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 THIRD QUARTER 2000 OPERATING REVENUES AND
EARNINGS
Omaha, Nebraska, October 17, 2000:
---------------------------------
Werner Enterprises, Inc. (Werner), one of the nation's largest
truckload transportation companies, today reported operating revenues
and earnings for the third quarter ended September 30, 2000. Operating
revenues for third quarter increased 13% to $304.6 million compared to
$270.1 million for the quarter ended September 30, 1999. Earnings per
share decreased to $.26 per share compared to $.36 per share in third
quarter 1999, due primarily to the high cost of fuel, a weak market for
the sale of used trucks, and a slightly softer freight environment.
"The operating environment for truckload carriers became
increasingly difficult in third quarter," said Chairman and Chief
Executive Officer, Clarence (C.L.) Werner. "While Werner Enterprises is
not immune to these macro industry trends, we are taking steps to lessen
their effect on our business and our earnings. In the short run, these
factors make it challenging for all trucking companies. In the long
run, the current operating environment may create opportunities for
larger, financially-stable carriers like Werner Enterprises."
<PAGE>
During third quarter 2000, the average price per gallon of diesel
fuel, excluding fuel taxes, increased another 13% over the price paid in
second quarter 2000. Further, third quarter 2000 prices were
approximately 50% higher than the price paid in third quarter 1999.
Werner Enterprises has made significant improvement in fuel surcharge
reimbursements from customers for the higher cost of fuel. However,
Werner Enterprises is continuing to work with its customers on these
reimbursement programs. Werner incurs unreimbursed 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.
Other industry factors affecting the company's business include the
weak used truck market and a slightly softer freight environment. Due
to record levels of trucks manufactured over the past two years, an
increased supply of used trucks caused in part by business failures, and
slower fleet growth by many carriers, the pricing for used trucks has
decreased.
Freight demand during much of third quarter 2000 was slightly less
than anticipated, when compared to the same period a year ago. The
Company experienced a small increase in its empty mile percentage and a
small decrease in miles per truck when compared to the third quarter
1999. However, due in part to Werner's diversified freight base, the
Company's low empty mile percentage and high miles per truck remain
among the best in the industry.
Over the past several months, Werner Enterprises has increased its
focus on margin improvement and debt reduction. Revenue per mile, net
of fuel surcharge revenues, increased 4%, year over year. Progress has
been achieved this quarter through the reduction of controllable costs
and improved efficiency. Over the last nine months, the Company has
improved its financial strength as total debt has been reduced from $145
million to $115 million, while stockholders' equity has increased from
$495 million to $525 million. Until market conditions improve, the
Company anticipates growing its fleet at a slower rate. However, when
market conditions improve, the Company intends to increase its growth
rate.
The Company's revenues in third quarter 2000 were reduced by
approximately 4% due to transferring its logistics business units to
Transplace.com. Werner Enterprises is one of six large transportation
companies that merged their logistics business into a commonly owned,
Internet-based logistics company, Transplace.com. Effective July 1,
2000, the transfer was completed, and each of the six founding members
contributed their logistics business, related intangible assets, and $5
million of cash. Werner Enterprises is recording its approximate 15%
investment in Transplace.com using the equity method of accounting and
is accruing its percentage share of Transplace.com's earnings as non-
operating income.
"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, excellent
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.
<PAGE>
<TABLE>
<CAPTION>
INCOME STATEMENT DATA
(Unaudited)
(In thousands)
Quarter % of Quarter % of
Ended Operating Ended Operating
9/30/00 Revenues 9/30/99 Revenues
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $304,572 100.0 $270,144 100.0
-------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 109,283 35.9 97,830 36.2
Fuel 35,237 11.6 21,600 8.0
Supplies and maintenance 26,895 8.8 23,027 8.5
Taxes and licenses 22,563 7.4 20,467 7.6
Insurance and claims 9,923 3.3 7,040 2.6
Depreciation 27,811 9.1 25,415 9.4
Rent and purchased
transportation 48,603 16.0 45,382 16.8
Communications and
utilities 3,688 1.2 3,394 1.3
Other (474) (0.2) (2,852) (1.1)
-------- --------- -------- ---------
Total operating
expenses 283,529 93.1 241,303 89.3
-------- --------- -------- ---------
Operating income 21,043 6.9 28,841 10.7
-------- --------- -------- ---------
Other expense (income):
Interest expense 2,043 0.7 1,731 0.6
Interest income (688) (0.2) (355) (0.1)
Other (136) (0.1) 83 0.0
-------- --------- -------- ---------
Total other expense 1,219 0.4 1,459 0.5
-------- --------- -------- ---------
Income before income taxes 19,824 6.5 27,382 10.2
Income taxes 7,533 2.5 10,405 3.9
-------- --------- -------- ---------
Net income $ 12,291 4.0 $16,977 6.3
======== ========= ======== =========
Diluted shares outstanding 47,191 47,741
======== ========
Diluted earnings per share $.26 $.36
======== ========
Average monthly miles per
tractor 10,467 10,550
Average revenues per total
mile(1) $1.204 $1.164
Average revenues per loaded
mile(1) $1.339 $1.290
Average tractors in service 7,410 6,949
Total tractors (at quarter
end)
Company 6,225 5,845
Owner-operator 1,200 1,230
-------- --------
Total tractors 7,425 7,075
Total trailers (at quarter
end) 19,620 18,030
</TABLE>
(1) Net of fuel surcharge revenues.
<PAGE>
<TABLE>
<CAPTION>
Nine Nine
Months % of Months % of
Ended Operating Ended Operating
9/30/00 Revenues 9/30/99 Revenues
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Operating revenues $903,193 100.0 $771,770 100.0
-------- --------- -------- ---------
Operating expenses:
Salaries, wages and
benefits 320,135 35.4 282,397 36.6
Fuel 98,285 10.9 53,819 7.0
Supplies and maintenance 78,534 8.7 64,190 8.3
Taxes and licenses 66,211 7.3 60,071 7.8
Insurance and claims 25,127 2.8 24,311 3.2
Depreciation 80,926 9.0 73,606 9.5
Rent and purchased
transportation 164,968 18.3 131,565 17.0
Communications and
utilities 10,849 1.2 9,904 1.3
Other (3,838) (0.4) (7,868) (1.0)
-------- --------- -------- ---------
Total operating
expenses 841,197 93.1 691,995 89.7
-------- --------- -------- ---------
Operating income 61,996 6.9 79,775 10.3
-------- --------- -------- ---------
Other expense (income):
Interest expense 6,256 0.7 4,574 0.6
Interest income (1,760) (0.2) (1,028) (0.1)
Other 204 0.0 140 0.0
-------- --------- -------- ---------
Total other expense 4,700 0.5 3,686 0.5
-------- --------- -------- ---------
Income before income taxes 57,296 6.3 76,089 9.8
Income taxes 21,772 2.4 28,914 3.7
-------- --------- -------- ---------
Net income 35,524 3.9 $47,175 6.1
======== ========= ======== =========
Diluted shares outstanding 47,260 47,645
======== ========
Diluted earnings per share $.75 $.99
======== ========
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET DATA
(Unaudited)
(In thousands)
As of As of
9/30/00 12/31/99
-------- --------
<S> <C> <C>
Current assets $203,866 $188,827
Total assets $918,093 $896,879
Current liabilities $108,342 $121,206*
Long-term debt $115,000 $120,000
Stockholders' equity $524,969 $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 7,425
trucks and 19,620 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. 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.
