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):
January 20, 2000
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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 January 20, 2000, the registrant issued a news release announcing
its operating revenues and earnings for the fourth quarter and year ended
December 31, 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 January 20, 2000.
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: January 24, 2000 By: /s/ John J. Steele
---------------------- -----------------------------
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
Date: January 24, 2000 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 Information Officer
(402) 894-3000
John J. Steele
Vice President, Treasurer and
Chief Financial Officer
(402) 894-3000
WERNER ENTERPRISES REPORTS FOURTH QUARTER 1999 AND ANNUAL 1999
OPERATING REVENUES AND EARNINGS
Omaha, Nebraska, January 20, 2000
- ---------------------------------
Werner Enterprises, Inc. (Werner), one of the nation's largest
truckload transportation companies, today reported operating revenues
and earnings for the fourth quarter and year ended December 31, 1999.
Operating revenues for fourth quarter 1999 increased 21% to $280.6
million compared to $232.3 million in fourth quarter 1998. Earnings
per share decreased to $.27 per share in fourth quarter 1999 compared
to $.33 per share in fourth quarter 1998.
Operating revenues increased 22% to $1.052 billion for the full
year 1999 compared to $863.4 million in 1998. Earnings per share
increased to $1.26 per share for 1999 compared to $1.19 per share in
1998.
Clarence (C.L.) Werner, Chairman and Chief Executive Officer said
"We were pleased to exceed our growth goal of $1 billion in revenues in
1999. However, we are disappointed that earnings didn't keep pace with
the growth in revenues due primarily to the significant impact of high
fuel prices in the second half of the year. In November 1999, the
price per barrel of oil reached a nine-year high. On November 23, we
announced that higher fuel prices were affecting fourth quarter 1999
earnings. Fuel prices remained at high price levels and reduced our
earnings per share by approximately 10 cents for fourth quarter 1999
compared to fourth quarter 1998."
The average fuel price per gallon (excluding fuel taxes) was 70%
higher in fourth quarter 1999 compared to fourth quarter 1998. The
Company has implemented customer fuel surcharge reimbursement programs
to recover a portion of the higher fuel cost. However, a significant
<PAGE>
portion of the fuel expense increase is not being recovered. This is
due to several factors, including: the fuel price levels which
determine when surcharges are collected, unreimbursed empty miles
between freight shipments, unreimbursed out-of-route miles caused in
part by driver home time needs, and the unreimbursed costs of truck
idling. Management continues to meet with its customers to explain the
significant impact of high fuel prices and to improve the amount and
percentage of fuel surcharge reimbursement.
Customer freight demand remained strong throughout the fourth
quarter of 1999. However, the driver recruiting market became more
difficult.
The Company also announced the following management changes:
Robert Synowicki, Jr. has been promoted to the position of Executive
Vice President and Chief Information Officer. Gregory L. Werner
continues as President and has added the responsibility of Chief
Operating Officer. Mark A. Martin has been promoted from Senior Vice
President - Marketing to Executive Vice President - Marketing and
Operations. Daniel H. Cushman has been promoted from Vice President -
Sales to Senior Vice President - Van Division. We expect these
management changes will continue to successfully position Werner
Enterprises for the future.
Werner also announced that during fourth quarter 1999, its Werner
Logistics Services (WLS) division received formal notification of ISO
9002 certification. WLS provides transportation management services
for a variety of retail, manufacturing, and food products companies.
From 1995 when WLS was formed, non-trucking revenues (primarily
logistics) have grown to over $60 million annually. Logistics revenues
increased over 40% in 1999 compared to 1998.
During the fourth quarter of 1999, Werner Enterprises repurchased
302,600 shares of its common stock at an average cost of approximately
$13 per share. The Company's board of directors had previously
authorized the repurchase of up to 2,500,000 shares. As of December
31, 1999, the Company has repurchased a total of 1,053,325 shares in
1997, 1998, and 1999 pursuant to this authorization. From time to
time, the Company may continue to repurchase shares of its common
stock.
<PAGE>
<TABLE>
<CAPTION>
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
12/31/99 Revenues 12/31/98 Revenues
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $280,563 100.0 $232,317 100.0
-------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 100,427 35.8 88,256 38.0
Fuel 25,210 9.0 14,124 6.1
Supplies and maintenance 23,410 8.3 19,114 8.2
Taxes and licenses 22,018 7.9 18,301 7.9
Insurance and claims 7,417 2.6 5,729 2.5
Depreciation 26,349 9.4 22,114 9.5
Rent and purchased
transportation 53,564 19.1 38,556 16.6
Communications and
utilities 3,540 1.3 2,874 1.2
Other (3,798) (1.4) (2,678) (1.2)
-------- --------- -------- ---------
Total operating
expenses 258,137 92.0 206,390 88.8
-------- --------- -------- ---------
Operating income 22,426 8.0 25,927 11.2
-------- --------- -------- ---------
Other expense (income):
Interest expense 1,991 0.7 1,403 0.6
Interest income (379) (0.1) (428) (0.1)
Other 105 0.0 40 0.0
-------- --------- -------- ---------
Total other expense 1,717 0.6 1,015 0.5
-------- --------- -------- ---------
Income before income taxes 20,709 7.4 24,912 10.7
Income taxes 7,873 2.8 9,466 4.1
-------- --------- -------- ---------
Net income $12,836 4.6 $15,446 6.6
======== ========= ======== =========
Diluted shares outstanding 47,590 47,480
======== ========
Diluted earnings per share $.27 $.33
======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year % of Year % of
Ended Operating Ended Operating
12/31/99 Revenues 12/31/98 Revenues
---------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $1,052,333 100.0 $863,417 100.0
---------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 382,824 36.4 325,659 37.7
Fuel 79,029 7.5 56,786 6.6
Supplies and maintenance 87,600 8.3 72,273 8.4
Taxes and licenses 82,089 7.8 67,907 7.9
Insurance and claims 31,728 3.0 23,875 2.7
Depreciation 99,955 9.5 82,549 9.6
Rent and purchased
transportation 185,129 17.6 139,026 16.1
Communications and
utilities 13,444 1.3 10,796 1.2
Other (11,666) (1.1) (11,065) (1.3)
---------- --------- -------- ---------
Total operating
expenses 950,132 90.3 767,806 88.9
---------- --------- -------- ---------
Operating income 102,201 9.7 95,611 11.1
---------- --------- -------- ---------
Other expense (income):
Interest expense 6,565 0.6 4,889 0.6
Interest income (1,407) (0.1) (1,724) (0.2)
Other 245 0.0 114 0.0
---------- --------- -------- ---------
Total other expense 5,403 0.5 3,279 0.4
---------- --------- -------- ---------
Income before income taxes 96,798 9.2 92,332 10.7
Income taxes 36,787 3.5 35,086 4.1
---------- --------- -------- ---------
Net income $60,011 5.7 $57,246 6.6
========== ========= ======== =========
Diluted shares outstanding 47,631 47,910
========== ========
Diluted earnings per share $1.26 $1.19
========== ========
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
12/31/99 12/31/98
-------- --------
<S> <C> <C>
Current assets $188,827 $145,265
Total assets 896,879 769,196
Current liabilities 121,206 * 91,907
Long-term debt 120,000 100,000
Stockholders' equity 494,772 440,588
</TABLE>
* Current liabilities include $25 million of short-term debt at
December 31, 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 largest truckload
carriers with a fleet of 7,125 trucks and 18,900 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.
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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.
