Landstar System, Inc. (NASDAQ: LSTR) reported revenue of $1.816
billion in the 2022 third quarter, a 5 percent increase over
revenue of $1.734 billion in the 2021 third quarter and quarterly
diluted earnings per share (“DEPS”) of $2.76, an increase of 7
percent compared to $2.58 in the 2021 third quarter. 2022 third
quarter revenue and DEPS each established new all-time third
quarter records for Landstar.
Gross profit in the 2022 third quarter was
$185.7 million, 2 percent below 2021 third quarter gross profit of
$189.2 million. Variable contribution (defined as revenue less the
cost of purchased transportation and commissions to agents) in the
2022 third quarter reached a third quarter record of $245.7
million, 1 percent above 2021 third quarter variable contribution
of $242.3 million. A reconciliation of gross profit to variable
contribution and gross profit margin to variable contribution
margin for the 2022 and 2021 third 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
third quarter, Landstar purchased approximately 504,000 shares of
its common stock at an aggregate cost of $73.3 million, bringing
the total number of common shares purchased during the thirty-nine
weeks ended September 24, 2022 to 1,901,000 shares at an aggregate
cost of approximately $286.0 million. The Company is currently
authorized to purchase up to an additional 1,099,174 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 December 2, 2022, to stockholders of record as of the
close of business on November 8, 2022. 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 2022 third quarter was $1,598.8 million, or 88
percent of revenue, compared to $1,580.7 million, or 91 percent of
revenue, in the 2021 third quarter. Truckload transportation
revenue hauled via van equipment in the 2022 third quarter was
$914.2 million, compared to $918.1 million in the 2021 third
quarter. Truckload transportation revenue hauled via
unsided/platform equipment in the 2022 third quarter was $453.9
million, compared to $423.0 million in the 2021 third quarter, an
increase of 7 percent. Revenue from other truck transportation,
which is largely related to power-only services, in the 2022 third
quarter was $195.3 million, compared to $208.8
million in the 2021 third quarter, a decrease of 6 percent.
Revenue hauled by rail, air and ocean cargo carriers was $191.9
million, or 11 percent of revenue, in the 2022 third quarter,
compared to $128.6 million, or 7 percent of revenue, in the 2021
third quarter, an increase of 49 percent.
“Customer demand for our freight transportation
services was solid in most sectors of our business during the 2022
third quarter,” said Landstar President and CEO Jim Gattoni.
“Overall, the number of loads hauled via truck in the 2022 third
quarter increased 1 percent over the 2021 third quarter, a good
performance given a tough year-over-year comparison. In particular,
demand for unsided/platform services was strong while demand for
van services moderated compared to earlier in 2022. The increase in
the number of truck loads hauled via unsided/platform equipment
together with a modest increase in the number of loads hauled via
van equipment more than offset a decrease in the number of loads
hauled by other truck transportation services. The less robust
growth in the number of truck loads hauled via van equipment and
the decrease in loads hauled by other truck transportation services
was largely attributable to reduced demand from certain parcel and
less-than-truckload carriers for our truckload services, as volumes
from those customers have returned to more normalized levels since
peaking in 2021 and early 2022. Revenue per truck load in the 2022
third quarter was essentially equal to that of the 2021 third
quarter, with strength in revenue per load on truck loads hauled by
unsided/platform equipment being offset by small decreases in
revenue per load on truck loads hauled by van equipment and other
truck transportation services.”
Gattoni further commented, “There continues to
be a lot of unease regarding U.S. economic conditions as we head
into the fourth quarter. On a macroeconomic level, continuing
inflation concerns along with possible further action by the
Federal Reserve to address these concerns at the risk of causing
further recessionary pressure, as well as current geopolitical
tensions and the corresponding volatility in the international
energy markets, add significant uncertainty to the performance of
the overall domestic freight environment. Moreover, high inventory
levels being reported by large retailers corresponds with what we
anticipate will be decreased seasonal demand for freight services
in connection with the 2022 holiday shipping season. Additionally,
comparisons to the 2021 fourth quarter results will be challenging
for Landstar, given the unprecedented strength our business
experienced during the 2021 fourth quarter.”
