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Fourth-quarter performance of Landstar

Key takeaways from Landstar System’s 4Q14 and full-year results (Part 2 of 6)

(Continued from Part 1)

Quarterly earnings

In 4Q14, revenues for Landstar (LSTR) grew by $1.71 million or 25% YoY (or year-over-year) to $863 million. Earnings per share also increased by 56% YoY to reach $0.86.

This growth in revenues came across various industry segments, customers, and geographic regions. The revenue contributed by Landstar’s top 100 customers also increased by $45 million from the same quarter last year, while revenue from customers outside of the top 100 increased $126 million.

Fiscal 2014

Fiscal 2014 a very successful year for Landstar. The company’s annual revenue, gross profit, income, and earnings all reached annual records. The freight transportation environment during the year also provided Landstar with significant opportunities to increase the account base and strengthen the company’s relationships with smaller customers.

Landstar added more BCOs (or business capacity operators) in 2014 than in any other year. The year also had the highest number of truck broker carriers hauling compared to any year in the company’s history. The year ended with record levels of approved and active carrier count, the number of loads hauled via truck, and average revenue per load on those loads.

The company’s top 100 customers contributed 40% of the year’s total revenues. Revenues from the company’s existing agents grew by 18% for the year, while new agents generated $121 million in revenues. Landstar also ended 2014 with a total truck capacity network of over 46,000 providers—more than 1,300 over the 2014 third quarter and 6,700 over fiscal 2013.

The year also saw a new Dallas and Fort Worth facility, which provides new shipment-tracking tools to the agent family. Plus, the company launched Landstar Connect, a smartphone-enabled GPS tracking tool that helps BCOs and broker carriers provide timely in-transit freight visibility.

LSTR’s competitors include Knight Transportation (KNX), Old Dominion Freight Line (ODFL), and Saia (SAIA). These companies are part of the First Trust Industrials and Producer Durables AlphaDEX Fund (FXR).

Continue to Part 3

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