Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2019 Earnings Presentation
22 slides from Landstar System's earnings presentation, Apr 24, 2019
Slide 1: Landstar System Reports First Quarter Revenue of $1.033 Billion
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com April 24, 2019 904-398-9400 LANDSTAR SYSTEM REPORTS FIRST QUARTER REVENUE OF $1.033 BILLION AND RECORD FIRST QUARTER DILUTED EARNINGS PER SHARE OF $1.58 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported
Slide 2: LANDSTAR SYSTEM/2 sum of average equity plus average debt, was 32 percent. Landstar purchased
LANDSTAR SYSTEM/2 sum of average equity plus average debt, was 32 percent. Landstar purchased 124,481 shares of its common stock during the 2019 first quarter at an aggregate cost of approximately $13.0 million. Currently, the Company is authorized to purchase up to approximately 1,876,000 shares of
Slide 3: LANDSTAR SYSTEM/3 Gattoni further commented, “As expected, the pricing environment for our truck services
LANDSTAR SYSTEM/3 Gattoni further commented, “As expected, the pricing environment for our truck services softened in the 2019 first quarter, as industry-wide truck capacity was more readily available than during the 2018 first quarter. The Company’s guidance issued on January 30, 2019 called for a
Slide 4: Safe harbor statement
LANDSTAR SYSTEM/4 The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as
Slide 5: LANDSTAR SYSTEM/5 System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on
LANDSTAR SYSTEM/5 System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR. (Tables follow)
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) Thirteen Weeks Ended March 30, March 31, 2019 2018 Revenue $ 1,033,000 $ 1,047,926 Investment income 1,138 861 Costs and expenses: Purchased transport
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) March 30, December 29, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 264,625 $ 199,736 Short-term investments 39,958 40,058 Trade accounts re
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended March 30, March 31, 2019 2018 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 619,014 $ 656,135 Unsided/platform equipment 310,721 299,369 Less-t
Slide 9: Earnings Conference Call First Quarter 2019
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call First Quarter 2019 April 24, 2019 Date Published: 04/24/2019
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: 04/24/201
Slide 12: The Network
The Network 2018 Results Agents $4.6 billion in revenue Approx. 1,300 2.1 million loadings 608 million dollar agents 10,599 BCO trucks (2018 year-end) Landstar 59,054 Carriers (2018 year-end) Employees 16,000+ Trailers (2018 year-end) Approx. 1,200 Capacity Customers 68,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 1Q18 1Q19 Truck Transportation Truckload Van equipment 63% 60% Unsided/platform equipment 29% 30% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 2% 3% 5 Date Published: 04/24/2019
Slide 14: Revenue
Revenue ($’s in thousands) Quarter Quarter Qtr over Prior Yr Qtr Rate (1) Volume (2) Change Truck Revenue - 5.0% 2.5% - 2.7% Rail Intermodal Revenue 9.2% - 6.2% 2.5% Ocean/Air Revenue 10.1% 18.6% 30.6% Insurance Premiums NA NA 14.3% Total Revenue - 1.4% (1) Percentage change in rate is calculated on
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 $1,500 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1Q16 2Q16 3Q16 4
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 1Q18 1Q19 Growth Consumer Durables 23.5 24.8 4% Machinery 14.0 13.6 -4% Automotive 8.4 8.6 1% Building Products 8.5 8.4 -3% Metals 6.4 6.3 -3% AA&E, Hazmat 8.9 8.7 -4% Foodstuffs 6.0 4.0 -34% Energy 2.3 2.4 4% Other 21.9 23
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter Quarter (3) Changes in gross profit margin % 2018 Period 14.8 Revenue - fixed gp margin 0.1 Revenue - variable gp margin 0.4 14.8% 15.1% Change in mix and other -0.2 2019 Period 15.1 (1) Gross profit equals revenue less the cost
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Quarter Quarter Changes in operating margin % 2018 Period 48.3 Other operating costs -0.4 Insurance and claims 1.7 SG&A 2.6 48.3% 52.0% Depreciation and amortization -0.2 2019 Period 52.0 (1) Operating margin equals operating income divide
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Mar 31, Dec 29, Mar 30, (2) (2) 2018 2018 2019 BCO Independent Contractors 9,243 9,884 9,911 Truck Brokerage Carriers: (1) Approved and Active 34,659 41,069 40,404 Other Approved 15,687 17,985 18,659 50,346 59,054 59,063 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) QTR QTR Mar 31, Mar 30, 2018 2019 Balance sheet (period end amounts) : Debt to Capital 14% 14% Net Cash (1) $ 146,338 $ 188,153 Cash flow: Cash flow from operations $ 72,002 $ 121,416 Capital expenditures $ 3,814 $ 4,576 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 urch ases Dividends Paid Co mmon Share Cou nt First quarter 2019 (000's)
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 04/24/2019