Slide 1: Landstar System Reports Second Quarter Revenue of $1.045 Billion
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com July 24, 2019 904-398-9400 LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $1.045 BILLION AND RECORD SECOND QUARTER DILUTED EARNINGS PER SHARE OF $1.53 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported
Slide 2: approximately 1,326,000 shares of the Company’s common stock under Landstar’s under the Company’s senior
LANDSTAR SYSTEM/2 average equity plus average debt, was 32 percent. Landstar purchased approximately 550,000 shares of its common stock during the 2019 second quarter at an aggregate cost of approximately $56.8 million. Currently, the Company is authorized to purchase up to approximately 1,326,000 s
Slide 3: numbers were offset by lower costs, showing the strength of Landstar’s variable cost Gattoni
LANDSTAR SYSTEM/3 Nonetheless, diluted earnings per share were $1.53 in the 2019 second quarter, the highest second quarter diluted earnings per share in Landstar history, as lower top-line numbers were offset by lower costs, showing the strength of Landstar’s variable cost model.” Gattoni continued
Slide 4: 2019 third quarter diluted earnings per share to be in a range of $1.48
LANDSTAR SYSTEM/4 conditions continue throughout the rest of the third quarter, I expect 2019 third quarter truck revenue per load to be lower than the 2018 third quarter in a low double-digit percentage range. I anticipate revenue for the 2019 third quarter to be in a range of $1.01 billion to $1.0
Slide 5: Forward-looking statements and About Landstar
LANDSTAR SYSTEM/5 should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. About Landstar: Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation manageme
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 29, June 30, June 29, June 30, 2019 2018 2019 2018 Revenue $ 2,078,040 $ 2,230,712 $ 1,045,040 $ 1,18
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 29, December 29, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 250,212 $ 199,736 Short-term investments 35,138 40,058 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 29, June 30, June 29, June 30, 2019 2018 2019 2018 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,224,379 $ 1,369,
Slide 9: Earnings Conference Call Second Quarter 2019
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2019 July 24, 2019 Date Published: 07/24/2019
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: 07/24/201
Slide 12: The Network
The Network 2018 Results Agents $4.6 billion in revenue Approx. 1,300 2.1 million loadings 608 million dollar agents 10,599 BCO trucks (2018 year-end) Landstar 59,054 Carriers (2018 year-end) Employees 16,000+ Trailers (2018 year-end) Approx. 1,200 Capacity Customers 68,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q18 2Q19 Truck Transportation Truckload Van equipment 60% 58% Unsided/platform equipment 31% 32% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 2% 3% 5 Date Published: 07/24/2019
Slide 14: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $2,400,000 $2,230,712 $1,250,000 $2,300,000 $1,182,786 $2,200,000 $2,078,040 $1,170,000 $2,100,000 $1,045,040 $2,000,000 $1,090,000 $1,900,000 $1,800,000 $1,010,000 $1,700,000 $930,000 $1,600,000 $1,500,000 $850,000 2Q18 YTD 2Q19 YTD 2Q18 2Q19 Year ove
Slide 15: Truckload Loadings and Revenue per Load
Truckload Loadings and Revenue per Load (Excludes LTL) Van Equipment Number of Loads (1) 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 $1,500 4Q17 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q18 2Q16 3Q16 4
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q18 2Q19 Growth Consumer Durables 22.8 24.6 -5% Machinery 14.5 14.7 -10% Automotive 8.0 7.2 -21% Building Products 9.5 9.6 -11% Metals 6.9 6.5 -18% AA&E, Hazmat 9.0 9.2 -10% Foodstuffs 5.6 3.8 -41% Energy 2.3 3.0 16% Other
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $190,000 $340,000 $180,000 $326,951 $171,447 $170,000 $320,000 $313,620 $160,000 $158,046 $300,000 14.7% 14.5% 15.1% $150,000 15.1% $280,000 $140,000 2Q18 YTD 2Q19 YTD 2Q18 2Q19 2nd Qtr YTD (3) 2nd Qtr (3) Changes i
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $95,000 $170,000 $161,747 $83,426 $85,000 $158,579 $80,851 $155,000 48.7% 48.5% $75,000 51.6% 51.2% 48.4% 4 $140,000 $65,000 2Q18 YTD 2Q19 YTD 2Q18 2Q19 2nd Qtr YTD 2nd Qtr Changes in operating margin % Changes in oper
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Jun 30, Dec 29, Jun 29, 2018 (2) 2018 2019 (2) BCO Independent Contractors 9,501 9,884 9,879 Truck Brokerage Carriers: Approved and Active (1) 37,045 41,069 40,097 Other Approved 15,406 17,985 17,790 52,451 59,054 57,887 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jun 30, Jun 29, 2018 2019 Balance sheet (period end amounts): Debt to Capital 14% 13% Net Cash (1) $ 85,002 $ 180,583 Cash flow: Cash flow from operations $ 113,029 $ 184,076 Capital expenditures $ 4,121 $ 9,224 Share repurchases
Slide 21: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 46,000 $300,000 45,000 $250,000 44,000 $200,000 43,000 $150,000 42,000 $100,000 41,000 $50,000 $0 40,000 2014 2015 2016 2017 2018 Free Cash Flow Share P urchases Dividends Paid Common Share Count Second quarter 2019 YTD (000'
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 07/24/2019