Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q2 2017 Earnings Presentation
21 slides from Landstar System's earnings presentation, Jul 26, 2017
Slide 1: Landstar System Reports Diluted EPS of $0.89 on Record Second Quarter Revenue
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com July 26, 2017 904-398-9400 LANDSTAR SYSTEM REPORTS DILUTED EARNINGS PER SHARE OF $0.89 ON RECORD SECOND QUARTER REVENUE OF $870 MILLION Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings
Slide 2: 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share
LANDSTAR SYSTEM/2 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program. As of July 1, 2017, the Company had $273 million in cash and short term investments and $214 million available for borrowings under the Company’s senior credit
Slide 3: historical second quarter operating margin.” Gattoni continued, “Historically, revenue in the Company’s third fiscal
LANDSTAR SYSTEM/3 As a result, revenue per load on loads hauled via truck was 3 percent higher in the 2017 second quarter compared to the 2016 second quarter. The percentage change in year- over-year revenue per load on loads hauled via truck was consistent each month during the quarter. 2017 second
Slide 4: Forward-looking statements
LANDSTAR SYSTEM/4 “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increa
Slide 5: Consolidated Statements of Income
LANDSTAR SYSTEM/5 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2017 2016 2017 2016 Revenue $ 1,651,342 $ 1,486,867 $ 870,434 $ 775,223
Slide 6: Consolidated Balance Sheets
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) July 1, December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 222,102 $ 178,897 Short-term investments 51,167 66,560 Trade accounts rece
Slide 7: Supplemental Information
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2017 2016 2017 2016 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 978,918 $ 886,195 $
Slide 8: Earnings Conference Call Second Quarter 2017
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2017 July 26, 2017 Date Published: 07/26/2017
Slide 9: 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 10: 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: 07/26/201
Slide 11: The Network
The Network 2016 Results Agents $3.2 billion in revenue Approx. 1,200 1.8 million loadings 502 million dollar agents 9,439 BCO trucks (2016 year-end) Landstar 47,453 Carriers (2016 year-end) Employees 15,000+ Trailers (2016 year-end) Approx. 1,200 Capacity Customers 56,000+ 25,000+ 4 Date Published:
Slide 12: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q16 2Q17 Truck Transportation Truckload Van equipment 59% 58% Unsided/platform equipment 31% 33% Less-than-truckload 2% 3% Rail intermodal 3% 2% Ocean and air cargo 2% 2% 5 Date Published: 07/26/2017
Slide 13: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $1,700,000 $1,651,342 $900,000 $870,434 $1,600,000 $850,000 $1,486,867 $1,500,000 $800,000 $775,223 $1,400,000 $750,000 $1,300,000 $700,000 2Q16 YTD 2Q17 YTD 2Q16 2Q17 Year over Prior Year Rate ( 1) Volume ( 2) Change Qtr over Prior Year Qtr Rate ( 1)
Slide 14: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads 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 $1,500 2Q16 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 3Q16 4Q16 1Q17 2Q17 2Q14 3Q14
Slide 15: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q16 2Q17 Growth Consumer Durables 20.4 21.1 16% Machinery 14.6 15.2 18% Automotive 9.1 8.2 1% Building Products 9.6 9.7 13% Metals 7.0 6.7 9% AA&E, Hazmat 8.0 9.0 26% Foodstuffs 5.1 4.7 3% Energy 3.0 3.7 36% Other 23.2 21.
Slide 16: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $140,000 $260,000 $132,564 $254,151 $130,000 $245,000 $233,193 $120,969 $120,000 $230,000 15.7% 15.4% 15.2% 15.6% $215,000 $110,000 2Q16 YTD 2Q17 YTD 2Q16 2Q17 2nd Qtr YTD (3) 2nd Qtr (3) Changes in gross profit mar
Slide 17: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $120,000 $65,000 $113,352 $61,018 $110,000 $60,000 $101,025 $53,093 $100,000 $55,000 $90,000 $50,000 43.9% 46.0% 43.3% 44.6% 48.4% 4 $80,000 $45,000 2Q16 YTD 2Q17 YTD 2Q16 2Q17 2nd Qtr YTD 2nd Qtr Changes in operating
Slide 18: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Jun 25, Dec 31, Jul 1, 2016 (2) 2016 2017 (2) BCO Independent Contractors 8,856 8,824 8,818 Truck Brokerage Carriers: Approved and Active (1) 30,137 31,471 31,636 Other Approved 15,594 15,982 15,381 45,731 47,453 47,017 To
Slide 19: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jun 25, Jul 1, 2016 2017 Balance sheet (period end amounts): Debt to Capital 19% 16% Net Cash (1) $ 95,965 $ 154,274 Cash flow: Cash flow from operations $ 105,135 $ 79,799 Capital expenditures $ 8,955 $ 6,628 Share repurchases $
Slide 20: 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 Second quarter 2017 YTD (000's) Free cash flow (1) $ 73,171 Share purchases $ - Endi
Slide 21: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 07/26/2017