Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q3 2024 Earnings Presentation
34 slides from Landstar System's earnings presentation, Oct 29, 2024
Slide 1: Landstar System Reports Third Quarter Revenue of $1.214B and EPS of $1.41
For Immediate Release October 29, 2024 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $1.214B AND EARNINGS PER SHARE OF $1.41 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.41 in the 2024 third
Slide 2: Third quarter revenue, gross profit and variable contribution
LANDSTAR SYSTEM/2 3Q 2024 3Q 2023 Revenue $ 1,213,867 $ 1,289,345 Gross profit $ 112,693 $ 128,079 Variable contribution $ 171,359 $ 187,358 Operating income $ 63,116 $ 80,348 Basic and diluted earnings per share $ 1.41 $ 1.71 (1) Dollars above in thousands, except per share amounts (2) Please refer
Slide 3: Balance sheet, webcast information and about Landstar
LANDSTAR SYSTEM/3 for the 2024 and 2023 third quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures. The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $531 million as of September 28, 2024. Trai
Slide 4: Non-GAAP financial measures
LANDSTAR SYSTEM/4 contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity prov
Slide 5: Forward-looking statements
LANDSTAR SYSTEM/5 uncertainties detailed in Landstar’s Form 10-K for the 2023 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipat
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 30, September 28, September 30, 2024 2023 2024 2023 Revenue $ 3,609,915 $ 4,098,8
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 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 468,830 $ 481,043 Short-term investments 62,451 59,661 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 30, September 28, September 30, 2024 2023 2024 2023 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment
Slide 9: Reconciliation of Gross Profit to Variable Contribution
LANDSTAR SYSTEM/9 Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 28, September 30, September 28, September 30, 2024 2023 2024 2023 Revenue $ 3,609,915 $ 4,098,877 $
Slide 10: Landstar System, Inc. 3Q 2024 Earnings Conference Call
Landstar System, Inc. 3Q 2024 Earnings Conference Call Date
Slide 11: Forward-Looking Statements Disclaimer
3Q 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 12: Non-GAAP Financial Measures
3Q 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 13: Executive Summary - Frank Lonegro
3Q 2024 Executive Summary Frank Lonegro Chief Executive Officer 4
Slide 14: CEO Perspective: Results Highlights
CEO Perspective Slide header RESULTS HIGHLIGHTS Dollars in Millions (except per share amounts) 3Q revenue performance • 3Q 2024 sequential increase in truck revenue per load above typical Metric 3Q 2024 3Q 2023 Chg. seasonality • First year over year increase in truck revenue per load since 3Q 2022
Slide 15: Landstar Network and 3Q Operating Results
Landstar Network and 3Q Operating Results LANDSTAR NETWORK 3Q R E S U L T S Agents Customers Capacity Employees $1.09B Truck Revenue ~1,100 25,000+ 78,000+ ~1,500 486K Truck Loadings $2,246 Truck Revenue per Load 524 Million $ Agents* 9,027 BCO Trucks 70,542 Carriers 17,700+ Trailers 0.56 DOT Accide
Slide 16: Truck Capacity
Truck Capacity All information is provided as of the end of the applicable period AVAILABLE TRUCK CAPACITY PROVIDERS Type of Capacity Sep 28, 2024 Dec 30, 2023 Sep 30, 2023 BCO Independent Contractors 8,266 9,024 9,455 Truck Brokerage Carriers Approved and Active (1) 44,828 49,111 51,717 Other Appro
Slide 17: Financial Results - Jim Todd
3Q 2024 Financial Results Jim Todd Chief Financial Officer 8
Slide 18: Revenue
