Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q4 2022 Earnings Presentation
28 slides from Landstar System's earnings presentation, Feb 2, 2023
Slide 1: Landstar reports fourth quarter revenue of $1.675B and diluted EPS of $2.60
For Immediate Release Contact: Jim Todd (CFO) Landstar System, Inc. www.landstar.com February 1, 2023 904-398-9400 LANDSTAR SYSTEM REPORTS FOURTH QUARTER REVENUE OF $1.675B AND FOURTH QUARTER DILUTED EARNINGS PER SHARE OF $2.60 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or t
Slide 2: Press release continued: dividend, truck revenue and CEO comments
LANDSTAR SYSTEM/2 average debt, was 44 percent. The Company is currently authorized to purchase up to 3,000,000 shares of the Company’s common stock under its previously announced share purchase programs. Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.30
Slide 3: Fiscal year 2022 record results and first quarter outlook
LANDSTAR SYSTEM/3 Gattoni further stated, “As expected, even with a challenging 2022 fourth quarter, Landstar’s fiscal year financial performance in 2022 was the best in the Company’s history. Revenue in fiscal year 2022 was approximately $7.4 billion, an annual record, and was approximately $900 mi
Slide 4: Recent trends and 2023 first quarter revenue guidance
LANDSTAR SYSTEM/4 Gattoni further commented, “With respect to recent trends, the number of loads hauled via truck has been 10 to 12 percent below the corresponding period of 2022 and overall truck revenue per load has been 15 to 17 percent below the corresponding period of 2022. Prior to the onset o
Slide 5: Non-GAAP financial measures explanation
LANDSTAR SYSTEM/5 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 6: Forward-looking statements
LANDSTAR SYSTEM/6 the 2021 fiscal year, described in Item 1A Risk Factors, Landstar’s Form 10-Qs for the 2022 first and second fiscal quarters, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ
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) Fiscal Years Ended Fiscal Quarters Ended December 31, December 25, December 31, December 25, 2022 2021 2022 2021 Revenue $ 7,436,562 $ 6,537,568 $ 1,6
Slide 8: Consolidated Balance Sheets
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) December 31, December 25, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 339,581 $ 215,522 Short-term investments 53,955 35,778 Trade accounts
Slide 9: Supplemental Information
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Fiscal Years Ended Fiscal Quarters Ended December 31, December 25, December 31, December 25, 2022 2021 2022 2021 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 3,892
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) Fiscal Years Ended Fiscal Quarters Ended December 31, December 25, December 31, December 25, 2022 2021 2022 2021 Revenue $ 7,436,562 $ 6,537,568 $ 1,674,
Slide 11: Earnings Conference Call Fourth Quarter 2022
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Fourth Quarter 2022 December 31, 2022 Date Published: 02/01/2023
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 2022 Results $7.44 billion in revenue Agents Over 2.6 million loadings Approx. 1,200 625 million dollar agents 11,281 BCO trucks (2022 year-end) 97,744 Carriers (2022 year-end) Landstar 18,500+ Trailers (2022 year-end) Employees Approx. 1,400 Capacity Customers 108,000+ 25,000+ 5 Date Pu
Slide 16: Transportation Management Services
Transportation Management Services Percentage of Revenue 4Q21 4Q22 Truck Transportation Truckload Van equipment 53% 52% Unsided/platform equipment 22% 25% Less-than-truckload 2% 2% Other truck transportation 13% 12% Rail intermodal 2% 2% Ocean and air cargo 7% 5% 6 Date Published: 02/01/2023
Slide 17: Revenue
Revenue ($’s in thousands) Fiscal Year Quarter $8,250,000 $2,200,000 $7,436,562 $7,500,000 $1,945,017 $2,000,000 $6,537,568 $6,750,000 $1,800,000 $6,000,000 $1,674,767 $5,250,000 $1,600,000 $4,500,000 $1,400,000 2021 2022 4Q21 4Q22 ( 2) ( 3) ( 2) ( 3) Year over Prior Year Rate Volume Change Qtr over
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 $2,600 310,000 $2,400 280,000 $2,200 $2,000 250,000 $1,800 220,000 $1,600 3Q21 3Q22 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 4Q21 1Q22 2Q22 4Q22 4Q21 4Q19 1Q20 2Q20 3Q20
Slide 19: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 4Q21 4Q22 Change in Revenue Consumer Durables 32.3 28.9 -23% Machinery 10.3 12.5 5% Automotive 7.2 10.9 30% AA&E, Hazmat 7.6 7.8 -12% Building Products 7.8 7.7 -15% Metals 4.7 4.6 -15% Substitute Line Haul 5.4 3.6 -43% Food
Slide 20: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Fiscal Year Quarter $230,000 $880,000 $209,841 $788,396 $210,000 $810,000 $721,010 $190,000 $740,000 $180,028 $170,000 $670,000 11.0% 10.6% 10.8% 10.7% $600,000 $150,000 4Q21 4Q22 2021 2022 (1) Gross profit equals revenue less the cost
Slide 21: Variable Contribution and Variable Contribution Margin
Variable Contribution (1) and Variable Contribution Margin (2) ($’s in thousands) Fiscal Year Quarter $1,100,000 $280,000 $1,017,680 $263,335 $1,020,000 $260,000 $915,692 $940,000 $233,985 $240,000 $860,000 $220,000 $780,000 14.0% 13.7% 13.5% 14.0% $700,000 $200,000 2021 2022 4Q21 4Q22 Fiscal Year (
Slide 22: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Fiscal Year Quarter $610,000 $571,083 $170,000 $550,000 $148,740 $505,668 $124,334 $130,000 $490,000 $90,000 $430,000 70.9% 69.1% 70.1% 72.4% $50,000 $370,000 $10,000 2021 2022 4Q21 4Q22 (1) The Company’s fiscal year ends each year on the la
Slide 23: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Fiscal Year Quarter $600,000 $175,000 $571,083 $560,000 $148,740 $150,000 $505,668 $520,000 $124,334 $125,000 $480,000 $440,000 $100,000 55.2% 56.1% 56.5% 53.1% $400,000 $75,000 2021 2022 4Q21 4Q22 Fiscal Year 4th Qtr Changes in ope
Slide 24: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Dec 25, Dec 31, (2) 2021 2022 (2) BCO Independent Contractors 11,057 10,393 Truck Brokerage Carriers: Approved and Active (1) 64,476 66,745 Other Approved 25,870 30,999 90,346 97,744 Total Available Truck Capaci
Slide 25: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Dec 25, Dec 31, 2021 2022 Balance sheet (period end amounts): Debt to Capital 11% 10% Net Cash (1) $ 139,496 $ 290,136 Cash flow: Cash flow from operations $ 276,740 $ 622,659 Capital expenditures $ 23,261 $ 26,005 Share repurchases $ 122
Slide 26: 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 $0 35,000 2018 2019 2020 2021 2022 Free Cash Flow Share Purchases Dividends Paid Common Share Count 2022 (000's ) Fre e ca s h fl
Slide 27: Appendix A: Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Fiscal Years Ended Fiscal Quarters Ended December 31, December 25, December 31, December 25, 2022 2021 2022 2021 Revenue $ 7,436,562 $ 6,537,568 $ 1,674,767 $ 1,945,017 Costs of revenue: Purchased transportation 5,
Slide 28: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 02/01/2023