UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On October 23, 2019, Landstar System, Inc. (“Landstar” or the “Company”) issued a press release announcing results for the third quarter of fiscal 2019. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 7.01 concerning the presentation to Landstar investors is hereby incorporated into this Item 2.02 by reference.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 7.01 | Regulation FD Disclosure |
A slide presentation, dated October 23, 2019, is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The slide presentation provides information that may be referred to by the Company on its conference call with investors scheduled to occur on October 24, 2019 in connection with the Company’s release of results for the third quarter of fiscal 2019.
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits |
| Exhibits |
||||
| 99.1 |
News Release dated October 23, 2019 of Landstar System, Inc. | |||
| 99.2 |
Slide Presentation dated October 23, 2019 of Landstar System, Inc. | |||
| 104 |
Inline XBRL for the cover page of this Current Report on Form 8-K | |||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LANDSTAR SYSTEM, INC. | ||||||
| Date: October 23, 2019 |
|
By: |
/s/ L. Kevin Stout | |||
| Name: |
L. Kevin Stout | |||||
| Title: |
Vice President and Chief Financial Officer | |||||
Exhibit 99.1
| For Immediate Release | Contact: Kevin Stout | |
| Landstar System, Inc. | ||
| www.landstar.com | ||
| October 23, 2019 | 904-398-9400 |
LANDSTAR SYSTEM REPORTS THIRD QUARTER
REVENUE OF $1.012 BILLION AND
DILUTED EARNINGS PER SHARE OF $1.35
Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported diluted earnings per share of $1.35 in the 2019 third quarter on revenue of $1.012 billion. Landstar reported diluted earnings per share of $1.63 on revenue of $1.202 billion in the 2018 third quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $152.6 million in the 2019 third quarter compared to $171.3 million in the 2018 third quarter. Operating margin, representing operating income divided by gross profit, was 46.3 percent in the 2019 third quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2019 third quarter was $932.2 million, or 92 percent of revenue, compared to $1.118 billion, or 93 percent of revenue, in the 2018 third quarter. Truckload transportation revenue hauled via van equipment in the 2019 third quarter was $575.0 million compared to $717.0 million in the 2018 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2019 third quarter was $331.8 million compared to $375.7 million in the 2018 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $59.3 million, or 6 percent of revenue, in the 2019 third quarter compared to $65.7 million, or 5 percent of revenue, in the 2018 third quarter.
LANDSTAR SYSTEM/2
Trailing twelve-month return on average shareholders’ equity was 34 percent and trailing twelve-month return on invested capital, representing net income divided by the sum of average equity plus average debt, was 29 percent. Landstar purchased approximately 175,000 shares of its common stock during the 2019 third quarter at an aggregate cost of approximately $18.8 million. Currently, the Company is authorized to purchase up to approximately 1,151,000 shares of the Company’s common stock under Landstar’s previously announced share purchase programs. 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. Landstar also announced today that its Board of Directors has declared a quarterly dividend of $0.185 per share payable on December 6, 2019, to stockholders of record as of the close of business on November 12, 2019. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
“The current macroeconomic environment made for challenging comparisons against our record 2018 third quarter performance,” said Landstar President and Chief Executive Officer Jim Gattoni. “Softer demand, driven by slowing production in the U.S. manufacturing sector, and more readily available capacity drove Landstar’s truck rates and volumes below prior year levels in the 2019 third quarter. Overall, 2019 third quarter revenue was 16 percent below revenue of the 2018 third quarter, mostly due to a 13 percent decrease in revenue per load on loads hauled via truck and a 5 percent decrease in truck loadings. While truck revenue per load has been below prior year levels throughout 2019, truck load volumes have more recently slowed with softening demand. Truck load volumes in the 2019 third quarter fell 5 percent as compared to the 2018 third quarter, a larger decrease than the low single digit decrease anticipated in the Company’s third quarter earnings guidance issued on July 24, 2019 as part of the Company’s 2019 second quarter earnings release.”
