Slide 1: Landstar Reports Third Quarter Revenue of $1.086 Billion and Diluted EPS of $1.61
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com October 21, 2020 904-398-9400 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $1.086 BILLION AND DILUTED EARNINGS PER SHARE OF $1.61 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported revenue of $1.086 b
Slide 2: Trailing twelve-month return on average shareholders’ equity was 26 percent and to purchase up
LANDSTAR SYSTEM/2 Trailing twelve-month return on average shareholders’ equity was 26 percent and trailing twelve-month return on invested capital, representing net income divided by the sum of average equity plus average debt, was 22 percent. Landstar did not purchase any shares of its common stock
Slide 3: September 9th through the end of the fiscal month.” Gattoni continued, “The Company’s variable
LANDSTAR SYSTEM/3 share guidance of $1.11 to $1.17. On September 9, 2020, we disclosed in a Form 8-K filed with the SEC and further explained at a webcast investor conference the next day that based on overall market conditions, we expected 2020 third quarter revenue to be in a range of $1.02 billio
Slide 4: $1.150 billion to $1.200 billion.” operations centers will further support the Company’s continual efforts
LANDSTAR SYSTEM/4 percentage range. I expect that trend to continue during the remainder of the 2020 fourth quarter. Accordingly, I expect the number of loads hauled via truck in the 2020 fourth quarter to be above the number of loads hauled by truck in the 2019 fourth quarter in a high single-digit
Slide 5: diluted earnings per share guidance would be $1.61 to $1.71.” morning at 8:00 a.m.
LANDSTAR SYSTEM/5 to $1.42 per share. Excluding the one-time cost of $0.29 per diluted share related to the anticipated buyouts of the incentive commission arrangements, 2020 fourth quarter diluted earnings per share guidance would be $1.61 to $1.71.” Landstar will provide a live webcast of its quar
Slide 6: About Landstar
LANDSTAR SYSTEM/6 About Landstar: Landstar System, Inc. 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 employee
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) Thirty Nine Weeks Ended Thirteen Weeks Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Revenue $ 2,836,626 $ 3,089,6
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 26, December 28, 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 218,554 $ 319,515 Short-term investments 39,068 32,901 Trade account
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 10: Earnings Conference Call Third Quarter 2020
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2020 October 21, 2020 Date Published: 10/21/2020
Slide 11: 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 12: 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: 10/21/202
Slide 13: The Network
The Network 2019 Results Agents $4.1 billion in revenue Approx. 1,200 2.1 million loadings 555 million dollar agents 10,243 BCO trucks (2019 year-end) Landstar 56,317 Carriers (2019 year-end) Employees 17,000+ Trailers (2019 year-end) Approx. 1,300 Capacity Customers 65,000+ 25,000+ 4 Date Published
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q19 3Q20 Truck Transportation Truckload Van equipment 57% 61% Unsided/platform equipment 33% 29% Less-than-truckload 3% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 3% 5 Date Published: 10/21/2020
Slide 15: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $1,100,000 $3,089,698 $1,085,546 $3,100,000 $3,000,000 $1,050,000 $2,900,000 $2,836,626 $1,011,658 $2,800,000 $1,000,000 $2,700,000 $2,600,000 $950,000 3Q19 YTD 3Q20 YTD 3Q19 3Q20 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior Year Qt
Slide 16: 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 $1,500 3Q19 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 4Q19 1Q20 2Q20 3Q20 3Q17 4Q17 1Q18 2Q18
Slide 17: Industries Served
Industries Served As a Percentage of Transportation Quarter over Prior Revenue Year Quarter Growth 3Q19 3Q20 Consumer Durables 24.6 25.5 11% Machinery 14.9 12.1 -12% Building Products 9.1 9.8 15% AA&E, Hazmat 8.9 9.0 9% Automotive 7.0 7.7 17% Foodstuffs 4.2 4.9 26% Metals 5.8 4.8 -12% Energy 3.9 2.7
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date (4) Quarter $480,000 $170,000 $466,190 $460,000 $160,945 $160,000 $152,570 $440,000 15.1% $416,993 $150,000 15.1% 14.8% $420,000 14.7% $400,000 $140,000 3Q19 YTD 3Q20 YTD 3Q19 3Q20 3rd Qtr YTD (3) 3rd Qtr (3) Changes in gro
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $240,000 $90,000 $232,385 $225,000 $82,352 $210,000 $80,000 $195,000 $70,638 $180,000 $70,000 $168,538 49.8 % 46.3% 51.2% $165,000 40.4% $150,000 $60,000 3Q19 YTD 3Q20 YTD 3Q19 3Q20 3rd Qtr YTD 3rd Qtr Changes in opera
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Sep 28, Dec 28, Sep 26, 2019 (2) 2019 2020 (2) BCO Independent Contractors 9,738 9,554 9,866 Truck Brokerage Carriers: Approved and Active (1) 39,963 39,497 41,246 Other Approved 16,984 16,820 22,181 56,947 56,317 63,247 T
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Sep 28, Sep 26, 2019 2020 Balance sheet (period end amounts): Debt to Capital 12% 11% Net Cash (1) $ 215,265 $ 170,329 Cash flow: Cash flow from operations $ 260,714 $ 185,548 Capital expenditures (2) $ 15,199 $ 28,192 Share repur
Slide 22: 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 Third qua
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 10/21/2020