UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 30, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _________________ to _____________________.
Commission File Number: 0-21238
LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)
Delaware 06-1313069
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
First Shelton Place, 1000 Bridgeport Avenue, Shelton, Connecticut
(Address of principal executive offices)
06484-0898
(Zip Code)
(203) 925-2900
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes ( X ) No ( )
The number of shares of the registrant's Common Stock, par value $.01 per
share, outstanding as of the close of business on May 6, 1996 was
12,779,633.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
The interim consolidated financial statements contained herein reflect
all adjustments (all of a normal, recurring nature) which, in the opinion of
management, are necessary for a fair statement of the financial condition,
results of operations, cash flows and changes in shareholders' equity
for the periods presented. They have been prepared in accordance with Rule
10-01 of Regulation S-X and do not include all the information and footnotes
required by generally accepted accounting principles for complete financial
statements. Operating results for the thirteen week period ended March 30,
1996 are not necessarily indicative of the results that may be expected for
the entire fiscal year ending December 28, 1996.
These interim financial statements should be read in conjunction with
the audited financial statements and notes thereto included in the Company's
1995 Annual Report on Form 10-K.
Index
Item 1
Consolidated Balance Sheets as of March 30, 1996
and December 30, 1995 ........................................ Page 3
Consolidated Statements of Income for the Thirteen Weeks
Ended March 30, 1996 and April 1, 1995 ....................... Page 4
Consolidated Statements of Cash Flows for the Thirteen Weeks
Ended March 30, 1996 and April 1, 1995 ....................... Page 5
Consolidated Statement of Changes in Shareholders'
Equity for the Thirteen Weeks Ended March 30, 1996............ Page 6
Notes to Consolidated Financial Statements...................... Page 7
Item 2
Management's Discussion and Analysis of
Financial Condition and Results of Operations ................ Page 9
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
March 30, December 30,
1996 1995
---------- ------------
ASSETS
Current assets:
Cash $ 4,637 $ 3,415
Trade accounts receivable, less allowance of $6,793 153,896 151,009
and $6,923
Other receivables, including advances to independent
contractors, less allowance of $4,755 and $4,205 17,180 13,359
Inventories 2,113 2,292
Prepaid expenses and other current assets 8,520 8,501
---------- -----------
Total current assets 186,346 178,576
---------- -----------
Operating property, less accumulated depreciation
and amortization of $42,410 and $39,796 111,282 108,052
Goodwill, less accumulated amortization of $5,785 and $5,354 56,618 57,049
Deferred income taxes and other assets 9,152 9,402
---------- -----------
Total assets $ 363,398 $ 353,079
========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft $ 9,339 $ 13,449
Accounts payable 44,740 37,427
Current maturities of long-term debt 28,215 20,668
Estimated insurance claims 25,483 23,654
Other current liabilities 29,412 32,018
---------- -----------
Total current liabilities 137,189 127,216
---------- -----------
Long-term debt, excluding current maturities 71,362 73,199
Estimated insurance claims 23,049 24,031
Other liabilities 211 237
Shareholders' equity:
Common stock, $.01 par value, authorized 20,000,000
shares, issued 12,873,674 shares and 12,871,674 shares 129 129
Additional paid-in capital 61,541 61,504
Retained earnings 71,884 68,730
Cost of 94,041 shares of common stock in treasury (1,967) (1,967)
----------- -----------
Total shareholders' equity 131,587 128,396
----------- -----------
Total liabilities and shareholders' equity $ 363,398 $ 353,079
=========== ===========
See accompanying notes to consolidated financial statements.
