March 28, 2000 Landstar System, Inc. announced today the relocation of Landstar Ligon headquarters from Madisonville, Kentucky to Jacksonville, Florida. While the Landstar subsidiary will continue to operate a recruiting and orientation center in Madisonville, the move is expected to bring more than 150 new jobs to Jacksonville.
"Landstar Ligon has a rich history and legacy of solid performance in the transportation industry," said Landstar Chairman, President and CEO Jeff Crowe. "However, our Madisonville properties are old and out-dated and this relocation provides better positioning for shared opportunities in the future."
In its new location, the 65-year-old company will share Landstar's new five-story 180,900 square foot office building located in one of Jacksonville's fastest growing corridors. The offices currently house Landstar System, Inc. and its subsidiaries, Landstar Gemini, Landstar Express America, Landstar Logistics and Landstar Ranger. The close proximity creates greater access to Landstar's information technology and other corporate administrative functions.
"This is a positive step for Landstar Ligon and its business partners who will continue to benefit from the information technology resources and infrastructure in place in Jacksonville. The synergies made possible with this relocation should result in additional future operating margin expansion," said Crowe.
With this move, Landstar will operate from two strategic locations, the other at Landstar Inway headquarters in Rockford, Illinois. The two locations provide the Company with excellent geographical and marketing coverage of the country while providing critical information technology capabilities.
Landstar Ligon's final day of operation in Madisonville will be June 9, 2000. Meanwhile, the Company is presenting relocation packages to most of its Madisonville employees and working to assist them in their move. The remaining recruiting and orientation center will continue to identify and provide support for small business owners operating under the Landstar umbrella. The Company currently anticipates it will record a special one time pre-tax charge of approximately $3 million in the 2000 second quarter for the costs incurred in connection with this relocation. The precise amount of this charge will not be established until the completion of the 2000 second quarter.
This press release contains forward-looking statements, such as statements which 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's 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. Landstar's 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.'s common stock trades on the NASDAQ Stock Market® under the symbol LSTR.