Slide 1: Landstar System reports fourth quarter revenue of $1.204B and EPS of $1.62
For Immediate Release Contact: Jim Todd (CFO) Landstar System, Inc. www.landstar.com January 31, 2024 904-398-9400 LANDSTAR SYSTEM REPORTS FOURTH QUARTER REVENUE OF $1.204B AND EARNINGS PER SHARE OF $1.62 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) reported
Slide 2: Press release continued: dividend and truck revenue
LANDSTAR SYSTEM/2 3,000,000 shares of the Company’s common stock under its previously announced share purchase programs. Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.33 per share payable on March 8, 2024, to stockholders of record as of the close of bu
Slide 3: CEO commentary and first quarter 2024 outlook
LANDSTAR SYSTEM/3 Gattoni continued, “Landstar’s financial performance in 2023, coming off back-to-back record setting years in 2022 and 2021 was admirable, considering the very difficult freight transportation backdrop. The Company’s performance during the downcycle in freight markets experienced i
Slide 4: About Landstar and Non-GAAP Financial Measures
LANDSTAR SYSTEM/4 About Landstar: Landstar System, Inc., a Fortune 500 company, is a 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- par
Slide 5: Forward-looking statements risk factors
LANDSTAR SYSTEM/5 statements are by nature subject to uncertainties and risks, including but not limited to: the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2023 fiscal year
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 30, December 31, December 30, December 31, 2023 2022 2023 2022 Revenue $ 5,303,322 $ 7,436,562 $ 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 30, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 481,043 $ 339,581 Short-term investments 59,661 53,955 Trade accounts
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 30, December 31, December 30, December 31, 2023 2022 2023 2022 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,742
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 30, December 31, December 30, December 31, 2023 2022 2023 2022 Revenue $ 5,303,322 $ 7,436,562 $ 1,204,4
Slide 10: Earnings Conference Call Fourth Quarter 2023
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2023 January 31, 2024 Date Published: 01/31/2024
Slide 11: 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 12: 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 13: Who We Are
Who We Are Landstar, a Fortune 500 company, is a 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 employees.
Slide 14: Our Network
Our Network 2023 Results $5.30 billion in revenue Agents 2.20 million loadings Approx. 1,100 524 million dollar agents 9,809 BCO trucks (2023 year-end) 76,635 Carriers (2023 year-end) Landstar 18,000+ Trailers (2023 year-end) Employees Approx. 1,500 Capacity Customers 85,000+ 25,000+ 5 Date Publishe
Slide 15: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q22 4Q23 Truck Transportation Truckload Van equipment 52% 51% Unsided/platform equipment 25% 28% Less-than-truckload 2% 2% Other truck transportation 12% 8% Rail intermodal 2% 2% Ocean and air cargo 5% 5% 6 Date Published: 01/31/2024
Slide 16: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $8,000,000 $1,800,000 $7,436,562 $1,674,767 $7,000,000 $1,600,000 $6,000,000 $5,303,322 $1,400,000 $5,000,000 $1,204,445 $1,200,000 $4,000,000 $3,000,000 $1,000,000 2022 2023 4Q22 4Q23 ( 2) ( 3) ( 2) ( 3) Year over Prior Year Rate Volume Change Qtr over
Slide 17: 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 $2,600 310,000 $2,400 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 4Q19 1Q21 1Q20 2Q20 3Q20 4Q20 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q20
Slide 18: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q22 4Q23 Change in Revenue Consumer Durables 28.9 27.8 -31% Machinery 12.5 13.7 -21% Automotive 10.9 11.6 -23% Building Products 7.7 8.1 -25% AA&E, Hazmat 7.8 7.6 -30% Metals 4.6 4.9 -24% Foodstuffs 3.3 2.7 -40% Substitute
Slide 19: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year Quarter $870,000 $190,000 $788,396 $180,028 $740,000 $170,000 $610,000 $150,000 $545,327 $480,000 $124,594 $130,000 10.6% 10.3% 10.7% 10.3% $350,000 $110,000 2022 2023 4Q22 4Q23 (1) Gross profit equals revenue less the cost
Slide 20: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Fiscal Year Quarter $1,100,000 $250,000 $233,985 $1,017,680 $1,020,000 $220,000 $940,000 $190,000 $178,146 $860,000 $772,392 $160,000 $780,000 13.7% 14.6% 14.0% 14.8% $700,000 $130,000 2022 2023 4Q22 4Q23 Fiscal Year (4
Slide 21: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Fiscal Year Quarter $620,000 $140,000 $571,083 $124,334 $530,000 $120,000 $440,000 $344,149 $100,000 $350,000 $80,000 $74,567 $260,000 72.4% 63.1% 69.1% 59.8% $170,000 $60,000 2022 2023 4Q22 4Q23 (1) The Company’s fiscal year ends each year
Slide 22: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Fiscal Year Quarter $620,000 $140,000 $571,083 $124,334 $530,000 $120,000 $440,000 $344,149 $100,000 $350,000 $74,567 $80,000 $260,000 56.1% 44.6% 53.1% 41.9% $170,000 $60,000 2022 2023 4Q22 4Q23 Fiscal Year 4th Qtr Changes in opera
Slide 23: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Dec 31, Dec 30, 2022 (2) 2023 (2) BCO Independent Contractors 10,393 9,024 Truck Brokerage Carriers: Approved and Active (1) 66,745 49,111 Other Approved 30,999 27,524 97,744 76,635 Total Available Truck Capacit
Slide 24: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Dec 31, Dec 30, 2022 2023 Balance sheet (period end amounts): Debt to Capital 10% 7% Net Cash (1) $ 290,136 $ 469,564 Cash flow: Cash flow from operations $ 622,659 $ 393,648 Capital expenditures $ 26,005 $ 25,688 Share repurchases $ 285,
Slide 25: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $700,000 40,000 39,500 $600,000 39,000 $500,000 38,500 38,000 $400,000 37,500 $300,000 37,000 36,500 $200,000 36,000 $100,000 35,500 $0 35,000 2019 2020 2021 2022 2023 Free Cash Flow Share Purchases Dividends Paid Common Share Count 2
Slide 26: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Fiscal Years Ended Fiscal Quarters Ended December 30, December 31, December 30, December 31, 2023 2022 2023 2022 Revenue $ 5,303,322 $ 7,436,562 $ 1,204,445 $ 1,674,767 Costs of revenue: Purchased transportation 4,
Slide 27: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 01/31/2024