Gattoni continued, “Through the first several
weeks of October, the number of loads hauled via truck was below
the corresponding period of 2021 in a mid-single-digit percentage
range; and overall truck revenue per load trended reasonably
in-line with historical third to fourth quarter sequential
patterns. However, with expectations of a more muted peak shipping
season and, relatedly, a more challenging demand environment for
loads hauled by van equipment and other truck transportation
services, I expect truck revenue per load to underperform
historical fourth quarter trends in the 2022 fourth quarter, and as
such, to be below the 2021 fourth quarter by 5 to 7 percent. With
respect to volumes, please note that Landstar’s fiscal year ends on
the last Saturday of the calendar year, which this year is December
31, 2022, resulting in fiscal year 2022 representing a 53-week
period. As such, the Company’s 2022 fourth quarter includes an
extra week of operations, during which the Company anticipates it
will haul approximately thirty to forty thousand truck loads.
Taking into account the extra week of operations, I expect the
number of loads hauled via truck to decrease compared to the 2021
fourth quarter by 2 to 4 percent. As such, I anticipate
revenue for the 2022 fourth quarter to be in a range of $1.775
billion to $1.825 billion.”
Gattoni continued, “Based on the range of
revenue estimated for the 2022 fourth quarter, I would anticipate
DEPS to be in a range of $2.60 to $2.70. This range of DEPS
includes insurance and claims expense estimated at 4.5 percent of
BCO revenue.”
Gattoni concluded, “Landstar’s performance
through the first three quarters of 2022 has been outstanding. The
Company’s agent family has continued to execute regardless of a
shifting macroeconomic backdrop. Given the exceptional performance
by Landstar year-to-date plus the revenue and earnings estimates we
have provided for the 2022 fourth quarter, we anticipate
establishing new all-time fiscal year records in 2022 with annual
revenue expected to be in excess of $7.5 billion and DEPS expected
to be in excess of $11.75. Both of these figures would be well
above Landstar’s existing record performance in any year in our
history and would represent remarkable achievements to cap another
tremendous year for the Company, its employees and the thousands of
business owners who participate in the Landstar network.”
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 Third 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-Qs for the
2022 first and second fiscal quarters, 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 |
Consolidated
Statements of Income |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
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|
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|
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|
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 |
Investment income |
|
|
2,023 |
|
|
2,138 |
|
|
716 |
|
|
706 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
4,512,341 |
|
|
3,583,197 |
|
|
1,416,323 |
|
|
1,356,671 |
|
Commissions to agents |
|
|
465,759 |
|
|
356,997 |
|
|
154,125 |
|
|
135,295 |
|
Other operating costs, net of gains on asset
sales/dispositions |
|
|
34,878 |
|
|
27,117 |
|
|
13,356 |
|
|
10,572 |
|
Insurance and claims |
|
|
96,265 |
