Landstar System Reports Record Third Quarter Revenue And Earnings
JACKSONVILLE, Fla., Oct. 17 /PRNewswire-FirstCall/ --
Landstar System, Inc. (Nasdaq: LSTR) reported 2002 record third quarter net
income of $13.9 million, or $.83 per diluted share, compared to net income of
$11.9 million, or $.70 per diluted share, in the 2001 third quarter. The
2001 period included $302,000 of goodwill amortization; excluding this charge
net income would have been $12.2 million, or $.72 per diluted share. Revenue
was a record $385.7 million for the thirteen-week period ended September 28,
2002, compared with $355.7 million for the thirteen-week period ended
September 29, 2001. Landstar's carrier group of companies generated $298.9
million of revenue in the 2002 third quarter compared with $276.5 million in
the 2001 third quarter. Landstar's multimodal services group of companies
generated revenue of $80.0 million in the 2002 third quarter compared with
$73.2 million in the 2001 third quarter. Operating margin was 6.1 percent in
the 2002 third quarter compared with 5.9 percent, 6.0 percent exclusive of
goodwill amortization, in the 2001 third quarter.
Net income for the thirty-nine-week period ended September 28, 2002 was $34.7 million, or $2.06 per diluted share, compared to net income of $31.2 million, or $1.81 per diluted share, for the thirty-nine-week period ended September 29, 2001. The 2001 period included $911,000 of goodwill amortization; excluding this charge net income would have been $32.1 million, or $1.86 per diluted share. Revenue was $1,113 million in the 2002 thirty- nine-week period, compared to revenue of $1,045 million in the comparable 2001 period. Landstar's carrier group of companies generated $878.8 million of revenue in the thirty-nine-week period ended September 28, 2002 compared with $820.1 million in the thirty-nine-week period ended September 29, 2001.
Landstar's multimodal services group of companies generated $213.0 million of revenue in the 2002 thirty-nine-week period compared with $207.2 million in the comparable 2001 period.
I am pleased with Landstar's 2002 third quarter performance, said Landstar Chairman and CEO, Jeff Crowe. Consolidated revenue increased by more than 8 percent to the highest third quarter revenue in Landstar history. Brokerage revenue at the Carrier Group increased almost 15 percent as we continued to expand our utilization of broker carrier capacity. Truck capacity provided by business capacity owners on the other hand decreased to 8,380, which reflected a difficult recruiting environment. We will continue to use a combination of capacity to service our customers.
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 above 21 percent. We have reduced debt by more than $29 million since year-end 2001 and ended the quarter with over $67 million in cash and short-term investments. Shareholder's equity represented 68 percent of capitalization, up from 54 percent at year-end, Crowe said. "Landstar's financial condition and strong cash flow continue to provide us with competitive advantages.
During the third quarter, Landstar purchased 112,879 shares, adjusted for the two for one stock split, of its common stock at a total cost of $5,435,000, Crowe said. We continue to use the Company's strong cash flow to enhance shareholder value. The Company has the ability to purchase an additional 887,121 shares of its common stock under its authorized share repurchase program.
As reported by FIRST CALL, the range of analysts' earnings estimates for the 2002 fourth quarter is $.77 to $.92 per diluted share, said Crowe. Based upon the level of business activity experienced throughout the third quarter, I expect revenue in the 2002 fourth quarter to be approximately 10 percent to 12 percent higher than the revenue in the fourth quarter of 2001 and anticipate earnings for the fourth quarter of 2002 to be in the middle of the current range of analysts' estimates.
