JACKSONVILLE, Fla., Oct. 11 /PRNewswire-FirstCall/ -- Landstar System, Inc. (Nasdaq: LSTR), a non-asset based provider of integrated supply chain solutions delivering safe, specialized transportation, warehousing and logistics services, today announced that it has agreed to buy-out all future contingent payment obligations to the prior owner of NLM for $3.8 million.
In July 2009, Landstar acquired National Logistics Management Co. (NLM), a technology-based supply chain solutions provider. Under the terms of the purchase agreement between the Company and the prior owner of NLM, Landstar agreed to pay additional purchase price to the prior owner contingent upon the achievement by NLM of certain levels of earnings through 2014. Under the terms of the buy-out agreement, Landstar and the prior owner of NLM have agreed to extinguish all of the Company's contingent payment obligations under the purchase agreement in exchange for a total payment by Landstar to the prior owner of $3.8 million.
The $3.8 million one-time charge will be reflected in the Company's 2010 third quarter results to be announced on Thursday, October 14, 2010. The charge is expected to reduce the Company's 2010 third quarter diluted earnings per share by $0.05.
The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are "forward-looking statements". This press release contains forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies, expectations and intentions. Terms such as "anticipates," "believes," "estimates," "intention," "plans," "predicts," "may," "should," "will," the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or workers' compensation claims; unfavorable development of existing claims; dependence on independent sales agents; dependence on third-party capacity providers; disruptions or failures in our computer systems; a downturn in domestic or international economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar's Form 10K for the 2009 fiscal year, described in Item 1A Risk Factors, and other SEC filings from time-to-time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.
Landstar System, Inc. is a non-asset based provider of integrated supply chain solutions. Landstar delivers safe, specialized transportation, warehousing and logistics services to a broad range of customers worldwide utilizing a network of agents, third-party capacity owners and employees. All Landstar transportation companies are certified to ISO 9001:2008 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market(R) under the symbol LSTR.
SOURCE Landstar System, Inc.