U.S. markets closed
  • S&P 500

    4,280.15
    +72.88 (+1.73%)
     
  • Dow 30

    33,761.05
    +424.38 (+1.27%)
     
  • Nasdaq

    13,047.19
    +267.27 (+2.09%)
     
  • Russell 2000

    2,016.62
    +41.36 (+2.09%)
     
  • Crude Oil

    91.88
    -2.46 (-2.61%)
     
  • Gold

    1,818.90
    +11.70 (+0.65%)
     
  • Silver

    20.83
    +0.49 (+2.39%)
     
  • EUR/USD

    1.0257
    -0.0068 (-0.66%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • GBP/USD

    1.2139
    -0.0064 (-0.52%)
     
  • USD/JPY

    133.4800
    +0.4810 (+0.36%)
     
  • BTC-USD

    24,484.09
    +576.87 (+2.41%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     

Landstar System Reports Record Second Quarter Revenue of $1.975B and Diluted Earnings Per Share of $3.05

  • Oops!
    Something went wrong.
    Please try again later.
·17 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Landstar System, Inc.
Landstar System, Inc.

JACKSONVILLE, Fla., July 20, 2022 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) reported revenue of $1.975 billion in the 2022 second quarter, a 26 percent increase over revenue of $1.571 billion in the 2021 second quarter; quarterly net income of $112.6 million, an increase of 22 percent over net income of $92.3 million in the 2021 second quarter; and quarterly diluted earnings per share (“DEPS”) of $3.05, an increase of 27 percent compared to $2.40 in the 2021 second quarter. 2022 second quarter revenue, net income and DEPS each established new all-time second quarter records for Landstar.

Gross profit in the 2022 second quarter was $208.1 million, a second quarter record and 19 percent above 2021 second quarter gross profit of $174.8 million. Variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2022 second quarter also reached a second quarter record of $267.5 million, 21 percent above 2021 second quarter variable contribution of $220.8 million. A reconciliation of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2022 and 2021 second quarters and year-to-date periods is provided in the Company’s accompanying financial disclosures.

Trailing twelve month return on average shareholders’ equity was 52 percent and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 46 percent. Landstar continues to return significant amounts of capital to stockholders through the Company’s stock purchase program and dividends. During the 2022 second quarter, Landstar purchased approximately 703,000 shares of its common stock at an aggregate cost of $103.3 million, bringing the total number of common shares purchased during the twenty-six weeks ended June 25, 2022 to 1,397,000 shares at an aggregate cost of approximately $212.6 million. The Company is currently authorized to purchase up to an additional 1,603,239 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 $0.30 per share payable on August 26, 2022, to stockholders of record as of the close of business on August 8, 2022. This quarterly dividend includes a $0.05 per share increase, or 20 percent, over the amount of the Company’s regular quarterly dividend declared following each of the prior four quarters. The $0.05 per share increase is the largest increase in the Company’s regularly scheduled quarterly dividend in the Company’s history. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.

Also, as previously disclosed in a Form 8-K filed with the SEC on July 8, 2022, Landstar entered into a Second Amended and Restated Credit Agreement, dated July 1, 2022, with a bank syndicate led by J.P. Morgan Chase that, among other things, extended the termination date of the credit facility to July 2027, and increased the size of the facility from $250 million to $300 million (with an “accordion” feature providing for possible increase up to an aggregate amount of $600 million). As of June 25, 2022, Landstar had no outstanding borrowings under its revolving credit facility.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2022 second quarter was $1,747.2 million, or 88 percent of revenue, compared to $1,444.2 million, or 92 percent of revenue, in the 2021 second quarter. Truckload transportation revenue hauled via van equipment in the 2022 second quarter was $1,026.9 million, compared to $854.5 million in the 2021 second quarter, an increase of 20 percent. Truckload transportation revenue hauled via unsided/platform equipment in the 2022 second quarter was $474.3 million, compared to $391.9 million in the 2021 second quarter, an increase of 21 percent. Revenue from other truck transportation, which is largely related to power-only services, in the 2022 second quarter was $209.1 million, compared to $168.7 million in the 2021 second quarter, an increase of 24 percent. Revenue hauled by rail, air and ocean cargo carriers was $202.3 million, or 10 percent of revenue, in the 2022 second quarter, compared to $104.6 million, or 7 percent of revenue, in the 2021 second quarter, an increase of 93 percent.

