J.B. Hunt Transport Services(JBHT) - 2023 Q4 - Annual Report

Revenue Performance - Total consolidated operating revenues decreased 13.4% to $12.83 billion in 2023, compared to$14.81 billion in 2022[116]. - Fuel surcharge revenues decreased 23.9% to $1.85 billion in 2023, compared to$2.43 billion in 2022[116]. - Operating revenue for the JBI segment was $6.208 billion in 2023, down from$7.022 billion in 2022[123]. - Total segment revenues were $12.848 billion in 2023, compared to$14.848 billion in 2022[123]. - JBI segment revenue decreased 12% to $6.21 billion in 2023, down from$7.02 billion in 2022, primarily due to an 11% decrease in revenue per load and a 1% decrease in load volume[125]. - DCS segment revenue increased 1% to $3.54 billion in 2023, with productivity defined as revenue per truck per week decreasing by 1$1.39 billion in 2023, with overall volumes down 26% and revenue per load down 20%[129]. - FMS segment revenue decreased 12% to $918 million in 2023, mainly due to decreased customer demand[131]. - JBT segment revenue decreased 16$789 million in 2023, with a 19% decrease in revenue per load excluding fuel surcharges[134]. Operating Income - Consolidated operating expenses decreased 12.2% from 2022, resulting in a 2023 operating ratio of 92.3% compared to 91.0% in 2022[117]. - Operating income for the total segments decreased to $993 million in 2023 from$1.332 billion in 2022[123]. - Operating income for the JBI segment fell to $569 million in 2023 from$800 million in 2022, attributed to decreased revenue and increased costs[126]. - Operating income for the DCS segment rose to $405 million in 2023 from$361 million in 2022, driven by maturing long-term customer contracts[128]. - ICS segment reported an operating loss of $44 million in 2023 compared to operating income of$57 million in 2022, primarily due to decreased revenue and integration costs from the BNSFL acquisition[130]. - Operating income for the FMS segment increased to $47 million in 2023 from$37 million in 2022, attributed to improvements in revenue quality and cost management[133]. - Operating income for the JBT segment decreased to $16 million in 2023 from$77 million in 2022, driven by decreased revenue and increased costs[135]. Expenses and Costs - Rents and purchased transportation costs decreased 20.6% in 2023, primarily due to lower rates and decreased load volume[118]. - Salaries, wages, and employee benefits decreased 3.4% in 2023, attributed to lower headcounts and incentive compensation[118]. - Net interest expense increased by 16.2% in 2023 due to higher effective interest rates and increased average debt balance[122]. - Income tax expense decreased 33.8% in 2023, primarily due to decreased taxable earnings and a discrete benefit from a tax position settlement[122]. Cash Flow and Investments - Net cash provided by operating activities totaled $1.74 billion in 2023, a decrease from$1.78 billion in 2022, mainly due to decreased earnings of approximately $241 million[155]. - Net cash used in investing activities increased to$1.69 billion in 2023 from $1.55 billion in 2022, primarily due to higher equipment purchases[156]. - The company is committed to spend approximately$868 million on equipment acquisitions during 2024 and 2025, with an additional $381 million thereafter[164]. - At December 31, 2023, the company had a cash balance of$53.3 million and an outstanding balance of $130 million on the revolving line of credit[160]. Dividends and Interest Rate Impact - The company paid a quarterly dividend of$0.42 per share in 2023, with an increase to $0.43 announced for 2024[158]. - A one-percentage-point increase in the applicable interest rate would reduce annual pretax earnings by$6.3 million, based on current borrowing levels[165].