• Landstar System Reports First Quarter Revenue Of $1.436B And First Quarter Diluted Earnings Per Share Of $2.17

    来源: Nasdaq GlobeNewswire / 26 4月 2023 16:15:00   America/New_York

    JACKSONVILLE, Fla., April 26, 2023 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) reported diluted earnings per share (“DEPS”) of $2.17 in the 2023 first quarter on revenue of $1.436 billion. Landstar reported DEPS of $3.34 on revenue of $1.971 billion in the 2022 first quarter.

    Gross profit in the 2023 first quarter was $152.9 million and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2023 first quarter was $208.7 million. Gross profit in the 2022 first quarter was $214.6 million and variable contribution in the 2022 first quarter was $270.5 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2023 and 2022 first quarters are provided in the Company’s accompanying financial disclosures.

    Trailing twelve month return on average shareholders’ equity was 44 percent and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 38 percent. During the 2023 first quarter, Landstar purchased approximately 90,000 shares of its common stock at an aggregate cost of $15.4 million. The Company is currently authorized to purchase up to 2,910,339 shares of the Company’s common stock under its previously announced share purchase programs. Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.30 per share payable on May 26, 2023, to stockholders of record as of the close of business on May 4, 2023. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.  

    Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2023 first quarter was $1,323.7 million, or 92 percent of revenue, compared to $1,751.3 million, or 89 percent of revenue, in the 2022 first quarter. Truckload transportation revenue hauled via van equipment in the 2023 first quarter was $755.1 million, compared to $1,081.2 million in the 2022 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2023 first quarter was $377.6 million, compared to $408.8 million in the 2022 first quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2023 first quarter was $159.5 million, compared to $227.6 million in the 2022 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $86.8 million, or 6 percent of revenue, in the 2023 first quarter, compared to $194.7 million, or 10 percent of revenue, in the 2022 first quarter.

    “Given a challenging freight environment to begin our 2023 fiscal year, I am pleased with Landstar’s first quarter financial performance,” said Landstar President and Chief Executive Officer Jim Gattoni. “As we expected, our record 2022 first quarter also made for difficult comparisons during our 2023 first quarter. As compared to the 2022 first quarter, revenue generated via unsided/platform equipment held up considerably better than revenue generated via van equipment and other truck transportation services, which tend to be more correlated to U.S. consumer demand. Our truck services, which primarily operate in the U.S. spot market, experienced pricing pressure throughout the 2023 first quarter as industry-wide truck capacity was significantly more readily available as compared to the 2022 first quarter, during which pandemic-related supply chain disruption was at a high point. As a result, revenue per load on loads hauled via truck decreased 14% in the 2023 first quarter compared to the 2022 first quarter. However, it should be noted that revenue per load on loads hauled via truck only decreased 3.5% in the 2023 first quarter compared to the 2022 fourth quarter. This performance was reasonably in-line with sequential historical patterns experienced during pre-pandemic periods (with 2018 being an exception due to the impact of the December 2017 federal mandate requiring use of electronic logging devices). Truck load volumes also decreased quarter-over-prior-year-quarter, with the number of loads hauled via truck in the 2023 first quarter below the 2022 first quarter by 12%.”

    Gattoni further commented, “Through the first several weeks of April, truck revenue per load has thus far sequentially trended slightly below first quarter to the beginning of second quarter pre-pandemic, historical patterns, while the number of loads hauled via truck through the first several weeks of the 2023 second quarter has sequentially trended a bit further below these historical patterns. After several years where past trends were less applicable in light of the impact of the pandemic, I anticipate that as we move into May, we will begin to experience truck revenue per load and truck load volume sequential trends closer to pre-pandemic, historical patterns. Assuming that truck revenue per load and truck load volume sequential trends are in fact closer to pre-pandemic, historical patterns, I expect revenue per load on loads hauled via truck to be in a range of 12% to 14% below the 2022 second quarter and the number of loads hauled via truck to be in a range of 14% to 16% below the 2022 second quarter. As such, I anticipate revenue for the 2023 second quarter to be in a range of $1.40 billion to $1.45 billion.”

    Gattoni concluded, “Based on the range of revenue estimated for the 2023 second quarter, I would anticipate DEPS to be in a range of $1.90 to $2.00. During the 2023 first quarter, DEPS was favorably impacted by a lower effective income tax rate and increased net interest income, partially offset by insurance and claims expense at 5.3% of BCO revenue. The anticipated range of DEPS for the 2023 second quarter includes insurance and claims expense estimated to be similar to the insurance and claims expense reported in the 2023 first quarter and an effective income tax rate of 24.4%.”

    Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s First Quarter 2023 Earnings Release Conference Call.”

    About Landstar:
    Landstar System, Inc., a Fortune 500 company, is a worldwide, technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.

    Non-GAAP Financial Measures:
    In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.

    Forward Looking Statements Disclaimer:
    The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2022 fiscal year; the impact of the coronavirus (COVID-19) pandemic; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; U.S. trade relationships; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2022 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.


              
    Landstar System, Inc. and Subsidiary 
    Consolidated Statements of Income 
    (Dollars in thousands, except per share amounts) 
    (Unaudited) 
              
              
          Thirteen Weeks Ended 
          April 1, March 26, 
           2023   2022 
              
    Revenue   $1,435,675  $1,970,599 
    Investment income   1,368   721 
              
    Costs and expenses:      
     Purchased transportation  1,101,294   1,550,330 
     Commissions to agents  125,675   149,778 
     Other operating costs, net of gains on asset sales/dispositions  12,378   11,141 
     Insurance and claims   27,647   30,768 
     Selling, general and administrative  53,567   52,713 
     Depreciation and amortization  15,198   13,757 
              
      Total costs and expenses  1,335,759   1,808,487 
              
    Operating income   101,284   162,833 
    Interest and debt (income) expense  (726)  1,123 
              
    Income before income taxes  102,010   161,710 
    Income taxes    23,815   36,871 
              
    Net income   $78,195  $124,839 
              
    Diluted earnings per share $2.17  $3.34 
              
    Average diluted shares outstanding  35,982,000   37,418,000 
              
    Dividends per common share $0.30  $0.25 
              



               
    Landstar System, Inc. and Subsidiary 
    Consolidated Balance Sheets 
    (Dollars in thousands, except per share amounts) 
    (Unaudited) 
               
               
           April 1, December 31, 
            2023   2022  
    ASSETS        
    Current assets:       
     Cash and cash equivalents  $340,987  $339,581  
     Short-term investments   47,168   53,955  
     Trade accounts receivable, less allowance    
      of $12,577 and $12,121   899,811   967,793  
     Other receivables, including advances to independent    
      contractors, less allowance of $11,758 and $10,579 53,242   56,235  
     Other current assets   12,684   21,826  
      Total current assets   1,353,892   1,439,390  
               
    Operating property, less accumulated depreciation    
       and amortization of $406,648 and $393,274 306,224   314,990  
    Goodwill     41,726   41,220  
    Other assets    136,018   136,279  
    Total assets   $1,837,860  $1,931,879  
               
    LIABILITIES AND SHAREHOLDERS' EQUITY    
    Current liabilities:      
     Cash overdraft  $66,195  $92,953  
     Accounts payable   490,304   527,372  
     Current maturities of long-term debt 33,801   36,175  
     Insurance claims   50,064   50,836  
     Dividends payable   -   71,854  
     Other current liabilities   100,980   98,945  
      Total current liabilities   741,344   878,135  
               
    Long-term debt, excluding current maturities 60,191   67,225  
    Insurance claims   57,974   58,268  
    Deferred income taxes and other non-current liabilities 42,699   41,030  
               
    Shareholders' equity:      
     Common stock, $0.01 par value, authorized 160,000,000    
      shares, issued 68,483,963 and 68,382,310 685   684  
     Additional paid-in capital   253,138   258,487  
     Retained earnings   2,703,349   2,635,960  
     Cost of 32,550,852 and 32,455,300 shares of common    
      stock in treasury   (2,009,327)  (1,992,886) 
     Accumulated other comprehensive loss (12,193)  (15,024) 
      Total shareholders' equity   935,652   887,221  
    Total liabilities and shareholders' equity$1,837,860  $1,931,879  
               



     Landstar System, Inc. and Subsidiary 
     Supplemental Information 
     (Unaudited) 
                
                
         Thirteen Weeks Ended    
         April 1, March 26,    
          2023   2022     
    Revenue generated through (in thousands):        
                
     Truck transportation        
      Truckload:        
       Van equipment $755,083  $1,081,206     
       Unsided/platform equipment  377,564   408,757     
      Less-than-truckload  31,558   33,720     
      Other truck transportation (1)  159,503   227,601     
       Total truck transportation  1,323,708   1,751,284     
     Rail intermodal  25,657   42,688     
     Ocean and air cargo carriers  61,093   152,057     
     Other (2)  25,217   24,570     
         $1,435,675  $1,970,599     
                
     Revenue on loads hauled via BCO Independent Contractors (3)        
      included in total truck transportation $519,526  $727,574     
                
    Number of loads:        
                
     Truck transportation        
      Truckload:        
       Van equipment  331,954   376,268     
       Unsided/platform equipment  127,572   131,829     
      Less-than-truckload  46,192   47,843     
      Other truck transportation (1)  58,062   85,930     
       Total truck transportation  563,780   641,870     
     Rail intermodal  7,760   12,630     
     Ocean and air cargo carriers  8,440   11,560     
          579,980   666,060     
                
     Loads hauled via BCO Independent Contractors (3)        
      included in total truck transportation  232,550   262,240     
                
    Revenue per load:        
                
     Truck transportation        
      Truckload:        
       Van equipment $2,275  $2,873     
       Unsided/platform equipment  2,960   3,101     
      Less-than-truckload  683   705     
      Other truck transportation (1)  2,747   2,649     
       Total truck transportation  2,348   2,728     
     Rail intermodal  3,306   3,380     
     Ocean and air cargo carriers  7,239   13,154     
                
     Revenue per load on loads hauled via BCO Independent Contractors (3) $2,234  $2,774     
                
    Revenue by capacity type (as a % of total revenue):        
                
     Truck capacity providers:        
      BCO Independent Contractors (3)  36%  37%    
      Truck Brokerage Carriers  56%  52%    
     Rail intermodal  2%  2%    
     Ocean and air cargo carriers  4%  8%    
     Other   2%  1%    
                
                
         April 1, March 26,    
          2023   2022     
    Truck Capacity Providers        
                
     BCO Independent Contractors (3)  9,996   11,089     
     Truck Brokerage Carriers:        
     Approved and active (4)  61,771   68,859     
          Other approved  30,893   28,094     
          92,664   96,953     
     Total available truck capacity providers  102,660   108,042     
                
     Trucks provided by BCO Independent Contractors (3)  10,809   11,935     
                
                
    (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.   
                
    (2) Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro.    
                
    (3) BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.      
                
    (4) Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end.      
                



              
    Landstar System, Inc. and Subsidiary 
    Reconciliation of Gross Profit to Variable Contribution 
    (Dollars in thousands) 
    (Unaudited) 
              
              
          Thirteen Weeks Ended 
          April 1, March 26, 
           2023   2022  
              
    Revenue   $1,435,675  $1,970,599  
              
    Costs of revenue:      
      Purchased transportation  1,101,294   1,550,330  
      Commissions to agents  125,675   149,778  
              
     Variable costs of revenue  1,226,969   1,700,108  
              
      Trailing equipment depreciation  8,369   9,083  
      Information technology costs (1)  6,751   4,046  
      Insurance-related costs (2)  28,260   31,655  
      Other operating costs  12,378   11,141  
              
     Other costs of revenue  55,758   55,925  
              
     Total costs of revenue  1,282,727   1,756,033  
              
    Gross profit   $152,948  $214,566  
              
    Gross profit margin   10.7%  10.9% 
              
     Plus: other costs of revenue  55,758   55,925  
              
    Variable contribution  $208,706  $270,491  
              
    Variable contribution margin  14.5%  13.7% 
              
    (1) Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. 
              
    (2) Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) broke  brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. 
              



    Contact: 
    Jim Todd (CFO)
    Landstar System, Inc.
    www.landstar.com
    904-398-9400

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