October 12, 2000 Jacksonville, FL - Landstar System, Inc. (NASDAQ-AMEX: LSTR) reported 2000 third quarter net income excluding a previously announced one-time, $2.2 million pre-tax, non-recurring charge for the withdrawal from a union-sponsored pension plan of $12.9 million, or $1.45 per diluted share, compared with net income of $12.1 million, or $1.20 per diluted share, in the 1999 third quarter. Including the one-time charge for the withdrawal liability, net income amounted to $11.5 million, or $1.30 per diluted share in the 2000 third quarter. Operating margin excluding the non-recurring charge was 6.7 percent in the 2000 third quarter compared to 6.2 percent in the 1999 third quarter. Revenue was $352.4 million for the quarter ended September 23, 2000 versus revenue of $351.5 million for the quarter ended September 25, 1999.
Excluding all non-recurring charges, net income for the 39 weeks ended September 23, 2000 was $32.5 million, or $3.56 per diluted share, compared with net income of $30.3 million, or $2.95 per diluted share, for the 39 weeks ended September 25, 1999. Including the non-recurring charges, net income for the 39-week period ended September 23, 2000 was $29.3 million, or $3.21 per diluted share. The operating margin excluding the non-recurring charges for the 2000 39-week period was 5.8 percent compared to 5.3 percent in 1999. Revenue was $1.038 billion in the 2000 39 weeks compared with revenue of $1.008 billion in the 1999 39 weeks.
"Landstar continued to perform well in the 2000 third quarter," said Landstar Chairman, President and CEO, Jeff Crowe. "Rising fuel prices for our business capacity owners and a softening economy provided a challenging operating environment."
"Despite those challenges and reduced truck count, Landstar generated $352.4 million in revenue, improved its operating margin, excluding the one-time charge for the withdrawal liability, to 6.7 percent and earned $1.45 per diluted share excluding the one-time charge. The 2000 third quarter revenue was negatively impacted by lower truck count at Landstar Ligon due to its relocation and operational restructuring in 2000."
"At September 23, 2000, Landstar truck count was 8,607 versus 8,563 at June 24, 2000," Crowe said. "With the restructuring of Landstar Ligon largely completed, I anticipate truck count will continue to grow. Landstar's 2000 third quarter results continue to demonstrate the advantages of its variable cost, non-asset based business model."
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. StreetFusion.com and StreetEvents.com will also carry the broadcast live.
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.
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