Landstar System(LSTR)2025-02-24 22:25Financial Performance - Total revenue for the fiscal year ended December 28, 2024, was $4,819,245, a decrease of 9.1% compared to $5,303,322 in 2023[228]. - Net income for the fiscal year 2024 was $195,946, down 26.0% from $264,394 in 2023[228]. - Operating income decreased to $248,907 in 2024, a decline of 27.7% from $344,149 in 2023[228]. - The company reported comprehensive income of $190,801 for the fiscal year 2024, down from $272,553 in 2023, a decrease of 30.0%[231]. - External revenue from the transportation logistics segment in 2024 was $4,756,008, compared to $5,230,846 in 2023, reflecting a decline of 9%[323]. - The insurance segment generated total revenue of $120,713 in 2024, a decrease from $140,453 in 2023[323]. - The company reported an increase in insurance and claims costs, with total insurance and claims expenses of $171,405 in 2024, compared to $182,218 in 2023[323]. - Investment income increased to $14,810 in 2024, up from $10,141 in 2023[323]. Assets and Liabilities - Total current assets decreased to $1,319,867 in 2024 from $1,352,741 in 2023, primarily due to a decrease in trade accounts receivable[225]. - Total liabilities decreased slightly to $840,000 in 2024 from $842,000 in 2023, indicating stable financial management[225]. - The company had no borrowings outstanding under the Credit Agreement as of December 28, 2024, maintaining a revolving credit facility of $300,000,000[220]. - The self-insurance claims liability as of December 28, 2024, was estimated at $103,353,000[340]. - As of December 28, 2024, total deferred tax assets increased to $25,108,000 from $22,954,000 in 2023, while total deferred tax liabilities decreased to $42,710,000 from $46,942,000, resulting in a net deferred tax liability of $17,602,000[273]. Shareholder Returns - The company paid dividends of $120,476 in 2024, compared to $117,130 in 2023, representing an increase of 2.0%[234]. - Dividends increased to $3.38 per share in 2024, up from $3.26 per share in 2023, reflecting a growth of 3.68%[236]. - The Company declared a special cash dividend of $2.00 per share, resulting in dividends payable of $70,632,000 as of December 28, 2024[263]. - The Company purchased a total of 452,019 shares of its Common Stock at a total cost of $82.117 million during fiscal year 2024[312]. Stock and Equity - The average basic and diluted shares outstanding decreased to 35,538,000 in 2024 from 35,920,000 in 2023[228]. - The total number of common shares outstanding increased to 68,559,269 in 2024 from 68,497,324 in 2023, reflecting a slight increase of 0.1%[236]. - Total common stock purchases amounted to $82,117,000 in 2024, compared to $54,267,000 in 2023, indicating a significant increase of 51.4%[236]. - The total unrecognized compensation cost related to RSU awards as of December 28, 2024, was $41.9 million, with an expected average remaining life of approximately 3.3 years[303]. Taxation - For the fiscal year 2024, the total current income tax expense was $65,370,000, a decrease from $91,410,000 in 2023[272]. - The Company reported income taxes of $58,380,000 for fiscal year 2024, down from $83,701,000 in 2023, reflecting a decrease of approximately 30%[273]. - Landstar paid income taxes of $47,528,000 in fiscal year 2024, significantly lower than $92,695,000 in fiscal year 2023, marking a decrease of approximately 48.9%[275]. Operational Insights - Truck transportation revenue from BCO Independent Contractors accounted for 38% of consolidated revenue in 2024, consistent with 2023, while Truck Brokerage Carriers contributed 52%, down from 53%[244]. - Van equipment revenue decreased to $2,447,810,000 in 2024 from $2,742,281,000 in 2023, a decline of approximately 10.7%[244]. - The company experienced unfavorable development of prior years' self-insured claims, impacting operating income by $8,824 in 2024[326]. Goodwill and Impairment - The Company performed a qualitative assessment of goodwill in Q4 2024 and determined that the fair value of each reporting unit is likely greater than its carrying amount, thus no quantitative impairment test was necessary[257]. Internal Controls and Audit - The audit report expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 28, 2024[347]. - There were no significant changes in the Company's internal control over financial reporting during the fourth fiscal quarter[354].