Werner Enterprises Reports Second Quarter 2024 Results
Second Quarter 2024 Highlights (all metrics compared to second quarter 2023)
-
Total revenues of
$760.8 million , down 6% -
Operating income of
$19.6 million , down 58%; non-GAAP adjusted operating income of$21.3 million , down 58% - Operating margin of 2.6%, down 320 basis points; non-GAAP adjusted operating margin of 2.8%, down 350 basis points
-
Diluted EPS of
$0.15 , down 68%; non-GAAP adjusted diluted EPS of$0.17 , down 67%
“While industry-wide headwinds remain, second quarter earnings improved sequentially, and we made progress on controlling the controllables. One-Way Truckload production increased for the fifth consecutive quarter.
Total revenues for the quarter were
Operating income of
TTS operating income decreased
Net interest expense of
Net income attributable to Werner of
Key Consolidated Financial Metrics
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands, except per share amounts) |
2024 |
|
2023 |
|
Y/Y Change |
|
2024 |
|
2023 |
|
Y/Y Change |
||||||||||
Total revenues |
$ |
760,798 |
|
|
$ |
811,096 |
|
|
(6 |
)% |
|
$ |
1,529,878 |
|
|
$ |
1,643,810 |
|
|
(7 |
)% |
|
$ |
537,069 |
|
|
$ |
570,192 |
|
|
(6 |
)% |
|
$ |
1,088,195 |
|
|
$ |
1,158,522 |
|
|
(6 |
)% |
Werner Logistics revenues |
$ |
208,912 |
|
|
$ |
224,549 |
|
|
(7 |
)% |
|
$ |
411,394 |
|
|
$ |
453,218 |
|
|
(9 |
)% |
Operating income |
$ |
19,611 |
|
|
$ |
47,198 |
|
|
(58 |
)% |
|
$ |
35,199 |
|
|
$ |
100,584 |
|
|
(65 |
)% |
Operating margin |
|
2.6 |
% |
|
|
5.8 |
% |
|
(320) bps |
|
|
2.3 |
% |
|
|
6.1 |
% |
|
(380) bps |
||
Net income attributable to Werner |
$ |
9,465 |
|
|
$ |
29,881 |
|
|
(68 |
)% |
|
$ |
15,777 |
|
|
$ |
65,105 |
|
|
(76 |
)% |
Diluted earnings per share |
$ |
0.15 |
|
|
$ |
0.47 |
|
|
(68 |
)% |
|
$ |
0.25 |
|
|
$ |
1.02 |
|
|
(76 |
)% |
Adjusted operating income (1) |
$ |
21,269 |
|
|
$ |
51,103 |
|
|
(58 |
)% |
|
$ |
39,860 |
|
|
$ |
108,648 |
|
|
(63 |
)% |
Adjusted operating margin (1) |
|
2.8 |
% |
|
|
6.3 |
% |
|
(350) bps |
|
|
2.6 |
% |
|
|
6.6 |
% |
|
(400) bps |
||
Adjusted net income attributable to Werner (1) |
$ |
10,716 |
|
|
$ |
33,221 |
|
|
(68 |
)% |
|
$ |
19,339 |
|
|
$ |
71,465 |
|
|
(73 |
)% |
Adjusted diluted earnings per share (1) |
$ |
0.17 |
|
|
$ |
0.52 |
|
|
(67 |
)% |
|
$ |
0.31 |
|
|
$ |
1.12 |
|
|
(73 |
)% |
(1) See attached Reconciliation of Non-GAAP Financial Measures - Consolidated. |
-
Revenues of
$537.1 million decreased$33.1 million ; trucking revenues, net of fuel surcharge, decreased 6% year over year -
Operating income of
$21.0 million decreased$24.2 million ; non-GAAP adjusted operating income of$23.3 million decreased$24.6 million due largely to lower gains on the sale of property and equipment (down 89%), lower fleet size in Dedicated (down 7.1%) and lower One-Way revenue per total mile, net of fuel surcharge (down 2.7%). While One-Way fleet size is smaller (down 11.2%), this is offset by higher One-Way average total miles per truck per week (up 10.8%) and One-Way average revenues per truck per week, net of fuel surcharge (up 7.8%) - Operating margin of 3.9% decreased 400 basis points from 7.9%; non-GAAP adjusted operating margin, net of fuel surcharge, of 5.0% decreased 470 basis points from 9.7%
- Average segment trucks in service totaled 7,630, a decrease of 721 trucks year over year, or 9%
- Dedicated unit trucks at quarter end totaled 4,825, or 65% of the total TTS segment fleet, compared to 5,260 trucks, or 63%, a year ago
- Average revenues per truck per week, net of fuel surcharge, increased 3.0% for TTS and increased 0.4% for Dedicated
During second quarter 2024, Dedicated experienced net reduction in average trucks, down 7.1% year over year and down 4.8% sequentially. Dedicated average revenues per truck per week, net of fuel surcharge, increased 0.4% year over year. Despite a highly competitive environment and isolated fleet losses, pipeline opportunities remain healthy, and client retention is over 90%. One-Way Truckload volume during second quarter 2024 was steady and seasonally consistent, but ongoing excess capacity in the freight market continues to reflect ongoing rate pressure. One-Way revenues per total mile was down 2.7%, although a lesser degree of year-over-year decline compared to prior quarters. One-Way fleet size was smaller year over year (down 11.2%), offset with the fifth consecutive quarter of higher total miles per truck per week (up 10.8%). As a result, One-Way Truckload miles were down only 1.6%.
