JACKSONVILLE, Fla., April 24, 2024 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ:LSTR) ("Landstar" or the "Company") today reported basic and diluted earnings per share ("EPS") of $1.32 in the 2024 first quarter on revenue of $1.171 billion. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.33 per share payable on May 24, 2024, to stockholders of record as of the close of business on May 8, 2024. "It's been a privilege to join Landstar and work alongside our customers, independent agents, BCOs, employees and the Board. The Landstar team performed admirably in a challenging freight environment as both the number of loads hauled via truck and revenue per load on loads hauled via truck exceeded the high-end of the Company's guidance issued in our 2023 fourth quarter earnings release," said Landstar President and Chief Executive Officer Frank Lonegro. "The Company is laser-focused on supporting our network of small business owners and executing on our strategic growth initiatives and technology enhancements. We are excited about the future, the new leadership structure of our sales organization and the strength of our balance sheet. Landstar is well positioned to capitalize when freight fundamentals improve. On tomorrow's earnings call, we look forward to discussing first quarter earnings and providing second quarter guidance, which will be included within the slide presentation that accompanies the call."   1Q 2024      1Q 2023   Revenue $ 1,171,043 $ 1,435,675   Gross profit $ 113,902 $ 152,948   Variable contribution $ 168,240 $ 208,706   Operating income $ 59,961 $ 101,284   Basic and diluted earnings per share $ 1.32 $ 2.17               (1)   Dollars above in thousands, except per share amounts (2)   Please refer to the Consolidated Statements of Income and Reconciliation of Gross Profit to Variable Contribution included below Truck transportation revenue hauled by independent business capacity owners ("BCOs") and truck brokerage carriers in the 2024 first quarter was $1,068.9 million, or 91% of revenue, compared to $1,323.7 million, or 92% of revenue, in the 2023 first quarter. Truckload transportation revenue hauled via van equipment in the 2024 first quarter was $628.3 million, compared to $755.1 million in the 2023 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2024 first quarter was $343.0 million, compared to $377.6 million in the 2023 first quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2024 first quarter was $72.0 million, compared to $159.5 million in the 2023 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $76.8 million, or 7% of revenue, in the 2024 first quarter, compared to $86.8 million, or 6% of revenue, in the 2023 first quarter. While the number of loads hauled via truck declined 13% and truck revenue per load declined 7% in the 2024 first quarter as compared to the 2023 first quarter, each performed slightly better than the high end of the Company's expectations as set forth in its previously issued guidance.   On a sequential basis as compared to the 2023 fourth quarter, the number of loads hauled via truck and truck revenue per load in the 2024 first quarter each outperformed historical, pre-pandemic patterns. Gross profit in the 2024 first quarter was $113.9 million and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2024 first quarter was $168.2 million. Gross profit in the 2023 first quarter was $152.9 million and variable contribution in the 2023 first quarter was $208.7 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2024 and 2023 first quarters are provided in the Company's accompanying financial disclosures. The Company's balance sheet continues to be very strong, with cash and short term investments of approximately $530 million as of March 30, 2024.   Trailing twelve month return on average shareholders' equity was 23%, and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 22%.  Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. To access the webcast, visit www.investor.landstar.com; click on "Investor Relations" and "Webcasts," then click on "Landstar's First Quarter 2024 Earnings Release Conference Call." About Landstar:Landstar System, Inc., is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR. Non-GAAP Financial Measures:In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company's financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company's results as compared to the results of peer companies; and (3) management considers this financial information in its decision making. Forward Looking Statements Disclaimer: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 and expectations. Terms such as "anticipates," "believes," "estimates," "intention," "expects," "plans," "predicts," "may," "should," "could," "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: the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company's largest such agent by revenue in the 2023 fiscal year; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; U.S. trade relationships; substantial industry competition; disruptions or failures in the Company's computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar's Form 10-K for the 2023 fiscal year, described in Item 1A Risk Factors, and in 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 the Company undertakes no obligation to publicly update or revise any forward-looking statements. Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited)                   Thirteen Weeks Ended       March 30,   April 1,         2024       2023               Revenue $ 1,171,043     $ 1,435,675   Investment income   3,412       1,368               Costs and expenses:         Purchased transportation   905,521       1,101,294     Commissions to agents   97,282       125,675     Other operating costs, net of gains on asset sales/dispositions   14,859       12,378     Insurance and claims   26,268       27,647     Selling, general and administrative   56,422       53,567     Depreciation and amortization   14,142       15,198                   Total costs and expenses   1,114,494       1,335,759               Operating income   59,961       101,284   Interest and debt (income) expense   (1,611 )     (726 )             Income before income taxes   61,572       102,010   Income taxes   14,476       23,815               Net income $ 47,096     $ 78,195               Basic and diluted earnings per share $ 1.32     $ 2.17               Average basic and diluted shares outstanding   35,750,000       35,982,000               Dividends per common share $ 0.33     $ 0.30               Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited)                                     March 30,   December 30,           2024       2023   ASSETS         Current assets:         Cash and cash equivalents $ 467,671     $ 481,043     Short-term investments   62,781       59,661     Trade accounts receivable, less allowance           of $11,764 and $11,738   723,841       743,762     Other receivables, including advances to independent           contractors, less allowance of $14,310 and $14,010   40,535       43,339     Other current assets   15,540       24,936