☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 06-1313069 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock | LSTR | NASDAQ |
Large accelerated filer | ☑ | Accelerated filer |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
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June 29, 2019 | December 29, 2018 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 250,212 | $ | 199,736 | ||||
Short-term investments | 35,138 | 40,058 | ||||||
Trade accounts receivable, less allowance of $6,744 and $6,413 | 594,122 | 691,604 | ||||||
Other receivables, including advances to independent contractors, less allowance of $7,729 and $6,216 | 27,212 | 23,744 | ||||||
Other current assets | 32,619 | 16,287 | ||||||
Total current assets | 939,303 | 971,429 | ||||||
Operating property, less accumulated depreciation and amortization of $264,910 and $250,153 | 269,246 | 284,032 | ||||||
Goodwill | 38,407 | 38,232 | ||||||
Other assets | 101,737 | 86,871 | ||||||
Total assets | $ | 1,348,693 | $ | 1,380,564 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Cash overdraft | $ | 43,620 | $ | 55,339 | ||||
Accounts payable | 285,569 | 314,134 | ||||||
Current maturities of long-term debt | 39,194 | 43,561 | ||||||
Insurance claims | 41,254 | 40,176 | ||||||
Accrued compensation | 11,372 | 29,489 | ||||||
Contractor escrow | 25,530 | 25,202 | ||||||
Other current liabilities | 27,711 | 27,917 | ||||||
Total current liabilities | 474,250 | 535,818 | ||||||
Long-term debt, excluding current maturities | 65,573 | 84,864 | ||||||
Insurance claims | 31,016 | 30,429 | ||||||
Deferred income taxes and other noncurrent liabilities | 49,554 | 40,320 | ||||||
Equity | ||||||||
Landstar System, Inc. and subsidiary shareholders’ equity | ||||||||
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,064,877 and 67,870,962 shares | 681 | 679 | ||||||
Additional paid-in capital | 224,550 | 226,852 | ||||||
Retained earnings | 1,952,439 | 1,841,279 | ||||||
Cost of 28,435,182 and 27,755,001 shares of common stock in treasury | (1,446,425 | ) | (1,376,111 | ) | ||||
Accumulated other comprehensive loss | (2,945 | ) | (5,875 | ) | ||||
Total Landstar System, Inc. and subsidiary shareholders’ equity | 728,300 | 686,824 | ||||||
Noncontrolling interest | — | 2,309 | ||||||
Total equity | 728,300 | 689,133 | ||||||
Total liabilities and equity | $ | 1,348,693 | $ | 1,380,564 |
June 27, 2020 | December 28, 2019 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 245,471 | $ | 319,515 | ||||
Short-term investments | 36,274 | 32,901 | ||||||
Trade accounts receivable, less allowance of $8,580 and $7,284 | 489,182 | 588,549 | ||||||
Other receivables, including advances to independent contractors, less allowance of $9,241 and $7,667 | 27,861 | 35,553 | ||||||
Other current assets | 41,564 | 21,370 | ||||||
Total current assets | 840,352 | 997,888 | ||||||
Operating property, less accumulated depreciation and amortization of $288,055 and $280,849 | 284,794 | 285,855 | ||||||
Goodwill | 40,071 | 38,508 | ||||||
Other assets | 106,893 | 105,460 | ||||||
Total assets | $ | 1,272,110 | $ | 1,427,711 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Cash overdraft | $ | 35,534 | $ | 53,878 | ||||
Accounts payable | 273,324 | 271,996 | ||||||
Current maturities of long-term debt | 38,219 | 42,632 | ||||||
Insurance claims | 53,764 | 44,532 | ||||||
Dividends payable | — | 78,947 | ||||||
Contractor escrow | 25,774 | 24,902 | ||||||
Other current liabilities | 46,845 | 36,017 | ||||||
Total current liabilities | 473,460 | 552,904 | ||||||
Long-term debt, excluding current maturities | 60,152 | 70,212 | ||||||
Insurance claims | 34,762 | 33,575 | ||||||
Deferred income taxes and other noncurrent liabilities | 54,615 | 49,551 | ||||||
Shareholders’ Equity | ||||||||
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,176,787 and 68,083,419 shares | 682 | 681 | ||||||
Additional paid-in capital | 225,332 | 226,123 | ||||||
