Landstar System, Inc. (NASDAQ:LSTR) reported record quarterly
revenue of $1.734 billion in the 2021 third quarter, a 60 percent
increase over revenue of $1.086 billion in the 2020 third quarter.
Net income was a quarterly record of $98.7 million, or diluted
earnings per share of $2.58, in the 2021 third quarter compared to
net income of $61.9 million, or diluted earnings per share of
$1.61, in the 2020 third quarter. Operating income grew to an
all-time quarterly record of $131.4 million in the 2021 third
quarter, 60 percent above operating income of $82.4 million in the
2020 third quarter. To put the strength of our 2021 third quarter
performance in perspective, revenue, operating income, net income
and diluted earnings per share increased 60 percent, 60 percent, 59
percent and 60 percent, respectively, over the 2020 third quarter,
which at the time included the second highest amounts achieved of
each of these financial metrics in any third quarter in the
Company’s history.
Please note that commencing with the release of
our financial results for the 2021 third quarter, the Company
revised its definition of the term “gross profit”. Gross profit is
now defined as revenue less costs of revenue. In conjunction with
this change, the Company has initiated the use of the term
“variable contribution”, a non-GAAP financial measure, to refer to
the amount represented by revenue less the costs of purchased
transportation and commissions to agents that we formerly referred
to as gross profit. In addition, the Company now defines “gross
profit margin” to refer to gross profit divided by revenue and
“variable contribution margin”, a non-GAAP financial measure, to
refer to variable contribution divided by revenue. Gross profit in
the 2021 third quarter was $189.2 million, an all-time quarterly
record, compared to $119.8 million in the 2020 third quarter.
Variable contribution also reached an all-time quarterly record of
$242.3 million in the 2021 third quarter compared to $160.9 million
in the 2020 third quarter. A tabulation of the expenses identified
as costs of revenue as well as a reconciliation of gross profit to
variable contribution and gross profit margin to variable
contribution margin for the 2021 and 2020 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 43 percent and return on invested capital,
representing net income divided by the sum of average equity plus
average debt, was 38 percent. During the 2021 third quarter,
Landstar purchased 167,000 shares of its common stock bringing the
year-to-date number of shares purchased to 317,000 at an aggregate
cost of $50 million. The Company is currently authorized to
purchase up to approximately 1,504,000 additional 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 $0.25 per share
payable on December 3, 2021, to stockholders of record as of the
close of business on November 9, 2021. 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 2021 third quarter was $1.581 billion, or 91
percent of revenue, compared to $1.006 billion, or 93 percent of
revenue, in the 2020 third quarter. Revenue hauled by rail, air and
ocean cargo carriers was $128.6 million, or 7 percent of revenue,
in the 2021 third quarter compared to approximately $62 million, or
6 percent of revenue, in the 2020 third quarter.
The supplemental information schedule included
as a table to this press release includes changes to the historical
classification of truck services and equipment type. Power-only,
expedited, straight truck, cargo van and miscellaneous other truck
transportation services that were formerly included in revenue from
van or unsided/platform services have been classified in a single
line item named “other truck transportation” as demand for these
types of truck services increased significantly during the
pandemic. Other truck transportation revenue was 13.2 percent and
10.8 percent of total truck transportation revenue in the 2021 and
2020 third quarters, respectively.
Truckload transportation revenue hauled via van
equipment in the 2021 third quarter was $918.1 million, an increase
of 59 percent compared to $578.2 million in the 2020 third quarter.
Truckload transportation revenue hauled via unsided/platform
equipment in the 2021 third quarter was $423.0 million, an increase
of 44 percent compared to $294.3 million in the 2020 third quarter.
Other truck transportation revenue, which includes power only,
expedited, straight truck, cargo van and miscellaneous other truck
transportation revenue, in the 2021 third quarter was $208.8
million, an increase of 92 percent compared to $108.6 million in
the 2020 third quarter.
