J.B. Hunt Transport Services(JBHT) - 2024 Q2 - Quarterly Report

Revenue Performance - JBI segment revenue decreased 5% to $1.41 billion in Q2 2024, down from $1.49 billion in Q2 2023, with operating income down 31% to $99.2 million[9] - FMS segment revenue increased 5% to $235 million in Q2 2024, up from $224 million in Q2 2023, with operating income rising to $19.8 million from $14.8 million[10] - Total consolidated operating revenues for the first six months of 2024 were $5.87 billion, an 8% decrease from $6.36 billion in the same period of 2023[46] - JBI segment revenue for the first six months of 2024 decreased 7% to $2.80 billion, with operating income down 35% to $201.1 million[47] - DCS segment revenue decreased 3% to $1.71 billion in the first six months of 2024, with operating income down to $190.1 million from $216.2 million[48] - ICS revenue decreased 24% to $555.7 million in the first six months of 2024, resulting in an operating loss of $30.8 million[49] - FMS revenue increased 3% to $465 million in the first six months of 2024, with operating income rising to $34.9 million from $21.4 million[51] - Total operating revenues decreased by 6.5% in Q2 2024 compared to Q2 2023, amounting to $205.7 million[66] - Total operating revenues for the six months ended June 30, 2024, decreased by 7.7% compared to the same period in 2023[74] Operating Expenses - Total operating expenses decreased 5.9% while operating revenues decreased 7.7% in the first six months of 2024 compared to the prior year[54] - Total operating expenses decreased by 4.9% in Q2 2024, with significant reductions in rents and purchased transportation costs by 9.3%[66][67] - General and administrative expenses rose by 21.5% in Q2 2024, primarily due to higher building rental expenses and increased professional services costs[70] Net Earnings and Income - Operating income fell to 7.0% of total revenues in Q2 2024, down from 8.6% in Q2 2023, reflecting a 24.0% decrease[66] - Net earnings decreased by 28.3% in Q2 2024, representing 4.6% of total revenues compared to 6.1% in Q2 2023[66] Cash Flow and Debt - Net cash provided by operating activities totaled $827 million in the first six months of 2024, down from $1.1 billion in the same period of 2023[60] - The company had a cash balance of $53.5 million and an outstanding balance of $287 million on the revolving line of credit as of June 30, 2024[62] - Net interest expense increased 22.0% in 2024 due to higher effective interest rates and an increase in average debt balance[59] - Net interest expense increased by 38.3% in Q2 2024 due to higher effective interest rates and an increased average debt balance[72] Taxation - The effective income tax rate for Q2 2024 was 26.8%, compared to 26.0% in Q2 2023, with an expected annual tax rate between 24.0% and 25.0%[72] Shares Outstanding - The number of shares outstanding as of June 30, 2024, was 101,986,531[77]