QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
PART I | ||
Item 1. |
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Page 4 | ||
Page 5 | ||
Page 6 | ||
Page 7 | ||
Page 8 | ||
Page 10 | ||
Page 18 | ||
Page 30 | ||
Item 4. |
Page 30 | |
PART II – | ||
Item 1. |
Page 31 | |
Item 1A. |
Page 31 | |
Page 32 | ||
Item 6. |
Page 32 | |
Page 34 | ||
EX – 31.1 Section 302 CEO Certification |
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EX – 31.2 Section 302 CFO Certification |
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EX – 32.1 Section 906 CEO Certification |
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EX – 32.2 Section 906 CFO Certification |
June 26, 2021 |
December 26, 2020 |
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ASSETS | ||||||||
Current Assets |
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Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
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Trade accounts receivable, less allowance of $ |
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Other receivables, including advances to independent contractors, less allowance of $ |
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Other current assets |
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Total current assets |
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Operating property, less accumulated depreciation and amortization of $ |
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Goodwill |
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Other assets |
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Total assets |
$ | $ | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities |
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Cash overdraft |
$ | $ | ||||||
Accounts payable |
||||||||
Current maturities of long-term debt |
||||||||
Insurance claims |
||||||||
Dividends payable |
— | |||||||
Other current liabilities |
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Total current liabilities |
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Long-term debt, excluding current maturities |
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Insurance claims |
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Deferred income taxes and other noncurrent liabilities |
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Shareholders’ Equity |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Cost of |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
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|
|||||
Total shareholders’ equity |
||||||||
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|
|
|
|||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
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|
|
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
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June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
|||||||||||||
Revenue |
$ | $ | $ | $ | ||||||||||||
Investment income |
||||||||||||||||
Costs and expenses: |
||||||||||||||||
Purchased transportation |
||||||||||||||||
Commissions to agents |
||||||||||||||||
Other operating costs, net of gains on asset sales/dispositions |
||||||||||||||||
Insurance and claims |
||||||||||||||||
Selling, general and administrative |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Impairment of intangible and other assets |
||||||||||||||||
Total costs and expenses |
||||||||||||||||
Operating income |
||||||||||||||||
Interest and debt expense |
||||||||||||||||
Income before income taxes |
||||||||||||||||
Income taxes |
||||||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Diluted earnings per share |
$ | $ | $ | $ | ||||||||||||
Average diluted shares outstanding |
||||||||||||||||
Dividends per common share |
$ | $ | $ | $ | ||||||||||||
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
|||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Unrealized holding (losses) gains on available-for-sale |
( |
) | ( |
) | ||||||||||||
Foreign currency translation gains (losses) |
( |
) | ||||||||||||||
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|
|
|
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|
|||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||||||
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Comprehensive income |
$ | $ | $ | $ | ||||||||||||
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|
|
|
Twenty Six Weeks Ended |
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June 26, 2021 |
June 27, 2020 |
|||||||
OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization of operating property and intangible assets |
||||||||
Non-cash interest charges |
||||||||
Provisions for losses on trade and other accounts receivable |
||||||||
Gains on sales/disposals of operating property |
( |
) | ( |
) | ||||
Impairment of intangible and other assets |
||||||||
Deferred income taxes, net |
||||||||
Stock-based compensation |
||||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in trade and other accounts receivable |
( |
) | ||||||
Increase in other assets |