“Following a record-breaking 2021 second
quarter, the 2021 third quarter reset the standard as the best
quarterly financial performance in Landstar history. 2021 third
quarter revenue, gross profit, variable contribution, net income
and diluted earnings per share each set all-time quarterly
records,” said Landstar President and CEO Jim Gattoni. “Our load
volume hauled by truck in the third quarter grew 22 percent
compared to the 2020 third quarter, which at the time was the
second highest third quarter load volume hauled by truck in
Landstar history. Additionally, third quarter truck loadings
increased from the 2021 second quarter by 3.5 percent, the second
largest ever increase in truck loadings from the second to the
third quarter in Landstar history behind only 2020 when the second
quarter included the most significant volume declines caused by the
COVID-19 pandemic. Our 2021 third quarter performance was
particularly impressive considering we were following an already
record-setting second quarter, and, in most years, load volume
hauled by truck experiences a slight decrease sequentially from the
second quarter to the third quarter. We attribute this unseasonal
increase in volume to ongoing, broad-based demand for freight
transportation services, with particular strength in sectors
benefiting from consumer spending that has continued to be a big
driver of freight activity.”
Gattoni continued, “In our 2021 second quarter
earnings release on July 21, 2021, we provided third quarter
revenue guidance of $1.55 billion to $1.60 billion and third
quarter diluted earnings per share guidance of $2.20 to $2.30. On
August 17, 2021, we filed a Form 8-K with the SEC that revised our
initial guidance based on trends in volume and rates through the
first seven weeks of the third quarter. Our updated 2021 third
quarter guidance reflected our expectation that on a sequential
basis revenue per load on loads hauled via truck would exceed the
2021 second quarter in a mid-single-digit percentage range and the
number of loads hauled via truck in the 2021 third quarter would
exceed the 2021 second quarter in a low single-digit percentage
range. Actual sequential growth in truck revenue per load was 5.8
percent and actual sequential growth in load volume hauled via
truck was 3.5 percent, each at the high end of our August 17th
revised guidance. Based on our expectations as to volume and
pricing on loads hauled by truck, our August 17th updated guidance
anticipated that revenue would be in the range of $1.68 billion to
$1.72 billion and diluted earnings per share would be in the range
of $2.45 to $2.55. Actual 2021 third quarter revenue was $1.734
billion and diluted earnings per share was $2.58, each slightly
exceeding the top end of our August 17th updated guidance
ranges.”
Gattoni continued, “As we look to the 2021
fourth quarter, we anticipate continued solid performance on the
expectation that broad-based economic strength will support a
strong freight environment for the near future. In addition, we
will likely continue to be in a capacity-constrained environment,
which should continue to support elevated truck revenue per load in
the fourth quarter.”
Gattoni further stated, “Overall, I expect the
2021 fourth quarter financial results to be similar to the 2021
third quarter. Through the first few weeks of October, revenue per
load on loads hauled via truck and the number of loads hauled via
truck are trending fairly consistent with historical third to
fourth quarter sequential patterns. I expect normal seasonal trends
in revenue per load and load volume on loads hauled via truck as we
move through the final months of 2021. At those levels, both
revenue per load and load volume on loads hauled via truck would
establish new fourth quarter records in the 2021 fourth quarter. As
such, I anticipate revenue for the 2021 fourth quarter to be in a
range of $1.70 billion to $1.75 billion. Based on that range of
revenue and assuming insurance and claims costs of 4.3 percent of
BCO revenue, I anticipate diluted earnings per share to be in a
range of $2.55 to $2.65 in the 2021 fourth quarter.”
Gattoni concluded, “Landstar’s performance so
far this year has been outstanding. The Company’s agent family is
executing on all cylinders and we continue to add qualified truck
capacity. We ended the 2021 third quarter with a record number of
trucks provided by BCOs and a record active third-party truck
brokerage carrier count. Given the exceptional performance by
Landstar year-to-date plus the revenue and earnings estimates we
have provided for the 2021 fourth quarter, we anticipate
establishing new all-time fiscal year records in 2021 with annual
revenue expected to be in excess of $6 billion and diluted earnings
per share expected to be in excess of $9.55. 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 an extraordinary 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 2021 Earnings Release
Conference Call.”
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.
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 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; 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 2020 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.
