Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2021 Earnings Presentation
28 slides from Landstar System's earnings presentation, Jan 27, 2022
Slide 1: Landstar achieves record annual performance in 2021
For Immediate Release Contacts: Jim Gattoni (CEO) Fred Pensotti (CFO) Landstar System, Inc. www.landstar.com January 26, 2022 904-398-9400 LANDSTAR SYSTEM ACHIEVES RECORD-BREAKING ANNUAL PERFORMANCE IN 2021 WITH RECORD DILUTED EARNINGS PER SHARE OF $2.99 IN THE 2021 FOURTH QUARTER Jacksonville, FL -
Slide 2: Press release continued: returns, buybacks, dividend, revenue mix
LANDSTAR SYSTEM/2 fourth quarters and year-to-date periods is provided in the Company’s accompanying financial disclosures. Trailing twelve-month return on average shareholders’ equity was 47 percent and return on invested capital, representing net income divided by the sum of average equity plus av
Slide 3: CEO commentary on Q4 record and guidance
LANDSTAR SYSTEM/3 quarter revenue, gross profit, variable contribution, net income and diluted earnings per share each set all-time quarterly records,” said Landstar President and CEO Jim Gattoni. “Our load volume hauled by truck in the 2021 fourth quarter grew 22 percent compared to the 2020 fourth
Slide 4: First quarter 2022 outlook
LANDSTAR SYSTEM/4 into the first few weeks of January. Typically, revenue in the first quarter is expected to be lower than the revenue of the immediately preceding fourth quarter. Regardless, I expect the strong trends in revenue per load and loads hauled via truck to continue as we move through th
Slide 5: About Landstar and webcast information
LANDSTAR SYSTEM/5 accomplishment, looking forward to another exciting year for the Company, its employees, and the thousands of business owners who participate in the Landstar network.” Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. T
Slide 6: Forward Looking Statements Disclaimer
LANDSTAR SYSTEM/6 Forward Looking Statements Disclaimer: The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release conta
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 25, December 26, December 25, December 26, 2021 2020 2021 2020 Revenue $ 6,537,568 $ 4,132,981 $ 1,9
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 25, December 26, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 215,522 $ 249,354 Short-term investments 35,778 41,375 Trade accounts
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 25, December 26, December 25, December 26, 2021 2020 2021 2020 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 3,525
Slide 10: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/10 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 25, December 26, December 25, December 26, 2021 2020 2021 2020 Revenue $ 6,537,568 $ 4,132,981 $ 1,945,
Slide 11: Earnings Conference Call Fourth Quarter 2021
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2021 January 26, 2022 Date Published: 01/26/2022
Slide 12: 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 13: 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 as well as (1) operating income a
Slide 14: Who We Are
Who We Are Landstar is a worldwide, 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. 4 Date Publis
Slide 15: Our Network
Our Network 2021 Results $6.5 billion in revenue Agents 2.5 million loadings Approx. 1,200 593 million dollar agents 11,864 BCO trucks (2021 year-end) 90,346 Carriers (2021 year-end) Landstar 18,000+ Trailers (2021 year-end) Employees Approx. 1,400 Capacity Customers 101,000+ 25,000+ 5 Date Publishe
Slide 16: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q20 4Q21 Truck Transportation (1) Truckload Van equipment 55% 53% Unsided/platform equipment 24% 22% Less-than-truckload 2% 2% Other truck transportation 12% 13% Rail intermodal 3% 2% Ocean and air cargo 3% 7% (1) In connection with the impac
Slide 17: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $7,000,000 $6,537,568 $2,400,000 $6,500,000 $1,945,017 $2,100,000 $6,000,000 $5,500,000 $1,800,000 $5,000,000 $1,296,355 $1,500,000 $4,500,000 $4,132,981 $1,200,000 $4,000,000 $3,500,000 $900,000 2020 2021 4Q20 4Q21 Year over Prior Year Rate ( 1) Volume
Slide 18: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 400,000 $2,800 370,000 $2,600 340,000 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 4Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q21 2Q21 3Q21 4Q21 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2
Slide 19: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q20 4Q21 Change in Revenue Consumer Durables 28.0 32.3 74% Machinery 10.8 10.3 43% Building Products 8.9 7.8 32% AA&E, Hazmat 8.0 7.6 44% Automotive 8.0 7.2 35% Substitute Line Haul 7.4 5.4 11% Metals 4.4 4.7 57% Foodstuff
Slide 20: Gross Profit and Gross Profit Margin
Gross Profit(1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year (3) Quarter $230,000 $800,000 $209,841 $721,010 $700,000 $180,000 $600,000 $141,671 $500,000 $433,427 $130,000 $400,000 10.5% 11.0% 10.9% 10.8% $300,000 $80,000 2020 2021 4Q20 4Q21 (1) Gross profit equals revenue less the cos
Slide 21: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Fiscal Year (4) Quarter $975,000 $263,335 $915,692 $270,000 $875,000 $250,000 $230,000 $775,000 $210,000 $675,000 $599,351 $182,358 $190,000 $575,000 14.5% 14.0% $170,000 14.1% 13.5% $475,000 $150,000 2020 2021 4Q20 4Q2
Slide 22: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Fiscal Year (1) Quarter (2) $550,000 $170,000 $505,668 $148,740 $475,000 $140,000 $400,000 $110,000 $325,000 $84,412 $252,950 $80,000 $250,000 58.4% 70.1% 59.6% 70.9% $175,000 $50,000 2020 2021 4Q20 4Q21 (1) Excluding the impact of the $15.5
Slide 23: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Fiscal Year (1) Quarter (2) $550,000 $505,668 $170,000 $148,740 $475,000 $140,000 $400,000 $110,000 $325,000 $84,412 $252,950 $250,000 $80,000 42.2% 55.2% 56.5% $175,000 46.3% $50,000 2020 2021 4Q20 4Q21 Fiscal Year 4th Qtr Changes
Slide 24: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Dec 26, Dec 25, (2) 2020 2021 (2) BCO Independent Contractors 10,242 11,057 Truck Brokerage Carriers: Approved and Active (1) 46,053 64,476 Other Approved 22,972 25,870 69,025 90,346 Total Available Truck Capaci
Slide 25: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Dec 26, Dec 25, 2020 2021 Balance sheet (period end amounts): Debt to Capital 13% 11% Net Cash (1) $ 189,955 $ 139,496 Cash flow: Cash flow from operations $ 210,717 $ 276,740 Capital expenditures (2) $ 33,392 $ 23,261 Share repurchases $
Slide 26: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 $300,000 42,000 $250,000 41,000 $200,000 40,000 $150,000 39,000 $100,000 38,000 $50,000 $0 37,000 2017 2018 2019 2020 2021 Free Cash Flow Share Purchases Dividends Paid Common Share Count 2021 (000's ) Fre e ca s h fl
Slide 27: Appendix A Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Fiscal Years Ended Fiscal Quarters Ended December 25, December 26, December 25, December 26, 2021 2020 2021 2020 Revenue $ 6,537,568 $ 4,132,981 $ 1,945,017 $ 1,296,355 Costs of revenue: Purchased transportation 5,
Slide 28: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 01/26/2022