Landstar System Reports Record First Quarter Revenue,
Net Income and Earnings Per Diluted Share of $.62
Net Income and Earnings Per Diluted Share of $.62
JACKSONVILLE, Fla., April 17 /PRNewswire-FirstCall/ -- Landstar System, Inc. (Nasdaq: LSTR) reported 2003 record first quarter net income of $10.2 million, or $.62 per diluted share, compared with net income of $8.5 million, or $.51 per diluted share, in the 2002 first quarter. Revenue was a record $366 million for the thirteen-week period ended March 29, 2003, compared with revenue of $336 million in the comparable 2002 period. Operating margin was 4.7 percent in the 2003 first quarter compared with 4.5 percent in the 2002 first quarter.
Landstar's carrier group of companies generated $290 million of revenue in the 2003 first quarter compared with revenue of $270 million in the 2002 first quarter. In the 2003 and 2002 first quarters, the carrier group invoiced customers $8.6 million and $.8 million, respectively, of fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Landstar's multimodal services group of companies generated $69 million of revenue in the 2003 first quarter compared with $59 million of revenue in the 2002 first quarter.
"I am very pleased with Landstar's 2003 first quarter performance," said Landstar Chairman and CEO Jeff Crowe. "Earnings per diluted share increased 22 percent quarter over quarter. Consolidated revenue increased by nearly 9 percent to the highest first quarter revenue in Landstar history. Compared to the 2002 first quarter, revenue generated through other third party truck capacity providers (brokerage) increased more than 37 percent, revenue generated through rail and air carriers increased nearly 18 percent and revenue hauled by Landstar BCOs increased more than 2 percent. In addition, revenue from the U.S. Government increased approximately $21 million compared to the 2002 first quarter. In the 2003 first quarter, we continued to increase revenue by providing our customers with the most efficient form of safe capacity available while improving our operating margin," Crowe said.
"Trailing twelve-month return on average equity remained high at 36 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was 23 percent. During the 2003 first quarter, we purchased 159,851 shares of common stock at a total cost of $8,467,000 and reduced debt by more than $15 million. Shareholder's equity represented 72 percent of total capitalization, up from 66 percent at the end of 2002," Crowe said. "The Company has the ability to purchase an additional 285,270 shares of its common stock under its authorized share repurchase program.
"As reported by FIRST CALL, the current range of analysts' earnings estimates for the second quarter of 2003 is $.78 to $.88 per diluted share. Currently, I anticipate results to be within that range. The current range of analysts' earnings estimates for the 2003 fiscal year is $3.15 to $3.45. I am currently more comfortable with the middle of that range," said Crowe.
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 p.m. ET. To access the webcast, visit the company's website at www.landstar.com. Click on Investors and then the webcast icon.
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," "plans," "predicts," "may," "should," "will," the negative thereof and similar expressions, including any such expressions with respect to our level of comfort with analyst estimates, 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 workers' compensation claims; unfavorable development of existing accident claims; dependence on independent sales agents; dependence on third party capacity providers; disruptions or failures in our computer systems; a downturn in domestic economic growth or growth in the transportation sector; and substantial industry competition. 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.
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)
Thirteen Weeks Ended
March 29, March 30,
2003 2002
Revenue $365,718 $335,693
Investment income 324 563
Costs and expenses:
Purchased transportation 271,462 247,188
Commissions to agents 28,084 26,088
Other operating costs 9,231 8,106
Insurance and claims 10,628 10,907
Selling, general and administrative 26,381 26,048
Depreciation and amortization 3,166 2,879
Total costs and expenses 348,952 321,216
Operating income 17,090 15,040
Interest and debt expense 770 1,308
Income before income taxes 16,320 13,732
Income taxes 6,161 5,218
Net income $10,159 $8,514
Earnings per common share (1) $0.64 $0.53
Diluted earnings per share (1) $0.62 $0.51
Average number of shares outstanding:
Earnings per common share (1) 15,774,000 16,193,000
Diluted earnings per share (1) 16,426,000 16,727,000
(1) 2002 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
declared July 17, 2002.
Landstar System, Inc.
Selected Segment Information
(Dollars in thousands)
(Unaudited)
Thirteen Weeks Ended
March 29, March 30,
2003 2002
External Revenue
Carrier segment $290,045 $269,963
Multimodal segment 68,709 58,719
Insurance segment 6,964 7,011
External revenue $365,718 $335,693
Operating Income
Carrier segment $18,496 $16,856
Multimodal segment 1,924 1,140
Insurance segment 5,435 5,322
Other (8,765) (8,278)
Operating income $17,090 $15,040
Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
March 29, December 28,
2003 2002
ASSETS
Current assets:
Cash $68,136 $65,447
Short-term investments 2,724 3,130
Trade accounts receivable, less
allowance
of $3,932 and $3,953 182,746 190,052
Other receivables, including
advances to independent
contractors, less allowance of
$5,469 and $5,331 21,347 12,640
Prepaid expenses and other current
assets 3,227 3,338
Total current assets 278,180 274,607
Operating property, less accumulated
depreciation
and amortization of $55,226
and $52,841 74,198 76,774
Goodwill 31,134 31,134
Other assets 15,247 18,233
Total assets $398,759 $400,748
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft $18,410 $16,545
Accounts payable 61,248 60,297
Current maturities of long-term
debt 11,434 12,123
Insurance claims 25,859 24,419
Other current liabilities 40,699 40,593
Total current liabilities 157,650 153,977
Long-term debt, excluding current
maturities 50,569 65,237
Insurance claims 27,342 25,276
Deferred income taxes 7,524 7,165
Shareholders' equity:
Common stock, $.01 par value,
authorized 20,000,000
shares, issued 16,540,507 and
16,337,506 shares 165 163
Additional paid-in capital 7,248 2,609
Retained earnings 183,976 173,817
Cost of 714,730 and 554,879 shares
of common
stock in treasury (34,773) (26,306)
Notes receivable arising from
exercise of stock options (942) (1,190)
Total shareholders' equity 155,674 149,093
Total liabilities and shareholders'
equity $398,759 $400,748
Landstar System, Inc.
Supplemental Information
March 29, 2003
(Unaudited)
Thirteen Weeks Ended
March 29, March 30,
2003 2002
Carrier Segment
External revenue generated
through (in thousands):
Business Capacity Owners (1) $249,524 $241,704
Other third party truck
capacity providers 40,521 28,259
$290,045 $269,963
Revenue per revenue mile $1.74 $1.68
Revenue per load $1,199 $1,125
Average length of haul (miles) 690 671
Number of loads 241,999 240,013
Multimodal Segment
External revenue generated
through (in thousands):
Business Capacity Owners (1) $10,758(2) $12,888(2)
Other third party truck
capacity providers 36,949 27,998
Rail and Air Carriers 21,002 17,833
$68,709 $58,719
Revenue per load $1,250 $1,058
Number of loads 54,982 55,503
As of As of
March 29, Dec. 28,
2003 2002
Capacity
Business Capacity Owners (1) 7,272 (3) 7,365 (3)
Other third party truck capacity
providers:
Approved and active(4) 8,669 8,610
Approved 5,840 5,310
14,509 13,920
Total available truck capacity
providers 21,781 21,285
(1) Business Capacity Owners are independent contractors who provide truck
capacity to the Company under exclusive lease arrangements.
(2) Includes revenue generated through Carrier Segment Business Capacity
Owners.
(3) Trucks provided by business capacity owners were 8,267 and 8,402,
respectively.
(4) Active refers to other third party truck capacity providers who have
moved at least one load in the past 180 days.
SOURCE Landstar System, Inc.