3
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
Thirteen Weeks Ended
--------------------------
March 30, April 1,
1996 1995
----------- -----------
Revenue $ 295,477 $ 295,706
Costs and expenses:
Purchased transportation 200,213 201,024
Drivers' wages and benefits 11,505 11,921
Fuel and other operating costs 17,778 16,907
Insurance and claims 9,797 9,595
Commissions to agents and brokers 18,767 17,220
Selling, general and administrative 24,070 24,670
Depreciation and amortization 6,014 4,671
----------- -----------
Total costs and expenses 288,144 286,008
----------- -----------
Operating income 7,333 9,698
Interest and debt expense, net 1,922 1,528
----------- -----------
Income before income taxes 5,411 8,170
Income taxes 2,257 3,413
----------- -----------
Net income $ 3,154 $ 4,757
=========== ===========
Earnings per share $ 0.25 $ 0.37
=========== ===========
Average number of common shares outstanding 12,779,000 12,848,000
=========== ===========
See accompanying notes to consolidated financial statements.
4
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Thirteen Weeks Ended
----------------------------
March 30, April 1,
1996 1995
----------- -----------
OPERATING ACTIVITIES
Net income $ 3,154 $ 4,757
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization of operating property 5,479 4,282
Amortization of goodwill and non-competition agreements 535 389
Non-cash interest charges 66 63
Provisions for losses on trade and other accounts
receivable 811 1,465
Gains on sales of operating property (1,132) (219)
Deferred income taxes, net 58 213
Changes in operating assets and liabilities,
net of businesses acquired:
Increase in trade and other accounts receivable (7,519) (1,609)
Decrease (increase) in inventories, prepaid
expenses and other assets 182 (1,481)
Increase (decrease) in accounts payable and
other liabilities 4,681 (8,967)
Increase in estimated insurance claims 847 2,535
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 7,162 1,428
----------- -----------
INVESTING ACTIVITIES
Purchases of businesses, net of cash acquired (32,403)
Purchases of operating property (2,178) (2,657)
Proceeds from sales of operating property 3,260 1,548
----------- -----------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 1,082 (33,512)
----------- -----------
FINANCING ACTIVITIES
Borrowings to finance businesses acquired 45,900
Borrowings under revolving credit facility 7,000
Proceeds from exercise of stock options 37
Decrease in cash overdraft (4,110) (2,241)
Principal payments on long-term debt
and capital lease obligations (9,949) (27,614)
----------- -----------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (7,022) 16,045
----------- -----------
Increase (decrease) in cash 1,222 (16,039)
Cash at beginning of period 3,415 17,755
----------- -----------
Cash at end of period $ 4,637 $ 1,716
=========== ===========
See accompanying notes to consolidated financial statements.
5
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
Thirteen Weeks Ended March 30, 1996
(Dollars in thousands)
(Unaudited)
Treasury Stock
Common Stock Additional at Cost
--------------- Paid-In Retained ----------------
Shares Amount Capital Earnings Shares Amount Total
------- ------ -------- --------- ------ -------- --------
Balance December 30, 1995 12,871,674 $129 $61,504 $68,730 94,041 $(1,967) $128,396
Exercise of Stock Options 2,000 37 37
Net income 3,154 3,154
---------- ---- ------- ------- ------ -------- --------
Balance March 30, 1996 12,873,674 $129 $61,541 $71,884 94,041 $(1,967) $131,587
========== ==== ======= ======= ====== ======== ========
See accompanying notes to consolidated financial statements.
6
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The consolidated financial statements include the accounts of
Landstar System, Inc. and its subsidiary, Landstar System Holdings,
Inc., and reflect all adjustments (all of a normal, recurring
nature) which are, in the opinion of management, necessary for a
fair statement of the results for the periods presented. The
preparation of the consolidated financial statements requires
the use of management's estimates. Actual results could differ
from those estimates. Landstar System, Inc. and its subsidiary
are herein referred to as "Landstar".
(1) Acquisitions
During the first quarter of 1995, Landstar, through different
subsidiaries of Landstar System Holdings, Inc. ("LSHI"),
acquired the businesses and net assets of Intermodal Transport
Company, a California-based intermodal marketing company, LDS
Truck Lines, Inc., a California-based drayage company, and
T.L.C. Lines, Inc., a Missouri-based temperature-controlled
and long-haul, time sensitive dry van carrier. Also in the
1995 first quarter, Landstar, through another subsidiary of
LSHI, acquired all of the outstanding common stock of Express
America Freight Systems, Inc., a North Carolina-based air
freight and truck expedited service provider.
