Slide 1: Landstar Reports Record Second Quarter Revenue of $1.975B and DEPS of $3.05
For Immediate Release Contacts: Jim Gattoni (CEO) Jim Todd (CFO) Landstar System, Inc. www.landstar.com July 20, 2022 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD SECOND QUARTER REVENUE OF $1.975B AND DILUTED EARNINGS PER SHARE OF $3.05 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported
Slide 2: Press release continued: buybacks, dividend, credit facility, truck revenue
LANDSTAR SYSTEM/2 common stock at an aggregate cost of $103.3 million, bringing the total number of common shares purchased during the twenty-six weeks ended June 25, 2022 to 1,397,000 shares at an aggregate cost of approximately $212.6 million. The Company is currently authorized to purchase up to
Slide 3: Press release continued: CEO commentary on demand and loads
LANDSTAR SYSTEM/3 increase of 24 percent. Revenue hauled by rail, air and ocean cargo carriers was $202.3 million, or 10 percent of revenue, in the 2022 second quarter, compared to $104.6 million, or 7 percent of revenue, in the 2021 second quarter, an increase of 93 percent. “Customer demand for ou
Slide 4: Press release continued: outlook and third quarter guidance
LANDSTAR SYSTEM/4 action by the Federal Reserve to address inflation at the risk of causing further recessionary pressure all add significant uncertainty to the performance of the overall domestic freight environment. Additionally, comparisons to prior year results become more challenging for Landst
Slide 5: Non-GAAP Financial Measures
LANDSTAR SYSTEM/5 Non-GAAP Financial Measures: In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution and variable contribution margin. The Company believes variable contri
Slide 6: Forward-looking statements and risk factors
LANDSTAR SYSTEM/6 and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; intellectual property; and other operational, fi
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) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Revenue $ 3,945,663 $ 2,858,252 $ 1,975,064 $ 1,57
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 25, December 25, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 78,220 $ 215,522 Short-term investments 41,549 35,778 Trade accounts rece
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,108,143 $ 1,583,
Slide 10: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/10 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Revenue $ 3,945,663 $ 2,858,252 $ 1,975,064 $ 1,570,7
Slide 11: Landstar System, Inc. Earnings Conference Call Second Quarter 2022
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2022 July 20, 2022 Date Published: 07/20/2022
Slide 12: Forward Looking Statements Disclaimer
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 stateme
Slide 13: Non-GAAP Financial Measures
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 variable con
Slide 14: Who We Are
Who We Are Landstar, a Fortune 500 company, is a worldwide, technology-enabled, 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
Slide 15: Our Network
Our Network June 25, 2022 YTD Results $3.95 billion in revenue Agents 1.35 million loadings Approx. 1,200 593 million dollar agents (based on 2021 fiscal year) 11,887 BCO trucks Landstar 100,103 Carriers Employees 18,000+ Trailers Approx. 1,300 Capacity Customers 111,000+ 25,000+ 5 Date Published: 0
Slide 16: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q21 2Q22 Truck Transportation (1) Truckload Van equipment 54% 52% Unsided/platform equipment 25% 24% Less-than-truckload 2% 2% Other truck transportation 11% 11% Rail intermodal 3% 2% Ocean and air cargo 4% 8% (1) In connection with the impac
Slide 17: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $4,200,000 $3,945,663 $2,200,000 $3,900,000 $1,975,064 $2,000,000 $3,600,000 $1,800,000 $3,300,000 $1,570,718 $2,858,252 $1,600,000 $3,000,000 $2,700,000 $1,400,000 $2,400,000 $1,200,000 2Q21 YTD 2Q22 YTD 2Q21 2Q22 Year over Prior Year Rate ( 1) Volume
Slide 18: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 400,000 $3,000 370,000 $2,800 340,000 $2,600 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 2Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 3Q21 4Q21 1Q22 2Q22 2Q19 3Q19 4Q19 1Q20 2Q20
Slide 19: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q21 2Q22 Change in Revenue Consumer Durables 29.5 29.4 26% Machinery 11.2 11.5 28% Automotive 6.7 8.8 66% Building Products 8.7 8.3 20% AA&E, Hazmat 9.2 8.1 12% Metals 5.2 5.1 24% Substitute Line Haul 6.1 3.6 -27% Foodstuf
Slide 20: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $440,000 $220,000 $422,646 $208,080 $400,000 $200,000 $174,844 $360,000 $180,000 $321,975 $320,000 $160,000 11.3% 10.7% 11.1% 10.5% $280,000 $140,000 2Q21 YTD 2Q22 YTD 2Q21 2Q22 (1) Gross profit equals revenue less
Slide 21: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date Quarter $570,000 $280,000 $267,520 $538,011 $520,000 $260,000 $470,000 $240,000 $220,784 $420,000 $410,024 $220,000 $370,000 14.3% 13.6% $200,000 14.1% 13.5% $320,000 $180,000 2Q21 YTD 2Q22 YTD 2Q21 2Q22 2n
Slide 22: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date Quarter $330,000 $170,000 $313,251 $150,418 $150,000 $290,000 $130,000 $122,248 $250,000 $225,516 $110,000 $210,000 70.0% 74.1% 69.9% 72.3% $90,000 $170,000 $70,000 2Q21 YTD 2Q22 YTD 2Q21 2Q22 12 Date Published: 07/20/2022
Slide 23: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date Quarter $330,000 $175,000 $313,251 $150,418 $290,000 $150,000 $122,248 $250,000 $125,000 $225,516 $210,000 $100,000 55.0% 58.2% 55.4% 56.2% $170,000 $75,000 2Q21 YTD 2Q22 YTD 2Q21 2Q22 2nd Qtr YTD 2nd Qtr Changes in ope
Slide 24: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Jun 26, Dec 25, Jun 25, (2) 2021 2021 2022 (2) BCO Independent Contractors 10,778 11,057 11,023 Truck Brokerage Carriers: Approved and Active (1) 53,891 64,476 70,649 Other Approved 24,098 25,870 29,454 77,989 9
Slide 25: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Jun 26, Jun 25, 2021 2022 Balance sheet (period end amounts): Debt to Capital 9% 11% Net Cash (1) $ 157,333 $ 8,943 Cash flow (year-to-date): Cash flow from operations $ 137,176 $ 209,651 Capital expenditures $ 9,000 $ 7,467 Share repurch
Slide 26: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 $300,000 42,000 $250,000 41,000 $200,000 40,000 $150,000 39,000 $100,000 38,000 $50,000 $0 37,000 2017 2018 2019 2020 2021 Free Cash Flow Share Purchases Dividends Paid Common Share Count Se cond Qua rte r 2022 YTD (00
Slide 27: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Revenue $ 3,945,663 $ 2,858,252 $ 1,975,064 $ 1,570,718 Costs of revenue: Purchased transportation 3,096,018 2,226
Slide 28: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 07/20/2022