Landstar System, Inc. (NASDAQ:LSTR) reported record quarterly
revenue of $1.945 billion in the 2021 fourth quarter, a 50 percent
increase over revenue of $1.296 billion in the 2020 fourth quarter.
The Company also reported net income of $113.3 million, or diluted
earnings per share (“DEPS”) of $2.99, in the 2021 fourth quarter
compared to net income in the 2020 fourth quarter of $65.1 million,
or DEPS of $1.70. It should be noted that DEPS in the 2020 fourth
quarter included a one-time charge of $15.5 million, or $0.31 per
diluted share, related to buyouts of certain incentive commission
arrangements with several Landstar independent sales agents.
Operating income grew to an all-time quarterly record of $148.7
million in the 2021 fourth quarter, compared to operating income of
$84.4 million in the 2020 fourth quarter. To put the strength of
our 2021 fourth quarter performance into perspective, revenue,
operating income, net income and DEPS increased 50 percent, 76
percent, 74 percent and 76 percent, respectively, over the 2020
fourth quarter, which at the time represented the highest amounts
achieved for each of these financial metrics in any quarter in the
Company’s history.
Gross profit in the 2021 fourth quarter was
$209.8 million, an all-time quarterly record, compared to $141.7
million in the 2020 fourth quarter. Variable contribution (defined
as revenue less the costs of purchased transportation and
commissions to agents) also reached an all-time quarterly record of
$263.3 million in the 2021 fourth quarter compared to $182.4
million in the 2020 fourth quarter. A reconciliation of gross
profit to variable contribution and gross profit margin to variable
contribution margin for the 2021 and 2020 fourth quarters and
year-to-date periods is provided in the Company’s accompanying
financial disclosures.
Trailing twelve-month return on average
shareholders’ equity was 47 percent and return on invested capital,
representing net income divided by the sum of average equity plus
average debt, was 42 percent. During the 2021 fourth quarter,
Landstar purchased approximately 417,000 shares of its common
stock, bringing the total number of shares purchased in fiscal year
2021 to approximately 734,000 at an aggregate cost of $122.7
million. The Company is currently authorized to purchase up to
3,000,000 additional 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 $0.25 per share payable on March 11, 2022, to stockholders of
record as of the close of business on February 14, 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 2021 fourth quarter was $1.745 billion, or 90
percent of revenue, compared to $1.202 billion, or 93 percent of
revenue, in the 2020 fourth quarter. Revenue hauled by rail, air
and ocean cargo carriers was $174.6 million, or 9 percent of
revenue, in the 2021 fourth quarter compared to approximately $75.7
million, or 6 percent of revenue, in the 2020 fourth quarter.
Truckload transportation revenue hauled via van
equipment in the 2021 fourth quarter was $1.024 billion, an
increase of 45 percent compared to $706.7 million in the 2020
fourth quarter. Truckload transportation revenue hauled
via unsided/platform equipment in the 2021 fourth quarter was
$436.7 million, an increase of 40 percent compared to $311.3
million in the 2020 fourth quarter. Other truck
transportation revenue, which includes power only, expedited,
straight truck, cargo van and miscellaneous other truck
transportation revenue, in the 2021 fourth quarter was $252.4
million, an increase of 61 percent compared to $157.1 million in
the 2020 fourth quarter.
“Following a record-breaking 2021 third quarter,
the 2021 fourth quarter once again reset the standard as the best
quarterly financial performance in Landstar history. 2021 fourth
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 2021 fourth quarter grew 22 percent
compared to the 2020 fourth quarter, which at the time was the
highest quarterly load volume hauled by truck in Landstar history.
Additionally, fourth quarter truck loadings increased from the 2021
third quarter by 7 percent, the largest ever increase in truck
loadings from the third quarter to a 13-week fourth quarter in
Landstar history. Our 2021 fourth quarter performance was
particularly impressive considering we were following an already
record-setting third quarter, and, in most years, load volume
hauled by truck stays relatively flat sequentially from the third
quarter to the fourth 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, similar to the rest of
2021, continued to be a big driver of freight activity.”
