Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Q2 2023 Earnings Presentation
27 slides from Landstar System's earnings presentation, Jul 27, 2023
Slide 1: Landstar System Reports Second Quarter Revenue of $1.374B
For Immediate Release Contact: Jim Todd (CFO) Landstar System, Inc. www.landstar.com July 26, 2023 904-398-9400 LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $1.374B AND SECOND QUARTER DILUTED EARNINGS PER SHARE OF $1.85 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the
Slide 2: Release continued: truck transportation revenue and CEO commentary
LANDSTAR SYSTEM/2 dividend declared following each of the prior four quarters. It is currently the intention of the Board to pay dividends on a quarterly basis going forward. Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2023
Slide 3: Third quarter outlook and About Landstar
LANDSTAR SYSTEM/3 Gattoni further commented, “Through the first several weeks of July, the number of loads hauled via truck has trended below historical, pre-pandemic second quarter to the beginning of third quarter sequential patterns, while truck revenue per load has thus far trended slightly belo
Slide 4: Non-GAAP Financial Measures
LANDSTAR SYSTEM/4 In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribut
Slide 5: Forward-looking statements and risks
LANDSTAR SYSTEM/5 regulations focused on diesel emissions and other air quality matters; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2022 fiscal year, described in Item 1A Risk Factors, Landstar’s Form 10-Q for the
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) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2023 2022 2023 2022 Revenue $ 2,809,532 $ 3,945,663 $ 1,373,857 $ 1,975,
Slide 7: Consolidated Balance Sheets
LANDSTAR SYSTEM/7 Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) July 1, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 360,528 $ 339,581 Short-term investments 58,574 53,955 Trade accounts rece
Slide 8: Supplemental Information
LANDSTAR SYSTEM/8 Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2023 2022 2023 2022 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment $ 1,458,124 $ 2,108,14
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) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2023 2022 2023 2022 Revenue $ 2,809,532 $ 3,945,663 $ 1,373,857 $ 1,975,064
Slide 10: Earnings Conference Call Second Quarter 2023
DESIGNED TO RESPOND BUILT TO DELIVER Landstar System, Inc. Earnings Conference Call Second Quarter 2023 July 26, 2023 Date Published: 07/26/2023
Slide 11: Forward Looking Statements Disclaimer
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 stateme
Slide 12: Non-GAAP Financial Measures
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 variable con
Slide 13: 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 14: Our Network
Our Network July 1, 2023 YTD Results $2.81 billion in revenue Agents 1.15 million loadings Approx. 1,200 625 million dollar agents (based on 2022 fiscal year) 10,548 BCO trucks Landstar 87,806 Carriers Employees 18,200+ Trailers Approx. 1,400 Capacity Customers 97,000+ 25,000+ 5 Date Published: 07/2
Slide 15: Transportation Management Services
Transportation Management Services Percentage of Revenue 2Q22 2Q23 Truck Transportation Truckload Van equipment 52% 51% Unsided/platform equipment 24% 29% Less-than-truckload 2% 2% Other truck transportation 11% 9% Rail intermodal 2% 2% Ocean and air cargo 8% 5% 6 Date Published: 07/26/2023
Slide 16: Revenue
Revenue ($’s in thousands) Year-to-Date Quarter $4,200,000 $2,200,000 $3,945,663 $3,900,000 $1,975,064 $2,000,000 $3,600,000 $1,800,000 $3,300,000 $2,809,532 $3,000,000 $1,600,000 $1,373,857 $2,700,000 $1,400,000 $2,400,000 $1,200,000 2Q22 YTD 2Q23 YTD 2Q22 2Q23 ( 1) ( 2) ( 1) ( 2) Year over Prior Y
