Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q2 2024 Earnings Presentation
34 slides from Landstar System's earnings presentation, Jul 30, 2024
Slide 1: Landstar Reports Second Quarter Revenue of $1.225B and EPS of $1.48
For Immediate Release July 30, 2024 LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $1.225B AND EARNINGS PER SHARE OF $1.48 AND ANNOUNCES 9% INCREASE TO QUARTERLY DIVIDEND Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earning
Slide 2: Second quarter results summary and revenue detail
LANDSTAR SYSTEM/2 2Q 2024 2Q 2023 Revenue $ 1,225,005 $ 1,373,857 Gross profit $ 119,996 $ 139,706 Variable contribution $ 175,131 $ 198,182 Operating income $ 68,059 $ 87,950 Basic and diluted earnings per share $ 1.48 $ 1.85 (1) Dollars above in thousands, except per share amounts (2) Please refer
Slide 3: Balance sheet strength, webcast details and About Landstar
LANDSTAR SYSTEM/3 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2024 and 2023 second quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures. The Company’s balance sheet con
Slide 4: Non-GAAP Financial Measures
LANDSTAR SYSTEM/4 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 contribut
Slide 5: Forward-looking statements
LANDSTAR SYSTEM/5 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,
Slide 6: Consolidated Statements of Income
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Twenty-Six Weeks Ended Thirteen Weeks Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Revenue $ 2,396,048 $ 2,809,532 $ 1,225,005 $ 1,373,
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 29, December 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 438,062 $ 481,043 Short-term investments 65,959 59,661 Trade accounts rec
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty-Six Weeks Ended Thirteen Weeks Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,247,244 $ 1,458,12
Slide 9: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Twenty-Six Weeks Ended Thirteen Weeks Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Revenue $ 2,396,048 $ 2,809,532 $ 1,225,005 $ 1,373,857
Slide 10: Landstar System, Inc. 2Q 2024 Earnings Conference Call
Landstar System, Inc. 2Q 2024 Earnings Conference Call Date
Slide 11: Forward-Looking Statements Disclaimer
2Q 2024 Forward-Looking Statements Disclaimer The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are “forward-looking statements.” This presentation may make certain
Slide 12: Non-GAAP Financial Measures
2Q 2024 Non-GAAP Financial Measures In this slide presentation, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution, variable contribution margin and operating income as a percentage of variable contribution. Management believes varia
Slide 13: Executive Summary - Frank Lonegro
2Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 14: CEO Perspective: Results Highlights
CEO Perspective Slide header RESULTS HIGHLIGHTS Dollars in Millions (except per share amounts) ⚫ 2Q revenue performance Metric 2Q 2024 2Q 2023 Chg. 2Q 2024 first sequential revenue increase since 2Q 2022 Revenue $ 1,225.0 $ 1,373.9 (10.8%) ⚫ Strong Balance Sheet continues to return meaningful amount
Slide 15: Landstar Network and 2Q Operating Results
Landstar Network and 2Q Operating Results LANDSTAR NETWORK 2Q R E S U L T S Agents Customers Capacity Employees $1.11B Truck Revenue ~1,100 25,000+ 79,000+ ~1,500 508K Truck Loadings $2,177 Truck Revenue per Load 524 Million $ Agents* 9,180 BCO Trucks 70,832 Carriers 17,800+ Trailers 0.57 DOT Accide
Slide 16: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period AVAILABLE TRUCK CAPACITY PROVIDERS Type of Capacity Jun 29, 2024 Dec 30, 2023 Jul 1, 2023 BCO Independent Contractors 8,385 9,024 9,748 Truck Brokerage Carriers Approved and Active (1) 45,382 49,111 58,303 Other Approv
Slide 17: Financial Results - Jim Todd
2Q 2024 Financial Results Jim Todd Chief Financial Officer 8
Slide 18: Revenue
Revenue Slide header Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $1,373.9 Truck (2.6%) (8.9%) (11.3%) $1,225.0 Rail Intermodal (6.7%) (5.2%) (11.6%) Ocean/Air (7.8%) 2.5%) (5.5%) Insurance Premiums N/A N/A (12.8%) 2Q 2024 2Q 2023 Total Revenue — — (10.8%) (1) Percentag
Slide 19: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue down 11% Y-O-Y Revenue Share Y-O-Y Change 2Q 2024 2Q 2023 Market Segment in Revenue 27.5 27.1 Consumer Durables (10) 14.2 13.9 Machinery (8) 10.9 12.0 Automotive (19) 9.6 8.5 Buildin
Slide 20: Gross Profit and Variable Contribution
Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 2Q Profit Contribution 2023 14.4 $198.2 $175.1 Revenue – Fixed (3) 0.2 $139.7 $120.0 Revenue – Variable (0.4) Change in Mix/Other 0.1 9.8% 10.2% 14.3% 14
Slide 21: Operating Income as a Percentage of Gross Profit and Variable Contribution
Operating Income Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions RESULTS CHANGE IN PERCENTAGE of Variable Contribution Operating Percentage of Amounts in % 2Q Income Gross Profit Variable Contribution $88.0 2023 44.4) 63.0% 56.7% Other operating costs (1.3)
Slide 22: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics Dollars in Millions N E T C A S H (1) SOURCES / USES OF CASH with Debt to Capital (2) Year-to-date as of date indicated as of date indicated Cash Flow Type Jun 29, 2024 Jul 1, 2023 Cash flow from operations $ 142.3 $ 191.7 Capital expenditures $ 16.8 $ 12.6
Slide 23: 3Q Guidance & Closing Remarks
2Q 2024 3Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 24: 3Q Guidance
3Q Guidance Slide header Consolidated Revenue of $1.175 - $1.275 billion – Truck Loads 6% — 10% below prior year – Truck Revenue per Load 0% — 4% above prior year Earnings per Share of $1.35 — $1.55 – Insurance Expense to approximate 5.5% of BCO revenue – Effective Income Tax Rate of 24.5% 15
Slide 25: Appendix
2Q 2024 Appendix 16
Slide 26: Revenue Breakdown by Service Type
Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 2Q 2 0 2 4 by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TRUCK TRANSPORTATION TRUCKLOAD Van — 51%, Unsided/Platform — 31% LTL — 2% OTHER TRUCK — 6% RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 6% ALL OTHER — 2% CHANGE
Slide 27: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends VAN UNSIDED / PLATFORM NUMBER OF LOADS NUMBER OF LOADS 400,000 150,000 300,000 100,000 200,000 50,000 100,000 0 0 REVENUE PER LOAD REVENUE PER LOAD $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $500 $500 $- $-
Slide 28: Revenue - Year-to-Date
Revenue Slide header– Year-to-Date Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $2,809.5 Truck (5.0%) (11.0%) (15.4%) $2,396.0 Rail Intermodal (5.4%) (6.6%) (11.6%) Ocean/Air (10.8%) 2.9%) (8.2%) Insurance Premiums N/A N/A (12.5%) 2Q 2024 YTD 2Q 2023 YTD Total Revenue —
Slide 29: Gross Profit and Variable Contribution - Year-to-Date
Gross Profit and Variable Contribution – Year-to-Date with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 2Q YTD Profit Contribution $406.9 2023 14.5 $343.4 $292.7 Revenue – Fixed (1) 0.1 $233.9 Revenue – Variable (0.5) Change in Mix/Other 0.2 9.8% 10.
Slide 30: Operating Income - Year-to-Date
Operating Income – Year-to-Date Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions RESULTS CHANGE IN PERCENTAGE of Variable Contribution Operating Percentage of Amounts in % 2Q YTD Income Gross Profit Variable Contribution 2023 46.5) $189.2 64.7% 54.7% Other o
Slide 31: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Twenty-Six Weeks Ended Thirteen Weeks Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Revenue $ 2,396,048 $ 2,809,532 $ 1,225,005 $ 1,373,857 Costs of revenue: Purchased transportation 1,855,579 2,154,491 950,05
Slide 32: Free Cash Flow with Stock Purchases and Dividends
Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5–YEAR SUMMARY Cash Flow Item 2019 2020 2021 2022 2023 Free Cash Flow $ 288 $ 177 $ 253 $ 597 $ 368 Share Repurchases $ 89 $ 116 $ 123 $ 286 $ 54 Dividends Paid $ 28 $ 110 $ 112 $ 116 $ 117 Common Share Count(1) 39.5 38
Slide 33: DOT Accident Frequency
DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5–YEAR SUMMARY 0.70 0.65 0.65 0.62 0.60 0.60 0.57 0.57 0.55 0.50 2019 2020 2021 2022 2023 (1) A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a highway in
Slide 34: Landstar System, Inc. 2Q 2024 Earnings Conference Call
Landstar System, Inc. 2Q 2024 Earnings Conference Call Date