Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”)
reported diluted earnings per share (“DEPS”) of $2.60 in the 2022
fourteen-week fourth quarter on revenue of $1.675 billion. Landstar
reported diluted earnings per share of $2.99 on revenue of $1.945
billion in the 2021 thirteen-week fourth quarter.
The Company’s fiscal year ends each year on the
last Saturday in December. As such, the Company’s 2022 fourth
quarter ended on December 31st and included fourteen weeks of
operations, whereas the 2021 fourth quarter ended on December 25th
and included thirteen weeks. As the week following Christmas tends
to reflect less demand for the Company’s freight transportation
services as compared to the rest of December, we estimate the extra
week in 2022 contributed revenue of approximately $65 million.
Gross profit in the 2022 fourth quarter was
$180.0 million and variable contribution (defined as revenue less
the cost of purchased transportation and commissions to agents) in
the 2022 fourth quarter was $234.0 million. Gross profit in the
2021 fourth quarter was $209.8 million and variable contribution in
the 2021 fourth quarter was $263.3 million. Reconciliations of
gross profit to variable contribution and gross profit margin to
variable contribution margin for the 2022 and 2021 fourth quarters
and full fiscal years are provided in the Company’s accompanying
financial disclosures.
Trailing twelve month return on average
shareholders’ equity was 50 percent and return on invested capital,
representing net income divided by the sum of average equity plus
average debt, was 44 percent. The Company is currently authorized
to purchase up to 3,000,000 shares of the Company’s common stock
under its previously announced share purchase programs. Landstar
announced today that its Board of Directors has declared a
quarterly dividend of $0.30 per share payable on March 10, 2023, to
stockholders of record as of the close of business on February 13,
2023. 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 fourth quarter was $1,533.6 million, or 92
percent of revenue, compared to $1,744.8 million, or 90 percent of
revenue, in the 2021 fourth quarter. Truckload transportation
revenue hauled via van equipment in the 2022 fourth quarter was
$869.8 million, compared to $1,023.8 million in the 2021 fourth
quarter. Truckload transportation revenue hauled via
unsided/platform equipment in the 2022 fourth quarter was $423.4
million, compared to $436.7 million in the 2021 fourth quarter.
Revenue from other truck transportation, which is largely related
to power-only services, in the 2022 fourth quarter was $204.0
million, compared to $252.4 million in the 2021 fourth
quarter. Revenue hauled by rail, air and ocean cargo carriers was
$115.1 million, or 7 percent of revenue, in the 2022 fourth
quarter, compared to $174.6 million, or 9 percent of revenue, in
the 2021 fourth quarter.
“The current macroeconomic environment made for
challenging comparisons against our record 2021 fourth quarter
performance despite the extra week of operations in the 2022 fourth
quarter,” said Landstar President and Chief Executive Officer Jim
Gattoni. “Softer demand during a weaker than typical peak season
resulted in more readily available truck capacity and truck rates
and volumes below the record prior year levels. The number of loads
hauled via truck decreased 5.5% as compared to the 2021 fourth
quarter, below the low end of our fourth quarter guidance issued in
our 2022 third quarter earnings release on October 19, 2022.
Revenue per load on loads hauled via truck decreased 7% as compared
to the 2021 fourth quarter, at the low end of the 2022 fourth
quarter guidance. In addition, revenue generated in the aggregate
via rail, air and ocean cargo carriers was below the estimated
amount included in the fourth quarter guidance.”
Gattoni further stated, “As expected, even with
a challenging 2022 fourth quarter, Landstar’s fiscal year financial
performance in 2022 was the best in the Company’s history. Revenue
in fiscal year 2022 was approximately $7.4 billion, an annual
record, and was approximately $900 million higher than the previous
record set in 2021. Gross profit and variable contribution in
fiscal year 2022 were $788 million and $1.018 billion,
respectively, both also representing new annual records. Operating
income in fiscal year 2022 was an annual record of $571 million and
represented year-over-year growth of 13%. Diluted earnings per
share in fiscal year 2022 was an annual record of $11.76, an
increase of $1.78, or 18 percent, from our prior fiscal year record
of $9.98 in 2021.”