“In our second quarter earnings release, we provided third quarter revenue guidance of $1.01 billion to $1.06 billion and third quarter diluted earnings per share guidance of $1.48 to $1.54. On September 11, 2019, we disclosed in a Form 8-K and further explained at a webcast investor conference the next day that, based on overall market conditions and the adverse financial impact of a tragic vehicular accident involving Landstar that occurred during the 2019 third quarter, we would be near the bottom end of revenue guidance and would not achieve the bottom end of the range for earnings
LANDSTAR SYSTEM/3
per diluted share provided on July 24, 2019. Revenue in the 2019 third quarter was at the low end of our previously issued guidance while diluted earnings per share fell far below our guidance, mostly due to higher insurance and claims costs than we anticipated in our initial estimate. Third quarter guidance included insurance and claims costs at 3.6 percent of BCO revenue, whereas actual insurance and claims costs were 5.1 percent of BCO revenue in the 2019 third quarter.”
Gattoni continued, “Through the first few weeks of October, the number of loads hauled via truck was below the corresponding period of 2018 in a high single-digit percentage range. I expect that trend to continue during the remainder of the 2019 fourth quarter. Accordingly, I expect the number of loads hauled via truck in the 2019 fourth quarter to be below the number of loads hauled by truck in the 2018 fourth quarter in a high single-digit percentage range. Pricing for our truck services was fairly stable on a sequential month-to-month basis during the 2019 third quarter, continuing a trend that began in the middle of the 2019 second quarter. I expect pricing to remain stable through the 2019 fourth quarter given current demand and assuming little change in the level of truck capacity available in the marketplace. Given the slowing pricing environment experienced in the 2018 fourth quarter, year-over-year comparisons should therefore ease a bit in the 2019 fourth quarter. Assuming the current macroeconomic environment continues throughout the remainder of the fourth quarter, I expect 2019 fourth quarter truck revenue per load to be lower than the 2018 fourth quarter in a high single-digit percentage range. I anticipate revenue for the 2019 fourth quarter to be in a range of $970 million to $1.02 billion. Assuming that estimated range of revenue and insurance and claims expense at 3.6 percent of BCO revenue, representing average insurance and claims costs as a percentage of BCO revenue over the past five years, I would anticipate 2019 fourth quarter diluted earnings per share to be in a range of $1.40 to $1.46 per share.”
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 2019 Earnings Release Conference Call.”
LANDSTAR SYSTEM/4
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.
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 toISO 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.
(Tables follow)
LANDSTAR SYSTEM/5
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 28, | September 29, | September 28, | September 29, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue |
$ | 3,089,698 | $ | 3,432,793 | $ | 1,011,658 | $ | 1,202,081 | ||||||||
| Investment income |
3,736 | 2,754 | 1,315 | 1,002 | ||||||||||||
| Costs and expenses: |
||||||||||||||||
| Purchased transportation |
2,365,646 | 2,658,710 | 774,520 | 931,473 | ||||||||||||
| Commissions to agents |
257,862 | 275,828 | 84,568 | 99,304 | ||||||||||||
| Other operating costs, net of gains/losses on asset sales/dispositions |
28,531 | 24,176 | 10,431 | 8,966 | ||||||||||||
| Insurance and claims |
55,248 | 57,718 | 23,969 | 18,819 | ||||||||||||
| Selling, general and administrative |
120,717 | 140,948 | 38,152 | 46,699 | ||||||||||||
| Depreciation and amortization |
33,045 | 32,520 | 10,695 | 10,754 | ||||||||||||
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|||||||||
| Total costs and expenses |
2,861,049 | 3,189,900 | 942,335 | 1,116,015 | ||||||||||||
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|||||||||
