Werner Enterprises Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Werner Enterprises Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

WERNER ENTERPRISES INC (WERN) filed a Annual Report (10-K) with the SEC on February 26, 2024. Werner Enterprises Inc. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company is incorporated in Nebraska (NE) and its fiscal year ends on December 31. The SIC code for Werner Enterprises Inc. is 4213 (TRUCKING (NO LOCAL)). The filing was submitted on February 26, 2024.

Why It Matters

For investors and stakeholders tracking WERNER ENTERPRISES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Werner Enterprises' financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. Understanding the details within this report allows for an informed evaluation of the company's revenue streams, assets, liabilities, and any identified risks, which are essential for investment decisions and competitive analysis in the trucking industry.

Risk Assessment

Risk Level: medium — WERNER ENTERPRISES INC shows moderate risk based on this filing. The company's filing indicates potential customer concentration risk, as it references 'TenLargestCustomersMember' for both 2022 and 2023, suggesting a reliance on a limited number of major clients which could impact revenue stability.

Analyst Insight

Investors should analyze the revenue breakdown and customer concentration details in the full 10-K to assess the stability and diversification of Werner Enterprises' income streams.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-26 — Filing Date (Date of submission)
• 4213 — SIC Code (Industry classification)
• NE — State of Incorporation (Legal domicile)

Key Players & Entities

• WERNER ENTERPRISES INC (company) — Filer name
• WERN (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-26 (date) — Filing date
• NE (location) — State of incorporation
• 4213 (industry) — Standard Industrial Classification
• 10-K (form) — Filing type

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company's business may be adversely affected by a concentration of revenue from a limited number of customers, as indicated by the reference to 'TenLargestCustomersMember' for multiple fiscal years.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value WERN The Nasdaq Stock Market
• $53 million — istics Group. WGL generated revenues of $53 million in 2020. Prior to the sale of WGL, Wern
• $372.0 million — quisition, ReedTMS achieved revenues of $372.0 million for the 12-month period ended September
• $81.5 million — cquisition, Baylor achieved revenues of $81.5 million for the 12-month period ended August 31
• $71 million — acquisition, NEHDS achieved revenues of $71 million for the 12-month period ended September
• $108 million — e acquisition, ECM achieved revenues of $108 million in 2020. Revenues generated by ECM are

Filing Documents

• wern-20231231.htm (10-K) — 1649KB
• wern-20231231ex21.htm (EX-21) — 18KB
• wern-20231231ex231.htm (EX-23.1) — 4KB
• wern-20231231ex311.htm (EX-31.1) — 17KB
• wern-20231231ex312.htm (EX-31.2) — 17KB
• wern-20231231ex321.htm (EX-32.1) — 6KB
• wern-20231231ex322.htm (EX-32.2) — 6KB
• wern-20231231ex97.htm (EX-97) — 19KB
• image_0a.jpg (GRAPHIC) — 139KB
• wern-20231231_g1.jpg (GRAPHIC) — 119KB
• 0000793074-24-000014.txt (&nbsp;) — 9797KB
• wern-20231231.xsd (EX-101.SCH) — 67KB
• wern-20231231_cal.xml (EX-101.CAL) — 113KB
• wern-20231231_def.xml (EX-101.DEF) — 285KB
• wern-20231231_lab.xml (EX-101.LAB) — 921KB
• wern-20231231_pre.xml (EX-101.PRE) — 583KB
• wern-20231231_htm.xml (XML) — 1270KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 11

Cybersecurity

Item 1C. Cybersecurity 11

Properties

Item 2. Properties 13

Legal Proceedings

Item 3. Legal Proceedings 14

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 14 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14

Reserved

Item 6. Reserved 16

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 26

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 27

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55

Controls and Procedures

Item 9A. Controls and Procedures 55

Other Information

Item 9B. Other Information 57

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 57 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 57

Executive Compensation

Item 11. Executive Compensation 57

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 58

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 58 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 58

Form 10-K Summary

Item 16. Form 10-K Summary 60 Table of Contents This Annual Report on Form 10-K for the year ended December 31, 2023 (this "Form 10-K") and the documents incorporated herein by reference contain forward-looking statements based on expectations, estimates and projections as of the date of this filing. Actual results may differ materially from those expressed in such forward-looking statements. For further guidance, see Item 1A of Part I and Item 7 of Part II of this Form 10-K. Unless otherwise indicated, references to "we," "us," "our," "Company," or "Werner" mean Werner Enterprises, Inc. and its subsidiaries. PART I

BUSINESS

ITEM 1. BUSINESS General We are a transportation and logistics company engaged primarily in transporting truckload shipments of general commodities in both interstate and intrastate commerce. We also provide logistics services through our Werner Logistics segment. We believe we are one of the largest truckload carriers in the United States (based on total operating revenues), and our headquarters are located in Omaha, Nebraska, near the geographic center of our truckload service area. We were founded in 1956 by Clarence L. Werner, who started the business with one truck at the age of 19. He served as our Chairman until his term ended at the 2021 Annual Meeting of Stockholders, and was then named Chairman Emeritus by the Board of Directors (the "Board") in recognition of his longstanding leadership. We were incorporated in the State of Nebraska in September 1982 and completed our initial public offering in June 1986 with a fleet of 632 trucks as of February 1986. At the end of 2023, our Truckload Transportation Services ("TTS") segment had a fleet of 8,000 trucks, of which 7,740 were company-operated and 260 were owned and operated by independent contractors. Our Werner Logistics division operated an additional 35 drayage company trucks and 115 company delivery trucks at the end of 2023. We have historically grown through organic growth, and more recently through a combination of organic growth and four business acquisitions (discussed below). Our business acquisitions expanded our fleet size, customer base, geographic market presence, and network of operational facilities. We remain open to considering acquisitions in North America truckload and logistics companies that are both additive to our business and accretive to our earnings. We have two reportable segments – TTS and Werner Logistics. Our TTS segment is comprised of Dedicated and One-Way Truckload. Dedicated had 5,265 trucks as of December 31, 2023 and provides truckload services dedicated to a specific

View Full Filing

View this 10-K filing on SEC EDGAR