Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q3 2019 Earnings Presentation
22 slides from Landstar System's earnings presentation, Oct 23, 2019
Slide 1: Landstar System Reports Third Quarter Revenue of $1.012 Billion
For Immediate Release Contact: Kevin Stout Landstar System, Inc. www.landstar.com October 23, 2019 904-398-9400 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $1.012 BILLION AND DILUTED EARNINGS PER SHARE OF $1.35 Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings pe
Slide 2: Press release continued: buybacks, dividend and CEO commentary
LANDSTAR SYSTEM/2 sum of average equity plus average debt, was 29 percent. Landstar purchased approximately 175,000 shares of its common stock during the 2019 third quarter at an aggregate cost of approximately $18.8 million. Currently, the Company is authorized to purchase up to approximately 1,151
Slide 3: Fourth quarter outlook and guidance
LANDSTAR SYSTEM/3 per diluted share provided on July 24, 2019. Revenue in the 2019 third quarter was at the low end of our previously issued guidance while diluted earnings per share fell far below our guidance, mostly due to higher insurance and claims costs than we anticipated in our initial estim
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: About Landstar System, Inc.
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) Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Revenue $ 3,089,698 $ 3,432,7
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) September 28, December 29, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 284,434 $ 199,736 Short-term investments 31,596 40,058 Trade account
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 9: Earnings Conference Call Third Quarter 2019
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2019 October 23, 2019 Date Published: 10/23/2019
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: 10/23/201
Slide 12: The Network
The Network 2018 Results Agents $4.6 billion in revenue Approx. 1,300 2.1 million loadings 608 million dollar agents 10,599 BCO trucks (2018 year-end) Landstar 59,054 Carriers (2018 year-end) Employees 16,000+ Trailers (2018 year-end) Approx. 1,200 Capacity Customers 68,000+ 25,000+ 4 Date Published
Slide 13: Transportation Management Services
Transportation Management Services Percentage of Revenue 3Q18 3Q19 Truck Transportation Truckload Van equipment 60% 57% Unsided/platform equipment 31% 33% Less-than-truckload 2% 3% Rail intermodal 3% 3% Ocean and air cargo 3% 3% 5 Date Published: 10/23/2019
Slide 14: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $3,700,000 $1,250,000 $3,600,000 $1,202,081 $3,432,793 $3,500,000 $1,170,000 $3,400,000 $3,300,000 $3,089,698 $1,090,000 $3,200,000 $1,011,658 $3,100,000 $1,010,000 $3,000,000 $2,900,000 $930,000 $2,800,000 $2,700,000 $850,000 3Q18 YTD 3Q19 YTD 3Q18 3Q
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 $1,500 1Q18 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2Q18 3Q16 4Q16 1
Slide 16: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 3Q18 3Q19 Change in Revenue Consumer Durables 23.2 24.6 -11% Machinery 14.3 14.9 -13% Automotive 8.3 7.0 -29% Building Products 8.7 9.1 -11% Metals 6.7 5.8 -27% AA&E, Hazmat 8.4 8.9 -12% Foodstuffs 5.5 4.2 -36% Energy 2.8 3
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $520,000 $190,000 $498,255 $500,000 $180,000 $171,304 $480,000 $170,000 $466,190 $460,000 $160,000 14.5% 14.3% $152,570 $440,000 15.1% $150,000 15.1% $420,000 $140,000 3Q18 YTD 3Q19 YTD 3Q18 3Q19 3rd Qtr YTD (3) 3rd
Slide 18: Operating Income and Operating Margin
Operating Income and Operating Margin (1) ($’s in thousands) Year-to-Date Quarter $260,000 $100,000 $245,647 $87,068 $245,000 $90,000 $232,385 $230,000 $80,000 50.8% 49.3% $70,638 $215,000 $70,000 49.8% 48.4% 46.3% 4 $200,000 $60,000 3Q18 YTD 3Q19 YTD 3Q18 3Q19 3rd Qtr YTD 3rd Qtr Changes in operati
Slide 19: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the period) Sep 29, Dec 29, Sep 28, 2018 (2) 2018 2019 (2) BCO Independent Contractors 9,751 9,884 9,738 Truck Brokerage Carriers: Approved and Active (1) 40,151 41,069 39,963 Other Approved 16,803 17,985 16,984 56,954 59,054 56,947 T
Slide 20: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Sep 29, Sep 28, 2018 2019 Balance sheet (period end amounts): Debt to Capital 14% 12% Net Cash (1) $ 140,330 $ 215,265 Cash flow: Cash flow from operations $ 204,205 $ 260,714 Capital expenditures $ 7,325 $ 15,199 Share repurchase
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 Thi rd quarter 2019 YTD (000'
Slide 22: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 14 Date Published: 10/23/2019