Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2019 Earnings Presentation
22 slides from Landstar System's earnings presentation, Jan 29, 2020
Slide 1: Landstar System reports fourth quarter revenue of $994.9 million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com January 29, 2020 904-398-9400 LANDSTAR SYSTEM REPORTS FOURTH QUARTER REVENUE OF $994.9 MILLION AND DILUTED EARNINGS PER SHARE OF $1.27 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings p
Slide 2: Trailing twelve-month return on average shareholders’ equity was 31 percent and 3,000,000 shares of
LANDSTAR SYSTEM/2 Trailing twelve-month return on average shareholders’ equity was 31 percent and trailing twelve-month return on invested capital, representing net income divided by the sum of average equity plus average debt, was 27 percent. Landstar purchased approximately 849,000 shares of its c
Slide 3: costs to 5.7 percent of BCO revenue in the quarter.” Gattoni further commented, “Landstar’s
LANDSTAR SYSTEM/3 unfavorable development of prior year claims that drove actual insurance and claims costs to 5.7 percent of BCO revenue in the quarter.” Gattoni further commented, “Landstar’s financial performance in 2018 was by far the best in the Company’s history, making for very difficult comp
Slide 4: financial results of the Company’s 2020 first quarter. It is highly likely that, once
LANDSTAR SYSTEM/4 as known to us indicate that it is probable this accident will adversely impact the financial results of the Company’s 2020 first quarter. It is highly likely that, once all facts are determined, the estimated ultimate cost of this tragic accident will reduce first quarter diluted
Slide 5: Forward-looking statements
LANDSTAR SYSTEM/5 insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; U.S. foreign trade relationships; substantial industry competition; disruptions or failures in the Company’s computer
Slide 6: Consolidated statements of income
LANDSTAR SYSTEM/6 Fiscal Years Ended Fiscal Quarters Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Revenue $ 4,084,577 $ 4,615,144 $ 994,879 $ 1,182,351 Investment income 5,041 3,816 1,305 1,062 Costs and expenses: Purchased transportation 3,127,474 3,569,961 761,828
Slide 7: Consolidated balance sheets
LANDSTAR SYSTEM/7 December 28, December 29, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 319,515 $ 199,736 Short-term investments 32,901 40,058 Trade accounts receivable, less allowance of $7,284 and $6,413 588,549 691,604 Other receivables, including advances to independent contract
Slide 8: Revenue and loads by mode
LANDSTAR SYSTEM/8 Fiscal Years Ended Fiscal Quarters Ended December 28, December 29, December 28, December 29, 2019 2018 2019 2018 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,371,188 $ 2,791,494 $ 571,767 $ 704,971 Unsided/platform equipment 1,295,817
Slide 9: Earnings Conference Call Fourth Quarter 2019
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2019 January 29, 2020 Date Published: 01/29/2020
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-looking
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: 01/29/202
Slide 12: The Network
The Network 2019 Results Agents $4.1 billion in revenue Approx. 1,200 2.1 million loadings 555 million dollar agents 10,243 BCO trucks (2019 year-end) Landstar 56,317 Carriers (2019 year-end) Employees 17,000+ Trailers (2019 year-end) Approx. 1,200 Capacity Customers 65,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q18 4Q19 Truck Transportation Truckload Van equipment 60% 57% Unsided/platform equipment 29% 32% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 4% 3% 5 Date Published: 01/29/2020
Slide 14: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $4,900,000 $1,300,000 $4,800,000 $4,615,144 $4,700,000 $1,182,351 $1,220,000 $4,600,000 $4,500,000 $1,140,000 $4,400,000 $4,300,000 $4,084,577 $1,060,000 $4,200,000 $994,879 $4,100,000 $980,000 $4,000,000 $3,900,000 $900,000 2018 2019 4Q18 4Q19 Year ove
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads (1) Revenue per Load 380,000 $2,100 360,000 $2,000 340,000 $1,900 320,000 $1,800 300,000 280,000 $1,700 260,000 $1,600 240,000 $1,500 2Q18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 3Q18 4Q16 1Q17 2
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q18 4Q19 Change in Revenue Consumer Durables 24.2 24.6 -15% Machinery 13.6 14.1 -13% Automotive 9.1 7.7 -29% Building Products 8.3 9.0 -9% Metals 5.8 5.7 -17% AA&E, Hazmat 7.1 8.2 -3% Foodstuffs 4.1 4.5 -7% Energy 2.8 3.7
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year Quarter $680,000 $190,000 $667,181 $180,000 $660,000 $168,926 $170,000 $640,000 $160,000 14.5% $614,877 14.3% $620,000 $148,687 $150,000 15.1% 14.9% $600,000 $140,000 2018 2019 4Q18 4Q19 Fiscal Year (3) 4th Qtr (3) Changes i
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Fiscal Year Quarter $355,000 $86,088 $88,000 $340,000 $331,735 $325,000 $78,000 $310,000 51.0% 49.7% $298,904 $66,519 $68,000 $295,000 48.6% 48.4% 44.7% 4 $280,000 $58,000 2018 2019 4Q18 4Q19 Fiscal Year 4th Qtr Changes in operating margin
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Dec 29, Dec 28, 2018 (2) 2019 (2) BCO Independent Contractors 9,884 9,554 Truck Brokerage Carriers: Approved and Active (1) 41,069 39,497 Other Approved 17,985 16,820 59,054 56,317 Total Available Truck Capacity Providers
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Dec 29, Dec 28, 2018 2019 Balance sheet (period end amounts): Debt to Capital 16% 14% Net Cash (1) $ 111,369 $ 239,572 Cash flow: Cash flow from operations $ 297,901 $ 307,840 Capital expenditures $ 9,747 $ 19,416 Share repurchase
Slide 21: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 42,500 $300,000 42,000 $250,000 41,500 $200,000 41,000 40,500 $150,000 40,000 $100,000 39,500 $50,000 39,000 $0 38,500 2015 2016 2017 2018 2019 Free Cash Flow Share Purchases Dividends Paid Common Share Count 2019 (000
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 01/29/2020