UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 25, 2018
LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 021238 | 06-1313069 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
| 13410 Sutton Park Drive South, Jacksonville, Florida | 32224 | |||
| (Address of principal executive offices) | (Zip Code) | |||
(904) 398-9400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On July 25, 2018, Landstar System, Inc. issued a press release announcing results for the second quarter of fiscal 2018. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 7.01 concerning the presentation to Landstar investors is hereby incorporated into this Item 2.02 by reference.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 7.01 | Regulation FD Disclosure |
A slide presentation, dated July 25, 2018, is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The slide presentation provides information that may be referred to by the Company on its conference call with investors scheduled to occur on July 26, 2018 in connection with the Company’s release of results for the second quarter of fiscal 2018.
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits |
| Exhibits |
||
| 99.1 | News Release dated July 25, 2018 of Landstar System, Inc. | |
| 99.2 | Slide Presentation dated July 25, 2018 of Landstar System, Inc. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LANDSTAR SYSTEM, INC. | ||||||
| Date: July 25, 2018 | By: | /s/ L. Kevin Stout | ||||
| Name: | L. Kevin Stout | |||||
| Title: | Vice President and Chief Financial Officer | |||||
Exhibit 99.1
| For Immediate Release | Contact: Kevin Stout | |
| Landstar System, Inc. | ||
| www.landstar.com | ||
| July 25, 2018 | 904-398-9400 |
LANDSTAR SYSTEM REPORTS RECORD QUARTERLY
REVENUE OF $1.183 BILLION AND RECORD SECOND QUARTER DILUTED
EARNINGS PER SHARE OF $1.51
Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported record quarterly revenue of $1.183 billion in the 2018 second quarter, a 36 percent increase over the $870 million revenue reported in the 2017 second quarter. Net income of $62.5 million and diluted earnings per share of $1.51 were each second quarter records and increased 67 percent and 70 percent, respectively, over net income and diluted earnings per share in the 2017 second quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2018 second quarter was $171.4 million, 29 percent above the 2017 second quarter, while 2018 second quarter operating income was $83.4 million, 37 percent above the 2017 second quarter. Gross profit and operating income in the 2018 second quarter were both all-time quarterly records.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2018 second quarter was $1.105 billion, or 93 percent of revenue, compared to $815.6 million, or 94 percent of revenue, in the 2017 second quarter. Truckload transportation revenue hauled via van equipment in the 2018 second quarter was $713.3 million compared to $509.1 million in the 2017 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2018 second quarter was $364.7 million compared to $283.5 million in the 2017 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $60.3 million, or 5 percent of revenue, in the 2018 second quarter compared to $43.1 million, or 5 percent of revenue, in the 2017 second quarter.
LANDSTAR SYSTEM/ 2
Landstar purchased approximately 986,000 shares of its common stock during the 2018 second quarter at an aggregate cost of approximately $104.0 million. Currently, the Company is authorized to purchase up to an additional 2,000,000 shares of the Company’s common stock under Landstar’s previously announced share purchase programs. As of June 30, 2018, the Company had $189 million in cash and short term investments and $216 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 $0.165 per share payable on August 31, 2018, to stockholders of record as of the close of business on August 13, 2018. This quarterly dividend includes a 10 percent increase to the amount of the Company’s regular quarterly dividend declared following each of the prior two quarters. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
“I am extremely pleased with the financial performance of the Landstar model during the 2018 second quarter,” said Landstar’s President and Chief Executive Officer Jim Gattoni. “The 2018 second quarter established all-time Landstar quarterly records for revenue, gross profit and operating income while diluted earnings per share was a second quarter record. The Company also set new all-time Landstar records for trucks provided by BCOs with 10,155 as of the end of the quarter and net truck additions in a single quarter with the net addition of 287 trucks in the second quarter.”
Gattoni continued, “Demand for our services was strong throughout the 2018 first half. The number of loads hauled via truck in the 2018 second quarter was an all-time quarterly record and increased 11 percent over the 2017 second quarter, driven by a 13 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 8 percent increase in less-than-truckload volume. The number of loads hauled via railroads, ocean cargo carriers and air cargo carriers was 23 percent higher in the 2018 second quarter compared to the 2017 second quarter, primarily due to a 32 percent increase in rail intermodal volume.”
LANDSTAR SYSTEM/ 3
Gattoni further commented, “As expected, the pricing environment for our truckload services continued to be very strong in the 2018 second quarter, as industry-wide truck capacity continued to be very tight. Revenue per load on loads hauled via van equipment increased 25 percent over the 2017 second quarter and revenue per load on loads hauled via unsided/platform equipment increased 19 percent over the 2017 second quarter. As a result, revenue per load on loads hauled via truck was 22 percent higher than the 2017 second quarter.”