|
|
75,198 |
|
|
31,445 |
|
|
29,569 |
|
Selling, general and administrative |
|
|
165,199 |
|
|
158,720 |
|
|
53,519 |
|
|
59,198 |
|
Depreciation and amortization |
|
|
42,627 |
|
|
36,532 |
|
|
14,582 |
|
|
12,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
5,317,069 |
|
|
4,237,761 |
|
|
1,683,350 |
|
|
1,603,593 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
446,749 |
|
|
356,928 |
|
|
133,498 |
|
|
131,412 |
Interest and debt expense |
|
|
3,275 |
|
|
2,974 |
|
|
1,047 |
|
|
965 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
443,474 |
|
|
353,954 |
|
|
132,451 |
|
|
130,447 |
Income taxes |
|
|
105,862 |
|
|
85,745 |
|
|
32,233 |
|
|
31,772 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
337,612 |
|
$ |
268,209 |
|
$ |
100,218 |
|
$ |
98,675 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
9.15 |
|
$ |
7.00 |
|
$ |
2.76 |
|
$ |
2.58 |
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
|
|
36,886,000 |
|
|
38,342,000 |
|
|
36,334,000 |
|
|
38,218,000 |
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share |
|
$ |
0.80 |
|
$ |
0.67 |
|
$ |
0.30 |
|
$ |
0.25 |
|
|
|
|
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|
Landstar
System, Inc. and Subsidiary |
Consolidated
Balance Sheets |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
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|
September 24, |
|
December 25, |
|
|
|
|
2022 |
|
2021 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
177,796 |
|
|
$ |
215,522 |
|
|
Short-term investments |
|
50,637 |
|
|
|
35,778 |
|
|
Trade accounts receivable, less allowance |
|
|
|
|
|
of $10,464 and $7,074 |
|
1,133,681 |
|
|
|
1,154,314 |
|
|
Other receivables, including advances to independent |
|
|
|
|
|
contractors, less allowance of $9,877 and $8,125 |
|
87,241 |
|
|
|
101,124 |
|
|
Other current assets |
|
35,493 |
|
|
|
16,162 |
|
|
|
Total current assets |
|
1,484,848 |
|
|
|
1,522,900 |
|
|
|
|
|
|
|
|
Operating property, less accumulated depreciation |
|
|
|
|
|
|
and amortization of $383,458 and $344,099 |
|
321,585 |
|
|
|
317,386 |
|
Goodwill |
|
|
41,004 |
|
|
|
40,768 |
|
Other assets |
|
141,103 |
|
|
|
164,411 |
|
Total assets |
$ |
1,988,540 |
|
|
$ |
2,045,465 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
Cash overdraft |
$ |
97,686 |
|
|
$ |
116,478 |
|
|
Accounts payable |
|
644,054 |
|
|
|
604,130 |
|
|
Current maturities of long-term debt |
|
37,375 |
|
|
|
36,561 |
|
|
Insurance claims |
|
58,131 |
|
|
|
46,896 |
|
|
Dividends payable |
|
- |
|
|
|
75,387 |
|
|
Other current liabilities |
|
104,272 |
|
|
|
130,531 |
|
|
|
Total current liabilities |
|
941,518 |
|
|
|
1,009,983 |
|
|
|
|
|
|
|
|
Long-term debt, excluding current maturities |
|
72,095 |
|
|
|
75,243 |
|
Insurance claims |
|
55,765 |
|
|
|
49,509 |
|
Deferred income taxes and other non-current liabilities |
|
45,989 |
|
|
|
48,720 |
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Common stock, $0.01 par value, authorized 160,000,000 |
|
|
|
|
|
shares, issued 68,380,565 and 68,232,975 |
|
684 |
|
|
|
682 |
|
|
Additional paid-in capital |
|
255,486 |
|
|
|
255,148 |
|
|
Retained earnings |
|
2,625,290 |
|
|
|
2,317,184 |
|
|
Cost of 32,455,300 and 30,539,235 shares of common |
|
|
|
|
|
stock in treasury |
|
(1,992,886 |
) |
|
|
(1,705,601 |
) |
|
Accumulated other comprehensive loss |
|
(15,401 |
