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.

(Tables follow)



                                                   Landstar System, Inc. and Subsidiary

                                                     Consolidated Statements of Income

                                             (Dollars in thousands, except per share amounts)

                                                                (Unaudited)



                                                                                    Thirteen Weeks Ended
                                                                                    --------------------

                                                                                          March 28,                  March 29,

                                                                                                        2015                         2014
                                                                                                        ----                         ----


    Revenue                                                                                      $762,380                     $688,197

    Investment income                                                                                354                          363


    Costs and expenses:

                            Purchased
                            transportation                   587,153                                  530,031

                            Commissions to
                            agents                            59,784                                   52,704

                           Other operating
                            costs, net of
                            gains on asset
                            sales/
                            dispositions                       7,689                                    6,586

                            Insurance and
                            claims                                     14,796                                 11,857

                            Selling, general
                            and
                            administrative                    37,248                                   35,600

                            Depreciation and
                            amortization                       7,019                                    6,768



                            Total costs
                            and
                            expenses                         713,689                                  643,546
                                                             -------                                  -------


    Operating income                                                                              49,045                       45,014

    Interest and debt expense                                                                        781                          768
                                                                                                     ---                          ---


    Income before income taxes                                                                   48,264                       44,246

    Income taxes                                                                                   18,249                       16,608
                                                                                                   ------                       ------


    Net income                                                                                    $30,015                      $27,638
                                                                                                  =======                      =======



    Earnings per common share                                                                     $0.67                        $0.61
                                                                                                  =====                        =====


    Diluted earnings per share                                                                     $0.67                        $0.61
                                                                                                   =====                        =====


    Average number of shares outstanding:

                            Earnings per
                            common share                  44,588,000                               45,407,000


                            Diluted earnings
                            per share                     44,760,000                               45,596,000



    Dividends per common share                                                                    $0.07                        $0.06
                                                                                                  =====                        =====

                                                                                                        Landstar System, Inc. and Subsidiary

                                                                                                            Consolidated Balance Sheets

                                                                                                  (Dollars in thousands, except per share amounts)

                                                                                                                    (Unaudited)



                                                                                                                                                                           March 28,                   December 27,

                                                                                                                                                                                         2015                          2014
                                                                                                                                                                                         ----                          ----

    ASSETS

    Current assets:

                                    Cash and cash equivalents                                                                                       $114,887                          $163,944

                                    Short-term investments                                                                                            37,174                            37,007

                                    Trade accounts receivable, less allowance

                                    of $4,248 and $4,338                                                                                             447,696                           492,642

                                    Other receivables, including advances to independent

                                     contractors, less allowance of $4,235 and
                                     $4,189                                                                  29,437                                     15,132

                                    Deferred income taxes and other current assets                                                   11,475                      23,603

                                    Total current assets                                                                                             640,669                           732,328
                                                                                                                                                     -------                           -------


    Operating property, less accumulated depreciation

                                                                                  and amortization of $165,007 and
                                                                                  $160,681                                             197,085                     202,203

    Goodwill                                                                                                                                                                        31,134                        31,134

    Other assets                                                                                                                                                                   78,758                        78,547

    Total assets                                                                                                                                                                 $947,646                    $1,044,212
                                                                                                                                                                                 ========                    ==========


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:

                                    Cash overdraft                                                                                                               $28,410                       $34,629

                                    Accounts payable                                                                                                 196,215                           220,077

                                    Current maturities of long-term debt                                                               34,432                      35,064

                                    Insurance claims                                                                                                  24,791                            24,233

                                    Dividends payable                                                                                                      -                           44,794

                                    Other current liabilities                                                                                         42,126                            51,654

                                    Total current liabilities                                                                                        325,974                           410,451
                                                                                                                                                     -------                           -------


    Long-term debt, excluding current maturities                                                                                                                                 67,671                        76,257

    Insurance claims                                                                                                                                                               22,532                        21,769

    Deferred income taxes and other non-current liabilities                                                                                                                      47,144                        47,474


    Shareholders' equity:

                                    Common stock, $0.01 par value, authorized 160,000,000

                                     shares, issued 67,349,642 and 67,268,817
                                     shares                                                                    673                                        673

                                    Additional paid-in capital                                                                                       189,525                           189,012

                                    Retained earnings                                                                                              1,282,277                         1,255,374

