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, 2006

LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)
 	 	 	 	 	
Delaware
(State or other jurisdiction
of incorporation)	 	021238
(Commission
File Number)	 	06-1313069
(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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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, 2006, Landstar System, Inc. issued a press release announcing results for the second quarter of fiscal 2006. A copy of the press release is attached hereto as Exhibit 99.1.
In the press release attached hereto as Exhibit 99.1, Landstar provided the following information that may be deemed non-GAAP financial measures: (1) with respect to the fiscal periods ended July 1, 2006 and June 25, 2005, revenue per load for the global logistics segment, excluding revenue and loads related to transportation services provided primarily under the FAA Contract.
Also, in this press release Landstar provided the following information that may be deemed non-GAAP financial measures with respect to anticipated results for the fiscal quarter ended September 30, 2006, as compared to the fiscal quarter ended September 24, 2005: revenue growth excluding revenue attributable to transportation services provided under the FAA Contract.
Each of the foregoing financial measures should be considered in addition to, and not as a substitute for, the corresponding GAAP financial information also presented in the press release.
Management believes that it is appropriate to present this financial information for the following reasons: (1) the amount of transportation services to be provided by Landstar, under the contract with the FAA, relating to any possible future storms that may impact the United States during the third quarter of 2006 cannot be determined at this time; (2) disclosure of these matters will allow investors to better understand the underlying trends in Landstar’s financial condition and results of operations; (3) this information will facilitate comparisons by investors of Landstar’s results as compared to the results of peer companies; (4) a significant portion of the transportation services provided under the FAA contract were provided on the basis of a daily rate for the use of transportation equipment in question, and therefore load and per load information is not necessarily available or appropriate for a significant portion of the related revenue; and (5) management considers this financial information in its decision making.
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 9.01 Financial Statements and Exhibits
Exhibits
     99.1 News Release dated July 20, 2006 of Landstar System, Inc.
2

 
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, 2006 	By:  	/s/ Robert C. LaRose  	 	
 	 	Name:  	Robert C. LaRose 	 	
 	 	Title:  	Executive Vice President and Chief Financial Officer 	 	
 	
RCL/ac
3

 
Exhibit 99.1

For Immediate Release	 	Contact: Bob LaRose
	
 	 	Landstar System, Inc.
	
 	 	www.landstar.com
	
July 20, 2006	 	904-398-9400	
LANDSTAR SYSTEM REPORTS A 35 PERCENT INCREASE IN DILUTED
EARNINGS PER SHARE, A 19 PERCENT INCREASE IN REVENUE AND
RAISES ITS QUARTERLY DIVIDEND 20 PERCENT
Jacksonville, FL — Landstar System, Inc. (NASDAQ: LSTR), reported record net income for the 2006 second quarter of $29.5 million, or $.50 per diluted share, compared to net income of $22.4 million, or $.37 per diluted share, for the 2005 second quarter. Revenue for the 2006 second quarter was a record $643 million and increased 19% from $539 million in the 2005 second quarter. Operating margin was 7.7 percent in the 2006 second quarter compared to 7.0 percent in the 2005 second quarter.
Landstar’s carrier group of companies generated $468 million of revenue in the 2006 second quarter, compared with revenue of $412 million in the 2005 second quarter. In the 2006 and 2005 second quarters, the carrier group invoiced customers $46.7 million and $28.7 million, respectively, of fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Revenue at Landstar Global Logistics was $167 million in the 2006 second quarter compared with $119 million in the 2005 second quarter. The 2006 second quarter for Landstar Global Logistics included approximately $21 million of revenue from transportation services provided under a contract between Landstar Express America and the United States Department of Transportation/Federal Aviation Administration (the “FAA”).
Net income for the twenty-six-week period ended July 1, 2006, was $53.8 million, or $.90 per diluted share, compared to $39.2 million, or $.64 per diluted share, for the

 
LANDSTAR SYSTEM/2
twenty-six-week period ended June 25, 2005. Revenue was $1.253 billion in the 2006 first half, compared to revenue of $1.041 billion in the 2005 first half. Operating margin for the 2006 twenty-six-week period was 7.3 percent, compared with 6.3 percent in the 2005 twenty-six-week period.
Landstar’s carrier group of companies generated $896 million of revenue in the twenty-six-week period ended July 1, 2006, compared with $784 million in the twenty-six-week period ended June 25, 2005. In the 2006 and 2005 twenty-six-week periods, the carrier group invoiced customers $80.5 million and $49.3 million, respectively, of fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Revenue at Landstar Global Logistics was $340 million in the 2006 twenty-six-week period compared with $243 million in the 2005 period. The 2006 and 2005 twenty-six-week periods for Landstar Global Logistics included approximately $56 million and $8 million of revenue, respectively, provided under the contract with the FAA.
Landstar System, Inc. also announced that its Board of Directors has declared a quarterly dividend of $0.03 per share. This represents a 20 percent increase in the Company’s quarterly dividend. The dividend is payable on August 31, 2006, to stockholders of record at the close of business on August 10, 2006. It is the intention of the Board of Directors to continue to pay a quarterly dividend on a go forward basis.
“I am pleased with Landstar’s 2006 second quarter performance,” said Landstar President and CEO Henry Gerkens. “Consolidated revenue increased 19 percent over the 2005 second quarter, making it the eleventh consecutive quarter of double digit revenue growth. This continued strong revenue growth was accompanied by an even faster growth in earnings as diluted earnings per share for the 2006 second quarter increased 35 percent over the 2005 second quarter. Quarter over quarter, revenue generated through BCOs increased 8 percent, truck brokerage revenue increased 33 percent and rail intermodal revenue increased 56 percent. In addition, operating margin improved by 67 basis points over the 2005 second quarter. I am also pleased to announce that Landstar continues to move forward with the rollout of its new warehousing initiative and has begun providing these services to its first customer. We

 
LANDSTAR SYSTEM/3
are very excited about the launch of this new service offering as we apply the Landstar business model to other parts of the supply chain.”
“Trailing twelve-month return on average equity remained high at 55 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was 37 percent. During the second quarter, Landstar purchased 993,648 shares of its common stock at a total cost of $43,563,000, bringing the total number of shares purchased during the first half of 2006 to 1,242,948 at a total cost of $54,694,000. The Company has the ability to purchase an additional 1,282,279 shares of its common stock under its authorized share repurchase program,” Gerkens said.
“Based upon anticipated business levels, I estimate consolidated revenue for the 2006 third quarter to be in a range of $645 to $665 million, including an estimate of $10 million for transportation services that have been requested by the FAA to date. In addition, making no further assumption as to revenue generated under the FAA contract and including an anticipated charge of approximately $.02 per diluted share attributable to the adoption of Statement of Financial Accounting Standards No. 123R, Share-Based Payment, I estimate earnings for the third quarter of 2006 to be within a range of $.45 to $.50 per diluted share.” Continuing, Gerkens stated, “Revenue for the 2005 third quarter included approximately $130 million of transportation services revenue provided under the FAA contract. Excluding any revenue generated under the FAA contract from both the 2006 and 2005 third quarters, I anticipate revenue growth in a range of approximately 16 to 20 percent quarter over quarter.”
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 pm ET. To access the webcast, visit the company’s website at www.landstar.com. Click on Investors and then the webcast icon.
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,”

 
LANDSTAR SYSTEM/4
“plans,” “predicts,” “may,” “should,” “will,” the negative thereof and similar expressions, including any such expressions with respect to the level of comfort with analyst estimates, 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 workers’ compensation claims; unfavorable development of existing accident claims; dependence on independent sales agents; dependence on third party capacity providers; disruptions or failures in our computer systems; a downturn in domestic economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2005 fiscal year, described in Item 1A 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.
About Landstar:
Landstar System, Inc. delivers safe, specialized transportation services to a broad range of customers worldwide. The Company identifies and fulfills shippers’ needs through the coordination of individual businesses comprised of independent sales agents and third-party transportation capacity providers. Landstar’s carrier group, which is comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc., Landstar Ranger, Inc. and Landstar Carrier Services, Inc., delivers excellence in complete over-the-road transportation services. Landstar’s global logistics group, which is comprised of Landstar Global Logistics, Inc. and its subsidiaries Landstar Express America, Inc. and Landstar Logistics, Inc., provides international and domestic multimodal (over-the-road, air, ocean and rail) transportation, expedited, contract logistics and warehousing services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market ®  under the symbol LSTR.
(tables follow)

 
LANDSTAR SYSTEM/5
Landstar System, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Twenty Six Weeks Ended	 	 	Thirteen Weeks Ended	 	
 	 	July 1,	 	 	June 25,	 	 	July 1,	 	 	June 25,	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
Revenue	 	$	1,253,280	 	 	$	1,041,316	 	 	$	643,238	 	 	$	539,104	 	
Investment income	 	 	1,252	 	 	 	1,235	 	 	 	873	 	 	 	696	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Purchased transportation	 	 	944,309	 	 	 	783,092	 	 	 	486,059	 	 	 	405,514	 	
Commissions to agents	 	 	97,521	 	 	 	82,039	 	 	 	50,510	 	 	 	42,913	 	
Other operating costs	 	 	22,288	 	 	 	16,615	 	 	 	10,220	 	 	 	7,917	 	
Insurance and claims	 	 	20,574	 	 	 	22,904	 	 	 	9,022	 	 	 	9,779	 	
Selling, general and administrative(1)	 	 	70,924	 	 	 	63,851	 	 	 	35,088	 	 	 	32,036	 	
Depreciation and amortization	 	 	8,050	 	 	 	7,928	 	 	 	3,957	 	 	 	3,966	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total costs and expenses(1)	 	 	1,163,666	 	 	 	976,429	 	 	 	594,856	 	 	 	502,125	 	

Operating income(1)	 	 	90,866	 	 	 	66,122	 	 	 	49,255	 	 	 	37,675	 	
Interest and debt expense	 	 	3,142	 	 	 	1,989	 	 	 	1,292	 	 	 	1,052	 	

Income before income taxes(1)	 	 	87,724	 	 	 	64,133	 	 	 	47,963	 	 	 	36,623	 	
Income taxes(1)	 	 	33,909	 	 	 	24,891	 	 	 	18,498	 	 	 	14,199	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income(1)	 	$	53,815	 	 	$	39,242	 	 	$	29,465	 	 	$	22,424	 	

Earnings per common share(1)	 	$	0.92	 	 	$	0.66	 	 	$	0.50	 	 	$	0.38	 	

Diluted earnings per share(1)	 	$	0.90	 	 	$	0.64	 	 	$	0.50	 	 	$	0.37	 	

Average number of shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per common share	 	 	58,700,000	 	 	 	59,878,000	 	 	 	58,499,000	 	 	 	59,402,000	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share(1)	 	 	59,665,000	 	 	 	61,137,000	 	 	 	59,287,000	 	 	 	60,421,000	 	

Dividends paid per common share	 	$	0.050	 	 	 	 	 	 	$	0.025	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) On January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standard No. 123R, Share-Based Payment (“FAS 123R”), under the modified retrospective method. The adoption of FAS 123R resulted in the recognition of a $3,297,000 pretax charge for the twenty six week period ended July 1, 2006, which net of related income tax benefits, reduced net income by $2,234,000, or $.04 per common share ($.04 per diluted share). In the thirteen week period ended July 1, 2006, the implementation of FAS 123R resulted in the recognition of a $1,886,000 pretax charge, which net of related income tax benefits, reduced net income by $1,290,000, or $.02 per common share ($.02 per diluted share).
In the twenty six week period ended June 25, 2005, the implementation of FAS 123R resulted in the recognition of a $3,028,000 pretax charge, which net of related income tax benefits, reduced net income by $2,129,000, or $.04 per common share ($.03 per diluted share). In the thirteen week period ended June 25, 2005, the implementation of FAS 123R resulted in the recognition of a $1,516,000 pretax charge, which net of related income tax benefits, reduced net income by $1,069,000, or $.02 per common share ($.02 per diluted share).