The following unaudited pro forma information represents the
consolidated results of operations of Landstar and the four
acquired businesses as if the acquisitions had occurred at the
beginning of the period presented, and gives effect to
increased depreciation of operating property, amortization of
goodwill and non-competition agreements and increased interest
expense, at rates available to Landstar under the acquisition
line of its revolving credit facility (in thousands, except
per share amounts):
Thirteen
Weeks Ended
April 1,
1995
---------
Revenue $ 305,306
Net income $ 4,137
Earnings per share $ .32
The above pro forma information is not necessarily indicative
of the results of operations which actually would have been
obtained during such period.
7
(2) Income Taxes
The provisions for income taxes for both the 1996 and 1995
thirteen week periods were based on an estimated combined
full year effective income tax rate of approximately 42%,
which is higher than the statutory federal income tax rate,
primarily as a result of state income taxes, amortization of
certain goodwill and the meals and entertainment exclusion.
(3) Earnings Per Share
Earnings per share amounts were based on the weighted average
number of common shares outstanding.
(4) Additional Cash Flow Information
During the 1996 period, Landstar paid income taxes and
interest of $1,688,000 and $1,795,000, respectively, and
acquired operating property by entering into capital leases in
the amount of $8,659,000. During the 1995 period, Landstar
paid income taxes and interest of $3,014,000 and $1,570,000,
respectively, and acquired operating property by entering into
capital leases in the amount of $6,277,000.
(5) Commitments and Contingencies
At March 30, 1996, Landstar had commitments for letters of
credit outstanding in the amount of $26,939,000, primarily as
collateral for estimated insurance claims.
Landstar is involved in certain claims and pending litigation
arising from the normal conduct of business. Based on the
knowledge of the facts and, in certain cases, opinions of
outside counsel, management believes that adequate provisions
have been made for probable losses with respect to the resolution
of all claims and pending litigation and that the ultimate outcome,
after provisions thereof, will not have a material adverse effect
on the financial condition of Landstar, but could have a material
effect on the results of operations in a given quarter or year.
8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
attached interim consolidated financial statements and notes
thereto, and with the Company's audited financial statements and
notes thereto for the fiscal year ended December 30, 1995 and
Management's Discussion and Analysis of Financial Condition and
Results of Operations, included in the Annual Report to
Shareholders.
RESULTS OF OPERATIONS
Introduction
Landstar System, Inc. and its subsidiary, Landstar System Holdings,
Inc. ("Landstar" or the "Company"), serve a variety of different
market niches through its operating subsidiaries which employ
different operating strategies. Four of Landstar's subsidiaries,
Landstar Ranger, Inc., Landstar Inway, Inc., Landstar Ligon, Inc.
and Landstar Gemini, Inc. (collectively, the "Owner-Operator
Companies"), provide truckload transportation services through
independent contractors and independent commission sales agents.
The nature of the Owner-Operator Companies' business is such that a
significant portion of their operating costs vary directly with
revenue.
Landstar Poole, Inc.("Poole")and Landstar T.L.C., Inc.("TLC")
provide truckload transportation services using both company-owned
or leased equipment driven by company-employed drivers, and independent
contractors. During the thirteen week period ended March 30, 1996,
revenue generated through independent contractors was 36.4% of Poole's
total revenue and 60.4% of TLC's total revenue.
During the first quarter of 1996, the operations of Landstar ITCO,
Inc. and Landstar Logistics, Inc. ("Logistics")were combined.
As a result, Logistics' operations have been divided into a contract
services division and an intermodal services division. The contract
services division provides logistics support, single source alternatives,
dedicated fleet services, brokerage and other transportation solutions
to large customers. The intermodal services division provides intermodal
transportation services primarily by arranging for the movement of
customers' goods by a combination of rail and truck. Both the railroad
and drayage carriers utilized by Logistics are independent contractors.
Landstar Express America, Inc. ("Express") provides air and surface
expedited transportation services through independent contractors,
including air cargo carriers, and principally utilize independent
commission sales agents.
