Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q2 2024 Earnings Presentation
25 slides from Landstar System's earnings presentation, Jul 30, 2024
Slide 1: Landstar System, Inc. 2Q 2024 Earnings Conference Call
Exhibit 99.2 Landstar System, Inc. 2Q 2024 Earnings Conference Call Date
Slide 2: 2Q 2024 Forward-Looking Statements Disclaimer
2Q 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: 2Q 2024 Non-GAAP Financial Measures
2Q 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: 2Q 2024 Executive Summary
2Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 5: CEO Perspective: Results Highlights
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) ⚫ 2Q revenue performance 2Q 2024 first sequential revenue Metric 2Q 2024 2Q 2023 Chg. increase since 2Q 2022 ⚫ Strong Balance Sheet Revenue $ 1,225.0 $ 1,373.9 (10.8%) continues to return me
Slide 6: Landstar Network and 2Q Operating Results
Landstar Network and 2Q Operating Results L A N D S T A R N E T W O R K 2Q R E S U L T S Agents Customers Capacity Employees $1.11B Truck Revenue ~1,100 25,000+ 79,000+ ~1,500 508K Truck Loadings $2,177 Truck Revenue per Load 524 Million $ Agents* 9,180 BCO Trucks 70,832 Carriers 17,800+ 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 Jun 29, 2024 Dec 30, 2023 Jul 1, 2023 BCO Independent Contractors 8,385 9,024 9,748 Truck Brokerage Carriers (1) Approved and Active 45,382
Slide 8: 2Q 2024 Financial Results
2Q 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 (2.6%) (8.9%) (11.3%) $1,373.9 $1,225.0 Rail Intermodal (6.7%) (5.2%) (11.6%) Ocean/Air (7.8%) 2.5%) (5.5%) Insurance Premiums N/A N/A (12.8%) Total Revenue—— (10.8%) 2Q 2024 2Q 2023 (1
Slide 10: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue down 11% Y-O-Y Revenue Share Y-O-Y Change Market Segment 2Q 2024 2Q 2023 in Revenue 27.5 27.1 Consumer Durables (10) 14.2 13.9 Machinery (8) 10.9 12.0 Automotive (19) 9.6 8.5 Buildin
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 % 2Q Profit Contribution 2023 14.4 $198.2 $175.1 (3) Revenue – Fixed 0.2 $139.7 $120.0 Revenue – Variable (0.4) Change in Mix/Other 0.1 9
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 % 2Q Income Gross Profit Variable Contribution 2023 44.4) $88.0 63.0% 56.7% 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 Jun 29, 2024 Jul 1, 2023 Cash flow from operations $ 142.3 $ 191.7 Capital expenditures
Slide 14: 2Q 2024 3Q Guidance & Closing Remarks
2Q 2024 3Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 15: 3Q Guidance
3Q Guidance Slide header Ü Consolidated Revenue of $1.175 - $1.275 billion – Truck Loads 6% — 10% below prior year – Truck Revenue per Load 0% — 4% above prior year Ü Earnings per Share of $1.35 — $1.55 – Insurance Expense to approximate 5.5% of BCO revenue – Effective Income Tax Rate of 24.5% 15
Slide 16: 2Q 2024 Appendix
2Q 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 2Q 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 — 51%, Unsided/Platform — 31% LTL — 2% OTHER TRUCK — 6% 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. $2,809.5 Truck (5.0%) (11.0%) (15.4%) $2,396.0 Rail Intermodal (5.4%) (6.6%) (11.6%) Ocean/Air (10.8%) 2.9%) (8.2%) Insurance Premiums N/A N/A (12.5%) Total Revenue—— (14.7%) 2
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 % 2Q YTD Profit Contribution 2023 14.5 $406.9 $343.4 (1) $292.7 Revenue – Fixed 0.1 $233.9 Revenue – Variable (0.5) Change in Mix/
Slide 21: Operating Income – Year-to-Date as a Percentage of Gross Profit and Variable Contribution
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 % 2Q YTD Income Gross Profit Variable Contribution 2023 46.5) $189.
Slide 22: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Twenty-Six Weeks Ended Thirteen Weeks Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Revenue $ 2,396,048 $ 2,809,532 $ 1,225,005 $ 1,373,857 Costs of revenue: Purchased transportation 1,855,579 2,154,491 950,05
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 Free Cash Flow $ 288 $ 177 $ 253 $ 597 $ 368 Share Repurchases $ 89 $ 116 $ 123 $ 286 $ 54 Dividends Paid $ 28 $ 110 $ 112 $ 116 $ 117 (1) Common Share C
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. 2Q 2024 Earnings Conference Call
Landstar System, Inc. 2Q 2024 Earnings Conference Call Date