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J.B. Hunt Transport Services (Nasdaq: JBHT) | Company Profile, History, Competitors

 

J.B. Hunt Transport Services (NASDAQ: JBHT) is one of the largest transportation and delivery companies in North America. It provides logistical services to help haul freight across North America. The company was founded in 1961 and based in Lowell, AR.

The company was founded in 1961 by Johnnie Bryan Hunt and started with five trucks. Today, it is one of the largest transportation companies in the United States.

Business Overview

JB Hunt operates in four main segments:
  • Intermodal (57% of 2017 Revenues): Provides transport of containers from railroads to trucking.
  • Dedicated Contract Services (25% of 2017 Revenues): Provides final mile delivery logistics.
  • Integrated Capacity Solutions (15% of 2017 Revenues): Brokerage service connecting shippers with third-party carriers.
  • Truck (13% of 2017 Revenues): Operates own fleet of trucks and tractors for delivery services.

Intermodal Segment

JB Hunt is the largest intermodal service provider in North America with a fleet of 66,000 domestic intermodal containers. JB Hunt uses the large Class I rail carriers to move its customers' freight over rails in JB Hunt owned containers. JB Hunt also performs drayage, where it moves the containers from the rail to company-owned trucks.

JB Hunt first entered into the intermodal business in 1989, when it struck a partnership with BNSF's predecessor ATSF. Since then, it has increased from 40,000 loads in 1991 to 2 million loads in 2017.[1]

Dedicated Contract Services Segment

JB Hunt provides dedicated equipment, drivers and services to customers for last mile logistics needs.

JB Hunt focuses on four parts of the supply chain:
  • Replenishment: Moving inventory from distribution centers to retailers
  • Specialized: Requiring highly specialized equipment not available in the open market
  • Delivery: Taking inventory directly to the residential/commercial end user
  • Capacity: Providing committed truckload capacity to customers
JB Hunt operates under long term 3-10 year cost plus contracts.

Integrated Capacity Solutions (ICS) Segment

JB Hunt manages 24 sales offices which connects shippers with thousands of third-party carriers.

In the ICS division, JB Hunt does not own equipment. JB Hunt serves as an intermediary to connect customers with independent carriers.

Truckload Segment

JB Hunt provides delivery services using its trucks and trailers. This does not include transportation over rail.

Competitors

JB Hunt's main competitors are Swift Transportation, Werner Enterprises and Hub Group.

History

The company was founded in 1961 by Johnnie Bryan Hunt and started with five trucks. In 1983, the company went public.

Management

John Roberts (CEO): John Roberts serves as CEO since 2011. Prior, he served in various roles at JB Hunt including EVP Dedicated Contract Services and VP Marketing & Strategy, 

David G Mee (CFO): David Mee serves as CFO since 2009. Prior, he served in various roles at JB Hunt including SVP Tax & RIsk Management and VP Tax.

Financials

 $ USD in millions     2013     2014  2015  2016  2017
 Revenues  $5,585  $6,165  $6,188  $6,556  $7,190 
 Gross Profit  $729  $823   $926   $952   $942 
 Operating Profit  $576  $632   $716   $721   $624 
 Net Income $342  $375  $427   $432   $686 
 EPS $2.92  $3.20  $3.69  $3.84  $6.24