“Customer demand for our freight transportation services remained strong during the 2022 second quarter,” said Landstar President and CEO Jim Gattoni. “The number of loads hauled via truck in the 2022 second quarter increased 10 percent over the 2021 second quarter. Although slightly below the low end of our second quarter 2022 guidance issued in our 2022 first quarter earnings release on April 20, 2022, truck load volume growth continued to be impressive given tough year-over-year comparisons and an overall shift of consumer spending from goods to services. Similarly, revenue per truck load in the 2022 second quarter was 10 percent above the 2021 second quarter and remained very strong compared to historical levels. Revenue per load on loads hauled via truck also came in below our April 20 second quarter guidance, mostly due to a deceleration in the rate of year-over-year growth beginning in May. Truck revenue per load decreased approximately 4 percent sequentially from April to May, which was not anticipated in the 2022 second quarter guidance. It should also be noted that the year-over-year increase in revenue per truck load was partly impacted by a 6 percent decrease in the average length of haul in the 2022 second quarter compared to the 2021 second quarter.”

Gattoni continued, “Landstar’s business model continued to perform well during the 2022 second quarter. The Company achieved a 27 percent increase in DEPS on a 26 percent increase in revenue, in both cases as compared to the 2021 second quarter. DEPS was 5 percent below the low-end of the second quarter guidance we provided on April 20, 2022. In addition to the impact of the shortfalls versus expectations in truck loads and revenue per load discussed above, Landstar also experienced higher than expected insurance and claims cost of 4.9 percent of BCO revenue in the 2022 second quarter, driven mostly by two tragic vehicular accidents that occurred during the quarter.”

Gattoni further commented, “There is a lot of unease regarding U.S. economic conditions as we head into the third quarter. On a macroeconomic level, the record low level of consumer confidence and high level of inflation being reported along with possible further action by the Federal Reserve to address inflation at the risk of causing further recessionary pressure all add significant uncertainty to the performance of the overall domestic freight environment. Additionally, comparisons to prior year results become more challenging for Landstar as we move through the back half of 2022, given the strength our business experienced during the back half of fiscal year 2021. Historically, in most years truck revenue per load in July has slightly exceeded that of June. Through the first several weeks of July, overall truck revenue per load has been fairly consistent with the truck revenue per load we experienced in fiscal May and June 2022. Given the current operating environment, I view Landstar’s relatively stable revenue per load since May as a positive. Given this backdrop and recent revenue trends, I expect truck revenue per load in the 2022 third quarter to be essentially equal to that of the 2021 third quarter and the number of loads hauled via truck to increase over the 2021 third quarter in a range of 3 percent to 5 percent. As such, I anticipate revenue for the 2022 third quarter to be in a range of $1.80 billion to $1.85 billion.”

Gattoni concluded, “Based on the range of revenue estimated for the 2022 third quarter, I would anticipate DEPS to be in a range of $2.75 to $2.85. This range of DEPS includes insurance and claims expense estimated at 4.2 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 Second 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 2021 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-Q for the 2022 first fiscal quarter, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twenty Six Weeks Ended

 

Thirteen Weeks Ended

 

 

 

 

 

 

 

June 25,

 

June 26,

 

June 25,

 

June 26,

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

3,945,663

 

$

2,858,252

 

$

1,975,064

 

$

1,570,718

 

Investment income

 

 

 

1,307

 

 

1,432

 

 

586

 

 

748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

3,096,018

 

 

2,226,526

 

 

1,545,688

 

 

1,228,241

 

 

Commissions to agents

 

 

311,634

 

 

221,702

 

 

161,856

 

 

121,693

 

 

Other operating costs, net of gains on asset sales/dispositions

 

 

21,522

 

 

16,545

 

 

10,381

 

 

8,903

 

 

Insurance and claims

 

 

 

64,820

 

 

45,629

 

 

34,052

 

 

24,124

 

 

Selling, general and administrative

 

 

111,680

 

 

99,522

 

 

58,967

 

 

54,114

 

 

Depreciation and amortization

 

 

28,045

 

 

24,244

 

 

14,288

 

 

12,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

 

3,633,719

 

 

2,634,168

 

 

1,825,232

 

 

1,449,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

313,251

 

 

225,516

 

 

150,418

 

 

122,248

 

Interest and debt expense

 

 

2,228

 

 

2,009

 

 

1,105

 

 

967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

311,023

 

 

223,507

 

 

149,313

 

 

121,281

 

Income taxes

 

 

 

 

73,629

 

 

53,973

 

 

36,758

 

 

28,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

$

237,394

 

$

169,534

 

$

112,555

 

$

92,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

6.39

 

$

4.41

 

$

3.05

 

$

2.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

 

37,162,000

 

 

38,403,000

 

 

36,905,000

 

 

38,402,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.50

 

$

0.42

 

$

0.25

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landstar System, Inc. and Subsidiary

 

Consolidated Balance Sheets

 

(Dollars in thousands, except per share amounts)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 25,

 

December 25,

 

 

 

 

 

 

 

 

2022

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

78,220

 

 

$

215,522

 

 

 

Short-term investments

 

 

 

41,549

 

 

 

35,778

 

 

 

Trade accounts receivable, less allowance

 

 

 

 

 

 

of $9,940 and $7,074

 

