Landstar System Reports Record First Quarter Earnings Per Diluted Share of $.96

Apr 19, 2001, 01:00 ET from Landstar System, Inc.

    JACKSONVILLE, Fla., April 19 /PRNewswire/ --
 Landstar System, Inc. (Nasdaq:   LSTR) reported 2001 first quarter net income of
 $8.4 million, or $.96 per diluted share, compared with net income of
 $8.3 million, or $.89 per diluted share, in the 2000 first quarter.  Operating
 income and operating margin in the 2001 first quarter were $15.8 and 4.8%,
 respectively, compared with operating income and operating margin of
 $15.5 million and 4.7% in the 2000 first quarter.  Revenue was a record
 $331 million for the thirteen weeks ended March 31, 2001, compared with
 revenue of $327 million for the same time period in 2000.  In the 2001 and
 2000 first quarters, the carrier group invoiced customers $11.5 million and
 $3.8 million, respectively, of fuel surcharges that were passed 100% to its
 business capacity owners and excluded from revenue.
     "Despite a slowing U.S. economy, Landstar was able to achieve record
 results in the 2001 first quarter," said Landstar Chairman, President and CEO
 Jeff Crowe.  "Landstar ended the first quarter with 100 fewer trucks than it
 had at the beginning of the year.  Truck terminations during the final four
 weeks of the 2001 first quarter were approximately the same as the 2000 first
 quarter.  However, new trucks recruited were less than the prior year and as
 such, less than what was anticipated.  The decreased March truck count more
 than offset the net truck count gains in January and February."
     "It is a difficult operating environment for Business Capacity Owners,"
 said Crowe.  "At this point, I see Landstar gradually gaining momentum as the
 year progresses and replacing the lost trucks by year end."
     "The trailing 12 months return on average equity for the period ended
 March 31, 2001, remained high at 41%.  I currently anticipate the 2001 year in
 the range of $5.70 to $6.00 per diluted share.  Landstar continues to perform
 well, demonstrating its ability to generate both good earnings and cash flow
 in a difficult operating environment."
     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
 Web site 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," "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
 complete over-the-road transportation services.  The Landstar 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.
 
                                (tables follow)
 
 
                               Landstar System, Inc.
                         Consolidated Statements of Income
                  (Dollars in thousands, except per share amounts)
                                    (Unaudited)
 
                                                      Fiscal Quarter Ended
                                                   March 31,         March 25,
                                                     2001               2000
 
     Revenue                                       $331,281           $327,006
     Investment income                                1,056                930
 
     Costs and expenses:
       Purchased transportation                     244,155            240,990
       Commissions to agents                         26,117             25,904
       Other operating costs                          8,103              7,447
       Insurance and claims                           7,803              9,104
       Selling, general and
        administrative                               26,862             25,948
       Depreciation and amortization                  3,490              3,054
 
 
          Total costs and expenses                  316,530            312,447
 
     Operating income                                15,807             15,489
     Interest and debt expense                        2,222              1,705
 
     Income before income taxes                      13,585             13,784
     Income taxes                                     5,231              5,445
 
     Net income                                      $8,354             $8,339
 
     Earnings per common share                        $0.98              $0.91
 
     Diluted earnings per share                       $0.96              $0.89
 
     Average number of shares
      outstanding:
       Earnings per common share                  8,512,000          9,169,000
       Diluted earnings per share                 8,730,000          9,371,000
 
 
                               Landstar System, Inc.
                            Selected Segment Information
                               (Dollars in thousands)
                                    (Unaudited)
 
 
                                                     Fiscal Quarter Ended
                                                   March 31,         March 25,
                                                     2001               2000
 
      External Revenue
 
      Carrier segment                              $263,385           $255,805
      Multimodal segment                             61,829             65,198
      Insurance segment                               6,067              6,003
 
         External revenue                          $331,281           $327,006
 
 
 
      Operating Income
 
      Carrier segment                               $17,034            $18,712
      Multimodal segment                                586              1,782
      Insurance segment                               7,196              4,799
      Other                                          (9,009)            (9,804)
 