Key Truckload Transportation Services Segment Financial Metrics
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands) |
2024 |
|
2023 |
|
Y/Y Change |
|
2024 |
|
2023 |
|
Y/Y Change |
||||||||||
Trucking revenues, net of fuel surcharge |
$ |
458,140 |
|
|
$ |
486,626 |
|
|
(6 |
)% |
|
$ |
928,019 |
|
|
$ |
979,868 |
|
|
(5 |
)% |
Trucking fuel surcharge revenues |
|
69,966 |
|
|
|
76,677 |
|
|
(9 |
)% |
|
|
142,949 |
|
|
|
164,978 |
|
|
(13 |
)% |
Non-trucking and other revenues |
|
8,963 |
|
|
|
6,889 |
|
|
30 |
% |
|
|
17,227 |
|
|
|
13,676 |
|
|
26 |
% |
Total revenues |
$ |
537,069 |
|
|
$ |
570,192 |
|
|
(6 |
)% |
|
$ |
1,088,195 |
|
|
$ |
1,158,522 |
|
|
(6 |
)% |
Operating income |
$ |
20,998 |
|
|
$ |
45,159 |
|
|
(54 |
)% |
|
$ |
41,838 |
|
|
$ |
96,145 |
|
|
(56 |
)% |
Operating margin |
|
3.9 |
% |
|
|
7.9 |
% |
|
(400) bps |
|
|
3.8 |
% |
|
|
8.3 |
% |
|
(450) bps |
||
Operating ratio |
|
96.1 |
% |
|
|
92.1 |
% |
|
400 bps |
|
|
96.2 |
% |
|
|
91.7 |
% |
|
450 bps |
||
Adjusted operating income (1) |
$ |
23,338 |
|
|
$ |
47,915 |
|
|
(51 |
)% |
|
$ |
46,032 |
|
|
$ |
101,640 |
|
|
(55 |
)% |
Adjusted operating margin (1) |
|
4.3 |
% |
|
|
8.4 |
% |
|
(410) bps |
|
|
4.2 |
% |
|
|
8.8 |
% |
|
(460) bps |
||
Adjusted operating margin, net of fuel surcharge (1) |
|
5.0 |
% |
|
|
9.7 |
% |
|
(470) bps |
|
|
4.9 |
% |
|
|
10.2 |
% |
|
(530) bps |
||
Adjusted operating ratio (1) |
|
95.7 |
% |
|
|
91.6 |
% |
|
410 bps |
|
|
95.8 |
% |
|
|
91.2 |
% |
|
460 bps |
||
Adjusted operating ratio, net of fuel surcharge (1) |
|
95.0 |
% |
|
|
90.3 |
% |
|
470 bps |
|
|
95.1 |
% |
|
|
89.8 |
% |
|
530 bps |
||
(1) See attached Reconciliation of Non-GAAP Financial Measures - |
Werner Logistics Segment
-
Revenues of
$208.9 million decreased$15.6 million , or 7% -
Operating income of
$0.5 million decreased$3.8 million ; non-GAAP adjusted operating income of$1.7 million decreased$3.8 million - Operating margin of 0.3% decreased 160 basis points from 1.9%; non-GAAP adjusted operating margin of 0.8% decreased 160 basis points from 2.4%
Truckload Logistics revenues (75% of Logistics revenues) decreased
Intermodal revenues (13% of Logistics revenues) increased
Final Mile revenues (12% of Logistics revenues) decreased
Logistics operating income and adjusted operating income decreased
Key Werner Logistics Segment Financial Metrics
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands) |
2024 |
|
2023 |
|
Y/Y Change |
|
2024 |
|
2023 |
|
Y/Y Change |
||||||||||
Total revenues |
$ |
208,912 |
|
|
$ |
224,549 |
|
|
(7 |
)% |
|
$ |
411,394 |
|
|
$ |
453,218 |
|
|
(9 |
)% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased transportation expense |
|
177,066 |
|
|
|
185,397 |
|
|
(4 |
)% |
|
|
349,553 |
|
|
|
373,895 |
|
|
(7 |
)% |
Other operating expenses |
|
31,296 |
|
|
|
34,797 |
|
|
(10 |
)% |
|
|
63,620 |
|
|
|
70,031 |
|
|
(9 |
)% |
Total operating expenses |
|
208,362 |
|
|
|
220,194 |
|
|
(5 |
)% |
|
|
413,173 |
|
|
|
443,926 |
|
|
(7 |
)% |
Operating income (loss) |
$ |
550 |
|
|
$ |
4,355 |
|
|
(87 |
)% |
|
$ |
(1,779 |
) |
|
$ |
9,292 |
|
|
(119 |
)% |
Operating margin |
|
0.3 |
% |
|
|
1.9 |
% |
|
(160) bps |
|
|
(0.4 |
%) |
|
|
2.1 |
% |
|
(250) bps |
||
Adjusted operating income (1) |
$ |
1,698 |
|
|
$ |
5,504 |
|
|
(69 |
)% |
|
$ |
518 |
|
|
$ |
11,861 |
|
|
(96 |
)% |
Adjusted operating margin (1) |
|
0.8 |
% |
|
|
2.4 |
% |
|
(160) bps |
|
|
0.1 |
% |
|
|
2.6 |
% |
|
(250) bps |
||
(1) See attached Reconciliation of Non-GAAP Financial Measures - Werner Logistics Segment. |
Cash Flow and Capital Allocation
Cash flow from operations in second quarter 2024 was
