Landstar System Reports Third Quarter Results
Revenue hauled by third-party truck capacity providers in the third quarter of 2009 was
Revenue in the thirty-nine-week period ended
Revenue hauled by third-party truck capacity providers in the 2009 thirty-nine-week period was
Trailing twelve month return on average shareholders' equity remained high at 29 percent and trailing twelve month return on invested capital, net income divided by the sum of average equity plus average debt, was 21 percent.
"In the 2009 third quarter,
"The number of loads hauled in the 2009 third quarter decreased only 11 percent compared to the 2008 third quarter, an improvement from the 16 percent decline experienced in the 2009 second quarter compared to the 2008 second quarter. The number of loads hauled in the 2009 third quarter increased 1 percent over the 2009 second quarter while the number of loads hauled in the 2008 third quarter was 5 percent lower than the number of loads hauled in the 2008 second quarter. I believe this is a clear indication that the decrease in demand that began during the latter part of the 2008 third quarter will provide for easing volume comparisons into the Company's 2009 fourth quarter and continuing into 2010.
"Revenue per load began to stabilize during the 2009 third quarter. On a sequential basis, average revenue per load with respect to the Company's truck transportation services in the 2009 third quarter was approximately equal to the average revenue per load in the 2009 second quarter. The general pricing environment, however, still remains somewhat challenging.
"As a direct result of
Gerkens continued, "I see a gradually improving overall freight environment, and I believe that the worst is over. I am cautiously optimistic as we close out 2009. The very difficult revenue comparisons to prior year experienced by
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About
Landstar
(Tables follow)
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 26, September 27, September 26, September 27, 2009 2008 2009 2008 ------------- ------------- ------------- ------------ Revenue $1,461,081 $2,039,232 $500,670 $732,753 Investment income 954 2,686 279 817 Costs and expenses: Purchased transportation 1,090,219 1,573,209 372,328 569,864 Commissions to agents 117,735 153,857 39,484 54,267 Other operating costs 21,749 20,814 6,911 6,874 Insurance and claims 29,056 27,159 10,257 8,125 Selling, general and administrative 99,690 105,457 33,078 34,499 Depreciation and amortization 17,414 15,558 6,213 5,251 ------------- ------------- ------------- ------------ Total costs and expenses 1,375,863 1,896,054 468,271 678,880 ------------- ------------- ------------- ------------ Operating income 86,172 145,864 32,678 54,690 Interest and debt expense 3,093 5,635 957 1,757 ------------- ------------- ------------- ------------ Income before income taxes 83,079 140,229 31,721 52,933 Income taxes 31,466 53,904 11,859 20,116 ------------- ------------- ------------- ------------ Net income 51,613 86,325 19,862 32,817 Less: Net loss attributable to the noncontrolling interest (214) - (214) - ------------- ------------- ------------- ------------ Net income attributable to Landstar System, Inc. and subsidiary $51,827 $86,325 $20,076 $32,817 ============= ============= ============= ============ Earnings per common share attributable to Landstar System, Inc. and subsidiary $1.01 $1.64 $0.39 $0.62 ============= ============= ============= ============ Diluted earnings per share attributable to Landstar System, Inc. and subsidiary $1.01 $1.62 $0.39 $0.62 ============= ============= ============= ============ Average number of shares outstanding: Earnings per common share 51,325,000 52,680,000 51,069,000 52,586,000 ============= ============= ============= ============ Diluted earnings per share 51,507,000 53,142,000 51,245,000 53,028,000 ============= ============= ============= ============ Dividends paid per common share $0.1250 $0.1150 $0.0450 $0.0400 ============= ============= ============= ============ Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) Sep. 26, Dec. 27, 2009 2008 ------------- ------------ ASSETS Current assets: Cash and cash equivalents $68,990 $98,904 Short-term investments 23,706 23,479 Trade accounts