Slide 1: Landstar System Reports Third Quarter Revenue of $788 Million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com October 19, 2016 904-398-9400 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $788 MILLION AND DILUTED EARNINGS PER SHARE OF $0.86 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported third quarter diluted
Slide 2: Press release continued: buybacks, dividend and CEO commentary
LANDSTAR SYSTEM/2 Landstar purchased 350,000 shares of its common stock at an aggregate cost of $24.0 million bringing the total number of common shares purchased during the thirty-nine weeks ended September 24, 2016 to 773,000 shares at an aggregate cost of $50.5 million. Currently, there are appro
Slide 3: Press release continued: load volumes, pricing and fourth quarter outlook
LANDSTAR SYSTEM/3 Overall, the number of loads hauled via truck in the 2016 third quarter decreased 1 percent from the 2015 third quarter. This overall decrease in volume was driven by a 6 percent increase in the number of loads hauled via van equipment, offset by a 14 percent decrease in the number
Slide 4: Press release continued: fourth quarter outlook
LANDSTAR SYSTEM/4 approximately 19,000 loads hauled via truck related to that project. Through the first few weeks of October, we have experienced the normal seasonal pattern for revenue per load on loads hauled via truck and, therefore, I anticipate revenue per load on loads hauled via truck to be
Slide 5: Forward-looking statements and risk factors
LANDSTAR SYSTEM/5 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 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 24, September 26, September 24, September 26, 2016 2015 2016 2015 Revenue $ 2,274,805 $ 2,472,4
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 24, December 26, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 170,805 $ 114,520 Short-term investments 56,679 48,823 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 24, September 26, September 24, September 26, 2016 2015 2016 2015 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 9: Landstar System, Inc. Earnings Conference Call Third Quarter 2016
Landstar System, Inc. Earnings Conference Call Third Quarter 2016 October 19, 2016 Date Published: 10/19/2016
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- lookin
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: 10/19/201
Slide 12: The Network
The Network 2015 Results $3.3 billion in revenue 1.8 million loadings 512 million dollar agents 9,500 BCO trucks (2015 year-end) 44,000 Carriers (2015 year-end) 14,000 Trailers (2015 year-end) 4 Date Published: 10/19/2016
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q15 3Q16 Truck Transportation Truckload Van equipment 55% 59% Unsided/platform equipment 35% 32% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% 5 Date Published: 10/19/2016
Slide 14: Revenue
Revenue ($’s in thousands) Year to Date Quarter to Date $2,700,000 $900,000 $2,472,489 $2,500,000 $841,726 $2,274,805 $825,000 $2,300,000 $787,938 $2,100,000 $750,000 $1,900,000 $1,700,000 $675,000 $1,500,000 3Q15 YTD 3Q16 YTD $600,000 3Q15 3Q16 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 300,000 $1,900 290,000 280,000 $1,800 270,000 260,000 $1,700 250,000 240,000 $1,600 230,000 220,000 $1,500 2Q15 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q13 3Q14 3Q13 1Q14 2Q14 4
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Q3 Q3 Year Quarter 2015 2016 Growth Consumer Durables 18.7 20.8 4% Machinery 14.3 14.6 -4% Automotive 12.4 8.9 -33% Building Products 8.4 9.0 1% Metals 6.8 6.7 -9% AA&E, Hazmat 7.4 7.9 1% Foodstuffs 5.3 5.5 -3% Energy 4.5 3.7 -24% Other
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year to Date Quarter to Date $390,000 $130,000 $373,063 $126,846 $375,000 $121,792 $354,985 $360,000 $120,000 $345,000 $330,000 15.1% $110,000 15.1% $315,000 15.6% 15.5% $300,000 $100,000 3Q15 YTD 3Q16 YTD 3Q15 3Q16 3rd Qtr YTD (3) 3rd
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year to Date Quarter to Date $200,000 $75,000 $179,058 $180,000 $68,000 $63,980 $159,486 $160,000 $61,000 $58,461 $140,000 48.0% 50.4% $54,000 $120,000 $47,000 44.9% 48.0% $100,000 $40,000 3Q15 YTD 3Q16 YTD 3Q15 3Q16 3rd Qtr YTD 3rd Qtr Ch
Slide 19: Truck Capacity Data
Truck Capacity Data (All information other than fuel surcharges is provided as of the end of the period) QTR YTD QTR Sep 26, Dec 26, Sep 24, 2015 2015 2016 BCO Independent Contractors 8,869 8,907 8,889 Truck Brokerage Carriers: Approved and Active (1) 29,127 29,728 30,860 Other Approved 13,813 14,71
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Sep 26, Sep 24, 2015 2016 Balance sheet (period end amounts): Debt to Capital 17% 21% Net Cash (1) $ 61,636 $ 91,883 Cash flow: Cash flow from operations $ 148,084 $ 171,297 Capital expenditures $ 3,798 $ 17,833 Share repurchases
Slide 21: Free Cash Flow / Share Purchases
Free Cash Flow / 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 2012 2013 2014 2015 2016(2) Free Cash Flow Share Purchases Common Share Count Third quarter 2016 YTD (000's) Free cash flow (1) $ 153,464 Share purchases $ 50,516
Slide 22: Date Published: 10/19/2016
14 Date Published: 10/19/2016