         Operating income                           $15,807            $15,489
 
 
 
                               Landstar System, Inc.
                            Consolidated Balance Sheets
                 (Dollars in thousands, except per share amounts)
                                    (Unaudited)
 
 
                                                  March 31,        December 30,
                                                     2001              2000
     ASSETS
     Current assets:
        Cash                                        $27,845           $32,926
        Short-term investments                        3,017             1,500
        Trade accounts receivable, less
         allowance of $4,521 and $4,450             187,082           195,398
        Other receivables, including
         advances to independent
          contractors, less allowance of
           $6,102 and $5,089                         17,984            13,122
        Prepaid expenses and other current
         assets                                       4,718             6,062
          Total current assets                      240,646           249,008
 
     Operating property, less accumulated
      depreciation and amortization of $38,406
      and $37,497                                    73,896            76,049
     Goodwill, less accumulated
      amortization of $9,297
      and $8,993                                     32,170            32,474
     Deferred income taxes and other
      assets                                          9,542            12,831
     Total assets                                  $356,254          $370,362
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities:
        Cash overdraft                              $15,597           $17,496
        Accounts payable                             60,627            63,002
        Current maturities of long-term debt          9,699             9,766
        Insurance claims                             21,540            23,364
        Accrued compensation                          2,994             8,277
        Other current liabilities                    33,705            32,385
          Total current liabilities                 144,162           154,290
 
     Long-term debt, excluding current
      maturities                                     74,462            84,877
     Insurance claims                                21,263            23,336
 
     Shareholders' equity:
        Common stock, $.01 par value,
         authorized 20,000,000
         shares, issued 13,260,374 and
         13,233,874 shares                              133               132
        Additional paid-in capital                   72,076            71,325
        Retained earnings                           223,722           215,368
        Cost of 4,741,841 shares of common
          stock in treasury                        (172,727)         (172,727)
        Notes receivable arising from
         exercise of stock options                   (6,837)           (6,239)
          Total shareholders' equity                116,367           107,859
     Total liabilities and shareholders'
      equity                                       $356,254          $370,362
 
 

SOURCE Landstar System, Inc.
    JACKSONVILLE, Fla., April 19 /PRNewswire/ --
 Landstar System, Inc. (Nasdaq:   LSTR) reported 2001 first quarter net income of
 $8.4 million, or $.96 per diluted share, compared with net income of
 $8.3 million, or $.89 per diluted share, in the 2000 first quarter.  Operating
 income and operating margin in the 2001 first quarter were $15.8 and 4.8%,
 respectively, compared with operating income and operating margin of
 $15.5 million and 4.7% in the 2000 first quarter.  Revenue was a record
 $331 million for the thirteen weeks ended March 31, 2001, compared with
 revenue of $327 million for the same time period in 2000.  In the 2001 and
 2000 first quarters, the carrier group invoiced customers $11.5 million and
 $3.8 million, respectively, of fuel surcharges that were passed 100% to its
 business capacity owners and excluded from revenue.
     "Despite a slowing U.S. economy, Landstar was able to achieve record
 results in the 2001 first quarter," said Landstar Chairman, President and CEO
 Jeff Crowe.  "Landstar ended the first quarter with 100 fewer trucks than it
 had at the beginning of the year.  Truck terminations during the final four
 weeks of the 2001 first quarter were approximately the same as the 2000 first
 quarter.  However, new trucks recruited were less than the prior year and as
 such, less than what was anticipated.  The decreased March truck count more
 than offset the net truck count gains in January and February."
     "It is a difficult operating environment for Business Capacity Owners,"
 said Crowe.  "At this point, I see Landstar gradually gaining momentum as the
 year progresses and replacing the lost trucks by year end."
     "The trailing 12 months return on average equity for the period ended
 March 31, 2001, remained high at 41%.  I currently anticipate the 2001 year in
 the range of $5.70 to $6.00 per diluted share.  Landstar continues to perform
 well, demonstrating its ability to generate both good earnings and cash flow
 in a difficult operating environment."
     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
 Web site 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," "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
 complete over-the-road transportation services.  The Landstar 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.
 