Net capital expenditures in second quarter 2024 were
Gains on sales of property and equipment in second quarter 2024 were
During the quarter, we repurchased 1.6 million shares of common stock for a total cost of
As of
2024 Guidance Metrics and Assumptions
The following table summarizes our updated 2024 guidance assumptions:
|
Prior (as of 4/30/24) |
Actual (as of 6/30/24) |
New (as of 7/30/24) |
TTS truck count from BoY to EoY |
(6)% to (3)% (annual) |
(7)% (YTD24) |
(6)% to (3)% (annual) |
Net capital expenditures |
(annual) |
(YTD24) |
(annual) |
TTS Guidance |
|
|
|
Dedicated RPTPW* growth |
0% to 3% (annual) |
0.8% (1H24 vs. 1H23) |
0% to 3% (annual) |
One-Way Truckload RPTM* growth |
(6)% to (3)% (1H24 vs. 1H23) |
(4.0)% (1H24 vs. 1H23) |
(3)% to 0% (3Q24 vs. 3Q23) |
* Net of fuel surcharge revenues |
Assumptions
- Effective income tax rate of 24.2% in 2Q24 compared to 25.2% in 2Q23. Expect annual effective tax rate in the range of 24.5% to 25.5%.
- Average truck age of 2.1 years and average trailer age of 4.9 years as of 6/30/24. Expect average truck and trailer ages of 2.0 years and 5.0 years, respectively, as of 12/31/24.
Call Information
A replay of the conference call will be available on
About
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s latest available Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.
For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the
Consolidated Financial Information
INCOME STATEMENT |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
||||||||||||
Operating revenues |
$ |
760,798 |
|
|
100.0 |
|
|
$ |
811,096 |
|
|
100.0 |
|
|
$ |
1,529,878 |
|
|
100.0 |
|
|
$ |
1,643,810 |
|
|
100.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits |
|
259,754 |
|
|
34.1 |
|
|
|
266,373 |
|
|
32.9 |
|
|
|
525,157 |
|
|
34.3 |
|
|
|
534,688 |
|
|
32.5 |
|
Fuel |
|
71,998 |
|
|
9.5 |
|
|
|
77,740 |
|
|
9.6 |
|
|
|
149,620 |
|
|
9.8 |
|
|
|
169,154 |
|
|
10.3 |
|
Supplies and maintenance |
|
61,988 |
|
|
8.1 |
|
|
|
64,964 |
|
|
8.0 |
|
|
|
123,763 |
|
|
8.1 |
|
|
|
133,189 |
|
|
8.1 |
|
Taxes and licenses |
|
25,494 |
|
|
3.3 |
|
|
|
25,408 |
|
|
3.1 |
|
|
|
50,658 |
|
|
3.3 |
|
|
|
50,833 |
|
|
3.1 |
|
Insurance and claims |
|
31,897 |
|
|
4.2 |
|
|
|
36,806 |
|
|
4.5 |
|
|
|
68,259 |
|
|
4.4 |
|
|
|
73,291 |
|
|
4.4 |
|
Depreciation and amortization |
|
72,672 |
|
|
9.6 |
|
|
|
74,898 |
|
|
9.2 |
|
|
|
146,942 |
|
|
9.6 |
|
|
|
149,211 |
|
|
9.1 |
|
Rent and purchased transportation |
|
210,417 |
|
|
27.7 |
|
|
|
217,086 |
|
|
26.8 |
|
|
|
414,342 |
|
|
27.1 |
|
|
|
437,310 |
|
|
26.6 |
|
Communications and utilities |
|
4,127 |
|
|
0.5 |
|
|
|
4,669 |
|
|
0.6 |
|
|
|
8,833 |
|
|
0.6 |
|
|
|
9,402 |
|
|
0.6 |
|
Other |
|
2,840 |
|
|
0.4 |
|
|
|
(4,046 |
) |
|
(0.5 |
) |
|
|
7,105 |
|
|
0.5 |
|
|
|
(13,852 |
) |
|
(0.8 |
) |
Total operating expenses |
|
741,187 |
|
|
97.4 |
|
|
|
763,898 |
|
|
94.2 |
|
|
|
1,494,679 |
|
|
97.7 |
|
|
|
1,543,226 |
|
|
93.9 |
|
Operating income |
|
19,611 |
|
|
2.6 |
|
|
|
47,198 |
|
|
5.8 |
|
|
|
35,199 |
|
|
2.3 |
|
|
|
100,584 |
|
|
6.1 |
|
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense |
|
9,043 |
|
|
1.2 |
|
|
|
8,139 |
|
|
1.0 |
|
|
|
16,991 |
|
|
1.1 |
|
|
|
16,055 |
|
|
1.0 |
|
Interest income |
|
(1,786 |
) |
|
(0.2 |
) |
|
|
(1,899 |
) |
|
(0.2 |
) |
|
|
(3,471 |
) |
|
(0.2 |
) |
|
|
(3,451 |
) |
|
(0.2 |
) |
Loss (gain) on investments in equity securities, net |
|
52 |
|
|
— |
|
|
|
(79 |
) |
|
— |
|
|
|
190 |
|
|
— |
|
|
|
2 |
|
|
— |
|
Loss from equity method investment |
|
141 |
|
|
— |
|
|
|
844 |
|
|
0.1 |
|
|
|
274 |
|
|
— |
|
|
|
844 |
|
|
— |
|
Other |
|
30 |
|
|
— |
|
|
|
86 |
|
|
— |
|
|
|
(231 |
) |