| Operating income |
232,385 | 245,647 | 70,638 | 87,068 | ||||||||||||
| Interest and debt expense |
2,278 | 2,455 | 764 | 816 | ||||||||||||
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|||||||||
| Income before income taxes |
230,107 | 243,192 | 69,874 | 86,252 | ||||||||||||
| Income taxes |
52,452 | 56,279 | 16,619 | 19,304 | ||||||||||||
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| Net income |
177,655 | 186,913 | 53,255 | 66,948 | ||||||||||||
| Less: Net loss attributable to noncontrolling interest |
(17 | ) | (112 | ) | — | (37 | ) | |||||||||
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| Net income attributable to Landstar System, Inc. and subsidiary |
$ | 177,672 | $ | 187,025 | $ | 53,255 | $ | 66,985 | ||||||||
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| Earnings per common share attributable to Landstar System, Inc. and subsidiary |
$ | 4.45 | $ | 4.50 | $ | 1.35 | $ | 1.63 | ||||||||
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| Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | 4.45 | $ | 4.50 | $ | 1.35 | $ | 1.63 | ||||||||
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|||||||||
| Average number of shares outstanding: |
||||||||||||||||
| Earnings per common share |
39,891,000 | 41,530,000 | 39,566,000 | 41,101,000 | ||||||||||||
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|||||||||
| Diluted earnings per share |
39,891,000 | 41,576,000 | 39,566,000 | 41,137,000 | ||||||||||||
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| Dividends per common share |
$ | 0.515 | $ | 0.465 | $ | 0.185 | $ | 0.165 | ||||||||
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|||||||||
LANDSTAR SYSTEM/6
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
| September 28, | December 29, | |||||||
| 2019 | 2018 | |||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 284,434 | $ | 199,736 | ||||
| Short-term investments |
31,596 | 40,058 | ||||||
| Trade accounts receivable, less allowance of $7,296 and $6,413 |
598,415 | 691,604 | ||||||
| Other receivables, including advances to independent contractors, less allowance of $8,593 and $6,216 |
25,384 | 23,744 | ||||||
| Other current assets |
30,921 | 16,287 | ||||||
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|||||
| Total current assets |
970,750 | 971,429 | ||||||
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| Operating property, less accumulated depreciation and amortization of $274,000 and $250,153 |
270,430 | 284,032 | ||||||
| Goodwill |
38,232 | 38,232 | ||||||
| Other assets |
106,319 | 86,871 | ||||||
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|||||
| Total assets |
$ | 1,385,731 | $ | 1,380,564 | ||||
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| LIABILITIES AND EQUITY |
||||||||
| Current liabilities: |
||||||||
| Cash overdraft |
$ | 44,625 | $ | 55,339 | ||||
| Accounts payable |
285,442 | 314,134 | ||||||
| Current maturities of long-term debt |
39,375 | 43,561 | ||||||
| Insurance claims |
51,320 | 40,176 | ||||||
| Accrued compensation |
10,477 | 29,489 | ||||||
| Contractor escrow |
25,521 | 25,202 | ||||||
| Other current liabilities |
26,996 | 27,917 | ||||||
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| Total current liabilities |
483,756 | 535,818 | ||||||
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| Long-term debt, excluding current maturities |
61,390 | 84,864 | ||||||
| Insurance claims |
33,024 | 30,429 | ||||||
| Deferred income taxes and other non-current liabilities |
51,586 | 40,320 | ||||||
| Equity |
||||||||
| Landstar System, Inc. and subsidiary shareholders’ equity |
||||||||
| Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,072,834 and 67,870,962 shares |
681 | 679 | ||||||
| Additional paid-in capital |
225,937 | 226,852 | ||||||
| Retained earnings |
1,998,362 | 1,841,279 | ||||||
| Cost of 28,609,926 and 27,755,001 shares of common stock in treasury |
(1,465,284 | ) | (1,376,111 | ) | ||||
| Accumulated other comprehensive loss |
(3,721 | ) | (5,875 | ) | ||||