Gattoni continued, “In our 2021 third quarter
earnings release on October 20, 2021, we provided fourth quarter
revenue and diluted earnings per share guidance. We updated that
initial guidance on November 30, 2021, via a Form 8-K filed with
the SEC that revised our initial guidance upwards based on trends
in volume and rates through the first eight weeks of the fourth
quarter. Based on our expectations for volume and pricing on loads
hauled by truck, our November 30th updated guidance anticipated
that revenue would be in the range of $1.85 billion to $1.90
billion and diluted earnings per share would be in the range of
$2.83 to $2.93. Actual 2021 fourth quarter revenue was $1.945
billion and DEPS was $2.99, each exceeding the top end of our
November 30th updated guidance ranges. The revenue upside to our
updated guidance was entirely due to continued strength in revenue
generated by ocean and air cargo carriers. The DEPS performance
above our updated guidance was attributable to higher than
anticipated revenue and approximately a $0.04 DEPS benefit
generated by a slightly lower than anticipated effective income tax
rate.”
Gattoni continued, “As we look to the 2022 first
quarter, we anticipate continued solid performance on the
expectation that ongoing capacity constraints will support a strong
freight environment in the near term. The strength in revenue per
load on loads hauled via truck and the number of loads hauled via
truck experienced in 2021 has continued into the first few weeks of
January. Typically, revenue in the first quarter is expected to be
lower than the revenue of the immediately preceding fourth quarter.
Regardless, I expect the strong trends in revenue per load and
loads hauled via truck to continue as we move through the remainder
of the 2022 first quarter. As such, I expect revenue per load on
loads hauled via truck to increase 14 to 17 percent and loads
hauled via truck to increase by 12 to 14 percent, respectively, in
the 2022 first quarter over the 2021 first quarter. Given those
assumptions, I anticipate revenue for the 2022 first 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
4.2 percent of BCO revenue and an effective income tax rate of 22.4
percent, which represents the Company’s annual estimated effective
income tax rate of 24.2 percent, net of a discrete item related to
equity compensation specific to the 2022 first quarter, I
anticipate diluted earnings per share to be in a range of $2.70 to
$2.80 in the 2022 first quarter.”
Gattoni continued, “Landstar’s financial
performance in fiscal year 2021 was by far the best in the
Company’s history. Revenue in fiscal 2021 was
approximately $6.5 billion, an annual record, and was
approximately $1.9 billion higher than the previous
record set in 2018. Gross profit and variable contribution in 2021
were $721 million and $916 million, respectively, both also
representing new annual records. Operating income in 2021 was an
annual record of $506 million and represented
year-over-year growth of 100 percent. Diluted earnings per share in
2021 was an annual record of $9.98, an increase of $3.80, or
61 percent from our prior fiscal year record of $6.18 in 2018. The
Company also established numerous operational high-water marks in
fiscal year 2021 on the strength of over 2.4 million loads hauled
via truck capacity, the highest number of loads hauled via truck in
any year in Landstar history. We ended 2021 with a
year-end record number of trucks provided by BCOs and a record
approved third-party truck brokerage carrier count.”
Gattoni concluded, “These 2021 achievements
speak to the strength and depth of the Landstar network,
the ability of the Company and our agents to profitably scale
operations to handle significantly higher volumes, and the power of
our unique capacity network to execute. I am extremely
pleased by our continued organic load volume growth and our ability
to attract productive agents and capacity to the network.
Landstar’s performance in 2021 was truly remarkable, and we now
enter 2022 with a sense of accomplishment, looking forward to
another exciting 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 Fourth Quarter 2021 Earnings Release
Conference Call.”
