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 20, 2016

 

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))	

 

Item 2.02	Results of Operations and Financial Condition	
On July 20, 2016, Landstar System, Inc. issued a press release announcing results for the second quarter of fiscal 2016. 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 20, 2016, 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 21, 2016 in connection with the Company’s release of results for the second quarter of fiscal 2016.
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 20, 2016 of Landstar System, Inc.	
 	 	
99.2	  	Slide Presentation dated July 20, 2016 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 20, 2016	 	 	 	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 20, 2016	 	904-398-9400	
LANDSTAR SYSTEM REPORTS SECOND QUARTER REVENUE OF $775 MILLION
AND DILUTED EARNINGS PER SHARE OF $0.76
Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported second quarter diluted earnings per share of $0.76 on revenue of $775 million in the 2016 second quarter. Net income was negatively impacted by elevated insurance and claims costs, driven mostly by the severity of claims, in the 2016 second quarter, the highest quarterly insurance and claims cost over the past 6 years. Landstar reported diluted earnings per share of $0.92 on revenue of $868 million in the 2015 second quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $121.0 million in the 2016 second quarter compared to $130.8 million in the 2015 second quarter. Operating margin, representing operating income divided by gross profit, was 43.9 percent in the 2016 second quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2016 second quarter was $718.5 million, or 93 percent of revenue, compared to $809.2 million, or 93 percent of revenue, in the 2015 second quarter. Truckload transportation revenue hauled via van equipment in the 2016 second quarter was $458.0 million compared to $496.9 million in the 2015 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2016 second quarter was $242.0 million compared to $291.0 million in the 2015 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $45.1 million, or 6 percent of revenue, in the 2016 second quarter compared to $48.1 million, or 6 percent of revenue, in the 2015 second quarter.

LANDSTAR SYSTEM/ 2
 
Trailing twelve-month return on average shareholders’ equity was 29 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 23 percent. Landstar purchased approximately 423,000 shares of its common stock during the first half of 2016 at an aggregate cost of $26.5 million. Currently, there are approximately 1,386,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program. As of June 25, 2016, the Company had $215 million in cash and short term investments and $214 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 $0.09 per share payable on August 26, 2016, to stockholders of record as of the close of business on August 8, 2016. This quarterly dividend includes a 12.5 percent increase to the amount of the Company’s quarterly dividend declared following each of the prior four quarters. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
Commenting on Landstar’s 2016 second quarter, Landstar’s President and CEO Jim Gattoni said, “On April 20 th , we provided second quarter revenue guidance of $770 million to $820 million and second quarter diluted earnings per share guidance of $0.80 to $0.85. On June 8 th , I updated both our revenue and diluted earnings per share guidance by indicating at a webcast investor conference available to the public that I was more comfortable at the lower end of both the revenue and diluted earnings per share guidance. Revenue of $775 million for the second quarter was in-line with our updated guidance. Diluted earnings per share of $0.76 for the second quarter was below the low end of the updated guidance due to an increase in estimated insurance and claims costs, as a result of a severe accident that occurred at the end of the second quarter.”
Gattoni continued, “Overall, from a revenue standpoint, I believe we executed well considering the sluggish freight environment. During the 2015 second quarter, we hauled over 13,000 truckloads via unsided/platform equipment for a project on behalf of a customer in the automotive sector, generating $27 million of revenue in the 2015