receivable, less allowance of $7,190 and $6,230 258,565 315,065 Other receivables, including advances to independent contractors, less allowance of $4,808 and $4,298 9,978 10,083 Deferred income taxes and other current assets 26,627 27,871 ------------- ------------ Total current assets 387,866 475,402 ------------- ------------ Operating property, less accumulated depreciation and amortization of $119,890 and $106,635 122,297 124,178 Goodwill 57,297 31,134 Other assets 50,284 32,816 ------------- ------------ Total assets $617,744 $663,530 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Cash overdraft $21,219 $32,065 Accounts payable 110,029 105,882 Current maturities of long-term debt 25,988 24,693 Insurance claims 26,039 23,545 Accrued income taxes 12,456 12,239 Other current liabilities 33,941 38,161 ------------- ------------ Total current liabilities 229,672 236,585 ------------- ------------ Long-term debt, excluding current maturities 49,053 111,752 Insurance claims 35,667 38,278 Deferred income taxes 28,307 23,779 Shareholders' equity: Common stock,$0.01 par value, authorized 160,000,000 shares, issued 66,192,767 and 66,109,547 shares 662 661 Additional paid-in capital 159,581 154,533 Retained earnings 749,739 704,331 Cost of 15,357,268 and 14,424,887 shares of common stock in treasury (636,349) (605,828) Accumulated other comprehensive gain (loss) 251 (561) ------------- ------------ TotalLandstar System, Inc. and subsidiary shareholders' equity 273,884 253,136 ------------- ------------ Noncontrolling interest 1,161 - ------------- ------------ Total shareholders' equity 275,045 253,136 ------------- ------------ Total liabilities and shareholders' equity $617,744 $663,530 ============= ============ Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended ----------------------- ------------------------ Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 ---------- ---------- ---------- ---------- Revenue generated through (in thousands): ------------------------ Business Capacity Owners (1) $840,391 $1,070,982 $289,726 $370,787 Truck Brokerage Carriers 495,661 766,262 166,182 275,928 Rail intermodal 57,094 106,936 20,366 35,338 Ocean cargo carriers 25,459 29,329 7,941 11,109 Air cargo carriers 10,259 10,135 2,751 2,686 Other (2) 32,217 55,588 13,704 36,905 ---------- ---------- ---------- ---------- $1,461,081 $2,039,232 $500,670 $732,753 ========== ========== ======== ======== Number of loads: ---------------- Business Capacity Owners (1) 561,840 638,330 196,840 209,250 Truck Brokerage Carriers 363,000 435,250 122,980 146,280 Rail intermodal 28,600 45,610 10,310 14,610 Ocean cargo carriers 3,920 3,990 1,330 1,400 Air cargo carriers 6,440 5,520 1,340 1,650 ---------- ---------- ---------- ---------- 963,800 1,128,700 332,800 373,190 ======= ========= ======= ======= Revenue per load: ----------------- Business Capacity Owners (1) $1,496 $1,678 $1,472 $1,772 Truck Brokerage Carriers 1,365 1,761 1,351 1,886 Rail intermodal 1,996 2,345 1,975 2,419 Ocean cargo carriers 6,495 7,351 5,971 7,935 Air cargo carriers 1,593 1,836 2,053 1,628 September 26, September 27, 2009 2008 ---------- ---------- Truck Capacity -------------- Business Capacity Owners (1) (3) 8,070 8,363 ---------- ---------- Truck Brokerage Carriers: Approved and active (4) 14,541 16,400 Approved 10,576 9,120 ---------- ---------- 25,117 25,520 ---------- ---------- Total available truck capacity providers 33,187 33,883 ========== ========== Agent Locations 1,403 1,403 --------------- ========== ========== (1) Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. (2) Includes premium revenue generated by the insurance segment and warehousing and supply chain solutions revenue generated by the transportation logistics segment. Also, included in the 2008 thirty-nine-week and thirteen-week periods was$27,638 of revenue for bus capacity provided for evacuation assistance related to the storms that impacted theGulf Coast in the third quarter of 2008. (3) Trucks provided by Business Capacity Owners were 8,655 and 8,949 atSeptember 26, 2009 andSeptember 27, 2008 , respectively. (4) Active refers to Truck Brokerage Carriers who have moved at least one load in the past 180 days.
SOURCE
Jim Gattoni of Landstar System, Inc., +1-904-398-9400