Werner Enterprises(WERN) - 2024 Q4 - Annual Report

Financial Performance - Operating revenues for the year ended December 31, 2024, were $3,030,258, a decrease of 7.7$3,283,499 in 2023[193]. - Net income attributable to Werner for 2024 was $34,233, down 69.5$112,382 in 2023[193]. - Comprehensive income attributable to Werner for 2024 was $25,480, down from$113,990 in 2023[196]. - Net income for 2024 was $33,570,000, down from$112,290,000 in 2023, representing a decrease of about 70%[201]. - Basic earnings per share for 2024 were $0.55, down from$1.77 in 2023, a decline of 68.9%[230]. - Total consolidated revenues for the year ended December 31, 2024, were $3.030 billion, a decrease from$3.283 billion in 2023[314][315]. Operating Expenses - Total operating expenses decreased to $2,964,110 in 2024 from$3,107,083 in 2023, reflecting a reduction of 4.6%[193]. - Fuel expenses decreased significantly to $275,413 in 2024 from$345,001 in 2023, a reduction of 20.2%[193]. - Operating expenses for the reportable segments were $2,891,439, with significant costs in salaries, wages, and benefits totaling$990,060[317]. Assets and Liabilities - Total current assets decreased from $634,628,000 in 2023 to$541,773,000 in 2024, a decline of approximately 14.6%[199]. - Total liabilities decreased slightly from $1,590,990,000 in 2023 to$1,558,361,000 in 2024, a decrease of about 2%[199]. - Total stockholders' equity decreased from $1,528,339,000 in 2023 to$1,455,932,000 in 2024, a decline of about 4.7%[199]. - Outstanding debt totaled $650.0 million as of December 31, 2024, slightly up from$648.8 million in 2023[280]. Cash Flow - Net cash provided by operating activities was $329,734,000 in 2024, down from$474,366,000 in 2023, a decline of approximately 30.5%[201]. - Cash and cash equivalents decreased from $61,723,000 in 2023 to$40,752,000 in 2024, a reduction of approximately 34%[201]. Customer Concentration - The company's ten largest customers accounted for 48% of total revenues in 2024, with Dollar General being the largest customer at 11% of total revenues[207]. - The largest customer, Dollar General, accounted for 11% of total revenues in 2024, down from 14% in 2022[320]. Acquisitions - The company acquired ReedTMS for a total purchase price of $108.6 million, with an additional cash payment of$1.5 million based on performance goals achieved[235]. - The acquisition of Baylor was completed for $89.0 million, with potential future contingent earnout payments ranging from$0 to $15.0 million based on performance[237]. Equity and Stock Repurchase - The company repurchased$67,069,000 of common stock in 2024, compared to no repurchases in 2023[201]. - Dividends on common stock increased slightly from $34,208,000 in 2023 to$35,066,000 in 2024[201]. - Dividends on common stock increased to $0.56 per share in 2024 from$0.55 per share in 2023, totaling $34,843,000 in dividends paid[203]. Foreign Currency and Translation - Foreign currency translation losses were$7.4 million for the year ended December 31, 2024, compared to gains of $6.1 million in 2023[176]. - Comprehensive income for the year ended December 31, 2024, included foreign currency translation adjustment losses of$17.4 million[231]. Debt and Interest - The interest expense increased to $39,212 in 2024 from$33,535 in 2023, an increase of 16.1%[193]. - The company had $355.0 million of variable interest rate debt outstanding at December 31, 2024, with an effective interest rate fixed at 5.97$2,138.3 million in 2024, down from $2,310.8 million in 2023, reflecting a decline of 7.4$831.3 million in 2024 from $910.4 million in 2023, a decline of 8.7$75.166 million, while Werner Logistics reported an operating loss of $881,000[314]. Other Financial Metrics - Non-cash equity compensation expense for 2024 was$8,856,000, reflecting an increase from previous years[203]. - The company recognized a net interest expense of $129 thousand in 2024, up from$70 thousand in 2023[286]. - The total unrecognized compensation cost related to non-vested equity compensation awards was approximately $10.4 million as of December 31, 2024[289].