                                (tables follow)
 
 
                               Landstar System, Inc.
                         Consolidated Statements of Income
                  (Dollars in thousands, except per share amounts)
                                    (Unaudited)
 
                                                      Fiscal Quarter Ended
                                                   March 31,         March 25,
                                                     2001               2000
 
     Revenue                                       $331,281           $327,006
     Investment income                                1,056                930
 
     Costs and expenses:
       Purchased transportation                     244,155            240,990
       Commissions to agents                         26,117             25,904
       Other operating costs                          8,103              7,447
       Insurance and claims                           7,803              9,104
       Selling, general and
        administrative                               26,862             25,948
       Depreciation and amortization                  3,490              3,054
 
 
          Total costs and expenses                  316,530            312,447
 
     Operating income                                15,807             15,489
     Interest and debt expense                        2,222              1,705
 
     Income before income taxes                      13,585             13,784
     Income taxes                                     5,231              5,445
 
     Net income                                      $8,354             $8,339
 
     Earnings per common share                        $0.98              $0.91
 
     Diluted earnings per share                       $0.96              $0.89
 
     Average number of shares
      outstanding:
       Earnings per common share                  8,512,000          9,169,000
       Diluted earnings per share                 8,730,000          9,371,000
 
 
                               Landstar System, Inc.
                            Selected Segment Information
                               (Dollars in thousands)
                                    (Unaudited)
 
 
                                                     Fiscal Quarter Ended
                                                   March 31,         March 25,
                                                     2001               2000
 
      External Revenue
 
      Carrier segment                              $263,385           $255,805
      Multimodal segment                             61,829             65,198
      Insurance segment                               6,067              6,003
 
         External revenue                          $331,281           $327,006
 
 
 
      Operating Income
 
      Carrier segment                               $17,034            $18,712
      Multimodal segment                                586              1,782
      Insurance segment                               7,196              4,799
      Other                                          (9,009)            (9,804)
 
         Operating income                           $15,807            $15,489
 
 
 
                               Landstar System, Inc.
                            Consolidated Balance Sheets
                 (Dollars in thousands, except per share amounts)
                                    (Unaudited)
 
 
                                                  March 31,        December 30,
                                                     2001              2000
     ASSETS
     Current assets:
        Cash                                        $27,845           $32,926
        Short-term investments                        3,017             1,500
        Trade accounts receivable, less
         allowance of $4,521 and $4,450             187,082           195,398
        Other receivables, including
         advances to independent
          contractors, less allowance of
           $6,102 and $5,089                         17,984            13,122
        Prepaid expenses and other current
         assets                                       4,718             6,062
          Total current assets                      240,646           249,008
 
     Operating property, less accumulated
      depreciation and amortization of $38,406
      and $37,497                                    73,896            76,049
     Goodwill, less accumulated
      amortization of $9,297
      and $8,993                                     32,170            32,474
     Deferred income taxes and other
      assets                                          9,542            12,831
     Total assets                                  $356,254          $370,362
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities:
        Cash overdraft                              $15,597           $17,496
        Accounts payable                             60,627            63,002
        Current maturities of long-term debt          9,699             9,766
        Insurance claims                             21,540            23,364
        Accrued compensation                          2,994             8,277
        Other current liabilities                    33,705            32,385
          Total current liabilities                 144,162           154,290
 
     Long-term debt, excluding current
      maturities                                     74,462            84,877
     Insurance claims                                21,263            23,336
 
     Shareholders' equity:
        Common stock, $.01 par value,
         authorized 20,000,000
         shares, issued 13,260,374 and
         13,233,874 shares                              133               132
        Additional paid-in capital                   72,076            71,325
        Retained earnings                           223,722           215,368
        Cost of 4,741,841 shares of common
          stock in treasury                        (172,727)         (172,727)
        Notes receivable arising from
         exercise of stock options                   (6,837)           (6,239)
          Total shareholders' equity                116,367           107,859
     Total liabilities and shareholders'
      equity                                       $356,254          $370,362
 
 SOURCE  Landstar System, Inc.