Slide 1: Landstar System Reports Second Quarter Revenue of $775 Million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com July 20, 2016 904-398-9400 LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $775 MILLION AND DILUTED EARNINGS PER SHARE OF $0.76 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported second quarter diluted
Slide 2: Return on equity, share purchases, dividend and CEO commentary
LANDSTAR SYSTEM/2 Trailing twelve-month return on average shareholders’ equity was 29 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 23 percent. Landstar purchased approximately 423,000 shares of its common stock d
Slide 3: CEO commentary on pricing, loads and operating margin
LANDSTAR SYSTEM/3 second quarter. Excluding the loadings related to that project we experienced a slight increase in loads hauled via truck over the 2015 second quarter. However, Landstar’s truckload services continued to experience significant pricing pressure throughout the 2016 second quarter, as
Slide 4: Third quarter 2016 outlook
LANDSTAR SYSTEM/4 Through the first few weeks of July, we have experienced the normal seasonal uptick in revenue per load on loads hauled via truck. Also, the number of loads hauled via truck during the first few weeks of July is trending with the historical second quarter to third quarter pattern.
Slide 5: Forward-looking statements and About Landstar
LANDSTAR SYSTEM/5 status of independent contractors; regulatory and legislative changes; catastrophic loss of a Company facility; intellectual property; unclaimed property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2015 fiscal year, desc
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) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 27, June 25, June 27, 2016 2015 2016 2015 Revenue $ 1,486,867 $ 1,630,763 $ 775,223 $ 868,38
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 25, December 26, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 153,370 $ 114,520 Short-term investments 61,528 48,823 Trade accounts rec
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 25, June 27, June 25, June 27, 2016 2015 2016 2015 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 886,195 $ 946,598
Slide 9: Earnings Conference Call Second Quarter 2016
Landstar System, Inc. Earnings Conference Call Second Quarter 2016 July 20, 2016 Date Published: 07/20/2016
Slide 10: 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- lookin
Slide 11: 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: 07/20/201
Slide 12: The Network
The Network 2015 Results $3.3 billion in revenue 1.8 million loadings 512 million dollar agents 9,500 BCO trucks (2015 year-end) 44,000 Carriers (2015 year-end) 14,000 Trailers (2015 year-end) 4 Date Published: 07/20/2016
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q15 2Q16 Truck Transportation Truckload Van equipment 57% 59% Unsided/platform equipment 34% 31% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% 5 Date Published: 07/20/2016
Slide 14: Revenue
Revenue ($’s in thousands) Year to Date Quarter to Date $1,700,000 $900,000 $1,630,763 $868,383 $1,600,000 $1,486,867 $825,000 $775,223 $1,500,000 $750,000 $1,400,000 $1,300,000 $675,000 $1,200,000 $600,000 2Q15 YTD 2Q16 YTD 2Q15 2Q16 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 300,000 $1,900 290,000 280,000 $1,800 270,000 260,000 $1,700 250,000 240,000 $1,600 230,000 220,000 $1,500 1Q15 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 2Q15 3Q15 4Q15 1Q16 2Q16 3Q13 2Q14 2Q13 4Q13 1Q14 3
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Q2 Q2 Year Quarter 2015 2016 Growth Consumer Durables 18.6 20.4 -2% Machinery 14.8 14.6 -12% Automotive 11.8 9.1 -31% Building Products 8.6 9.6 0% Metals 6.8 7.0 -8% AA&E, Hazmat 7.5 8.0 -5% Foodstuffs 5.2 5.1 -13% Energy 4.0 3.0 -34% O
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year to Date Quarter to Date $260,000 $140,000 $246,217 $248,000 $130,774 $130,000 $233,193 $236,000 $120,969 $120,000 $224,000 15.1% 15.1% $212,000 $110,000 15.7% 15.6% $200,000 $100,000 2Q15 YTD 2Q16 YTD 2Q15 2Q16 2nd Qtr YTD (3) 2nd
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year to Date Quarter to Date $120,000 $75,000 $115,078 $66,033 $68,000 $110,000 $101,025 $61,000 $100,000 46.7% $54,000 $53,093 50.5% $90,000 $47,000 43.3% 43.9% $80,000 $40,000 2Q15 YTD 2Q16 YTD 2Q15 2Q16 2nd Qtr YTD 2nd Qtr Changes in op
Slide 19: Truck Capacity Data
Truck Capacity Data (All information other than fuel surcharges is provided as of the end of the period) QTR YTD QTR Jun 27, Dec 26, Jun 25, 2015 2015 2016 BCO Independent Contractors 8,726 8,907 8,856 Truck Brokerage Carriers: Approved and Active (1) 28,387 29,728 30,137 Other Approved 13,126 14,71
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jun 27, Jun 25, 2015 2016 Balance sheet (period end amounts): Debt to Capital 17% 19% Net Cash (1) $ 38,081 $ 95,965 Cash flow: Cash flow from operations $ 82,017 $ 105,135 Capital expenditures $ 3,050 $ 8,955 Share repurchases $
Slide 21: Free Cash Flow / Share Purchases
Free Cash Flow / 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 2012 2013 2014 2015 2016(2) Free Cash Flow Share Purchases Common Share Count Second quarter 2016 YTD (000's) Free cash flow (1) $ 96,180 Share purchases $ 26,485
Slide 22: Date Published: 07/20/2016
14 Date Published: 07/20/2016