) |
|
|
(5,403 |
) |
|
|
Total shareholders' equity |
|
873,173 |
|
|
|
862,010 |
|
Total liabilities and shareholders' equity |
$ |
1,988,540 |
|
|
$ |
2,045,465 |
|
|
|
|
|
|
|
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|
Landstar
System, Inc. and Subsidiary |
|
Supplemental
Information |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
Thirty Nine Weeks Ended |
|
|
Thirteen Weeks Ended |
|
|
|
|
|
September 24, |
|
September 25, |
|
|
September 24, |
|
September 25, |
|
|
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Revenue generated through (in thousands): |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Truck transportation |
|
|
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|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van equipment |
|
$ |
3,022,297 |
|
|
$ |
2,502,025 |
|
|
|
$ |
914,154 |
|
|
$ |
918,115 |
|
|
|
|
Unsided/platform equipment |
|
|
1,336,956 |
|
|
|
1,112,358 |
|
|
|
|
453,924 |
|
|
|
422,979 |
|
|
|
Less-than-truckload |
|
|
105,994 |
|
|
|
85,551 |
|
|
|
|
35,343 |
|
|
|
30,819 |
|
|
|
Other truck transportation (1) |
|
|
632,001 |
|
|
|
518,472 |
|
|
|
|
195,345 |
|
|
|
208,817 |
|
|
|
|
Total truck
transportation |
|
|
5,097,248 |
|
|
|
4,218,406 |
|
|
|
|
1,598,766 |
|
|
|
1,580,730 |
|
|
Rail intermodal |
|
|
113,762 |
|
|
|
120,540 |
|
|
|
|
27,652 |
|
|
|
44,472 |
|
|
Ocean and air cargo carriers |
|
|
475,156 |
|
|
|
191,951 |
|
|
|
|
164,252 |
|
|
|
84,111 |
|
|
Other (2) |
|
|
75,629 |
|
|
|
61,654 |
|
|
|
|
25,462 |
|
|
|
24,986 |
|
|
|
|
|
|
$ |
5,761,795 |
|
|
$ |
4,592,551 |
|
|
|
$ |
1,816,132 |
|
|
$ |
1,734,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue on loads hauled via BCO Independent
Contractors (3) |
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
$ |
2,043,772 |
|
|
$ |
1,899,313 |
|
|
|
$ |
627,809 |
|
|
$ |
690,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loads: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
|
1,130,263 |
|
|
|
1,037,516 |
|
|
|
|
366,513 |
|
|
|
359,263 |
|
|
|
|
Unsided/platform equipment |
|
|
420,436 |
|
|
|
381,594 |
|
|
|
|
141,091 |
|
|
|
133,332 |
|
|
|
Less-than-truckload |
|
|
142,740 |
|
|
|
135,038 |
|
|
|
|
45,912 |
|
|
|
49,943 |
|
|
|
Other truck transportation (1) |
|
|
243,341 |
|
|
|
208,402 |
|
|
|
|
76,594 |
|
|
|
81,242 |
|
|
|
|
Total truck
transportation |
|
|
1,936,780 |
|
|
|
1,762,550 |
|
|
|
|
630,110 |
|
|
|
623,780 |
|
|
Rail intermodal |
|
|
31,940 |
|
|
|
40,420 |
|
|
|
|
7,720 |
|
|
|
13,620 |
|
|
Ocean and air cargo carriers |
|
|
34,410 |
|
|
|
29,650 |
|
|
|
|
11,520 |
|
|
|
10,190 |
|
|
|
|
|
|
|
2,003,130 |
|
|
|
1,832,620 |
|
|
|
|
649,350 |
|
|
|
647,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loads hauled via BCO Independent Contractors
(3) |
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
|
777,250 |
|
|
|
773,270 |
|
|
|
|
249,420 |
|
|
|
263,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
$ |
2,674 |
|
|
$ |
2,412 |
|
|
|
$ |
2,494 |
|
|
$ |
2,556 |
|
|
|
|
Unsided/platform equipment |
|
|
3,180 |
|
|
|
2,915 |
|
|
|
|
3,217 |
|
|
|
3,172 |
|
|
|
Less-than-truckload |
|
|
743 |
|
|
|
634 |
|
|
|
|
770 |
|
|
|
617 |
|
|
|
Other truck transportation (1) |
|
|
2,597 |
|
|
|
2,488 |
|
|
|
|
2,550 |
|
|
|
2,570 |
|
|
|
|
Total truck
transportation |
|
|
2,632 |
|
|
|
2,393 |
|
|
|
|
2,537 |
|
|
|
2,534 |
