Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q2 2020 Earnings Presentation
22 slides from Landstar System's earnings presentation, Jul 22, 2020
Slide 1: Landstar System Reports Second Quarter Revenue of $824 Million
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com July 22, 2020 904-398-9400 LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $824 MILLION AND DILUTED EARNINGS PER SHARE OF $0.63 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings per sh
Slide 2: Press release: revenue mix, cash flow and dividend declaration
LANDSTAR SYSTEM/2 Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2020 second quarter was $753.3 million, or 91 percent of revenue, compared to $968.2 million, or 93 percent of revenue, in the 2019 second quarter. Truckload tra
Slide 3: CEO commentary on freight demand and pandemic relief
LANDSTAR SYSTEM/3 reduce the spread of COVID-19. As anticipated, demand for freight services slowed significantly and capacity became readily available during the Company’s 2020 second quarter, especially in the spot market where the Company primarily operates. The number of loads and revenue per lo
Slide 4: Third quarter 2020 outlook
LANDSTAR SYSTEM/4 ranges. Assuming current demand conditions persist, I expect the number of loads hauled via truck in the 2020 third quarter to be below the number of loads hauled by truck in the 2019 third quarter in a mid single-digit percentage range. My expectation is that pricing conditions fo
Slide 5: Forward-looking statements and About Landstar
LANDSTAR SYSTEM/5 information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; catastrophic loss of a Company facility; intellectual prop
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) Twenty Six Weeks Ended Thirteen Weeks Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Revenue $ 1,751,080 $ 2,078,040 $ 823,514 $ 1,045,
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 27, December 28, 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 245,471 $ 319,515 Short-term investments 36,274 32,901 Trade accounts rec
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,028,334 $ 1,224,
Slide 9: Earnings Conference Call Second Quarter 2020
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2020 July 22, 2020 Date Published: 07/22/2020
Slide 10: 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 11: 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: 07/22/202
Slide 12: The Network
The Network 2019 Results Agents $4.1 billion in revenue Approx. 1,200 2.1 million loadings 555 million dollar agents 10,243 BCO trucks (2019 year-end) Landstar 56,317 Carriers (2019 year-end) Employees 17,000+ Trailers (2019 year-end) Approx. 1,300 Capacity Customers 65,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q19 2Q20 Truck Transportation Truckload Van equipment 58% 59% Unsided/platform equipment 32% 30% Less-than-truckload 2% 3% Rail intermodal 3% 3% Ocean and air cargo 3% 4% 5 Date Published: 07/22/2020
Slide 14: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $2,400,000 $1,150,000 $2,300,000 $2,200,000 $1,045,040 $2,078,040 $1,070,000 $2,100,000 $2,000,000 $990,000 $1,900,000 $1,751,080 $910,000 $1,800,000 $1,700,000 $823,514 $830,000 $1,600,000 $1,500,000 $750,000 2Q19 YTD 2Q20 YTD 2Q19 2Q20 Year over Prio
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 380,000 $2,100 360,000 $2,000 340,000 $1,900 320,000 $1,800 300,000 280,000 $1,700 260,000 $1,600 240,000 $1,500 4Q18 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1Q19 2Q17 3Q17 4Q17
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q19 2Q20 Growth Consumer Durables 24.6 24.3 -22% Machinery 14.7 13.0 -30% Automotive 7.2 4.3 -53% Building Products 9.6 9.7 -21% Metals 6.5 5.3 -35% AA&E, Hazmat 9.2 9.6 -18% Foodstuffs 3.8 5.8 22% Energy 3.0 3.7 -2% Other
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date (4) Quarter (4) $313,620 $158,046 $320,000 $160,000 $300,000 $140,000 $280,000 15.1% 15.1% $256,048 $120,000 $260,000 $113,115 14.6% 13.7% $240,000 $100,000 2Q19 YTD 2Q20 YTD 2Q19 2Q20 2nd Qtr YTD (3) 2nd Qtr (3) Changes in
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $167,000 $161,747 $97,000 $152,000 $80,851 $82,000 $137,000 $67,000 $122,000 $52,000 $107,000 51.6% $86,186 51.2% $32,181 $92,000 $37,000 33.7% 28.4% $77,000 $22,000 2Q19 YTD 2Q20 YTD 2Q19 2Q20 2nd Qtr YTD 2nd Qtr Chan
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Jun 29, Dec 28, Jun 27, 2019 (2) 2019 2020 (2) BCO Independent Contractors 9,879 9,554 9,632 Truck Brokerage Carriers: Approved and Active (1) 40,097 39,497 37,600 Other Approved 17,790 16,820 16,365 57,887 56,317 53,965 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jun 29, Jun 27, 2019 2020 Balance sheet (period end amounts): Debt to Capital 13% 13% Net Cash (1) $ 180,583 $ 183,374 Cash flow: Cash flow from operations $ 184,076 $ 198,385 Capital expenditures (2) $ 9,224 $ 20,377 Share repurc
Slide 21: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 42,500 $300,000 42,000 $250,000 41,500 $200,000 41,000 40,500 $150,000 40,000 $100,000 39,500 $50,000 39,000 $0 38,500 2015 2016 2017 2018 2019 Free Cash Flow Share Purchases Dividends Paid Common Share Count Second qu
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 07/22/2020