|
— |
|
|
|
93 |
|
|
— |
|
Total other expense, net |
|
7,480 |
|
|
1.0 |
|
|
|
7,091 |
|
|
0.9 |
|
|
|
13,753 |
|
|
0.9 |
|
|
|
13,543 |
|
|
0.8 |
|
Income before income taxes |
|
12,131 |
|
|
1.6 |
|
|
|
40,107 |
|
|
4.9 |
|
|
|
21,446 |
|
|
1.4 |
|
|
|
87,041 |
|
|
5.3 |
|
Income tax expense |
|
2,931 |
|
|
0.4 |
|
|
|
10,087 |
|
|
1.2 |
|
|
|
5,998 |
|
|
0.4 |
|
|
|
21,487 |
|
|
1.3 |
|
Net income |
|
9,200 |
|
|
1.2 |
|
|
|
30,020 |
|
|
3.7 |
|
|
|
15,448 |
|
|
1.0 |
|
|
|
65,554 |
|
|
4.0 |
|
Net loss (income) attributable to noncontrolling interest |
|
265 |
|
|
— |
|
|
|
(139 |
) |
|
— |
|
|
|
329 |
|
|
— |
|
|
|
(449 |
) |
|
— |
|
Net income attributable to Werner |
$ |
9,465 |
|
|
1.2 |
|
|
$ |
29,881 |
|
|
3.7 |
|
|
$ |
15,777 |
|
|
1.0 |
|
|
$ |
65,105 |
|
|
4.0 |
|
Diluted shares outstanding |
|
62,860 |
|
|
|
|
|
63,687 |
|
|
|
|
|
63,291 |
|
|
|
|
|
63,689 |
|
|
|
||||
Diluted earnings per share |
$ |
0.15 |
|
|
|
|
$ |
0.47 |
|
|
|
|
$ |
0.25 |
|
|
|
|
$ |
1.02 |
|
|
|
CONDENSED BALANCE SHEET |
|||||||
(In thousands, except share amounts) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
70,448 |
|
|
$ |
61,723 |
|
Accounts receivable, trade, less allowance of |
|
409,986 |
|
|
|
444,944 |
|
Other receivables |
|
28,092 |
|
|
|
25,479 |
|
Inventories and supplies |
|
16,286 |
|
|
|
18,077 |
|
Prepaid taxes, licenses and permits |
|
7,895 |
|
|
|
16,505 |
|
Other current assets |
|
44,959 |
|
|
|
67,900 |
|
Total current assets |
|
577,666 |
|
|
|
634,628 |
|
Property and equipment |
|
2,952,295 |
|
|
|
2,951,654 |
|
Less – accumulated depreciation |
|
992,128 |
|
|
|
978,698 |
|
Property and equipment, net |
|
1,960,167 |
|
|
|
1,972,956 |
|
|
|
129,104 |
|
|
|
129,104 |
|
Intangible assets, net |
|
81,442 |
|
|
|
86,477 |
|
Other non-current assets (1) |
|
345,191 |
|
|
|
334,771 |
|
Total assets |
$ |
3,093,570 |
|
|
$ |
3,157,936 |
|
|
|
|
|
||||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
142,161 |
|
|
$ |
135,990 |
|
Current portion of long-term debt |
|
10,000 |
|
|
|
2,500 |
|
Insurance and claims accruals |
|
85,224 |
|
|
|
81,794 |
|
Accrued payroll |
|
52,453 |
|
|
|
50,549 |
|
Accrued expenses |
|
22,506 |
|
|
|
30,282 |
|
Other current liabilities |
|
30,115 |
|
|
|
29,470 |
|
Total current liabilities |
|
342,459 |
|
|
|
330,585 |
|
Long-term debt, net of current portion |
|
660,000 |
|
|
|
646,250 |
|
Other long-term liabilities |
|
62,355 |
|
|
|
54,275 |
|
Insurance and claims accruals, net of current portion (1) |
|
227,115 |
|
|
|
239,700 |
|
Deferred income taxes |
|
308,136 |
|
|
|
320,180 |
|
Total liabilities |
|
1,600,065 |
|
|
|
1,590,990 |
|
Temporary equity - redeemable noncontrolling interest |
|
38,278 |
|
|
|
38,607 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
805 |
|
|
|
805 |
|
Paid-in capital |
|
134,769 |
|
|
|
134,894 |
|
Retained earnings |
|
1,951,631 |
|
|
|
1,953,385 |
|
Accumulated other comprehensive loss |
|
(14,405 |
) |
|
|
(9,684 |
) |
|
|
(617,573 |
) |
|
|
(551,061 |
) |
Total stockholders’ equity |
|
1,455,227 |
|
|
|
1,528,339 |
|
Total liabilities, temporary equity and stockholders’ equity |
$ |
3,093,570 |
|
|
$ |
3,157,936 |
|
(1) Under the terms of our insurance policies, we are the primary obligor of the damage award in a previously disclosed adverse jury verdict, and as such, we have recorded a |
SUPPLEMENTAL INFORMATION |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Capital expenditures, net |
$ |
99,161 |
|
|
$ |
151,448 |
|
|
$ |
118,196 |
|
|
$ |
254,191 |
|
Cash flow from operations |
$ |
109,072 |
|
|
$ |
114,943 |
|
|
$ |
197,657 |
|
|
$ |
281,790 |
|
Return on assets (annualized) |
|
1.2 |
% |
|
|
3.9 |
% |
|
|
1.0 |
% |
|
|
4.2 |
% |
Return on equity (annualized) |
|
2.4 |
% |
|
|
7.9 |
% |
|
|
2.0 |
% |
|
|
8.7 |
% |
Segment Financial and Operating Statistics Information
SEGMENT INFORMATION |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
|
$ |
537,069 |
|
|
$ |
570,192 |
|
|
$ |
1,088,195 |
|
|
$ |
1,158,522 |
|
Werner Logistics |
|
208,912 |
|
|
|
224,549 |
|
|
|
411,394 |
|
|
|
453,218 |
|
Other (1) |
|
17,467 |
|
|
|
19,376 |
|
|
|
36,420 |
|
|
|
39,877 |
|
Corporate |
|
613 |
|
|
|
501 |
|
|
|
1,203 |
|
|
|
976 |
|
Subtotal |
|
764,061 |
|
|
|
814,618 |
|
|
|
1,537,212 |
|
|
|
1,652,593 |
|
Inter-segment eliminations (2) |
|
(3,263 |
) |
|
|
(3,522 |
) |
|
|
(7,334 |
) |
|
|
(8,783 |
) |
Total |
$ |
760,798 |
|
|
$ |
811,096 |
|
|
$ |
1,529,878 |
|
|
$ |
1,643,810 |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
||||||||
|
$ |
20,998 |
|
|
$ |
45,159 |
|
|
$ |
41,838 |
|
|
$ |
96,145 |
|
Werner Logistics |
|
550 |
|
|
|
4,355 |
|
|
|
(1,779 |
) |
|
|
9,292 |
|
Other (1) |
|
(966 |
) |
|
|
(86 |
) |
|
|
(1,175 |
) |
|
|
463 |
|
Corporate |
|
(971 |
) |
|
|
(2,230 |
) |
|
|
(3,685 |
) |
|
|
(5,316 |
) |
Total |
$ |
19,611 |
|
|
$ |
47,198 |
|
|
$ |
35,199 |
|
|
$ |
100,584 |
|
(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. |
|||||||||||||||
(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation. |
OPERATING STATISTICS BY SEGMENT |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
2024 |
|
2023 |
|
% Chg |
|
2024 |
|
2023 |
|
% Chg |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average trucks in service |
|
7,630 |
|
|
|
8,351 |
|
|
(8.6 |
)% |
|
|
7,783 |
|
|
|
8,456 |
|
|
(8.0 |
)% |
Average revenues per truck per week (1) |
$ |
4,619 |
|
|
$ |
4,483 |
|
|
3.0 |
% |
|
$ |
4,586 |
|
|
$ |
4,457 |
|
|
2.9 |
% |
Total trucks (at quarter end) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company |
|
7,180 |
|
|
|
8,000 |
|
|
(10.3 |
)% |
|
|
7,180 |
|
|
|
8,000 |
|
|
(10.3 |
)% |
Independent contractor |
|
280 |
|
|
|
285 |
|
|
(1.8 |
)% |
|
|
280 |
|
|
|
285 |
|
|
(1.8 |
)% |
Total trucks |
|
7,460 |
|
|
|
8,285 |
|
|
(10.0 |
)% |
|
|
7,460 |
|
|
|
8,285 |
|
|
(10.0 |
)% |
Total trailers (at quarter end) |
|
26,965 |
|
|
|
27,110 |
|
|
(0.5 |
)% |
|
|
26,965 |
|
|
|
27,110 |
|
|
(0.5 |
)% |
One-Way Truckload |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trucking revenues, net of fuel surcharge (in 000’s) |
$ |
169,283 |
|
|
$ |
176,824 |
|
|
(4.3 |
)% |
|
$ |
338,120 |
|
|
$ |
359,954 |
|
|
(6.1 |
)% |
Average trucks in service |
|
2,730 |
|
|
|
3,075 |
|
|
(11.2 |
)% |
|
|
2,758 |
|
|
|
3,133 |
|
|
(12.0 |
)% |
Total trucks (at quarter end) |
|
2,635 |
|
|
|
3,025 |
|
|
(12.9 |
)% |
|
|
2,635 |
|
|
|
3,025 |
|
|
(12.9 |
)% |
Average percentage of empty miles |
|
14.70 |
% |
|
|
14.01 |
% |
|
4.9 |
% |
|
|
14.80 |
% |
|
|
14.05 |
% |
|
5.3 |
% |
Average revenues per truck per week (1) |
$ |
4,770 |
|
|
$ |
4,423 |
|
|
7.8 |
% |
|
$ |
4,716 |
|
|
$ |
4,419 |
|
|
6.7 |
% |
Average % change YOY in revenues per total mile (1) |
|
(2.7 |
)% |
|
|
(5.2 |
)% |
|
|
|
|
(4.0 |
)% |
|
|
(4.2 |
)% |
|
|
||
Average % change YOY in total miles per truck per week |
|
10.8 |
% |
|
|
0.1 |
% |
|
|
|
|
11.1 |
% |
|
|
(1.3 |
)% |
|
|
||
Average completed trip length in miles (loaded) |
|
589 |
|
|
|
604 |
|
|
(2.5 |
)% |
|
|
590 |
|
|
|
612 |
|
|
(3.6 |
)% |
Dedicated |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trucking revenues, net of fuel surcharge (in 000’s) |
$ |
288,857 |
|
|
$ |
309,802 |
|
|
(6.8 |
)% |
|
$ |
589,899 |
|
|
$ |
619,914 |
|
|
(4.8 |
)% |
Average trucks in service |
|
4,901 |
|
|
|
5,276 |
|
|
(7.1 |
)% |
|
|
5,025 |
|
|
|
5,323 |
|
|
(5.6 |
)% |
Total trucks (at quarter end) |
|
4,825 |
|
|
|
5,260 |
|
|
(8.3 |
)% |
|
|
4,825 |
|
|
|
5,260 |
|
|
(8.3 |
)% |
Average revenues per truck per week (1) |
$ |
4,534 |
|
|
$ |
4,517 |
|
|
0.4 |
% |
|
$ |
4,516 |
|
|
$ |
4,479 |
|
|
0.8 |
% |
Werner Logistics segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average trucks in service |
|
22 |
|
|
|
33 |
|
|
(33.3 |
)% |
|
|
24 |
|
|
|
36 |
|
|
(33.3 |
)% |
Total trucks (at quarter end) |
|
21 |
|
|
|
32 |
|
|
(34.4 |
)% |
|
|
21 |
|
|
|
32 |
|
|
(34.4 |
)% |
Total trailers (at quarter end) |
|
3,350 |
|
|
|
2,885 |
|
|
16.1 |
% |
|
|
3,350 |
|
|
|
2,885 |
|
|
16.1 |
% |
(1) Net of fuel surcharge revenues |
Non-GAAP Financial Measures and Reconciliations
To supplement our financial results presented in accordance with generally accepted accounting principles in
The following tables present reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure as required by SEC Regulation G. In addition, information regarding each of the excluded items as well as our reasons for excluding them from our non-GAAP results is provided below.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED |
||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||
Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
||||||||||
Operating income and operating margin – (GAAP) |
|
$ |
19,611 |
|
|
2.6 |
% |
|
$ |
47,198 |
|
5.8 |
% |
|
$ |
35,199 |
|
|
2.3 |
% |
|
$ |
100,584 |
|
6.1 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance and claims (2) |
|
|
971 |
|
|
0.1 |
% |
|
|
1,387 |
|
0.2 |
% |
|
|
1,456 |
|
|
0.1 |
% |
|
|
2,774 |
|
0.2 |
% |
Amortization of intangible assets (3) |
|
|
2,517 |
|
|
0.3 |
% |
|
|
2,518 |
|
0.3 |
% |
|
|
5,035 |
|
|
0.3 |
% |
|
|
5,290 |
|
0.3 |
% |
Gain on sale of real estate (4) |
|
|
(1,830 |
) |
|
(0.2 |
)% |
|
|
— |
|
— |
% |
|
|
(1,830 |
) |
|
(0.1 |
)% |
|
|
— |
|
— |
% |
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
|
$ |
21,269 |
|
|
2.8 |
% |
|
$ |
51,103 |
|
6.3 |
% |
|
$ |
39,860 |
|
|
2.6 |
% |
|
$ |
108,648 |
|
6.6 |
% |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||||||
Non-GAAP Adjusted Net Income Attributable to Werner and Non-GAAP Adjusted Diluted EPS (1) |
$ |
|
Diluted EPS |
|
$ |
|
Diluted EPS |
|
$ |
|
Diluted EPS |
|
$ |
|
Diluted EPS |
|||||||||||||||||
Net income attributable to Werner and diluted EPS – (GAAP) |
$ |
9,465 |
|
|
$ |
0.15 |
|
|
$ |
29,881 |
|
|
$ |
0.47 |
|
|
$ |
15,777 |
|
|
$ |
0.25 |
|
|
$ |
65,105 |
|
|
$ |
1.02 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Insurance and claims (2) |
|
971 |
|
|
|
0.02 |
|
|
|
1,387 |
|
|
|
0.02 |
|
|
|
1,456 |
|
|
|
0.02 |
|
|
|
2,774 |
|
|
|
0.04 |
|
|
Amortization of intangible assets, net of amount attributable to noncontrolling interest (3) |
|
2,345 |
|
|
|
0.04 |
|
|
|
2,346 |
|
|
|
0.04 |
|
|
|
4,691 |
|
|
|
0.08 |
|
|
|
4,946 |
|
|
|
0.08 |
|
|
Gain on sale of real estate (4) |
|
(1,830 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,830 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
|
Loss (gain) on investments in equity securities, net (5) |
|
52 |
|
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
|
|
190 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Loss from equity method investment (6) |
|
141 |
|
|
|
— |
|
|
|
844 |
|
|
|
0.01 |
|
|
|
274 |
|
|
|
0.01 |
|
|
|
844 |
|
|
|
0.01 |
|
|
Income tax effect of above adjustments (7) |
|
(428 |
) |
|
|
(0.01 |
) |
|
|
(1,158 |
) |
|
|
(0.02 |
) |
|
|
(1,219 |
) |
|
|
(0.02 |
) |
|
|
(2,206 |
) |
|
|
(0.03 |
) |
|
Non-GAAP adjusted net income attributable to Werner and non-GAAP adjusted diluted EPS |
$ |
10,716 |
|
|
$ |
0.17 |
|
|
$ |
33,221 |
|
|
$ |
0.52 |
|
|
$ |
19,339 |
|
|
$ |
0.31 |
|
|
$ |
71,465 |
|
|
$ |
1.12 |
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge (1) |
|
$ |
|
$ |
|
$ |
|
$ |
||||||||
Operating revenues – (GAAP) |
|
$ |
760,798 |
|
|
$ |
811,096 |
|
|
$ |
1,529,878 |
|
|
$ |
1,643,810 |
|
Non-GAAP adjustment: |
|
|
|
|
|
|
|
|
||||||||
Trucking fuel surcharge (8) |
|
|
(69,966 |
) |
|
|
(76,677 |
) |
|
|
(142,949 |
) |
|
|
(164,978 |
) |
Non-GAAP Operating revenues, net of fuel surcharge |
|
$ |
690,832 |
|
|
$ |
734,419 |
|
|
$ |
1,386,929 |
|
|
$ |
1,478,832 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT |
||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
||||||||
Operating income and operating margin – (GAAP) |
|
$ |
20,998 |
|
3.9 |
% |
|
$ |
45,159 |
|
7.9 |
% |
|
$ |
41,838 |
|
3.8 |
% |
|
$ |
96,145 |
|
8.3 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Insurance and claims (2) |
|
|
971 |
|
0.2 |
% |
|
|
1,387 |
|
0.3 |
% |
|
|
1,456 |
|
0.1 |
% |
|
|
2,774 |
|
0.3 |
% |
Amortization of intangible assets (3) |
|
|
1,369 |
|
0.2 |
% |
|
|
1,369 |
|
0.2 |
% |
|
|
2,738 |
|
0.3 |
% |
|
|
2,721 |
|
0.2 |
% |
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
|
$ |
23,338 |
|
4.3 |
% |
|
$ |
47,915 |
|
8.4 |
% |
|
$ |
46,032 |
|
4.2 |
% |
|
$ |
101,640 |
|
8.8 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
Non-GAAP Adjusted Operating Expenses and Non-GAAP Adjusted Operating Ratio (1) |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|||||||||||||
Operating expenses and operating ratio – (GAAP) |
|
$ |
516,071 |
|
|
96.1 |
% |
|
$ |
525,033 |
|
|
92.1 |
% |
|
$ |
1,046,357 |
|
96.2 |
% |
|
$ |
1,062,377 |
|
|
91.7 |
% |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance and claims (2) |
|
|
(971 |
) |
|
(0.2 |
)% |
|
|
(1,387 |
) |
|
(0.3 |
)% |
|
|
(1,456 |
) |
(0.1 |
)% |
|
|
(2,774 |
) |
|
(0.3 |
)% |
|
Amortization of intangible assets (3) |
|
|
(1,369 |
) |
|
(0.2 |
)% |
|
|
(1,369 |
) |
|
(0.2 |
)% |
|
|
(2,738 |
) |
(0.3 |
)% |
|
|
(2,721 |
) |
|
(0.2 |
)% |
|
Non-GAAP adjusted operating expenses and non-GAAP adjusted operating ratio |
|
$ |
513,731 |
|
|
95.7 |
% |
|
$ |
522,277 |
|
|
91.6 |
% |
|
$ |
1,042,163 |
|
95.8 |
% |
|
$ |
1,056,882 |
|
|
91.2 |
% |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of Fuel Surcharge; and Non-GAAP Adjusted Operating Ratio, Net of Fuel Surcharge (1) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
$ |
|
$ |
|
$ |
|
$ |
|||||||||
Operating revenues – (GAAP) |
|
$ |
537,069 |
|
|
$ |
570,192 |
|
|
$ |
1,088,195 |
|
|
$ |
1,158,522 |
|
Less: Trucking fuel surcharge (8) |
|
|
(69,966 |
) |
|
|
(76,677 |
) |
|
|
(142,949 |
) |
|
|
(164,978 |
) |
Operating revenues, net of fuel surcharge – (Non-GAAP) |
|
|
467,103 |
|
|
|
493,515 |
|
|
|
945,246 |
|
|
|
993,544 |
|
Operating expenses – (GAAP) |
|
|
516,071 |
|
|
|
525,033 |
|
|
|
1,046,357 |
|
|
|
1,062,377 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Trucking fuel surcharge (8) |
|
|
(69,966 |
) |
|
|
(76,677 |
) |
|
|
(142,949 |
) |
|
|
(164,978 |
) |
Insurance and claims (2) |
|
|
(971 |
) |
|
|
(1,387 |
) |
|
|
(1,456 |
) |
|
|
(2,774 |
) |
Amortization of intangible assets (3) |
|
|
(1,369 |
) |
|
|
(1,369 |
) |
|
|
(2,738 |
) |
|
|
(2,721 |
) |
Non-GAAP adjusted operating expenses, net of fuel surcharge |
|
|
443,765 |
|
|
|
445,600 |
|
|
|
899,214 |
|
|
|
891,904 |
|
Non-GAAP adjusted operating income |
|
$ |
23,338 |
|
|
$ |
47,915 |
|
|
$ |
46,032 |
|
|
$ |
101,640 |
|
Non-GAAP adjusted operating margin, net of fuel surcharge |
|
|
5.0 |
% |
|
|
9.7 |
% |
|
|
4.9 |
% |
|
|
10.2 |
% |