Gattoni continued, “Landstar’s financial
performance in 2022, coming off a record-setting 2021 fiscal year,
was truly outstanding. The Company’s 2022 achievements speak to the
strength and resiliency of the Landstar network and the power of
our unique agent and capacity network to execute. I am extremely
pleased by our organic annual load volume growth and our continuing
ability to attract productive agents and capacity to the network.
We now enter 2023 looking forward to another exciting year for the
Company, its employees, and the thousands of business owners who
participate in the Landstar network.”
As it pertains to the 2023 first quarter, we
begin the year with a much softer freight environment as compared
to the beginning of 2022. Accordingly, we enter 2023 with very
difficult quarter over prior year quarter comparisons. 2022 first
quarter truck revenue per load was an all-time Landstar high and
truck load volume was the second highest quarterly volume in
Company history, lower only than the 2021 fourth quarter. We ended
2022 with fourth quarter truck revenue per load 11 percent below
the 2022 first quarter. That lower truck revenue per load will
certainly carry forward into the 2023 first quarter along with the
expectation that we experience a normal seasonal decrease in rates
from the fourth quarter to the first quarter in a mid-single digit
percentage range.
Also, in the 2022 first quarter, revenue hauled
via rail, air and ocean cargo carriers was near an all-time high of
$195 million. We expect that revenue hauled via these non-trucking
modes in the 2023 first quarter to be $100 million to $120 million
below the 2022 first quarter.
Gattoni further commented, “With respect to
recent trends, the number of loads hauled via truck has been 10 to
12 percent below the corresponding period of 2022 and overall truck
revenue per load has been 15 to 17 percent below the corresponding
period of 2022. Prior to the onset of the pandemic in 2020, truck
revenue per load typically experienced, on average, a mid-single
digit percentage range seasonal decrease from the fourth quarter to
the immediately following first quarter. Thus far through the first
four weeks of January 2023, truck revenue per load has trended
reasonably in-line with pre-pandemic historical fourth quarter to
first quarter sequential patterns. As such, I anticipate revenue
for the 2023 first quarter to be in a range of $1.40 billion to
$1.45 billion.”
Gattoni concluded, “Based on the range of
revenue estimated for the 2023 first quarter, I would anticipate
DEPS to be in a range of $2.05 to $2.15. This range of DEPS
includes insurance and claims expense estimated at 4.5 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 Fourth 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 2022 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.
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
Consolidated
Statements of Income |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
Fiscal Quarters Ended |
|
December 31, |
|
December 25, |
|
December 31, |
|
December 25, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Revenue |
$ |
7,436,562 |
|
$ |
6,537,568 |
|
$ |
1,674,767 |
|
$ |
1,945,017 |
Investment
income |