 
LANDSTAR SYSTEM/6
Landstar System, Inc.
Selected Segment Information
(Dollars in thousands)
(Unaudited)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Twenty Six Weeks Ended	 	 	Thirteen Weeks Ended	 	
 	 	July 1,	 	 	June 25,	 	 	July 1,	 	 	June 25,	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
External Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Carrier segment	 	$	895,933	 	 	$	783,521	 	 	$	467,620	 	 	$	412,478	 	
Global Logistics segment	 	 	340,467	 	 	 	242,588	 	 	 	167,042	 	 	 	118,892	 	
Insurance segment	 	 	16,880	 	 	 	15,207	 	 	 	8,576	 	 	 	7,734	 	

External revenue	 	$	1,253,280	 	 	$	1,041,316	 	 	$	643,238	 	 	$	539,104	 	

Operating Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Carrier segment (1)	 	$	88,064	 	 	$	70,279	 	 	$	47,493	 	 	$	39,248	 	
Global Logistics segment (1)	 	 	17,022	 	 	 	9,142	 	 	 	8,295	 	 	 	3,976	 	
Insurance segment	 	 	15,089	 	 	 	11,628	 	 	 	8,413	 	 	 	7,536	 	
Other (1)	 	 	(29,309	)	 	 	(24,927	)	 	 	(14,946	)	 	 	(13,085	)	

Operating income (1)	 	$	90,866	 	 	$	66,122	 	 	$	49,255	 	 	$	37,675	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Amounts for the periods ended June 25, 2005, have been adjusted to reflect the provisions of Statement of Financial Accounting Standard No. 123R, Share-based Payment, under the modified retrospective method implemented by the Company January 1, 2006.

 
LANDSTAR SYSTEM/7
Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
 	 	 	 	 	 	 	 	 	
 	 	July 1,	 	 	Dec. 31,	 	
 	 	2006	 	 	2005	 	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	80,815	 	 	$	29,398	 	
Short-term investments	 	 	21,699	 	 	 	20,693	 	
Trade accounts receivable, less allowance of $5,484 and $4,655	 	 	369,300	 	 	 	534,274	 	
Other receivables, including advances to independent contractors, less allowance of $4,718 and $4,342	 	 	16,086	 	 	 	11,384	 	
Deferred income taxes and other current assets(1)	 	 	29,695	 	 	 	21,106	 	
 	 	 	 	 	 	 	
Total current assets(1)	 	 	517,595	 	 	 	616,855	 	

Operating property, less accumulated depreciation and amortization of $72,881 and $68,561	 	 	88,614	 	 	 	89,131	 	
Goodwill	 	 	31,134	 	 	 	31,134	 	
Other assets	 	 	32,391	 	 	 	28,694	 	
 	 	 	 	 	 	 	
Total assets(1)	 	$	669,734	 	 	$	765,814	 	

LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Cash overdraft	 	$	24,812	 	 	$	29,829	 	
Accounts payable	 	 	134,284	 	 	 	164,509	 	
Current maturities of long-term debt	 	 	13,704	 	 	 	12,122	 	
Insurance claims	 	 	27,459	 	 	 	27,887	 	
Other current liabilities	 	 	55,268	 	 	 	65,149	 	
 	 	 	 	 	 	 	
Total current liabilities	 	 	255,527	 	 	 	299,496	 	

Long-term debt, excluding current maturities	 	 	94,625	 	 	 	154,851	 	
Insurance claims	 	 	36,417	 	 	 	37,840	 	
Deferred income taxes	 	 	17,702	 	 	 	17,938	 	
 	 	 	 	 	 	 	 	 	
Shareholders’ equity:	 	 	 	 	 	 	 	 	
Common stock, $.01 par value, authorized 160,000,000 shares, issued 64,666,698 and 64,151,902 shares	 	 	647	 	 	 	642	 	
Additional paid-in capital(1)	 	 	97,365	 	 	 	84,532	 	
Retained earnings(1)	 	 	443,420	 	 	 	392,549	 	
Cost of 6,573,231 and 5,344,883 shares of common stock in treasury	 	 	(275,864	)	 	 	(221,776	)	
Accumulated other comprehensive loss	 	 	(58	)	 	 	(211	)	
Notes receivable arising from exercise of stock options	 	 	(47	)	 	 	(47	)	
 	 	 	 	 	 	 	
Total shareholders’ equity(1)	 	 	265,463	 	 	 	255,689	 	
 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity(1)	 	$	669,734	 	 	$	765,814	 	
 	 	 	 	 	 	 	
(1) Amounts as of December 31, 2005, have been adjusted to reflect the provisions of Statement of Financial Accounting Standard No. 123R, Share-based Payment, under the modified retrospective method implemented by the Company January 1, 2006.

 
LANDSTAR SYSTEM/8
Landstar System, Inc.
Supplemental Information
(Unaudited)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Twenty Six Weeks Ended	 	 	Thirteen Weeks Ended	 	
 	 	July 1,	 	 	June 25,	 	 	July 1,	 	 	June 25,	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
Carrier Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
External revenue generated through (in thousands):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (1)	 	$	640,596	 	 	$	599,222	 	 	$	336,803	 	 	$	316,547	 	
Other third party truck capacity providers	 	 	255,337	 	 	 	184,299	 	 	 	130,817	 	 	 	95,931	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	895,933	 	 	$	783,521	 	 	$	467,620	 	 	$	412,478	 	

Revenue per revenue mile	 	$	2.00	 	 	$	1.81	 	 	$	2.01	 	 	$	1.82	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue per load	 	$	1,594	 	 	$	1,454	 	 	$	1,607	 	 	$	1,463	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average length of haul (miles)	 	 	797	 	 	 	802	 	 	 	800	 	 	 	802	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Number of loads	 	 	562,000	 	 	 	539,000	 	 	 	291,000	 	 	 	282,000	 	

Global Logistics Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
External revenue generated through (in thousands):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (1) (2)	 	$	47,163	 	 	$	35,335	 	 	$	22,331	 	 	$	17,497	 	
Other third party truck capacity providers	 	 	198,301	 	 	 	154,665	 	 	 	97,674	 	 	 	75,584	 	
Rail, Air, Ocean and Bus Carriers (3)	 	 	95,003	 	 	 	52,588	 	 	 	47,037	 	 	 	25,811	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	340,467	 	 	$	242,588	 	 	$	167,042	 	 	$	118,892	 	

Revenue per load (4)	 	$	1,504	 	 	$	1,484	 	 	$	1,507	 	 	$	1,431	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Number of loads (4)	 	 	189,000	 	 	 	158,000	 	 	 	97,000	 	 	 	82,000	 	

 	 	 	 	 	 	 	 	 	 	
 	 	As of	 	 	As of	 	 	
 	 	July 1,	 	 	June 25,	 	 	
 	 	2006	 	 	2005	 	 	
Capacity	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (1) (5)	 	 	8,347	 	 	 	7,840	 	 	
 	 	 	 	 	 	 	 	
Other third party truck capacity providers:	 	 	 	 	 	 	 	 	 	
Approved and active (6)	 	 	14,034	 	 	 	12,458	 	 	
Approved	 	 	7,977	 	 	 	7,605	 	 	
 	 	 	 	 	 	 	 	
 	 	 	22,011	 	 	 	20,063	 	 	
 	 	 	 	 	 	 	 	
Total available truck capacity providers	 	 	30,358	 	 	 	27,903	 	 	

Agent Locations	 	 	1,249	 	 	 	1,106	 	 	
 	 	 	 	 	 	 	 	
(1) Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.
(2) Includes revenue generated through Carrier Segment Business Capacity Owners.
(3) Included in the 2006 twenty six and thirteen week periods was $19,438,000 and $8,582,000, respectively, of revenue attributable to buses provided under the FAA contract.
(4) Number of loads and revenue per load exclude the effect of revenue derived from transportation services provided under the FAA contract.
(5) Trucks provided by business capacity owners were 9,047 and 8,609, respectively.
(6) Active refers to other third party truck capacity providers who have moved at least one load in the past 180 days.