Werner Enterprises Inc., the Omaha, Neb.-based truckload transportation company, reported its 10th consecutive year-over-year quarter of higher operating revenues and earnings for the first quarter
ended March 31, 2004.
Operating revenues increased 11% to $386.3 million compared to $347.2 million in first quarter 2003. Net income increased 31% to $15.6 million compared to $11.8 million in first quarter 2003. Earnings per share for first quarter 2004 were $.19 per share, or 32% higher than the $.15 per share earned in first quarter 2003.
"During first quarter, we were pleased that the demand for our services was stronger than the weaker demand of first quarter a year ago," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "Typically, we experience a noticeable decline in freight volumes from the seasonally strong fourth quarter to the seasonally weaker first quarter. However, in first quarter 2004, the normal seasonal freight decline was much lower. As the quarter progressed, freight volumes continued their expected seasonal improvement from January through March, which continued into the first half of April 2004."
"We anticipated that the new [hours of service] regulations could have an overall negative impact on our average miles per tractor due to operational changes, primarily resulting from the new 14-hour on-duty rule. However, for first quarter 2004 compared to first quarter 2003, average miles per tractor increased 1.3%, even after considering the 13% decline in average trip length," Werner said. "These excellent results are attributable to our extensive HOS planning and driver training, effective utilization of our proprietary paperless log software, improved freight demand, better throughput at customer shipping and receiving facilities, the new 34-hour restart driving rule, and one more business day in first quarter 2004 compared to first quarter 2003 (64 business days compared to 63 business days). We were very pleased that our medium-to-long haul drivers did not experience a decline in miles per truck.
"As a result of the HOS rule changes, we implemented increased accessorial rates with our customers for multiple stop shipments and tractor detention in first quarter 2004. We also increased driver pay for multiple stop shipments and unanticipated delays that cause truck downtime. Multiple stop revenue for non-dedicated shipments increased slightly from first quarter 2003 to first quarter 2004, as the increased rates per stop were offset by a 25% reduction in the number of multiple stops. Tractor detention revenue increased only slightly as many customers made operational changes to improve throughput at shipping and receiving facilities, thereby reducing tractor delays," Werner said.