 

 

1,216,518

 

 

 

1,154,314

 

 

 

Other receivables, including advances to independent

 

 

 

 

 

 

contractors, less allowance of $9,856 and $8,125

 

114,794

 

 

 

101,124

 

 

 

Other current assets

 

 

 

54,190

 

 

 

16,162

 

 

 

 

Total current assets

 

 

 

1,505,271

 

 

 

1,522,900

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating property, less accumulated depreciation and amortization of $369,344 and $344,099

 

314,191

 

 

 

317,386

 

 

Goodwill

 

 

 

 

 

40,977

 

 

 

40,768

 

 

Other assets

 

 

 

 

156,628

 

 

 

164,411

 

 

Total assets

 

 

 

$

2,017,067

 

 

$

2,045,465

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Cash overdraft

 

 

$

113,603

 

 

$

116,478

 

 

 

Accounts payable

 

 

 

670,534

 

 

 

604,130

 

 

 

Current maturities of long-term debt

 

36,827

 

 

 

36,561

 

 

 

Insurance claims

 

 

 

53,971

 

 

 

46,896

 

 

 

Dividends payable

 

 

 

-

 

 

 

75,387

 

 

 

Other current liabilities

 

 

 

102,956

 

 

 

130,531

 

 

 

 

Total current liabilities

 

 

 

977,891

 

 

 

1,009,983

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, excluding current maturities

 

73,999

 

 

 

75,243

 

 

Insurance claims

 

 

 

53,303

 

 

 

49,509

 

 

Deferred income taxes and other non-current liabilities

 

55,004

 

 

 

48,720

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 160,000,000

 

 

 

 

 

 

shares, issued 68,376,934 and 68,232,975

 

684

 

 

 

682

 

 

 

Additional paid-in capital

 

 

 

252,045

 

 

 

255,148

 

 

 

Retained earnings

 

 

 

2,535,997

 

 

 

2,317,184

 

 

 

Cost of 31,946,616 and 30,539,235 shares of common

 

 

 

 

 

 

stock in treasury

 

 

 

(1,919,535

)

 

 

(1,705,601

)

 

 

Accumulated other comprehensive loss

 

(12,321

)

 

 

(5,403

)

 

 

 

Total shareholders' equity

 

 

 

856,870

 

 

 

862,010

 

 

Total liabilities and shareholders' equity

$

2,017,067

 

 

$

2,045,465

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

Landstar System, Inc. and Subsidiary

 

Supplemental Information

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twenty Six Weeks Ended

 

 

Thirteen Weeks Ended

 

 

 

 

 

June 25,

 

June 26,

 

 

June 25,

 

June 26,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

Revenue generated through (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload:

 

 

 

 

 

 

 

 

 

 

 

 

Van equipment

 

$

2,108,143

 

 

$

1,583,911

 

 

 

$

1,026,938

 

 

$

854,509

 

 

 

 

Unsided/platform equipment

 

 

883,032

 

 

 

689,378

 

 

 

 

474,274

 

 

 

391,893

 

 

 

Less-than-truckload

 

 

70,651

 

 

 

54,732

 

 

 

 

36,931

 

 

 

29,062

 

 

 

 

 

 

 

436,656

 

 

 

309,655

 

 

 

 

209,055

 

 

 

168,723

 

 

 

 

Total truck transportation

 

 

3,498,482

 

 

 

2,637,676

 

 

 

 

1,747,198

 

 

 

1,444,187

 

 

Rail intermodal

 

 

86,110

 

 

 

76,068

 

 

 

 

43,422

 

 

 

44,360

 

 

Ocean and air cargo carriers

 

 

310,904

 

 

 

107,840

 

 

 

 

158,847

 

 

 

60,240

 

 

 

 

 

 

 

50,167

 

 

 

36,668

 

 

 

 

25,597

 

 

 

21,931

 

 

 

 

 

 

$

3,945,663

 

 

$

2,858,252

 

 

 

$

1,975,064

 

 

$

1,570,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in total truck transportation

 

$

1,415,963

 

 

$

1,209,056

 

 

 

$

688,389

 

 

$

648,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of loads:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload:

 

 

 

 

 

 

 

 

 

 

 

 

Van equipment

 

 

763,750

 

 

 

678,253

 

 

 

 

387,482

 

 

 

357,041

 

 

 

 

Unsided/platform equipment

 

 

279,345

 

 

 

248,262

 

 

 

 

147,516

 

 

 

133,999

 

 

 

Less-than-truckload

 

 

96,828

 

 

 

85,095

 

 

 

 

48,985

 

 

 

44,403

 

 

 

 

 

 

 

166,747

 

 

 

127,160

 

 

 

 

80,817

 

 

 

67,497

 

 

 

 

Total truck transportation

 

 

1,306,670

 

 

 

1,138,770

 

 

