Intermodal (JBI) load volumes during the first quarter 2024 were flat compared to the same period 2023, primarily driven by competition from over-the-road truck options in the eastern network.

Dedicated Contract Services (DCS) segment revenue decreased 2% to $860 million in the first quarter 2024 from $879 million in 2023. Average revenue producing trucks decreased 1% and productivity, defined as revenue per truck per week, decreased 1% when compared to the first quarter 2023.

Integrated Capacity Solutions (ICS) segment revenue decreased 26% to $285 million in the first quarter 2024, from $385 million in 2023. Overall volumes decreased 22% compared to the first quarter 2023.

The company is addressing the revenue decline by managing costs, as seen in the decrease in salaries, wages, and employee benefits costs by 2.1% during the first quarter 2024, compared with 2023. This decrease was primarily related to decreased driver and office employee headcounts.

Final Mile Services (FMS) segment revenue increased 2% to $229 million in the first quarter 2024 from $225 million in 2023, primarily due to the addition of multiple new customer contracts implemented over the past year and internal efforts to improve revenue quality across certain accounts. FMS segment had operating income of $15.1 million in the first quarter 2024 compared to $6.6 million in 2023.

The company states that their financing arrangements require them to maintain certain covenants and financial ratios, and that they were compliant with all covenants and financial ratios at March 31, 2024.

The company states that their business can be significantly impacted by economic conditions, customer business cycles, and seasonal factors.

The company states that their operations are subject to various environmental laws and regulations, including legislative and regulatory responses to climate change, and that compliance with environmental requirements could result in significant expenditures.

The company states that they depend on third parties in the operation of their business.

Intermodal (JBI) load volumes were flat due to competition from over-the-road truck options, indicating a shift in competitive dynamics.

JBT segment revenue totaled $178 million for the first quarter 2024, a decrease of 13% from $206 million in first quarter 2023. Revenue excluding fuel surcharge revenue decreased 13% primarily due to a 9% decrease in revenue per load excluding fuel surcharge revenue and a 5% decrease in load volume, partially offset by a 6% increase in average length of haul compared to first quarter 2023.

ICS segment revenue decreased 26% due to a 22% decrease in overall volumes and a 5% decrease in revenue per load, indicating pricing pressure and competitive challenges.

Salaries, wages and employee benefits costs decreased 2.1% during the first quarter 2024, compared with 2023. This decrease was primarily related to decreased driver and office employee headcounts.

Fuel costs decreased 11.4% in 2024, compared with 2023, due primarily to a decrease in the price of fuel and decreased road miles.

Insurance and claims expense increased 7.6% in 2024 compared with 2023, primarily due to higher insurance policy premiums expense, partially offset by lower claim volume.

The company continues to invest in J.B. Hunt 360, their online platform that offers shippers and carriers greater access, visibility and transparency of the supply chain.

Approximately $106 million of first quarter 2024 ICS revenue was executed through the Marketplace for J.B. Hunt 360 compared to $251 million in the first quarter 2023.

The company acknowledges that they rely significantly on their information technology systems, and that a disruption, failure or security breach of which or inability to keep pace with technological advances could have a material adverse effect on their business.

The company purchased approximately 126,000 shares, or $25.1 million, of their common stock under their repurchase authorization during the three months ended March 31, 2024.

On April 25, 2024, the Board of Directors declared a regular quarterly dividend of $0.43 per common share, which will be paid on May 24, 2024, to shareholders of record on May 10, 2024.

The company expects to spend in the range of $800 million to $1.0 billion for net capital expenditures during the full calendar year 2024.

The company states that their operations are subject to various environmental laws and regulations, including legislative and regulatory responses to climate change. Compliance with environmental requirements could result in significant expenditures and the violation of these regulations could result in substantial fines or penalties.

The company states that their business can be significantly impacted by economic conditions, customer business cycles, and seasonal factors.

The company states that they continue to evaluate the possible effects of current economic conditions and reasonable and supportable economic forecasts on operational cash flows, including the risks of declines in the overall freight market and their customers' liquidity and ability to pay. They regularly monitor working capital and maintain frequent communication with their customers, suppliers and service providers.

The company states that extreme or unusual weather conditions can disrupt their operations, impact freight volumes, and increase their costs, all of which could have a material adverse effect on their business results.