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
Consolidated
Statements of Income |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty Nine Weeks Ended |
|
Thirteen Weeks Ended |
|
|
|
|
September 25, |
|
September 26, |
|
September 25, |
|
September 26, |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,592,551 |
|
$ |
2,836,626 |
|
$ |
1,734,299 |
|
$ |
1,085,546 |
Investment income |
|
|
2,138 |
|
|
2,716 |
|
|
706 |
|
|
714 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
3,583,197 |
|
|
2,183,143 |
|
|
1,356,671 |
|
|
838,753 |
|
Commissions to agents |
|
|
356,997 |
|
|
236,490 |
|
|
135,295 |
|
|
85,848 |
|
Other operating costs, net of gains on asset
sales/dispositions |
|
|
27,117 |
|
|
23,035 |
|
|
10,572 |
|
|
7,361 |
|
Insurance and claims |
|
|
75,198 |
|
|
66,563 |
|
|
29,569 |
|
|
21,855 |
|
Selling, general and administrative |
|
|
158,720 |
|
|
124,779 |
|
|
59,198 |
|
|
38,851 |
|
Depreciation and amortization |
|
|
36,532 |
|
|
34,212 |
|
|
12,288 |
|
|
11,240 |
|
Impairment of intangible and other assets |
|
|
- |
|
|
2,582 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
4,237,761 |
|
|
2,670,804 |
|
|
1,603,593 |
|
|
1,003,908 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
356,928 |
|
|
168,538 |
|
|
131,412 |
|
|
82,352 |
Interest and debt expense |
|
|
2,974 |
|
|
2,936 |
|
|
965 |
|
|
1,008 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
353,954 |
|
|
165,602 |
|
|
130,447 |
|
|
81,344 |
Income taxes |
|
|
85,745 |
|
|
38,567 |
|
|
31,772 |
|
|
19,458 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
268,209 |
|
$ |
127,035 |
|
$ |
98,675 |
|
$ |
61,886 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
7.00 |
|
$ |
3.28 |
|
$ |
2.58 |
|
$ |
1.61 |
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
|
|
38,342,000 |
|
|
38,673,000 |
|
|
38,218,000 |
|
|
38,386,000 |
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share |
|
$ |
0.67 |
|
$ |
0.58 |
|
$ |
0.25 |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
Consolidated
Balance Sheets |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 25, |
|
December 26, |
|
|
|
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
230,564 |
|
|
$ |
249,354 |
|
|
Short-term investments |
|
|
36,644 |
|
|
|
41,375 |
|
|
Trade accounts receivable, less allowance |
|
|
|
|
|
of $6,543 and $8,670 |
|
|
1,010,538 |
|
|
|
764,169 |
|
|
Other receivables, including advances to independent |
|
|
|
|
|
contractors, less allowance of $7,696 and $7,239 |
|
109,007 |
|
|
|
134,757 |
|
|
Other current assets |
|
|
25,375 |
|
|
|
18,520 |
|
|
|
Total current assets |
|
|
1,412,128 |
|
|
|
1,208,175 |
|
|
|
|
|
|
|
|
|
Operating property, less accumulated depreciation |
|
|
|
|
and amortization of $332,785 and $299,407 |
|
301,373 |
|
|
|
296,996 |
|
Goodwill |
|
|
|
40,980 |
|
|
|
40,949 |
|
Other assets |
|
|
159,561 |
|
|
|
107,679 |
|
Total assets |
|
$ |
1,914,042 |
|
|
$ |
1,653,799 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
|
Cash overdraft |
|
$ |
88,958 |
|
|
$ |
74,748 |
|
|
Accounts payable |
|
|
548,385 |
|
|
|
380,505 |
|
|
Current maturities of long-term debt |
|
34,617 |
|
|
|
35,415 |
|
|
Insurance claims |
|
|
64,958 |
|
|
|
149,774 |
|
|
Dividends payable |
|
|
- |
|
|
|
76,770 |
|
|
Other current liabilities |
|
|
110,394 |
|
|
|
88,925 |
|
|
|
Total current liabilities |
|
|
847,312 |
|
|
|
806,137 |
|
|
|
|
|
|
|
|
|
Long-term debt, excluding current maturities |
|
62,724 |
|
|
|
65,359 |
|
Insurance claims |
|
|
46,914 |
|
|
|
38,867 |
|
Deferred income taxes and other non-current liabilities |
|
57,402 |
|
|
|
51,601 |
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common stock, $0.01 par value, authorized 160,000,000 |