Gattoni continued, “Through the first few weeks of July our truck load volumes continue to reflect strong demand. I expect that demand to continue through the 2018 third quarter and, therefore, expect the number of loads hauled via truck in the 2018 third quarter to approximate the number of loads hauled in the 2018 second quarter. My expectation is that pricing conditions for truck services in the 2018 third quarter will continue to be very strong with little change in the level of demand or available truck capacity. Assuming those conditions remain, I expect 2018 third quarter truck revenue per load to be higher than the 2017 third quarter in a 19 to 22 percent range. I anticipate record revenue for the 2018 third quarter in a range of $1.175 billion to $1.225 billion. Assuming that range of estimated revenue and insurance and claims expense at 3.5 percent of projected BCO revenue, representing average insurance and claims costs as a percent of BCO revenue over the past five years, I would anticipate record diluted earnings per share in the 2018 third quarter in a range of $1.58 to $1.64 per share compared to $1.01 per diluted share in the 2017 third 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 Second Quarter 2018 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
LANDSTAR SYSTEM/ 4
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 2017 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 services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 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.
(Tables follow)
LANDSTAR SYSTEM/ 5
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
| Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| June 30, 2018 |
July 1, 2017 |
June 30, 2018 |
July 1, 2017 |
|||||||||||||
| Revenue |
$ | 2,230,712 | $ | 1,651,342 | $ | 1,182,786 | $ | 870,434 | ||||||||
| Investment income |
1,752 | 1,022 | 891 | 608 | ||||||||||||
| Costs and expenses: |
||||||||||||||||
| Purchased transportation |
1,727,237 | 1,263,111 | 916,940 | 667,588 | ||||||||||||
| Commissions to agents |
176,524 | 134,080 | 94,399 | 70,282 | ||||||||||||
| Other operating costs, net of gains on asset sales/dispositions |
15,210 | 14,400 | 7,606 | 7,503 | ||||||||||||
| Insurance and claims |
38,899 | 28,406 | 21,539 | 13,893 | ||||||||||||
| Selling, general and administrative |
94,249 | 79,184 | 48,998 | 40,861 | ||||||||||||
| Depreciation and amortization |
21,766 | 19,831 | 10,769 | 9,897 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs and expenses |
2,073,885 | 1,539,012 | 1,100,251 | 810,024 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
158,579 | 113,352 | 83,426 | 61,018 | ||||||||||||
| Interest and debt expense |
1,639 | 1,902 | 839 | 819 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
156,940 | 111,450 | 82,587 | 60,199 | ||||||||||||
| Income taxes |
36,975 | 41,557 | 20,095 | 22,689 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
119,965 | 69,893 | 62,492 | 37,510 | ||||||||||||
| Less: Net loss attributable to noncontrolling interest |
(75 | ) | — | (31 | ) | — | ||||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Net income attributable to Landstar System, Inc. and subsidiary |
$ | 120,040 | $ | 69,893 | $ | 62,523 | $ | 37,510 | ||||||||
|
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|
|
|
|
|
|
|||||||||
| Earnings per common share attributable to Landstar System, Inc. and subsidiary |
$ | 2.88 | $ | 1.67 | $ | 1.51 | $ | 0.89 | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | 2.87 | $ | 1.66 | $ | 1.51 | $ | 0.89 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average number of shares outstanding: |
||||||||||||||||
| Earnings per common share |
41,744,000 | 41,907,000 | 41,450,000 | 41,935,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share |
41,795,000 | 42,004,000 | 41,491,000 | 42,010,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends per common share |
$ | 0.30 | $ | 0.18 | $ | 0.15 | $ | 0.09 | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
LANDSTAR SYSTEM/ 6
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
| June 30, 2018 |
December 30, 2017 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 148,641 | $ | 242,416 | ||||
| Short-term investments |
40,323 | 48,928 | ||||||
| Trade accounts receivable, less allowance of $6,549 and $6,131 |
688,961 | 631,164 | ||||||
| Other receivables, including advances to independent contractors, less allowance of $6,495 and $6,012 |
