JACKSONVILLE, Fla., April 26, 2017 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ:LSTR) reported record first quarter diluted earnings per share of $0.77 in the 2017 first quarter, on record first quarter revenue of $781 million.  Landstar reported diluted earnings per share of $0.69 on revenue of $712 million in the 2016 first quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $121.6 million, a record first quarter gross profit, in the 2017 first quarter compared to $112.2 million in the 2016 first quarter.  Operating margin, representing operating income divided by gross profit, was 43.0 percent in the 2017 first quarter.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2017 first quarter was $726.8 million, or 93 percent of revenue, compared to $655.1 million, or 92 percent of revenue, in the 2016 first quarter.  Truckload transportation revenue hauled via van equipment in the 2017 first quarter was $470.0 million compared to $428.2 million in the 2016 first quarter.  Truckload transportation revenue hauled via unsided/platform equipment in the 2017 first quarter was $237.2 million compared to $209.4 million in the 2016 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $42.4 million, or 5 percent of revenue, in the 2017 first quarter compared to $44.9 million, or 6 percent of revenue, in the 2016 first quarter.

Trailing twelve-month return on average shareholders’ equity was 27 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 22 percent.  Currently, there are approximately 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program.  As of April 1, 2017, the Company had $278 million in cash and short term investments and $214 million available for borrowings under the Company’s senior credit facility.

In addition, Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.09 per share payable on June 2, 2017, to stockholders of record as of the close of business on May 11, 2017.  It is currently the intention of the Board to pay dividends on a quarterly basis going forward.

“Diluted earnings per share was $0.77 in the 2017 first quarter, the highest first quarter diluted earnings per share in Landstar history. Revenue was $781 million with gross profit of $121.6 million in the 2017 first quarter, both being first quarter records. The number of loads hauled via truck during the 2017 first quarter was also higher than any first quarter in Landstar history.  Given the soft demand environment and readily available truck capacity during the quarter, I am extremely pleased with the execution of the Landstar model,” said Landstar’s President and Chief Executive Officer, Jim Gattoni.   

Gattoni continued, “The number of loads hauled via truck in the 2017 first quarter increased 10 percent over the 2016 first quarter, driven by an 11 percent increase in the number of loads hauled via van equipment, an 8 percent increase in the number of loads hauled via unsided/platform equipment and an 11 percent increase in less-than-truckload volume. The number of loads hauled via unsided/platform equipment benefited from a 9 percent increase in the number of heavy/specialized loads, which comprised approximately 14 percent of Landstar’s unsided/platform loads in the 2017 first quarter. The number of loads hauled via railroads, ocean cargo carriers and air cargo carriers was 1 percent lower in the 2017 first quarter compared to the 2016 first quarter, due to softness in rail intermodal volume.”

Gattoni further commented, “As expected, the pricing environment for our truckload services continued to be soft in the 2017 first quarter, as industry-wide truck capacity continued to be readily available. However, the percentage change in year-over-year revenue per load on loads hauled via truck improved each month.  Moreover, in February, the Company experienced its first year-over-year monthly increase in truck revenue per load in two years. As a result, revenue per load on loads hauled via truck was 1 percent higher in the 2017 first quarter compared to the 2016 first quarter. First quarter operating margin is typically lower than that of the following three quarters. Despite the soft pricing environment, 2017 first quarter operating margin was 43.0 percent, in line with seasonal historical first quarter operating margin, and diluted earnings per share in the 2017 first quarter increased 12 percent over the 2016 first quarter.”

Gattoni continued, “We have experienced consistent load growth in loads hauled via truck throughout the 2017 first quarter and into the first several weeks of April. I expect that trend to continue and therefore expect the number of loads hauled via truck in the 2017 second quarter to increase in a mid to upper single digit range over the 2016 second quarter.  My expectation is that pricing conditions for truck services in the 2017 second quarter will continue to be soft with little change in the level of available truck capacity. Assuming those truck conditions remain, I expect 2017 second quarter truck revenue per load to be higher than the 2016 second quarter in a low single digit percentage range.  I anticipate revenue for the 2017 second quarter to be in a range of $820 million to $870 million and, assuming that range of estimated revenue and normalized insurance and claims expense, I would anticipate 2017 second quarter diluted earnings per share to be in a range of $0.84 to $0.89 per share compared to $0.76 per diluted share in the 2016 second quarter.”

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 First Quarter 2017 Earnings Release Conference Call.”

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 2016 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 logistics services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees.  All Landstar transportation services companies are certified to ISO 9001:2008 quality management system standards and RC14001:2013 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.

Contact:
Kevin Stout
Landstar System, Inc.
www.landstar.com
904-398-9400

Landstar System