Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2023 Earnings Presentation
27 slides from Landstar System's earnings presentation, Apr 27, 2023
Slide 1: Landstar Reports First Quarter Revenue of $1.436B and DEPS of $2.17
For Immediate Release Contact: Jim Todd (CFO) Landstar System, Inc. www.landstar.com April 26, 2023 904-398-9400 LANDSTAR SYSTEM REPORTS FIRST QUARTER REVENUE OF $1.436B AND FIRST QUARTER DILUTED EARNINGS PER SHARE OF $2.17 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “
Slide 2: Press release continued: dividend and truck revenue
LANDSTAR SYSTEM/2 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,
Slide 3: Second quarter outlook and About Landstar
LANDSTAR SYSTEM/3 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 qua
Slide 4: About Landstar and non-GAAP financial measures
LANDSTAR SYSTEM/4 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 environmenta
Slide 5: Forward-looking statements risk factors
LANDSTAR SYSTEM/5 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
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) 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 transporta
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 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 rec
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 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-
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) 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 Commissio
Slide 10: Landstar System, Inc. Earnings Conference Call First Quarter 2023
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2023 April 1, 2023 Date Published: 04/26/2023
Slide 11: Forward-Looking Statements Disclaimer
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 stateme
Slide 12: Non-GAAP Financial Measures
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 variable con
Slide 13: Who We Are
Who We Are Landstar, 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
Slide 14: Our Network
Our Network April 1, 2023 Results $1.44 billion in YTD revenue Agents 580 thousand loadings Approx. 1,200 625 million dollar agents (based on 2022 fiscal year) 10,809 BCO trucks Landstar 92,664 Carriers Employees 18,500+ Trailers Approx. 1,400 Capacity Customers 102,000+ 25,000+ 5 Date Published: 04
Slide 15: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q22 1Q23 Truck Transportation Truckload Van equipment 55% 53% Unsided/platform equipment 21% 26% Less-than-truckload 2% 2% Other truck transportation 12% 11% Rail intermodal 2% 2% Ocean and air cargo 8% 4% 6 Date Published: 04/26/2023
Slide 16: Revenue
Revenue ($’s in thousands) Quarter Quarter $2,100,000 $1,970,599 ( 1) ( 2) Qtr over Prior Year Qtr Rate Volume Change $1,800,000 Truc k Revenue - 13.9% - 12.2% - 24.4% $1,435,675 $1,500,000 Rail Intermodal Revenue - 2.2% - 38.6% - 39.9% Oc ean/Air Revenue - 45.0% - 27.0% - 59.8% $1,200,000 Insuranc
Slide 17: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Number of Loads Van Equipment Revenue per Load 400,000 $3,000 370,000 $2,800 340,000 $2,600 310,000 $2,400 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q20
Slide 18: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q22 1Q23 Change in Revenue Consumer Durables 31.4 28.6 -34% Machinery 10.1 13.1 -6% Automotive 10.2 10.9 -22% AA&E, Hazmat 8.0 8.3 -25% Building Products 7.6 7.7 -26% Metals 4.6 4.8 -24% Foodstuffs 3.7 3.1 -40% Substitute
Slide 19: Gross Profit and Gross Profit Margin
Gross Profit(1) and Gross Profit Margin (2) ($’s in thousands) Quarter $250,000 $214,566 $200,000 $152,948 $150,000 $100,000 10.9% 10.7% $50,000 1Q22 1Q23 (1) Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. (2) Gross profit mar
Slide 20: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Quarter Quarter $300,000 $270,491 1st Qtr (3) $250,000 Changes in variable contribution $208,706 margin % $200,000 2022 Period 13.7 Revenue - fixed -0.2 $150,000 Revenue - variable 1.1 13.7% 14.5% Change in mix and othe
Slide 21: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Quarter $190,000 $162,833 $155,000 $120,000 $101,284 $85,000 75.9% 66.2% $50,000 1Q22 1Q23 12 Date Published: 04/26/2023
Slide 22: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Quarter $180,000 $162,833 1st Qtr Changes in operating income as a % of variable $150,000 contribution % 2022 Period 60.2 $120,000 Other operating costs -1.8 $101,284 Insurance and claims -1.5 $90,000 SG&A -6.2 60.2% 48.5% Depreciat
Slide 23: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Mar 26, Dec 31, Apr 1, (2) 2022 2022 2023 (2) BCO Independent Contractors 11,089 10,393 9,996 Truck Brokerage Carriers: Approved and Active (1) 68,859 66,745 61,771 Other Approved 28,094 30,999 30,893 96,953 97,
Slide 24: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Mar 26, Apr 1, 2022 2023 Balance sheet (period end amounts): Debt to Capital 17% 9% Net Cash (1) $ 9,432 $ 294,163 Cash flow: Cash flow from operations $ 94,965 $ 139,035 Capital expenditures $ 3,609 $ 6,233 Share repurchases $ 109,332 $
Slide 25: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $700,000 41,000 $600,000 40,000 $500,000 39,000 $400,000 38,000 $300,000 37,000 $200,000 36,000 $100,000 $0 35,000 2018 2019 2020 2021 2022 Free Cash Flow Share P urchases Divid ends Paid Common Share Count Fi rs t Qua rte r 2023 (000
Slide 26: Appendix A Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) 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
Slide 27: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 04/26/2023