20,737 | 24,301 | ||||||
| Other current assets |
29,553 | 14,394 | ||||||
|
|
|
|
|
|||||
| Total current assets |
928,215 | 961,203 | ||||||
|
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|
|
|
|||||
| Operating property, less accumulated depreciation and amortization of $232,760 and $218,700 |
256,096 | 276,011 | ||||||
| Goodwill |
38,704 | 39,065 | ||||||
| Other assets |
85,880 | 76,181 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,308,895 | $ | 1,352,460 | ||||
|
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|
|
|
|||||
| LIABILITIES AND EQUITY |
||||||||
| Current liabilities: |
||||||||
| Cash overdraft |
$ | 45,365 | $ | 42,242 | ||||
| Accounts payable |
311,768 | 285,132 | ||||||
| Current maturities of long-term debt |
38,869 | 42,051 | ||||||
| Insurance claims |
42,546 | 38,919 | ||||||
| Dividends payable |
— | 62,985 | ||||||
| Accrued compensation |
19,041 | 30,103 | ||||||
| Other current liabilities |
51,285 | 47,211 | ||||||
|
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|
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|
|||||
| Total current liabilities |
508,874 | 548,643 | ||||||
|
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|
|||||
| Long-term debt, excluding current maturities |
65,093 | 83,062 | ||||||
| Insurance claims |
30,205 | 30,141 | ||||||
| Deferred income taxes and other non-current liabilities |
43,790 | 36,737 | ||||||
| Equity |
||||||||
| Landstar System, Inc. and subsidiary shareholders’ equity Common stock, $0.01 par value, authorized 160,000,000 shares, issued 67,847,692 and 67,740,380 shares |
678 | 677 | ||||||
| Additional paid-in capital |
216,328 | 209,599 | ||||||
| Retained earnings |
1,719,475 | 1,611,158 | ||||||
| Cost of 26,754,810 and 25,749,493 shares of common stock in treasury |
(1,273,489 | ) | (1,167,600 | ) | ||||
| Accumulated other comprehensive loss |
(5,284 | ) | (3,162 | ) | ||||
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|
|||||
| Total Landstar System, Inc. and subsidiary shareholders’ equity |
657,708 | 650,672 | ||||||
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|
|||||
| Noncontrolling interest |
3,225 | 3,205 | ||||||
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|||||
| Total equity |
660,933 | 653,877 | ||||||
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|||||
| Total liabilities and equity |
$ | 1,308,895 | $ | 1,352,460 | ||||
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|
|||||
LANDSTAR SYSTEM/ 7
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
| Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| June 30, | July 1, | June 30, | July 1, | |||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue generated through (in thousands): |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 1,369,476 | $ | 978,918 | $ | 713,341 | $ | 509,135 | ||||||||
| Unsided/platform equipment |
664,045 | 520,658 | 364,676 | 283,481 | ||||||||||||
| Less-than-truckload |
50,948 | 42,799 | 27,364 | 22,942 | ||||||||||||
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|||||||||
| Total truck transportation |
2,084,469 | 1,542,375 | 1,105,381 | 815,558 | ||||||||||||
| Rail intermodal |
61,587 | 44,357 | 32,295 | 21,515 | ||||||||||||
| Ocean and air cargo carriers |
51,506 | 41,185 | 28,029 | 21,595 | ||||||||||||
| Other (1) |
33,150 | 23,425 | 17,081 | 11,766 | ||||||||||||
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|||||||||
| $ | 2,230,712 | $ | 1,651,342 | $ | 1,182,786 | $ | 870,434 | |||||||||
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|||||||||
| Revenue on loads hauled via BCO Independent Contractors (2) included in total truck transportation |
$ | 998,953 | $ | 776,085 | $ | 527,803 | $ | 411,177 | ||||||||
| Number of loads: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
691,866 | 613,565 | 354,947 | 315,499 | ||||||||||||
| Unsided/platform equipment |
255,334 | 236,427 | 135,543 | 125,242 | ||||||||||||
| Less-than-truckload |
70,670 | 64,508 | 37,250 | 34,589 | ||||||||||||
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|||||||||
| Total truck transportation |
1,017,870 | 914,500 | 527,740 | 475,330 | ||||||||||||
| Rail intermodal |
26,840 | 20,960 | 13,560 | 10,310 | ||||||||||||
| Ocean and air cargo carriers |
13,030 | 11,940 | 6,700 | 6,210 | ||||||||||||
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|||||||||
| 1,057,740 | 947,400 | 548,000 | 491,850 | |||||||||||||
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|||||||||