Non-GAAP adjusted operating ratio, net of fuel surcharge |
|
|
95.0 |
% |
|
|
90.3 |
% |
|
|
95.1 |
% |
|
|
89.8 |
% |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT |
||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
||||||||||||
Operating revenues – (GAAP) |
|
$ |
208,912 |
|
|
100.0 |
% |
|
$ |
224,549 |
|
|
100.0 |
% |
|
$ |
411,394 |
|
|
100.0 |
% |
|
$ |
453,218 |
|
|
100.0 |
% |
Non-GAAP adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchased transportation expense (9) |
|
|
(177,066 |
) |
|
(84.8 |
)% |
|
|
(185,397 |
) |
|
(82.6 |
)% |
|
|
(349,553 |
) |
|
(85.0 |
)% |
|
|
(373,895 |
) |
|
(82.5 |
)% |
Non-GAAP adjusted operating revenues, less purchased transportation expense |
|
$ |
31,846 |
|
|
15.2 |
% |
|
$ |
39,152 |
|
|
17.4 |
% |
|
$ |
61,841 |
|
|
15.0 |
% |
|
$ |
79,323 |
|
|
17.5 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) and Non-GAAP Adjusted Operating Margin (1) |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|
$ |
|
% of Op. Rev. |
|||||||||
Operating income (loss) and operating margin – (GAAP) |
|
$ |
550 |
|
0.3 |
% |
|
$ |
4,355 |
|
1.9 |
% |
|
$ |
(1,779 |
) |
|
(0.4 |
)% |
|
$ |
9,292 |
|
2.1 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortization of intangible assets (3) |
|
|
1,148 |
|
0.5 |
% |
|
|
1,149 |
|
0.5 |
% |
|
|
2,297 |
|
|
0.5 |
% |
|
|
2,569 |
|
0.5 |
% |
Non-GAAP adjusted operating income and non-GAAP adjusted operating margin |
|
$ |
1,698 |
|
0.8 |
% |
|
$ |
5,504 |
|
2.4 |
% |
|
$ |
518 |
|
|
0.1 |
% |
|
$ |
11,861 |
|
2.6 |
% |
(1) Non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income attributable to Werner; non-GAAP adjusted diluted earnings per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge should be considered in addition to, rather than as substitutes for, GAAP operating income; GAAP operating margin; GAAP net income attributable to Werner; GAAP diluted earnings per share; GAAP operating revenues; GAAP operating expenses; and GAAP operating ratio, which are their most directly comparable GAAP financial measures.
(2) We accrued pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on
(3) Amortization expense related to intangible assets acquired in our business acquisitions is excluded because management does not believe it is indicative of our core operating performance. This item is included in our
(4) During second quarter 2024, we sold two parcels of real estate which resulted in a
(5) Represents non-operating mark-to-market adjustments for gains/losses on our minority equity investments, which we account for under Accounting Standards Codification (“ASC”) 321, Investments –
(6) Represents earnings/losses from our equity method investment, which we account for under ASC 323, Investments -
(7) The income tax effect of the non-GAAP adjustments is calculated using the incremental income tax rate excluding discrete items, and the income tax effect for 2023 has been updated to reflect the annual incremental income tax rate.
(8) Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting the fuel surcharges against fuel expenses. Management believes netting fuel surcharge revenues, which are generally a more volatile source of revenue, against fuel expenses provides a more consistent basis for comparing the results of operations from period to period.
(9) Management believes excluding purchased transportation expense from Werner Logistics operating revenues provides a useful measurement of our ability to source and sell services provided by third parties.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730934805/en/
Executive Vice President, Treasurer
and Chief Financial Officer
(402) 894-3700
Source: