Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q1 2024 Earnings Presentation
30 slides from Landstar System's earnings presentation, Apr 25, 2024
Slide 1: Landstar System Reports First Quarter Revenue of $1.171B and EPS of $1.32
For Immediate Release April 24, 2024 LANDSTAR SYSTEM REPORTS FIRST QUARTER REVENUE OF $1.171B AND EARNINGS PER SHARE OF $1.32 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.32 in the 2024 first q
Slide 2: Truck transportation revenue and gross profit discussion
LANDSTAR SYSTEM/2 Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2024 first quarter was $1,068.9 million, or 91% of revenue, compared to $1,323.7 million, or 92% of revenue, in the 2023 first quarter. Truckload transportation
Slide 3: About Landstar and non-GAAP measures
LANDSTAR SYSTEM/3 Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s First Quarter 2024 Earnings Release Confe
Slide 4: Forward Looking Statements Disclaimer
LANDSTAR SYSTEM/4 Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making. Forward Looking Statements Disclaimer: The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 19
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 30, April 1, 2024 2023 Revenue $ 1,171,043 $ 1,435,675 Investment income 3,412 1,368 Costs and expenses: Purchased transpor
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 30, December 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 467,671 $ 481,043 Short-term investments 62,781 59,661 Trade accounts re
Slide 7: Supplemental Information
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirteen Weeks Ended March 30, April 1, 2024 2023 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 628,304 $ 755,083 Unsided/platform equipment 343,045 377,564 Less-th
Slide 8: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) 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
Slide 9: Landstar System, Inc. 1Q 2024 Earnings Conference Call
Landstar System, Inc. 1Q 2024 Earnings Conference Call Date
Slide 10: 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 11: 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 12: Executive Summary
1Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 13: CEO Perspective: Results Highlights
CEO Perspective Slide header RESULTS HIGHLIGHTS Dollars in Millions (except per share amounts) ⚫ 1Q revenue performance Metric 1Q 2024 1Q 2023 Chg. stronger than anticipated Revenue $ 1,171.0 $ 1,435.7 (18.4%) ⚫ Balance sheet continues to be very strong Operating Income $ 60.0 $ 101.3 (40.8%) ⚫ Cont
Slide 14: Landstar Network and 1Q Operating Results
Landstar Network and 1Q Operating Results LANDSTAR NETWORK 1Q R E S U L T S Agents Customers $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 0.52 DOT Accidents per Million Miles** Capacity E
Slide 15: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period AVAILABLE TRUCK CAPACITY PROVIDERS Type of Capacity Mar 30, 2024 Dec 30, 2023 Apr 1, 2023 BCO Independent Contractors 8,619 9,024 9,996 Truck Brokerage Carriers Approved and Active (1) 45,919 49,111 61,771 Other Approv
Slide 16: Financial Results
1Q 2024 Financial Results Jim Todd Chief Financial Officer 8
Slide 17: Revenue
Revenue Slide header Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) 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%) 1Q 2024 1Q 2023 Total Revenue — — (18.4%) (1) Percen
Slide 18: 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 19: Gross Profit and Variable Contribution
Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 1Q Profit Contribution 2023 14.5 $208.7 $168.2 Revenue – Fixed (3) 0.0 $152.9 $113.9 Revenue – Variable (0.5) Change in Mix/Other 0.4 9.7% 10.7% 14.4% 14
Slide 20: 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 RESULTS CHANGE IN PERCENTAGE of Variable Contribution Operating Percentage of Amounts in % 1Q Income Gross Profit Variable Contribution 2023 48.5) $101.3 66.2% 52.6% Other operating costs (2.9
Slide 21: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics Dollars in Millions N E T C A S H (1) SOURCES / USES OF CASH with Debt to Capital (2) as of date indicated Cash Flow Type 1Q 2024 1Q 2023 Cash flow from operations $ 94.2 $ 139.0 $465.2 Capital expenditures $ 9.3 $ 6.2 Free cash flow (3) $ 84.9 $ 132.8 Shar
Slide 22: 2Q Guidance & Closing Remarks
1Q 2024 2Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 23: 2Q Guidance
2Q Guidance Slide header Consolidated Revenue of $1.2 - $1.3 billion – Truck Loads 5% — 9% below prior year – Truck Revenue per Load 0% — 4% below prior year 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 24: Appendix
1Q 2024 Appendix 16
Slide 25: 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% TRUCK TRANSPORTATION TRUCKLOAD Van — 54%, Unsided/Platform — 29% LTL — 2% OTHER TRUCK — 6% RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 5% ALL OTHER — 2% CHANGE
Slide 26: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends VAN UNSIDED / PLATFORM 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 $500 $500 $- $-
Slide 27: 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 28: Free Cash Flow with Stock Purchases and Dividends
Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5–YEAR SUMMARY 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 Common Share Count(1) 39.5 38
Slide 29: DOT Accident Frequency per Million Miles Traveled by BCOs
DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5–YEAR SUMMARY 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 highway in
Slide 30: Landstar System, Inc. 1Q 2024 Earnings Conference Call
Landstar System, Inc. 1Q 2024 Earnings Conference Call Date