|
3,162 |
|
|
2,857 |
|
|
1,139 |
|
|
719 |
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
Purchased transportation |
|
5,804,017 |
|
|
5,114,667 |
|
|
1,291,676 |
|
|
1,531,470 |
Commissions to agents |
|
614,865 |
|
|
507,209 |
|
|
149,106 |
|
|
150,212 |
Other operating costs, net of gains on asset
sales/dispositions |
|
45,192 |
|
|
36,531 |
|
|
10,314 |
|
|
9,414 |
Insurance and claims |
|
125,835 |
|
|
105,463 |
|
|
29,570 |
|
|
30,265 |
Selling, general and administrative |
|
221,279 |
|
|
221,278 |
|
|
56,080 |
|
|
62,558 |
Depreciation and amortization |
|
57,453 |
|
|
49,609 |
|
|
14,826 |
|
|
13,077 |
|
|
|
|
|
|
|
|
Total costs and expenses |
|
6,868,641 |
|
|
6,034,757 |
|
|
1,551,572 |
|
|
1,796,996 |
|
|
|
|
|
|
|
|
Operating
income |
|
571,083 |
|
|
505,668 |
|
|
124,334 |
|
|
148,740 |
Interest and
debt expense |
|
3,620 |
|
|
3,976 |
|
|
345 |
|
|
1,002 |
|
|
|
|
|
|
|
|
Income
before income taxes |
|
567,463 |
|
|
501,692 |
|
|
123,989 |
|
|
147,738 |
Income
taxes |
|
136,549 |
|
|
120,168 |
|
|
30,687 |
|
|
34,423 |
|
|
|
|
|
|
|
|
Net
income |
$ |
430,914 |
|
$ |
381,524 |
|
$ |
93,302 |
|
$ |
113,315 |
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
11.76 |
|
$ |
9.98 |
|
$ |
2.60 |
|
$ |
2.99 |
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
36,633,000 |
|
|
38,235,000 |
|
|
35,930,000 |
|
|
37,917,000 |
|
|
|
|
|
|
|
|
Dividends
per common share |
$ |
3.10 |
|
$ |
2.92 |
|
$ |
2.30 |
|
$ |
2.25 |
|
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
Consolidated
Balance Sheets |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 25, |
|
2022 |
|
2021 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
339,581 |
|
|
$ |
215,522 |
|
Short-term investments |
|
53,955 |
|
|
|
35,778 |
|
Trade accounts receivable, less allowance |
|
|
|
of $12,121 and $7,074 |
|
967,793 |
|
|
|
1,154,314 |
|
Other receivables, including advances to independent |
|
|
|
contractors, less allowance of $10,579 and $8,125 |
|
56,235 |
|
|
|
101,124 |
|
Other current assets |
|
21,826 |
|
|
|
16,162 |
|
Total current assets |
|
1,439,390 |
|
|
|
1,522,900 |
|
|
|
|
|
Operating property, less accumulated depreciation |
|
|
|
and amortization of $393,274 and $344,099 |
|
314,990 |
|
|
|
317,386 |
|
Goodwill |
|
41,220 |
|
|
|
40,768 |
|
Other assets |
|
136,279 |
|
|
|
164,411 |
|
Total assets |
$ |
1,931,879 |
|
|
$ |
2,045,465 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Cash overdraft |
$ |
92,953 |
|
|
$ |
116,478 |
|
Accounts payable |
|
527,372 |
|
|
|
604,130 |
|
Current maturities of long-term debt |
|
36,175 |
|
|
|
36,561 |
|
Insurance claims |
|
50,836 |
|
|
|
46,896 |
|
Dividends payable |
|
71,854 |
|
|
|
75,387 |
|
Other current liabilities |
|
98,945 |
|
|
|
130,531 |
|
Total current liabilities |
|
878,135 |
|
|
|
1,009,983 |
|
|
|
|
|
Long-term debt, excluding current maturities |
|
67,225 |
|
|
|
75,243 |
|
Insurance claims |
|
58,268 |
|
|
|
49,509 |
|
Deferred income taxes and other non-current liabilities |
|
41,030 |
|
|
|
48,720 |
|
|
|
|
|
Shareholders' equity: |
|
|
|
Common stock, $0.01 par value, authorized 160,000,000 |
|
|
|
shares, issued 68,382,310 and 68,232,975 |
|
684 |
|
|
|
682 |
|
Additional paid-in capital |
|