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 p.m. EDT. 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 complete over-the-road transportation services. The Landstar multimodal group comprised of Landstar Express America, Inc. and Landstar Logistics, Inc. delivers excellence in 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)
Thirty-Nine Weeks Ended Thirteen Weeks Ended
Sept. 28 Sept. 29 Sept. 28 Sept. 29
2002 2001 2002 2001
Revenue $1,112,569 $1,044,983 $385,660 $355,684
Investment income 1,552 2,861 474 902
Costs and expenses:
Purchased transportation 822,193 774,162 285,771 264,125
Commissions to agents 87,550 82,291 30,645 28,284
Other operating costs 26,274 24,841 8,460 7,946
Insurance and claims 32,672 23,802 8,288 6,777
Selling, general and
administrative 77,421 76,127 26,698 25,152
Depreciation and
amortization 8,521 10,328 2,821 3,302
Total costs and
expenses 1,054,631 991,551 362,683 335,586
Operating income 59,490 56,293 23,451 21,000
Interest and debt expense 3,518 5,529 966 1,597
Income before income taxes 55,972 50,764 22,485 19,403
Income taxes 21,269 19,547 8,544 7,473
Net income $34,703 $31,217 $13,941 $11,930
Earnings per common
share (1) $2.14 $1.85 $0.86 $0.72
Diluted earnings per
share (1) $2.06 $1.81 $0.83 $0.70
Average number of shares
outstanding:
Earnings per common
share (1) 16,223,000 16,838,000 16,224,000 16,501,000
Diluted earnings per
share (1) 16,847,000 17,270,000 16,875,000 16,943,000
(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)
Thirty-Nine Weeks Ended Thirteen Weeks Ended
Sept. 28 Sept. 29 Sept. 28 Sept. 29
2002 2001 2002 2001
External Revenue
Carrier segment $878,836 $820,055 $298,872 $276,496
Multimodal segment 213,018 207,209 79,959 73,190
Insurance segment 20,715 17,719 6,829 5,998
External revenue $1,112,569 $1,044,983 $385,660 $355,684
Operating Income
Carrier segment $63,912 $56,055 $22,453 $18,452
Multimodal segment 5,007 3,836 2,222 1,715
Insurance segment 15,867 22,932 8,307 9,224
Other (25,296) (26,530) (9,531) (8,391)
Operating income $59,490 $56,293 $23,451 $21,000
Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
September 28, December 29,
2002 2001
ASSETS
Current assets:
Cash $64,946 $47,886
Short-term investments 2,200 2,982
Trade accounts receivable, less
allowance of $3,838 and $4,416 208,647 185,206
Other receivables, including
advances to independent contractors,
less allowance of $5,053 and $4,740 10,346 13,779
Prepaid expenses and other current
assets 5,549 4,020
Total current assets 291,688 253,873
Operating property, less accumulated
depreciation and amortization
of $51,945 and $44,455 65,000 68,532
Goodwill 31,134 31,134
Other assets 16,575 11,112
Total assets $404,397 $364,651
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft $16,339 $13,018
Accounts payable 70,241 55,813
Current maturities of long-term
debt 10,163 9,965
Insurance claims 23,903 21,602
Other current liabilities 41,174 31,667
Total current liabilities 161,820 132,065
Long-term debt, excluding current
maturities 62,460 91,909
Insurance claims 23,897 21,585
Deferred income taxes 3,268 1,652
Shareholders' equity:
Common stock, $.01 par value,
authorized 20,000,000
shares, issued 16,286,306 and
13,328,834 shares 163 133
Additional paid-in capital 261 75,036
Retained earnings 159,299 258,162
Cost of 112,879 and 5,241,841
shares of common
stock in treasury (5,435) (209,926)
Notes receivable arising from
exercise of stock options (1,336) (5,965)
Total shareholders' equity 152,952 117,440
Total liabilities and shareholders'
equity $404,397 $364,651
Make Your Opinion Count - Click Here
http://tbutton.prnewswire.com/prn/11690X68827631
SOURCE Landstar System, Inc.
-0- 10/17/2002
/CONTACT: Henry H. Gerkens, Landstar System, Inc., +1-904-398-9400/
/Web site: http://www.landstar.com/
(LSTR)
CO: Landstar System, Inc.
ST: Florida
IN: TRN
SU: ERN CCA
KW
-- FLTH003 --
2032 10/17/2002 07:50 EDT http://www.prnewswire.com