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Landstar System Inc   (LSTR)
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Price: $179.9500 $-3.68 -2.004%
Day's High: $185.065 Week Perf: -4.21 %
Day's Low: $ 179.73 30 Day Perf: -8.44 %
Volume (M): 231 52 Wk High: $ 208.62
Volume (M$): $ 41,586 52 Wk Avg: $184.49
Open: $185.03 52 Wk Low: $161.13



 Market Capitalization (Millions $) 6,464
 Shares Outstanding (Millions) 36
 Employees 1,211
 Revenues (TTM) (Millions $) 5,313
 Net Income (TTM) (Millions $) 264
 Cash Flow (TTM) (Millions $) 141
 Capital Exp. (TTM) (Millions $) 26

Landstar System Inc

Landstar is an asset-light provider of integrated transportation management solutions. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to enterprise-wide solutions to manage all of a customer’s transportation needs. Landstar provides services principally throughout the United States and to a lesser extent in Canada and between the United States and Canada, Mexico and other countries around the world. The Company’s services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. The nature of the Company’s business is such that a significant portion of its operating costs varies directly with revenue.

Landstar markets its integrated transportation management solutions primarily through independent commission sales agents and exclusively utilizes third party capacity providers to transport customers’ freight. Landstar’s independent commission sales agents enter into contractual arrangements with the Company and are responsible for locating freight, making that freight available to Landstar’s capacity providers and coordinating the transportation of the freight with customers and capacity providers. The Company’s third party capacity providers consist of independent contractors who provide truck capacity to the Company under exclusive lease arrangements (the “BCO Independent Contractors”), unrelated trucking companies who provide truck capacity to the Company under non-exclusive contractual arrangements (the “Truck Brokerage Carriers”), air cargo carriers, ocean cargo carriers and railroads. Through this network of agents and capacity providers linked together by Landstar’s information technology systems, Landstar operates an integrated transportation management solutions business primarily throughout North America. The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment.

The Company’s primary day-to-day contact with its customers is through its network of independent commission sales agents and, to a lesser extent, through employees of the Company. The typical Landstar independent commission sales agent maintains a relationship with a number of shippers and services these shippers utilizing the Company’s information technology systems and the various modes of transportation made available through the Company’s network of third party capacity providers. The Company provides assistance to the agents in developing additional relationships with shippers and enhancing agent and Company relationships with larger shippers through the Company’s field employees, located throughout the United States and Canada. The Operating Subsidiaries provide programs to support the agents’ operations and provide guidance on establishing pricing parameters for freight hauled by the various modes of transportation available to the agents. It is important to note that the Operating Subsidiaries, and not the Company’s agents, contract directly with customers and generally assume the related credit risk and potential liability for freight losses or damages when the Company is providing transportation services as a motor carrier.
Management believes the Company has more independent commission sales agents than any other asset-light integrated transportation management solutions company. Landstar’s vast network of independent commission sales agent locations provides the Company regular contact with shippers at the local level and the capability to be highly responsive to shippers’ changing needs. The Company’s large fleet of available capacity provides the agent network the resources needed to service both large and small shippers. Through its agent network, the Company offers smaller shippers a level of service comparable to that typically enjoyed only by larger customers. Examples include the ability to provide transportation services on short notice, multiple pick-up and delivery points, electronic data interchange capability and access to specialized equipment. In addition, a number of the Company’s agents specialize in certain types of freight and transportation services (such as oversized or heavy loads and/or rail, air and international freight transportation). Each independent commission sales agent has the opportunity to market all of the services provided by the transportation logistics segment.

The independent commission sales agents use a variety of proprietary and third party information technology applications provided by the Company to service the requirements of shippers. For truckload services, the Company’s independent commission sales agents use Landstar proprietary software which enables agents to enter available freight, dispatch capacity and process most administrative procedures and then communicate that information to Landstar and its capacity providers via the internet. The Company’s web-based available truck information system provides a listing of available truck capacity to the Company’s independent commission sales agents. For modes of transportation other than truckload, the independent commission sales agents utilize both proprietary and third party information technology applications provided by the Company.


Commissions to agents are based on contractually agreed-upon percentages of revenue or net revenue, defined as revenue less the cost of purchased transportation, or net revenue less a contractually agreed upon percentage of revenue retained by Landstar. Commissions to agents as a percentage of consolidated revenue will vary directly with fluctuations in the percentage of consolidated revenue generated by the various modes of transportation and reinsurance premiums and with changes in net revenue margin, defined as net revenue divided by revenue, on services provided by Truck Brokerage Carriers, railroads, air cargo carriers and ocean cargo carriers. Commissions to agents are recognized upon the completion of freight delivery.

The Company relies exclusively on independent third parties for its hauling capacity other than for trailing equipment owned or leased by the Company and utilized primarily by the BCO Independent Contractors. These third party transportation capacity providers consist of BCO Independent Contractors, Truck Brokerage Carriers, air and ocean cargo carriers and railroads. Landstar’s use of capacity provided by third parties allows it to maintain a lower level of capital investment, resulting in lower fixed costs. During 2014, revenue hauled by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 48%, 46% and 3%, respectively, of the Company’s consolidated revenue. Collectively, revenue hauled by air and ocean cargo carriers represented approximately 2% of the Company’s consolidated revenue during 2014. Historically, the gross profit margin (defined as gross profit, which is defined as revenue less the cost of purchased transportation and commissions to agents, divided by revenue) generated from freight hauled by BCO Independent Contractors has been greater than that from freight hauled by other third party capacity providers. However, the Company’s insurance and claims costs and other operating costs are incurred primarily in support of BCO Independent Contractor capacity. In addition, as further described in the “Corporate Services” section that follows, the Company incurs significantly higher selling, general and administrative costs in support of BCO Independent Contractor capacity as compared to the other modes of transportation. Purchased transportation costs are recognized upon the completion of freight delivery.
BCO Independent Contractors. Management believes the Company has the largest fleet of truckload BCO Independent Contractors in the United States. BCO Independent Contractors provide truck capacity to the Company under exclusive lease arrangements. Each BCO Independent Contractor operates under the motor carrier operating authority issued by the U.S. Department of Transportation (“DOT”) to Landstar’s Operating Subsidiary to which such BCO Independent Contractor provides services and has leased his or her equipment. The Company’s network of BCO Independent Contractors provides marketing, operating, safety, recruiting, retention and financial advantages to the Company.
The Company’s BCO Independent Contractors are compensated primarily based on a contractually agreed-upon percentage of revenue generated by delivered loads they haul. This percentage generally ranges from 62% to 73% where the BCO Independent Contractor provides only a tractor and 72% to 77% where the BCO

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Independent Contractor provides both a tractor and trailing equipment. The BCO Independent Contractor must pay substantially all of the expenses of operating his/her equipment, including driver wages and benefits, fuel, physical damage insurance, maintenance, highway use taxes and debt service, if applicable. The Company passes 100% of fuel surcharges billed to customers for freight hauled by BCO Independent Contractors to its BCO Independent Contractors. These fuel surcharges are excluded from revenue.
The Company maintains internet-based applications for mobile and desktop devices through which BCO Independent Contractors can view a comprehensive listing of the Company’s available freight, allowing them to consider rate, size, origin and destination when planning trips. The Landstar Contractors’ Advantage Purchasing Program (LCAPP) leverages Landstar’s purchasing power to provide discounts to eligible BCO Independent Contractors when they purchase equipment, fuel, tires and other items. In addition, LCFI provides a source of funds at competitive interest rates to the BCO Independent Contractors to purchase primarily trailing equipment.

Truck Brokerage Carriers. The Company maintained a database of over 38,000 approved Truck Brokerage Carriers who provide truck capacity to the Company. Truck Brokerage Carriers provide truck capacity to the Company under non-exclusive contractual arrangements and each operates under its own DOT-issued motor carrier operating authority. Truck Brokerage Carriers are paid either a negotiated rate for each load hauled or, to a lesser extent, a contractually agreed-upon fixed rate per load. The Company recruits, approves, establishes contracts with and tracks safety ratings and service records of these third party trucking companies. In addition to providing additional capacity to the Company, the use of Truck Brokerage Carriers enables the Company to pursue different types and quality of freight such as temperature-controlled, short-haul traffic and less-than-truckload and, in certain instances, lower-priced freight that generally would not be handled by the Company’s BCO Independent Contractors.

The Company maintains an internet site through which Truck Brokerage Carriers can view a listing of the Company’s freight that is available to them to be hauled. The Landstar Savings Plus Program leverages Landstar’s purchasing power to provide discounts to eligible Truck Brokerage Carriers when they purchase fuel and equipment and provides the Truck Brokerage Carriers with an electronic payment option.


Railroads and Air and Ocean Cargo Carriers. The Company has contracts with Class 1 domestic and Canadian railroads, certain short-line railroads and domestic and international airlines and ocean lines. These relationships allow the Company to pursue the freight best serviced by these forms of transportation capacity. Railroads are paid either a negotiated rate for each load hauled or a contractually agreed-upon fixed rate per load. Air cargo carriers are generally paid a negotiated rate for each load hauled. Ocean cargo carriers are generally paid contractually agreed-upon fixed rates per load. The Company also contracts with other third party capacity providers, such as air charter service providers, when required by specific customer needs.