9
Purchased transportation represents the amount an independent contractor
is paid to haul freight and is primarily based on a contractually
agreed upon percentage of revenue generated by the haul for the Owner-
Operator Companies, TLC and the truck operations of Express. Purchased
transportation for Poole is primarily based on a fixed rate per mile.
Purchased transportation for the intermodal services division of
Logistics and the air freight operations of Express is based on a
contractually agreed-upon fixed rate. Purchased transportation
as a percentage of revenue for the intermodal services division of
Logistics is normally higher than that of Landstar's other transportation
companies. Purchased transportation is the largest component of costs
and expenses and, on a consolidated basis, increases or decreases in
proportion to the revenue generated through independent contractors.
Commissions to agents and brokers are primarily based on contractually
agreed upon percentages of revenue except for Express and the
intermodal services division of Logistics which are primarily based on
contractually agreed upon percentages of gross profit. Commissions
to agents and brokers as a percentage of consolidated revenue will vary
directly with the revenue generated through independent commission sales
agents. Both purchased transportation and commissions to agents and brokers
generally will also increase or decrease as a percentage of the Company's
consolidated revenue if there is a change in the percentage of revenue
contributed by the intermodal services division of Logistics or through
air cargo carriers or through company-employed drivers.
Drivers' wages and benefits represent the amount Poole and TLC
employed drivers are compensated. Drivers are compensated on a
cents per mile driven basis. Drivers' wages and benefits as a
percentage of consolidated revenue generally will vary only if
there is a change in the revenue contribution generated through
independent contractors or a change in Poole's or TLC's rate of
driver pay or benefit structure.
The Company's intention is to continue its expansion of truckload
capacity provided by independent contractors and to convert a portion of
its truckload capacity provided by company-owned equipment and company-
employed drivers to independent contractors. It is also the Company's
intention to favor independent commission sales agent locations over
company-owned and operated locations. Historically, the intermodal
services division of Logistics, and TLC have principally utilized a
company employee sales structure and to a lesser degree independent
commission sales agents. During the second quarter of 1995, Management
began the process of converting company-owned sales locations to
independent commission sales agent locations. Accordingly, purchased
transportation and commissions to agents and brokers are anticipated to
increase as a percentage of total consolidated revenue and drivers' wages
and benefits are anticipated to decline as a percentage of total
consolidated revenue over time.
10
Potential liability associated with accidents in the trucking
industry is severe and occurrences are unpredictable. The industry
is also subject to substantial workers' compensation expense. A
material increase in the frequency or severity of accidents or
workers' compensation claims or the unfavorable development of
existing claims can be expected to adversely affect Landstar's
operating income.
The cost of fuel is the largest component of fuel and other
operating costs. Changes in prevailing prices of fuel or increases
in fuel taxes can significantly affect Poole's or TLC's operating
results.
Employee compensation and benefits account for more than half of the
Company's selling, general and administrative expense. Other
significant components of selling, general and administrative
expense are data processing expense, communications costs, rent
expense and allowances for doubtful accounts receivable.
The following table sets forth the percentage relationships of
expense items to revenue for the periods indicated:
Thirteen Weeks Ended
----------------------
March 30, April 1,
1996 1995
---------- ---------
Revenue 100.0% 100.0%
Costs and expenses:
Purchased transportation 67.8% 68.0%
Drivers' wages and benefits 3.9% 4.0%
Fuel and other operating costs 6.0% 5.7%
Insurance and claims 3.3% 3.3%
Commissions to agents and brokers 6.4% 5.8%
Selling, general and administrative 8.1% 8.3%
Depreciation and amortization 2.0% 1.6%
------- -------
Total costs and expenses 97.5% 96.7%
------- -------
Operating income 2.5% 3.3%
Interest and debt expense, net 0.7% 0.5%
------- -------
Income before income taxes 1.8% 2.8%
Income taxes 0.7% 1.2%
------- -------
Net income 1.1% 1.6%
======= =======
11
THIRTEEN WEEKS ENDED MARCH 30, 1996 COMPARED TO THIRTEEN WEEKS
ENDED APRIL 1, 1995
Revenue for the 1996 thirteen week period was $295,477,000, a
decrease of $229,000, or 0.1%, below the 1995 thirteen week
period. Revenue from TLC and Express increased $12,812,000 over
the prior year primarily due to the inclusion of a full quarter's
revenue as these businesses were acquired during the first
quarter of 1995. The decrease of $13,041,000, or
4.4%, at the other operating subsidiaries was attributable
to a decrease of approximately 5,900,000 revenue miles (volume)
to approximately 157,100,000 and a decrease in revenue per
revenue mile (price) of approximately 2%. In the 1996 period,
revenue generated through independent contractors, including
railroads and air cargo carriers, was 88.7% of total consolidated
revenue compared with 88.2% in the 1995 period.
