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Werner Enterprises, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in operating revenues to $745,701,000 from $817,744,000 in the same quarter the previous year. The decrease is attributed to reduced revenues in both the Truckload Transportation Services (TTS) and Werner Logistics segments.
Trucking revenues, net of fuel surcharge, decreased 6.7% due to a 9.9% decrease in the average number of tractors in service, partially offset by a 3.5% increase in average revenues per tractor per week.
Werner Logistics revenues decreased 10.2% compared to the previous year, impacted by ongoing pricing pressure in the market.
Operating expenses totaled $728,106,000, representing 97.6% of operating revenues, compared to 95.4% in the same quarter the previous year. This increase in the operating ratio is due to higher expenses in several categories, including salaries, wages, and benefits.
Net income for the quarter was $6,540,000, down from $23,504,000 in the previous year. After accounting for noncontrolling interest, net income attributable to Werner was $6,565,000.
Cash provided by operating activities was $258,700,000, while cash used in investing and financing activities was $206,469,000 and $56,421,000, respectively.
Werner had a working capital of $546,966,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a $1.075 billion unsecured credit facility and interest rate swap agreements to manage exposure to interest rate fluctuations.
Werner does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Werner continues to focus on maintaining its fleet size and optimizing operations in response to market conditions, with a potential decrease in the TTS segment fleet size expected by the end of 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Werner Enterprises Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.