LANDSTAR SYSTEM/ 3
 
second quarter. Excluding the loadings related to that project we experienced a slight increase in loads hauled via truck over the 2015 second quarter. However, Landstar’s truckload services continued to experience significant pricing pressure throughout the 2016 second quarter, as industry-wide truck capacity was more readily available as compared to the 2015 second quarter and demand continued to be soft. Although we experienced a somewhat normal seasonal uptick in revenue per load from May to June, the pricing pressure continued in the U.S. spot market, in which the Company operates much of its business. Additionally, the average cost of a gallon of diesel fuel was approximately 20 percent lower during the 2016 second quarter compared to the 2015 second quarter putting additional pressure on pricing, especially as it relates to loads hauled via truck brokerage carriers. As such, revenue per load on loads hauled via truck was 9 percent lower in the 2016 second quarter compared to the 2015 second quarter.”
Gattoni further commented, “The number of loads hauled via truck in the 2016 second quarter decreased 2 percent from the 2015 second quarter, driven by a 9 percent decrease in the number of loads hauled via unsided/platform equipment, entirely due to the 2015 automotive sector project, partially offset by a 1 percent increase in the number of loads hauled via van equipment. Landstar achieved an 11 percent increase in the number of loads hauled via railroads, ocean cargo carriers and air cargo carriers in the 2016 second quarter over the 2015 second quarter. The softer pricing environment and increased insurance and claims expense drove the 2016 second quarter operating margin down to 43.9 percent, from 50.5 percent in the 2015 second quarter.”
Gattoni continued, “Third quarter 2016 over third quarter 2015 revenue comparisons will include the effects of revenue derived from the automotive project previously referenced. The Company’s 2015 third quarter included approximately $35 million in revenue from approximately 20,000 loads hauled via truck related to that project. The project was completed at the end of 2015. Historically, revenue in the Company’s third fiscal quarter has been relatively consistent with revenue generated in the Company’s second fiscal quarter. Revenue per load on loads hauled via truck in the Company’s third quarter has been slightly ahead of the second quarter while the number of loads hauled via truck in the third quarter is typically slightly below the second quarter.

LANDSTAR SYSTEM/ 4
 
Through the first few weeks of July, we have experienced the normal seasonal uptick in revenue per load on loads hauled via truck. Also, the number of loads hauled via truck during the first few weeks of July is trending with the historical second quarter to third quarter pattern. As such, I expect 2016 third quarter revenue to be similar to the Company’s 2016 second quarter revenue. Assuming insurance and claims costs in the 2016 third quarter are approximately 3.2 percent of BCO revenue, representing average insurance and claims costs as a percent of BCO revenue over the past 5 years, I would expect diluted earnings per share to be in a range of $0.79 to $0.84 in the 2016 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 2016 Earnings Release Conference Call.”
This earnings announcement, as well as an accompanying slide presentation, is available through the Company’s website at http://investor.landstar.com under “Presentations” and on a Form 8-K filed with the Securities and Exchange Commission.
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 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; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber incidents; dependence on key vendors; changes in fuel taxes;

LANDSTAR SYSTEM/ 5
 
status of independent contractors; regulatory and legislative changes; 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 2015 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 logistics services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. All Landstar transportation services companies are certified to ISO 9001:2008 quality management system standards and RC14001:2013 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/ 6
 
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 25,
2016	 	  	June 27,
2015	 	  	June 25,
2016	 	  	June 27,
2015	 	
Revenue	  	$	1,486,867	  	  	$	1,630,763	  	  	$	775,223	  	  	$	868,383	  	
Investment income	  	 	743	  	  	 	693	  	  	 	363	  	  	 	339	  	
 	 	 	 	 	
Costs and expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Purchased transportation	  	 	1,129,743	  	  	 	1,254,730	  	  	 	589,415	  	  	 	667,577	  	
Commissions to agents	  	 	123,931	  	  	 	129,816	  	  	 	64,839	  	  	 	70,032	  	
Other operating costs, net of gains on asset sales/dispositions	  	 	13,992	  	  	 	15,670	  	  	 	6,585	  	  	 	7,981	  	
Insurance and claims	  	 	30,307	  	  	 	27,108	  	  	 	16,094	  	  	 	12,312	  	
Selling, general and administrative	  	 	71,519	  	  	 	74,986	  	  	 	36,905	  	  	 	37,738	  	
Depreciation and amortization	  	 	17,093	  	  	 	14,068	  	  	 	8,655	  	  	 	7,049	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total costs and expenses	  	 	1,386,585	  	  	 	1,516,378	  	  	 	722,493	  	  	 	802,689	  	
Operating income	  	 	101,025	  	  	 	115,078	  	  	 	53,093	  	  	 	66,033	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Interest and debt expense	  	 	1,777	  	  	 	1,494	  	  	 	888	  	  	 	713	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income before income taxes	  	 	99,248	  	  	 	113,584	  	  	 	52,205	  	  	 	65,320	  	
Income taxes	  	 	37,750	  	  	 	43,098	  	  	 	19,891	  	  	 	24,849	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	61,498	  	  	$	70,486	  	  	$	32,314	  	  	$	40,471	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Earnings per common share	  	$	1.45	  	  	$	1.59	  	  	$	0.77	  	  	$	0.92	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	$	1.45	  	  	$	1.59	  	  	$	0.76	  	  	$	0.92	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Average number of shares outstanding:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Earnings per common share	  	 	42,315,000	  	  	 	44,240,000	  	  	 	42,235,000	  	  	 	43,892,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	 	42,424,000	  	  	 	44,397,000	  	  	 	42,357,000	  	  	 	44,033,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Dividends per common share	  	$	0.16	  	  	$	0.14	  	  	$	0.08	  	  	$	0.07	  	

LANDSTAR SYSTEM/ 7
 
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

 	  	June 25,
2016	 	 	December 26,
2015	 	
ASSETS	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	153,370	  	 	$	114,520	  	
Short-term investments	  	 	61,528	  	 	 	48,823	  	
Trade accounts receivable, less allowance of $5,092 and $4,327	  	 	402,362	  	 	 	462,699	  	
Other receivables, including advances to independent contractors, less allowance of $4,755 and $4,143	  	 	18,584	  	 	 	18,472	  	
Other current assets	  	 	20,608	  	 	 	11,604	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	656,452	  	 	 	656,118	  	
 	  	 	 	 	 	 	 	 	
Operating property, less accumulated depreciation and amortization of $187,774 and $182,591	  	 	236,177	  	 	 	225,927	  	
Goodwill	  	 	31,134	  	 	 	31,134	  	
Other assets	  	 	60,994	  	 	 	78,339	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	984,757	  	 	$	991,518	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Cash overdraft	  	$	30,355	  	 	$	35,609	  	
Accounts payable	  	 	191,247	  	 	 	223,709	  	
Current maturities of long-term debt	  	 	42,209	  	 	 	42,499	  	
Insurance claims	  	 	26,135	  	 	 	19,757	  	
Other current liabilities	  	 	44,642	  	 	 	47,963	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	334,588	  	 	 	369,537	  	
 	  	 	 	 	 	 	 	 	
Long-term debt, excluding current maturities	  	 	76,724	  	 	 	81,793	  	
Insurance claims	  	 	23,042	  	 	 	21,477	  	
Deferred income taxes and other non-current liabilities	  	 	53,148	  	 	 	52,474	  	
 	 	 	
Shareholders’ equity:	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 67,504,785 and 67,391,616 shares	  	 	675	  	 	 	674	  	
Additional paid-in capital	  	 	197,503	  	 	 	195,841	  	
Retained earnings	  	 	1,444,691	  	 	 	1,389,975	  	
Cost of 25,397,002 and 24,972,079 shares of common stock in treasury	  	 	(1,143,360	) 	 	 	(1,116,765	) 	
Accumulated other comprehensive loss	  	 	(2,254	) 	 	 	(3,488	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	497,255	  	 	 	466,237	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	984,757	  	 	$	991,518	  	

LANDSTAR SYSTEM/ 8
 
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)

 	  	Twenty Six Weeks Ended	 	 	Thirteen Weeks Ended	 	
 	  	June 25,
2016	 	 	June 27,
2015	 	 	June 25,
2016	 	 	June 27,
2015	 	
Revenue generated through (in thousands):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	886,195	  	 	$	946,598	  	 	$	458,002	  	 	$	496,910	  	
Unsided/platform equipment	  	 	451,430	  	 	 	530,515	  	 	 	242,008	  	 	 	291,032	  	
Less-than-truckload	  	 	35,927	  	 	 	40,956	  	 	 	18,450	  	 	 	21,258	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	1,373,552	  	 	 	1,518,069	  	 	 	718,460	  	 	 	809,200	  	
Rail intermodal	  	 	52,337	  	 	 	49,522	  	 	 	26,229	  	 	 	26,341	  	
Ocean and air cargo carriers	  	 	37,710	  	 	 	41,410	  	 	 	18,902	  	 	 	21,778	  	
Other (1)	  	 	23,268	  	 	 	21,762	  	 	 	11,632	  	 	 	11,064	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	1,486,867	  	 	$	1,630,763	  	 	$	775,223	  	 	$	868,383	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue on loads hauled via BCO Independent Contractors (2)  included in total truck transportation	  	$	707,652	  	 	$	752,030	  	 	$	373,374	  	 	$	401,705	  	
 	 	 	 	 	
Number of loads:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	 	556,119	  	 	 	544,714	  	 	 	287,079	  	 	 	285,762	  	
Unsided/platform equipment	  	 	219,034	  	 	 	229,452	  	 	 	116,292	  	 	 	127,286	  	
Less-than-truckload	  	 	55,727	  	 	 	54,904	  	 	 	28,829	  	 	 	28,912	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	830,880	  	 	 	829,070	  	 	 	432,200	  	 	 	441,960	  	
Rail intermodal	  	 	24,180	  	 	 	20,680	  	 	 	12,150	  	 	 	11,200	  	
Ocean and air cargo carriers	  	 	9,780	  	 	 	8,620	  	 	 	5,220	  	 	 	4,490	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	864,840	  	 	 	858,370	  	 	 	449,570	  	 	 	457,650	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loads hauled via BCO Independent Contractors (2) included in total truck transportation	  	 	414,660	  	 	 	406,230	  	 	 	216,990	  	 	 	214,930	  	
 	 	 	 	 	
Revenue per load:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	1,594	  	 	$	1,738	  	 	$	1,595	  	 	$	1,739	  	
Unsided/platform equipment	  	 	2,061	  	 	 	2,312	  	 	 	2,081	  	 	 	2,286	  	
Less-than-truckload	  	 	645	  	 	 	746	  	 	 	640	  	 	 	735	  	
Total truck transportation	  	 	1,653	  	 	 	1,831	  	 	 	1,662	  	 	 	1,831	  	
Rail intermodal	  	 	2,164	  	 	 	2,395	  	 	 	2,159	  	 	 	2,352	  	
Ocean and air cargo carriers	  	 	3,856	  	 	 	4,804	  	 	 	3,621	  	 	 	4,850	  	
Revenue per load on loads hauled via BCO Independent Contractors  (2)	  	$	1,707	  	 	$	1,851	  	 	$	1,721	  	 	$	1,869	  	
 	 	 	 	 	
Revenue by capacity type (as a % of total revenue);	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck capacity providers:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BCO Independent Contractors (2)	  	 	48	% 	 	 	46	% 	 	 	48	% 	 	 	46	% 	
Truck Brokerage Carriers	  	 	45	% 	 	 	47	% 	 	 	45	% 	 	 	47	% 	
Rail intermodal	  	 	4	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	
Ocean and air cargo carriers	  	 	3	% 	 	 	3	% 	 	 	2	% 	 	 	3	% 	
Other	  	 	2	% 	 	 	1	% 	 	 	2	% 	 	 	1	% 	
 	 	 	 	 	
 	  	 	 	 	 	 	 	June 25,
2016	 	 	June 27,
2015	 	
Truck Capacity Providers	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BCO Independent Contractors (2)	  	 	 	 	 	 	 	 	 	 	8,856	  	 	 	8,726	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck Brokerage Carriers:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Approved and active (3)	  	 	 	 	 	 	 	 	 	 	30,137	  	 	 	28,387	  	
Other approved	  	 	 	 	 	 	 	 	 	 	15,594	  	 	 	13,126	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	45,731	  	 	 	41,513	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total available truck capacity providers	  	 	 	 	 	 	 	 	 	 	54,587	  	 	 	50,239	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trucks provided by BCO Independent Contractors (2)	  	 	 	 	 	 	 	 	 	 	9,462	  	 	 	9,308	  	
 
(1)	Includes primarily premium revenue generated by the insurance segment.	
(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 have moved at least one load in the 180 days immediately preceeding the fiscal quarter end.	

July 20, 2016 Landstar System, Inc. Earnings Conference Call Second Quarter 2016 Date Published: 07/20/2016 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 2015 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: 07/20/2016

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: 07/20/2016

The Network Date Published: 07/20/2016 2015 Results $3.3 billion in revenue 1.8 million loadings 512 million dollar agents 9,500 BCO trucks (2015 year-end) 44,000 Carriers (2015 year-end) 14,000 Trailers (2015 year-end)

Transportation Management Services Percentage of Revenue 2Q15 2Q16 Truck Transportation Truckload Van equipment 57% 59% Unsided/platform equipment 34% 31% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% Date Published: 07/20/2016

Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Date Published: 07/20/2016 Revenue ($’s in thousands) Quarter to Date Year to Date Qtr over Prior Year Qtr Rate (1) Volume (2) Change Truck Revenue -9.2% -2.2% -0.112 Rail Intermodal Revenue -8.2% 8.5% -0.4% Ocean/Air Revenue -0.253 0.16300000000000001 -0.13200000000000001 Insurance Premiums NA NA 5.5% Total Revenue -0.107 Year over Prior Year Rate (1) Volume (2) Change Truck Revenue -9.7% 2.2% -9.5% Rail Intermodal Revenue -9.6% 0.16900000000000001 5.7% Ocean/Air Revenue -0.19700000000000001 0.13500000000000001 -8.9% Insurance Premiums NA NA 7.2% Total Revenue -8.8%

