Landstar Announces Increase to Stock Purchase Program and Special Dividend
December 10 2019 - 4:45PM
Landstar System, Inc. (NASDAQ-LSTR), a worldwide, asset-light
provider of integrated transportation management solutions
delivering safe, specialized transportation logistics services,
announced that on December 9, 2019, its Board of Directors
increased the number of shares of its common stock that the Company
is authorized to purchase under its stock purchase program to
3,000,000. The increase to the share purchase program reflects a
new authorization to purchase 1,849,068 shares of Landstar System
common stock in addition to the remaining capacity under the
existing authorizations to purchase 1,150,932 shares.
The Company also announced that its Board has
declared a special one-time cash dividend in the amount of $2.00
per share, payable on January 24, 2020, to stockholders of record
as of the close of business on January 10, 2020.
“Landstar’s strong balance sheet and free cash
flow generation enables us to continue to return value to our
stockholders through a significant increase to our stock purchase
program coupled with a special dividend,” said Landstar President
and Chief Executive Officer Jim Gattoni. “As previously reported,
as of September 28, 2019, the Company had $316 million in cash and
short term investments and $216 million available for borrowings
under the Company’s senior credit facility. The Company intends to
continue to use its available free cash flow to purchase its stock
under its stock purchase program."
About Landstar:Landstar System, Inc. is a
worldwide, 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.
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:
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. foreign 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; catastrophic loss of a
Company facility; intellectual property; unclaimed property; and
other operational, financial or legal risks or uncertainties
detailed in Landstar’s Form 10K for the 2018 fiscal year, 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.
Contact: Kevin Stout
Landstar System, Inc.
www.landstar.com
904-398-9400
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