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| Total Landstar System, Inc. and subsidiary shareholders’ equity |
755,975 | 686,824 | ||||||
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| Noncontrolling interest |
— | 2,309 | ||||||
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| Total equity |
755,975 | 689,133 | ||||||
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| Total liabilities and equity |
$ | 1,385,731 | $ | 1,380,564 | ||||
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LANDSTAR SYSTEM/7
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
| Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| September 28, | September 29, | September 28, | September 29, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue generated through (in thousands): |
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| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 1,799,421 | $ | 2,086,523 | $ | 575,042 | $ | 717,047 | ||||||||
| Unsided/platform equipment |
980,615 | 1,039,784 | 331,787 | 375,739 | ||||||||||||
| Less-than-truckload |
73,475 | 76,448 | 25,367 | 25,500 | ||||||||||||
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| Total truck transportation |
2,853,511 | 3,202,755 | 932,196 | 1,118,286 | ||||||||||||
| Rail intermodal |
87,555 | 96,026 | 28,970 | 34,439 | ||||||||||||
| Ocean and air cargo carriers |
89,258 | 82,719 | 30,365 | 31,213 | ||||||||||||
| Other (1) |
59,374 | 51,293 | 20,127 | 18,143 | ||||||||||||
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| $ | 3,089,698 | $ | 3,432,793 | $ | 1,011,658 | $ | 1,202,081 | |||||||||
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| Revenue on loads hauled via BCO Independent Contractors (2) |
$ | 1,390,135 | $ | 1,519,344 | $ | 466,207 | $ | 520,391 | ||||||||
| Number of loads: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
1,014,572 | 1,045,322 | 327,671 | 353,456 | ||||||||||||
| Unsided/platform equipment |
391,112 | 388,759 | 130,192 | 133,425 | ||||||||||||
| Less-than-truckload |
115,616 | 106,639 | 41,067 | 35,969 | ||||||||||||
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|||||||||
| Total truck transportation |
1,521,300 | 1,540,720 | 498,930 | 522,850 | ||||||||||||
| Rail intermodal |
35,370 | 40,260 | 11,490 | 13,420 | ||||||||||||
| Ocean and air cargo carriers |
22,150 | 21,250 | 7,340 | 8,220 | ||||||||||||
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| 1,578,820 | 1,602,230 | 517,760 | 544,490 | |||||||||||||
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| Loads hauled via BCO Independent Contractors
(2) |
722,870 | 717,470 | 239,210 | 236,580 | ||||||||||||
| Revenue per load: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 1,774 | $ | 1,996 | $ | 1,755 | $ | 2,029 | ||||||||
| Unsided/platform equipment |
2,507 | 2,675 | 2,548 | 2,816 | ||||||||||||
| Less-than-truckload |
636 | 717 | 618 | 709 | ||||||||||||
| Total truck transportation |
1,876 | 2,079 | 1,868 | 2,139 | ||||||||||||
| Rail intermodal |
2,475 | 2,385 | 2,521 | 2,566 | ||||||||||||
| Ocean and air cargo carriers |
4,030 | 3,893 | 4,137 | 3,797 | ||||||||||||
| Revenue per load on loads hauled via BCO Independent Contractors (2) |
$ | 1,923 | $ | 2,118 | $ | 1,949 | $ | 2,200 | ||||||||
| Revenue by capacity type (as a % of total revenue); |
||||||||||||||||
| Truck capacity providers: |
||||||||||||||||
| BCO Independent Contractors (2) |
45 | % | 44 | % | 46 | % | 43 | % | ||||||||
| Truck Brokerage Carriers |
47 | % | 49 | % | 46 | % | 50 | % | ||||||||
| Rail intermodal |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
| Ocean and air cargo carriers |
3 | % | 2 | % | 3 | % | 3 | % | ||||||||
| Other |
2 | % | 1 | % | 2 | % | 2 | % | ||||||||
| September 28, | September 29, | |||||||||||||||
| 2019 | 2018 | |||||||||||||||
| Truck Capacity Providers |
||||||||||||||||
| BCO Independent Contractors (2) |
9,738 | 9,751 | ||||||||||||||
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| Truck Brokerage Carriers: |
||||||||||||||||
| Approved and active (3) |
39,963 | 40,151 | ||||||||||||||
| Other approved |
16,984 | 16,803 | ||||||||||||||
