Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q3 2024 Earnings Presentation
25 slides from Landstar System's earnings presentation, Oct 29, 2024
Slide 1: Landstar System, Inc. 3Q 2024 Earnings Conference Call
Exhibit 99.2 Landstar System, Inc. 3Q 2024 Earnings Conference Call Date
Slide 2: 3Q 2024 Forward-Looking Statements Disclaimer
3Q 2024 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
Slide 3: 3Q 2024 Non-GAAP Financial Measures
3Q 2024 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. Management believes varia
Slide 4: 3Q 2024 Executive Summary
3Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 5: CEO Perspective
CEO Perspective Slide header R E S U L T S H I G H L I G H T S Dollars in Millions (except per share amounts) 3Q revenue performance • 3Q 2024 sequential increase in truck revenue per load above typical Metric 3Q 2024 3Q 2023 Chg. seasonality • First year over year increase in truck revenue per load
Slide 6: Landstar Network and 3Q Operating Results
Landstar Network and 3Q Operating Results L A N D S T A R N E T W O R K 3Q R E S U L T S Agents Customers Capacity Employees $1.09B Truck Revenue ~1,100 25,000+ 78,000+ ~1,500 486K Truck Loadings $2,246 Truck Revenue per Load 524 Million $ Agents* 9,027 BCO Trucks 70,542 Carriers 17,700+ Trailers DO
Slide 7: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period A V A I L A B L E T R U C K C A P A C I T Y P R O V I D E R S Type of Capacity Sep 28, 2024 Dec 30, 2023 Sep 30, 2023 BCO Independent Contractors 8,266 9,024 9,455 Truck Brokerage Carriers (1) Approved and Active 44,82
Slide 8: 3Q 2024 Financial Results
3Q 2024 Financial Results Jim Todd Chief Financial Officer 8
Slide 9: Revenue
Revenue Slide header Dollars in Millions R E S U L T S V A R I A N C E (1) (2) Revenue Source Rate Vol. Chg. Truck 0.7% (7.7%) (7.0%) $1,289.3 $1,213.9 Rail Intermodal (12.7%) 4.1% (9.0%) Ocean/Air 12.7% 2.9%) 16.0% Insurance Premiums N/A N/A (13.5%) Total Revenue—— (5.9%) 3Q 2024 3Q 2023 (1) Percen
Slide 10: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue down 6% Y-O-Y Revenue Share Y-O-Y Change 3Q 2024 3Q 2023 Market Segment in Revenue 28.4 27.7 Consumer Durables (3) 13.8 14.1 Machinery (7) 9.8 8.3 Building Products 11 9.5 11.5 Autom
Slide 11: Gross Profit and Variable Contribution with Associated Margins
(1) (2) Gross Profit and Variable Contribution with Associated Margins Dollars in Millions R E S U L T S C H A N G E I N V C M A R G I N Gross Variable Amounts in % 3Q Profit Contribution 2023 14.5 $187.4 $171.4 (3) Revenue – Fixed 0.1 $128.1 $112.7 Revenue – Variable (0.2) Change in Mix/Other (0.3)
Slide 12: Operating Income as a Percentage of Gross Profit and Variable Contribution
Operating Income Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions R E S U L T S C H A N G E I N P E R C E N T A G E of Variable Contribution Operating Percentage of Amounts in % 3Q Income Gross Profit Variable Contribution 2023 42.9) 62.7% $80.3 56.0% Other
Slide 13: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics Dollars in Millions (1) N E T C A S H S O U R C E S / U S E S O F C A S H (2) Year-to-date as of date indicated with Debt to Capital as of date indicated Cash Flow Type Sep 28, 2024 Sep 30, 2023 Cash flow from operations $ 225.4 $ 303.8 $458.8 Cash capital
Slide 14: 3Q 2024 4Q Guidance & Closing Remarks
3Q 2024 4Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 15: 4Q Guidance
4Q Guidance Slide header Ü Consolidated Revenue of $1.150 - $1.250 billion – Truck Loads 4% below to 1% above prior year – Truck Revenue per Load 0% to 4% above prior year Ü Earnings per Share of $1.25 — $1.45 – Insurance Expense to approximate 6.0% of BCO revenue – Effective Income Tax Rate of 24.5
Slide 16: 3Q 2024 Appendix
3Q 2024 Appendix 16
Slide 17: Revenue Breakdown by Service Type
Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 3Q 2 0 2 4 by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% T R U C K T R A N S P O R T A T I O N T R U C K L O A D Van — 50%, Unsided/Platform — 30% LTL — 2% OTHER TRUCK — 8% RAIL INTERMODAL — 2% OCEAN / AIR CARGO —
Slide 18: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends V A N U N S I D E D / P L A T F O R M NUMBER OF LOADS NUMBER OF LOADS 400,000 150,000 300,000 100,000 200,000 50,000 100,000 0 0 REVENUE PER LOAD REVENUE PER LOAD $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $
Slide 19: Revenue – Year-to-Date
Revenue – Year-to-Date Slide header Dollars in Millions R E S U L T S V A R I A N C E (1) (2) Revenue Source Rate Vol. Chg. $4,098.9 Truck (3.2%) (9.9%) (12.8%) $3,609.9 Rail Intermodal (7.7%) (3.3%) (10.8%) Ocean/Air (3.1%) 2.9%) (0.3%) Insurance Premiums N/A N/A (12.9%) Total Revenue—— (11.9%) 3Q
Slide 20: Gross Profit and Variable Contribution – Year-to-Date
Gross Profit and Variable Contribution – Year-to-Date with Associated Margins Dollars in Millions R E S U L T S C H A N G E I N V C M A R G I N Gross Variable Amounts in % 3Q YTD Profit Contribution 2023 14.5 $594.2 $420.7 $346.6 $514.7 (1) Revenue – Fixed 0.1 Revenue – Variable (0.4) Change in Mix/
Slide 21: Operating Income – Year-to-Date
Operating Income – Year-to-Date Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions R E S U L T S C H A N G E I N P E R C E N T A G E of Variable Contribution Operating Percentage of Amounts in % 3Q YTD Income Gross Profit Variable Contribution 2023 45.4) 64.1%
Slide 22: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 28, Sep 30, Sep 28, Sep 30, 2024 2023 2024 2023 Revenue $ 3,609,915 $ 4,098,877 $ 1,213,867 $ 1,289,345 Costs of revenue: Purchased transportation 2,799,384 3,141,234 943,805
Slide 23: Free Cash Flow with Stock Purchases and Dividends
Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5 – Y E A R S U M M A R Y Cash Flow Item 2019 2020 2021 2022 2023 Cash flow from operations $ 308 $ 211 $ 277 $ 623 $ 394 (1) Cash capital expenditures $ 20 $ 34 $ 24 $ 26 $ 26 Free cash flow $ 288 $ 177 $ 253 $ 597 $ 3
Slide 24: DOT Accident Frequency per Million Miles Traveled by BCOs
(1) DOT Accident Frequency per Million Miles Traveled by BCOs 5 – Y E A R S U M M A R Y 0.70 0.65 0.65 0.62 0.60 0.60 0.57 0.57 0.55 0.50 2019 2020 2021 2022 2023 (1) A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a
Slide 25: Landstar System, Inc. 3Q 2024 Earnings Conference Call
Landstar System, Inc. 3Q 2024 Earnings Conference Call Date