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 – Financial Information | ||
Page 4 | ||
Page 5 | ||
Page 6 | ||
Page 7 | ||
Page 8 | ||
Page 9 | ||
Page 17 | ||
Page 31 | ||
Page 32 | ||
Page 32 | ||
Page 32 | ||
Page 33 | ||
Page 33 | ||
Page 35 | ||
September 25, 2021 |
December 26, 2020 |
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ASSETS | ||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
||||||||
Trade accounts receivable, less allowance of $ |
||||||||
Other receivables, including advances to independent contractors, less allowance of $ |
||||||||
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 |
||||||||
Other assets |
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|||||
Total assets |
$ | $ | ||||||
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|
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|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities |
||||||||
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 |
||||||||
Insurance claims |
||||||||
Deferred income taxes and other noncurrent liabilities |
||||||||
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 |
$ | $ | ||||||
|
|
|
|
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
September 25, 2021 |
September 26, 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 |
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|
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Total costs and expenses |
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|
|
|||||||||
Operating income |
||||||||||||||||
Interest and debt expense |
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Income before income taxes |
||||||||||||||||
Income taxes |
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|
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|
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|||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
|
|
|
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|
|||||||||
Diluted earnings per share |
$ | $ | $ | $ | ||||||||||||
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|
|||||||||
Average diluted shares outstanding |
||||||||||||||||
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|
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Dividends per common share |
$ | $ | $ | $ | ||||||||||||
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|
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|
|
|
|
|
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
September 25, 2021 |
September 26, 2020 |
|||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive (loss) income: |
||||||||||||||||
Unrealized holding (losses) gains on available-for-sale |
( |
) | ( |
) | ||||||||||||
Foreign currency translation gains (losses) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Thirty Nine Weeks Ended |
||||||||
September 25, 2021 |
September 26, 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 in trade and other accounts receivable |
( |
) | ( |
) | ||||
Increase in other assets |
( |
) | ( |
) | ||||
Increase in accounts payable |
||||||||
Increase in other liabilities |
||||||||
(Decrease) increase in insurance claims |
( |
) | ||||||
|
|
|
|
|||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||
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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 |
( |
) | ||||||
|
|
|
|
|||||
NET CASH USED BY INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
|
|
|
|
|||||
FINANCING ACTIVITIES |
||||||||
Increase (decrease) in cash overdraft |
( |
) | ||||||
Dividends paid |
( |
) | ( |
) | ||||
Payment for debt issue costs |
( |
) | ||||||
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 |
( |
) | ||||||
|
|
|
|
|||||
NET CASH USED BY FINANCING ACTIVITIES |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at beginning of period |
||||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
|
|
|
Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
(Loss) Income |
Total |
|||||||||||||||||||||||||
Balance December 26, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance March 27, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance June 26, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | — | ||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance September 25, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance December 28, 2019 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
Adoption of accounting standard |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance March 28, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance June 27, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | |||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance September 26, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 25, 2021 |
September 26, 2020 |
September 25, 2021 |
September 26, 2020 |
|||||||||||||
Mode |
||||||||||||||||
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 |
$ | $ | $ | $ | ||||||||||||
Other truck transportation (1) |
$ | $ | $ | $ |
(1) | Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 25, |
September 26, |
September 25, |
September 26, |
|||||||||||||
2021 |
2020 |
2021 |
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 |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
|
|
|||||||
Outstanding at September 25, 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 |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
|
|
|||||||
Non-vested at September 25, 2021 |
$ | |||||||
|
|
Number of Options |
Weighted Average Exercise Price Share |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value (000s) |
|||||||||||||
Options outstanding at December 26, 2020 |
$ |
|||||||||||||||
Exercised |
( |
) |
$ |
|||||||||||||
|
|
|||||||||||||||
Options outstanding at September 25, 2021 |
$ |
$ |
||||||||||||||
|
|
|||||||||||||||
Options exercisable at September 25, 2021 |
$ |
$ |
||||||||||||||
|
|
Thirty Nine Weeks Ended |
||||||||||||||||||||||||
September 25, 2021 |
September 26, 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 |
||||||||||||||||||||||||
September 25, 2021 |
September 26, 2020 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
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 September 25, 2021 |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
Gross |
Gross |
|||||||||||||||
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
September 25, 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 |
|||||||||||||||||||
September 25, 2021 |
||||||||||||||||||||||||
Asset-backed securities |
$ | |
$ | $ | — | $ | — | $ | |
$ | ||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | |
$ | — | $ | — | $ | $ | |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
December 26, 2020 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ | |||
|
|
Operating right-of-use |
Other assets | $ | ||||
Finance lease assets |
Operating property, less accumulated depreciation and amortization | |||||
Total lease assets |
$ | |||||
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 |
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Long-term debt, excluding current maturities |
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Other current liabilities |
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Deferred income taxes and other noncurrent liabilities |
Finance Leases | Operating Leases | |||||||
Weighted average remaining lease term (years) |
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Weighted average discount rate |
% | % |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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September 25, 2021 |
September 26, 2020 |
September 25, 2021 |
September 26, 2020 |
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Revenue generated through (in thousands): |
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Truck transportation |
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Truckload: |
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Van equipment |
$ | 2,502,025 | $ | 1,485,553 | $ | 918,115 | $ | 578,166 | ||||||||
Unsided/platform equipment |