Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2024 Earnings Presentation
35 slides from Landstar System's earnings presentation, Jan 29, 2025
Slide 1: Landstar System reports fourth quarter revenue of $1.209B and EPS of $1.31
For Immediate Release January 29, 2025 LANDSTAR SYSTEM REPORTS FOURTH QUARTER REVENUE OF $1.209B AND EARNINGS PER SHARE OF $1.31 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.31 in the 2024 four
Slide 2: Fourth quarter results summary and revenue commentary
LANDSTAR SYSTEM/2 4Q 2024 4Q 2023 Revenue $ 1,209,330 $ 1,204,445 Gross profit $ 109,423 $ 124,594 Variable contribution $ 166,523 $ 178,146 Operating income $ 57,771 $ 74,567 Basic and diluted earnings per share $ 1.31 $ 1.62 (1) Dollars above in thousands, except per share amounts. (2) Please refe
Slide 3: Gross profit, balance sheet and company overview
LANDSTAR SYSTEM/3 fiscal year of 4.7%, primarily driven by both increased cargo claim costs related to fraud and theft in the supply chain and increased auto liability claim costs. Gross profit in the 2024 fourth quarter was $109 million and variable contribution (defined as revenue less the cost of
Slide 4: Non-GAAP financial measures
LANDSTAR SYSTEM/4 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR. Non-GAA
Slide 5: Forward-looking statements
LANDSTAR SYSTEM/5 of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2023 fiscal year; decreased demand for transportation services; U.S. trade relationships; substantial industry competition; disruptions or failures in the Company’s computer
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) Fiscal Years Ended Fiscal Quarters Ended December 28, December 30, December 28, December 30, 2024 2023 2024 2023 Revenue $ 4,819,245 $ 5,303,322 $ 1,2
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) December 28, December 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 515,018 $ 481,043 Short-term investments 51,619 59,661 Trade accounts
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 28, December 30, December 28, December 30, 2024 2023 2024 2023 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,447
Slide 9: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 28, December 30, December 28, December 30, 2024 2023 2024 2023 Revenue $ 4,819,245 $ 5,303,322 $ 1,209,3
Slide 10: Landstar System, Inc. 4Q 2024 Earnings Conference Call
Landstar System, Inc. 4Q 2024 Earnings Conference Call Date
Slide 11: Forward-Looking Statements Disclaimer
4Q 2024 Forward-Looking Statements Disclaimer The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are “forward-looking statements.” This presentation may make certain
Slide 12: Non-GAAP Financial Measures
4Q 2024 Non-GAAP Financial Measures In this slide presentation, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution, variable contribution margin and operating income as a percentage of variable contribution. Management believes varia
Slide 13: Executive Summary
4Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 14: CEO Perspective: Results Highlights
CEO Perspective Slide header RESULTS HIGHLIGHTS Dollars in Millions (except per share amounts) 4Q revenue performance • First year over year quarterly revenue growth since 3Q 2022 • 6% year over year revenue growth on our Metric 4Q 2024 4Q 2023 Chg. unsided/platform service offering • 4Q 2024 achiev
Slide 15: Landstar Network and 4Q Operating Results
Landstar Network and 4Q Operating Results LANDSTAR NETWORK 4Q R E S U L T S Agents Customers Capacity Employees $1.08B Truck Revenue ~1,050 23,000+ 78,000+ ~1,400 477K Truck Loadings $2,268 Truck Revenue per Load 485 Million $ Agents 8,843 BCO Trucks 70,245 Carriers 17,600+ Trailers 0.59 DOT Acciden
Slide 16: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period AVAILABLE TRUCK CAPACITY PROVIDERS Type of Capacity Dec 28, 2024 Dec 30, 2023 BCO Independent Contractors 8,082 9,024 Truck Brokerage Carriers Approved and Active (1) 43,718 49,111 Other Approved 26,527 27,524 Total Tr
Slide 17: Financial Results
4Q 2024 Financial Results Jim Todd Chief Financial Officer 8
Slide 18: Revenue
Revenue Slide header Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $1,209.3 $1,204.4 Truck 3.1% (3.4%) (0.4%) Rail Intermodal (14.1%) (12.3%) (24.6%) Ocean/Air 22.7% 11.8% 37.2% Insurance Premiums N/A N/A (12.4%) 4Q 2024 4Q 2023 Total Revenue — — 0.4% (1) Percentage chan
