Slide 1: Landstar Reports Record Third Quarter Revenue and Diluted EPS
For Immediate Release Contacts: Jim Gattoni (CEO) Jim Todd (CFO) Landstar System, Inc. www.landstar.com October 19, 2022 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD THIRD QUARTER REVENUE OF $1.816B AND RECORD THIRD QUARTER DILUTED EARNINGS PER SHARE OF $2.76 Jacksonville, FL - Landstar System, Inc.
Slide 2: Press release continued: buybacks, dividend, truck revenue
LANDSTAR SYSTEM/2 purchased during the thirty-nine weeks ended September 24, 2022 to 1,901,000 shares at an aggregate cost of approximately $286.0 million. The Company is currently authorized to purchase up to an additional 1,099,174 shares of the Company’s common stock under its previously announce
Slide 3: Press release continued: CEO commentary and outlook
LANDSTAR SYSTEM/3 hauled by other truck transportation services was largely attributable to reduced demand from certain parcel and less-than-truckload carriers for our truckload services, as volumes from those customers have returned to more normalized levels since peaking in 2021 and early 2022. Re
Slide 4: Fourth quarter guidance for revenue and DEPS
LANDSTAR SYSTEM/4 expect the number of loads hauled via truck to decrease compared to the 2021 fourth quarter by 2 to 4 percent. As such, I anticipate revenue for the 2022 fourth quarter to be in a range of $1.775 billion to $1.825 billion.” Gattoni continued, “Based on the range of revenue estimate
Slide 5: Non-GAAP Financial Measures
LANDSTAR SYSTEM/5 Non-GAAP Financial Measures: In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution and variable contribution margin. The Company believes variable contri
Slide 6: Forward-looking statements and risk factors
LANDSTAR SYSTEM/6 and other 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; intellectual property; and other operational, fi
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) Thirty Nine Weeks Ended Thirteen Weeks Ended September 24, September 25, September 24, September 25, 2022 2021 2022 2021 Revenue $ 5,761,795 $ 4,592,5
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 24, December 25, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 177,796 $ 215,522 Short-term investments 50,637 35,778 Trade account
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 24, September 25, September 24, September 25, 2022 2021 2022 2021 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 10: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/10 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 24, September 25, September 24, September 25, 2022 2021 2022 2021 Revenue $ 5,761,795 $ 4,592,551
Slide 11: Landstar System, Inc. Earnings Conference Call Third Quarter 2022
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2022 September 24, 2022 Date Published: 10/19/2022
Slide 12: 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 13: 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 14: 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 15: Our Network
Our Network September 24, 2022 YTD Results $5.76 billion in revenue Agents 2.00 million loadings Approx. 1,200 593 million dollar agents (based on 2021 fiscal year) 11,644 BCO trucks Landstar 101,429 Carriers Employees 18,000+ Trailers Approx. 1,300 Capacity Customers 112,000+ 25,000+ 5 Date Publish
Slide 16: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q21 3Q22 Truck Transportation Truckload Van equipment 53% 50% Unsided/platform equipment 24% 25% Less-than-truckload 2% 2% Other truck transportation 12% 11% Rail intermodal 3% 2% Ocean and air cargo 5% 9% 6 Date Published: 10/19/2022
Slide 17: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $6,500,000 $2,000,000 $5,761,795 $6,000,000 $1,816,132 $1,800,000 $1,734,299 $5,500,000 $5,000,000 $4,592,551 $1,600,000 $4,500,000 $1,400,000 $4,000,000 $3,500,000 $1,200,000 3Q21 YTD 3Q22 YTD 3Q21 3Q22 Year over Prior Year Rate ( 1) Volume ( 2) Chang
Slide 18: 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 $1,600 3Q21 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 4Q21 1Q22 2Q22 3Q22 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 19: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q21 3Q22 Change in Revenue Consumer Durables 30.3 28.6 -1% Machinery 11.1 12.1 14% Automotive 6.8 8.7 33% Building Products 8.2 8.5 8% AA&E, Hazmat 8.7 8.4 0% Metals 5.1 4.9 1% Foodstuffs 3.9 3.4 -10% Substitute Line Haul
Slide 20: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $650,000 $210,000 $608,368 $189,194 $580,000 $190,000 $185,722 $511,169 $510,000 $170,000 $440,000 $150,000 $370,000 11.1% 10.6% 10.9% 10.2% $130,000 $300,000 3Q21 3Q22 3Q21 YTD 3Q22 YTD (1) Gross profit equals reve
Slide 21: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date Quarter $820,000 $280,000 $783,695 $740,000 $260,000 $245,684 $242,333 $652,357 $660,000 $240,000 $580,000 $220,000 $500,000 14.2% 13.6% $200,000 14.0% 13.5% $420,000 $180,000 3Q21 YTD 3Q22 YTD 3Q21 3Q22 3r
Slide 22: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date Quarter $480,000 $150,000 $446,749 $133,498 $131,412 $420,000 $130,000 $356,928 $360,000 $110,000 $300,000 69.8% 73.4% $90,000 69.4% 71.9% $240,000 $70,000 3Q21 YTD 3Q22 YTD 3Q21 3Q22 12 Date Published: 10/19/2022
Slide 23: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date Quarter $490,000 $175,000 $446,749 $450,000 $150,000 $410,000 $133,498 $131,412 $356,928 $370,000 $125,000 $330,000 $100,000 $290,000 54.7% 57.0% 54.2% 54.3% $250,000 $75,000 3Q21 YTD 3Q22 YTD 3Q21 3Q22 3rd Qtr YTD 3rd
Slide 24: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Sep 25, Dec 25, Sep 24, (2) 2021 2021 2022 (2) BCO Independent Contractors 10,955 11,057 10,742 Truck Brokerage Carriers: Approved and Active (1) 58,676 64,476 71,207 Other Approved 24,602 25,870 30,222 83,278 9
Slide 25: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Sep 25, Sep 24, 2021 2022 Balance sheet (period end amounts): Debt to Capital 10% 11% Net Cash (1) $ 169,867 $ 118,963 Cash flow (year-to-date): Cash flow from operations $ 216,990 $ 436,381 Capital expenditures $ 18,561 $ 21,096 Share re
Slide 26: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 $300,000 42,000 $250,000 41,000 $200,000 40,000 $150,000 39,000 $100,000 38,000 $50,000 $0 37,000 2017 2018 2019 2020 2021 Free Cash Flow Share Purchases Dividends Paid Common Share Count Thi rd Qua rte r 2022 YTD (000
Slide 27: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Thirty Nine Weeks Ended Thirteen Weeks Ended September 24, September 25, September 24, September 25, 2022 2021 2022 2021 Revenue $ 5,761,795 $ 4,592,551 $ 1,816,132 $ 1,734,299 Costs of revenue: Purchased transport
Slide 28: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 10/19/2022