Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2022 Earnings Presentation
28 slides from Landstar System's earnings presentation, Apr 21, 2022
Slide 1: Landstar Reports All-Time Quarterly Record, Diluted EPS $3.34
For Immediate Release Contact: Fred Pensotti (CFO) Landstar System, Inc. www.landstar.com April 20, 2022 904-398-9400 LANDSTAR SYSTEM REPORTS ALL-TIME QUARTERLY RECORD DILUTED EARNINGS PER SHARE OF $3.34 IN THE 2022 FIRST QUARTER Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported recor
Slide 2: Press release continued: dividend, truck revenue and CEO comments
LANDSTAR SYSTEM/2 The Company is currently authorized to purchase up to an additional 2,306,450 shares of the Company’s common stock under its previously announced share purchase programs. Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.25 per share payab
Slide 3: Press release continued: Ukraine impact and outlook
LANDSTAR SYSTEM/3 increased 24 percent. The Company also noted in the February 28 Form 8-K that two of the largest Landstar independent commission sales agencies, as measured by Landstar revenue generated in fiscal year 2021, maintain administrative operations in Ukraine that could be significantly
Slide 4: March revenue per load and fuel cost commentary
LANDSTAR SYSTEM/4 In March 2022, revenue per load for loads hauled via truck was approximately equal to that of February 2022 even though the cost of a gallon of diesel fuel increased approximately $1, or 27%, from February to March. This suggests a decrease in revenue per load (excluding fuel) in M
Slide 5: About Landstar and Non-GAAP Financial Measures
LANDSTAR SYSTEM/5 About Landstar: Landstar System, Inc. 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 p
Slide 6: Forward-looking statements
LANDSTAR SYSTEM/6 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 s
Slide 7: Consolidated Statements of Income
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended March 26, March 27, 2022 2021 Revenue $ 1,970,599 $ 1,287,534 Investment income 721 684 Costs and expenses: Purchased transportat
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) March 26, December 25, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 146,025 $ 215,522 Short-term investments 35,679 35,778 Trade accounts re
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended March 26, March 27, 2022 2021 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,081,206 $ 729,402 Unsided/platform equipment 408,757 297,485 Less
Slide 10: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/10 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Thirteen Weeks Ended March 26, March 27, 2022 2021 Revenue $ 1,970,599 $ 1,287,534 Costs of revenue: Purchased transportation 1,550,330 998,285 Commissio
Slide 11: Earnings Conference Call First Quarter 2022
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2022 April 20, 2022 Date Published: 04/20/2022
Slide 12: 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 13: 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 14: 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 15: Our Network
Our Network March 26, 2022 Results $1.97 billion in YTD revenue Agents 666 thousand loadings Approx. 1,200 593 million dollar agents (based on 2021 fiscal year) 11,935 BCO trucks Landstar 96,953 Carriers Employees 18,000+ Trailers Approx. 1,300 Capacity Customers 108,000+ 25,000+ 5 Date Published: 0
Slide 16: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q21 1Q22 Truck Transportation (1) Truckload Van equipment 57% 55% Unsided/platform equipment 23% 21% Less-than-truckload 2% 2% Other truck transportation 11% 12% Rail intermodal 2% 2% Ocean and air cargo 4% 8% (1) In connection with the impac
Slide 17: Revenue
Revenue ($’s in thousands) Quarter Quarter $2,100,000 $1,970,599 Qtr over Prior Year Qtr Rate ( 1) Volume ( 2) Change $1,900,000 Truc k Revenue 22.5% 19.8% 46.7% $1,700,000 Rail Intermodal Revenue 24.7% 7.9% 34.6% $1,500,000 $1,287,534 Oc ean/Air Revenue 155.1% 25.2% 219.4% $1,300,000 Insuranc e Pre
Slide 18: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 400,000 $3,000 370,000 $2,800 340,000 $2,600 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 1Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2Q21 3Q21 4Q21 1Q22 1Q19 2Q19 3Q19 4Q19 1Q20
Slide 19: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q21 1Q22 Change in Revenue Consumer Durables 28.7 31.4 68% Automotive 8.6 10.2 83% Machinery 11.0 10.1 41% AA&E, Hazmat 8.8 8.0 40% Building Products 8.5 7.6 37% Metals 4.9 4.6 43% Substitute Line Haul 6.8 4.5 2% Foodstuff
Slide 20: Gross Profit and Gross Profit Margin
Gross Profit(1) and Gross Profit Margin (2) ($’s in thousands) Quarter $250,000 $214,566 $200,000 $147,131 $150,000 $100,000 11.4% 10.9% $50,000 1Q21 1Q22 (1) Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. (2) Gross profit mar
Slide 21: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Quarter Quarter $300,000 $270,491 1st Qtr (3) $250,000 Changes in variable contribution margin % $189,240 2021 Period $200,000 14.7 Revenue - fixed 0.0 $150,000 Revenue - variable 0.1 14.7% 13.7% Change in mix and other
Slide 22: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Quarter $190,000 $162,833 $155,000 $120,000 $103,268 $85,000 70.2% 75.9% $50,000 1Q21 1Q22 12 Date Published: 04/20/2022
Slide 23: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Quarter $175,000 $162,833 1st Qtr Changes in operating income as a % of variable $145,000 contribution % 2021 Period 54.6 $115,000 $103,268 Other operating costs -0.1 Insurance and claims -0.1 $85,000 SG&A 4.5 60.2% 54.6% Depreciati
Slide 24: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Mar 27, Dec 25, Mar 26, (2) 2021 2021 2022 (2) BCO Independent Contractors 10,498 11,057 11,089 Truck Brokerage Carriers: Approved and Active (1) 49,538 64,476 68,859 Other Approved 23,246 25,870 28,094 72,784 9
Slide 25: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Mar 27, Mar 26, 2021 2022 Balance sheet (period end amounts): Debt to Capital 11% 17% Net Cash (1) $ 169,800 $ 9,432 Cash flow: Cash flow from operations $ 69,891 $ 94,965 Capital expenditures $ 4,076 $ 3,609 Share repurchases $ - $ 109,3
Slide 26: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 $300,000 42,000 $250,000 41,000 $200,000 40,000 $150,000 39,000 $100,000 38,000 $50,000 $0 37,000 2017 2018 2019 2020 2021 Free Cash Flow Share Purchases Dividends Paid Common Share Count Fi rs t Qua rte r 2022 (000's
Slide 27: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Fiscal Quarters Ended March 26, March 27, 2022 2021 Revenue $ 1,970,599 $ 1,287,534 Costs of revenue: Purchased transportation 1,550,330 998,285 Commissions to agents 149,778 100,009 Variable costs of revenue 1,700
Slide 28: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 04/20/2022