Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2017 Earnings Presentation
21 slides from Landstar System's earnings presentation, Apr 26, 2017
Slide 1: Landstar Reports Record First Quarter Revenue of $781 Million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com April 26, 2017 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD FIRST QUARTER REVENUE OF $781 MILLION AND RECORD FIRST QUARTER DILUTED EARNINGS PER SHARE OF $0.77 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) repo
Slide 2: 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share
LANDSTAR SYSTEM/2 average equity plus average debt, was 22 percent. Currently, there are approximately 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program. As of April 1, 2017, the Company had $278 million in cash and short term in
Slide 3: quarter.” Gattoni continued, “We have experienced consistent load growth in loads hauled via $0.76
LANDSTAR SYSTEM/3 February, the Company experienced its first year-over-year monthly increase in truck revenue per load in two years. As a result, revenue per load on loads hauled via truck was 1 percent higher in the 2017 first quarter compared to the 2016 first quarter. First quarter operating mar
Slide 4: or failures in the Company’s computer systems; cyber and other information security uncertainties detailed
LANDSTAR SYSTEM/4 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: an increase in the frequency or severity of accidents or other claims; unfavorable development of exi
Slide 5: Consolidated Statements of Income
LANDSTAR SYSTEM/5 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended April 1, March 26, 2017 2016 Revenue $ 780,908 $ 711,644 Investment income 414 380 Costs and expenses: Purchased transportation 5
Slide 6: Consolidated Balance Sheets
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) April 1, December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 215,468 $ 178,897 Short-term investments 62,058 66,560 Trade accounts rec
Slide 7: Supplemental Information
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended April 1, March 26, 2017 2016 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 469,783 $ 428,193 Unsided/platform equipment 237,177 209,422 Less-th
Slide 8: Earnings Conference Call First Quarter 2017
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2017 April 26, 2017 Date Published: 04/26/2017
Slide 9: Safe Harbor Statement
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made during this presentation that are not based on historical facts are “forward looking statements.” During this presentation, I may make certain statements, containing forward-looking
Slide 10: Model Definition
Model Definition Landstar is a worldwide, 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. 3 Date Published: 04/26/201
Slide 11: The Network
The Network 2016 Results Agents $3.2 billion in revenue Approx. 1,200 1.8 million loadings 502 million dollar agents 9,439 BCO trucks (2016 year-end) Landstar 47,453 Carriers (2016 year-end) Employees 15,000+ Trailers (2016 year-end) Approx. 1,200 Capacity Customers 56,000+ 25,000+ 4 Date Published:
Slide 12: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q16 1Q17 Truck Transportation Truckload Van equipment 60% 60% Unsided/platform equipment 29% 30% Less-than-truckload 2% 3% Rail intermodal 4% 3% Ocean and air cargo 3% 3% 5 Date Published: 04/26/2017
Slide 13: Revenue
Revenue ($’s in thousands) Quarter Quarter $825,000 Qtr over Prior Qtr Rate (1) Volume (2) Change $780,908 $775,000 Truck Revenue 0.7% 10.2% 10.9% $711,644 $725,000 Rail Intermodal Revenue - 1.2% - 11.5% - 12.5% Ocean/Air Revenue - 17.1% 25.7% 4.2% $675,000 Insurance Premiums NA NA 0.1% $625,000 1Q1
Slide 14: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 340,000 $1,900 330,000 320,000 310,000 $1,800 300,000 290,000 $1,700 280,000 270,000 260,000 $1,600 250,000 240,000 $1,500 4Q14 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 1Q15 1Q14
Slide 15: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q16 1Q17 Growth Consumer Durables 20.5 21.5 15% Machinery 14.4 15.3 16% Automotive 9.7 8.7 -1% Building Products 8.6 8.6 9% Metals 6.7 6.7 10% AA&E, Hazmat 7.5 8.8 29% Foodstuffs 5.5 5.2 4% Energy 2.9 3.1 15% Other 24.2 22
Slide 16: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter $123,000 $121,587 1st Qtr (3) Changes in gross profit margin % $118,000 2016 Period 15.8 Revenue - fixed gp margin 0.0 $112,224 15.6% $113,000 Revenue - variable gp margin 0.0 15.8% Change in mix and other -0.2 $108,000 1Q16 1Q1
Slide 17: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Quarter $53,000 $52,334 1st Qtr 48.4% $52,000 4 Changes in operating margin % $51,000 2016 Period 42.7 $50,000 Other operating costs 0.9 $49,000 Insurance and claims 0.7 $47,932 43.0% $48,000 SG&A -0.7 $47,000 42.7% Depreciation and amorti
Slide 18: Truck Capacity Data
Truck Capacity Data (All information contained in the table is provided as of the end of the period) Mar 26, Dec 31, Apr 1, (2) (2) 2016 2016 2017 BCO Independent Contractors 8,889 8,824 8,772 Truck Brokerage Carriers: (1) Approved and Active 29,523 31,471 31,566 Other Approved 15,748 15,982 15,889
Slide 19: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) QTR QTR Mar 26, Apr 1, 2016 2017 Balance sheet (period end amounts): Debt to Capital 21% 18% Net Cash (1) $ 92,891 $ 151,630 Cash flow: Cash flow from operations $ 72,038 $ 61,948 Capital expenditures $ 828 $ 4,978 Share repurchases $ 10,
Slide 20: Free Cash Flow / Share Purchases
Free Cash Flow (1) / Share Purchases (In Thousands) $250,000 50,000 $200,000 48,000 $150,000 46,000 $100,000 44,000 $50,000 42,000 $- 40,000 2013 2014 2015 2016 Free Cash Flow Share Purchases Common Share Count First quarter 2017 (000's) Free cash flow (1) $ 56,970 Share purchases $ - Ending common
Slide 21: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 04/26/2017