Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2018 Earnings Presentation
21 slides from Landstar System's earnings presentation, Apr 25, 2018
Slide 1: Landstar System Reports Record First Quarter Revenue and Diluted EPS
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com April 25, 2018 904-398-9400 LANDSTAR SYSTEM REPORTS RECORD FIRST QUARTER REVENUE OF $1.048 BILLION AND RECORD FIRST QUARTER DILUTED EARNINGS PER SHARE OF $1.37 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) re
Slide 2: authorized to purchase up to approximately 2,986,000 shares of the Company’s $217 million available
LANDSTAR SYSTEM/2 sum of average equity plus average debt, was 27 percent. Currently, the Company is authorized to purchase up to approximately 2,986,000 shares of the Company’s common stock under Landstar’s previously announced share purchase programs. As of March 31, 2018, the Company had $260 mil
Slide 3: Gattoni continued, “Through the first few weeks of April, load growth on a year-over-
LANDSTAR SYSTEM/3 Gattoni continued, “Through the first few weeks of April, load growth on a year-over- year basis in loads hauled via truck was consistent with the load growth experienced in the first quarter. I expect that trend to continue and, therefore, expect the number of loads hauled via tru
Slide 4: or failures in the Company’s computer systems; cyber and other information security uncertainties detailed
LANDSTAR SYSTEM/4 services; U.S. foreign trade relationships; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory a
Slide 5: Consolidated Statements of Income
LANDSTAR SYSTEM/5 Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited) Thirteen Weeks Ended March 31, April 1, 2018 2017 Revenue $ 1,047,926 $ 780,908 Investment income 861 414 Costs and expenses: Purchased transportation
Slide 6: Consolidated Balance Sheets
LANDSTAR SYSTEM/6 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) March 31, December 30, 2018 2017 ASSETS Current assets: Cash and cash equivalents $ 220,605 $ 242,416 Short-term investments 39,014 48,928 Trade accounts re
Slide 7: Supplemental Information
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended March 31, April 1, 2018 2017 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 656,135 $ 469,783 Unsided/platform equipment 299,369 237,177 Less-th
Slide 8: Earnings Conference Call First Quarter 2018
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2018 April 25, 2018 Date Published: 04/25/2018
Slide 9: 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 10: 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: 04/25/201
Slide 11: The Network
The Network 2017 Results Agents $3.6 billion in revenue Approx. 1,200 2.0 million loadings 542 million dollar agents 9,696 BCO trucks (2017 year-end) Landstar 49,934 Carriers (2017 year-end) Employees 15,000+ Trailers (2017 year-end) Approx. 1,300 Capacity Customers 59,000+ 25,000+ 4 Date Published:
Slide 12: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q17 1Q18 Truck Transportation Truckload Van equipment 60% 63% Unsided/platform equipment 30% 29% Less-than-truckload 3% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% 5 Date Published: 04/25/2018
Slide 13: Revenue
Revenue ($’s in thousands) Quarter Quarter $1,100,000 $1,047,926 Qtr over Prior Qtr Rate (1) Volume (2) Change $1,050,000 $1,000,000 Truck Revenue 20.7% 11.6% 34.7% $950,000 $900,000 Rail Intermodal Revenue 2.8% 24.7% 28.2% $850,000 $780,908 Ocean/Air Revenue 8.5% 10.5% 19.8% $800,000 $750,000 Insur
Slide 14: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads Revenue per Load 350,000 340,000 $2,000 330,000 320,000 $1,900 310,000 300,000 $1,800 290,000 280,000 $1,700 270,000 260,000 $1,600 250,000 240,000 4Q16 $1,500 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 4Q17
Slide 15: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q17 1Q18 Growth Consumer Durables 21.5 23.5 48% Machinery 15.3 14.0 23% Automotive 8.7 8.4 31% Building Products 8.6 8.5 34% Metals 6.7 6.4 30% AA&E, Hazmat 8.8 8.9 37% Foodstuffs 5.2 6.0 57% Energy 3.1 2.3 1% Other 22.3 2
Slide 16: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter $160,000 $155,504 1st Qtr (3) Changes in gross profit margin % $145,000 2017 Period 15.6 Revenue - fixed gp margin -0.1 $130,000 14.8% Revenue - variable gp margin -0.3 $121,587 15.6% Change in mix and other -0.4 $115,000 1Q17 1
Slide 17: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Quarter $79,000 1st Qtr $75,153 48.4% 4 Changes in operating margin % 2017 Period 43.0 $69,000 Other operating costs 0.8 Insurance and claims 1.0 $59,000 SG&A 2.4 48.3% $52,334 Depreciation and amortization 1.1 $49,000 43.0% 2018 Period 48
Slide 18: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Apr 1, Dec 30, Mar 31, (2) 2017 2017 2018 (2) BCO Independent Contractors 8,772 9,087 9,243 Truck Brokerage Carriers: Approved and Active (1) 31,566 34,243 34,659 Other Approved 15,889 15,691 15,687 47,455 49,934 50,346 To
Slide 19: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) QTR QTR Apr 1, Mar 31, 2017 2018 Balance sheet (period end amounts): Debt to Capital 18% 14% Net Cash (1) $ 151,630 $ 146,338 Cash flow: Cash flow from operations $ 61,948 $ 72,002 Capital expenditures $ 4,978 $ 3,814 Share repurchases $
Slide 20: Free Cash Flow / Share Purchases
Free Cash Flow (1) / Share Purchases (In Thousands) $250,000 50,000 $200,000 48,000 $150,000 46,000 $100,000 44,000 $50,000 42,000 $- 40,000 2013 2014 2015 2016 2017 Free Cash Flow Share Purchases Common Share Count First quarter 2018 (000's) Free cash flow (1) $ 68,188 Share purchases $ 1,508 Endin
Slide 21: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 04/25/2018