( |
) | ( |
) | ||||
Increase (decrease) in accounts payable |
( |
) | ||||||
Increase in other liabilities |
||||||||
(Decrease) increase in insurance claims |
( |
) | ||||||
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|
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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|
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INVESTING ACTIVITIES |
||||||||
Net changes in other short-term investments |
||||||||
Sales and maturities of investments |
||||||||
Purchases of investments |
( |
) | ( |
) | ||||
Purchases of operating property |
( |
) | ( |
) | ||||
Proceeds from sales of operating property |
||||||||
Consideration paid for acquisition |
( |
) | ||||||
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|
|||||
NET CASH USED BY INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
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|
|||||
FINANCING ACTIVITIES |
||||||||
Decrease in cash overdraft |
( |
) | ( |
) | ||||
Dividends paid |
( |
) | ( |
) | ||||
Proceeds from exercises of stock options |
||||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans |
( |
) | ( |
) | ||||
Purchases of common stock |
( |
) | ( |
) | ||||
Principal payments on finance lease obligations |
( |
) | ( |
) | ||||
Payment of deferred consideration |
( |
) | ||||||
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|
|||||
NET CASH USED BY FINANCING ACTIVITIES |
( |
) | ( |
) | ||||
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|
|||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
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|
|||||
Decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at beginning of period |
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|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
|
|
|
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock at Cost |
Accumulated Other Comprehensive (Loss) Income |
||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Total |
||||||||||||||||||||||||||||
Balance December 26, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock- b ased compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
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Balance March 27, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
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Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive income |
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|
|||||||||||||||||
Balance June 26, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock at Cost |
Accumulated Other Comprehensive (Loss) Income |
||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Total |
||||||||||||||||||||||||||||
Balance December 28, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
Adoption of accounting standard |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to based |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||||
Balance March 28, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
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Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||
|
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|
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|
|||||||||||||||||
Balance June 27, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
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|
(1) |
Significant Accounting Policies |
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
Mode |
June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
||||||||||||
Truck – BCO Independent Contractors |
% |
% |
% |
% | ||||||||||||
Truck – Truck Brokerage Carriers |
% |
% |
% |
% | ||||||||||||
Rail intermodal |
% |
% |
% |
% | ||||||||||||
Ocean and air cargo carriers |
% |
% |
% |
% | ||||||||||||
Truck Equipment Type |
||||||||||||||||
Van equipment |
$ |
$ |
$ |
$ |
||||||||||||
Unsided/platform equipment |
$ |
$ |
$ |
$ |
||||||||||||
Less-than-truckload |
$ |
$ |
$ |
$ |
(2) |
Share-based Payment Arrangements |
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
|
June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
||||||||||||
Total cost of the Plans during the period |
|
$ |
$ |
$ |
$ |
|||||||||||
Amount of related income tax benefit recognized during the period |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cost of the Plans during the period |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
Number of |
Weighted Average Grant Date |
|||||||
RSUs |
Fair Value |
|||||||
Outstanding at December 26, 2020 |
$ | |||||||
Granted |
$ | |||||||
Shares earned in excess of target (1) |
$ | |||||||
Vested shares |
( |
) | $ | |||||
|
|
|||||||
Outstanding at June 26, 2021 |
$ | |||||||
|
|
(1) |
Represents shares earned in excess of target under the May 1, 2015 RSU award as total shareholder return exceeded the target under the award. |
Number of Shares and Deferred Stock Units |
Weighted Average Grant Date Fair Value |
|||||||
Non-vested at December 26, 2020 |
$ | |||||||
Granted |
$ | |||||||
Vested |
( |
) | $ | |||||
|
|
|||||||
Non-vested at June 26, 2021 |