Purchased transportation was 67.8% of revenue in 1996 compared
with 68.0% in 1995. The decrease in purchased transportation as
a percentage of revenue was primarily attributable to decreased
intermodal revenue and the increased revenue contribution
from TLC. Drivers' wages and benefits were 3.9% of revenue in 1996
compared with 4.0% in 1995. The decrease in drivers' wages and
benefits as a percentage of revenue was primarily attributable to
an increase in the percentage of revenue generated through independent
contractors.
Fuel and other operating costs were 6.0% of revenue in 1996 compared
with 5.7% in 1995. The increase in fuel and other operating costs as a
percentage of revenue was attributable to both increased net trailer costs
which primarily reflected decreased rental income from independent contractors
and the effects of the 1995 first quarter acquisition of TLC. Insurance
and claims were 3.3% of revenue in 1996 the same as 1995. Commissions to
agents and brokers were 6.4% of revenue in 1996 compared with 5.8% in 1995,
primarily due to an increased percentage of revenue generated through
independent commission sales agents. Selling, general and administrative
costs were 8.1% of revenue in 1996 compared with 8.3% of revenue in 1995,
primarily due to a lower bonus accrual under the Company's management
incentive compensation plan and lower provisions for bad debts in 1996.
Interest and debt expense, net was 0.7% of revenue in 1996 and 0.5% in 1995
primarily attributable to the borrowings incurred as a result of the
1995 first quarter acquisitions.
The provisions for income taxes for both the 1996 and 1995 thirteen
week periods were based on an estimated full year combined
effective income tax rate of approximately 42%, which is higher
than the statutory federal income tax rate primarily as a result of
state income taxes, amortization of certain goodwill and the meals and
entertainment exclusion.
12
Net income was $3,154,000, or $.25 per share, in the 1996 period compared
with $4,757,000, or $.37 per share, in the 1995 period.
If the 1995 first quarter acquisitions had taken place at the beginning
of 1995, net income for the 1995 period would have been $4,137,000, or
$.32 per share.
CAPITAL RESOURCES AND LIQUIDITY
Shareholders' equity increased to $131,587,000 at March 30,
1996, compared with $128,396,000 at December 30, 1995, primarily
reflecting the results of operations for the period. Shareholders'
equity declined to 56.9% of total capitalization at March 30, 1996,
compared with 57.8% at December 30, 1995, as a result of net borrowings,
including capital lease additions, in excess of net income during the 1996
period.
Working capital and the ratio of current assets to current
liabilities were $49,157,000 and 1.36 to 1, respectively, at March
30, 1996, compared with $51,360,000 and 1.40 to 1, respectively, at
December 30, 1995. Landstar has historically operated with current
ratios ranging from approximately 1.0 to 1 to 1.4 to 1. Cash provided
by operating activities was $7,162,000 in the 1996 thirteen week
period compared with $1,428,000 in the 1995 thirteen week period.
The increase in cash flow provided by operating activities was primarily
attributable to the timing of payments. During the 1996 thirteen
week period, Landstar purchased $2,178,000 of operating property
and acquired $8,659,000 of operating property by entering into
capital leases. Landstar plans to acquire approximately
$41,000,000 of operating property during the remainder of fiscal
year 1996 either by purchase or by lease financing.
