Slide 1: Landstar Reports Record Quarterly Revenue of $1.183 Billion and Record Second Quarter EPS
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com July 25, 2018 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF $1.183 BILLION AND RECORD SECOND QUARTER DILUTED EARNINGS PER SHARE OF $1.51 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) report
Slide 2: Share purchases, liquidity and quarterly dividend
LANDSTAR SYSTEM/2 Landstar purchased approximately 986,000 shares of its common stock during the 2018 second quarter at an aggregate cost of approximately $104.0 million. Currently, the Company is authorized to purchase up to an additional 2,000,000 shares of the Company’s common stock under Landsta
Slide 3: Third quarter 2018 outlook and earnings call details
LANDSTAR SYSTEM/3 Gattoni further commented, “As expected, the pricing environment for our truckload services continued to be very strong in the 2018 second quarter, as industry-wide truck capacity continued to be very tight. Revenue per load on loads hauled via van equipment increased 25 percent ov
Slide 4: Forward-looking statements
LANDSTAR SYSTEM/4 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 5: Consolidated Statements of Income
LANDSTAR SYSTEM/5 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Revenue $ 2,230,712 $ 1,651,342 $ 1,182,786 $ 870,43
Slide 6: Consolidated Balance Sheets
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 30, December 30, 2018 2017 ASSETS Current assets: Cash and cash equivalents $ 148,641 $ 242,416 Short-term investments 40,323 48,928 Trade accounts rec
Slide 7: Supplemental Information
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,369,476 $ 978,918
Slide 8: Earnings Conference Call Second Quarter 2018
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2018 July 25, 2018 Date Published: 07/25/2018
Slide 9: 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 10: 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: 07/25/201
Slide 11: The Network
The Network 2017 Results Agents $3.6 billion in revenue Approx. 1,200 2.0 million loadings 542 million dollar agents 9,696 BCO trucks (2017 year-end) Landstar 49,934 Carriers (2017 year-end) Employees 15,000+ Trailers (2017 year-end) Approx. 1,300 Capacity Customers 59,000+ 25,000+ 4 Date Published:
Slide 12: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q17 2Q18 Truck Transportation Truckload Van equipment 58% 60% Unsided/platform equipment 33% 31% Less-than-truckload 3% 2% Rail intermodal 2% 3% Ocean and air cargo 2% 2% 5 Date Published: 07/25/2018
Slide 13: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $2,300,000 $2,230,712 $2,200,000 $1,200,000 $1,182,786 $2,100,000 $1,120,000 $2,000,000 $1,900,000 $1,040,000 $1,800,000 $1,651,342 $960,000 $1,700,000 $870,434 $1,600,000 $880,000 $1,500,000 $800,000 2Q17 YTD 2Q18 YTD 2Q17 2Q18 Year over Prior Year Ra
Slide 14: 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 $1,500 4Q16 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q15 3Q15 4Q15
Slide 15: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q17 2Q18 Growth Consumer Durables 21.1 22.8 47% Machinery 15.2 14.5 30% Automotive 8.2 8.0 33% Building Products 9.7 9.5 34% Metals 6.7 6.9 41% AA&E, Hazmat 9.0 9.0 37% Foodstuffs 4.7 5.6 61% Energy 3.7 2.3 -16% Other 21.7
Slide 16: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $340,000 $176,000 $171,447 $326,951 $320,000 $166,000 $300,000 $156,000 $280,000 $146,000 $254,151 14.7% $132,564 14.5% $260,000 $136,000 15.4% 15.2% $240,000 $126,000 2Q17 YTD 2Q18 YTD 2Q17 2Q18 2nd Qtr YTD (3) 2nd
Slide 17: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $162,000 $158,579 $86,000 $83,426 $147,000 $76,000 $132,000 $66,000 $113,352 $61,018 $117,000 48.7% 48.5% 44.6% 48.4% 4 46.0% $102,000 $56,000 2Q17 YTD 2Q18 YTD 2Q17 2Q18 2nd Qtr YTD 2nd Qtr Changes in operating margin
Slide 18: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Jul 1, Dec 30, Jun 30, 2017 (2) 2017 2018 (2) BCO Independent Contractors 8,818 9,087 9,501 Truck Brokerage Carriers: Approved and Active (1) 31,636 34,243 37,045 Other Approved 15,381 15,691 15,406 47,017 49,934 52,451 To
Slide 19: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jul 1, Jun 30, 2017 2018 Balance sheet (period end amounts): Debt to Capital 16% 14% Net Cash (1) $ 154,274 $ 85,002 Cash flow: Cash flow from operations $ 79,799 $ 113,029 Capital expenditures $ 6,628 $ 4,121 Share repurchases $
Slide 20: 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 Second quarter 2018 YTD (000's) Free cash flow (1) $ 108,908 Share purchases $ 105,4
Slide 21: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 07/25/2018