| Loads hauled via BCO Independent Contractors (2) included in total truck transportation |
480,890 | 453,860 | 247,710 | 235,630 | ||||||||||||
| Revenue per load: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 1,979 | $ | 1,595 | $ | 2,010 | $ | 1,614 | ||||||||
| Unsided/platform equipment |
2,601 | 2,202 | 2,690 | 2,263 | ||||||||||||
| Less-than-truckload |
721 | 663 | 735 | 663 | ||||||||||||
| Total truck transportation |
2,048 | 1,687 | 2,095 | 1,716 | ||||||||||||
| Rail intermodal |
2,295 | 2,116 | 2,382 | 2,087 | ||||||||||||
| Ocean and air cargo carriers |
3,953 | 3,449 | 4,183 | 3,477 | ||||||||||||
| Revenue per load on loads hauled via BCO Independent Contractors (2) |
$ | 2,077 | $ | 1,710 | $ | 2,131 | $ | 1,745 | ||||||||
| Revenue by capacity type (as a % of total revenue); |
||||||||||||||||
| Truck capacity providers: |
||||||||||||||||
| BCO Independent Contractors (2) |
45 | % | 47 | % | 45 | % | 47 | % | ||||||||
| Truck Brokerage Carriers |
49 | % | 46 | % | 49 | % | 46 | % | ||||||||
| Rail intermodal |
3 | % | 3 | % | 3 | % | 2 | % | ||||||||
| Ocean and air cargo carriers |
2 | % | 2 | % | 2 | % | 2 | % | ||||||||
| Other |
1 | % | 1 | % | 1 | % | 1 | % | ||||||||
| June 30, | July 1, | |||||||||||||||
| 2018 | 2017 | |||||||||||||||
| Truck Capacity Providers |
||||||||||||||||
| BCO Independent Contractors (2) |
9,501 | 8,818 | ||||||||||||||
|
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|
|||||||||||||
| Truck Brokerage Carriers: |
||||||||||||||||
| Approved and active (3) |
37,045 | 31,636 | ||||||||||||||
| Other approved |
15,406 | 15,381 | ||||||||||||||
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|
|
|||||||||||||
| 52,451 | 47,017 | |||||||||||||||
|
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|
|||||||||||||
| Total available truck capacity providers |
61,952 | 55,835 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| Trucks provided by BCO Independent Contractors (2) |
10,155 | 9,404 | ||||||||||||||
| (1) | Includes primarily reinsurance premium revenue generated by the insurance segment and, during the 2018 fiscal year and quarter, intra-Mexico transportation services revenue generated by Landstar Metro. |
| (2) | BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. |
| (3) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
July 25, 2018 Landstar System, Inc. Earnings Conference Call Second Quarter 2018 Date Published: 07/25/2018 Exhibit 99.2
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made during this presentation that are not based on historical facts are “forward looking statements.” During this presentation, I may make certain statements, containing forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Such statements are by nature subject to uncertainties and risks, including but not limited to: the operational, financial and legal risks detailed in Landstar’s Form 10-K for the 2017 fiscal year, described in the section Risk Factors, and 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 Landstar undertakes no obligation to publicly update or revise any forward-looking statements. Date Published: 07/25/2018
Model Definition Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third party capacity providers and employees. Date Published: 07/25/2018
The Network Landstar Employees Approx. 1,300 Agents Approx. 1,200 Customers 25,000+ Capacity 59,000+ 2017 Results $3.6 billion in revenue 2.0 million loadings 542 million dollar agents 9,696 BCO trucks (2017 year-end) 49,934 Carriers (2017 year-end) 15,000+ Trailers (2017 year-end) Date Published: 07/25/2018
Percentage of Revenue 2Q17 2Q18 Truck Transportation Truckload Van equipment 58% 60% Unsided/platform equipment 33% 31% Less-than-truckload 3% 2% Rail intermodal 2% 3% Ocean and air cargo 2% 2% Transportation Management Services Date Published: 07/25/2018
Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Revenue ($’s in thousands) Date Published: 07/25/2018 Quarter Year-to-Date Qtr over Prior Year Qtr Rate (1) Volume (2) Change Truck Revenue 0.221 0.11 0.35499999999999998 Rail Intermodal Revenue 0.14099999999999999 0.315 0.501 Ocean/Air Revenue 0.20300000000000001 7.9% 0.29799999999999999 Insurance Premiums NA NA 0.106 Total Revenue 0.35899999999999999 Year over Prior Year Rate (1) Volume (2) Change Truck Revenue 0.214 0.113 0.35099999999999998 Rail Intermodal Revenue 8.4% 0.28100000000000003 0.38800000000000001 Ocean/Air Revenue 0.14599999999999999 9.0999999999999998 0.251 Insurance Premiums NA NA 8.5% Total Revenue 0.35099999999999998
