Landstar System(LSTR) - 2024 Q4 - Annual Results

Financial Performance - Landstar reported Q4 2024 revenue of $1.209 billion, a slight increase from $1.204 billion in Q4 2023, marking year-over-year growth for the first time since Q3 2022[2][4]. - Basic and diluted earnings per share (EPS) for Q4 2024 were $1.31, down from $1.62 in Q4 2023[3][4]. - Total revenue for the fiscal year ended December 28, 2024, was $4,819,245, a decrease of 9.1% from $5,303,322 in the previous year[22]. - Gross profit margin decreased to 9.5% for the fiscal year ended December 28, 2024, compared to 10.3% in the previous year[22]. - Revenue from truck transportation totaled $4,346,554, down 9.9% from $4,829,530 in the previous year[22]. - Total costs of revenue for the fiscal year were $4,363,231, a decrease of 8.3% from $4,757,995 in the previous year[22]. Truck Transportation - Truck transportation revenue accounted for 89% of total revenue in Q4 2024, totaling $1.081 billion, compared to 90% in Q4 2023[4]. - The number of loads hauled via truck decreased by 3.4% year-over-year in Q4 2024, while truck revenue per load increased by 3.1%[5]. - The number of loads for truck transportation decreased to 1,960,960, a decline of 8.4% from 2,141,400 in the previous year[22]. - Revenue per load for van equipment was $2,091, a decrease of 4.0% from $2,177 in the previous year[22]. - The number of approved and active truck brokerage carriers decreased to 43,718 from 49,111 in the previous year[20]. - The number of trucks provided by BCO Independent Contractors decreased to 8,843 from 9,809 in the previous year[20]. Profitability and Costs - Gross profit for Q4 2024 was $109 million, down from $125 million in Q4 2023, and variable contribution was $167 million compared to $178 million in the prior year[6]. - Insurance and claims costs were 6.7% of BCO revenue in Q4 2024, significantly higher than the historical average of 4.7% from 2019 to 2023[5]. - Variable contribution margin for the fiscal year was 14.1%, slightly down from 14.6% in the previous year[22]. Shareholder Returns - Landstar returned $120.5 million to stockholders through dividends in the 2024 fiscal year and repurchased approximately 452,000 shares at a cost of $82.1 million[2]. - The company declared a quarterly dividend of $0.36 per share, payable on March 11, 2025[2]. Assets and Equity - As of December 28, 2024, Landstar had cash and short-term investments totaling approximately $567 million, with a trailing twelve-month return on average shareholders' equity of 20%[7]. - Total assets as of December 28, 2024, were $1.813 billion, with total liabilities of $840 million and shareholders' equity of $972 million[16].