Slide 17: Truckload Loadings and Revenue per Truckload Trends
Truckload Loadings and Revenue per Truckload Trends Van Equipment Number of Loads Revenue per Load 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 $1,600 3Q19 4Q19 2Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q19
Slide 18: Industries Served
Industries Served As a Percentage of Revenue Quarter over Prior Year Quarter 2Q22 2Q23 Change in Revenue Consumer Durables 29.4 27.1 -36% Machinery 11.5 13.9 -17% Automotive 8.8 12.0 -6% Building Products 8.3 8.5 -29% AA&E, Hazmat 8.1 8.1 -31% Metals 5.1 5.0 -32% Foodstuffs 3.2 2.6 -42% Substitute L
Slide 19: Gross Profit and Gross Profit Margin
Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Year-to-Date Quarter $440,000 $240,000 $422,646 $208,080 $380,000 $200,000 $320,000 $160,000 $292,654 $139,706 10.7% 10.4% 10.5% 10.2% $260,000 $120,000 2Q22 YTD 2Q23 YTD 2Q22 2Q23 (1) Gross profit equals revenue less the cost of purcha
Slide 20: Variable Contribution and Variable Contribution Margin
Variable Contribution(1) and Variable Contribution Margin (2) ($’s in thousands) Year-to-Date Quarter $570,000 $290,000 $538,011 $267,520 $520,000 $260,000 $470,000 $230,000 $406,888 $420,000 $198,182 $200,000 $370,000 13.6% 14.5% 13.5% 14.4% $320,000 $170,000 2Q22 YTD 2Q23 YTD 2Q22 2Q23 2nd Qtr YTD
Slide 21: Operating Income as a % of Gross Profit
Operating Income as a % of Gross Profit ($’s in thousands) Year-to-Date Quarter $313,251 $160,000 $320,000 $150,418 $140,000 $280,000 $120,000 $240,000 $100,000 $87,950 $200,000 $189,234 $80,000 74.1% 64.7% 72.3% 63.0% $160,000 $60,000 2Q22 YTD 2Q23 YTD 2Q22 2Q23 12 Date Published: 07/26/2023
Slide 22: Operating Income as a % of Variable Contribution
Operating Income as a % of Variable Contribution ($’s in thousands) Year-to-Date Quarter $320,000 $313,251 $160,000 $150,418 $280,000 $135,000 $240,000 $110,000 $87,950 $189,234 $200,000 $85,000 58.2% 46.5% 56.2% 44.4% $160,000 $60,000 2Q22 YTD 2Q23 YTD 2Q22 2Q23 2nd Qtr YTD 2nd Qtr Changes in opera
Slide 23: Truck Capacity Data
Truck Capacity Data (All information is provided as of the end of the applicable period) Jun 25, Dec 31, Jul 1, (2) 2022 2022 2023 (2) BCO Independent Contractors 11,023 10,393 9,748 Truck Brokerage Carriers: Approved and Active (1) 70,649 66,745 58,303 Other Approved 29,454 30,999 29,503 100,103 97
Slide 24: Key Balance Sheet and Cash Flow Statistics
Key Balance Sheet and Cash Flow Statistics ($’s in thousands) Jun 25, Jul 1, 2022 2023 Balance sheet (period end amounts): Debt to Capital 11% 8% Net Cash (1) $ 8,943 $ 334,393 Cash flow (year-to-date): Cash flow from operations $ 209,651 $ 191,733 Capital expenditures $ 7,467 $ 12,631 Share repurch
Slide 25: Free Cash Flow, Stock Purchases and Dividends
Free Cash Flow (1) , Stock Purchases and Dividends (In Thousands) $700,000 41,000 $600,000 40,000 $500,000 39,000 $400,000 38,000 $300,000 37,000 $200,000 36,000 $100,000 $0 35,000 2018 2019 2020 2021 2022 Free Cash Flow Share Purchases Dividends Paid Common Share Count Se cond Qua rte r 2023 YTD (0
Slide 26: Appendix A Reconciliation of Gross Profit to Variable Contribution
Appendix A Reconciliation of Gross Profit to Variable Contribution ($’s in thousands) Twenty Six Weeks Ended Thirteen Weeks Ended July 1, June 25, July 1, June 25, 2023 2022 2023 2022 Revenue $ 2,809,532 $ 3,945,663 $ 1,373,857 $ 1,975,064 Costs of revenue: Purchased transportation 2,154,491 3,096,0
Slide 27: Designed to Respond, Built to Deliver
DESIGNED TO RESPOND BUILT TO DELIVER 18 Date Published: 07/26/2023