Van Equipment Unsided/Platform Equipment Truckload Loadings and Revenue per Load (Excludes LTL) Date Published: 07/25/2018
As a Percentage of Revenue 2Q17 2Q18 Quarter over Prior Year Quarter Growth Consumer Durables 21.1 22.8 47% Machinery 15.2 14.5 30% Automotive 8.2 8.0 33% Building Products 9.7 9.5 34% Metals 6.7 6.9 41% AA&E, Hazmat 9.0 9.0 37% Foodstuffs 4.7 5.6 61% Energy 3.7 2.3 -16% Other 21.7 21.4 34% Transportation Revenue 100.0 100.0 36% Industries Served Date Published: 07/25/2018
15.2% 14.5% Gross profit equals revenue less the cost of purchased transportation and commissions to agents. Gross profit margin equals gross profit divided by revenue. Revenue on transactions with a fixed gross profit margin was 54% and 52% of revenue in the 2017 and 2018 year-to-date periods, respectively, and 54% and 51% of revenue in the 2017 and 2018 second quarters, respectively. Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Date Published: 07/25/2018 Quarter Year-to-Date 15.4% 14.7% 2nd Qtr (3) Changes in gross profit margin % 2017 Period 15.2 Revenue - fixed gp margin -0.1 Revenue - variable gp margin -0.1 Change in mix and other -0.5 2018 Period 14.5 2nd Qtr YTD (3) Changes in gross profit margin % 2017 Period 15.4 Revenue - fixed gp margin -0.1 Revenue - variable gp margin -0.2 Change in mix and other -0.4 2018 Period 14.7
50.5% 48.4% 4 Operating margin equals operating income divided by gross profit. Operating Income and Operating Margin (1) ($’s in thousands) Date Published: 07/25/2018 Quarter Year-to-Date 46.0% 48.7% 44.6% 10 48.5% 2nd Qtr Changes in operating margin % 2017 Period 46 Other operating costs 1.2 Insurance and claims -2 SG&A 2.2999999999999998 Depreciation and amortization 1.2 2018 Period 48.7 2nd Qtr YTD Changes in operating margin % 2017 Period 44.6 Other operating costs 1 Insurance and claims -0.6 SG&A 2.2999999999999998 Depreciation and amortization 1.2 2018 Period 48.5
Date Published: 07/25/2018 Truck Capacity Data (All information is provided as of the end of the period) KEY INCOME STATEMENT DATA ($ in Millions) % of 2013 % of 2013 % of 2012 Rev/GP Plan Rev/GP Proj Rev/GP Jul 1, Dec 30, Jun 30, External Revenue $9,087 #REF! #REF! 2017 (2) 2017 2018 (2) Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! BCO Independent Contractors 8,818 9,087 9,501 Truck Brokerage Carriers: Interest and Debt Expense #REF! #REF! #REF! Approved and Active (1) 31,636 34,243 37,045 Income Before Income Taxes #REF! #REF! #REF! Other Approved 15,381 15,691 15,406 47,017 49,934 52,451 Income Taxes #REF! #REF! #REF! Total Available Truck Capacity Providers 55,835 59,021 61,952 Trucks Provided by BCO Independent Contractors 9,404 9,696 10,155 (1) Active refers to truck brokerage carriers who hauled freight for Landstar in the 180 day period immediately preceding the period end. (2) Fuel surcharges billed to customers on freight hauled by BCO Independent Contractors, which are paid 100% to the BCO and excluded from revenue, and the cost of purchased transportation were $117.0 million and $80.6 million in the 2018 and 2017 year-to-date periods, respectively, and $62.6 million and $42.1 million in the 2018 and 2017 second quarters, respectively.
(1) Net cash is defined as cash and cash equivalents plus short term investments less outstanding debt. Date Published: 07/25/2018 Key Balance Sheet and Cash Flow Statistics ($’s in thousands) % of 2013 % of 2013 % of 2012 Rev/GP Plan Rev/GP Proj Rev/GP YTD YTD Jul 1, Jun 30, External Revenue $0.21 #REF! #REF! 2017 2018 Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Balance sheet (period end amounts): Debt to Capital 0.16 0.14000000000000001 Net Cash (1) $,154,274 $85,002 Cash flow: Cash flow from operations $79,799 $,113,029 Capital expenditures $6,628 $4,121 Income Before Income Taxes #REF! #REF! #REF! Share repurchases $0 $,105,488 Dividends paid $7,544 $75,481 Returns: TTM Return on Equity 0.27 0.35 TTM Return on Invested Capital 0.22 0.28999999999999998 TTM Return on Assets 0.14000000000000001 0.18
Free Cash Flow (1) / Share Purchases Date Published: 07/25/2018 (In Thousands) (1) Free cash flow is defined as cash flow from operations less capital expenditures, each set forth on the prior slide. Second quarter 2018 YTD (000's) Free cash flow (1) $,108,908 Share purchases $,105,488 Ending common share count 41,093
Date Published: 07/25/2018