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Landstar System Reports All-Time Quarterly Record Diluted Earnings Per Share of $2.01 in the 2021 First Quarter

Nachrichtenquelle: globenewswire
21.04.2021, 22:15  |  101   |   |   

JACKSONVILLE, Fla., April 21, 2021 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) reported all-time quarterly record net income of $77.2 million, or $2.01 per diluted share, in the 2021 first quarter, on record first quarter revenue of $1.288 billion. In the 2020 first quarter, net income was $40.9 million, or $1.04 per diluted share, on $927.6 million of revenue. 2021 first quarter revenue, net income and diluted earnings per share increased 39 percent, 89 percent and 93 percent, respectively, over the 2020 first quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was an all-time quarterly record $189.2 million in the 2021 first quarter, 32 percent above 2020 first quarter gross profit of $142.9 million. Note that the adverse impact of the COVID-19 pandemic on the U.S. economy in early 2020 did not have a significant impact on Landstar’s first quarter 2020 results, but did have a significant impact on the Company’s 2020 second quarter results.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2021 first quarter was $1,193.5 million, or 93 percent of revenue, compared to $854.6 million, or 92 percent of revenue, in the 2020 first quarter. Truckload transportation revenue hauled via van equipment in the 2021 first quarter was $827.2 million compared to $545.3 million in the 2020 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2021 first quarter was $340.6 million compared to $286.3 million in the 2020 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $79.3 million, or 6 percent of revenue, in the 2021 first quarter compared to $54.7 million, or 6 percent of revenue, in the 2020 first quarter.

Trailing twelve month return on average shareholders’ equity was 33 percent and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 29 percent. The Company is currently authorized to purchase up to 1,821,030 shares of the Company’s common stock under its previously announced share purchase program. Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.21 per share payable on May 28, 2021, to stockholders of record as of the close of business on May 6, 2021. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.

“Landstar’s 2021 first quarter set a new standard as the best first quarter financial performance in our history. Revenue was the second highest quarterly revenue in Landstar’s history, second only to the 2020 fourth quarter. And, 2021 first quarter gross profit, net income and diluted earnings per share were each all-time quarterly records. First quarter 2021 operating margin, representing operating income divided by gross profit, was 54.6 percent, also an all-time quarterly record,” said Landstar President and CEO Jim Gattoni. “Typically, truckload volumes in the first quarter of any year are softer than in the second, third and fourth quarters due to seasonality. Given the exceptional performance by Landstar in the 2021 first quarter, I believe the stage has now been set for what should be a record-setting year.”

“Revenue from truck loads hauled via van equipment exceeded the 2020 first quarter by 52 percent, and revenue from truck loads hauled via unsided/platform equipment exceeded the 2020 first quarter by 19 percent. Consumer demand for durables, building products and e-commerce drove record quarterly van revenue, while growth in the U.S. metals and machinery sectors continued to drive improvement in unsided/platform equipment performance. For revenue generated via van equipment in the 2021 first quarter compared to the 2020 first quarter, the number of loads increased 17 percent and revenue per load increased 30 percent. Revenue from truck loads hauled via unsided/platform equipment continued to improve from the softer conditions that existed throughout most of 2020. The number of loads and revenue per load on loads hauled via unsided/platform equipment in the 2021 first quarter exceeded the 2020 first quarter by 5 percent and 14 percent, respectively.”  

Gattoni continued, “In our 2020 year-end earnings release on January 27, 2021, we provided first quarter revenue guidance of $1.10 billion to $1.15 billion and first quarter diluted earnings per share guidance of $1.55 to $1.65. Actual 2021 first quarter revenue was $1.288 billion and diluted earnings per share was $2.01, both significantly above the high end of our previously issued guidance. Our 2021 first quarter guidance reflected our expectation that revenue per load on loads hauled via truck would exceed the 2020 first quarter in a mid-teen percentage range and the number of loads hauled via truck in the 2021 first quarter would exceed the 2020 first quarter in a high single digit percentage range. Actual performance in the 2021 first quarter significantly exceeded our expectations, as summarized in the following chart:

  % growth over prior year
  Actual   Guidance   Actual  
  Q4 2020   Q1 2021   Q1 2021  
             
Truck revenue per load 17%   14% - 16%   24%  
Number of truck loads 13%   7% - 9%   13%  

As noted above, revenue per load and the number of loads hauled via truck in the 2021 first quarter exceeded the 2020 first quarter by 24 percent and 13 percent, respectively, as our assumption of decelerating year-over-year volume growth in February and March on softening consumer demand did not transpire. The winter storms that impacted much of the central portion of the country during the last week of Landstar’s fiscal February had a significant impact on freight volumes during that week. We believe these storms temporarily delayed many loads that otherwise would have been hauled in February to instead be hauled in March. After taking this short-term impact into consideration, load volume and revenue per load on loads hauled via truck remained strong through the entirety of the 2021 first quarter and were generally in-line with historical seasonal month-to-month trends, with the exception of truck revenue per load in fiscal March. Revenue per load on loads hauled via truck in March 2021 exceeded March 2020 by an impressive 31 percent, far above the 18 percent and 19 percent month-over-prior-year-month growth experienced in January and February 2021, respectively. Revenue per load on loads hauled via van and unsided/platform equipment both experienced unusually large percentage increases from February to March.”

Gattoni continued, “Second quarter year-over-prior-year revenue and diluted earnings per share comparisons are not meaningful due to the adverse impact the COVID-19 pandemic had on the Company’s 2020 second quarter financial results. On a sequential basis, I expect the strong finish to the 2021 first quarter to continue through the 2021 second quarter. As a result, I expect both revenue per load and the number of loads hauled via truck to be in a mid-single digit percentage range above the 2021 first quarter. As such, I anticipate revenue for the 2021 second quarter to be in a range of $1.40 billion to $1.45 billion.”

Gattoni concluded, “Based on the range of revenue estimated for the 2021 second quarter, I would anticipate diluted earnings per share to be in a range of $2.20 to $2.30. This range of diluted earnings per share includes insurance and claims expense estimated at 4.3 percent of BCO revenue.”

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 First Quarter 2021 Earnings Release Conference Call.”

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative 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: the impact of the coronavirus (COVID-19) pandemic; 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 and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; catastrophic loss of a Company facility; intellectual property; unclaimed property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2020 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

About Landstar:
Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market under the symbol LSTR.

           
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
           
           
      Thirteen Weeks Ended
      March 27,   March 28,
      2021   2020
           
Revenue $ 1,287,534     $ 927,566  
Investment income   684       1,167  
           
Costs and expenses:      
  Purchased transportation   998,285       709,257  
  Commissions to agents   100,009       75,376  
  Other operating costs, net of gains on asset sales/dispositions   7,642       8,306  
  Insurance and claims   21,505       24,957  
  Selling, general and administrative   45,408       45,327  
  Depreciation and amortization   12,101       11,505  
           
    Total costs and expenses   1,184,950       874,728  
           
Operating income   103,268       54,005  
Interest and debt expense   1,042       952  
           
Income before income taxes   102,226       53,053  
Income taxes   24,986       12,158  
           
Net income $ 77,240     $ 40,895  
           
Diluted earnings per share $ 2.01     $ 1.04  
           
Average diluted shares outstanding   38,404,000       39,254,000  
           
Dividends per common share $ 0.210     $ 0.185  
           


           
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
           
           
      March 27,   December 26,
      2021   2020
ASSETS      
Current assets:      
  Cash and cash equivalents $ 219,389     $ 249,354  
  Short-term investments   41,407       41,375  
  Trade accounts receivable, less allowance      
    of $7,095 and $8,670   824,872       764,169  
  Other receivables, including advances to independent      
    contractors, less allowance of $6,711 and $7,239   40,067       134,757  
  Other current assets   11,584       18,520  
    Total current assets   1,137,319       1,208,175  
           
Operating property, less accumulated depreciation      
  and amortization of $309,464 and $299,407   288,041       296,996  
Goodwill   40,732       40,949  
Other assets   108,373       107,679  
Total assets $ 1,574,465     $ 1,653,799  
           
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities:      
  Cash overdraft $ 74,754     $ 74,748  
  Accounts payable   414,440       380,505  
  Current maturities of long-term debt   32,800       35,415  
  Insurance claims   39,229       149,774  
  Dividends payable   -       76,770  
  Other current liabilities   101,442       88,925  
    Total current liabilities   662,665       806,137  
           
Long-term debt, excluding current maturities   58,196       65,359  
Insurance claims   39,850       38,867  
Deferred income taxes and other non-current liabilities   50,835       51,601  
           
Shareholders' equity:      
  Common stock, $0.01 par value, authorized 160,000,000      
    shares, issued 68,212,296 and 68,183,702   682       682  
  Additional paid-in capital   232,597       228,875  
  Retained earnings   2,115,411       2,046,238  
  Cost of 29,803,726 and 29,797,639 shares of common      
    stock in treasury   (1,582,818 )     (1,581,961 )
  Accumulated other comprehensive loss   (2,953 )     (1,999 )
    Total shareholders' equity   762,919       691,835  
Total liabilities and shareholders' equity $ 1,574,465     $ 1,653,799  
           


       
  Landstar System, Inc. and Subsidiary
  Supplemental Information
  (Unaudited)
             
        Thirteen Weeks Ended
        March 27,   March 28,
        2021   2020
Revenue generated through (in thousands):      
             
  Truck transportation      
    Truckload:      
      Van equipment $ 827,187     $ 545,307  
      Unsided/platform equipment   340,632       286,328  
    Less-than-truckload   25,670       22,941  
      Total truck transportation   1,193,489       854,576  
  Rail intermodal   31,708       28,129  
  Ocean and air cargo carriers   47,600       26,587  
  Other (1)
  14,737       18,274  
        $ 1,287,534     $ 927,566  
             
  Revenue on loads hauled via BCO Independent Contractors (2)      
    included in total truck transportation $ 560,114     $ 431,279  
             
Number of loads:      
             
  Truck transportation      
    Truckload:      
      Van equipment   368,873       315,345  
      Unsided/platform equipment   126,265       120,589  
    Less-than-truckload   40,692       38,356  
      Total truck transportation   535,830       474,290  
  Rail intermodal   11,700       11,540  
  Ocean and air cargo carriers   9,230       7,070  
          556,760       492,900  
             
  Loads hauled via BCO Independent Contractors (2)      
    included in total truck transportation   245,950       233,400  
             
Revenue per load:      
             
  Truck transportation      
    Truckload:      
      Van equipment $ 2,242     $ 1,729  
      Unsided/platform equipment   2,698       2,374  
    Less-than-truckload   631       598  
      Total truck transportation   2,227       1,802  
  Rail intermodal   2,710       2,438  
  Ocean and air cargo carriers   5,157       3,761  
             
  Revenue per load on loads hauled via BCO Independent Contractors (2) $ 2,277     $ 1,848  
             
Revenue by capacity type (as a % of total revenue);      
             
  Truck capacity providers:      
    BCO Independent Contractors (2)   44 %     46 %
    Truck Brokerage Carriers   49 %     46 %
  Rail intermodal   2 %     3 %
  Ocean and air cargo carriers   4 %     3 %
  Other
  1 %     2 %
             
        March 27,   March 28,
        2021
  2020
Truck Capacity Providers      
             
  BCO Independent Contractors (2)   10,498       9,444  
  Truck Brokerage Carriers:      
    Approved and active (3)   49,538       38,879  
    Other approved   23,246       16,657  
          72,784       55,536  
  Total available truck capacity providers   83,282       64,980  
             
  Trucks provided by BCO Independent Contractors (2)   11,268       10,112  
             
(1) Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro.
             
(2) BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.
             
(3) Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end.
             

 

CONTACT: Contact: Jim Gattoni
Landstar System, Inc.
www.landstar.com
904-398-9400

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Landstar System Reports All-Time Quarterly Record Diluted Earnings Per Share of $2.01 in the 2021 First Quarter JACKSONVILLE, Fla., April 21, 2021 (GLOBE NEWSWIRE) - Landstar System, Inc. (NASDAQ: LSTR) reported all-time quarterly record net income of $77.2 million, or $2.01 per diluted share, in the 2021 first quarter, on record first quarter revenue of …

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