Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2020 Earnings Presentation
22 slides from Landstar System's earnings presentation, Apr 22, 2020
Slide 1: Landstar System Reports 2020 First Quarter Results and Response to COVID-19
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com April 22, 2020 904-398-9400 LANDSTAR SYSTEM REPORTS 2020 FIRST QUARTER RESULTS AND ITS RESPONSE TO THE COVID-19 PANDEMIC Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings per share of $1
Slide 2: Landstar’s previously announced share purchase program. Also, Landstar announced “Overall, I was pleased with
LANDSTAR SYSTEM/2 Landstar’s previously announced share purchase program. Also, Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.185 per share payable on May 29, 2020, to stockholders of record as of the close of business on May 7, 2020. It is currently th
Slide 3: functions, during March we transitioned over 800 of Landstar’s 1,200 corporate “During the 2020
LANDSTAR SYSTEM/3 administrative and operational support, are centralized in two primary Company locations. In order to protect the health and well-being of all Landstar employees and their families, reduce the risk of community spread within our two primary office locations and substantially limit
Slide 4: during the 2020 second quarter which could impact the Company’s earnings.” “Our overarching goals
LANDSTAR SYSTEM/4 that Landstar will provide additional financial pandemic relief to its agents and/or BCOs during the 2020 second quarter which could impact the Company’s earnings.” “Our overarching goals throughout this crisis are to preserve the culture and strength of the Landstar network while
Slide 5: Forward-looking statements and risk factors
LANDSTAR SYSTEM/5 commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; U.S. foreign trade relationships; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security i
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 March 28, March 30, 2020 2019 Revenue $ 927,566 $ 1,033,000 Investment income 1,167 1,138 Costs and expenses: Purchased transport
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) March 28, December 28, 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 177,224 $ 319,515 Short-term investments 33,627 32,901 Trade accounts re
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended March 28, March 30, 2020 2019 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 545,307 $ 619,014 Unsided/platform equipment 286,328 310,721 Less-t
Slide 9: Earnings Conference Call First Quarter 2020
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2020 April 22, 2020 Date Published: 04/22/2020
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: 04/22/202
Slide 12: The Network
The Network 2019 Results Agents $4.1 billion in revenue Approx. 1,200 2.1 million loadings 555 million dollar agents 10,243 BCO trucks (2019 year-end) Landstar 56,317 Carriers (2019 year-end) Employees 17,000+ Trailers (2019 year-end) Approx. 1,300 Capacity Customers 65,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q19 1Q20 Truck Transportation Truckload Van equipment 60% 59% Unsided/platform equipment 30% 31% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 3% 5 Date Published: 04/22/2020
Slide 14: Revenue
Revenue ($’s in thousands) Quarter Quarter $1,100,000 Qtr over Prior Year Qtr Rate ( 1) Volume ( 2) Change $1,033,000 $1,050,000 Truc k Revenue - 5.0% - 5.6% - 10.3% $1,000,000 Rail Intermodal Revenue 1.2% - 7.4% - 6.3% $927,566 $950,000 Oc ean/Air Revenue - 7.9% - 5.9% - 13.3% $900,000 Insuranc e P
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 $1,500 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q17 2Q17 3Q17
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q19 1Q20 Change in Revenue Consumer Durables 24.8 23.9 -14% Machinery 13.6 13.4 -12% Automotive 8.6 7.4 -23% Building Products 8.4 9.1 -3% Metals 6.3 5.9 -17% AA&E, Hazmat 8.7 9.1 -6% Foodstuffs 4.0 4.7 5% Energy 2.4 3.4 2
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter Quarter 1st Qtr (3) $160,000 $155,574 Changes in gross profit margin % 2019 Period 15.1 $150,000 $142,933 Revenue - fixed gp margin 0.1 15.1% Revenue - variable gp margin 0.0 $140,000 15.4% Change in mix and other 0.2 2020 Perio
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Quarter Quarter $85,000 $80,896 1st Qtr $75,000 Changes in operating margin % 2019 Period 52.0 $65,000 Other operating costs -0.5 Insurance and claims -7.7 $54,005 $55,000 52.0% SG&A -5.2 37.8% Depreciation and amortization -0.8 $45,000 20
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Mar 30, Dec 28, Mar 28, 2019 (2) 2019 2020 (2) BCO Independent Contractors 9,911 9,554 9,444 Truck Brokerage Carriers: Approved and Active (1) 40,404 39,497 38,879 Other Approved 18,659 16,820 16,657 59,063 56,317 55,536 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) QTR QTR Mar 30, Mar 28, 2019 2020 Balance sheet (period end amounts): Debt to Capital 14% 14% Net Cash (1) $ 188,153 $ 108,930 Cash flow: Cash flow from operations $ 121,416 $ 99,216 Capital expenditures $ 4,576 $ 5,799 Share repurchases
Slide 21: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 42,500 $300,000 42,000 $250,000 41,500 $200,000 41,000 40,500 $150,000 40,000 $100,000 39,500 $50,000 39,000 $0 38,500 2015 2016 2017 2018 2019 Free Cash Flow Share Purchases Dividends Paid Common Share Count Fi rst qu
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 04/22/2020