Werner Enterprises(US:WERN)2025-02-06 21:05Financial Performance - Total revenues for Q4 2024 were $754.7 million, down 8% from $821.9 million in Q4 2023[3] - Operating income decreased to $13.4 million, a decline of 65% year-over-year, with an operating margin of 1.8%, down 280 basis points[4] - Net income attributable to Werner was $11.9 million, a decrease of 50%, with diluted EPS of $0.19, down 48%[9] - Adjusted operating income for the year was $73.7 million, down 61% from the previous year, with an adjusted operating margin of 2.4%, down 340 basis points[3] - Total operating revenues (GAAP) for the year ended December 31, 2024, were $3,030,258 million, a decrease from $3,283,499 million in 2023[51] - For the full year 2024, operating revenues totaled $831.337 million, down from $910.433 million in 2023, a decrease of about 8.7%[53] Segment Performance - Truckload Transportation Services (TTS) revenues were $527.3 million, down 9% year-over-year, primarily due to a $19 million unfavorable claims development[19] - Logistics revenues decreased by $13.8 million, or 6%, totaling $213.2 million, with an operating income of $1.2 million, down 73%[20] - Revenues for Truckload Transportation Services decreased to $2,138,293 thousand in 2024 from $2,310,810 thousand in 2023, a decline of about 7.4%[43] - Operating income for Truckload Transportation Services dropped to $75,166 thousand in 2024, down from $169,330 thousand in 2023, a decrease of approximately 55.7%[43] Cash Flow and Capital Expenditures - Cash flow from operations in Q4 2024 was $71.0 million, a decrease of 40% compared to $118.3 million in Q4 2023[25] - Net capital expenditures in Q4 2024 were $28.8 million, down 17% from $34.5 million in Q4 2023[26] - The 2025 guidance for net capital expenditures is projected to be between $185 million and $235 million, down from $240 million to $260 million in 2024[30] Assets and Liabilities - Total assets decreased to $3,052,237 thousand in 2024 from $3,157,936 thousand in 2023, a decline of approximately 3.3%[38] - Total current assets fell to $541,773 thousand in 2024, down from $634,628 thousand in 2023, a reduction of approximately 14.6%[38] - Total liabilities decreased to $1,558,361 thousand in 2024 from $1,590,990 thousand in 2023, a decline of approximately 2%[38] Operational Metrics - Average revenues per truck per week for TTS increased by 2.5%, despite a reduction in average trucks in service by 8.2% year-over-year[19] - Average trucks in service for Truckload Transportation Services decreased by 8.2% to 7,495 in 2024 from 8,168 in 2023[46] - The company expects TTS truck count growth of 1% to 5% in 2025, compared to a decline of 7% in 2024[30] Non-GAAP Measures - Non-GAAP adjusted operating income for Q4 2024 was $12,247 million, representing a margin of 1.6%, compared to $39,206 million and 4.8% in Q4 2023[51] - Non-GAAP adjusted operating revenues, net of fuel surcharge, for Q4 2024 were $697,114 million, compared to $737,270 million in Q4 2023[52] - The non-GAAP adjusted operating margin for the Truckload Transportation Services segment was 2.8% in Q4 2024, compared to 6.4% in Q4 2023[52] - Non-GAAP adjusted net income attributable to Werner for the year ended December 31, 2024, was $122,721 million, with an adjusted diluted EPS of $1.93[51] Other Notable Items - The company reported gains on strategic investments of $8.7 million, or $0.10 per share, compared to losses of $0.3 million in Q4 2023[8] - The effective income tax rate decreased to 7.3% from 23.1% in Q4 2023 due to discrete return-to-provision adjustments[7] - The company recorded a net pre-tax gain of $7.0 million from the sale of three parcels of real estate during 2024, which is considered an unusual and infrequent item[56] - Management believes that excluding certain non-GAAP adjustments provides a more useful comparison of performance from period to period[53]