Slide 1: Landstar Reports Record Quarterly Revenue of $1.202 Billion and Record Diluted EPS
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com October 24, 2018 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF $1.202 BILLION AND RECORD QUARTERLY DILUTED EARNINGS PER SHARE OF $1.63 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported
Slide 2: Share purchases, liquidity, dividend and CEO comments
LANDSTAR SYSTEM/2 Landstar did not purchase any shares of its common stock during the 2018 third quarter. Currently, the Company is authorized to purchase up to an additional 2,000,000 shares of the Company’s common stock under Landstar’s previously announced share purchase programs. As of September
Slide 3: CEO comments on pricing and fourth quarter outlook
LANDSTAR SYSTEM/3 Gattoni further commented, “As expected, the pricing environment for our truckload services continued to be very strong in the 2018 third quarter, as industry-wide truck capacity continued to be tight. Revenue per load on loads hauled via van equipment increased 21 percent over the
Slide 4: Webcast information and safe harbor statement
LANDSTAR SYSTEM/4 Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Third Quarter 2018 Earnin
Slide 5: About Landstar
LANDSTAR SYSTEM/5 employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its com
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) Thirty Nine Weeks Ended Thirteen Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Revenue $ 3,432,793 $ 2,594,7
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 29, December 30, 2018 2017 ASSETS Current assets: Cash and cash equivalents $ 213,974 $ 242,416 Short-term investments 40,203 48,928 Trade account
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 9: Earnings Conference Call Third Quarter 2018
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2018 October 24, 2018 Date Published: 10/24/2018
Slide 10: 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 11: 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: 10/24/201
Slide 12: The Network
The Network 2017 Results Agents $3.6 billion in revenue Approx. 1,200 2.0 million loadings 542 million dollar agents 9,696 BCO trucks (2017 year-end) Landstar 49,934 Carriers (2017 year-end) Employees 15,000+ Trailers (2017 year-end) Approx. 1,300 Capacity Customers 59,000+ 25,000+ 4 Date Published:
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q17 3Q18 Truck Transportation Truckload Van equipment 58% 60% Unsided/platform equipment 32% 31% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 3% 5 Date Published: 10/24/2018
Slide 14: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $3,600,000 $3,432,793 $1,300,000 $1,202,081 $3,300,000 $1,220,000 $1,140,000 $3,000,000 $1,060,000 $2,700,000 $2,594,772 $943,430 $980,000 $2,400,000 $900,000 3Q17 YTD 3Q18 YTD 3Q17 3Q18 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 380,000 $2,100 360,000 $2,000 340,000 $1,900 320,000 $1,800 300,000 280,000 $1,700 260,000 $1,600 240,000 $1,500 1Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q17 3Q15 4Q15 1Q16
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q17 3Q18 Growth Consumer Durables 21.0 23.2 41% Machinery 14.3 14.3 28% Automotive 7.1 8.3 49% Building Products 10.2 8.7 8% Metals 6.6 6.7 30% AA&E, Hazmat 8.6 8.4 25% Foodstuffs 4.7 5.5 49% Energy 3.2 2.8 11% Other 24.3
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $180,000 $498,255 $500,000 $171,304 $170,000 $470,000 $160,000 $440,000 $150,000 $394,156 $140,005 $410,000 14.5% $140,000 14.3% 15.2% 14.8% $380,000 $130,000 3Q17 YTD 3Q18 YTD 3Q17 3Q18 3rd Qtr YTD (3) 3rd Qtr (3)
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $92,000 $245,647 $87,068 $250,000 $85,000 $235,000 $220,000 $78,000 $205,000 $71,000 50.8% $190,000 $173,919 49.3% $64,000 $175,000 48.4% $60,567 44.1% 4 43.3% $160,000 $57,000 3Q17 YTD 3Q18 YTD 3Q17 3Q18 3rd Qtr YTD 3
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Sep 30, Dec 30, Sep 29, 2017 (2) 2017 2018 (2) BCO Independent Contractors 8,939 9,087 9,751 Truck Brokerage Carriers: Approved and Active (1) 32,925 34,243 40,151 Other Approved 15,138 15,691 16,803 48,063 49,934 56,954 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Sep 30, Sep 29, 2017 2018 Balance sheet (period end amounts): Debt to Capital 15% 14% Net Cash (1) $ 178,026 $ 140,330 Cash flow: Cash flow from operations $ 132,264 $ 204,205 Capital expenditures $ 16,999 $ 7,325 Share repurchase
Slide 21: 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 2017 Free Cash Flow Share Purchases Common Share Count Third quarter 2018 YTD (000's) Free cash flow (1) $ 196,880 Share purchases $ 105,48
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 10/24/2018