About Landstar:Landstar System,
Inc. 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 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; 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
Fiscal Quarters Ended |
|
|
|
|
|
|
December 25, |
|
December 26, |
|
December 25, |
|
December 26, |
|
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
6,537,568 |
|
$ |
4,132,981 |
|
$ |
1,945,017 |
|
$ |
1,296,355 |
Investment income |
|
|
|
2,857 |
|
|
3,399 |
|
|
719 |
|
|
683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
5,114,667 |
|
|
3,192,850 |
|
|
1,531,470 |
|
|
1,009,707 |
Commissions to agents |
|
|
507,209 |
|
|
340,780 |
|
|
150,212 |
|
|
104,290 |
Other operating costs, net of gains on asset
sales/dispositions |
|
|
36,531 |
|
|
30,463 |
|
|
9,414 |
|
|
7,428 |
Insurance and claims |
|
|
|
105,463 |
|
|
87,773 |
|
|
30,265 |
|
|
21,210 |
Selling, general and administrative |
|
|
221,278 |
|
|
167,633 |
|
|
62,558 |
|
|
42,854 |
Depreciation and amortization |
|
|
49,609 |
|
|
45,855 |
|
|
13,077 |
|
|
11,643 |
Impairment of intangible and other assets |
|
|
- |
|
|
2,582 |
|
|
- |
|
|
- |
Commission program termination costs |
|
|
- |
|
|
15,494 |
|
|
- |
|
|
15,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
6,034,757 |
|
|
3,883,430 |
|
|
1,796,996 |
|
|
1,212,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
505,668 |
|
|
252,950 |
|
|
148,740 |
|
|
84,412 |
Interest and debt expense |
|
|
3,976 |
|
|
3,953 |
|
|
1,002 |
|
|
1,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
501,692 |
|
|
248,997 |
|
|
147,738 |
|
|
83,395 |
Income taxes |
|
|
|
|
120,168 |
|
|
56,891 |
|
|
34,423 |
|
|
18,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
381,524 |
|
$ |
192,106 |
|
$ |
113,315 |
|
$ |
65,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
9.98 |
|
$ |
4.98 |
|
$ |
2.99 |
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
|
|
38,235,000 |
|
|
38,602,000 |
|
|
37,917,000 |
|
|
38,389,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share |
|
$ |
2.92 |
|
$ |
2.79 |
|
$ |
2.25 |
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
Consolidated
Balance Sheets |
(Dollars in
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 25, |
|
December 26, |
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
215,522 |
|
|
$ |
249,354 |
|
Short-term investments |
|
|
|
35,778 |
|
|
|
41,375 |
|
Trade accounts receivable, less allowance |
|
|
|
of $7,074 and $8,670 |
|
|
|
1,154,314 |
|
|
|
764,169 |
|
Other receivables, including advances to independent |
|
|
|
contractors, less allowance of $8,125 and $7,239 |
|
101,124 |
|
|
|
134,757 |
|
Other current assets |
|
|
|
16,162 |
|
|
|
18,520 |
|
Total current assets |
|
|
|
1,522,900 |
|
|
|
1,208,175 |
|
|
|
|
|
|
|
|
|
|
|
Operating property, less accumulated depreciation |
|
|
|
and amortization of $344,099 and $299,407 |
|
317,386 |
|
|
|
296,996 |
|
Goodwill |
|
|
|
|
|
40,768 |
|
|
|
40,949 |
|
Other assets |
|
|
|
|
164,411 |
|
|
|
107,679 |
|
Total assets |
|
|
|
$ |
2,045,465 |
|
|
$ |
1,653,799 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
|
Cash overdraft |
|
|
$ |
116,478 |
|
|
$ |
74,748 |
|
Accounts payable |
|
|
|
604,130 |
|
|
|
380,505 |
|
Current maturities of long-term debt |
|
36,561 |
|
|
|
35,415 |
|
Insurance claims |
|
|
|
46,896 |
|
|
|
149,774 |
|
Dividends payable |
|
|
|
75,387 |
|
|
|
76,770 |
|
Other current liabilities |
|
|
|
130,531 |
|
|
|
88,925 |
|
Total current liabilities |
|
|
|
1,009,983 |
|
|
|
806,137 |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, excluding current maturities |
