Home

News

Landstar System Reports Record Second Quarter Revenue and Earnings and Declares Two-For-One Stock Split

Tags: Press Releases

July 18, 2002 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported 2002 record second quarter net income of $12.2 million, or $1.45 per diluted share, compared to net income of $10.9 million, or $1.26 per diluted share, in the 2001 second quarter. The 2001 period included $305,000 of goodwill amortization, excluding this charge net income would have been $11.2 million, or $1.29 per diluted share. Revenue was $391.2 million for the thirteen-week period ended June 29, 2002, compared with $358.0 million for the thirteen-week period ended June 30, 2001. Landstar's carrier group of companies generated $310.0 million of revenue in the 2002 second quarter compared with $280.2 million in the 2001 second quarter. Landstar's multimodal services group of companies reported revenue of $74.3 million in the 2002 second quarter compared to $72.2 million in the 2001 second quarter. Operating margin was 5.4 percent in the 2002 second quarter the same as in the 2001 second quarter.

Net income for the twenty-six-week period ended June 29, 2002 was $20.8 million, or $2.47 per diluted share, compared to net income of $19.3 million, or $2.21 per diluted share, for the twenty-six-week period ended June 30, 2001. The 2001 period included $609,000 of goodwill amortization, excluding this charge net income would have been $19.9 million, or $2.28 per diluted share. Revenue was $726.9 million in the 2002 first half, compared to revenue of $689.3 million in the 2001 first half. Landstar's carrier group of companies generated $580.0 million of revenue in the twenty-six-week period ended June 29, 2002 compared with $543.6 million in the twenty-six-week period ended June 30, 2001. Landstar's multimodal services group of companies generated $133.1 million of revenue in the 2002 twenty-six-week period compared with $134.0 million in the 2001 period. Operating margin for the 2002 twenty-six-week period was 5.0 percent compared with 5.1 percent in the 2001 comparable period.

Landstar also announced that its Board of Directors has declared a two-for-one stock split to be effected in the form of a 100% stock dividend. Stockholders will receive one additional share for every share held on the record date for the stock-split, which is August 2, 2002. Additional shares will be mailed or delivered on or about August 12, 2002 by the Company's Transfer Agent, The Bank of New York.

"I am pleased with Landstar's 2002 second quarter performance," said Landstar Chairman and CEO, Jeff Crowe. "During the second quarter, Landstar grew consolidated revenue by over 9% to its highest quarterly revenue in Landstar history. Despite the adverse effect of one very serious accident that happened in June which reduced our operating margin in the quarter by more than one full percentage point, Landstar was still able to achieve record second quarter net income."

"Trailing twelve-month return on average equity remained high at 34 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was above 21 percent. Landstar's balance sheet continued to strengthen, as we reduced debt by over $29 million since year-end 2001 and ended the quarter with over $49 million in cash and short-term investments. Shareholder's equity represented 66 percent of capitalization, up from 54 percent at year-end," Crowe said. "I believe that Landstar's financial strength is significant and will allow us to take advantage of future opportunities as they arise."

"Landstar ended the 2002 second quarter with 8,646 trucks, 133 less than at year-end and 166 more than at the end of the 2001 second quarter. I expect truck count to increase during the remainder of the year by approximately 200 trucks."

"As reported by FIRST CALL, the range of analysts' earnings estimates for the 2002 third quarter is $1.50 to $1.62 per diluted share," said Crowe. "Based upon the level of business activity experienced during the second quarter, I am currently comfortable with that range."

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 1 p.m. EDT. To access the webcast visit the company's website at www.landstar.com. Click on Investor Relations and then on the microphone at the top of the page. StreetEvents.com will also carry the broadcast live.

This press release contains forward-looking statements, such as statements that relate to Landstar's business objectives, plans, strategies and expectations. The words "believe", "anticipate", "should" and similar expressions identify forward-looking statements. While made in good faith and with a reasonable basis based on information currently available to Landstar's management, there is no assurance that such opinions, beliefs or expectations will be achieved or accomplished. Various factors could cause actual results and events to vary significantly from those expressed in any forward-looking statement. Such types of statements are intended to be forward- looking statements for purposes of the Private Securities Litigation Reform Act of 1995.

The Company is under no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason.

Landstar System, Inc. is headquartered in Jacksonville, Florida. The Landstar carrier group comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc. and Landstar Ranger, Inc. delivers excellence in complete over-the-road transportation services. The Landstar multimodal group comprised of Landstar Express America, Inc. and Landstar Logistics, Inc. delivers excellence in expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9002 quality management system standards.

Landstar System, Inc. is headquartered in Jacksonville, Florida. The Landstar carrier group, comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc. and Landstar Ranger, Inc., delivers excellence in complete over-the-road transportation services. The Landstar multimodal group, comprised of Landstar Express America, Inc. and Landstar Logistics, Inc., delivers excellence in expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards. Landstar System, Inc.'s common stock trades on The NASDAQ Stock MarketĀ® under the symbol LSTR.