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, 1999
----------------
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, 1999, the registrant issued a news release announcing
its operating revenues and earnings for the third quarter and nine months
ended September 30, 1999. 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, 1999.
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, 1999 By: /s/ John J. Steele
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
Date: October 19, 1999 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.
Executive Vice President and
Chief Operating Officer
(402) 894-3000
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
(402) 894-3000
WERNER ENTERPRISES REPORTS INCREASED THIRD QUARTER OPERATING REVENUES
AND EARNINGS
Omaha, Nebraska, October 14, 1999:
- ----------------------------------
Werner Enterprises, Inc. (Werner), one of the nation's largest
truckload transportation companies, today reported increased operating
revenues and earnings for the third quarter ended September 30, 1999.
Operating revenues rose 23% to $270.1 million compared to $219.7 million
in the third quarter of 1998. Earnings per share increased 9% to $.36
per diluted share in the third quarter 1999, compared to $.33 per
diluted share in the third quarter 1998.
Clarence L. Werner, Chairman and Chief Executive Officer, said, "We
achieved our third consecutive quarter of over 20 percent revenue
growth. This is the fourteenth consecutive quarter of year over year
earnings growth for Werner Enterprises. We are continuing to experience
strong demand from our customers. Even though the driver market remains
challenging, we are consistently exceeding our driver recruiting goals.
"At the beginning of 1999, we established a goal of adding 900
trucks for the year. We also established a goal of exceeding $1 billion
in revenues. I am pleased to report that Werner Enterprises met both
goals, three months early. For the first nine months of this year, we
added 925 trucks, a 20% annualized growth rate. For the twelve months
ended September 1999, revenues were $1.004 billion. Absent a
significant change in freight demand or the driver recruiting market, we
hope to continue this pace of growth in fourth quarter 1999 and the year
2000.
"Rising fuel prices impacted our operating margin this quarter.
The cost of fuel per gallon, excluding fuel taxes, was over 40% higher
in third quarter 1999 than third quarter 1998. Higher fuel prices in
third quarter 1999 reduced our earnings per share by approximately 6
cents. Throughout the quarter, we have been implementing customer fuel
surcharge programs with our revenue base."
<PAGE>
<TABLE>
<CAPTION>
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
9/30/99 Revenues 9/30/98 Revenues
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operating revenues $270,144 100.0 $219,715 100.0
--------- --------- --------- ---------
Operating expenses:
Salaries, wages and
benefits 97,830 36.2 83,421 37.9
Fuel 21,600 8.0 13,766 6.2
Supplies and maintenance 23,027 8.5 18,436 8.4
Taxes and licenses 20,467 7.6 17,075 7.8
Insurance and claims 7,040 2.6 5,523 2.5
Depreciation 25,415 9.4 20,604 9.4
Rent and purchased
transportation 45,382 16.8 34,278 15.6
Communications and
utilities 3,394 1.3 2,814 1.3
Other (2,852) (1.1) (2,701) (1.2)
--------- --------- --------- ---------
Total operating
expenses 241,303 89.3 193,216 87.9
--------- --------- --------- ---------
Operating income 28,841 10.7 26,499 12.1
--------- --------- --------- ---------
Other expense (income):
Interest expense 1,731 0.6 1,242 0.6
Interest income (355) (0.1) (446) (0.2)
Other 83 0.0 33 0.0
--------- --------- --------- ---------
Total other expense 1,459 0.5 829 0.4
--------- --------- --------- ---------
Income before income taxes 27,382 10.2 25,670 11.7
Income taxes 10,405 3.9 9,755 4.5
--------- --------- --------- ---------
Net income $16,977 6.3 $15,915 7.2
========= ========= ========= =========
Diluted shares outstanding 47,741 47,846
========= =========
Diluted earnings per share $.36 $.33
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nine Nine
Months % of Months % of
Ended Operating Ended Operating
9/30/99 Revenues 9/30/98 Revenues
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operating revenues $771,770 100.0 $631,100 100.0
--------- --------- --------- ---------
Operating expenses:
Salaries, wages and
benefits 282,397 36.6 237,403 37.6
Fuel 53,819 7.0 42,662 6.8
Supplies and maintenance 64,190 8.3 53,159 8.4
Taxes and licenses 60,071 7.8 49,606 7.9
Insurance and claims 24,311 3.2 18,146 2.9
Depreciation 73,606 9.5 60,435 9.6
Rent and purchased
transportation 131,565 17.0 100,470 15.9
Communications and
utilities 9,904 1.3 7,922 1.2
Other (7,868) (1.0) (8,387) (1.3)
--------- --------- --------- ---------
Total operating
expenses 691,995 89.7 561,416 89.0
--------- --------- --------- ---------
Operating income 79,775 10.3 69,684 11.0
--------- --------- --------- ---------
Other expense (income):
Interest expense 4,574 0.6 3,486 0.5
Interest income (1,028) (0.1) (1,296) (0.2)
Other 140 0.0 74 0.0
--------- --------- --------- ---------
Total other expense 3,686 0.5 2,264 0.3
--------- --------- --------- ---------
Income before income taxes 76,089 9.8 67,420 10.7
Income taxes 28,914 3.7 25,620 4.1
--------- --------- --------- ---------
Net income $47,175 6.1 $41,800 6.6
========= ========= ========= =========
Diluted shares outstanding 47,648 48,055
========= =========
Diluted earnings per share $.99 $.87
========= =========
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
9/30/99 12/31/98
--------- ---------
<S> <C> <C>
Current assets $185,402 $145,265
Total assets 875,646 769,196
Current liabilities 119,635 * 91,907
Long-term debt 120,000 100,000
Stockholders' equity 487,016 440,588
</TABLE>
* Current liabilities include $15 million of short-term debt at
September 30, 1999.
<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 7,075 trucks and 18,030 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 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,
1998.
