Landstar System Reports Fourth Quarter Earnings Of $.88 Per Diluted Share
JACKSONVILLE, Fla., Feb. 6 /PRNewswire-FirstCall/ -- Landstar System, Inc. (Nasdaq: LSTR) reported 2002 fourth quarter net income of $14.5 million, or $.88 per diluted share, compared to net income of $11.6 million, or $.70 per diluted share, in the 2001 fourth quarter. The 2001 period included $305,000 of goodwill amortization; excluding this charge net income would have been $11.9 million, or $.72 per diluted share. Revenue was a record $394.0 million for the thirteen-week period ended December 28, 2002, compared with $347.8 million for the thirteen-week period ended December 29, 2001. Landstar's carrier group of companies generated $299.4 million of revenue in the 2002 fourth quarter compared with $278.2 million in the 2001 fourth quarter. Landstar's multimodal services group of companies generated revenue of $87.7 million in the 2002 fourth quarter compared with $63.6 million in the 2001 fourth quarter. Operating margin was 6.1 percent in the 2002 fourth quarter compared with 5.8 percent, 5.9 percent exclusive of goodwill amortization, in the 2001 fourth quarter.
Net income for the 2002 fiscal year was a record $49.2 million, or $2.94 per diluted share, compared to net income of $42.8 million, or $2.50 per diluted share, in the prior year. The 2001 fiscal year included $1,216,000 of goodwill amortization, excluding this charge net income would have been $44.0 million, or $2.57 per diluted share. Revenue in the 2002 fiscal year was a record $1.507 billion, compared to revenue of $1.393 billion in the 2001 year. Landstar's carrier group of companies generated $1.178 billion of revenue in the 2002 full year compared with $1.098 billion in 2001.
Landstar's multimodal services group of companies generated $301 million of revenue in the 2002 fiscal year compared with $271 million in 2001.
"I am very pleased with Landstar's 2002 fourth quarter performance," said Landstar Chairman and CEO, Jeff Crowe. "Consolidated revenue increased by more than 13 percent to the highest fourth quarter revenue in Landstar history. Compared to the 2001 fourth quarter, consolidated brokerage revenue increased 34 percent, rail intermodal revenue more than doubled and revenue hauled by Landstar BCOs increased over 3 percent. During the 2002 fourth quarter, tractors supplied by business capacity owners increased to 8,402. More importantly, we continued to execute our strategy of increasing revenue by servicing customers through the utilization of various sources of safe capacity," Crowe said.
"Trailing twelve-month return on average equity remained high at 37 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was above 22 percent. During 2002, we reduced debt by approximately $25 million, purchased 554,879 shares of common stock at a total cost of $26,306,000 and ended the year with over $68 million in cash and short-term investments. Shareholder's equity represented 66 percent of capitalization, up from 54 percent at the end of 2001," Crowe said. "Our variable cost business model continues to strengthen our already solid financial position. The Company has the ability to purchase an additional 445,121 shares of its common stock under its authorized share repurchase program."
"As reported by FIRST CALL, the current ranges of analysts' earnings estimates for the first quarter and full 2003 year are $.57 to $.65 per diluted share and $3.15 to $3.45 per diluted share, respectively," said Crowe. "Based upon the level of business activity experienced in the fourth quarter, I anticipate earnings for both periods to be within the current ranges of analysts' estimates."
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 p.m. EST. To access the webcast visit the company's website at www.landstar.com. Click on Investor Relations and then on the microphone at the top of the page. StreetEvents.com will also carry the broadcast live.
This press release contains forward-looking statements, such as statements that relate to Landstar's business objectives, plans, strategies and expectations. The words "believe", "expect", "anticipate", "should" and similar expressions identify forward-looking statements. While made in good faith and with a reasonable basis based on information currently available to Landstar's management, there is no assurance that such opinions, beliefs or expectations will be achieved or accomplished. Various factors could cause actual results and events to vary significantly from those expressed in any forward-looking statement. Such types of statements are intended to be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
The Company is under no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason.
