Landstar System Inc. Reports Operating Results (10-Q)
Landstar System Inc. has a market cap of $2.17 billion; its shares were traded at around $45.29 with a P/E ratio of 22.2 and P/S ratio of 0.9. The dividend yield of Landstar System Inc. stocks is 0.4%. Landstar System Inc. had an annual average earning growth of 9.5% over the past 10 years.
Highlight of Business Operations: The transportation logistics segment provides a wide range of transportation services and supply chain solutions. Transportation services offered by the Company include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, project cargo and customs brokerage. Supply chain solutions are based on advanced technology solutions offered by the Company and include integrated multi-modal solutions, outsourced logistics, supply chain engineering and warehousing. In the Companys 2009 fiscal third quarter, the Company acquired A3 Integration, LLC and its subsidiaries through A3i Acquisition LLC (A3i Acquisition), an entity in which the Company owned 100% of the non-voting, preferred interests and, from the date of acquisition to January 2011, 75% of the voting, common equity interests. In January 2011, the Company purchased the remaining 25% of the voting, common equity interests in A3i Acquisition. Industries serviced by the transportation logistics segment include automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Freight transportation services are typically charged to customers on a per shipment basis for the physical transportation of freight. Supply chain solution customers are generally charged fees for the services provided. Revenue recognized by the transportation logistics segment when providing capacity to customers to haul their freight is referred to herein as transportation services revenue and revenue for freight management services recognized on a fee-for-service basis is referred to herein as transportation management fees. During the twenty six weeks ended June 25, 2011, transportation services revenue hauled by BCO Independent Contractors, Truck Brokerage Carriers, rail intermodal, air cargo carriers and ocean cargo carriers represented 55%, 38%, 3%, 1%, and 2%, respectively, of the Companys transportation logistics segment revenue. Transportation management fees represented 1% of the Companys transportation logistics segment revenue in the twenty-six-week period ended June 25, 2011.
Revenue for the 2011 twenty-six-week period was $1,247,547,000, an increase of $57,738,000, or 5%, compared to the 2010 twenty-six-week period. Revenue increased $57,787,000, or 5%, at the transportation logistics segment. The increase in revenue at the transportation logistics segment was primarily attributable to a higher revenue per load of approximately 11%, partially offset by a 5% decrease in the number of loads hauled. Included in the 2011 and 2010 twenty-six-week periods were transportation management fees of $10,419,000 and $8,992,000, respectively.
Truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers (together the third-party truck capacity providers), which represented 92% of total revenue for the twenty-six-week period ended June 25, 2011, was $1,142,139,000 for the twenty-six-week period ended June 25, 2011, an increase of $44,240,000, or 4%, compared to the 2010 twenty-six-week period. The number of loads hauled by third-party truck capacity providers in the 2011 twenty-six-week period decreased 5% compared to the 2010 twenty-six-week period, while revenue per load increased 10% over the same period. The decrease in the number of loads hauled by third-party truck capacity providers was primarily attributable to the anticipated reduction of freight hauled on behalf of one customer in the Companys less-than-truckload substitute line haul service offering. Less-than-truckload substitute line haul revenue was $38,143,000 and $147,751,000 in the 2011 and 2010 twenty-six-week pe
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