Slide 19: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue up 1% Y-O-Y Revenue Share Y-O-Y Change 4Q 2024 4Q 2023 Market Segment in Revenue 27.4 27.8 Consumer Durables (1) 13.7 13.7 Machinery 1 10.1 11.6 Automotive (12) 9.4 8.1 Building Prod
Slide 20: Gross Profit and Variable Contribution with Associated Margins
Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 4Q Profit Contribution 2023 14.8 $178.1 $166.5 Revenue – Fixed (3) (0.3) $124.6 $109.4 Revenue – Variable (0.5) Change in Mix/Other (0.2) 9.0% 10.3% 13.8
Slide 21: Operating Income as a Percentage of Gross Profit and Variable Contribution
Operating Income Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions RESULTS CHANGE IN PERCENTAGE of Variable Contribution Operating Percentage of Amounts in % 4Q Income Gross Profit Variable Contribution 2023 41.9) $74.6 59.8% 52.8% Other operating costs (1.4)
Slide 22: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics Dollars in Millions N E T C A S H (1) SOURCES / USES OF CASH with Debt to Capital (2) Year-to-date as of date indicated as of date indicated Cash Flow Type Dec 28, 2024 Dec 30, 2023 Cash flow from operations $ 286.6 $ 393.6 $464.3 $469.6 Cash capital expend
Slide 23: 1Q Guidance & Closing Remarks
4Q 2024 1Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 24: 1Q Guidance
1Q Guidance Slide header Consolidated Revenue of $1.075 - $1.175 billion – Truck Loads 7% below to 2% below prior year – Truck Revenue per Load 2% below to 3% above prior year Earnings per Share of $1.05 — $1.25 – Insurance Expense to approximate 6.0% of BCO revenue – Effective Income Tax Rate o
Slide 25: Appendix
4Q 2024 Appendix 16
Slide 26: Revenue Breakdown by Service Type
Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 4Q 2 0 2 4 by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TRUCK TRANSPORTATION TRUCKLOAD Van — 49%, Unsided/Platform — 30% LTL — 2% OTHER TRUCK — 8% RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 7% ALL OTHER — 2% CHANGE
Slide 27: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends VAN UNSIDED / PLATFORM NUMBER OF LOADS NUMBER OF LOADS 400,000 150,000 300,000 100,000 200,000 50,000 100,000 0 0 REVENUE PER LOAD REVENUE PER LOAD $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $500 $500 $- $-
Slide 28: Revenue – Fiscal Year
Revenue Slide header– Fiscal Year Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $5,303.3 $4,819.2 Truck (1.7%) (8.4%) (10.0%) Rail Intermodal (9.2%) (5.6%) (14.2%) Ocean/Air 3.6% 4.9% 8.7% Insurance Premiums N/A N/A (12.7%) 2024 2023 Total Revenue — — (9.1%) (1) Percenta
Slide 29: Gross Profit and Variable Contribution – Fiscal Year
Gross Profit and Variable Contribution – Fiscal Year with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 2024 Profit Contribution 2023 14.6 $772.4 $681.3 Revenue – Fixed (1) 0.0 $545.3 $456.0 Revenue – Variable (0.4) Change in Mix/Other (0.1) 9.5% 10.3
Slide 30: Operating Income – Fiscal Year
Operating Income – Fiscal Year Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions RESULTS CHANGE IN PERCENTAGE of Variable Contribution Operating Percentage of Income Gross Profit Variable Contribution Amounts in % 2024 2023 44.6) 63.1% $344.1 54.6% Other oper
Slide 31: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Fiscal Years Ended Fiscal Quarters Ended Dec 28, Dec 30, Dec 28, Dec 30, 2024 2023 2024 2023 Revenue $ 4,819,245 $ 5,303,322 $ 1,209,330 $ 1,204,445 Costs of revenue: Purchased transportation 3,745,241 4,068,262 945,857 927
Slide 32: Free Cash Flow with Stock Purchases and Dividends
Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5–YEAR SUMMARY Cash Flow Item 2020 2021 2022 2023 2024 Cash flow from operations $ 211 $ 277 $ 623 $ 394 $ 287 Cash capital expenditures(1) $ 34 $ 24 $ 26 $ 26 $ 31 Free cash flow $ 177 $ 253 $ 597 $ 368 $ 256 Share rep
Slide 33: DOT Accident Frequency
DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5–YEAR SUMMARY 0.70 0.65 0.65 0.62 0.60 0.60 0.59 0.57 0.55 0.50 2020 2021 2022 2023 2024 (1) A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a highway in
Slide 34: Landstar System, Inc. 4Q 2024 Earnings Conference Call
Landstar System, Inc. 4Q 2024 Earnings Conference Call Date
Slide 35: LANDSTAR SYSTEM/10
LANDSTAR SYSTEM/10