Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2020 Earnings Presentation
23 slides from Landstar System's earnings presentation, Jan 27, 2021
Slide 1: Landstar System Reports All-Time Quarterly Records
For Immediate Release Contact: Jim Gattoni Landstar System, Inc. www.landstar.com January 27, 2021 904-398-9400 LANDSTAR SYSTEM REPORTS ALL-TIME QUARTERLY RECORDS WITH REVENUE OF $1.296 BILLION AND DILUTED EARNINGS PER SHARE OF $1.70 IN THE 2020 FOURTH QUARTER Jacksonville, FL - Landstar System, Inc
Slide 2: Press release continued: returns, buybacks and dividends
LANDSTAR SYSTEM/2 Return on average shareholders’ equity was 28 percent and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 25 percent in fiscal year 2020. Landstar purchased approximately 1,179,000 shares of its common stock during fis
Slide 3: Press release continued: fourth quarter guidance and results
LANDSTAR SYSTEM/3 hauled via unsided/platform equipment in the 2020 fourth quarter exceeded the 2019 fourth quarter by 7 percent and 5 percent, respectively.” Gattoni continued, “In our third quarter earnings release on October 21, 2020, we provided fourth quarter revenue guidance of $1.15 billion t
Slide 4: Press release continued: 2020 performance
LANDSTAR SYSTEM/4 due to the increase in revenue, actual insurance and claims costs that came in below the 4.8 percent of BCO revenue used in our previous guidance, and a lower effective income tax rate in the fourth quarter than initially anticipated.” Gattoni further stated, “Landstar’s financial
Slide 5: First quarter 2021 outlook and conference call
LANDSTAR SYSTEM/5 to exceed the 2020 first quarter in a high single-digit percentage range. I expect revenue per load on loads hauled via truck in the 2021 first quarter to exceed the 2020 first quarter in a mid-teen percentage range. As such, I anticipate revenue for the 2021 first quarter to be in
Slide 6: Forward-looking statements and About Landstar
LANDSTAR SYSTEM/6 uncertainties detailed in Landstar’s Form 10K for the 2019 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipate
Slide 7: Consolidated statements of income
LANDSTAR SYSTEM/7 Fiscal Years Ended Fiscal Quarters Ended December 26, December 28, December 26, December 28, 2020 2019 2020 2019 Revenue $ 4,132,981 $ 4,084,577 $ 1,296,355 $ 994,879 Investment income 3,399 5,041 683 1,305 Costs and expenses: Purchased transportation 3,192,850 3,127,474 1,009,707
Slide 8: Consolidated balance sheets
LANDSTAR SYSTEM/8 December 26, December 28, 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 249,354 $ 319,515 Short-term investments 41,375 32,901 Trade accounts receivable, less allowance of $8,670 and $7,284 764,169 588,549 Other receivables, including advances to independent contract
Slide 9: Revenue and loads by transportation mode
LANDSTAR SYSTEM/9 Fiscal Years Ended Fiscal Quarters Ended December 26, December 28, December 26, December 28, 2020 2019 2020 2019 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,515,940 $ 2,371,188 $ 821,024 $ 571,767 Unsided/platform equipment 1,202,295
Slide 10: Earnings Conference Call Fourth Quarter 2020
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2020 January 27, 2021 Date Published: 01/27/2021
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: 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: 01/27/202
Slide 13: The Network
The Network 2020 Results Agents $4.1 billion in revenue Approx. 1,200 2.0 million loadings 508 million dollar agents 10,991 BCO trucks (2020 year-end) Landstar 69,025 Carriers (2020 year-end) Employees 17,000+ Trailers (2020 year-end) Approx. 1,300 Capacity Customers 79,000+ 25,000+ 4 Date Published
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q19 4Q20 Truck Transportation Truckload Van equipment 57% 63% Unsided/platform equipment 32% 27% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 3% 5 Date Published: 01/27/2021
Slide 15: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $4,500,000 $1,400,000 $1,296,355 $4,300,000 $1,300,000 $4,084,577 $4,132,981 $4,100,000 $1,200,000 $3,900,000 $1,100,000 $994,879 $3,700,000 $1,000,000 $3,500,000 $900,000 2019 2020 4Q19 4Q20 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Pr
Slide 16: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 380,000 $2,300 360,000 $2,100 340,000 320,000 $1,900 300,000 $1,700 280,000 260,000 $1,500 4Q19 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q20 2Q20 3Q20 4Q20 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q
Slide 17: Industries Served
Industries Served As a Percentage of Transportation Quarter over Prior Revenue Year Quarter Growth 4Q19 4Q20 Consumer Durables 24.6 28.0 48% Machinery 14.1 10.8 0% Building Products 9.0 8.9 29% AA&E, Hazmat 8.2 8.0 27% Automotive 7.7 8.0 36% Foodstuffs 4.5 4.3 25% Metals 5.7 4.4 3% Substitute Line H
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year (4) Quarter $640,000 $190,000 $182,358 $614,877 $180,000 $610,000 $170,000 $599,351 $160,000 $148,687 $580,000 15.1% 14.5% $150,000 14.1% $140,000 14.9% $550,000 $130,000 2019 2020 4Q19 4Q20 Fiscal Year (3) 4th Qtr (3) Chang
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Fiscal Year Quarter $90,000 $84,412 $305,000 $298,904 $80,000 $290,000 $275,000 $66,519 $70,000 $252,950 $260,000 $60,000 $245,000 48.6 % 42.2% 44.7% 46.3% $230,000 $50,000 2019 2020 (2) 4Q19 4Q20 (3) Fi s ca l Yea r 4th Qtr Changes in ope
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Dec 28, Dec 26, 2019 (2) 2020 (2) BCO Independent Contractors 9,554 10,242 Truck Brokerage Carriers: Approved and Active (1) 39,497 46,053 Other Approved 16,820 22,972 56,317 69,025 Total Available Truck Capacity Providers
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Dec 28, Dec 26, 2019 2020 Balance sheet (period end amounts): Debt to Capital 14% 13% Net Cash (1) $ 239,572 $ 189,955 Cash flow: Cash flow from operations $ 307,840 $ 210,717 Capital expenditures (2) $ 19,416 $ 33,392 Share repur
Slide 22: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 42,500 42,000 $300,000 41,500 $250,000 41,000 $200,000 40,500 40,000 $150,000 39,500 $100,000 39,000 $50,000 38,500 $0 38,000 2016 2017 2018 2019 2020 Free Cash Flow Share Purchases Dividends Paid Common Share Count 2020 (000
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 01/27/2021