GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Landstar System Inc. Reports Operating Results (10-Q)

November 02, 2012 | About:
10qk

10qk

18 followers
Landstar System Inc. (LSTR) filed Quarterly Report for the period ended 2012-09-29.

Landstar System, Inc. has a market cap of $2.25 billion; its shares were traded at around $51.39 with a P/E ratio of 17.6 and P/S ratio of 0.9. The dividend yield of Landstar System, Inc. stocks is 0.5%. Landstar System, Inc. had an annual average earning growth of 9.4% over the past 10 years.

Highlight of Business Operations:

Revenue for the 2012 thirty-nine-week period was $2,102,164,000, an increase of $170,604,000, or 9%, compared to the 2011 thirty-nine-week period. Revenue increased $169,438,000, or 9%, at the transportation logistics segment. The increase in revenue at the transportation logistics segment was primarily attributable to an 8% increase in the number of loads hauled and an increased revenue per load of approximately 1%. Included in the 2012 and 2011 thirty-nine-week periods was $16,286,000 and $15,417,000, respectively, of transportation management fee revenue. Revenue at the insurance segment, representing reinsurance premiums from third party insurance companies that provide insurance programs to BCO Independent Contractors where all or a portion of the risk of loss is borne by the Company, was $26,689,000 and $25,523,000 for the 2012 and 2011 thirty-nine-week periods, respectively.

Truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers (together the third-party truck capacity providers) for the thirty-nine-week period ended September 29, 2012, was $1,943,641,000, or 92% of total revenue, and increased $175,663,000, or 10%, compared to the 2011 thirty-nine-week period. The number of loads hauled by third-party truck capacity providers in the 2012 thirty-nine-week period increased 8% compared to the 2011 thirty-nine-week period, and revenue per load on revenue hauled by third-party truck capacity providers increased 2% compared to the 2011 thirty-nine-week period. The increase in the number of loads hauled by third-party truck capacity providers was primarily attributable to increased loads hauled on unsided/platform trailing equipment and loads generated from the addition of new independent commission sales agents. The increase in revenue per load on revenue hauled by third-party truck capacity providers was primarily attributable to both an increase in the number of loads hauled on unsided/platform equipment, which has a higher revenue per load, and an increase in the revenue per load on loads hauled on unsided/platform equipment. Fuel surcharges on Truck Brokerage Carrier revenue identified separately in billings to customers and included as a component of Truck Brokerage Carrier revenue were $83,075,000 and $71,129,000 in the 2012 and 2011 periods, respectively. Fuel surcharges billed to customers on revenue hauled by BCO Independent Contractors are excluded from revenue.

Revenue for the 2012 thirteen-week period was $717,168,000, an increase of $33,155,000, or 5%, compared to the 2011 thirteen-week period. Revenue increased $32,665,000, or 5%, at the transportation logistics segment. The increase in revenue at the transportation logistics segment was primarily attributable to a 6% increase in the number of loads hauled, offset by decreased revenue per load of approximately 1%. Included in the 2012 and 2011 thirteen-week periods was $5,636,000 and $4,998,000, respectively, of transportation management fee revenue. Revenue at the insurance segment was $9,087,000 and $8,597,000 for the 2012 and 2011 thirteen-week periods, respectively.

Truck transportation revenue hauled by third-party truck capacity providers for the thirteen-week period ended September 29, 2012, was $663,461,000, or 93% of total revenue, and increased $37,622,000, or 6%, compared to the 2011 thirteen-week period. The number of loads hauled by third-party truck capacity providers in the 2012 thirteen-week period increased 7% compared to the 2011 thirteen-week period, while revenue per load on revenue hauled by third-party truck capacity providers decreased 1% compared to the 2011 thirteen-week period. The increase in the number of loads hauled by third-party truck capacity providers was primarily attributable to an increase in overall demand. Fuel surcharges on Truck Brokerage Carrier revenue identified separately in billings to customers and included as a component of Truck Brokerage Carrier revenue were $27,527,000 and $25,903,000 in the 2012 and 2011 periods, respectively.

Other operating costs were 5.7% and 5.8% of gross profit in the 2012 and 2011 thirteen-week periods, respectively. The decrease in other operating costs as a percentage of gross profit was primarily attributable to increased gains on sales of trailing equipment, a decreased provision for contractor bad debt and the effect of increased gross profit. Insurance and claims were 7.1% of gross profit in the 2012 period and 8.5% of gross profit in the 2011 period. The decrease in insurance and claims as a percentage of gross profit was primarily due to increased favorable development of prior year claims in the 2012 period. Selling, general and administrative costs were 33.2% of gross profit in the 2012 period and 35.4% of gross profit in the 2011 period. The decrease in selling, general and administrative costs as a percentage of gross profit was primarily attributable to a decreased provision for bonuses under the Companys incentive compensation plan, decreased legal fees and the effect of increased gross profit, partly offset by an increased provision for customer bad debt. Depreciation and amortization was 6.3% of gross profit in the 2012 period compared with 5.9% in the 2011 period. The increase in depreciation and amortization as a percentage of gross profit was primarily due to additions of trailing equipment that replaced older fully depreciated trailing equipment.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK