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 ANNOUNCES SECOND QUARTER 2000 OPERATING REVENUES AND
EARNINGS
Omaha, Nebraska, July 20, 2000:
------------------------------
Werner Enterprises, Inc. (Werner), one of the nation's largest
truckload transportation companies, today reported operating revenues
and earnings for the second quarter ended June 30, 2000. Operating
revenues for second quarter increased 18% to a record $307.2 million
compared to $260.6 million for the quarter ended June 30, 1999.
Earnings per share decreased to $.27 per share compared to $.37 per
share in second quarter 1999, due primarily to the high cost of fuel and
a weak market for the sale of used trucks.
"The current operating environment for truckload carriers is
challenging," said Chairman and Chief Executive Officer, Clarence (C.L.)
Werner. "On May 18, 2000, we announced that higher fuel prices and the
weak used truck market were affecting second quarter earnings. We have
temporarily slowed our fleet growth and are focusing on margin
improvement. Despite a slightly softer freight market during second
quarter 2000 compared to second quarter 1999, we maintained our average
miles per tractor and our low empty mile percentage. We have also had
success raising our freight rates."
<PAGE>
Fuel prices remained at levels approaching a ten-year high during
second quarter 2000. While the Company has made substantial progress
improving the percentage reimbursement from customers for the higher
cost of fuel, earnings were reduced in second quarter 2000 for the net
impact of higher fuel costs. Werner also incurs fuel costs for empty
miles between freight shipments, out-of-route miles caused in part by
driver home time needs, truck idling, and reimbursements to owner
operator drivers. During second quarter, the used truck market weakened
due to increased inventories of new and used trucks in the marketplace
and other factors. As a result, the number of trucks sold by the
Company and the average gain per truck sold was lower during second
quarter 2000. Earnings were reduced during second quarter 2000 by
approximately 10 cents per share due to the impact of fuel prices and
the used truck market.
"Werner Enterprises is committed to improving earnings growth and
shareholder value. The current challenges facing the truckload industry
are tremendous opportunities for our Company. Our size, superior
service, advanced technology, financial strength and experienced
management team provide Werner Enterprises with distinct competitive
advantages. We are excited and optimistic about the future of our
Company," said C.L. Werner.
Werner is one of six large transportation companies that merged
their logistics business units into a commonly owned, Internet-based
logistics company, Transplace.com. On July 13, 2000, Transplace.com
announced that operations commenced as scheduled on July 1, 2000. All
six founding carriers completed the conversion of their logistics
businesses effective on that date. This transaction was effected by
Werner and each of the five other founding carriers contributing their
transportation logistics business, related intangible assets, and $5
million of cash. Therefore, the revenues and expenses for Werner's
logistics business will no longer be shown in the Company's income
statements as operating revenues and operating expenses (primarily rent
and purchased transportation expense), respectively, beginning with
third quarter 2000. Werner will account for its approximate 15%
investment in Transplace.com using the equity method of accounting.
Thus, Werner will accrue its percentage share of the earnings of
Transplace.com in its income statement as a non-operating item.
Werner's logistics business, which will be transferred to
Transplace.com, accounted for approximately 4% of total revenues in
second quarter 2000.
<PAGE>
<TABLE>
<CAPTION>
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
6/30/00 Revenues 6/30/99 Revenues
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $307,242 100.0 $260,646 100.0
-------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 107,540 35.0 95,246 36.5
Fuel 31,839 10.4 18,211 7.0
Supplies and maintenance 26,327 8.6 21,025 8.1
Taxes and licenses 22,186 7.2 19,838 7.6
Insurance and claims 8,224 2.7 7,881 3.0
Depreciation 26,794 8.7 24,656 9.5
Rent and purchased
transportation 59,338 19.3 43,856 16.8
Communications and
utilities 3,475 1.1 3,411 1.3
Other (899) (0.3) (3,169) (1.2)
-------- --------- -------- ---------
Total operating
expenses 284,824 92.7 230,955 88.6
-------- --------- -------- ---------
Operating income 22,418 7.3 29,691 11.4
-------- --------- -------- ---------
Other expense (income):
Interest expense 1,978 0.6 1,645 0.6
Interest income (625) (0.2) (343) (0.1)
Other 235 0.1 40 0.0
-------- --------- -------- ---------
Total other expense 1,588 0.5 1,342 0.5
-------- --------- -------- ---------
Income before income taxes 20,830 6.8 28,349 10.9
Income taxes 7,915 2.6 10,773 4.1
-------- --------- -------- ---------
Net income $ 12,915 4.2 $ 17,576 6.7
======== ========= ======== =========
Diluted shares outstanding 47,304 47,627
======== ========
Diluted earnings per share $.27 $.37
======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Six
Months % of Months % of
Ended Operating Ended Operating
6/30/00 Revenues 6/30/99 Revenues
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $598,621 100.0 $501,626 100.0
-------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 210,852 35.2 184,567 36.8
Fuel 63,048 10.5 32,219 6.4
Supplies and maintenance 51,639 8.6 41,163 8.2
Taxes and licenses 43,648 7.3 39,604 7.9
Insurance and claims 15,204 2.5 17,271 3.4
Depreciation 53,115 8.9 48,191 9.6
Rent and purchased
transportation 116,365 19.4 86,183 17.2
Communications and
utilities 7,161 1.2 6,510 1.3
Other (3,364) (0.6) (5,016) (1.0)
-------- --------- -------- ---------
Total operating
expenses 557,668 93.2 450,692 89.8
-------- --------- -------- ---------
Operating income 40,953 6.8 50,934 10.2
-------- --------- -------- ---------
Other expense (income):
Interest expense 4,213 0.7 2,843 0.6
Interest income (1,072) (0.2) (673) (0.1)
Other 340 0.1 57 0.0
-------- --------- -------- ---------
Total other expense 3,481 0.6 2,227 0.5
-------- --------- -------- ---------
Income before income taxes 37,472 6.3 48,707 9.7
Income taxes 14,239 2.4 18,509 3.7
-------- --------- -------- ---------
Net income $ 23,233 3.9 $ 30,198 6.0
======== ========= ======== =========
Diluted shares outstanding 47,277 47,599
======== ========
Diluted earnings per share $.49 $.63
======== ========
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
6/30/00 12/31/99
-------- --------
<S> <C> <C>
Current assets $196,030 $188,827
Total assets $893,406 $896,879
Current liabilities $ 97,796 $121,206 *
Long-term debt $115,000 $120,000
Stockholders' equity $513,901 $494,772
</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 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 7,325
trucks and 19,200 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,
1999.
