Werner Enterprises(US:WERN)2025-05-09 20:05Financial Performance - Operating revenues for Q1 2025 were $712,114, a decrease of 7.4% from $769,080 in Q1 2024[12] - The company reported a net loss of $10,098 in Q1 2025, compared to a net income of $6,312 in Q1 2024, marking a significant decline[12] - Earnings per share (EPS) for Q1 2025 were $(0.16), down from $0.10 in Q1 2024[12] - Total revenues for the three months ended March 31, 2025, were $712.1 million, a decrease of 7.4% from $769.1 million in the same period of 2024[28] - The net loss attributable to Werner for the three months ended March 31, 2025, was $10.1 million, compared to a net income of $6.3 million in the same period of 2024[28] - For the three months ended March 31, 2025, the company reported a net loss of $10.1 million, resulting in a basic and diluted loss per share of $0.16[79] - The reportable segment operating loss for Truckload Transportation Services was $916,000, and for Werner Logistics, it was $475,000, leading to a consolidated operating loss of $5.8 million[87] Operating Expenses - Total operating expenses decreased to $717,946 in Q1 2025 from $753,492 in Q1 2024, reflecting a reduction of 4.7%[12] - Operating expenses for the consolidated entity totaled $717,946,000 in Q1 2025, down 4.7% from $753,492,000 in Q1 2024[96] - Fuel expenses for the consolidated entity decreased by 18.7% to $63,092,000 in Q1 2025 from $77,622,000 in Q1 2024[96] - Salaries, wages, and benefits decreased by $22.2 million or 8.4% in Q1 2025 compared to Q1 2024, due to fewer company tractor miles and lower non-driver pay[10][11] - Insurance and claims expenses increased by 20.4% to $43.6 million in Q1 2025 compared to Q1 2024, driven by higher expenses for large dollar liability claims[8][9] - Other operating expenses increased by $0.7 million in Q1 2025 compared to Q1 2024, with gains on sales of property and equipment decreasing from $3.6 million to $2.8 million[125] Cash Flow and Liquidity - Cash and cash equivalents increased to $51,951 at the end of Q1 2025, up from $40,752 at the end of Q4 2024[17] - Net cash provided by operating activities was $29,370 in Q1 2025, a decrease of 66.8% from $88,585 in Q1 2024[19] - Cash flow from operations was $29.4 million in Q1 2025, a decrease of 66.8% or $59.2 million compared to the same period in 2024[132] - As of March 31, 2025, the company had total available borrowing capacity of $725.3 million[66] Assets and Liabilities - Total assets decreased to $2,986,649 as of March 31, 2025, from $3,052,237 at the end of 2024, a decline of 2.1%[17] - The company repaid $260,000 in long-term debt during Q1 2025, compared to $50,000 in Q1 2024[19] - The balance of accounts receivable, trade, net, was $387.1 million as of March 31, 2025, compared to $391.7 million at December 31, 2024[29] - Contract liabilities increased to $2.0 million at March 31, 2025, from $1.4 million at December 31, 2024[30] - Total debt amounted to $640 million, with a weighted average interest rate of 5.17% for the Loan Security Agreement (LSA)[66] Segment Performance - Truckload Transportation Services revenue was $501.9 million, down from $551.1 million year-over-year, representing a decline of 8.9%[28] - Operating revenues from the United States were $675.2 million, compared to $721.9 million in the prior year, reflecting a decrease of 6.5%[28] - Operating loss for the TTS segment was $0.9 million in Q1 2025, a significant decline from an operating income of $20.8 million in Q1 2024, resulting in a decrease in operating margin from 3.8% to (0.2)%[4][5] - The Werner Logistics segment's operating income was not specified, but it is noted that the segment is less asset-intensive and relies on third-party capacity providers[95] Investments and Capital Expenditures - The company has committed to property and equipment purchases of approximately $94.4 million as of March 31, 2025[69] - Net capital expenditures are estimated to be between $185 million and $235 million in 2025, compared to $234.9 million in 2024[133] Compliance and Internal Controls - The company was in compliance with financial covenants related to its $1.075 billion unsecured credit facility as of March 31, 2025[61] - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected the company's internal controls[146] - The management has confidence in the internal controls and procedures, although they acknowledge that these controls cannot prevent all errors or fraud[147] - The company’s disclosure controls and procedures are deemed effective at a reasonable assurance level for timely reporting to the SEC[145] Litigation and Risk Factors - The company recorded a liability of $45.8 million related to a jury verdict from a lawsuit, with a corresponding receivable of $79.2 million from insurance providers[74] - The company is involved in ongoing litigation, including class action claims, but management does not believe these will materially affect financial results[76] - There have been no material changes from the risk factors disclosed in the 2024 Form 10-K, indicating stability in the company's risk profile[151]