|
|
Rail intermodal |
|
|
3,562 |
|
|
|
2,982 |
|
|
|
|
3,582 |
|
|
|
3,265 |
|
|
Ocean and air cargo carriers |
|
|
13,809 |
|
|
|
6,474 |
|
|
|
|
14,258 |
|
|
|
8,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load on loads hauled via BCO
Independent Contractors (3) |
|
$ |
2,629 |
|
|
$ |
2,456 |
|
|
|
$ |
2,517 |
|
|
$ |
2,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by capacity type (as a % of total revenue): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck capacity providers: |
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
35 |
% |
|
|
41 |
% |
|
|
|
35 |
% |
|
|
40 |
% |
|
|
Truck Brokerage Carriers |
|
|
53 |
% |
|
|
50 |
% |
|
|
|
53 |
% |
|
|
51 |
% |
|
Rail intermodal |
|
|
2 |
% |
|
|
3 |
% |
|
|
|
2 |
% |
|
|
3 |
% |
|
Ocean and air cargo carriers |
|
|
8 |
% |
|
|
4 |
% |
|
|
|
9 |
% |
|
|
5 |
% |
|
Other |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 24, |
|
September 25, |
|
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
Truck Capacity Providers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors
(3) |
|
|
|
|
|
|
|
10,742 |
|
|
|
10,955 |
|
|
Truck Brokerage Carriers: |
|
|
|
|
|
|
|
|
|
|
|
Approved and active (4) |
|
|
|
|
|
|
|
71,207 |
|
|
|
58,676 |
|
|
Other approved |
|
|
|
|
|
|
|
30,222 |
|
|
|
24,602 |
|
|
|
|
|
|
|
|
|
|
|
|
101,429 |
|
|
|
83,278 |
|
|
Total available truck capacity providers |
|
|
|
|
|
|
|
112,171 |
|
|
|
94,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trucks provided by BCO Independent Contractors
(3) |
|
|
|
|
|
|
|
11,644 |
|
|
|
11,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 transportation |
|
|
4,512,341 |
|
|
|
3,583,197 |
|
|
|
1,416,323 |
|
|
|
1,356,671 |
|
|
|
Commissions to agents |
|
|
465,759 |
|
|
|
356,997 |
|
|
|
154,125 |
|
|
|
135,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable costs of revenue |
|
|
4,978,100 |
|
|
|
3,940,194 |
|
|
|
1,570,448 |
|
|
|
1,491,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing equipment depreciation |
|
|
27,760 |
|
|
|
26,362 |
|
|
|
9,397 |
|
|
|
8,615 |
|
|
|
Information technology costs (1) |
|
|
13,868 |
|
|
|
9,534 |
|
|
|
4,829 |
|
|
|
3,450 |
|
|
|
Insurance-related costs (2) |
|
|
98,821 |
|
|
|
78,175 |
|
|
|
32,380 |
|
|
|
30,502 |
|
|
|
Other operating costs |
|
|
34,878 |
|
|
|
27,117 |
|
|
|
13,356 |
|
|
|
10,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs of revenue |
|
|
175,327 |
|
|
|
141,188 |
|
|
|
59,962 |
|
|
|
53,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs of revenue |
|
|
5,153,427 |
|
|
|
4,081,382 |
|
|
|
1,630,410 |
|
|
|
1,545,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
608,368 |
|
|
$ |
511,169 |
|
|
$ |
185,722 |
|
|
$ |
189,194 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
|
10.6 |
% |
|
|
11.1 |
% |
|
|
10.2 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: other costs of revenue |
|
|
175,327 |
|
|
|
141,188 |
|
|
|
59,962 |
|
|
|
53,139 |
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution |
|
$ |
783,695 |
|
|
$ |
652,357 |
|
|
$ |
245,684 |
|
|
$ |
242,333 |
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution margin |
|
|
13.6 |
% |
|
|
14.2 |
% |
|
|
13.5 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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.com
904-398-9400
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