Slide 1: Landstar System, Inc. Earnings Conference Call Third Quarter 2022
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Third Quarter 2022 September 24, 2022 Date Published: 10/19/2022
Slide 2: Forward Looking Statements
Forward Looking Statements Disclaimer : The following is a “safe harbor” statement under the Private Securities Litigation ReformActof1995. Statements made in this slide presentation that are not based on historical fact sare “forward looking statements. ”This presentation may make certain statement
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures : In this slide presentation, the Company provides the following information thatmaybe deemed anon-GAAP financial measure: variable contribution, variable contribution marginand operating incomeasa percentage ofvariablecontribution. Management believes variable contributi
Slide 4: Who We Are
Who We Are Landstar, a Fortune 500 company, is a worldwide, technology -enabled, 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
Slide 5: Our Network
Our Network September 24, 2022 YTD Results $5.76 billion in revenue Agents 2.00 million loadings Approx. 1,200 593 million dollar agents (based on 2021 fiscal year) 11,644 BCO trucks 101,429 Carriers Landstar Employees 18,000+ Trailers Approx. 1,300 Capacity Customers 112,000+ 25,000+ 5 Date Publish
Slide 6: Transportation Management Services Percentage of Revenue
Transportation Management Services Percentage of Revenue 3Q21 3Q22 Truck Transportation Truckload Van equipment 53% 50% Unsided/platform equipment 24% 25% Less-than-truckload 2% 2% Other truck transportation 12% 11% Rail intermodal 3% 2% Ocean and air cargo 5% 9% 6 Date Published: 10/19/2022
Slide 7: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter Year over Prior Year Rate (1) Volume (2) Change Qtr over Prior Year Qtr Rate (1) Volume (2) Change Truck Revenue 10.0% 9.9% 20.8% Truck Revenue 0.1% 1.0% 1.1% Rail Intermodal Revenue 19.4% -21.0% -5.6% Rail Intermodal Revenue 9.7% -43.3% -37.8% Ocean/A
Slide 8: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Revenue per Load Number of Loads 400,000 $3,000 370,000 $2,800 340,000 $2,600 $2,400 310,000 $2,200 280,000 $2,000 250,000 $1,800 220,000 $1,600 3Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q22 3Q194Q191Q202Q203Q204Q201Q212Q213Q21
Slide 9: Industries Served As a Percentage of Revenue
Industries Served As a Percentage of Revenue Quarterover Prior Year Quarter 3Q21 3Q22 Changein Revenue Consumer Durables 30.3 28.6 -1% Machinery 11.1 12.1 14% Automotive 6.8 8.7 33% Building Products 8.2 8.5 8% AA&E, Hazmat 8.7 8.4 0% Metals 5.1 4.9 1% Foodstuffs 3.9 3.4 -10% Substitute Line Haul 5.
Slide 10: Gross Profit and Gross Profit Margin
Gross Profit (1)and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter 11.1% 10.6% 10.9% 10.2% (1) Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. (2) Gross profit margin equals gross profit divided by revenue. 10
Slide 11: Variable Contribution and Variable Contribution Margin
Variable Contribution(1)and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date Quarter 14.2% 13.6% 14.0% 13.5% (3) (3) 3rd Qtr YTD 3rd Qtr Changes in variable contribution Changes in variable contribution margin % margin % 2021 Period 14.2 2021 Period 14.0 Revenue - fixed 0.0 Revenue -
Slide 12: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date Quarter 69.8% 73.4% 69.4% 71.9% 12 Date Published: 10/19/2022
Slide 13: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date Quarter 54.7% 57.0% 54.2% 54.3% 3rd Qtr YTD 3rd Qtr Changes in operating income as a % of variable Changes in operating income as a % of variable contribution % contribution % 2021 Period 54.7 2021 Period 54.2 Other ope
Slide 14: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Sep 25, Dec 25, Sep 24, (2) (2) 2021 2021 2022 BCO Independent Contractors 10,955 11,057 10,742 Truck Brokerage Carriers: (1) Approved and Active 58,676 64,476 71,207 Other Approved 24,602 25,870 30,222 83,278 9
Slide 15: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Sep 25, Sep 24, 2021 2022 Balance sheet (period end amounts): Debt to Capital 10% 11% Net Cash (1) $ 169,867 $ 118,963 Cash flow (year-to-date): Cash flow from operations $ 216,990 $ 436,381 Capital expenditures $ 18,561 $ 21,096 Share re
Slide 16: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $350,000 43,000 $300,000 42,000 $250,000 41,000 $200,000 40,000 $150,000 39,000 $100,000 38,000 $50,000 $0 37,000 2017 2018 2019 2020 2021 Free Cash Flow Share Purchases Dividends Paid Common Share Count Third Quarter 2022 YTD (000’s)
Slide 17: Appendix A Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Thirty Nine Weeks Ended Thirteen Weeks Ended September 24, September 25, September 24, September 25, 2022 2021 2022 2021 Revenue $5,761,795 $4,592,551 $ 1,816,132 $1,734,299 Costs of revenue: Purchased transportati
Slide 18: Designed to Respond Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 10/19/2022