PART I – Financial Information | ||
Page 4 | ||
Page 5 | ||
Page 6 | ||
Page 7 | ||
Page 8 | ||
Page 10 | ||
Page 19 | ||
Page 32 | ||
Page 32 | ||
PART II – Other Information | ||
Page 33 | ||
Page 33 | ||
Page 34 | ||
Page 34 | ||
Page 36 |
EX – 31.1 Section 302 CEO Certification |
EX – 31.2 Section 302 CFO Certification |
EX – 32.1 Section 906 CEO Certification |
EX – 32.2 Section 906 CFO Certification |
September 26, 2020 |
December 28, 2019 |
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ASSETS | ||||||||
Current Assets |
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Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
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Trade accounts receivable, less allowance of $ |
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Other receivables, including advances to independent contractors, less allowance of $ |
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Other current assets |
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Total current assets |
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Operating property, less accumulated depreciation and amortization of $ |
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Goodwill |
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Other assets |
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Total assets |
$ | $ | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities |
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Cash overdraft |
$ | $ | ||||||
Accounts payable |
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Current maturities of long-term debt |
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Insurance claims |
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Dividends payable |
— | |||||||
Contractor escrow |
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Other current liabilities |
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Total current liabilities |
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Long-term debt, excluding current maturities |
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Insurance claims |
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Deferred income taxes and other noncurrent liabilities |
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Shareholders’ Equity |
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Common stock, $ |
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Additional paid-in capital |
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Retained earnings |
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Cost of |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
$ | $ | ||||||
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Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
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Revenue |
$ | $ | $ | $ | ||||||||||||
Investment income |
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Costs and expenses: |
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Purchased transportation |
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Commissions to agents |
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Other operating costs, net of gains/losses on asset sales/dispositions |
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Insurance and claims |
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Selling, general and administrative |
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Depreciation and amortization |
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Impairment of intangible and other assets |
— | — | — | |||||||||||||
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Total costs and expenses |
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Operating income |
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Interest and debt expense |
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Income before income taxes |
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Income taxes |
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Net income |
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Less: Net loss attributable to noncontrolling interest |
— | ( |
) | — | — | |||||||||||
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Net income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Earnings per common share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Average number of shares outstanding: |
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Earnings per common share |
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Diluted earnings per share |
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Dividends per common share |
$ | $ | $ | $ | ||||||||||||
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Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
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N et income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
Other comprehensive (loss) income: |
||||||||||||||||
Unrealized holding gains on available-for-sale |
||||||||||||||||
Foreign currency translation (losses) gains |
( |
) | ( |
) | ||||||||||||
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Other comprehensive (loss) income |
( |
) | ( |
) | ||||||||||||
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Comprehensive income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Thirty Nine Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
