• Landstar System Reports First Quarter Revenue of $1.171B and Earnings Per Share of $1.32

    来源: Nasdaq GlobeNewswire / 24 4月 2024 15:15:11   America/Chicago

    JACKSONVILLE, Fla., April 24, 2024 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.32 in the 2024 first quarter on revenue of $1.171 billion. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.33 per share payable on May 24, 2024, to stockholders of record as of the close of business on May 8, 2024.

    “It’s been a privilege to join Landstar and work alongside our customers, independent agents, BCOs, employees and the Board. The Landstar team performed admirably in a challenging freight environment as both the number of loads hauled via truck and revenue per load on loads hauled via truck exceeded the high-end of the Company’s guidance issued in our 2023 fourth quarter earnings release,” said Landstar President and Chief Executive Officer Frank Lonegro. “The Company is laser-focused on supporting our network of small business owners and executing on our strategic growth initiatives and technology enhancements. We are excited about the future, the new leadership structure of our sales organization and the strength of our balance sheet. Landstar is well positioned to capitalize when freight fundamentals improve. On tomorrow’s earnings call, we look forward to discussing first quarter earnings and providing second quarter guidance, which will be included within the slide presentation that accompanies the call.”

     1Q 2024     1Q 2023 
    Revenue$1,171,043$1,435,675 
    Gross profit$113,902$152,948 
    Variable contribution$168,240$208,706 
    Operating income$59,961$101,284 
    Basic and diluted earnings per share$1.32$2.17 
          
    (1)   Dollars above in thousands, except per share amounts
    (2)   Please refer to the Consolidated Statements of Income and Reconciliation of Gross Profit to Variable Contribution included below


    Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2024 first quarter was $1,068.9 million, or 91% of revenue, compared to $1,323.7 million, or 92% of revenue, in the 2023 first quarter. Truckload transportation revenue hauled via van equipment in the 2024 first quarter was $628.3 million, compared to $755.1 million in the 2023 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2024 first quarter was $343.0 million, compared to $377.6 million in the 2023 first quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2024 first quarter was $72.0 million, compared to $159.5 million in the 2023 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $76.8 million, or 7% of revenue, in the 2024 first quarter, compared to $86.8 million, or 6% of revenue, in the 2023 first quarter.

    While the number of loads hauled via truck declined 13% and truck revenue per load declined 7% in the 2024 first quarter as compared to the 2023 first quarter, each performed slightly better than the high end of the Company’s expectations as set forth in its previously issued guidance.   On a sequential basis as compared to the 2023 fourth quarter, the number of loads hauled via truck and truck revenue per load in the 2024 first quarter each outperformed historical, pre-pandemic patterns.

    Gross profit in the 2024 first quarter was $113.9 million and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2024 first quarter was $168.2 million. Gross profit in the 2023 first quarter was $152.9 million and variable contribution in the 2023 first quarter was $208.7 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2024 and 2023 first quarters are provided in the Company’s accompanying financial disclosures.

    The Company’s balance sheet continues to be very strong, with cash and short term investments of approximately $530 million as of March 30, 2024.   Trailing twelve month return on average shareholders’ equity was 23%, and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 22%. 

    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 www.investor.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s First Quarter 2024 Earnings Release Conference Call.”

    About Landstar:
    Landstar System, Inc., is a 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 2023 fiscal year; 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; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2023 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
       March 30, April 1,
        2024   2023 
          
    Revenue$1,171,043  $1,435,675 
    Investment income 3,412   1,368 
          
    Costs and expenses:   
     Purchased transportation 905,521   1,101,294 
     Commissions to agents 97,282   125,675 
     Other operating costs, net of gains on asset sales/dispositions 14,859   12,378 
     Insurance and claims 26,268   27,647 
     Selling, general and administrative 56,422   53,567 
     Depreciation and amortization 14,142   15,198 
          
      Total costs and expenses 1,114,494   1,335,759 
          
    Operating income 59,961   101,284 
    Interest and debt (income) expense (1,611)  (726)
          
    Income before income taxes 61,572   102,010 
    Income taxes 14,476   23,815 
          
    Net income$47,096  $78,195 
          
    Basic and diluted earnings per share$1.32  $2.17 
          
    Average basic and diluted shares outstanding 35,750,000   35,982,000 
          
    Dividends per common share$0.33  $0.30 
          


    Landstar System, Inc. and Subsidiary
    Consolidated Balance Sheets
    (Dollars in thousands, except per share amounts)
    (Unaudited)
           
           
        March 30, December 30,
         2024   2023 
    ASSETS    
    Current assets:   
     Cash and cash equivalents$467,671  $481,043 
     Short-term investments 62,781   59,661 
     Trade accounts receivable, less allowance   
      of $11,764 and $11,738 723,841   743,762 
     Other receivables, including advances to independent   
      contractors, less allowance of $14,310 and $14,010 40,535   43,339 
     Other current assets 15,540   24,936 
      Total current assets 1,310,368   1,352,741 
           
    Operating property, less accumulated depreciation   
       and amortization of $442,898 and $436,682 279,552   284,300 
    Goodwill  42,381   42,275 
    Other assets 113,540   122,530 
    Total assets$1,745,841  $1,801,846 
           
    LIABILITIES AND SHAREHOLDERS' EQUITY   
    Current liabilities:   
     Cash overdraft$51,674  $61,541 
     Accounts payable 384,267   395,980 
     Current maturities of long-term debt 26,730   27,876 
     Insurance claims 40,683   41,825 
     Dividends payable -   71,433 
     Other current liabilities 86,318   76,569 
      Total current liabilities 589,672   675,224 
           
    Long-term debt, excluding current maturities 38,496   43,264 
    Insurance claims 59,668   58,922 
    Deferred income taxes and other non-current liabilities 40,094   40,513 
           
    Shareholders' equity:   
     Common stock, $0.01 par value, authorized 160,000,000   
      shares, issued 68,547,553 and 68,497,324 685   685 
     Additional paid-in capital 254,192   254,642 
     Retained earnings 2,818,939   2,783,645 
     Cost of 32,785,515 and 32,780,651 shares of common   
      stock in treasury (2,049,070)  (2,048,184)
     Accumulated other comprehensive loss (6,835)  (6,865)
      Total shareholders' equity 1,017,911   983,923 
    Total liabilities and shareholders' equity$1,745,841  $1,801,846 
           


     Landstar System, Inc. and Subsidiary
     Supplemental Information
     (Unaudited)
            
         Thirteen Weeks Ended
         March 30, April 1,
          2024   2023 
    Revenue generated through (in thousands):    
            
     Truck transportation    
      Truckload:    
       Van equipment $628,304  $755,083 
       Unsided/platform equipment  343,045   377,564 
      Less-than-truckload  25,617   31,558 
      Other truck transportation (1)    71,966   159,503 
       Total truck transportation  1,068,932   1,323,708 
     Rail intermodal  22,695   25,657 
     Ocean and air cargo carriers  54,074   61,093 
     Other (2)     25,342   25,217 
         $1,171,043  $1,435,675 
            
     Revenue on loads hauled via BCO Independent Contractors (3)          
      included in total truck transportation $452,561  $519,526 
            
    Number of loads:    
            
     Truck transportation    
      Truckload:    
       Van equipment  299,014   331,954 
       Unsided/platform equipment  117,947   127,572 
      Less-than-truckload  40,233   46,192 
      Other truck transportation (1)    33,526   58,062 
       Total truck transportation  490,720   563,780 
     Rail intermodal  7,150   7,760 
     Ocean and air cargo carriers  8,720   8,440 
          506,590   579,980 
            
     Loads hauled via BCO Independent Contractors (3)          
      included in total truck transportation  208,740   232,550 
            
    Revenue per load:    
            
     Truck transportation    
      Truckload:    
       Van equipment $2,101  $2,275 
       Unsided/platform equipment  2,908   2,960 
      Less-than-truckload  637   683 
      Other truck transportation (1)    2,147   2,747 
       Total truck transportation  2,178   2,348 
     Rail intermodal  3,174   3,306 
     Ocean and air cargo carriers  6,201   7,239 
            
     Revenue per load on loads hauled via BCO Independent Contractors (3)        $2,168  $2,234 
            
    Revenue by capacity type (as a % of total revenue):    
            
     Truck capacity providers:    
      BCO Independent Contractors (3)     39%  36%
      Truck Brokerage Carriers  53%  56%
     Rail intermodal  2%  2%
     Ocean and air cargo carriers  5%  4%
     Other   2%  2%
            
            
         March 30, April 1,
          2024   2023 
    Truck Capacity Providers    
            
     BCO Independent Contractors (3)     8,619   9,996 
     Truck Brokerage Carriers:    
      Approved and active (4)    45,919   61,771 
          Other approved  26,320   30,893 
          72,239   92,664 
     Total available truck capacity providers  80,858   102,660 
            
     Trucks provided by BCO Independent Contractors (3)      9,410   10,809 
            
            
    (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation shipments logistics segment. Power-only refers to 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
       March 30, April 1,
        2024   2023 
          
    Revenue$1,171,043  $1,435,675 
          
    Costs of revenue:   
      Purchased transportation 905,521   1,101,294 
      Commissions to agents 97,282   125,675 
          
     Variable costs of revenue 1,002,803   1,226,969 
          
      Trailing equipment depreciation 6,897   8,369 
      Information technology costs (1) 5,804   6,751 
      Insurance-related costs (2) 26,778   28,260 
      Other operating costs 14,859   12,378 
          
     Other costs of revenue 54,338   55,758 
          
     Total costs of revenue 1,057,141   1,282,727 
          
    Gross profit$113,902  $152,948 
          
    Gross profit margin 9.7%  10.7%
          
     Plus: other costs of revenue 54,338   55,758 
          
    Variable contribution$168,240  $208,706 
          
    Variable contribution margin 14.4%  14.5%


    (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) 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
    Chief Financial Officer
    904-398-9400

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