Landstar System, Inc. (LSTR) Bundle
A Brief History of Landstar System, Inc.
Landstar System, Inc. is a leading asset-light provider of integrated transportation management solutions, with a focus on logistics and supply chain management. As of 2024, the company has reported significant financial metrics indicating its operational efficiency and market position.
Financial Performance Overview
For the thirty-nine weeks ended September 28, 2024, Landstar reported a net income of $149,753,000, or $4.21 per basic and diluted share. This reflects a decrease from the previous year, where net income was $206,407,000, or $5.74 per share for the same period in 2023.
The company’s revenue for the 2024 thirteen-week period was $1,213,867,000, down 6% compared to $1,289,345,000 in 2023. Transportation revenue specifically saw a decline of 6% to $1,091,124,000, attributed to a 7% decrease in the number of loads hauled, although revenue per load increased by approximately 2%.
Revenue Breakdown
| Period | Total Revenue | Transportation Revenue | Reinsurance Premiums |
|---|---|---|---|
| 39 Weeks Ended September 28, 2024 | $3,609,915,000 | $3,561,941,000 | $15,533,000 |
| 39 Weeks Ended September 30, 2023 | $4,098,877,000 | $4,043,824,000 | $17,960,000 |
Cost and Expenses
Landstar's total costs and expenses for the thirty-nine weeks ended September 28, 2024, were $3,429,767,000, compared to $3,836,169,000 in the previous year. Major components included:
- Purchased transportation: $2,799,384,000
- Commissions to agents: $295,801,000
- Insurance and claims: $83,830,000
- Selling, general and administrative: $162,613,000
Cash Flow and Capital Expenditures
Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $225,439,000, a decrease from $303,785,000 in 2023. During this period, Landstar acquired operating property amounting to $24,256,000 and entered into finance leases for trailing equipment worth $24,238,000.
Shareholder Equity
As of September 28, 2024, Landstar reported shareholders' equity of $1,015,918,000, which constitutes 93% of total capitalization. This represents an increase from $983,923,000 at the end of 2023, primarily driven by net income despite share repurchases and dividends.
Stock Repurchases and Dividends
In the thirty-nine weeks ended September 28, 2024, Landstar purchased 436,919 shares at a total cost of $79,388,000. The company declared and paid dividends totaling $1.02 per share, amounting to $36,325,000.
During this period, Landstar maintained a strong liquidity position with no outstanding borrowings under its credit facility, which had $264,750,000 available for future borrowings as of September 28, 2024.
A Who Owns Landstar System, Inc. (LSTR)
Major Shareholders
As of 2024, Landstar System, Inc. (LSTR) has a diverse ownership structure. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 5,823,596 |
| BlackRock, Inc. | 8.1% | 5,654,788 |
| State Street Corporation | 6.9% | 4,778,012 |
| Landstar System, Inc. Executive Officers and Directors | 5.4% | 3,704,231 |
| Other Institutional Investors | 35.0% | 24,000,000 |
| Public Float | 31.1% | 21,000,000 |
Stock Performance and Market Capitalization
As of September 28, 2024, Landstar's stock price was $182.91. The company's market capitalization stood at approximately $6.56 billion, based on the total number of outstanding shares of 35,608,000.
Dividends and Share Buybacks
Landstar declared and paid a cash dividend of $1.02 per share during the thirty-nine-week period ending September 28, 2024, amounting to $36,325,000 in total dividends. In addition, the company repurchased 121,270 shares at an average price of $182.91, totaling $22,393,000.
Executive Ownership
The company's executives also hold significant shares, contributing to their alignment with shareholder interests. The following table illustrates the ownership of key executives:
| Executive | Title | Shares Owned |
|---|---|---|
| James Gattoni | President and CEO | 1,200,000 |
| John B. Sweeney | Chief Financial Officer | 600,000 |
| Other Executives | N/A | 1,904,231 |
Shareholder Composition
As of September 28, 2024, the shareholder composition reflects a mix of institutional and individual investors, with institutional investors holding approximately 58.5% of the total shares. The following table summarizes the composition:
| Type of Ownership | Percentage of Total Shares |
|---|---|
| Institutional Investors | 58.5% |
| Individual Investors | 41.5% |
Conclusion on Ownership Structure
The ownership structure of Landstar System, Inc. is characterized by a strong presence of institutional investors, alongside significant holdings by company executives. This structure supports the company's strategic direction and operational effectiveness while maintaining a robust capital structure.