Van Equipment Unsided/Platform Equipment Date Published: 07/20/2016 Truckload Loadings and Revenue per Load (Excludes LTL)

Industries Served As a Percentage of Revenue Q2 Q2 2015 2016 Quarter over Prior Year Quarter Growth Consumer Durables 18.6 20.4 -2% Machinery 14.8 14.6 -12% Automotive 11.8 9.1 -31% Building Products 8.6 9.6 0% Metals 6.8 7.0 -8% AA&E, Hazmat 7.5 8.0 -5% Foodstuffs 5.2 5.1 -13% Energy 4.0 3.0 -34% Other 22.7 23.2 -9% Total 100.0 100.0 -11% Date Published: 07/20/2016

15.1% 15.6% 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 55% and 56% of revenue in the 2015 and 2016 year-to-date periods, respectively, and 55% of revenue in both the 2015 and 2016 second quarters. Date Published: 07/20/2016 Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter to Date Year to Date 15.1% 15.6% 15.1% 15.7% 2nd Qtr (3) Changes in gross profit margin % 2015 Period 15.1 Revenue - fixed gp margin 0.2 Revenue - variable gp margin 0.2 Change in mix and other 0.1 2016 Period 15.6 2nd Qtr YTD (3) Changes in gross profit margin % 2015 Period 15.1 Revenue - fixed gp margin 0.2 Revenue - variable gp margin 0.3 Change in mix and other 0.1 2016 Period 15.7

50.5% 43.9% Operating margin equals operating income divided by gross profit. Date Published: 07/20/2016 Operating Income and Operating Margin (1) ($’s in thousands) Quarter to Date Year to Date 50.5% 43.9% 46.7% 43.3% 2nd Qtr Changes in operating margin % 2015 Period 50.5 Other operating costs 0.7 Insurance and claims -3.9 SG&A -1.6 Depreciation and amortization -1.8 2016 Period 43.9 2nd Qtr YTD Changes in operating margin % 2015 Period 46.7 Other operating costs 0.4 Insurance and claims -2 SG&A -0.2 Depreciation and amortization -1.6 2016 Period 43.3

Date Published: 07/20/2016 Truck Capacity Data (All information other than fuel surcharges is provided as of the end of the period) QTR YTD QTR Jun 27, Dec 26, Jun 25, 2015 2015 2016 BCO Independent Contractors 8,726 8,907 8,856 Truck Brokerage Carriers: Approved and Active (1) 28,387 29,728 30,137 Other Approved 13,126 14,715 15,594 41,513 44,443 45,731 Total Available Truck Capacity Providers 50,239 53,350 54,587 Trucks Provided by BCO Independent Contractors 9,308 9,500 9,462 Fuel Surcharges - BCO Loadings only ($ in thousands) (2) 47,876 $ 174,661 $ 30,771 $ are paid 100% to the BCO and excluded from revenue and the cost of purchased transportation. (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 during the applicable period on freight hauled by BCO Independent Contractors

(1) Net cash is defined as cash and cash equivalents plus short term investments less outstanding debt. Date Published: 07/20/2016 Key Balance Sheet and Cash Flow Statistics ($’s in thousands) YTD YTD Jun 27, Jun 25, 2015 2016 Balance sheet (period end amounts) : Debt to Capital 17% 19% Net Cash (1) 38,081 $ 95,965 $ Cash flow: Cash flow from operations 82,017 $ 105,135 $ Capital expenditures 3,050 $ 8,955 $ Share repurchases 84,635 $ 26,485 $ Dividends paid 50,980 $ 6,782 $ Returns: TTM Return on Equity 30% 29% TTM Return on Invested Capital 25% 23% TTM Return on Assets 15% 14%

Free Cash Flow / Share Purchases (In Thousands) Free cash flow is defined as cash flow from operations less capital expenditures, each set forth on the prior slide. YTD through June Date Published: 07/20/2016 40,000 42,000 44,000 46,000 48,000 50,000 $- $50,000 $100,000 $150,000 $200,000 $250,000 2012 2013 2014 2015 2016(2) Free Cash Flow Share Purchases Common Share Count Second quarter 2016 YTD (000's) Free cash flow (1) $96,180 Share purchases $26,485 Ending common share count 42,108

Date Published: 07/20/2016