Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2024 Earnings Presentation
22 slides from Landstar System's earnings presentation, Apr 25, 2024
Slide 1: Landstar System, Inc. 1Q 2024 Earnings Conference Call
Exhibit 99.2 Landstar System, Inc. 1Q 2024 Earnings Conference Call Date
Slide 2: 1Q 2024 Forward-Looking Statements Disclaimer
1Q 2024 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
Slide 3: 1Q 2024 Non-GAAP Financial Measures
1Q 2024 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 varia
Slide 4: 1Q Executive Summary
1Q Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 5: CEO Perspective
CEO Perspective Slide header R E S U L T S H I G H L I G H T S Dollars in Millions (except per share amounts) l 1Q revenue performance stronger than anticipated Metric 1Q 2024 1Q 2023 Chg. Revenue $ 1,171.0 $ 1,435.7 (18.4%) l Balance sheet continues to be very strong Operating Income $ 60.0 $ 101.3
Slide 6: Landstar Network and 1Q Operating Results
Landstar Network and 1Q Operating Results L A N D S T A R N E T W O R K 1Q R E S U L T S Customers Agents $1.07B Truck Revenue ~1,100 25,000+ 491K Truck Loadings $2,178 Truck Revenue per Load 524 Million $ Agents* 9,410 BCO Trucks 72,239 Carriers 17,600+ Trailers DOT Accidents 0.52 per Million Miles
Slide 7: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period A V A I L A B L E T R U C K C A P A C I T Y P R O V I D E R S Type of Capacity Mar 30, 2024 Dec 30, 2023 Apr 1, 2023 BCO Independent Contractors 8,619 9,024 9,996 Truck Brokerage Carriers (1) Approved and Active 45,919
Slide 8: 1Q Financial Results
1Q Financial Results Jim Todd Chief Financial Officer 8
Slide 9: Revenue
Revenue Slide header Dollars in Millions R E S U L T S V A R I A N C E (1) (2) Revenue Source Rate Vol. Chg. $1,435.7 Truck (7.2%) (13.0%) (19.2%) $1,171.0 Rail Intermodal (4.0%) (7.9%) (11.5%) Ocean/Air (14.3%) 3.3%) (11.5%) Insurance Premiums N/A N/A (12.3%) Total Revenue — — (18.4%) 1Q 2024 1Q 20
Slide 10: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue down 19% Y-O-Y Revenue Share Y-O-Y Change 1Q 2024 1Q 2023 Market Segment in Revenue 28.1 28.6 Consumer Durables (20) 13.5 13.1 Machinery (16) 11.7 10.9 Automotive (12) 8.6 7.7 Buildi
Slide 11: Gross Profit and Variable Contribution with Associated Margins
(1) (2) Gross Profit and Variable Contribution with Associated Margins Dollars in Millions R E S U L T S C H A N G E I N V C M A R G I N Gross Variable Amounts in % 1Q Profit Contribution 2023 14.5 $208.7 $168.2 (3) Revenue – Fixed 0.0 $152.9 $113.9 Revenue – Variable (0.5) Change in Mix/Other 0.4 9
Slide 12: Operating Income as a Percentage of Gross Profit and Variable Contribution
Operating Income Slide header as a Percentage of Gross Profit and Variable Contribution Dollars in Millions R E S U L T S C H A N G E I N P E R C E N T A G E of Variable Contribution Operating Percentage of Amounts in % 1Q Income Gross Profit Variable Contribution 2023 48.5) 66.2% $101.3 Other opera
Slide 13: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics Dollars in Millions (1) N E T C A S H S O U R C E S / U S E S O F C A S H (2) with Debt to Capital Cash Flow Type 1Q 2024 1Q 2023 as of date indicated Cash flow from operations $ 94.2 $ 139.0 $465.2 Capital expenditures $ 9.3 $ 6.2 (3) Free cash flow $ 84.9
Slide 14: 1Q 2Q Guidance & Closing Remarks
1Q 2Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 15: 2Q Guidance
2Q Guidance Slide header Ü Consolidated Revenue of $1.2 - $1.3 billion – Truck Loads 5% — 9% below prior year – Truck Revenue per Load 0% — 4% below prior year Ü Earnings per Share of $1.35 — $1.55 – Insurance Expense to approximate 5.5% of BCO revenue – Effective Income Tax Rate of 24.5% 15
Slide 16: 1Q Appendix
1Q Appendix 16
Slide 17: Revenue Breakdown by Service Type
Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 1Q 2 0 2 4 by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% T R U C K T R A N S P O R T A T I O N T R U C K L O A D Van — 54%, Unsided/Platform — 29% LTL — 2% OTHER TRUCK — 6% RAIL INTERMODAL — 2% OCEAN / AIR CARGO —
Slide 18: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends V A N U N S I D E D / P L A T F O R M NUMBER OF LOADS NUMBER OF LOADS 400,000 150,000 300,000 100,000 200,000 50,000 100,000 0 0 REVENUE PER LOAD REVENUE PER LOAD $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $
Slide 19: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Thirteen Weeks Ended March 30, April 1, 2024 2023 Revenue $ 1,171,043 $ 1,435,675 Costs of revenue: Purchased transportation 905,521 1,101,294 Commissions to agents 97,282 125,675 Variable costs of revenue 1,002,803 1,226,9
Slide 20: Free Cash Flow with Stock Purchases and Dividends
Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5 – Y E A R S U M M A R Y Cash Flow Item 2019 2020 2021 2022 2023 Free Cash Flow $ 288 $ 177 $ 253 $ 597 $ 368 Share Repurchases $ 89 $ 116 $ 123 $ 286 $ 54 Dividends Paid $ 28 $ 110 $ 112 $ 116 $ 117 (1) Common Share C
Slide 21: DOT Accident Frequency per Million Miles Traveled by BCOs
(1) DOT Accident Frequency per Million Miles Traveled by BCOs 5 – Y E A R S U M M A R Y 0.70 0.65 0.65 0.62 0.60 0.60 0.57 0.57 0.55 0.50 2019 2020 2021 2022 2023 (1) A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a
Slide 22: Landstar System, Inc. 1Q 2024 Earnings Conference Call
Landstar System, Inc. 1Q 2024 Earnings Conference Call Date