Slide 1: Landstar System Reports Third Quarter Revenue of $1.289B and EPS of $1.71
For Immediate Release Contact: Jim Todd (CFO) Landstar System, Inc. www.landstar.com October 25, 2023 904-398-9400 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $1.289B AND EARNINGS PER SHARE OF $1.71 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) reported b
Slide 2: Third quarter revenue by mode and CEO commentary
LANDSTAR SYSTEM/2 Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2023 third quarter was $1,173.8 million, or 91% of revenue, compared to $1,598.8 million, or 88% of revenue, in the 2022 third quarter. Truckload transportation
Slide 3: Fourth quarter 2023 outlook and About Landstar
LANDSTAR SYSTEM/3 a reminder, the 2022 fourth quarter included 14 weeks of operations while the 2023 fourth quarter will include 13 weeks. Taking that extra week in 2022 into consideration and assuming a continuation of the October trends coupled with our expectation of a muted peak season, I expect
Slide 4: Non-GAAP Financial Measures
LANDSTAR SYSTEM/4 contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity prov
Slide 5: Forward-looking statements
LANDSTAR SYSTEM/5 Landstar’s Form 10-K for the 2022 fiscal year, described in Item 1A Risk Factors, Landstar’s Form 10-Q for the 2023 first fiscal quarter, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or event
Slide 6: Consolidated Statements of Income
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2023 2022 2023 2022 Revenue $ 4,098,877 $ 5,761,7
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 30, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 439,661 $ 339,581 Short-term investments 57,099 53,955 Trade account
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2023 2022 2023 2022 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 9: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2023 2022 2023 2022 Revenue $ 4,098,877 $ 5,761,795 $
Slide 10: Landstar System, Inc. Earnings Conference Call Third Quarter 2023
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2023 October 25, 2023 Date Published: 10/25/2023
Slide 11: 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 12: 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. Management believes variable con
Slide 13: Who We Are
Who We Are Landstar, a Fortune 500 company, 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
Slide 14: Our Network
Our Network September 30, 2023 YTD Results $4.10 billion in revenue Agents 1.70 million loadings Approx. 1,100 625 million dollar agents (based on 2022 fiscal year) 10,253 BCO trucks Landstar 79,642 Carriers Employees 18,000+ Trailers Approx. 1,400 Capacity Customers 89,000+ 25,000+ 5 Date Published
Slide 15: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q22 3Q23 Truck Transportation Truckload Van equipment 50% 52% Unsided/platform equipment 25% 29% Less-than-truckload 2% 2% Other truck transportation 11% 8% Rail intermodal 2% 2% Ocean and air cargo 9% 5% 6 Date Published: 10/25/2023
Slide 16: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $6,600,000 $5,761,795 $1,900,000 $1,816,132 $6,000,000 $5,400,000 $1,700,000 $4,800,000 $4,098,877 $4,200,000 $1,500,000 $3,600,000 $1,289,345 $1,300,000 $3,000,000 $2,400,000 $1,100,000 3Q22 YTD 3Q23 YTD 3Q22 3Q23 ( 1) ( 2) ( 1) ( 2) Year over Prior Y
Slide 17: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 400,000 $3,000 370,000 $2,800 340,000 $2,600 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 4Q19 1Q20 3Q19 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 3Q19
Slide 18: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q22 3Q23 Change in Revenue Consumer Durables 28.6 27.7 -32% Machinery 12.1 14.1 -18% Automotive 8.7 11.5 -6% Building Products 8.5 8.3 -31% AA&E, Hazmat 8.4 7.8 -34% Metals 4.9 4.8 -31% Foodstuffs 3.4 2.5 -48% Substitute L
Slide 19: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $680,000 $200,000 $608,368 $185,722 $600,000 $180,000 $520,000 $420,733 $160,000 $440,000 $360,000 $140,000 $128,079 10.6% 10.3% 10.2% 9.9% $280,000 $120,000 3Q22 YTD 3Q23 YTD 3Q22 3Q23 (1) Gross profit equals reven
Slide 20: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date Quarter $860,000 $270,000 $783,695 $245,684 $750,000 $250,000 $594,246 $640,000 $230,000 $530,000 $210,000 $187,358 $420,000 $190,000 13.6% 14.5% 13.5% 14.5% $310,000 $170,000 3Q22 YTD 3Q23 YTD 3Q22 3Q23 3r
Slide 21: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date Quarter $160,000 $446,749 $460,000 $133,498 $140,000 $400,000 $120,000 $340,000 $269,582 $100,000 $280,000 $80,348 $220,000 $80,000 73.4% 64.1% 71.9% 62.7% $160,000 $60,000 3Q22 YTD 3Q23 YTD 3Q22 3Q23 12 Date Published: 10/25/20
Slide 22: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date Quarter $510,000 $160,000 $446,749 $450,000 $140,000 $133,498 $390,000 $120,000 $330,000 $269,582 $100,000 $270,000 $80,348 $80,000 $210,000 57.0% 45.4% 54.3% 42.9% $150,000 $60,000 3Q22 YTD 3Q23 YTD 3Q22 3Q23 3rd Qtr Y
Slide 23: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Sep 24, Dec 31, Sep 30, (2) 2022 2022 2023 (2) BCO Independent Contractors 10,742 10,393 9,455 Truck Brokerage Carriers: Approved and Active (1) 71,207 66,745 51,717 Other Approved 30,222 30,999 27,925 101,429 9
Slide 24: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Sep 24, Sep 30, 2022 2023 Balance sheet (period end amounts): Debt to Capital 11% 7% Net Cash (1) $ 118,963 $ 421,377 Cash flow (year-to-date): Cash flow from operations $ 436,381 $ 303,785 Capital expenditures $ 21,096 $ 15,394 Share rep
Slide 25: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $700,000 41,000 $600,000 40,000 $500,000 39,000 $400,000 38,000 $300,000 37,000 $200,000 36,000 $100,000 $0 35,000 2018 2019 2020 2021 2022 Free Cash Flow Share Purchases Dividends Paid Common Share Count Thi rd Qua rte r 2023 YTD (00
Slide 26: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 30, September 24, September 30, September 24, 2023 2022 2023 2022 Revenue $ 4,098,877 $ 5,761,795 $ 1,289,345 $ 1,816,132 Costs of revenue: Purchased transport
Slide 27: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 10/25/2023