JACKSONVILLE, Fla., April 17 /PRNewswire-FirstCall/ -- Landstar System,
Inc. (Nasdaq: LSTR) reported revenue in the 2008 first quarter increased
approximately 6 percent to $609 million compared to $577 million for the 2007
first quarter. Net income for the thirteen-week period ended March 29, 2008
was $23.7 million, or $0.45 per diluted share, compared to net income of $21.6
million, or $0.38 per diluted share, for the thirteen-week period ended March
31, 2007.
Revenue hauled by BCO Independent Contractors in the first quarter of 2008
was $324.8 million, or 54 percent of transportation logistics revenue,
compared to $320.5 million, or 57 percent of transportation logistics revenue,
in the 2007 first quarter. Moreover, in the first quarters of 2008 and 2007,
the Company invoiced customers $57.8 million and $34.7 million, respectively,
in fuel surcharges that were passed on 100 percent to BCO Independent
Contractors and excluded from revenue. Revenue hauled by third-party truck
brokerage carriers was $228.6 million, or 38 percent of transportation
logistics revenue, in the 2008 first quarter compared to $205.9 million, or 36
percent of transportation logistics revenue, in the 2007 first quarter.
Revenue hauled by rail, air, and ocean cargo carriers was $45.8 million or 8
percent of transportation logistics revenue, in the 2008 first quarter
compared to $37.6 million, or 7 percent of transportation logistics revenue,
in the 2007 first quarter.
As of the first quarter of 2008, the Company revised the format of its
financial statement segment reporting presentation to consolidate from three
segments (carrier, global logistics and insurance) to two segments
(transportation logistics and insurance). This change in segment reporting
reflects increased centralization and consolidation of the administrative and
sales functions across all of the Company's operating subsidiaries and the
increased similarity of the services provided by the operations of the
Company's various operating subsidiaries, primarily with respect to truck
brokerage services. As a result of this change in presentation, the revenue
and operating results formerly reported in the carrier and global logistics
segments, together with corporate overhead which was formerly included as
"other" in the segment information, have been consolidated into the
transportation logistics segment. This change in segment reporting has no
impact on reporting with respect to the Company's insurance segment.
Landstar System, Inc. announced that its Board of Directors has declared a
quarterly dividend of $0.0375 per share. The dividend is payable on May 30,
2008 to stockholders of record at the close of business on May 9, 2008. It is
the intention of the Board of Directors to continue to pay a quarterly
dividend.
"I am pleased with the Company's 2008 first quarter performance," said
Landstar President and Chief Executive Officer Henry Gerkens. "Despite a
continuing weak freight environment, Landstar continued to increase its
revenue. Consolidated revenue in the 2008 first quarter increased
approximately 6 percent over the 2007 first quarter, as revenue hauled by
truck brokerage carriers increased 11 percent, revenue hauled by rail carriers
increased 25 percent and revenue hauled by ocean cargo carriers increased 41
percent. Landstar also improved its operating margin to 6.7 percent in the
2008 first quarter compared to 6.4 percent in the 2007 first quarter.
Landstar's solid results are directly attributable to sound execution and its
unique non asset based business model."
"Additionally, Landstar continues to generate outstanding returns.
Trailing twelve month return on average shareholders' equity remained high at
53 percent and trailing twelve month return on invested capital, net income
divided by the sum of average equity plus average debt, was 33 percent.
During the 2008 first quarter, the Company reduced debt by $17 million and
increased cash and short-term investments by $21 million, ending the quarter
with $105 million in cash and short-term investments. As of March 29, 2008,
there were 734,400 shares of the Company's common stock available for purchase
by the Company under its most recently authorized share purchase program."
Gerkens continued, "I anticipate the second quarter of 2008 to be similar
to that of the 2008 first quarter. As such, I would anticipate revenue for
the second quarter of 2008 as compared to the second quarter of 2007 to
increase in the mid to upper single digits. Based upon the above revenue
forecast, I would anticipate Landstar's earnings for the 2008 second quarter
to be within a range of $0.51 to $0.57 per diluted share."
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 "Investor Relations" and "Webcasts,"
then click on "Landstar's First Quarter 2008 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, expectations and
intentions. Terms such as "anticipates," "believes," "estimates,"
"intention," "plans," "predicts," "may," "should," "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 workers' compensation claims; unfavorable development of existing
claims; dependence on independent sales agents; dependence on third party
capacity providers; disruptions or failures in our computer systems; a
downturn in domestic or international 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 2007 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 and
logistics 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 and logistics capacity providers. Through its operating
subsidiaries, Landstar delivers excellence in complete transportation
logistics services and solutions. Landstar System, Inc. is headquartered in
Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market(R)
under the symbol LSTR.
(Tables follow)
Landstar System, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Thirteen Weeks Ended
March 29, March 31,
2008 2007
Revenue $608,828 $576,649
Investment income 1,096 1,740
Costs and expenses:
Purchased transportation 465,029 434,058
Commissions to agents 46,814 46,632
Other operating costs 6,584 5,506
Insurance and claims 9,521 17,540
Selling, general and administrative 35,857 33,165
Depreciation and amortization 5,130 4,617
Total costs and expenses 568,935 541,518
Operating income 40,989 36,871
Interest and debt expense 2,142 1,592
Income before income taxes 38,847 35,279
Income taxes 15,104 13,675
Net income $23,743 $21,604
Earnings per common share $0.45 $0.39
Diluted earnings per share $0.45 $0.38
Average number of shares outstanding:
Earnings per common share 52,601,000 55,926,000
Diluted earnings per share 53,003,000 56,470,000
Dividends paid per common share $0.0375 $0.0300
Landstar System, Inc.
Selected Segment Information
(Dollars in thousands)
(Unaudited)
Thirteen Weeks Ended
March 29, March 31,
2008 2007
Revenue
Transportation logistics segment $599,600 $567,439
Insurance segment 9,228 9,210
Revenue $608,828 $576,649
Operating Income
Transportation logistics segment $32,386 $33,512
Insurance segment 8,603 3,359
Operating income $40,989 $36,871
Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
March 29, Dec 29,
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $80,980 $60,750
Short-term investments 24,046 22,921
Trade accounts receivable, less allowance
of $4,264 and $4,469 303,588 310,258
Other receivables, including
advances to independent
contractors, less allowance of
$4,987 and $4,792 19,896 11,170
Deferred income taxes and other
current assets 17,252 28,554
Total current assets 445,762 433,653
Operating property, less accumulated
depreciation and amortization of $93,254
and $88,284 128,291 132,369
Goodwill 31,134 31,134
Other assets 33,010 31,845
Total assets $638,197 $629,001
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft $27,211 $25,769
Accounts payable 110,980 117,122
Current maturities of long-term debt 23,525 23,155
Insurance claims 27,705 28,163
Accrued income taxes 15,278 14,865
Other current liabilities 41,239 40,501
Total current liabilities 245,938 249,575
Long-term debt, excluding current
maturities 124,172 141,598
Insurance claims 36,458 37,631
Deferred income taxes 21,063 19,411
Shareholders' equity:
Common stock, $0.01 par value,
authorized 160,000,000 shares,
issued 65,856,787 and
65,630,383 shares 659 656
Additional paid-in capital 140,590 132,788
Retained earnings 623,308 601,537
Cost of 13,121,109 shares of
common stock in treasury (554,252) (554,252)
Accumulated other comprehensive income 261 57
Total shareholders' equity 210,566 180,786
Total liabilities and shareholders' equity $638,197 $629,001
Landstar System, Inc.
Supplemental Information
(Unaudited)
Thirteen Weeks Ended
March 29, March 31,
2008 2007
Revenue generated through (in thousands):
Business Capacity Owners (1) $324,804 $320,533
Truck Brokerage Carriers 228,633 205,897
Rail intermodal 33,789 26,971
Ocean carriers 8,434 5,970
Air carriers 3,589 4,615
Other (2) 9,579 12,663
$608,828 $576,649
Number of loads:
Business Capacity Owners (1) 203,200 205,600
Truck Brokerage Carriers 142,030 137,820
Rail intermodal 14,980 12,100
Ocean carriers 1,250 1,040
Air carriers 1,990 3,280
363,450 359,840
Revenue per load:
Business Capacity Owners (1) $1,598 $1,559
Truck Brokerage Carriers 1,610 1,494
Rail intermodal 2,256 2,229
Ocean carriers 6,747 5,740
Air carriers 1,804 1,407
March 29, March 31,
2008 2007
Truck Capacity
Business Capacity Owners (1)(3) 8,277 8,510
Truck Brokerage Carriers:
Approved and active (4) 15,820 14,784
Approved 9,515 8,758
25,335 23,542
Total available truck capacity providers 33,612 32,052
Agent Locations 1,375 1,338
(1) Business Capacity Owners are independent contractors who provide
truck capacity to the Company under exclusive lease arrangements.
(2) Includes premium revenue generated by the insurance segment,
warehousing revenue generated by the Transportation Logistics segment
and revenue derived from transportation services provided in support
of disaster relief efforts provided primarily under a contract
between Landstar Express America, Inc. and the United States
Department of Transportation/Federal Aviation Administration.
(3) Trucks provided by Business Capacity Owners were 8,856 and 9,158 at
March 29, 2008 and March 31, 2007, respectively.
(4) Active refers to Truck Brokerage Carriers who have moved at least one
load in the past 180 days.
SOURCE Landstar System, Inc.
CONTACT:
Jim Gattoni of Landstar System, Inc.,
+1-904-398-9400
Web site: http://www.landstar.com
(LSTR)
Stock Overview