|
75,243 |
|
|
|
65,359 |
|
Insurance claims |
|
|
|
49,509 |
|
|
|
38,867 |
|
Deferred income taxes and other non-current liabilities |
|
48,720 |
|
|
|
51,601 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common stock, $0.01 par value, authorized 160,000,000 |
|
|
|
shares, issued 68,232,975 and 68,183,702 |
|
682 |
|
|
|
682 |
|
Additional paid-in capital |
|
|
|
255,148 |
|
|
|
228,875 |
|
Retained earnings |
|
|
|
2,317,184 |
|
|
|
2,046,238 |
|
Cost of 30,539,235 and 29,797,639 shares of common |
|
|
|
stock in treasury |
|
|
|
(1,705,601 |
) |
|
|
(1,581,961 |
) |
Accumulated other comprehensive loss |
|
(5,403 |
) |
|
|
(1,999 |
) |
Total shareholders' equity |
|
|
|
862,010 |
|
|
|
691,835 |
|
Total liabilities and shareholders' equity |
$ |
2,045,465 |
|
|
$ |
1,653,799 |
|
|
|
|
|
|
|
|
|
|
|
|
Landstar
System, Inc. and Subsidiary |
|
Supplemental
Information |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
|
Fiscal Quarters Ended |
|
|
|
|
|
December 25, |
|
December 26, |
|
|
December 25, |
|
December 26, |
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
2020 |
|
Revenue generated through (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
$ |
3,525,830 |
|
|
$ |
2,192,254 |
|
|
|
$ |
1,023,805 |
|
|
$ |
706,702 |
|
|
|
|
Unsided/platform equipment |
|
|
1,549,037 |
|
|
|
1,119,272 |
|
|
|
|
436,679 |
|
|
|
311,306 |
|
|
|
Less-than-truckload |
|
|
117,505 |
|
|
|
97,546 |
|
|
|
|
31,954 |
|
|
|
26,562 |
|
|
|
|
|
|
|
770,846 |
|
|
|
406,709 |
|
|
|
|
252,374 |
|
|
|
157,124 |
|
|
|
|
Total truck
transportation |
|
|
5,963,218 |
|
|
|
3,815,781 |
|
|
|
|
1,744,812 |
|
|
|
1,201,694 |
|
|
Rail intermodal |
|
|
159,974 |
|
|
|
114,313 |
|
|
|
|
39,434 |
|
|
|
32,566 |
|
|
Ocean and air cargo carriers |
|
|
327,160 |
|
|
|
132,180 |
|
|
|
|
135,209 |
|
|
|
43,178 |
|
|
|
|
|
|
|
87,216 |
|
|
|
70,707 |
|
|
|
|
25,562 |
|
|
|
18,917 |
|
|
|
|
|
|
$ |
6,537,568 |
|
|
$ |
4,132,981 |
|
|
|
$ |
1,945,017 |
|
|
$ |
1,296,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
$ |
2,612,188 |
|
|
$ |
1,866,526 |
|
|
|
$ |
712,875 |
|
|
$ |
554,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loads: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
|
1,422,734 |
|
|
|
1,141,261 |
|
|
|
|
385,218 |
|
|
|
318,839 |
|
|
|
|
Unsided/platform equipment |
|
|
521,891 |
|
|
|
458,550 |
|
|
|
|
140,297 |
|
|
|
119,854 |
|
|
|
Less-than-truckload |
|
|
183,975 |
|
|
|
163,024 |
|
|
|
|
48,937 |
|
|
|
43,491 |
|
|
|
|
|
|
|
300,710 |
|
|
|
206,305 |
|
|
|
|
92,308 |
|
|
|
64,636 |
|
|
|
|
Total truck
transportation |
|
|
2,429,310 |
|
|
|
1,969,140 |
|
|
|
|
666,760 |
|
|
|
546,820 |
|
|
Rail intermodal |
|
|
52,310 |
|
|
|
46,280 |
|
|
|
|
11,890 |
|
|
|
12,870 |
|
|
Ocean and air cargo carriers |
|
|
41,450 |
|
|
|
31,900 |
|
|
|
|
11,800 |
|
|
|
9,180 |
|
|
|
|
|
|
|
2,523,070 |
|
|
|
2,047,320 |
|
|
|
|
690,450 |
|
|
|
568,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in total truck transportation |
|
|
1,039,630 |
|
|
|
945,210 |
|
|
|
|
266,360 |
|
|
|
251,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per load: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck transportation |
|
|
|
|
|
|
|
|
|
|
|
Truckload: |
|
|
|
|
|
|
|
|
|
|
|
|
Van
equipment |
|
$ |
2,478 |
|
|
$ |
1,921 |
|
|
|
$ |
2,658 |
|
|
$ |
2,216 |
|
|
|
|
Unsided/platform equipment |
|
|
2,968 |
|
|
|
2,441 |
|
|
|
|
3,113 |
|
|
|
2,597 |
|
|
|
Less-than-truckload |
|
|
639 |
|
|
|
598 |
|
|
|
|
653 |
|
|
|
611 |
|
|
|
|
|
|
|
2,563 |
|
|
|
1,971 |
|
|
|
|
2,734 |
|
|
|
2,431 |
|
|
|
|
Total truck
transportation |
