Slide 1: Landstar Reports Record Quarterly Revenue of $893 Million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com February 1, 2017 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF $893 MILLION AND RECORD QUARTERLY DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF $0.94 Jacksonville, FL – Landstar System, Inc
Slide 2: Press release page 2: truck revenue, returns, dividend
LANDSTAR SYSTEM/2 Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2016 fourth quarter was $832.2 million, or 93 percent of revenue, compared to $786.4 million, or 93 percent of revenue, in the 2015 fourth quarter. Truckload tra
Slide 3: Press release page 3: CEO comments on loads and revenue
LANDSTAR SYSTEM/3 quarterly revenue in Landstar history. Moreover, gross profit of $132.8 million in the 2016 fourth quarter was the highest quarterly Landstar gross profit in any quarter over the last ten years.” Gattoni continued, “The number of loads hauled via truck in the 2016 fourth quarter in
Slide 4: Press release page 4: 2017 cost assumptions
LANDSTAR SYSTEM/4 load volume growth and our ability to continue to attract productive agents and capacity to the network.” Gattoni continued, “The impact of potential changes in 2017 to U.S. trade, tax and other economic policies on the domestic and global economies contribute to a highly unpredict
Slide 5: Press release page 5: first quarter 2017 outlook
LANDSTAR SYSTEM/5 volume growth rates experienced during the 2016 fourth quarter. I expect the number of loads hauled via truck in the 2017 first quarter to increase in a mid to high-single digit range over the 2016 first quarter. As it pertains to revenue per load on loads hauled via truck, rates a
Slide 6: Forward-looking statements and risk factors
LANDSTAR SYSTEM/6 including but not limited to: an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capa
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) Fiscal Years Ended Fiscal Quarters Ended December 31, December 26, December 31, December 26, 2016 2015 2016 2015 Revenue $ 3,167,634 $ 3,321,091 $ 892
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) December 31, December 26, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 178,897 $ 114,520 Short-term investments 66,560 48,823 Trade accounts
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 31, December 26, December 31, December 26, 2016 2015 2016 2015 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,900
Slide 10: Landstar System, Inc. Earnings Conference Call Fourth Quarter 2016
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2016 February 1, 2017 Date Published: 02/01/2017
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: 02/01/201
Slide 13: The Network
The Network 2016 Results Agents $3.2 billion in revenue Approx. 1,200 1.8 million loadings 502 million dollar agents 9,439 BCO trucks (2016 year-end) Landstar 47,453 Carriers (2016 year-end) Employees 15,000+ Trailers (2016 year-end) Approx. 1,200 Capacity Customers 56,000+ 25,000+ 4 Date Published:
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q15 4Q16 Truck Transportation Truckload Van equipment 57% 61% Unsided/platform equipment 34% 29% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% 5 Date Published: 02/01/2017
Slide 15: Revenue
Revenue ($’s in thousands) Fiscal Year (1) Quarter (1) $3,500,000 $950,000 $3,321,091 $3,300,000 $892,829 $3,167,634 $848,602 $875,000 $3,100,000 $800,000 $2,900,000 $2,700,000 $725,000 $2,500,000 $650,000 2015 2016 4Q15 4Q16 Year over Prior Year Rate ( 2) Volume ( 3) Change Qtr over Prior Year Qtr
Slide 16: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads (1) 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 $1,500 2Q15 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 4Q13 1
Slide 17: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q15 4Q16 Growth Consumer Durables 18.7 21.6 22% Machinery 13.7 14.2 9% Automotive 13.2 9.1 -27% Building Products 8.0 8.1 7% Metals 6.2 6.1 2% AA&E, Hazmat 6.7 7.2 14% Foodstuffs 5.0 5.5 15% Energy 3.9 3.1 -15% Other 24.6
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year (3) Quarter (3) $550,000 $140,000 $525,000 $499,488 $132,781 $487,766 $500,000 $130,000 $475,000 $126,425 $450,000 $425,000 $120,000 $400,000 15.0% 15.4% 14.9% $375,000 14.9% $350,000 $110,000 2015 2016 4Q15 4Q16 Fiscal Year
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Fiscal Year (2) Quarter (2) $275,000 $75,000 $255,000 $68,000 $241,706 $62,648 $63,765 $235,000 $61,000 $223,251 $215,000 $54,000 $195,000 48.4% 45.8% 49.6% 48.0% $47,000 48.4% 4 $175,000 $40,000 2015 2016 4Q15 4Q16 Fiscal Year 4th Qtr Cha
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Dec 26, Dec 31, (2) 2015 2016 (2) BCO Independent Contractors 8,907 8,824 Truck Brokerage Carriers: Approved and Active (1) 29,728 31,471 Other Approved 14,715 15,982 44,443 47,453 Total Available Truck Capacity Providers
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Dec 26, Dec 31, 2015 2016 Balance sheet (period end amounts): Debt to Capital 21% 20% Net Cash (1) $ 39,051 $ 107,153 Cash flow: Cash flow from operations $ 216,022 $ 190,242 Capital expenditures $ 4,804 $ 22,645 Share repurchases
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 (1) Free cash flow is defined as cash flow from operations less capital expenditures
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 02/01/2017