Management believes that cash flow from operations combined with
its borrowing capacity under the Amended and Restated Credit Agreement
will be adequate to meet Landstar's debt service requirements, fund
continued growth, both internal and through acquisitions, and meet
working capital needs.
Management does not believe inflation has had a material impact on the
results of operations or financial condition of Landstar in the past five
years. However, inflation higher than that experienced in the past five
years might have an adverse effect on the Company's results of operations.
SEASONALITY
Landstar's operations are subject to seasonal trends common to the
trucking industry. Results of operations for the quarter ending in
March is typically lower than the quarters ending June, September
and December due to reduced shipments and higher operating costs in
the winter months.
13
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
In response to a breach of contract suit filed by Gemini in the Circuit
Court, County of Genesee, in the state of Michigan against Vickie and Kevin
Cresson, individually and doing business as V&C Trucking (the "Defendants"),
who are former agents and independent contractors of Gemini, have asserted
breach of contract and state antitrust law counterclaims against Gemini and
other parties, including EnviroSource, Landstar, Ranger and John B. Bowron,
a director and executive officer of the Company. Defendants' state antitrust
counterclaim relates to the alleged re-awarding, by a Gemini customer, of a
purported contract from Gemini to Ranger. Defendants have claimed approximately
$7,500,000 in actual damages (subject to trebling) as well as punitive damages.
On April 25, 1996, a pre-trial conference was held by the Court at which time
the Court advised the parties that it intends to rule on the parties'
cross-motions for summary judgment but was not then prepared to do so.
Following a ruling on the cross-motions, not now anticipated until later this
year, the Court indicated further discovery of expert witnesses will be
permitted followed by mediation. Trial is now not anticipated until mid to late
1997. The Company believes that it has meritorious defenses to the counter-
claims and has and will continue to vigorously contest such counterclaims.
The Company is routinely a party to litigation incidental to its business,
primarily involving claims for personal injury and property damage incurred
in the transportation of freight. The Company maintains insurance which
covers liability amounts in excess of retained liabilities from personal
injury and property damages claims.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The exhibits listed on the attached Exhibit Index are filed as part
of this quarterly report on Form 10-Q.
(b) Form 8-K
No reports on Form 8-K were filed by the registrant during the
thirteen week period ended March 30, 1996.
14
EXHIBIT INDEX
Registrant's Commission File No.: 0-21238
Exhibit No. Description
- - ----------- -----------
(11) Statement re Computation of Per Share Earnings:
(11.1)* Statement re: Computation of Per Share Earnings for the
Thirteen Weeks ended March 30, 1996 and April 1, 1995.
(27) Statement re Financial Data Schedule:
(27 )* Statement re: Financial Data Schedule
__________________
* Filed herewith
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, thereunto duly authorized.
LANDSTAR SYSTEM, INC.
Date: May 10, 1996 Henry H. Gerkens
----------------------------
Henry H. Gerkens
Executive Vice President &
Chief Financial Officer;
Principal Financial Officer
Date: May 10, 1996 Robert C. LaRose
---------------------------
Robert C. LaRose
Vice President Finance & Treasurer
Principal Accounting Officer
[DESCRIPTION] CALCULATION OF 1996 AND 1995 EARNINGS PER SHARE
EXHIBIT 11.1
LANDSTAR SYSTEM, INC. AND SUBSIDIARY
CALCULATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
(Unaudited)
Thirteen Thirteen
Weeks Ending Weeks Ending
March 30, April 1,
1996 1995
------------ ------------
Earnings available for earnings per share:
Net income $ 3,154 $ 4,757
============ ============
Average number of common shares outstanding 12,779 12,848
============ ============
Earnings per share $ 0.25 $ 0.37
============ ============
5
1,000
OTHER
DEC-28-1996
DEC-31-1995
MAR-30-1996
4,637
0
160,689
6,793
2,113
186,346
153,692
42,410
363,398
137,189
71,362
0
0
129
131,458
363,398
0
295,477
0
229,496
9,797
811
1,922
5,411
2,257
3,154
0
0
0
3,154
0.25
0.25