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| 56,947 | 56,954 | |||||||||||||||
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| Total available truck capacity providers |
66,685 | 66,705 | ||||||||||||||
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| Trucks provided by BCO Independent Contractors (2) |
10,441 | 10,443 | ||||||||||||||
| (1) | Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
| (2) | BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. |
| (3) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
October 23, 2019 Landstar System, Inc. Earnings Conference Call Third Quarter 2019 Date Published: 10/23/2019 Exhibit 99.2
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made during this presentation that are not based on historical facts are “forward looking statements.” During this presentation, I may make certain statements, containing forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Such statements are by nature subject to uncertainties and risks, including but not limited to: the operational, financial and legal risks detailed in Landstar’s Form 10-K for the 2018 fiscal year, described in the section Risk Factors, and 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 Landstar undertakes no obligation to publicly update or revise any forward-looking statements. Date Published: 10/23/2019
Model Definition Landstar 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. Date Published: 10/23/2019
The Network Landstar Employees Approx. 1,200 Agents Approx. 1,300 Customers 25,000+ Capacity 68,000+ 2018 Results $4.6 billion in revenue 2.1 million loadings 608 million dollar agents 10,599 BCO trucks (2018 year-end) 59,054 Carriers (2018 year-end) 16,000+ Trailers (2018 year-end) Date Published: 10/23/2019
Percentage of Revenue 3Q18 3Q19 Truck Transportation Truckload Van equipment 60% 57% Unsided/platform equipment 31% 33% Less-than-truckload 2% 3% Rail intermodal 3% 3% Ocean and air cargo 3% 3% Transportation Management Services Date Published: 10/23/2019
Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Revenue ($’s in thousands) Date Published: 10/23/2019 Quarter Year-to-Date
Van Equipment Unsided/Platform Equipment Truckload Loadings and Revenue per Load (Excludes LTL) Date Published: 10/23/2019 The Company’s fiscal year ends each year on the last Saturday in December and, as such, the Company’s 2018 and 2017 fourth quarters included thirteen weeks of operations whereas the 2016 fourth quarter included fourteen weeks.
As a Percentage of Revenue 3Q18 3Q19 Quarter over Prior Year Quarter Change in Revenue Consumer Durables 23.2 24.6 -11% Machinery 14.3 14.9 -13% Automotive 8.3 7.0 -29% Building Products 8.7 9.1 -11% Metals 6.7 5.8 -27% AA&E, Hazmat 8.4 8.9 -12% Foodstuffs 5.5 4.2 -36% Energy 2.8 3.9 16% Other 22.1 21.6 -18% Transportation Revenue 100.0 100.0 -16% Industries Served Date Published: 10/23/2019
14.3% 15.1% Gross profit equals revenue less the cost of purchased transportation and commissions to agents. Gross profit margin equals gross profit divided by revenue. Revenue on transactions with a fixed gross profit margin was 51% of revenue in both the 2018 and 2019 year-to-date periods, and 50% and 52% of revenue in the 2018 and 2019 third quarters, respectively. Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Date Published: 10/23/2019 Quarter Year-to-Date 14.5% 15.1%
50.5% 48.4% 4 Operating margin equals operating income divided by gross profit. Operating Income and Operating Margin (1) ($’s in thousands) Date Published: 10/23/2019 Quarter Year-to-Date 50.8% 46.3% 49.3% 10 49.8%
Date Published: 10/23/2019 Truck Capacity Data (All information is provided as of the end of the period)
(1) Net cash is defined as cash and cash equivalents plus short term investments less outstanding debt. Date Published: 10/23/2019 Key Balance Sheet and Cash Flow Statistics ($’s in thousands)
Free Cash Flow (1) , Stock Purchases and Dividends Date Published: 10/23/2019 (In Thousands) (1) Free cash flow is defined as cash flow from operations less capital expenditures, each set forth on the prior slide.
Date Published: 10/23/2019