Slide 1: Landstar System Reports Record Quarterly Revenue of $1.052 Billion
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com January 31, 2018 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF $1.052 BILLION, RECORD QUARTERLY DILUTED EARNINGS PER SHARE AND AN INCREASED QUARTERLY DIVIDEND Jacksonville, FL – Landstar System, Inc.
Slide 2: shares of the Company’s common stock available for purchase under Landstar’s This represents a
LANDSTAR SYSTEM/2 92 percent of revenue, compared to $832.2 million, or 93 percent of revenue, in the 2016 fourth quarter. Truckload transportation revenue hauled via van equipment in the 2017 fourth quarter was $634.4 million compared to $548.4 million in the 2016 fourth quarter. Truckload transpor
Slide 3: 14% and 15%, respectively, over the 2016 fourth quarter.” Gattoni continued, “The number of
LANDSTAR SYSTEM/3 grew 18%, 13%, 10%, 64% and 64%, respectively, over the 2016 fourth quarter despite the 2016 fourth quarter having one additional week of operations. Excluding the impact of the revaluation of the deferred tax liabilities as a result of the enactment of the Tax Cuts and Jobs Act in
Slide 4: and Jobs Act in December 2017, the Company’s fiscal year 2017 diluted earnings per
LANDSTAR SYSTEM/4 in 2017 was provided on the strength of approximately 1,903,000 loads hauled via truck capacity, the highest number of loads hauled via truck in any year in Landstar history. Operating income in 2017 was an annual record of $244 million and represented year- over-year growth of 9 p
Slide 5: Webcast information and safe harbor statement
LANDSTAR SYSTEM/5 Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 am ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Fourth Quarter 2017 Earning
Slide 6: About Landstar
LANDSTAR SYSTEM/6 About Landstar: Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services to a broad range of customers utilizing a network of agents, third-party capacity providers an
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 30, December 31, December 30, December 31, 2017 2016 2017 2016 Revenue $ 3,646,364 $ 3,167,634 $ 1,0
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 30, December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 242,416 $ 178,897 Short-term investments 48,928 66,560 Trade accounts
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 30, December 31, December 30, December 31, 2017 2016 2017 2016 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 2,163
Slide 10: Earnings Conference Call Fourth Quarter 2017
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2017 January 31, 2018 Date Published: 01/31/2018
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: 01/31/201
Slide 13: The Network
The Network 2017 Results Agents $3.6 billion in revenue Approx. 1,200 2.0 million loadings 542 million dollar agents 9,696 BCO trucks (2017 year-end) Landstar 49,934 Carriers (2017 year-end) Employees 15,000+ Trailers (2017 year-end) Approx. 1,300 Capacity Customers 59,000+ 25,000+ 4 Date Published:
Slide 14: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q16 4Q17 Truck Transportation Truckload Van equipment 61% 60% Unsided/platform equipment 29% 29% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 2% 4% 5 Date Published: 01/31/2018
Slide 15: Revenue
Revenue ($’s in thousands) Fiscal Year (1) Quarter (1) $3,750,000 $3,646,364 $1,100,000 $3,600,000 $1,051,592 $1,050,000 $3,450,000 $1,000,000 $3,300,000 $3,167,634 $950,000 $3,150,000 $892,829 $900,000 $3,000,000 $850,000 $2,850,000 $800,000 2016 2017 4Q16 4Q17 Year over Prior Year Rate ( 2) Volume
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 350,000 340,000 $1,900 330,000 320,000 $1,800 310,000 300,000 290,000 $1,700 280,000 270,000 260,000 $1,600 250,000 240,000 $1,500 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q1
Slide 17: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q16 4Q17 Growth Consumer Durables 21.6 23.2 27% Machinery 14.2 13.4 12% Automotive 9.1 7.3 -5% Building Products 8.1 9.1 32% Metals 6.1 6.2 20% AA&E, Hazmat 7.2 7.5 22% Foodstuffs 5.5 5.4 17% Energy 3.1 2.8 6% Other 25.1 2
Slide 18: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year (3) Quarter (3) $555,000 $160,000 $543,845 $540,000 $149,689 $150,000 $525,000 $510,000 $487,766 $140,000 $495,000 $132,781 $480,000 15.4% 14.9% $130,000 14.2% $465,000 14.9% $450,000 $120,000 2016 2017 4Q16 4Q17 Fiscal Year
Slide 19: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Fiscal Year (2) Quarter (2) $250,000 $75,000 $243,968 $70,049 $240,000 $70,000 $230,000 $63,765 $223,251 $65,000 $220,000 $210,000 45.8% 44.9% $60,000 48.0 % 46.8% 48.4% 4 $200,000 $55,000 2016 2017 4Q16 4Q17 Fiscal Year 4th Qtr Changes in
Slide 20: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Dec 31, Dec 30, (2) (2) 2016 2017 BCO Independent Contractors 8,824 9,087 Truck Brokerage Carriers: (1) Approved and Active 31,471 34,243 Other Approved 15,982 15,691 47,453 49,934 Total Available Truck Capacity Providers
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Dec 31, Dec 30, 2016 2017 Balance sheet (period end amounts): Debt to Capital 20% 16% Net Cash (1) $ 107,153 $ 166,231 Cash flow: Cash flow from operations $ 190,242 $ 138,963 Capital expenditures (2) $ 22,645 $ 24,046 Share repur
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 2013 2014 2015 2016 2017 Free Cash Flow Share Purchases Common Share Count Fourth quarter 2017 YTD (000's) Free cash flow (1) $ 114,917 Share purchases $ - End
Slide 23: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 01/31/2018