Landstar System, Inc. (NASDAQ: LSTR) reported revenue of $1.975
billion in the 2022 second quarter, a 26 percent increase over
revenue of $1.571 billion in the 2021 second quarter; quarterly net
income of $112.6 million, an increase of 22 percent over net income
of $92.3 million in the 2021 second quarter; and quarterly diluted
earnings per share (“DEPS”) of $3.05, an increase of 27 percent
compared to $2.40 in the 2021 second quarter. 2022 second quarter
revenue, net income and DEPS each established new all-time second
quarter records for Landstar.
Gross profit in the 2022 second quarter was
$208.1 million, a second quarter record and 19 percent above 2021
second quarter gross profit of $174.8 million. Variable
contribution (defined as revenue less the cost of purchased
transportation and commissions to agents) in the 2022 second
quarter also reached a second quarter record of $267.5 million, 21
percent above 2021 second quarter variable contribution of $220.8
million. A reconciliation of gross profit to variable contribution
and gross profit margin to variable contribution margin for the
2022 and 2021 second quarters and year-to-date periods is provided
in the Company’s accompanying financial disclosures.
Trailing twelve month return on average
shareholders’ equity was 52 percent and return on invested capital,
representing net income divided by the sum of average equity plus
average debt, was 46 percent. Landstar continues to return
significant amounts of capital to stockholders through the
Company’s stock purchase program and dividends. During the 2022
second quarter, Landstar purchased approximately 703,000 shares of
its common stock at an aggregate cost of $103.3 million, bringing
the total number of common shares purchased during the twenty-six
weeks ended June 25, 2022 to 1,397,000 shares at an aggregate cost
of approximately $212.6 million. The Company is currently
authorized to purchase up to an additional 1,603,239 shares of the
Company’s common stock under its previously announced share
purchase program.
Landstar announced today that its Board of
Directors has declared a quarterly dividend of $0.30 per share
payable on August 26, 2022, to stockholders of record as of the
close of business on August 8, 2022. This quarterly dividend
includes a $0.05 per share increase, or 20 percent, over the amount
of the Company’s regular quarterly dividend declared following each
of the prior four quarters. The $0.05 per share increase is the
largest increase in the Company’s regularly scheduled quarterly
dividend in the Company’s history. It is currently the intention of
the Board to pay dividends on a quarterly basis going forward.
Also, as previously disclosed in a Form 8-K
filed with the SEC on July 8, 2022, Landstar entered into a Second
Amended and Restated Credit Agreement, dated July 1, 2022, with a
bank syndicate led by J.P. Morgan Chase that, among other things,
extended the termination date of the credit facility to July 2027,
and increased the size of the facility from $250 million to $300
million (with an “accordion” feature providing for possible
increase up to an aggregate amount of $600 million). As of June 25,
2022, Landstar had no outstanding borrowings under its revolving
credit facility.
Truck transportation revenue hauled by
independent business capacity owners (“BCOs”) and truck brokerage
carriers in the 2022 second quarter was $1,747.2 million, or 88
percent of revenue, compared to $1,444.2 million, or 92 percent of
revenue, in the 2021 second quarter. Truckload transportation
revenue hauled via van equipment in the 2022 second quarter was
$1,026.9 million, compared to $854.5 million in the 2021 second
quarter, an increase of 20 percent. Truckload transportation
revenue hauled via unsided/platform equipment in the 2022 second
quarter was $474.3 million, compared to $391.9 million in the 2021
second quarter, an increase of 21 percent. Revenue from other truck
transportation, which is largely related to power-only services, in
the 2022 second quarter was $209.1 million, compared
to $168.7 million in the 2021 second quarter, an increase
of 24 percent. Revenue hauled by rail, air and ocean cargo carriers
was $202.3 million, or 10 percent of revenue, in the 2022 second
quarter, compared to $104.6 million, or 7 percent of revenue, in
the 2021 second quarter, an increase of 93 percent.
“Customer demand for our freight transportation
services remained strong during the 2022 second quarter,” said
Landstar President and CEO Jim Gattoni. “The number of loads hauled
via truck in the 2022 second quarter increased 10 percent over the
2021 second quarter. Although slightly below the low end of our
second quarter 2022 guidance issued in our 2022 first quarter
earnings release on April 20, 2022, truck load volume growth
continued to be impressive given tough year-over-year comparisons
and an overall shift of consumer spending from goods to services.
Similarly, revenue per truck load in the 2022 second quarter was 10
percent above the 2021 second quarter and remained very strong
compared to historical levels. Revenue per load on loads hauled via
truck also came in below our April 20 second quarter guidance,
mostly due to a deceleration in the rate of year-over-year growth
beginning in May. Truck revenue per load decreased approximately 4
percent sequentially from April to May, which was not anticipated
in the 2022 second quarter guidance. It should also be noted that
the year-over-year increase in revenue per truck load was partly
impacted by a 6 percent decrease in the average length of haul in
the 2022 second quarter compared to the 2021 second quarter.”
Gattoni continued, “Landstar’s business model
continued to perform well during the 2022 second quarter. The
Company achieved a 27 percent increase in DEPS on a 26 percent
increase in revenue, in both cases as compared to the 2021 second
quarter. DEPS was 5 percent below the low-end of the second quarter
guidance we provided on April 20, 2022. In addition to the impact
of the shortfalls versus expectations in truck loads and revenue
per load discussed above, Landstar also experienced higher than
expected insurance and claims cost of 4.9 percent of BCO revenue in
the 2022 second quarter, driven mostly by two tragic vehicular
accidents that occurred during the quarter.”
Gattoni further commented, “There is a lot of
unease regarding U.S. economic conditions as we head into the third
quarter. On a macroeconomic level, the record low level of consumer
confidence and high level of inflation being reported along with
possible further action by the Federal Reserve to address inflation
at the risk of causing further recessionary pressure all add
significant uncertainty to the performance of the overall domestic
freight environment. Additionally, comparisons to prior year
results become more challenging for Landstar as we move through the
back half of 2022, given the strength our business experienced
during the back half of fiscal year 2021. Historically, in most
years truck revenue per load in July has slightly exceeded that of
June. Through the first several weeks of July, overall truck
revenue per load has been fairly consistent with the truck revenue
per load we experienced in fiscal May and June 2022. Given the
current operating environment, I view Landstar’s relatively stable
revenue per load since May as a positive. Given this backdrop and
recent revenue trends, I expect truck revenue per load in the 2022
third quarter to be essentially equal to that of the 2021 third
quarter and the number of loads hauled via truck to increase over
the 2021 third quarter in a range of 3 percent to 5 percent. As
such, I anticipate revenue for the 2022 third quarter to be in a
range of $1.80 billion to $1.85 billion.”
Gattoni concluded, “Based on the range of
revenue estimated for the 2022 third quarter, I would anticipate
DEPS to be in a range of $2.75 to $2.85. This range of DEPS
includes insurance and claims expense estimated at 4.2 percent of
BCO revenue.”
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 the Company’s website at
www.landstar.com; click on “Investor Relations” and “Webcasts,”
then click on “Landstar’s Second Quarter 2022 Earnings Release
Conference Call.”
About Landstar:Landstar System,
Inc., 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 employees. Landstar transportation services
companies are certified to ISO 9001:2015 quality management system
standards and RC14001:2015 environmental, health, safety and
security management system standards. Landstar System, Inc. is
headquartered in Jacksonville, Florida. Its common stock trades on
The NASDAQ Stock Market® under the symbol LSTR.
Non-GAAP Financial Measures: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 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 providers and
independent agents in order to provide services to our customers.
The Company also believes that it is appropriate to present each of
the financial measures that may be deemed a non-GAAP financial
measure, as referred to above, for the following reasons: (1)
disclosure of these matters will allow investors to better
understand the underlying trends in the Company’s financial
condition and results of operations; (2) this information will
facilitate comparisons by investors of the 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 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 statements
which relate to Landstar’s business objectives, plans, strategies
and expectations. Terms such as “anticipates,” “believes,”
“estimates,” “intention,” “expects,” “plans,” “predicts,” “may,”
“should,” “could,” “will,” the negative thereof and similar
expressions are intended to identify forward-looking statements.
Such statements are by nature subject to uncertainties and risks,
including but not limited to: the impact of the Russian conflict
with Ukraine on the operations of certain independent commission
sales agents, including the Company’s largest such agent by revenue
in the 2021 fiscal year; the impact of the coronavirus (COVID-19)
pandemic; an increase in the frequency or severity of accidents or
other claims; unfavorable development of existing accident claims;
dependence on third party insurance companies; dependence on
independent commission sales agents; dependence on third party
capacity providers; decreased demand for transportation services;
U.S. trade relationships; substantial industry competition;
disruptions or failures in the Company’s computer systems; cyber
and other information security incidents; dependence on key
vendors; changes in fuel taxes; status of independent contractors;
regulatory and legislative changes; 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 2021 fiscal year,
described in Item 1A Risk Factors, Landstar’s Form 10-Q for the
2022 first fiscal quarter, 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 anticipated. Investors
should not place undue reliance on such forward-looking statements,
and the Company undertakes no obligation to publicly update or
revise any forward-looking statements.
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Landstar
System, Inc. and Subsidiary |
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Consolidated
Statements of Income |
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(Dollars in
thousands, except per share amounts) |
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(Unaudited) |
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Twenty Six Weeks Ended |
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Thirteen Weeks Ended |
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June 25, |
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June 26, |
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June 25, |
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June 26, |
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|
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|
2022 |
|
2021 |
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2022 |
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2021 |
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Revenue |
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$ |
3,945,663 |
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$ |
2,858,252 |
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$ |
1,975,064 |
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$ |
1,570,718 |
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Investment income |
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|
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1,307 |
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1,432 |
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586 |
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748 |
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Costs and expenses: |
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Purchased transportation |
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3,096,018 |
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2,226,526 |
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1,545,688 |
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1,228,241 |
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Commissions to agents |
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311,634 |
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221,702 |
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161,856 |
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121,693 |
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Other operating costs, net of gains on asset
sales/dispositions |
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21,522 |
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16,545 |
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|
10,381 |
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|
8,903 |
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Insurance and claims |
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64,820 |
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45,629 |
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34,052 |
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24,124 |
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Selling, general and administrative |
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111,680 |
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99,522 |
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58,967 |
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54,114 |
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Depreciation and amortization |
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28,045 |
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24,244 |
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14,288 |
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12,143 |
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Total costs and expenses |
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3,633,719 |
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2,634,168 |
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1,825,232 |
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|
1,449,218 |
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Operating income |
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313,251 |
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225,516 |
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|
150,418 |
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|
122,248 |
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Interest and debt expense |
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|
2,228 |
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|
2,009 |
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|
1,105 |
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967 |
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Income before income taxes |
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311,023 |
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223,507 |
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|
149,313 |
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|
121,281 |
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Income taxes |
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73,629 |
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53,973 |
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36,758 |
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28,987 |
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Net income |
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$ |
237,394 |
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$ |
169,534 |
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$ |
112,555 |
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$ |
92,294 |
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Diluted earnings per share |
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$ |
6.39 |
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$ |
4.41 |
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$ |
3.05 |
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$ |
2.40 |
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Average diluted shares outstanding |
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37,162,000 |
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38,403,000 |
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36,905,000 |
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38,402,000 |
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Dividends per common share |
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$ |
0.50 |
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$ |
0.42 |
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$ |
0.25 |
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$ |
0.21 |
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Landstar
System, Inc. and Subsidiary |
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Consolidated
Balance Sheets |
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(Dollars in
thousands, except per share amounts) |
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(Unaudited) |
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June 25, |
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December 25, |
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2022 |
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2021 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
78,220 |
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$ |
215,522 |
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Short-term investments |
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41,549 |
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35,778 |
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Trade accounts receivable, less allowance |
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of $9,940 and $7,074 |
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1,216,518 |
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1,154,314 |
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Other receivables, including advances to independent |
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contractors, less allowance of $9,856 and $8,125 |
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114,794 |
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|
101,124 |
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Other current assets |
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|
54,190 |
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|
|
16,162 |
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Total current assets |
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1,505,271 |
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1,522,900 |
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Operating property, less accumulated depreciation and
amortization of $369,344 and $344,099 |
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314,191 |
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317,386 |
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Goodwill |
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40,977 |
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40,768 |
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Other assets |
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156,628 |
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|
164,411 |
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Total assets |
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$ |
2,017,067 |
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$ |
2,045,465 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Cash overdraft |
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$ |
113,603 |
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$ |
116,478 |
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Accounts payable |
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670,534 |
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604,130 |
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Current maturities of long-term debt |
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36,827 |
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36,561 |
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Insurance claims |
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53,971 |
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|
46,896 |
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Dividends payable |
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- |
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|
75,387 |
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Other current liabilities |
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|
102,956 |
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|
130,531 |
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Total current liabilities |
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977,891 |
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|
1,009,983 |
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Long-term debt, excluding current maturities |
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73,999 |
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|
75,243 |
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Insurance claims |
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|
53,303 |
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|
49,509 |
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Deferred income taxes and other non-current liabilities |
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55,004 |
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|
48,720 |
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Shareholders' equity: |
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Common stock, $0.01 par value, authorized 160,000,000 |
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shares, issued 68,376,934 and 68,232,975 |
|
684 |
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|
682 |
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Additional paid-in capital |
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|
252,045 |
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|
255,148 |
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Retained earnings |
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|
2,535,997 |
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|
2,317,184 |
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Cost of 31,946,616 and 30,539,235 shares of common |
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stock in treasury |
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(1,919,535 |
) |
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|
(1,705,601 |
) |
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Accumulated other comprehensive loss |
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(12,321 |
) |
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|
(5,403 |
) |
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Total shareholders' equity |
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|
856,870 |
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|
862,010 |
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Total liabilities and shareholders' equity |
$ |
2,017,067 |
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$ |
2,045,465 |
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Landstar
System, Inc. and Subsidiary |
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Supplemental
Information |
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(Unaudited) |
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Twenty Six Weeks Ended |
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Thirteen Weeks Ended |
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June 25, |
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June 26, |
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June 25, |
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June 26, |
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2022 |
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|
2021 |
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2022 |
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|
2021 |
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Revenue generated through (in thousands): |
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Truck transportation |
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Truckload: |
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Van
equipment |
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$ |
2,108,143 |
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$ |
1,583,911 |
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$ |
1,026,938 |
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$ |
854,509 |
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Unsided/platform equipment |
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|
883,032 |
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|
689,378 |
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|
474,274 |
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|
391,893 |
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Less-than-truckload |
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|
70,651 |
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|
54,732 |
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|
36,931 |
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|
29,062 |
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Other truck transportation (1) |
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|
436,656 |
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|
|
309,655 |
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|
|
|
209,055 |
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|
|
168,723 |
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Total truck
transportation |
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|
3,498,482 |
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|
|
2,637,676 |
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|
|
|
1,747,198 |
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|
|
1,444,187 |
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Rail intermodal |
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|
86,110 |
|
|
|
76,068 |
|
|
|
|
43,422 |
|
|
|
44,360 |
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Ocean and air cargo carriers |
|
|
310,904 |
|
|
|
107,840 |
|
|
|
|
158,847 |
|
|
|
60,240 |
|
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Other (2) |
|
|
50,167 |
|
|
|
36,668 |
|
|
|
|
25,597 |
|
|
|
21,931 |
|
|
|
|
|
|
$ |
3,945,663 |
|
|
$ |
2,858,252 |
|
|
|
$ |
1,975,064 |
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|
$ |
1,570,718 |
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|
|
|
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Revenue on loads hauled via BCO Independent
Contractors (3) |
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|
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|
|
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|
|
included in total truck transportation |
|
$ |
1,415,963 |
|
|
$ |
1,209,056 |
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|
|
$ |
688,389 |
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|
$ |
648,942 |
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|
|
|
Number of loads: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
|
763,750 |
|
|
|
678,253 |
|
|
|
|
387,482 |
|
|
|
357,041 |
|
|
|
|
Unsided/platform equipment |
|
|
279,345 |
|
|
|
248,262 |
|
|
|
|
147,516 |
|
|
|
133,999 |
|
|
|
Less-than-truckload |
|
|
96,828 |
|
|
|
85,095 |
|
|
|
|
48,985 |
|
|
|
44,403 |
|
|
|
Other truck transportation (1) |
|
|
166,747 |
|
|
|
127,160 |
|
|
|
|
80,817 |
|
|
|
67,497 |
|
|
|
|
Total truck
transportation |
|
|
1,306,670 |
|
|
|
1,138,770 |
|
|
|
|
664,800 |
|
|
|
602,940 |
|
|
Rail intermodal |
|
|
24,220 |
|
|
|
26,800 |
|
|
|
|
11,590 |
|
|
|
15,100 |
|
|
Ocean and air cargo carriers |
|
|
22,890 |
|
|
|
19,460 |
|
|
|
|
11,330 |
|
|
|
10,230 |
|
|
|
|
|
|
|
1,353,780 |
|
|
|
1,185,030 |
|
|
|
|
687,720 |
|
|
|
628,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loads hauled via BCO Independent Contractors
(3) |
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
|
527,830 |
|
|
|
510,150 |
|
|
|
|
265,590 |
|
|
|
264,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
$ |
2,760 |
|
|
$ |
2,335 |
|
|
|
$ |
2,650 |
|
|
$ |
2,393 |
|
|
|
|
Unsided/platform equipment |
|
|
3,161 |
|
|
|
2,777 |
|
|
|
|
3,215 |
|
|
|
2,925 |
|
|
|
Less-than-truckload |
|
|
730 |
|
|
|
643 |
|
|
|
|
754 |
|
|
|
655 |
|
|
|
Other truck transportation (1) |
|
|
2,619 |
|
|
|
2,435 |
|
|
|
|
2,587 |
|
|
|
2,500 |
|
|
|
|
Total truck
transportation |
|
|
2,677 |
|
|
|
2,316 |
|
|
|
|
2,628 |
|
|
|
2,395 |
|
|
Rail intermodal |
|
|
3,555 |
|
|
|
2,838 |
|
|
|
|
3,747 |
|
|
|
2,938 |
|
|
Ocean and air cargo carriers |
|
|
13,583 |
|
|
|
5,542 |
|
|
|
|
14,020 |
|
|
|
5,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load on loads hauled via BCO
Independent Contractors (3) |
|
$ |
2,683 |
|
|
$ |
2,370 |
|
|
|
$ |
2,592 |
|
|
$ |
2,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by capacity type (as a % of total revenue): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck capacity providers: |
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
36 |
% |
|
|
42 |
% |
|
|
|
35 |
% |
|
|
41 |
% |
|
|
Truck Brokerage Carriers |
|
|
53 |
% |
|
|
50 |
% |
|
|
|
54 |
% |
|
|
51 |
% |
|
Rail intermodal |
|
|
2 |
% |
|
|
3 |
% |
|
|
|
2 |
% |
|
|
3 |
% |
|
Ocean and air cargo carriers |
|
|
8 |
% |
|
|
4 |
% |
|
|
|
8 |
% |
|
|
4 |
% |
|
Other |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 25, |
|
June 26, |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
Truck Capacity Providers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
|
|
|
|
|
11,023 |
|
|
|
10,778 |
|
|
Truck Brokerage Carriers: |
|
|
|
|
|
|
|
|
|
|
Approved and active (4) |
|
|
|
|
|
|
|
70,649 |
|
|
|
53,891 |
|
|
Other approved |
|
|
|
|
|
|
|
29,454 |
|
|
|
24,098 |
|
|
|
|
|
|
|
|
|
|
|
|
100,103 |
|
|
|
77,989 |
|
|
Total available truck capacity providers |
|
|
|
|
|
|
|
111,126 |
|
|
|
88,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trucks provided by BCO Independent Contractors
(3) |
|
|
|
|
|
|
|
11,887 |
|
|
|
11,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
power-only, expedited, straight truck, cargo van, and miscellaneous
other truck transportation revenue generated by the transportation
logistics segment. Power-only refers to shipments where the
Company furnishes a power unit and an operator but not trailing
equipment, which is typically provided by the shipper or
consignee. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes primarily
reinsurance premium revenue generated by the insurance segment and
intra-Mexico transportation services revenue generated
by Landstar Metro. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) BCO Independent
Contractors are independent contractors who provide truck capacity
to the Company under exclusive lease arrangements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Active refers to
Truck Brokerage Carriers who moved at least one load in the 180
days immediately preceding the fiscal quarter end. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
|
|
|
Reconciliation of Gross Profit to Variable
Contribution |
|
|
|
(Dollars in
thousands) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty Six Weeks Ended |
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
|
June 25, |
|
June 26, |
|
June 25, |
|
June 26, |
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
3,945,663 |
|
|
$ |
2,858,252 |
|
|
$ |
1,975,064 |
|
|
$ |
1,570,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
3,096,018 |
|
|
|
2,226,526 |
|
|
|
1,545,688 |
|
|
|
1,228,241 |
|
|
|
|
|
|
Commissions to agents |
|
|
311,634 |
|
|
|
221,702 |
|
|
|
161,856 |
|
|
|
121,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable costs of revenue |
|
|
3,407,652 |
|
|
|
2,448,228 |
|
|
|
1,707,544 |
|
|
|
1,349,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing equipment depreciation |
|
|
18,363 |
|
|
|
17,747 |
|
|
|
9,280 |
|
|
|
8,840 |
|
|
|
|
|
|
Information technology costs (1) |
|
|
9,039 |
|
|
|
6,084 |
|
|
|
4,993 |
|
|
|
3,146 |
|
|
|
|
|
|
Insurance-related costs (2) |
|
|
66,441 |
|
|
|
47,673 |
|
|
|
34,786 |
|
|
|
25,051 |
|
|
|
|
|
|
Other operating costs |
|
|
21,522 |
|
|
|
16,545 |
|
|
|
10,381 |
|
|
|
8,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs of revenue |
|
|
115,365 |
|
|
|
88,049 |
|
|
|
59,440 |
|
|
|
45,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs of revenue |
|
|
3,523,017 |
|
|
|
2,536,277 |
|
|
|
1,766,984 |
|
|
|
1,395,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
$ |
422,646 |
|
|
$ |
321,975 |
|
|
$ |
208,080 |
|
|
$ |
174,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
|
|
10.7 |
% |
|
|
11.3 |
% |
|
|
10.5 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: other costs of revenue |
|
|
115,365 |
|
|
|
88,049 |
|
|
|
59,440 |
|
|
|
45,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution |
|
|
$ |
538,011 |
|
|
$ |
410,024 |
|
|
$ |
267,520 |
|
|
$ |
220,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution margin |
|
|
13.6 |
% |
|
|
14.3 |
% |
|
|
13.5 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Includes costs of
revenue incurred related to internally developed software including
ASC 350-40 amortization, implementation costs, hosting costs
and other support costs utilized to support the Company's
independent commission sales agents, third party capacity
providers, and customers, included as a portion of depreciation and
amortization and of selling, general and administrative in the
Company's Consolidated Statements of Income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Primarily includes (i)
insurance premiums paid for commercial auto liability, general
liability, cargo and other lines of coverage related to the
transportation of freight; (ii) the related cost of claims
incurred under those programs; and (iii) brokerage commissions and
other fees incurred relating to the administration of
insurance programs available to BCO Independent Contractors that
are reinsured by the Company, which are included in selling,
general and administrative in the Company's Consolidated
Statements of Income. |
|
|
|
|
|
Contacts: Jim Gattoni (CEO)Jim Todd (CFO)Landstar System,
Inc.www.landstar.com904-398-9400
Landstar System (NASDAQ:LSTR)
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From Jul 2023 to Jul 2024