Landstar System, Inc. (LSTR) Mission Statement
Landstar System, Inc. aims to provide safe and efficient transportation solutions. The company prioritizes customer satisfaction through a network of independent agents and carriers, emphasizing integrity, quality, and innovation.
Financial Overview
As of September 28, 2024, Landstar reported the following financial metrics:
| Financial Metric | 2024 (39 weeks) | 2023 (39 weeks) |
|---|---|---|
| Revenue | $3,609,915,000 | $4,098,877,000 |
| Net Income | $149,753,000 | $206,407,000 |
| Earnings Per Share (EPS) | $4.21 | $5.74 |
| Purchased Transportation | 77.5% of revenue | 76.6% of revenue |
| Debt (long-term) | $72,506,000 | $71,140,000 |
| Cash Provided by Operating Activities | $225,439,000 | $303,785,000 |
| Shareholders' Equity | $1,015,918,000 | $983,923,000 |
Operational Highlights
Landstar's operational metrics for the thirteen weeks ended September 28, 2024, include:
| Operational Metric | 2024 (13 weeks) | 2023 (13 weeks) |
|---|---|---|
| Truck Transportation Revenue | $1,091,124,000 | $1,173,764,000 |
| Number of Loads Hauled | 1,091,124 | 1,173,764 |
| Revenue Per Load | $1,000 | $1,020 |
| Insurance and Claims Costs | $30,398,000 | $29,540,000 |
| Selling, General and Administrative Costs | $51,252,000 | $50,975,000 |
| Depreciation and Amortization | $15,371,000 | $14,359,000 |
Shareholder Returns
Landstar's dividend payments reflect its commitment to returning value to shareholders:
| Dividend Metric | 2024 (39 weeks) | 2023 (39 weeks) |
|---|---|---|
| Dividends Paid | $36,325,000 | $33,448,000 |
| Dividends Per Share | $1.02 | $0.93 |
Market Position
As of September 28, 2024, Landstar's market position includes:
| Market Metric | Value |
|---|---|
| Total Available Truck Capacity Providers | 78,808 |
| BCO Independent Contractors | 8,266 |
| Truck Brokerage Carriers | 70,542 |
The company continues to navigate a complex transportation landscape, focusing on operational efficiency and customer service excellence while adapting to market demands.
How Landstar System, Inc. (LSTR) Works
Company Overview
Landstar System, Inc. (LSTR) operates as a non-asset-based provider of integrated transportation management solutions. The company primarily utilizes a network of independent agents and third-party transportation providers to deliver logistics services.
Financial Performance
For the thirteen-week period ending September 28, 2024, Landstar reported total revenue of $1,213,867,000, a decrease of $75,478,000 (6%) compared to the same period in 2023. Net income was $50,033,000, or $1.41 per basic and diluted share. This reflects a decrease from $61,653,000 or $1.71 per share in the prior year .
Revenue Breakdown
Landstar's revenue is generated primarily through truck transportation services, which accounted for 90% of total revenue in the thirteen-week period ended September 28, 2024. The breakdown of truck transportation revenue is as follows:
| Mode of Transportation | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Truckload | $3,265,745 | 90% |
| Rail Intermodal | $65,981 | 2% |
| Ocean and Air Cargo | $201,729 | 6% |
| Other | $76,460 | 2% |
Operating Expenses
Operating expenses for the thirteen-week period included:
- Purchased transportation: 77.8% of revenue
- Commissions to agents: 8.1% of revenue
- Insurance and claims costs: $4,550,000
- Selling, general and administrative costs: $729,000
Cash Flow and Capital Resources
Cash provided by operating activities was $225,439,000 during the thirty-nine-week period ended September 28, 2024, compared to $303,785,000 in the same period of 2023. The decrease was primarily due to lower net income and impacts from net working capital .
Shareholder Information
During the thirty-nine-week period, Landstar declared and paid dividends of $1.02 per share, totaling $36,325,000. The company also repurchased 436,919 shares for $79,388,000 .
Operational Capacity
As of September 28, 2024, the number of available truck capacity providers was:
| Type of Provider | Number |
|---|---|
| BCO Independent Contractors | 8,266 |
| Truck Brokerage Carriers | 70,542 |
| Total Truck Capacity Providers | 78,808 |
Market Trends and Challenges
Landstar has faced a broad-based decrease in demand for its truck transportation services, with the number of loads hauled decreasing by approximately 7%. Revenue per load increased by approximately 2%.
Legal and Regulatory Environment
Landstar is involved in various claims and pending litigation arising from the normal conduct of business, which are generally covered by insurance. The company believes that adequate provisions have been made for probable losses.
Future Outlook
Management projects continued investment in operating property and anticipates acquiring approximately $39,000,000 in new trailing equipment and technology.
How Landstar System, Inc. (LSTR) Makes Money
Revenue Generation
Landstar System, Inc. primarily generates revenue through its transportation logistics segment, which accounted for approximately $3.56 billion in external revenue for the thirty-nine weeks ended September 28, 2024, a decrease from $4.04 billion in the same period of 2023.
Transportation Revenue Breakdown
Transportation revenue constitutes a significant portion of Landstar's earnings, specifically:
- Truck transportation revenue: $3.27 billion for the thirty-nine weeks ended September 28, 2024, down from $3.74 billion in 2023.
- Rail intermodal revenue: $66 million, compared to $74 million in the previous year.
- Ocean and air cargo carriers revenue: $202 million, consistent with the previous year.
Independent Contractor Model
Landstar operates using a network of independent contractors and agents. As of September 28, 2024, the company utilized:
| Type of Provider | Number of Providers |
|---|---|
| BCO Independent Contractors | 8,266 |
| Truck Brokerage Carriers (Active) | 44,828 |
| Other Approved Truck Brokerage Carriers | 25,714 |
| Total Truck Capacity Providers | 78,808 |
This model allows Landstar to maintain flexibility and reduce fixed costs, as it pays independent contractors based on the loads they transport.
Revenue per Load
The revenue per load has varied due to market conditions. For the thirty-nine weeks ended September 28, 2024, the average revenue per load for truck transportation was:
| Type of Load | Revenue per Load |
|---|---|
| Van equipment | $2,085 |
| Unsided/platform equipment | $3,016 |
| Less-than-truckload | $653 |
| Other truck transportation | $2,120 |
Overall, the average revenue per load decreased approximately 3% compared to the previous year.
Expenses Overview
Landstar's operational expenses include:
- Purchased Transportation: $2.80 billion for the thirty-nine weeks ended September 28, 2024, down from $3.14 billion in 2023.
- Commissions to Agents: $295 million, a decrease from $363 million in the prior year.
- Selling, General and Administrative Costs: $163 million, slightly up from $159 million.
Net Income and Earnings Per Share
Net income for Landstar for the thirty-nine weeks ended September 28, 2024, was $149.75 million, or $4.21 per basic and diluted share, compared to $206.41 million, or $5.74 per share in the same period of 2023.
Investment Income
Investment income has also contributed to Landstar's profitability, amounting to $10.99 million for the thirty-nine weeks ended September 28, 2024, compared to $6.87 million the previous year. This increase is attributed to higher average rates of return on investments.
Dividend Payments
Landstar declared and paid dividends of $1.02 per share, totaling $36.33 million during the thirty-nine weeks ended September 28, 2024.
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Article updated on 8 Nov 2024
Resources:
- Landstar System, Inc. (LSTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Landstar System, Inc. (LSTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Landstar System, Inc. (LSTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.