$ | |||||||
|
|
Number of Options |
Weighted Average Exercise Price per Share |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value (000s) |
|||||||||||||
Options outstanding at December 26, 2020 |
$ | |||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
Options outstanding at June 26, 2021 |
$ | $ | ||||||||||||||
Options exercisable at June 26, 2021 |
$ | $ | ||||||||||||||
(3) |
Income Taxes |
(4) |
Earnings Per Share |
(5) |
Additional Cash Flow Information |
(6) |
Segment Information |
Twenty Six Weeks Ended |
||||||||||||||||||||||||
June 26, 2021 |
June 27, 2020 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
||||||||||||||||||||||||
Goodwill |
Thirteen Weeks Ended |
||||||||||||||||||||||||
June 26, 2021 |
June 27, 2020 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | $ | $ | $ | $ | $ |
||||||||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
(7) |
Other Comprehensive Income |
Unrealized Holding Gains (Losses) on Available-for-Sale Securities |
Foreign Currency Translation |
Total |
||||||||||
Balance as of December 26, 2020 |
$ | $ | ( |
) | $ | ( |
) | |||||
Other comprehensive (loss) gain |
( |
) | ||||||||||
Balance as of June 26, 2021 |
$ | $ | ( |
) | $ | ( |
) | |||||
(8) |
Investments |
Gross |
Gross |
|||||||||||||||
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
June 26, 2021 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | — | ||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 26, 2020 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
||||||||||||||||
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
|||||||||||||||||||
June 26, 2021 |
||||||||||||||||||||||||
Corporate bonds and direct obligations of government agencies |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
December 26, 2020 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(9) |
Leases |
Finance leases: |
||||
Amortization of right-of-use |
$ | |||
Interest on lease liability |
||||
|
|
|||
Total finance lease cost |
||||
Operating leases: |
||||
Lease cost |
||||
Variable lease cost |
— | |||
Sublease income |
( |
) | ||
|
|
|
|
|
Total net operating lease income |
( |
) | ||
|
|
|||
Total net lease cost |
$ | |||
|
|
Assets: |
||||||
Operating lease right-of-use |
Other assets | $ | ||||
Finance lease assets |
Operating property, less accumulated depreciation and amortization | |||||
Total lease assets |
$ | |||||
Liabilities: |
Finance Leases |
Operating Leases |
|||||||
2021 Remainder |
$ | $ | ||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
— | — | ||||||
Total future minimum lease payments |
||||||||
Less amount representing interest ( |
||||||||
Present value of minimum lease payments |
$ | $ | ||||||
Current maturities of long-term debt |
||||||||
Long-term debt, excluding current maturities |
||||||||
Other current liabilities |
||||||||
Deferred income taxes and other noncurrent liabilities |
Finance Leases |
Operating Leases |
|||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
% | % |
(10) |
Debt |
(11) |
Commitments and Contingencies |
(12) |
Change in Accounting Estimate for Self-Insured Claims |
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
|||||||||||||
Operating income |
$ | $ | $ | $ | ||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Diluted earnings per share |
$ | $ | $ | $ |
(13) |
Impairment of Intangible and Other Assets |
Twenty Six Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
June 26, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 |
|||||||||||||
Revenue generated through (in thousands): |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
$ | 1,798,061 | $ | 1,028,334 | $ | 970,874 | $ | 483,027 | ||||||||
Unsided/platform equipment |
784,883 | 533,716 | 444,251 | 247,388 | ||||||||||||
Less-than-truckload |
54,732 | 45,859 | 29,062 | 22,918 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total truck transportation |
2,637,676 | 1,607,909 | 1,444,187 | 753,333 | ||||||||||||
Rail intermodal |
76,068 | 51,315 | 44,360 | 23,186 | ||||||||||||
Ocean and air cargo carriers |
107,840 | 57,250 | 60,240 | 30,663 | ||||||||||||
Other (1) |
36,668 | 34,606 | 21,931 | 16,332 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,858,252 | $ | 1,751,080 | $ | 1,570,718 | $ | 823,514 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation |
$ | 1,209,056 | $ | 809,779 | $ | 648,942 | $ | 378,500 | ||||||||
Number of loads: |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
777,921 | 600,519 | 409,048 | 285,174 | ||||||||||||
Unsided/platform equipment |
275,754 | 231,122 | 149,489 | 110,533 | ||||||||||||
Less-than-truckload |
85,095 | 78,079 | 44,403 | 39,723 | ||||||||||||
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Total truck transportation |
1,138,770 | 909,720 | 602,940 | 435,430 | ||||||||||||
Rail intermodal |
26,800 | 21,510 | 15,100 | 9,970 | ||||||||||||
Ocean and air cargo carriers |
19,460 | 14,430 | 10,230 | 7,360 | ||||||||||||
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1,185,030 | 945,660 | 628,270 | 452,760 | |||||||||||||
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