|
|
2,455 |
|
|
|
1,938 |
|
|
|
|
2,617 |
|
|
|
2,198 |
|
|
Rail intermodal |
|
|
3,058 |
|
|
|
2,470 |
|
|
|
|
3,317 |
|
|
|
2,530 |
|
|
Ocean and air cargo carriers |
|
|
7,893 |
|
|
|
4,144 |
|
|
|
|
11,458 |
|
|
|
4,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,513 |
|
|
$ |
1,975 |
|
|
|
$ |
2,676 |
|
|
$ |
2,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by capacity type (as a % of total revenue): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truck capacity providers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 |
% |
|
|
45 |
% |
|
|
|
37 |
% |
|
|
43 |
% |
|
|
Truck Brokerage Carriers |
|
|
51 |
% |
|
|
47 |
% |
|
|
|
53 |
% |
|
|
50 |
% |
|
Rail intermodal |
|
|
2 |
% |
|
|
3 |
% |
|
|
|
2 |
% |
|
|
3 |
% |
|
Ocean and air cargo carriers |
|
|
5 |
% |
|
|
3 |
% |
|
|
|
7 |
% |
|
|
3 |
% |
|
Other |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
|
1 |
% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 25, |
|
December 26, |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
Truck Capacity Providers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,057 |
|
|
|
10,242 |
|
|
Truck Brokerage Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,476 |
|
|
|
46,053 |
|
|
Other approved |
|
|
|
|
|
|
|
25,870 |
|
|
|
22,972 |
|
|
|
|
|
|
|
|
|
|
|
|
90,346 |
|
|
|
69,025 |
|
|
Total available truck capacity providers |
|
|
|
|
|
|
|
101,403 |
|
|
|
79,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,864 |
|
|
|
10,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 25, |
|
December 26, |
|
December 25, |
|
December 26, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
6,537,568 |
|
|
$ |
4,132,981 |
|
|
$ |
1,945,017 |
|
|
$ |
1,296,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of revenue: |
|
|
|
|
|
|
|
|
|
|
|
Purchased transportation |
|
|
5,114,667 |
|
|
|
3,192,850 |
|
|
|
1,531,470 |
|
|
|
1,009,707 |
|
|
|
Commissions to agents |
|
|
507,209 |
|
|
|
340,780 |
|
|
|
150,212 |
|
|
|
104,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable costs of revenue |
|
|
5,621,876 |
|
|
|
3,533,630 |
|
|
|
1,681,682 |
|
|
|
1,113,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing equipment depreciation |
|
|
35,204 |
|
|
|
34,892 |
|
|
|
8,842 |
|
|
|
8,550 |
|
|
|
Information technology costs (1) |
|
|
13,560 |
|
|
|
9,791 |
|
|
|
4,026 |
|
|
|
2,770 |
|
|
|
Insurance-related costs (2) |
|
|
109,387 |
|
|
|
90,778 |
|
|
|
31,212 |
|
|
|
21,939 |
|
|
|
Other operating costs |
|
|
36,531 |
|
|
|
30,463 |
|
|
|
9,414 |
|
|
|
7,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs of revenue |
|
|
194,682 |
|
|
|
165,924 |
|
|
|
53,494 |
|
|
|
40,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs of revenue |
|
|
5,816,558 |
|
|
|
3,699,554 |
|
|
|
1,735,176 |
|
|
|
1,154,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
$ |
721,010 |
|
|
$ |
433,427 |
|
|
$ |
209,841 |
|
|
$ |
141,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
|
|
11.0 |
% |
|
|
10.5 |
% |
|
|
10.8 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: other costs of revenue |
|
|
194,682 |
|
|
|
165,924 |
|
|
|
53,494 |
|
|
|
40,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution |
|
|
$ |
915,692 |
|
|
$ |
599,351 |
|
|
$ |
263,335 |
|
|
$ |
182,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable contribution margin |
|
|
14.0 |
% |
|
|
14.5 |
% |
|
|
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)
Fred Pensotti (CFO)
Landstar System, Inc.
www.landstar.com
904-398-9400
Landstar System (NASDAQ:LSTR)
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