Retained earnings | 2,012,173 | 1,962,161 | ||||||
Cost of 29,797,328 and 28,609,926 shares of common stock in treasury | (1,581,921 | ) | (1,465,284 | ) | ||||
Accumulated other comprehensive loss | (7,145 | ) | (2,212 | ) | ||||
Total shareholders’ equity | 649,121 | 721,469 | ||||||
Total liabilities and shareholders’ equity | $ | 1,272,110 | $ | 1,427,711 | ||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Revenue | $ | 2,078,040 | $ | 2,230,712 | $ | 1,045,040 | $ | 1,182,786 | ||||||||
Investment income | 2,421 | 1,752 | 1,283 | 891 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Purchased transportation | 1,591,126 | 1,727,237 | 799,371 | 916,940 | ||||||||||||
Commissions to agents | 173,294 | 176,524 | 87,623 | 94,399 | ||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 18,100 | 15,210 | 9,861 | 7,606 | ||||||||||||
Insurance and claims | 31,279 | 38,899 | 16,286 | 21,539 | ||||||||||||
Selling, general and administrative | 82,565 | 94,249 | 41,297 | 48,998 | ||||||||||||
Depreciation and amortization | 22,350 | 21,766 | 11,034 | 10,769 | ||||||||||||
Total costs and expenses | 1,918,714 | 2,073,885 | 965,472 | 1,100,251 | ||||||||||||
Operating income | 161,747 | 158,579 | 80,851 | 83,426 | ||||||||||||
Interest and debt expense | 1,514 | 1,639 | 709 | 839 | ||||||||||||
Income before income taxes | 160,233 | 156,940 | 80,142 | 82,587 | ||||||||||||
Income taxes | 35,833 | 36,975 | 19,042 | 20,095 | ||||||||||||
Net income | 124,400 | 119,965 | 61,100 | 62,492 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (17 | ) | (75 | ) | — | (31 | ) | |||||||||
Net income attributable to Landstar System, Inc. and subsidiary | $ | 124,417 | $ | 120,040 | $ | 61,100 | $ | 62,523 | ||||||||
Earnings per common share attributable to Landstar System, Inc. and subsidiary | $ | 3.11 | $ | 2.88 | $ | 1.53 | $ | 1.51 | ||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 3.11 | $ | 2.87 | $ | 1.53 | $ | 1.51 | ||||||||
Average number of shares outstanding: | ||||||||||||||||
Earnings per common share | 40,053,000 | 41,744,000 | 39,945,000 | 41,450,000 | ||||||||||||
Diluted earnings per share | 40,053,000 | 41,795,000 | 39,945,000 | 41,491,000 | ||||||||||||
Dividends per common share | $ | 0.330 | $ | 0.300 | $ | 0.165 | $ | 0.150 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Revenue | $ | 1,751,080 | $ | 2,078,040 | $ | 823,514 | $ | 1,045,040 | ||||||||
Investment income | 2,002 | 2,421 | 835 | 1,283 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Purchased transportation | 1,344,390 | 1,591,126 | 635,133 | 799,371 | ||||||||||||
Commissions to agents | 150,642 | 173,294 | 75,266 | 87,623 | ||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 15,674 | 18,100 | 7,368 | 9,861 | ||||||||||||
Insurance and claims | 44,708 | 31,279 | 19,751 | 16,286 | ||||||||||||
Selling, general and administrative | 85,928 | 82,565 | 40,601 | 41,297 | ||||||||||||
Depreciation and amortization | 22,972 | 22,350 | 11,467 | 11,034 | ||||||||||||
Impairment of intangible and other assets | 2,582 | — | 2,582 | — | ||||||||||||
Total costs and expenses | 1,666,896 | 1,918,714 | 792,168 | 965,472 | ||||||||||||
Operating income | 86,186 | 161,747 | 32,181 | 80,851 | ||||||||||||
Interest and debt expense | 1,928 | 1,514 | 976 | 709 | ||||||||||||
Income before income taxes | 84,258 | 160,233 | 31,205 | 80,142 | ||||||||||||
Income taxes | 19,109 | 35,833 | 6,951 | 19,042 | ||||||||||||
Net income | 65,149 | 124,400 | 24,254 | 61,100 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | — | (17 | ) | — | — | |||||||||||
Net income attributable to Landstar System, Inc. and subsidiary | $ | 65,149 | $ | 124,417 | $ | 24,254 | $ | 61,100 | ||||||||
Earnings per common share attributable to Landstar System, Inc. and subsidiary | $ | 1.68 | $ | 3.11 | $ | 0.63 | $ | 1.53 | ||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 1.68 | $ | 3.11 | $ | 0.63 | $ | 1.53 | ||||||||
Average number of shares outstanding: | ||||||||||||||||
Earnings per common share | 38,816,000 | 40,053,000 | 38,379,000 | 39,945,000 | ||||||||||||
Diluted earnings per share | 38,816,000 | 40,053,000 | 38,379,000 | 39,945,000 | ||||||||||||
Dividends per common share | $ | 0.370 | $ | 0.330 | $ | 0.185 | $ | 0.165 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Net income attributable to Landstar System, Inc. and subsidiary | $ | 124,417 | $ | 120,040 | $ | 61,100 | $ | 62,523 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized holding gains (losses) on available-for-sale investments, net of tax expense(benefit) of $494, ($233), $222 and ($42) | 1,805 | (883 | ) | 810 | (153 | ) | ||||||||||
Foreign currency translation gains (losses) | 1,125 | (1,239 | ) | 571 | (1,580 | ) | ||||||||||
Other comprehensive income (loss) | 2,930 | (2,122 | ) | 1,381 | (1,733 | ) | ||||||||||
Comprehensive income attributable to Landstar System, Inc. and subsidiary | $ | 127,347 | $ | 117,918 | $ | 62,481 | $ | 60,790 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Net income attributable to Landstar System, Inc. and subsidiary | $ | 65,149 | $ | 124,417 | $ | 24,254 | $ | 61,100 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Unrealized holding gains on available-for-sale | ||||||||||||||||
tax expense of $338, $494, $770 and $222 | 1,237 | 1,805 | 2,816 | 810 | ||||||||||||
Foreign currency translation (losses) gains | (6,170 | ) | 1,125 | 1,732 | 571 | |||||||||||
Other comprehensive (loss) income | (4,933 | ) | 2,930 | 4,548 | 1,381 | |||||||||||
Comprehensive income attributable to Landstar System, Inc. and subsidiary | $ | 60,216 | $ | 127,347 | $ | 28,802 | $ | 62,481 | ||||||||
Twenty Six Weeks Ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 124,400 | $ | 119,965 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of operating property and intangible assets | 22,350 | 21,766 | ||||||
Non-cash interest charges | 126 | 126 | ||||||
Provisions for losses on trade and other accounts receivable | 4,194 | 4,297 | ||||||
Gains on sales/disposals of operating property | (1,219 | ) | (988 | ) | ||||
Deferred income taxes, net | 5,060 | 5,585 | ||||||
Stock-based compensation | 3,368 | 8,102 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in trade and other accounts receivable | 89,820 | (48,651 | ) | |||||
Increase in other assets | (22,808 | ) | (16,537 | ) | ||||
(Decrease) increase in accounts payable | (28,565 | ) | 20,161 | |||||
Decrease in other liabilities | (14,315 | ) | (4,488 | ) | ||||
Increase in insurance claims | 1,665 | 3,691 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 184,076 | 113,029 | ||||||
INVESTING ACTIVITIES | ||||||||
Sales and maturities of investments | 41,345 | 18,399 | ||||||
Purchases of investments | (42,812 | ) | (19,653 | ) | ||||
Purchases of operating property | (9,224 | ) | (4,121 | ) | ||||
Proceeds from sales of operating property | 3,219 | 2,939 | ||||||
NET CASH USED BY INVESTING ACTIVITIES | (7,472 | ) | (2,436 | ) | ||||
FINANCING ACTIVITIES | ||||||||
(Decrease) increase in cash overdraft | (11,719 | ) | 3,123 | |||||
Dividends paid | (13,257 | ) | (75,481 | ) | ||||
Proceeds from exercises of stock options | 343 | 1,039 | ||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans | (8,438 | ) | (2,812 | ) | ||||
Purchases of common stock | (69,729 | ) | (105,488 | ) | ||||
Principal payments on finance lease obligations | (23,658 | ) | (22,768 | ) | ||||
Purchase of noncontrolling interest | (600 | ) | — | |||||
Payment of contingent consideration | — | (985 | ) | |||||
NET CASH USED BY FINANCING ACTIVITIES | (127,058 | ) | (203,372 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 930 | (996 | ) | |||||
Increase (decrease) in cash and cash equivalents | 50,476 | (93,775 | ) | |||||
Cash and cash equivalents at beginning of period | 199,736 | 242,416 | ||||||
Cash and cash equivalents at end of period | $ | 250,212 | $ | 148,641 | ||||
