February 6, 2003 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported 2002 fourth quarter net income of $14.5 million, or $.88 per diluted share, compared to net income of $11.6 million, or $.70 per diluted share, in the 2001 fourth quarter. The 2001 period included $305,000 of goodwill amortization, excluding this charge net income would have been $11.9 million, or $.72 per diluted share. Revenue was a record $394.0 million for the thirteen-week period ended December 28, 2002, compared with $347.8 million for the thirteen-week period ended December 29, 2001. Landstar's carrier group of companies generated $299.4 million of revenue in the 2002 fourth quarter compared with $278.2 million in the 2001 fourth quarter. Landstar's multimodal services group of companies generated revenue of $87.7 million in the 2002 fourth quarter compared with $63.6 million in the 2001 fourth quarter. Operating margin was 6.1 percent in the 2002 fourth quarter compared with 5.8 percent, 5.9 percent exclusive of goodwill amortization, in the 2001 fourth quarter.
Net income for the 2002 fiscal year was a record $49.2 million, or $2.94 per diluted share, compared to net income of $42.8 million, or $2.50 per diluted share, in the prior year. The 2001 fiscal year included $1,216,000 of goodwill amortization, excluding this charge net income would have been $44.0 million, or $2.57 per diluted share. Revenue in the 2002 fiscal year was a record $1.507 billion, compared to revenue of $1.393 billion in the 2001 year. Landstar's carrier group of companies generated $1.178 billion of revenue in the 2002 full year compared with $1.098 billion in 2001.
Landstar's multimodal services group of companies generated $301 million of revenue in the 2002 fiscal year compared with $271 million in 2001.
"I am very pleased with Landstar's 2002 fourth quarter performance," said Landstar Chairman and CEO, Jeff Crowe. "Consolidated revenue increased by more than 13 percent to the highest fourth quarter revenue in Landstar history. Compared to the 2001 fourth quarter, consolidated brokerage revenue increased 34 percent, rail intermodal revenue more than doubled and revenue hauled by Landstar BCOs increased over 3 percent. During the 2002 fourth quarter, tractors supplied by business capacity owners increased to 8,402. More importantly, we continued to execute our strategy of increasing revenue by servicing customers through the utilization of various sources of safe capacity," Crowe said.
"Trailing twelve-month return on average equity remained high at 37 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was above 22 percent. During 2002, we reduced debt by approximately $25 million, purchased 554,879 shares of common stock at a total cost of $26,306,000 and ended the year with over $68 million in cash and short-term investments. Shareholder's equity represented 66 percent of capitalization, up from 54 percent at the end of 2001," Crowe said. "Our variable cost business model continues to strengthen our already solid financial position. The Company has the ability to purchase an additional 445,121 shares of its common stock under its authorized share repurchase program."
"As reported by FIRST CALL, the current ranges of analysts' earnings estimates for the first quarter and full 2003 year are $.57 to $.65 per diluted share and $3.15 to $3.45 per diluted share, respectively," said Crowe. "Based upon the level of business activity experienced in the fourth quarter, I anticipate earnings for both periods to be within the current ranges of analysts' estimates."
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 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", "expect", "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 safe and complete over-the-road transportation services. The Landstar multimodal group comprised of Landstar Express America, Inc. and Landstar Logistics, Inc. delivers excellence in safe, expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards.