Landstar System Reports Record First Quarter Revenue Of $762 Million And Record First Quarter Diluted Earnings Per Share Of $0.67

JACKSONVILLE, Fla., April 23, 2015 /PRNewswire/ -- Landstar System, Inc. (NASDAQ: LSTR) reported record first quarter diluted earnings per share of $0.67, on record first quarter revenue of $762 million in the 2015 first quarter. Landstar reported diluted earnings per share of $0.61 on revenue of $688 million in the 2014 first quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $115.4 million in the 2015 first quarter compared to $105.5 million of gross profit in the 2014 first quarter. Operating margin, representing operating income divided by gross profit, was 42.5 percent in the 2015 first quarter.          

Truck transportation revenue hauled by independent business capacity owners ("BCOs") and truck brokerage carriers in the 2015 first quarter was $708.9 million, or 93 percent of revenue, compared to $645.2 million, or 94 percent of revenue, in the 2014 first quarter.  Truckload transportation revenue hauled via van equipment in the 2015 first quarter was $449.7 million compared to $397.3 million in the 2014 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2015 first quarter was $239.5 million compared to $231.0 million in the 2014 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $42.8 million, or 6 percent of revenue, in the 2015 first quarter compared to $33.5 million, or 5 percent of revenue, in the 2014 first quarter. 

Trailing twelve-month return on average shareholders' equity was 30 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 24 percent.  Landstar purchased approximately 464,000 shares of its common stock during 2015 at an aggregate cost of $31.3 million. Currently, there are approximately 1,363,000 shares of the Company's common stock available for purchase under Landstar's authorized share purchase program. As of March 28, 2015, the Company had $152 million in cash and short term investments and $192 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 $0.07 per share payable on May 29, 2015, to stockholders of record as of the close of business on May 7, 2015.  It is currently the intention of the Board to pay dividends on a quarterly basis going forward.

"I am pleased with our 2015 first quarter operating performance," said Landstar's President and Chief Executive Officer, Jim Gattoni. "Demand for Landstar's services was strong throughout the quarter. Revenue and diluted earnings per share in the 2015 first quarter were both first quarter records. The number of loads hauled via truck exceeded the 2014 first quarter by 6 percent and the number of loads hauled via railroads, ocean cargo carriers and air cargo carriers increased 32 percent over the 2014 first quarter. The growth in the number of loads hauled via truck was driven by a 32 percent increase in less-than-truckload volume and a 7 percent increase in the number of loads hauled via van equipment. The number of loads hauled via unsided/platform equipment was relatively flat to the 2014 first quarter, impacted by an 11 percent decrease in the number of heavy/specialized loads, which comprised approximately 28 percent of Landstar's unsided/platform revenue in the 2015 first quarter. Revenue per load on loads hauled via truck was at all-time seasonal highs in the 2015 first quarter. After a 7 percent increase in revenue per load on loads hauled via truck in the first eight weeks of 2015 compared to the first eight weeks of 2014, though, period-over-prior-year period truck revenue per load slowed into March, as expected. Truck revenue per load in the final five weeks of the 2015 first quarter was 1 percent lower as compared to the final five weeks of the 2014 first quarter mostly due to the exceptionally strong truck revenue per load experienced in March 2014 and the impact of lower diesel fuel costs on loads hauled via truck brokerage carriers. Despite higher insurance and claims expense caused mostly by an unfavorable jury verdict in the 2015 first quarter related to an accident from a prior year, operating margin was 42.5 percent. And finally, diluted earnings per share in the 2015 first quarter increased 10 percent over the 2014 first quarter."

Gattoni continued, "Through the first several weeks of April, demand for Landstar's services remains strong. I expect the number of loads hauled via truck in the 2015 second quarter to increase in a mid-single digit range over the 2014 second quarter.  I anticipate truck revenue per load in the 2015 second quarter to be relatively flat to the 2014 second quarter. My expectation is that pricing conditions for truck services in the 2015 second quarter will remain similar to those experienced in March, with a stable, yet relatively tight truck capacity market and a low per gallon cost of diesel fuel. Assuming the current environment continues throughout the 2015 second quarter, I anticipate revenue for the 2015 second quarter to be in a range of $830 million to $880 million and, assuming that range of estimated revenue, I would anticipate 2015 second quarter diluted earnings per share to be in a range of $0.87 to $0.92 per share compared to $0.80 per diluted share in the 2014 second quarter."

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 5:00 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 2015 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:  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; dependence on key vendors; changes in fuel taxes; 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 2014 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 owners 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.

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SOURCE Landstar System, Inc.

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http://www.landstar.com

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