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OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization of operating property and intangible assets |
||||||||
Non-cash interest charges |
||||||||
Provisions for losses on trade and other accounts receivable |
||||||||
Gains on sales/disposals of operating property |
( |
) | ( |
) | ||||
Impairment of intangible and other assets |
— | |||||||
Deferred income taxes, net |
||||||||
Stock-based compensation |
||||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in trade and other accounts receivable |
( |
) | ||||||
Increase in other assets |
( |
) | ( |
) | ||||
Increase (decrease) in accounts payable |
( |
) | ||||||
Increase (decrease) in other liabilities |
( |
) | ||||||
Increase in insurance claims |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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INVESTING ACTIVITIES |
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Net changes in other short-term investments |
— | |||||||
Sales and maturities of investments |
||||||||
Purchases of investments |
( |
) | ( |
) | ||||
Purchases of operating property |
( |
) | ( |
) | ||||
Proceeds from sales of operating property |
||||||||
Consideration paid for acquisition |
( |
) | — | |||||
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NET CASH USED BY INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
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FINANCING ACTIVITIES |
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Decrease in cash overdraft |
( |
) | ( |
) | ||||
Dividends paid |
( |
) | ( |
) | ||||
Payment for debt issue costs |
( |
) | — | |||||
Proceeds from exercises of stock options |
||||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans |
( |
) | ( |
) | ||||
Purchases of common stock |
( |
) | ( |
) | ||||
Principal payments on finance lease obligations |
( |
) | ( |
) | ||||
Purchase of noncontrolling interest |
— | ( |
) | |||||
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NET CASH USED BY FINANCING ACTIVITIES |
( |
) | ( |
) | ||||
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Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
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(Decrease) increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ | $ | ||||||
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Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
(Loss) Income |
Total |
|||||||||||||||||||||||||
Balance December 28, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | |
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Adoption of accounting standard (Note 15 ) |
( |
( |
) | |||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
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|||||||||||||||||
Balance March 28, 2020 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | ||||||||||||||||||||||
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Net income |
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Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
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Other comprehensive income |
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Balance June 27, 2020 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | ||||||||||||||||||||||
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Net income |
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Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | |||||||||||||||||||||||||||||
Stock-based compensation |
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Other comprehensive income |
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Balance September 26, 2020 |
$ | $ | $ |
$ | ( |
) | $ |
( |
$ | |||||||||||||||||||||||
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Landstar System, Inc. and Subsidiary Shareholders |
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Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
Non-controlling |
|||||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
(Loss) Income |
Interests |
Total |
||||||||||||||||||||||||||||
Balance December 29, 2018 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |
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Net income (loss) |
( |
) | ||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive income |
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Balance March 30, 2019 |
$ | $ | $ | |
$ | ( |
) | $ |
( |
) |
$ | $ | ||||||||||||||||||||||||
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Net income |
||||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive income |
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|||||||||||||||||||
Balance June 29, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |||||||||||||||||||||||||
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Net income |
||||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | |||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
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|||||||||||||||||||
Balance September 28, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |||||||||||||||||||||||||
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(1) |
Significant Accounting Policies |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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Mode |
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
||||||||||||
BCO Independent Contractors – |
% | % | % | % | ||||||||||||
Brokerage Carriers - |
% | % | % | % | ||||||||||||
Rail intermodal |
% | % | % | % | ||||||||||||
Ocean and air cargo carriers |
% | % | % | % | ||||||||||||
Equipment Type - Truck |
||||||||||||||||
Van equipment |
$ | |
$ | |
$ | |
$ | |
||||||||
Unsided/platform equipment |
$ | $ | $ | $ | ||||||||||||
Less-than-truckload |
$ | $ | $ | $ |
(2) |
Acquired Business |
(3) |
Share-based Payment Arrangements |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Total cost of the Plans during the period |
$ | $ | $ | |
$ | |
||||||||||
Amount of related income tax benefit recognized during the period |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net cost of the Plans during the period |
$ |
$ | $ | $ | ||||||||||||
Number of RSUs |
Weighted Average Grant Date Fair Value |
|||||||
Outstanding at December 28, 2019 |
$ | |||||||
Granted |
$ | |
||||||
Shares earned in excess of target (1) |
$ | |||||||
Vested shares, including shares earned in excess of target |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
Outstanding at September 26, 2020 |
$ | |||||||
(1) |
Represents additional shares earned under the February 2, 2017 RSU awards as 2019 financial results exceeded target performance level. |
Number of Options |
Weighted Average Exercise Price per Share |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value (000s) |
|||||||||||||
Options outstanding at December 28, 2019 |
$ | |
||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
Options outstanding at September 26, 2020 |
$ | $ | |
|||||||||||||
Options exercisable at September 26, 2020 |
$ | $ | ||||||||||||||
Number of Shares and Deferred Stock Units |
Weighted Average Grant Date Fair Value |
|||||||
Non-vested at December 28, 2019 |
$ | |||||||
Granted |
$ | |||||||
Vested |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
Non-vested at September 26, 2020 |
$ | |||||||
(4) |
Income Taxes |
(5) |
Earnings Per Share |
(6) |
Additional Cash Flow Information |
(7) |
Segment Information |
Thirty Nine Weeks Ended |
||||||||||||||||||||||||
September 26, 2020 |
September 28, 2019 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
||||||||||||||||||||||||
Goodwill |
Thirteen Weeks Ended |
||||||||||||||||||||||||
September 26, 2020 |
September 28, 2019 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
(8) |
Other Comprehensive Income |
Unrealized Holding Gains on Available-for-Sale Securities |
Foreign Currency Translation |
Total |
||||||||||
Balance as of December 28, 2019 |
$ | |
$ | ( |
) | $ | ( |
) | ||||
Other comprehensive gain (loss) |
( |
) | ( |
) | ||||||||
Balance as of September 26, 2020 |
$ | $ | ( |
) | $ | ( |
) | |||||
(9) |
Investments |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
September 26, 2020 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
Total |
$ | |
$ | |
$ | $ | |
|||||||||
December 28, 2019 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
|||||||||||||||||||
September 26, 2020 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
Total |
$ | $ | |
$ | — | $ | — | $ | $ | |
||||||||||||||
December 28, 2019 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||||||||||
U.S. Treasury obligations |
— | — | ||||||||||||||||||||||
Total |
$ | |
$ | $ | |
$ | $ | |
$ | |||||||||||||||
(10) |
Leases |
Finance leases: |
||||
Amortization of right-of-use |
$ | |
||
Interest on lease liability |
||||
Total finance lease cost |
||||
Operating leases: |
||||
Lease cost |
||||
Variable lease cost |
— | |||
Sublease income |
( |
) | ||
Total net operating lease income |
( |
) | ||
Total net lease cost |
$ | |||
Operating lease right-of-use assets |
Other assets | $ | ||||||
Finance lease assets |
Operating property, less accumulated depreciation and amortization | |||||||
Total lease assets |
$ | |||||||
Finance Leases |
Operating Leases |
|||||||
2020 Remainder |
$ | |
$ | |||||
2021 |
||||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
Thereafter |
||||||||
Total future minimum lease payments |
||||||||
Less amount representing interest ( |
||||||||
Present value of minimum lease payments |
$ | $ | ||||||
Current maturities of long-term debt |
||||||||
Long-term debt, excluding current maturities |
||||||||
Other current liabilities |
||||||||
Deferred income taxes and other noncurrent liabilities |
Finance Leases |
Operating Leases |
|||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
% | % |
(11) |
Debt |
(12) |
Commitments and Contingencies |
(1 3 ) |
Change in Accounting Estimate for Self-Insured Claims |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Operating income |
$ | $ | $ | $ | ||||||||||||
Net income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ |
||||||||||||
Earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ |
(14) |
Impairment of Intangible and Other Assets |
(1 5 ) |
Recent Accounting Pronouncements |
(1 6 ) |
Subsequent Event |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Revenue generated through (in thousands): |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
$ | 1,694,916 | $ | 1,799,421 | $ | 666,582 | $ | 575,042 | ||||||||
Unsided/platform equipment |
848,187 | 980,615 | 314,471 | 331,787 | ||||||||||||
Less-than-truckload |
70,984 | 73,475 | 25,125 | 25,367 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total truck transportation |
2,614,087 | 2,853,511 | 1,006,178 | 932,196 | ||||||||||||
Rail intermodal |
