Slide 1: Landstar Reports Record Quarterly Revenue and Diluted EPS
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com October 25, 2017 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF $943 MILLION AND RECORD QUARTERLY DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF $1.01 Jacksonville, FL – Landstar System, Inc
Slide 2: Press release continued: dividend and CEO commentary
LANDSTAR SYSTEM/2 plus average debt, was 22 percent. Currently, there are approximately 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program. As of September 30, 2017, the Company had $295 million in cash and short term investments
Slide 3: Press release continued: Landstar Metro and load growth
LANDSTAR SYSTEM/3 Lastly, the provision for bonuses under the Company’s incentive compensation plan was significantly higher than the amount anticipated at the time we provided our third quarter guidance as a result of earnings performance above our previously issued earnings guidance. In the aggreg
Slide 4: Press release continued: fourth quarter outlook
LANDSTAR SYSTEM/4 and September of 2016, respectively. Overall, revenue per load on loads hauled via truck was 6 percent higher in the 2017 third quarter compared to the 2016 third quarter. 2017 third quarter operating margin was 43.3 percent. Operating margin was negatively impacted by elevated ins
Slide 5: Fourth quarter guidance and webcast information
LANDSTAR SYSTEM/5 resulting from the extra week and the effect of the timing of Christmas. Assuming insurance and claims costs in the 2017 fourth quarter are approximately 3.3 percent of BCO revenue, representing average insurance and claims costs as a percent of BCO revenue over the past 5 years, I
Slide 6: Forward-looking statements and About Landstar
LANDSTAR SYSTEM/6 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 anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obl
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) Thirty Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2017 2016 2017 2016 Revenue $ 2,594,772 $ 2,274,8
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 30, December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 249,741 $ 178,897 Short-term investments 45,687 66,560 Trade account
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2017 2016 2017 2016 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 10: Earnings Conference Call Third Quarter 2017
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2017 October 25, 2017 Date Published: 10/25/2017
Slide 11: 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-looking
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: 10/25/201
Slide 13: The Network
The Network 2016 Results Agents $3.2 billion in revenue Approx. 1,200 1.8 million loadings 502 million dollar agents 9,439 BCO trucks (2016 year-end) Landstar 47,453 Carriers (2016 year-end) Employees 15,000+ Trailers (2016 year-end) Approx. 1,200 Capacity Customers 56,000+ 25,000+ 4 Date Published:
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q16 3Q17 Truck Transportation Truckload Van equipment 59% 58% Unsided/platform equipment 32% 32% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 2% 3% 5 Date Published: 10/25/2017
Slide 15: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $2,594,772 $970,000 $2,600,000 $943,430 $920,000 $2,450,000 $870,000 $2,274,805 $2,300,000 $820,000 $787,938 $2,150,000 $770,000 $2,000,000 $720,000 3Q16 YTD 3Q17 YTD 3Q16 3Q17 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior Year Qtr R
Slide 16: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 340,000 $1,900 330,000 320,000 310,000 $1,800 300,000 290,000 $1,700 280,000 270,000 $1,600 260,000 250,000 240,000 $1,500 3Q16 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 2Q17 3Q17 3Q14 4Q14
Slide 17: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q16 3Q17 Growth Consumer Durables 20.8 21.0 23% Machinery 14.6 14.3 18% Automotive 8.9 7.1 -4% Building Products 9.0 10.2 36% Metals 6.7 6.6 18% AA&E, Hazmat 7.9 8.6 30% Foodstuffs 5.5 4.7 -1% Energy 3.7 3.2 3% Other 22.9
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $400,000 $150,000 $394,156 $140,005 $385,000 $140,000 $370,000 $130,000 $354,985 $121,792 $355,000 $120,000 15.6% 15.2% 14.8% 15.5% $340,000 $110,000 3Q16 YTD 3Q17 YTD 3Q16 3Q17 3rd Qtr YTD (3) 3rd Qtr (3) Changes i
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $180,000 $65,000 $173,919 $60,567 $58,461 $170,000 $60,000 $159,486 $160,000 $55,000 $150,000 $140,000 44.9% 44.1% $50,000 48.0% 43.3% 48.4% 4 $130,000 $45,000 3Q16 YTD 3Q17 YTD 3Q16 3Q17 3rd Qtr YTD 3rd Qtr Changes in
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Sep 24, Dec 31, Sep 30, (2) 2016 2016 2017 (2) BCO Independent Contractors 8,889 8,824 8,939 Truck Brokerage Carriers: Approved and Active (1) 30,860 31,471 32,925 Other Approved 15,691 15,982 15,138 46,551 47,453 48,063 T
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Sep 24, Sep 30, 2016 2017 Balance sheet (period end amounts): Debt to Capital 21% 15% Net Cash (1) $ 91,883 $ 178,026 Cash flow: Cash flow from operations $ 171,297 $ 132,264 Capital expenditures (2) $ 17,833 $ 16,999 Share repurc
Slide 22: Free Cash Flow / Share Purchases
Free Cash Flow (1) / 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 Free Cash Flow Share Purchases Common Share Count Third quarter 2017 YTD (000's) Free cash flow (1) $ 115,265 Share purchases $ - Endi
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 10/25/2017