Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2018 Earnings Presentation
23 slides from Landstar System's earnings presentation, Jan 30, 2019
Slide 1: Landstar System Reports Record Fourth Quarter Revenue of $1.182 Billion
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com January 30, 2019 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD FOURTH QUARTER REVENUE OF $1.182 BILLION AND ALL-TIME QUARTERLY RECORD DILUTED EARNINGS PER SHARE OF $1.68 Jacksonville, FL – Landstar System, Inc. (NASDAQ:
Slide 2: related to the Company’s reasonable estimate of the change in future tax rates on
LANDSTAR SYSTEM/2 significance in driving this decrease, were one-time tax benefits of approximately $19.5 million included in net income in the 2017 fourth quarter, or $0.46 per diluted share, related to the Company’s reasonable estimate of the change in future tax rates on net deferred tax liabili
Slide 3: CEO commentary on fourth quarter performance
LANDSTAR SYSTEM/3 “I am very pleased with Landstar’s financial performance during the 2018 fourth quarter,” said Landstar’s President and Chief Executive Officer Jim Gattoni. “The 2018 fourth quarter established fourth quarter records for revenue, gross profit and operating income, while diluted ear
Slide 4: Full year 2018 results and near term outlook
LANDSTAR SYSTEM/4 approximately $969 million higher than the previous record set in 2017. Gross profit in 2018 was $667 million, also an annual record. Record revenue and gross profit in 2018 was provided on the strength of approximately 2,060,000 loads hauled via truck capacity, the highest number
Slide 5: Webcast information and safe harbor statement
LANDSTAR SYSTEM/5 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 Fourth Quarter 2018 Earni
Slide 6: About Landstar System
LANDSTAR SYSTEM/6 range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management syste
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) Fiscal Years Ended Fiscal Quarters Ended December 29, December 30, December 29, December 30, 2018 2017 2018 2017 Revenue $ 4,615,144 $ 3,646,364 $ 1,1
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) December 29, December 30, 2018 2017 ASSETS Current assets: Cash and cash equivalents $ 199,736 $ 242,416 Short-term investments 40,058 48,928 Trade accounts
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 29, December 30, December 29, December 30, 2018 2017 2018 2017 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,791
Slide 10: Earnings Conference Call Fourth Quarter 2018
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2018 January 30, 2019 Date Published: 01/30/2019
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: 01/30/201
Slide 13: The Network
The Network 2018 Results Agents $4.6 billion in revenue Approx. 1,300 2.1 million loadings 608 million dollar agents 10,599 BCO trucks (2018 year-end) Landstar 59,054 Carriers (2018 year-end) Employees 16,000+ Trailers (2018 year-end) Approx. 1,200 Capacity Customers 68,000+ 25,000+ 4 Date Published
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q17 4Q18 Truck Transportation Truckload Van equipment 60% 60% Unsided/platform equipment 29% 29% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 4% 4% 5 Date Published: 01/30/2019
Slide 15: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $4,800,000 $4,615,144 $1,300,000 $4,500,000 $1,182,351 $1,220,000 $4,200,000 $1,140,000 $3,900,000 $3,646,364 $1,051,592 $3,600,000 $1,060,000 $3,300,000 $980,000 2017 2018 4Q17 4Q18 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior Year
Slide 16: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads (1) 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 $1,500 2Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q17 4Q15 1Q16 2
Slide 17: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q17 4Q18 Growth Consumer Durables 23.2 24.2 17% Machinery 13.4 13.6 14% Automotive 7.3 9.1 41% Building Products 9.1 8.3 2% Metals 6.2 5.8 5% AA&E, Hazmat 7.5 7.1 7% Foodstuffs 5.4 4.1 -16% Energy 2.8 2.8 13% Other 25.1 25
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year Quarter $667,181 $670,000 $170,000 $168,926 $640,000 $610,000 $160,000 $580,000 $149,689 $543,845 $150,000 $550,000 14.5% 14.3% 14.9% 14.2% $520,000 $140,000 2017 2018 4Q17 4Q18 Fiscal Year (3) 4th Qtr (3) Changes in gross p
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Fiscal Year Quarter $92,000 $340,000 $331,735 $86,088 $320,000 $85,000 $300,000 $78,000 $280,000 $260,000 $71,000 $70,049 $243,968 51.0% $240,000 49.7% $64,000 $220,000 48.4% 46.8% 44.9% 4 $200,000 $57,000 2017 2018 4Q17 4Q18 Fiscal Year 4
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Dec 30, Dec 29, (2) 2017 2018 (2) BCO Independent Contractors 9,087 9,884 Truck Brokerage Carriers: Approved and Active (1) 34,243 41,069 Other Approved 15,691 17,985 49,934 59,054 Total Available Truck Capacity Providers
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Dec 30, Dec 29, 2017 2018 Balance sheet (period end amounts): Debt to Capital 16% 16% Net Cash (1) $ 166,231 $ 111,369 Cash flow: Cash flow from operations $ 138,963 $ 297,901 (2) Capital expenditures $ 24,046 $ 9,747 Share repurc
Slide 22: Free Cash Flow / Share Purchases
Free Cash Flow (1) / Share Purchases (In Thousands) $300,000 50,000 $250,000 48,000 $200,000 46,000 $150,000 44,000 $100,000 42,000 $50,000 $- 40,000 2014 2015 2016 2017 2018 Free Cash Flow Share Purchases Common Share Count Fourth quarter 2018 YTD (000's) Free cash flow (1) $ 288,154 Share purchase
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 01/30/2019