81,747 | 87,555 | 30,432 | 28,970 | ||||||||||||
Ocean and air cargo carriers |
89,002 | 89,258 | 31,752 | 30,365 | ||||||||||||
Other (1) |
51,790 | 59,374 | 17,184 | 20,127 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,836,626 | $ | 3,089,698 | $ | 1,085,546 | $ | 1,011,658 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation |
$ | 1,312,003 | $ | 1,390,135 | $ | 502,224 | $ | 466,207 | ||||||||
Number of loads: |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
946,117 | 1,014,572 | 345,598 | 327,671 | ||||||||||||
Unsided/platform equipment |
356,670 | 391,112 | 125,548 | 130,192 | ||||||||||||
Less-than-truckload |
119,533 | 115,616 | 41,454 | 41,067 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total truck transportation |
1,422,320 | 1,521,300 | 512,600 | 498,930 | ||||||||||||
Rail intermodal |
33,410 | 35,370 | 11,900 | 11,490 | ||||||||||||
Ocean and air cargo carriers |
22,720 | 22,150 | 8,290 | 7,340 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,478,450 | 1,578,820 | 532,790 | 517,760 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation |
693,860 | 722,870 | 250,030 | 239,210 | ||||||||||||
Revenue per load: |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
$ | 1,791 | $ | 1,774 | $ | 1,929 | $ | 1,755 | ||||||||
Unsided/platform equipment |
2,378 | 2,507 | 2,505 | 2,548 | ||||||||||||
Less-than-truckload |
594 | 636 | 606 | 618 | ||||||||||||
Total truck transportation |
1,838 | 1,876 | 1,963 | 1,868 | ||||||||||||
Rail intermodal |
2,447 | 2,475 | 2,557 | 2,521 | ||||||||||||
Ocean and air cargo carriers |
3,917 | 4,030 | 3,830 | 4,137 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors |
$ | 1,891 | $ | 1,923 | $ | 2,009 | $ | 1,949 | ||||||||
Revenue by capacity type (as a % of total revenue): |
||||||||||||||||
Truck capacity providers: |
||||||||||||||||
BCO Independent Contractors |
46 | % | 45 | % | 46 | % | 46 | % | ||||||||
Truck Brokerage Carriers |
46 | % | 47 | % | 46 | % | 46 | % | ||||||||
Rail intermodal |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Ocean and air cargo carriers |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Other |
2 | % | 2 | % | 2 | % | 2 | % |
(1) |
Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
September 26, 2020 |
September 28, 2019 |
|||||||
BCO Independent Contractors |
9,866 | 9,738 | ||||||
Truck Brokerage Carriers: |
||||||||
Approved and active (1) |
41,246 | 39,963 | ||||||
Other approved |
22,181 | 16,984 | ||||||
|
|
|
|
|||||
63,427 | 56,947 | |||||||
|
|
|
|
|||||
Total available truck capacity providers |
73,293 | 66,685 | ||||||
|
|
|
|
|||||
Trucks provided by BCO Independent Contractors |
10,571 | 10,441 |
(1) |
Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Revenue |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Purchased transportation |
77.0 | 76.6 | 77.3 | 76.6 | ||||||||||||
Commissions to agents |
8.3 | 8.3 | 7.9 | 8.4 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit margin |
14.7 | % | 15.1 | % | 14.8 | % | 15.1 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Investment income |
0.7 | 0.8 | 0.4 | 0.9 | ||||||||||||
Indirect costs and expenses: |
||||||||||||||||
Other operating costs, net of gains/losses on asset sales/dispositions |
5.5 | 6.1 | 4.6 | 6.8 | ||||||||||||
Insurance and claims |
16.0 | 11.9 | 13.6 | 15.7 | ||||||||||||
Selling, general and administrative |
29.9 | 25.9 | 24.1 | 25.0 | ||||||||||||
Depreciation and amortization |
8.2 | 7.1 | 7.0 | 7.0 | ||||||||||||
Impairment of intangible and other assets |
0.6 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total costs and expenses |
60.2 | 51.0 | 49.3 | 54.6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
40.4 | % | 49.8 | % | 51.2 | % | 46.3 | % | ||||||||
|
|
|
|
|
|
|
|
+ | Management contract or compensatory plan or arrangement |
* | Filed herewith |
** | Furnished herewith |
LANDSTAR SYSTEM, INC. | ||||||
Date: October 30, 2020 | /s/ James B. Gattoni | |||||
James B. Gattoni | ||||||
President and | ||||||
Chief Executive Officer | ||||||
Date: October 30, 2020 | /s/ L. Kevin Stout | |||||
L. Kevin Stout | ||||||
Vice President and Chief | ||||||
Financial Officer |
EXHIBIT 31.1
I, James B. Gattoni, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Landstar System, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: October 30, 2020
/s/ James B. Gattoni |
James B. Gattoni |
President and Chief Executive Officer |
EXHIBIT 31.2
I, L. Kevin Stout, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Landstar System, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: October 30, 2020
/s/ L. Kevin Stout |
L. Kevin Stout |
Vice President and Chief Financial Officer |
EXHIBIT 32.1
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Landstar System, Inc. (the Company) on Form 10-Q for the period ending September 26, 2020, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, James B. Gattoni, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: October 30, 2020
/s/ James B. Gattoni |
James B. Gattoni |
President and Chief Executive Officer |
EXHIBIT 32.2
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Landstar System, Inc. (the Company) on Form 10-Q for the period ending September 26, 2020, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, L. Kevin Stout, Vice President and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: October 30, 2020
/s/ L. Kevin Stout |
L. Kevin Stout |
Vice President and Chief Financial Officer |