Landstar System(LSTR)

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Landstar System(LSTR) - 2023 Q2 - Earnings Call Transcript
2023-07-27 17:38
Financial Data and Key Metrics Changes - In the 2023 second quarter, total truck revenue was $1.247 billion, a 29% decrease from the 2022 second quarter, driven by a 16% decrease in load volume and a 15% decrease in revenue per load [94] - Gross profit was $139.7 million in the 2023 second quarter compared to $208.1 million in the 2022 second quarter, with a gross profit margin of 10.2% in 2023 versus 10.5% in 2022 [29][30] - Variable contribution was $198.2 million in the 2023 second quarter, down from $267.5 million in the same period last year, with a variable contribution margin of 14.4% compared to 13.5% in 2022 [30][31] Business Line Data and Key Metrics Changes - Insurance and claims costs were $29.8 million in the 2023 second quarter, down from $34.1 million in 2022, but represented 5.8% of BCO revenue in 2023 compared to 4.9% in 2022 [4] - Other operating costs increased to $13.5 million in the 2023 second quarter from $10.4 million in 2022, primarily due to increased provisions for contractor bad debt and general equipment maintenance costs [32] - Selling, general and administrative costs decreased to $54.5 million in the 2023 second quarter from $59 million in 2022, mainly due to a decreased provision for compensation under variable programs [34] Market Data and Key Metrics Changes - The BCO truck count decreased by 261 trucks in the quarter, an improvement compared to a 472 truck decrease in the first quarter of 2023, with an overall decrease of approximately 11% since the end of the second quarter of 2022 [1] - The 12-month rolling average turnover for BCOs is currently about 37%, similar to the 36% term rate experienced in 2019 during a comparable soft rate environment [2] - The company does not anticipate significant volume from any potential bankruptcies in the industry, indicating a stable outlook despite market disruptions [28] Company Strategy and Development Direction - The company aims to leverage growth in variable contribution to improve operating income, targeting a 70% pass-through of incremental growth in variable contribution to operating income by 2025 [20][51] - The management is focused on building efficiencies within the agent's office to handle more volume without significantly increasing headcount, indicating a strategy of operational efficiency [49] - The company is investing in technology and digital tools to enhance communication and efficiency, with a consistent annual spend of $25 million to $30 million on AI and digital technologies [80] Management's Comments on Operating Environment and Future Outlook - Management expects continued seasonal softness in both van and flatbed segments, with no clear indicators of a turnaround in the near term [8] - The company acknowledges the unpredictability of future economic conditions, making it challenging to forecast truckload volume levels beyond a few months [119] - Management believes that the current down cycle may see an inflection point in late 2023 or early 2024, with readiness to capitalize on the recovery [83] Other Important Information - The effective income tax rate remained stable at 24.6% for both the 2023 and 2022 second quarters [110] - Cash and short-term investments at the end of the quarter were $419 million, with cash flow from operations for the first half of 2023 at $192 million [111] - The company generated free cash flow of $179 million through the first half of 2023, demonstrating resilience despite challenging market conditions [119] Q&A Session Summary Question: Are volumes underperforming seasonality? - Management confirmed that volumes starting in July are underperforming seasonality and expect this trend to continue into August and September [10][12] Question: What is the outlook for truckload pricing and volumes? - Management anticipates truckload pricing to be 10% to 12% below the 2022 third quarter, with loads expected to be approximately 6% below the 2023 second quarter [118] Question: How is the company preparing for potential market disruptions? - Management indicated that they are well-prepared with new pricing tools and efficiencies to better handle volume when demand picks up [49] Question: What are the trends in industrial end markets? - Management noted that machinery and building products are performing better than consumer categories, but overall demand remains soft [64] Question: How is the company leveraging technology and AI? - The company is investing in AI and digital tools to improve operational efficiencies and communication, with a focus on enhancing service delivery [80][76]
Landstar System(LSTR) - 2023 Q1 - Earnings Call Transcript
2023-04-27 20:36
Jim G, starting in October, you began walking us through kind of a hypothetical revenue downside scenario and how the business might perform. I think you started off at 20% and you honed that a little bit for us in January or February. Can you walk us through -- trying to kind of walk the business to trough how the business might perform and anything you would change to what you shared with us before based on how this year has developed so far? But I am concerned a little bit on the cost side with the -- a ...
Landstar System(LSTR) - 2022 Q4 - Annual Report
2023-02-24 21:51
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Or Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 Landstar System, Inc. (Exact name of registrant as specified in its charter) Delaware 06-1313069 (State or other jurisdiction of incorporation or organization) 13410 Sutton Park Drive South Jacksonville, Florida 32224 (Address of principal executive offices) (Zip Cod ...