|
|
|
|
|
shares, issued 68,231,013 and 68,183,702 |
|
682 |
|
|
|
682 |
|
|
Additional paid-in capital |
|
|
246,302 |
|
|
|
228,875 |
|
|
Retained earnings |
|
|
2,288,754 |
|
|
|
2,046,238 |
|
|
Cost of 30,122,427 and 29,797,639 shares of common |
|
|
|
|
|
stock in treasury |
|
|
(1,633,109 |
) |
|
|
(1,581,961 |
) |
|
Accumulated other comprehensive loss |
|
(2,939 |
) |
|
|
(1,999 |
) |
|
|
Total shareholders' equity |
|
|
899,690 |
|
|
|
691,835 |
|
Total liabilities and shareholders' equity |
$ |
1,914,042 |
|
|
$ |
1,653,799 |
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
|
Supplemental
Information |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty Nine Weeks Ended |
|
|
Thirteen Weeks Ended |
|
|
|
|
|
September 25, |
|
September 26, |
|
|
September 25, |
|
September 26, |
|
|
|
|
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
Revenue generated through (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van equipment |
|
$ |
2,502,025 |
|
|
$ |
1,485,553 |
|
|
|
$ |
918,115 |
|
|
$ |
578,166 |
|
|
|
|
Unsided/platform equipment |
|
|
1,112,358 |
|
|
|
807,966 |
|
|
|
|
422,979 |
|
|
|
294,273 |
|
|
|
Less-than-truckload |
|
|
85,551 |
|
|
|
70,984 |
|
|
|
|
30,819 |
|
|
|
25,125 |
|
|
|
Other truck transportation (1) |
|
|
518,472 |
|
|
|
249,584 |
|
|
|
|
208,817 |
|
|
|
108,614 |
|
|
|
|
Total truck
transportation |
|
|
4,218,406 |
|
|
|
2,614,087 |
|
|
|
|
1,580,730 |
|
|
|
1,006,178 |
|
|
Rail intermodal |
|
|
120,540 |
|
|
|
81,747 |
|
|
|
|
44,472 |
|
|
|
30,432 |
|
|
Ocean and air cargo carriers |
|
|
191,951 |
|
|
|
89,002 |
|
|
|
|
84,111 |
|
|
|
31,752 |
|
|
Other (2) |
|
|
61,654 |
|
|
|
51,790 |
|
|
|
|
24,986 |
|
|
|
17,184 |
|
|
|
|
|
|
$ |
4,592,551 |
|
|
$ |
2,836,626 |
|
|
|
$ |
1,734,299 |
|
|
$ |
1,085,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue on loads hauled via BCO Independent Contractors (3) |
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
$ |
1,899,313 |
|
|
$ |
1,312,003 |
|
|
|
$ |
690,257 |
|
|
$ |
502,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loads: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
|
1,037,516 |
|
|
|
822,422 |
|
|
|
|
359,263 |
|
|
|
296,427 |
|
|
|
|
Unsided/platform equipment |
|
|
381,594 |
|
|
|
338,696 |
|
|
|
|
133,332 |
|
|
|
118,026 |
|
|
|
Less-than-truckload |
|
|
135,038 |
|
|
|
119,533 |
|
|
|
|
49,943 |
|
|
|
41,454 |
|
|
|
Other truck transportation (1) |
|
|
208,402 |
|
|
|
141,669 |
|
|
|
|
81,242 |
|
|
|
56,693 |
|
|
|
|
Total truck
transportation |
|
|
1,762,550 |
|
|
|
1,422,320 |
|
|
|
|
623,780 |
|
|
|
512,600 |
|
|
Rail intermodal |
|
|
40,420 |
|
|
|
33,410 |
|
|
|
|
13,620 |
|
|
|
11,900 |
|
|
Ocean and air cargo carriers |
|
|
29,650 |
|
|
|
22,720 |
|
|
|
|
10,190 |
|
|
|
8,290 |
|
|
|
|
|
|
|
1,832,620 |
|
|
|
1,478,450 |
|
|
|
|
647,590 |
|
|
|
532,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loads hauled via BCO Independent Contractors (3) |
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
|
773,270 |
|
|
|
693,860 |
|
|
|
|
263,120 |
|
|
|
250,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
$ |
2,412 |
|
|
$ |
1,806 |
|
|
|
$ |
2,556 |
|
|
$ |
1,950 |
|
|
|
|
Unsided/platform equipment |
|
|
2,915 |
|
|
|
2,386 |
|
|
|
|
3,172 |
|
|
|
2,493 |
|
|
|
Less-than-truckload |
|
|
634 |
|
|
|
594 |
|
|
|
|
617 |
|
|
|
606 |
|
|
|
Other truck transportation (1) |
|
|
2,488 |
|
|
|
1,762 |
|
|
|
|
2,570 |
|
|
|
1,916 |
|
|
|
|
Total truck
transportation |
|
|
2,393 |
|
|
|
1,838 |
|
|
|
|
2,534 |
|
|
|
1,963 |
|
|
Rail intermodal |
|
|
2,982 |
|
|
|
2,447 |
|
|
|
|
3,265 |
|
|
|
2,557 |
|
|
Ocean and air cargo carriers |
|
|
6,474 |
|
|
|
3,917 |
|
|
|
|
8,254 |
|
|
|
3,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load on loads hauled via BCO Independent Contractors
(3) |
|
$ |
2,456 |
|
|
$ |
1,891 |
|
|
|
$ |
2,623 |
|
|
$ |
2,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by capacity type (as a % of total revenue): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck capacity providers: |
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
41 |
% |
|
|
46 |
% |
|
|
|
40 |
% |
|
|
46 |
% |
|
|
Truck Brokerage Carriers |
|
|
50 |
% |
|
|
46 |
% |
|
|
|
51 |
% |
|
|
46 |
% |
|
Rail intermodal |
|
|
3 |
% |
|
|
3 |
% |
|
|
|
3 |
% |
|
|
3 |
% |
|
Ocean and air cargo carriers |
|
|
4 |
% |
|
|
3 |
% |
|
|
|
5 |
% |
|
|
3 |
% |
|
Other |
|
|
1 |
% |
|
|
2 |
% |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 25, |
|
September 26, |
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
Truck Capacity Providers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BCO Independent Contractors (3) |
|
|
|
|
|
|
|
10,955 |
|
|
|
9,866 |
|
|
Truck Brokerage Carriers: |
|
|
|
|
|
|
|
|
|
|
|
Approved and active (4) |
|
|
|
|
|
|
|
58,676 |
|
|
|
41,246 |
|
|
|
Other approved |
|
|
|
|
|
|
|
24,602 |
|
|
|
22,181 |
|
|
|
|
|
|
|
|
|
|
|
|
83,278 |
|
|
|
63,427 |
|
|
Total available truck capacity providers |
|
|
|
|
|
|
|
94,233 |
|
|
|
73,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trucks provided by BCO Independent Contractors (3) |
|
|
|
|
|
|
|
11,746 |
|
|
|
10,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 25, |
|
September 26, |
|
September 25, |
|
September 26, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,592,551 |
|
|
$ |
2,836,626 |
|
|
$ |
1,734,299 |
|
|
$ |
1,085,546 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of revenue: |
|
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
3,583,197 |
|
|
|
2,183,143 |
|
|
|
1,356,671 |
|
|
|
838,753 |
|
|
|
Commissions to agents |
|
|
356,997 |
|
|
|
236,490 |
|
|
|
135,295 |
|
|
|
85,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable costs of revenue |
|
|
3,940,194 |
|
|
|
2,419,633 |
|
|
|
1,491,966 |
|
|
|
924,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing equipment depreciation |
|
|
26,362 |
|
|
|
26,342 |
|
|
|
8,615 |
|
|
|
8,397 |
|
|
|
Information technology costs (1) |
|
|
9,534 |
|
|
|
7,021 |
|
|
|
3,450 |
|
|
|
2,722 |
|
|
|
Insurance-related costs (2) |
|
|
78,175 |
|
|
|
68,839 |
|
|
|
30,502 |
|
|
|
22,657 |
|
|
|
Other operating costs |
|
|
27,117 |
|
|
|
23,035 |
|
|
|
10,572 |
|
|
|
7,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs of revenue |
|
|
141,188 |
|
|
|
125,237 |
|
|
|
53,139 |
|
|
|
41,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs of revenue |
|
|
4,081,382 |
|
|
|
2,544,870 |
|
|
|
1,545,105 |
|
|
|
965,738 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
511,169 |
|
|
$ |
291,756 |
|
|
$ |
189,194 |
|
|
$ |
119,808 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
|
11.1 |
% |
|
|
10.3 |
% |
|
|
10.9 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: other costs of revenue |
|
|
141,188 |
|
|
|
125,237 |
|
|
|
53,139 |
|
|
|
41,137 |
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution |
|
$ |
652,357 |
|
|
$ |
416,993 |
|
|
$ |
242,333 |
|
|
$ |
160,945 |
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution margin |
|
|
14.2 |
% |
|
|
14.7 |
% |
|
|
14.0 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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)
Fred Pensotti (CFO)
Landstar System, Inc.
www.landstar.com
904-398-9400
Landstar System (NASDAQ:LSTR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Landstar System (NASDAQ:LSTR)
Historical Stock Chart
From Jul 2023 to Jul 2024