 

 

664,800

 

 

 

602,940

 

 

Rail intermodal

 

 

24,220

 

 

 

26,800

 

 

 

 

11,590

 

 

 

15,100

 

 

Ocean and air cargo carriers

 

 

22,890

 

 

 

19,460

 

 

 

 

11,330

 

 

 

10,230

 

 

 

 

 

 

 

1,353,780

 

 

 

1,185,030

 

 

 

 

687,720

 

 

 

628,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in total truck transportation

 

 

527,830

 

 

 

510,150

 

 

 

 

265,590

 

 

 

264,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per load:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload:

 

 

 

 

 

 

 

 

 

 

 

 

Van equipment

 

$

2,760

 

 

$

2,335

 

 

 

$

2,650

 

 

$

2,393

 

 

 

 

Unsided/platform equipment

 

 

3,161

 

 

 

2,777

 

 

 

 

3,215

 

 

 

2,925

 

 

 

Less-than-truckload

 

 

730

 

 

 

643

 

 

 

 

754

 

 

 

655

 

 

 

 

 

 

 

2,619

 

 

 

2,435

 

 

 

 

2,587

 

 

 

2,500

 

 

 

 

Total truck transportation

 

 

2,677

 

 

 

2,316

 

 

 

 

2,628

 

 

 

2,395

 

 

Rail intermodal

 

 

3,555

 

 

 

2,838

 

 

 

 

3,747

 

 

 

2,938

 

 

Ocean and air cargo carriers

 

 

13,583

 

 

 

5,542

 

 

 

 

14,020

 

 

 

5,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,683

 

 

$

2,370

 

 

 

$

2,592

 

 

$

2,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by capacity type (as a % of total revenue):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck capacity providers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36

%

 

 

42

%

 

 

 

35

%

 

 

41

%

 

 

Truck Brokerage Carriers

 

 

53

%

 

 

50

%

 

 

 

54

%

 

 

51

%

 

Rail intermodal

 

 

2

%

 

 

3

%

 

 

 

2

%

 

 

3

%

 

Ocean and air cargo carriers

 

 

8

%

 

 

4

%

 

 

 

8

%

 

 

4

%

 

Other

 

 

 

1

%

 

 

1

%

 

 

 

1

%

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 25,

 

June 26,

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

2021

 

Truck Capacity Providers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,023

 

 

 

10,778

 

 

Truck Brokerage Carriers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

70,649

 

 

 

53,891

 

 

Other approved

 

 

 

 

 

 

 

29,454

 

 

 

24,098

 

 

 

 

 

 

 

 

 

 

 

 

100,103

 

 

 

77,989

 

 

Total available truck capacity providers

 

 

 

 

 

 

 

111,126

 

 

 

88,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,887

 

 

 

11,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twenty Six Weeks Ended

 

Thirteen Weeks Ended

 

 

 

 

 

 

 

 

 

June 25,

 

June 26,

 

June 25,

 

June 26,

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

3,945,663

 

 

$

2,858,252

 

 

$

1,975,064

 

 

$

1,570,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

3,096,018

 

 

 

2,226,526

 

 

 

1,545,688

 

 

 

1,228,241

 

 

 

 

 

 

Commissions to agents

 

 

311,634

 

 

 

221,702

 

 

 

161,856

 

 

 

121,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable costs of revenue

 

 

3,407,652

 

 

 

2,448,228

 

 

 

1,707,544

 

 

 

1,349,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trailing equipment depreciation

 

 

18,363

 

 

 

17,747

 

 

 

9,280

 

 

 

8,840

 

 

 

 

 

 

Information technology costs (1)

 

 

9,039

 

 

 

6,084

 

 

 

4,993

 

 

 

3,146

 

 

 

 

 

 

Insurance-related costs (2)

 

 

66,441

 

 

 

47,673

 

 

 

34,786

 

 

 

25,051

 

 

 

 

 

 

Other operating costs

 

 

21,522

 

 

 

16,545

 

 

 

10,381

 

 

 

8,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other costs of revenue

 

 

115,365

 

 

 

88,049

 

 

 

59,440

 

 

 

45,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs of revenue

 

 

3,523,017

 

 

 

2,536,277

 

 

 

1,766,984

 

 

 

1,395,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

$

422,646

 

 

$

321,975

 

 

$

208,080

 

 

$

174,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit margin

 

 

 

10.7

%

 

 

11.3

%

 

 

10.5

%

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: other costs of revenue

 

 

115,365

 

 

 

88,049

 

 

 

59,440

 

 

 

45,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable contribution

 

 

$

538,011

 

 

$

410,024

 

 

$

267,520

 

 

$

220,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable contribution margin

 

 

13.6

%

 

 

14.3

%

 

 

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)
Jim Todd (CFO)
Landstar System, Inc.
www.landstar.com
904-398-9400