Revenue Slide header Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $1,289.3 Truck 0.7% (7.7%) (7.0%) $1,213.9 Rail Intermodal (12.7%) 4.1% (9.0%) Ocean/Air 12.7% 2.9%) 16.0% Insurance Premiums N/A N/A (13.5%) 3Q 2024 3Q 2023 Total Revenue — — (5.9%) (1) Percentage change
Slide 19: Revenue Variances by Industry Served
Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent Transportation logistics revenue down 6% Y-O-Y Revenue Share Y-O-Y Change 3Q 2024 3Q 2023 Market Segment in Revenue 28.4 27.7 Consumer Durables (3) 13.8 14.1 Machinery (7) 9.8 8.3 Building Products 11 9.5 11.5 Autom
Slide 20: 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 % 3Q Profit Contribution 2023 14.5 $187.4 $171.4 Revenue – Fixed (3) 0.1 $128.1 $112.7 Revenue – Variable (0.2) Change in Mix/Other (0.3) 9.3% 9.9% 14.1% 1
Slide 21: 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 % 3Q Income Gross Profit Variable Contribution 2023 42.9) $80.3 62.7% 56.0% Other operating costs (0.8)
Slide 22: 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) Year-to-date as of date indicated as of date indicated Cash Flow Type Sep 28, 2024 Sep 30, 2023 Cash flow from operations $ 225.4 $ 303.8 $458.8 Cash capital expenditures
Slide 23: 4Q Guidance & Closing Remarks
3Q 2024 4Q Guidance & Closing Remarks Frank Lonegro Chief Executive Officer 14
Slide 24: 4Q Guidance
4Q Guidance Slide header Consolidated Revenue of $1.150 - $1.250 billion – Truck Loads 4% below to 1% above prior year – Truck Revenue per Load 0% to 4% above prior year Earnings per Share of $1.25 — $1.45 – Insurance Expense to approximate 6.0% of BCO revenue – Effective Income Tax Rate of 24.5
Slide 25: Appendix
3Q 2024 Appendix 16
Slide 26: 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 3Q 2 0 2 4 by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TRUCK TRANSPORTATION TRUCKLOAD Van — 50%, Unsided/Platform — 30% LTL — 2% OTHER TRUCK — 8% RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 6% ALL OTHER — 2% CHANGE
Slide 27: 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 28: Revenue - Year-to-Date
Revenue Slide header– Year-to-Date Dollars in Millions RESULTS VARIANCE Revenue Source Rate (1) Vol. (2) Chg. $4,098.9 Truck (3.2%) (9.9%) (12.8%) $3,609.9 Rail Intermodal (7.7%) (3.3%) (10.8%) Ocean/Air (3.1%) 2.9%) (0.3%) Insurance Premiums N/A N/A (12.9%) 3Q 2024 YTD 3Q 2023 YTD Total Revenue — —
Slide 29: Gross Profit and Variable Contribution - Year-to-Date
Gross Profit and Variable Contribution – Year-to-Date with Associated Margins Dollars in Millions RESULTS CHANGE IN VC MARGIN Gross Variable Amounts in % 3Q YTD Profit Contribution 2023 14.5 $420.7 $594.2 $346.6 $514.7 Revenue – Fixed (1) 0.1 Revenue – Variable (0.4) Change in Mix/Other 0.1 9.6% 10.
Slide 30: Operating Income - Year-to-Date
Operating Income – Year-to-Date 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 % 3Q YTD Income Gross Profit Variable Contribution 2023 45.4) 64.1% $269.6 55.1% Other o
Slide 31: Reconciliation of Gross Profit to Variable Contribution
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 28, Sep 30, Sep 28, Sep 30, 2024 2023 2024 2023 Revenue $ 3,609,915 $ 4,098,877 $ 1,213,867 $ 1,289,345 Costs of revenue: Purchased transportation 2,799,384 3,141,234 943,805
Slide 32: 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 Cash flow from operations $ 308 $ 211 $ 277 $ 623 $ 394 Cash capital expenditures(1) $ 20 $ 34 $ 24 $ 26 $ 26 Free cash flow $ 288 $ 177 $ 253 $ 597 $ 368 Share rep
Slide 33: DOT Accident Frequency
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 34: Landstar System, Inc. 3Q 2024 Earnings Conference Call
Landstar System, Inc. 3Q 2024 Earnings Conference Call Date