Landstar System(LSTR) - 2022 Q4 - Earnings Call Transcript
2023-02-02 18:27
Landstar System, Inc. (NASDAQ:LSTR) Q4 2022 Earnings Conference Call February 2, 2023 8:00 AM ET Company Participants Jim Gattoni - President & Chief Executive Officer Jim Todd - Vice President & Chief Financial Officer Rob Brasher - Vice President & Chief Commercial Officer Joe Beacom - Vice President, Chief Safety & Operations Officer Conference Call Participants Todd Fowler - KeyBanc Capital Market Scott Group - Wolfe Research Jack Atkins - Stephens Bruce Chan - Stifel Bascome Majors - Susquehanna Stepha ...
Landstar System(LSTR) - 2022 Q3 - Earnings Call Transcript
2022-10-20 15:44
Landstar System, Inc. (NASDAQ:LSTR) Q3 2022 Earnings Conference Call October 20, 2022 8:00 AM ET Â Company Participants Jim Gattoni - President & CEO Jim Todd - VP & CFO Rob Brasher - VP & CCO Joe Beacom - VP, Chief Safety & Operations Officer Conference Call Participants Jon Chappell - Evercore ISI Bascome Majors - Susquehanna Jack Atkins - Stephens Todd Fowler - KeyBanc Capital Markets Scott Group - Wolfe Research Elliot Alper - Cowen Scott Schneeberger - Oppenheimer Bruce Chan - Stifel Operator Good morn ...
Landstar System(LSTR) - 2022 Q2 - Earnings Call Transcript
2022-07-21 16:35
Landstar System, Inc. (NASDAQ:LSTR) Q2 2022 Earnings Conference Call July 21, 2022 8:00 AM ET Company Participants Jim Gattoni - President & CEO Jim Todd - VP & CFO Rob Brasher - VP & CCO Joe Beacom - VP, Chief Safety & Operations Officer Conference Call Participants Jon Chappell - Evercore ISI Todd Fowler - KeyBanc Capital Markets Allison Poliniak - Wells Fargo Bascome Majors - Susquehanna Jack Atkins - Stephens Scott Group - Wolfe Research Scott Schneeberger - Oppenheimer Bruce Chan - Stifel Operator Good ...
Landstar System(LSTR) - 2022 Q2 - Earnings Call Presentation
2022-07-21 14:18
Financial Performance - Second Quarter 2022 revenue reached $1975064000, a 257% increase compared to $1570718000 in the second quarter of 2021[19, 20] - Year-to-date revenue as of June 25, 2022, was $3945663000, a 380% increase compared to $2858252000 for the same period in 2021[14, 18] - Second Quarter 2022 gross profit was $208080000, compared to $174844000 in the second quarter of 2021, with gross profit margin at 105% and 111% respectively[29] - Year-to-date gross profit was $422646000, compared to $321975000 for the same period in 2021, with gross profit margin at 107% and 113% respectively[28] - Second Quarter 2022 variable contribution was $267520000, compared to $220784000 in the second quarter of 2021, with variable contribution margin at 135% and 141% respectively[32] - Year-to-date variable contribution was $538011000, compared to $410024000 for the same period in 2021, with variable contribution margin at 136% and 143% respectively[31] - Second Quarter 2022 operating income was $150418000, compared to $122248000 in the second quarter of 2021[40] - Year-to-date operating income was $313251000, compared to $225516000 for the same period in 2021[38] Operational Data - The company had approximately 1200 agents, over 25000 customers, and over 111000 capacity providers as of June 25, 2022[14] - Total available truck capacity providers reached 111126 as of June 25, 2022[44]
Landstar System(LSTR) - 2022 Q1 - Earnings Call Transcript
2022-04-21 17:54
Start Time: 08:00 January 1, 0000 8:43 AM ET Landstar System, Inc. (NASDAQ:LSTR) Q1 2022 Earnings Conference Call April 21, 2022, 08:00 AM ET Company Participants Jim Gattoni - President and CEO Fred Pensotti - VP and CFO Rob Brasher - VP and Chief Commercial Officer Joe Beacom - VP and Chief Safety and Operations Officer Conference Call Participants Bascome Majors - Susquehanna Jack Atkins - Stephens Stephanie Moore - Truist Scott Group - Wolfe Research Scott Schneeberger - Oppenheimer Operator Good mornin ...
Landstar System(LSTR) - 2022 Q1 - Earnings Call Presentation
2022-04-21 12:06
DESIGNED TO RESPOND BUILT TO DELIVER | --- | --- | |--------------------------|-------| | | | | Landstar System, Inc. | | | | | | Earnings Conference Call | | | | | | | | | First Quarter 2022 | | | April 20, 2022 | | Date Published: 04/20/2022 Forward Looking Statements Disclaimer: 2 The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are "forward looking statements." This pre ...
Landstar System(LSTR) - 2021 Q4 - Annual Report
2022-02-18 21:35
Table of Contents ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 25, 2021 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) 13410 Sutton Park Drive South Jacksonville, Florida 32224 (Address of principal executive offices) (Zip Code) Or (I.R.S. Employer Identification No.) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (904) 398-9400 For the transi ...