SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 14, 1998
WERNER ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
NEBRASKA 0-14690 47-0648386
(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) Number) Identification No.)
14507 FRONTIER ROAD
POST OFFICE BOX 45308
OMAHA, NEBRASKA 68145 (402)895-6640
(Address of principal (Zip Code) (Registrant's telephone number)
executive offices)
<PAGE>
ITEM 5. OTHER EVENTS.
On October 14, 1998, the registrant issued a news release announcing its
operating revenues and earnings for the third quarter ended September 30, 1998.
A copy of the news release is filed as an exhibit to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit 99.1 News release issued by the registrant on October 14, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WERNER ENTERPRISES, INC.
Date: October 19, 1998 By:/s/ John J. Steele
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
Date: October 19, 1998 By:/s/ James L. Johnson
James L. Johnson
Corporate Secretary
and Controller
EXHIBIT 99.1
WERNER ENTERPRISES, INC.
14507 Frontier Road
P. O. Box 45308
Omaha, Nebraska 68145
FOR IMMEDIATE RELEASE Contact: Robert E. Synowicki, Jr.
- --------------------- (402) 894-3000
WERNER ENTERPRISES REPORTS RECORD THIRD QUARTER
OPERATING REVENUES AND EARNINGS
Omaha, Nebraska, October 14, 1998:
- ---------------------------------
Werner Enterprises, Inc. (Werner), a nationwide truckload
transportation company, today reported record operating revenues and
earnings for the third quarter ended September 30, 1998. Operating
revenues rose to $219.7 million compared to $200.2 million in the third
quarter of 1997. Net income grew to $15.9 million ($.33 per diluted
share) in third quarter 1998 compared to $14.2 million (.30 per diluted
share) in third quarter 1997.
"We successfully attracted and retained drivers to expand our fleet
by 275 trucks during the quarter. A majority of our fleet growth
occurred during the latter part of the third quarter. That growth,
combined with strong demand for our services and lower fuel costs,
contributed to another solid quarter for Werner Enterprises," said C.L.
Werner, Chairman and Chief Executive Officer. Werner ended third
quarter 1998 with a fleet of 5,925 trucks.
For the fourth consecutive quarter, the Company lowered its
operating ratio (operating expenses divided by operating revenues) in
the quarter compared to the same quarter a year ago. The third quarter
1998 operating ratio was 87.9% compared to 88.5% in third quarter 1997.
Since July of this year, the Company has purchased 592,600 shares
of its common stock on the open market. Including purchases made in the
fourth quarter 1997, the Company has purchased 750,725 shares of its
common stock pursuant to the board of directors authorization of
2,500,000 shares.
<PAGE>
<TABLE>
<CAPTION>
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
9/30/98 Revenues 9/30/97 Revenues
-------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operating revenues $219,715 100.0 $200,237 100.0
--------- ------- --------- -------
Operating expenses:
Salaries, wages and
benefits 83,421 37.9 71,326 35.6
Fuel 13,766 6.2 16,060 8.0
Supplies and maintenance 18,436 8.4 16,588 8.3
Taxes and licenses 17,075 7.8 14,511 7.2
Insurance and claims 5,523 2.5 4,994 2.5
Depreciation 20,604 9.4 18,338 9.2
Rent and purchased
transportation 34,278 15.6 35,399 17.7
Communications and
utilities 2,814 1.3 2,123 1.1
Other (2,701) (1.2) (2,129) (1.1)
--------- ------- --------- -------
Total operating expenses 193,216 87.9 177,210 88.5
--------- ------- --------- -------
Operating income 26,499 12.1 23,027 11.5
--------- ------- --------- -------
Other expense (income):
Interest expense 1,242 0.6 926 0.5
Interest income (446) (0.2) (385) (0.2)
Other 33 0.0 24 0.0
--------- ------- --------- -------
Total other expense 829 0.4 565 0.3
--------- ------- --------- -------
Income before income taxes 25,670 11.7 22,462 11.2
Income taxes 9,755 4.5 8,263 4.1
--------- ------- --------- -------
Net income $ 15,915 7.2 $ 14,199 7.1
========= ======= ========= =======
Average common shares
outstanding 47,658 47,876
========= =========
Earnings per share $.33 $.30
========= =========
Diluted shares outstanding 47,846 48,125
========= =========
Diluted earnings per share $.33 $.30
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nine Nine
Months % of Months % of
Ended Operating Ended Operating
9/30/98 Revenues 9/30/97 Revenues
--------- -------- --------- --------
<S> <C> <C> <C> <C>
Operating revenues $631,100 100.0 $565,921 100.0
--------- ------- --------- -------
Operating expenses:
Salaries, wages and
benefits 237,403 37.6 205,234 36.3
Fuel 42,662 6.8 50,044 8.8
Supplies and maintenance 53,159 8.4 47,081 8.3
Taxes and licenses 49,606 7.9 42,438 7.5
Insurance and claims 18,146 2.9 16,245 2.9
Depreciation 60,435 9.6 53,562 9.5
Rent and purchased
transportation 100,470 15.9 96,051 17.0
Communications and
utilities 7,922 1.2 6,244 1.1
Other (8,387) (1.3) (5,507) (1.0)
--------- ------- --------- -------
Total operating expenses 561,416 89.0 511,392 90.4
--------- ------- --------- -------
Operating income 69,684 11.0 54,529 9.6
--------- ------- --------- -------
Other expense (income):
Interest expense 3,486 0.5 1,961 0.4
Interest income (1,296) (0.2) (1,099) (0.2)
Other 74 0.0 89 0.0
--------- ------- --------- -------
Total other expense 2,264 0.3 951 0.2
--------- ------- --------- -------
Income before income taxes 67,420 10.7 53,578 9.4
Income taxes 25,620 4.1 19,398 3.4
--------- ------- --------- -------
Net income $ 41,800 6.6 $ 34,180 6.0
========= ======= ========= =======
Average common shares
outstanding 47,786 47,698
========= =========
Earnings per share $.87 $.72
========= =========
Diluted shares outstanding 48,055 47,895
========= =========
Diluted earnings per share $.87 $.71
========= =========
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
9/30/98 12/31/97
-------- ---------
<S> <C> <C>
Current assets $138,325 $145,792
Total assets 722,093 667,638
Current liabilities 82,794 91,791
Long-term debt 80,000 60,000
Stockholders' equity 428,171 395,118
</TABLE>
<PAGE>
Werner Enterprises is a full-service transportation company
providing truckload and other transportation services throughout the 48
states, portions of Canada and Mexico. The Company was founded in 1956
by C.L. Werner. Werner is one of the nation's five largest truckload
carriers with a fleet of 5,925 trucks and 15,770 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.
--------------
Note: This press release may contain 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,
1997.