258,487 |
|
|
|
255,148 |
|
Retained earnings |
|
2,635,960 |
|
|
|
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 |
|
(15,024 |
) |
|
|
(5,403 |
) |
Total shareholders' equity |
|
887,221 |
|
|
|
862,010 |
|
Total liabilities and shareholders' equity |
$ |
1,931,879 |
|
|
$ |
2,045,465 |
|
|
|
|
|
Landstar System, Inc. and Subsidiary |
Supplemental Information |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
Fiscal Quarters Ended |
|
December 31, |
|
December 25, |
|
December 31, |
|
December 25, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue generated through (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
Van equipment |
$ |
3,892,085 |
|
|
$ |
3,525,830 |
|
|
$ |
869,788 |
|
|
$ |
1,023,805 |
|
Unsided/platform equipment |
|
1,760,357 |
|
|
|
1,549,037 |
|
|
|
423,401 |
|
|
|
436,679 |
|
Less-than-truckload |
|
142,438 |
|
|
|
117,505 |
|
|
|
36,444 |
|
|
|
31,954 |
|
Other truck transportation (1) |
|
835,959 |
|
|
|
770,846 |
|
|
|
203,958 |
|
|
|
252,374 |
|
Total truck transportation |
|
6,630,839 |
|
|
|
5,963,218 |
|
|
|
1,533,591 |
|
|
|
1,744,812 |
|
Rail intermodal |
|
145,017 |
|
|
|
159,974 |
|
|
|
31,255 |
|
|
|
39,434 |
|
Ocean and air cargo carriers |
|
558,986 |
|
|
|
327,160 |
|
|
|
83,830 |
|
|
|
135,209 |
|
Other (2) |
|
101,720 |
|
|
|
87,216 |
|
|
|
26,091 |
|
|
|
25,562 |
|
|
$ |
7,436,562 |
|
|
$ |
6,537,568 |
|
|
$ |
1,674,767 |
|
|
$ |
1,945,017 |
|
|
|
|
|
|
|
|
|
Revenue on loads hauled via BCO Independent Contractors
(3) included in total truck transportation |
$ |
2,636,036 |
|
|
$ |
2,612,188 |
|
|
$ |
592,264 |
|
|
$ |
712,875 |
|
|
|
|
|
|
|
|
|
Number of loads: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
Van equipment |
|
1,496,247 |
|
|
|
1,422,734 |
|
|
|
365,984 |
|
|
|
385,218 |
|
Unsided/platform equipment |
|
558,530 |
|
|
|
521,891 |
|
|
|
138,094 |
|
|
|
140,297 |
|
Less-than-truckload |
|
191,233 |
|
|
|
183,975 |
|
|
|
48,493 |
|
|
|
48,937 |
|
Other truck transportation (1) |
|
320,790 |
|
|
|
300,710 |
|
|
|
77,449 |
|
|
|
92,308 |
|
Total truck transportation |
|
2,566,800 |
|
|
|
2,429,310 |
|
|
|
630,020 |
|
|
|
666,760 |
|
Rail intermodal |
|
40,710 |
|
|
|
52,310 |
|
|
|
8,770 |
|
|
|
11,890 |
|
Ocean and air cargo carriers |
|
41,850 |
|
|
|
41,450 |
|
|
|
7,440 |
|
|
|
11,800 |
|
|
|
2,649,360 |
|
|
|
2,523,070 |
|
|
|
646,230 |
|
|
|
690,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loads hauled via BCO Independent Contractors (3) included in
total truck transportation |
|
1,027,480 |
|
|
|
1,039,630 |
|
|
|
250,230 |
|
|
|
266,360 |
|
|
|
|
|
|
|
|
|
Revenue per load: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
Van equipment |
$ |
2,601 |
|
|
$ |
2,478 |
|
|
$ |
2,377 |
|
|
$ |
2,658 |
|
Unsided/platform equipment |
|
3,152 |
|
|
|
2,968 |
|
|
|
3,066 |
|
|
|
3,113 |
|
Less-than-truckload |
|
745 |
|
|
|
639 |
|
|
|
752 |
|
|
|
653 |
|
Other truck transportation (1) |
|
2,606 |
|
|
|
2,563 |
|
|
|
2,633 |
|
|
|
2,734 |
|
Total truck transportation |
|
2,583 |
|
|
|
2,455 |
|
|
|
2,434 |
|
|
|
2,617 |
|
Rail intermodal |
|
3,562 |
|
|
|
3,058 |
|
|
|
3,564 |
|
|
|
3,317 |
|
Ocean and air cargo carriers |
|
13,357 |
|
|
|
7,893 |
|
|
|
11,267 |
|
|
|
11,458 |
|
|
|
|
|
|
|
|
