) 19,775 19,770
(1) Net of fuel surcharge revenues.
BALANCE SHEET DATA
(In thousands)
As of As of
12/31/01 12/31/00
-------- --------
Cash and cash equivalents $74,366 $25,485
Current assets $236,067 $206,777
Total assets $964,014 $927,207
Current liabilities $152,257* $101,419
Total debt (current and
long-term) $50,000 $105,000
Stockholders' equity $590,049 $536,084
* Current liabilities include $30 million of debt which matures in
November 2002.
Werner Enterprises is a full-service transportation company
providing truckload 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 carriers with a fleet of 7,775
trucks and 19,775 trailers.
Werner Enterprises' common stock is traded on The Nasdaq Stock
Market under the symbol WERN. The Werner Enterprises web site address
is www.werner.com. If you are interested in keeping up to date on the
Company's news releases or SEC filings, you can obtain automatic
Internet e-mail alerts by going to www.werner.com, clicking on Investor
Relations (upper right hand corner), clicking on e-mail alerts (lower
left hand corner), entering your e-mail address, and completing the
registration information.
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,
2000. 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.