Landstar System, Inc. is headquartered in Jacksonville, Florida. The Landstar carrier group comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc. and Landstar Ranger, Inc. delivers excellence in safe and complete over-the-road transportation services. The Landstar multimodal group comprised of Landstar Express America, Inc. and Landstar Logistics, Inc. delivers excellence in safe, expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards.
(tables follow)
Landstar System, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Fiscal Year Ended Thirteen Weeks Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2002 2001 2002 2001
Revenue $1,506,555 $1,392,771 $393,986 $347,788
Investment income 1,950 3,567 398 706
Costs and expenses:
Purchased transportation 1,116,009 1,030,454 293,816 256,292
Commissions to agents 118,864 110,513 31,314 28,222
Other operating costs 34,325 32,750 8,051 7,909
Insurance and claims 42,188 32,930 9,516 9,128
Selling, general and
administrative 101,918 99,762 24,497 23,635
Depreciation and
amortization 11,520 13,543 2,999 3,215
Total costs and
expenses 1,424,824 1,319,952 370,193 328,401
Operating income 83,681 76,386 24,191 20,093
Interest and debt expense 4,292 6,802 774 1,273
Income before income taxes 79,389 69,584 23,417 18,820
Income taxes 30,168 26,790 8,899 7,243
Net income $49,221 $42,794 $14,518 $11,577
Earnings per common
share (1) $3.05 $2.57 $0.91 $0.72
Diluted earnings per
share (1) $2.94 $2.50 $0.88 $0.70
Average number of shares
outstanding:
Earnings per common
share (1) 16,141,000 16,672,000 15,895,000 16,174,000
Diluted earnings per
share (1) 16,767,000 17,092,000 16,524,000 16,560,000
(1) All earnings per share amounts and average number of shares
outstanding have been restated to give retroactive effect to a two-
for-one stock split effected in the form of a 100% stock dividend
announced July 18, 2002.
Landstar System, Inc.
Selected Segment Information
(Dollars in thousands)
(Unaudited)
Fiscal Year Ended Thirteen Weeks Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2002 2001 2002 2001
External Revenue
Carrier segment $1,178,263 $1,098,268 $299,427 $278,213
Multimodal segment 300,716 270,849 87,698 63,640
Insurance segment 27,576 23,654 6,861 5,935
External revenue $1,506,555 $1,392,771 $393,986 $347,788
Operating Income
Carrier segment $87,777 $76,105 $23,865 $20,050
Multimodal segment 7,793 5,343 2,786 1,507
Insurance segment 22,754 30,644 6,887 7,712
Other (34,643) (35,706) (9,347) (9,176)
Operating income $83,681 $76,386 $24,191 $20,093
Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
December 28, December 29,
2002 2001
ASSETS
Current assets:
Cash $65,447 $47,886
Short-term investments 3,130 2,982
Trade accounts receivable, less
allowance of $3,953 and $4,416 190,052 185,206
Other receivables, including
advances to independent
contractors, less allowance of
$5,331 and $4,740 12,640 13,779
Prepaid expenses and other current
assets 3,338 4,020
Total current assets 274,607 253,873
Operating property, less accumulated
depreciation and amortization
of $52,841 and $44,455 76,774 68,532
Goodwill 31,134 31,134
Other assets 18,233 11,112
Total assets $400,748 $364,651
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft $16,545 $13,018
Accounts payable 60,297 55,813
Current maturities of long-term
debt 12,123 9,965
Insurance claims 24,419 21,602
Other current liabilities 40,593 31,667
Total current liabilities 153,977 132,065
Long-term debt, excluding current
maturities 65,237 91,909
Insurance claims 25,276 21,585
Deferred income taxes 7,165 1,652
Shareholders' equity:
Common stock, $.01 par value,
authorized 20,000,000
shares, issued 16,337,506 and
13,328,834 shares 163 133
Additional paid-in capital 2,609 75,036
Retained earnings 173,817 258,162
Cost of 554,879 and 5,241,841
shares of common
stock in treasury (26,306) (209,926)
Notes receivable arising from
exercise of stock options (1,190) (5,965)
Total shareholders' equity 149,093 117,440
Total liabilities and shareholders'
equity $400,748 $364,651
SOURCE Landstar System, Inc.