|
Revenue per load on loads hauled via BCO Independent Contractors
(3) |
$ |
2,566 |
|
|
$ |
2,513 |
|
|
$ |
2,367 |
|
|
$ |
2,676 |
|
|
|
|
|
|
|
|
|
Revenue by capacity type (as a % of total revenue): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck capacity providers: |
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
35 |
% |
|
|
40 |
% |
|
|
35 |
% |
|
|
37 |
% |
Truck Brokerage Carriers |
|
54 |
% |
|
|
51 |
% |
|
|
56 |
% |
|
|
53 |
% |
Rail intermodal |
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
|
|
2 |
% |
Ocean and air cargo carriers |
|
8 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
7 |
% |
Other |
|
1 |
% |
|
|
1 |
% |
|
|
2 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 25, |
|
|
|
|
|
2022 |
|
2021 |
Truck Capacity Providers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
|
|
|
10,393 |
|
|
|
11,057 |
|
Truck Brokerage Carriers: |
|
|
|
|
|
|
|
Approved and active (4) |
|
|
|
|
|
66,745 |
|
|
|
64,476 |
|
Other approved |
|
|
|
|
|
30,999 |
|
|
|
25,870 |
|
|
|
|
|
|
|
97,744 |
|
|
|
90,346 |
|
Total available truck capacity providers |
|
|
|
|
|
108,137 |
|
|
|
101,403 |
|
|
|
|
|
|
|
|
|
Trucks provided by BCO Independent Contractors (3) |
|
|
|
|
|
11,281 |
|
|
|
11,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
Fiscal Quarters Ended |
|
December 31, |
|
December 25, |
|
December 31, |
|
December 25, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Revenue |
$ |
7,436,562 |
|
|
$ |
6,537,568 |
|
|
$ |
1,674,767 |
|
|
$ |
1,945,017 |
|
|
|
|
|
|
|
|
|
Costs of
revenue: |
|
|
|
|
|
|
|
Purchased transportation |
|
5,804,017 |
|
|
|
5,114,667 |
|
|
|
1,291,676 |
|
|
|
1,531,470 |
|
Commissions to agents |
|
614,865 |
|
|
|
507,209 |
|
|
|
149,106 |
|
|
|
150,212 |
|
|
|
|
|
|
|
|
|
Variable costs of revenue |
|
6,418,882 |
|
|
|
5,621,876 |
|
|
|
1,440,782 |
|
|
|
1,681,682 |
|
|
|
|
|
|
|
|
|
Trailing equipment depreciation |
|
36,653 |
|
|
|
35,204 |
|
|
|
8,893 |
|
|
|
8,842 |
|
Information technology costs (1) |
|
19,834 |
|
|
|
13,560 |
|
|
|
5,966 |
|
|
|
4,026 |
|
Insurance-related costs (2) |
|
127,605 |
|
|
|
109,387 |
|
|
|
28,784 |
|
|
|
31,212 |
|
Other operating costs |
|
45,192 |
|
|
|
36,531 |
|
|
|
10,314 |
|
|
|
9,414 |
|
|
|
|
|
|
|
|
|
Other costs of revenue |
|
229,284 |
|
|
|
194,682 |
|
|
|
53,957 |
|
|
|
53,494 |
|
|
|
|
|
|
|
|
|
Total costs of revenue |
|
6,648,166 |
|
|
|
5,816,558 |
|
|
|
1,494,739 |
|
|
|
1,735,176 |
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
788,396 |
|
|
$ |
721,010 |
|
|
$ |
180,028 |
|
|
$ |
209,841 |
|
|
|
|
|
|
|
|
|
Gross profit
margin |
|
10.6 |
% |
|
|
11.0 |
% |
|
|
10.7 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
Plus: other costs of revenue |
|
229,284 |
|
|
|
194,682 |
|
|
|
53,957 |
|
|
|
53,494 |
|
|
|
|
|
|
|
|
|
Variable
contribution |
$ |
1,017,680 |
|
|
$ |
915,692 |
|
|
$ |
233,985 |
|
|
$ |
263,335 |
|
|
|
|
|
|
|
|
|
Variable
contribution margin |
|
13.7 |
% |
|
|
14.0 |
% |
|
|
14.0 |
% |
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
(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. |
Contact: Jim Todd (CFO)
Landstar System, Inc.
www.landstar.com
904-398-9400
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