   Company Address: 13410 Sutton Park Drive South Jacksonville 32224 FL
   Company Phone Number: 398-9400   Stock Exchange / Ticker: NASDAQ LSTR
   


   

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XPO   -2.29%    
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Landstar System Inc

Landstar System Inc Faces Significant Earnings per Share Reduction in Q4 Financial Report2.



Landstar System Inc, a prominent provider of integrated transportation management solutions, recently reported its financial results for the 2023 thirteen-week fourth quarter. The company demonstrated growth in revenue but experienced a decrease in net profit per share compared to the previous year. Additionally, Landstar System expanded its stock purchase program and declared a special dividend to enhance shareholder value. These developments raise questions about the company's future prospects and how they will impact its performance moving forward.
Landstar System Stock Performance:
Despite the recent positive performance, with the stock increasing by 8.18% from a year ago and reaching a share price of 12.81% in the past 90 days, Landstar System Inc's stock is currently 6.4% below its 52-week high. These statistics suggest that investors have shown confidence in the company's potential. However, it is important to consider how recent financial results may influence this positive trend.

Dividend

Landstar Strengthens Shareholder Value with Increased Stock Purchase Program and Special Dividend Declaration

Published Tue, Dec 5 2023 1:15 PM UTC


Introduction
Landstar System, Inc., a leading provider of integrated transportation management solutions, recently announced an increase to its stock purchase program, reflecting the company's commitment to enhancing shareholder value. The Board of Directors authorized the purchase of an additional 319,332 shares of Landstar System common stock, bringing the total a...

Landstar System Inc

Landstar System Inc Faces Turbulent Fiscal Period, Witnessing Significant Decline in Profits and Revenue2.

Landstar System Inc, a leading transportation and logistics company, faced a challenging fiscal interval from July to September 2023. The company reported a significant drop in net profit per share, witnessing a decrease of -38.04% from $2.76 per share a year ago to $1.71 per share. Furthermore, the net profit per share also decreased by -7.57% compared to the preceding reporting season's figure of $1.85 per share.
One of the major contributors to the decline in profitability for Landstar System Inc was the substantial drop in revenue. The company experienced a staggering -28.868% decrease, with revenue falling from $1.82 billion in the same reporting season a year ago to $1.29 billion. Additionally, there was also a sequential decrease in revenue of -6.101% from $1.38 billion in the previous period.

Landstar System Inc

Landstar System Inc. Confronts Substantial 30.335% Revenue Downturn Amidst 2023's Second Quarter Earnings Period



In this article, we will delve into the financial performance of Landstar System Inc, one of the leading transportation and logistics companies in the United States. Despite its dominance in the industry, recent financial indicators have raised concerns about the company's profitability, revenue, and overall financial health. This article aims to present a bearish perspective on Landstar System Inc's performance in light of the provided data.
Declining Earnings and Profits:
Landstar System Inc experienced a significant decline in earnings per share (EPS) for the fiscal span ending July 01, 2023. The EPS dropped by a staggering 39.34% to $1.85 per share, as compared to $3.05 per share in the previous year. Additionally, profits fell by 14.75%, with a decline from $2.17 per share in the prior reporting period. These figures suggest a significant deterioration in the company's financial performance.

Landstar System Inc

Landstar System Inc. Sets the Bar High with Impressive Long-Term Potential despite Recent Downturn in Earnings

Despite a recent downturn in financial earnings, Landstar System Inc. is a company with an incredibly bright future. While their income per share may have dropped by -35.03% for the February to April 01 2023 interval, this should not be seen as a reflection of their long-term potential.
First and foremost, it's important to note that these numbers are based on a single quarter, and not necessarily representative of the company's overall performance. Landstar has a proven track record of success, having been in business for over 30 years, and they are well positioned to weather any short-term storms.
Moreover, there are clear signs that Landstar is already taking steps to recover and grow. Despite a -16.56% dip in profits for the same reporting period, the company has been investing in new technology and expanding its operations to better serve its customers. This suggests that they are not content to rest on their laurels and are actively looking for ways to improve and expand their business.






 

Landstar System Inc's Segments
 
 
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  Company Estimates  
  Revenue Outlook
Landstar System Inc does not provide revenue guidance.

Earnings Outlook
Landstar System Inc does not provide earnings estimates.

 
Geographic Revenue Dispersion




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