Slide 1: Landstar Reports All-Time Quarterly Record Diluted EPS of $2.58
For Immediate Release Contacts: Jim Gattoni (CEO) Fred Pensotti (CFO) Landstar System, Inc. www.landstar.com October 20, 2021 904-398-9400 LANDSTAR SYSTEM REPORTS ALL-TIME QUARTERLY RECORD DILUTED EARNINGS PER SHARE OF $2.58 IN THE 2021 THIRD QUARTER Jacksonville, FL - Landstar System, Inc. (NASDAQ:
Slide 2: Press release page 2
LANDSTAR SYSTEM/2 contribution also reached an all-time quarterly record of $242.3 million in the 2021 third quarter compared to $160.9 million in the 2020 third quarter. A tabulation of the expenses identified as costs of revenue as well as a reconciliation of gross profit to variable contribution
Slide 3: Press release page 3
LANDSTAR SYSTEM/3 transportation revenue was 13.2 percent and 10.8 percent of total truck transportation revenue in the 2021 and 2020 third quarters, respectively. Truckload transportation revenue hauled via van equipment in the 2021 third quarter was $918.1 million, an increase of 59 percent compar
Slide 4: Press release page 4
LANDSTAR SYSTEM/4 rates through the first seven weeks of the third quarter. Our updated 2021 third quarter guidance reflected our expectation that on a sequential basis revenue per load on loads hauled via truck would exceed the 2021 second quarter in a mid-single-digit percentage range and the numb
Slide 5: Press release page 5
LANDSTAR SYSTEM/5 Gattoni concluded, “Landstar’s performance so far this year has been outstanding. The Company’s agent family is executing on all cylinders and we continue to add qualified truck capacity. We ended the 2021 third quarter with a record number of trucks provided by BCOs and a record a
Slide 6: Non-GAAP and forward-looking statements
LANDSTAR SYSTEM/6 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 measure
Slide 7: Forward-looking statements (continued)
LANDSTAR SYSTEM/7 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.
Slide 8: Consolidated Statements of Income
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Revenue $ 4,592,551 $ 2,836,6
Slide 9: Consolidated Balance Sheets
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 25, December 26, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 230,564 $ 249,354 Short-term investments 36,644 41,375 Trade account
Slide 10: Supplemental Information
LANDSTAR SYSTEM/10 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Revenue generated through (in thousands): Truck transportation Truckload: Van equipmen
Slide 11: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/11 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Revenue $ 4,592,551 $ 2,836,626
Slide 12: Earnings Conference Call Third Quarter 2021
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2021 October 20, 2021 Date Published: 10/20/2021
Slide 13: 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 14: 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 as well as operating income as a
Slide 15: Who We Are
Who We Are Landstar 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. 4 Date Publis
Slide 16: Our Network
Our Network September 25, 2021 $4.6 billion in YTD revenue Agents 1.8 million YTD loadings Approx. 1,200 508 million dollar agents (based on 2020 fiscal year) 11,746 BCO trucks Landstar 83,278 Carriers Employees 17,900+ Trailers Approx. 1,400 Capacity Customers 94,000+ 25,000+ 5 Date Published: 10/2
Slide 17: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q20 3Q21 Truck Transportation (1) Truckload Van equipment 53% 53% Unsided/platform equipment 27% 24% Less-than-truckload 2% 2% Other truck transportation 10% 12% Rail intermodal 3% 3% Ocean and air cargo 3% 5% (1) In connection with the impac
Slide 18: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $4,900,000 $4,592,551 $1,900,000 $1,734,299 $4,500,000 $1,650,000 $4,100,000 $3,700,000 $1,400,000 $3,300,000 $1,085,546 $2,836,626 $1,150,000 $2,900,000 $2,500,000 $900,000 3Q20 YTD 3Q21 YTD 3Q20 3Q21 Year over Prior Year Rate ( 1) Volume ( 2) Change
Slide 19: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 370,000 $2,600 340,000 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 3Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 4Q20 1Q21 2Q21 3Q21 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4
Slide 20: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q20 3Q21 Change in Revenue Consumer Durables 25.5 30.3 90% Machinery 12.1 11.1 46% AA&E, Hazmat 9.0 8.7 55% Building Products 9.8 8.2 34% Automotive 7.7 6.8 43% Substitute Line Haul 5.2 5.4 66% Metals 4.8 5.1 72% Foodstuff
Slide 21: Gross Profit and Gross Profit Margin
Gross Profit(1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date (3) Quarter $200,000 $189,194 $550,000 $511,169 $180,000 $160,000 $450,000 $140,000 $350,000 $119,808 $291,756 $120,000 11.1% 11.0% 10.9% 10.3% $250,000 $100,000 3Q20 YTD 3Q21 YTD 3Q20 3Q21 (1) Gross profit equals revenue le
Slide 22: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date (4) Quarter $750,000 $242,333 $250,000 $652,357 $650,000 $230,000 $210,000 $550,000 $190,000 $160,945 $416,993 $170,000 $450,000 $150,000 14.7% 14.2% 14.8% 14.0% $350,000 $130,000 3Q20 YTD 3Q21 YTD 3Q20 3Q2
Slide 23: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date (1) Quarter $356,928 $140,000 $131,412 $370,000 $320,000 $270,000 $110,000 $220,000 $82,352 $168,538 $170,000 $80,000 $120,000 57.8% 69.8% 68.7% 69.4% $70,000 $50,000 3Q20 YTD 3Q21 YTD 3Q20 3Q21 (1) Excluding the impact of the $
Slide 24: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date (1) Quarter $356,928 $140,000 $370,000 $131,412 $320,000 $270,000 $110,000 $220,000 $82,352 $168,538 $170,000 $80,000 $120,000 40.4% 54.7% 51.2% 54.2% $70,000 $50,000 3Q20 YTD 3Q21 YTD 3Q20 3Q21 3rd Qtr YTD 3rd Qtr Chan
Slide 25: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Sep 26, Dec 26, Sep 25, (2) 2020 2020 2021 (2) BCO Independent Contractors 9,866 10,242 10,955 Truck Brokerage Carriers: Approved and Active (1) 41,246 46,053 58,676 Other Approved 22,181 22,972 24,602 63,247 69
Slide 26: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Sep 26, Sep 25, 2020 2021 Balance sheet (period end amounts): Debt to Capital 11% 10% Net Cash (1) $ 170,329 $ 169,867 Cash flow (year-to-date): Cash flow from operations $ 185,548 $ 216,990 Capital expenditures (2) $ 28,192 $ 18,561 Shar
Slide 27: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 42,500 42,000 $300,000 41,500 $250,000 41,000 $200,000 40,500 40,000 $150,000 39,500 $100,000 39,000 $50,000 38,500 $0 38,000 2016 2017 2018 2019 2020 Free Cash Flow Share Purchases Dividends Paid Common Share Count Thi rd qu
Slide 28: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Thirty Nine Weeks Ended Thirteen Weeks Ended September 25, September 26, September 25, September 26, 2021 2020 2021 2020 Revenue $ 4,592,551 $ 2,836,626 $ 1,734,299 $ 1,085,546 Costs of revenue: Purchased transport
Slide 29: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 10/20/2021