                                    Cost of 22,938,800 and 22,474,331 shares of common

                                    stock in treasury                                                                                              (986,913)                        (955,613)

                                    Accumulated other comprehensive loss                                                            (1,237)                    (1,185)


                                    Total shareholders' equity                                                                                       484,325                           488,261
                                                                                                                                                     -------                           -------

    Total liabilities and shareholders' equity                                                                                                                                 $947,646                    $1,044,212
                                                                                                                                                                               ========                    ==========




                                                    Landstar System, Inc. and Subsidiary

                                                          Supplemental Information

                                                                 (Unaudited)



                                                                                                                                       Thirteen Weeks Ended
                                                                                                                                       --------------------

                                                                                                                                            March 28,                       March 29,

                                                                                                                                                              2015                        2014
                                                                                                                                                              ----                        ----

    Revenue generated through (in thousands):
    -----------------------------------------


                                          Truck transportation

                                          Truckload:

                                                                                                   Van equipment                                          $449,688                    $397,261

                                                                                                   Unsided/platform equipment                              239,483                     231,019

                                          Less-than-truckload                                                                   19,698                               16,885
                                                                                                                                ------                               ------

                                                                                                   Total truck transportation                              708,869                     645,165

                                          Rail intermodal                                                                       23,181                               16,495

                                          Ocean and air cargo carriers                                                          19,632                               17,016

                                          Other (1)                                                                             10,698                                9,521

                                                                                                                                                          $762,380                    $688,197
                                                                                                                                                          ========                    ========


                                           Revenue on loads hauled via BCO Independent Contractors
                                           (2)

                                          included in total truck transportation                                              $350,325                             $343,652


    Number of loads:
    ----------------


                                          Truck transportation

                                          Truckload:

                                                                                                   Van equipment                                           258,952                     242,736

                                                                                                   Unsided/platform equipment                              102,166                     101,893

                                          Less-than-truckload                                                                   25,992                               19,691
                                                                                                                                ------                               ------

                                                                                                   Total truck transportation                              387,110                     364,320

                                          Rail intermodal                                                                        9,480                                6,410

                                          Ocean and air cargo carriers                                                           4,130                                3,890

                                                                                                                                                           400,720                     374,620
                                                                                                                                                           =======                     =======


                                          Loads hauled via BCO Independent Contractors (2)

                                          included in total truck transportation                                               191,300                              198,870


    Revenue per load:
    -----------------


                                          Truck transportation

                                          Truckload:

                                                                                                   Van equipment                                            $1,737                      $1,637

                                                                                                   Unsided/platform equipment                                2,344                       2,267

                                          Less-than-truckload                                                                      758                                  857

                                                                                                   Total truck transportation                                1,831                       1,771

                                          Rail intermodal                                                                        2,445                                2,573

                                          Ocean and air cargo carriers                                                           4,754                                4,374


                                           Revenue per load on loads hauled via BCO Independent
                                           Contractors (2)                                                                      $1,831                               $1,728


    Revenue by capacity type (as a % of total revenue);
    ---------------------------------------------------


                                          Truck capacity providers:

                                          BCO Independent Contractors (2)                                                          46%                                 50%

                                          Truck Brokerage Carriers                                                                 47%                                 44%

                                          Rail intermodal                                                                           3%                                  2%

                                          Ocean and air cargo carriers                                                              3%                                  2%

                                          Other                                                                                                                 1%                         1%



                                                                                                                                            March 28,                       March 29,

                                                                                                                                                              2015                        2014
                                                                                                                                                              ----                        ----

    Truck Capacity Providers
    ------------------------


                                          BCO Independent Contractors (2)                                                        8,478                                7,922


                                          Truck Brokerage Carriers:

                                               Approved and active (3)                                                          27,304                               21,588

                                               Other approved                                                                   13,016                               11,291


                                                                                                                                                            40,320                      32,879
                                                                                                                                                            ------                      ------

                                          Total available truck capacity providers                                              48,798                               40,801



                                          Trucks provided by BCO Independent Contractors (2)                                     9,046                                8,424



    (1) Includes primarily premium revenue generated by the insurance segment.


    (2) BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.


    (3) Active refers to Truck Brokerage Carriers who have moved at least one load in the 180 days immediately preceding the fiscal quarter end.

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SOURCE Landstar System, Inc.