Twenty Six Weeks Ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 65,149 | $ | 124,400 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of operating property and intangible assets | 22,972 | 22,350 | ||||||
Non-cash interest charges | 126 | 126 | ||||||
Provisions for losses on trade and other accounts receivable | 6,528 | 4,194 | ||||||
Gains on sales/disposals of operating property | (1,812 | ) | (1,219 | ) | ||||
Impairment of intangible and other assets | 2,582 | — | ||||||
Deferred income taxes, net | 6,228 | 5,060 | ||||||
Stock-based compensation | 1,201 | 3,368 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease in trade and other accounts receivable | 99,601 | 89,820 | ||||||
Increase in other assets | (24,809 | ) | (22,808 | ) | ||||
Decrease in accounts payable | (31 | ) | (28,565 | ) | ||||
Increase (decrease) in other liabilities | 10,231 | (14,315 | ) | |||||
Increase in insurance claims | 10,419 | 1,665 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 198,385 | 184,076 | ||||||
INVESTING ACTIVITIES | ||||||||
Net changes in other short-term investments | 131 | — | ||||||
Sales and maturities of investments | 14,897 | 41,345 | ||||||
Purchases of investments | (16,382 | ) | (42,812 | ) | ||||
Purchases of operating property | (17,676 | ) | (9,224 | ) | ||||
Proceeds from sales of operating property | 4,465 | 3,219 | ||||||
Consideration paid for acquisition | (2,701 | ) | — | |||||
NET CASH USED BY INVESTING ACTIVITIES | (17,266 | ) | (7,472 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Decrease in cash overdraft | (18,344 | ) | (11,719 | ) | ||||
Dividends paid | (93,382 | ) | (13,257 | ) | ||||
Proceeds from exercises of stock options | 614 | 343 | ||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans | (3,280 | ) | (8,438 | ) | ||||
Purchases of common stock | (115,962 | ) | (69,729 | ) | ||||
Principal payments on finance lease obligations | (21,958 | ) | (23,658 | ) | ||||
Purchase of noncontrolling interest | — | (600 | ) | |||||
NET CASH USED BY FINANCING ACTIVITIES | (252,312 | ) | (127,058 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (2,851 | ) | 930 | |||||
(Decrease) increase in cash and cash equivalents | (74,044 | ) | 50,476 | |||||
Cash and cash equivalents at beginning of period | 319,515 | 199,736 | ||||||
Cash and cash equivalents at end of period | $ | 245,471 | $ | 250,212 | ||||
Landstar System, Inc. and Subsidiary Shareholders | |||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | Non- controlling | ||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | (Loss) Income | Interests | Total | |||||||||||||||||||||||||||||
Balance December 29, 2018 | 67,870,962 | $ | 679 | $ | 226,852 | $ | 1,841,279 | 27,755,001 | $ | (1,376,111 | ) | $ | (5,875 | ) | $ | 2,309 | $ | 689,133 | |||||||||||||||||||
Net income (loss) | 63,317 | (17 | ) | 63,300 | |||||||||||||||||||||||||||||||||
Dividends ($0.165 per share) | (6,629 | ) | (6,629 | ) | |||||||||||||||||||||||||||||||||
Purchases of common stock | 124,481 | (12,977 | ) | (12,977 | ) | ||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | 1,842 | (2,442 | ) | (600 | ) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 176,079 | 1 | (7,081 | ) | 5,199 | (524 | ) | (7,604 | ) | ||||||||||||||||||||||||||||
Stock-based compensation | 1,938 | 1,938 | |||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,549 | 150 | 1,699 | ||||||||||||||||||||||||||||||||||
Balance March 30, 2019 | 68,047,041 | $ | 680 | $ | 223,551 | $ | 1,897,967 | 27,884,681 | $ | (1,389,612 | ) | $ | (4,326 | ) | $ | — | $ | 728,260 | |||||||||||||||||||
Net income | 61,100 | 61,100 | |||||||||||||||||||||||||||||||||||
Dividends ($0.165 per share) | (6,628 | ) | (6,628 | ) | |||||||||||||||||||||||||||||||||
Purchases of common stock | 549,929 | (56,752 | ) | (56,752 | ) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 17,836 | 1 | (431 | ) | 572 | (61 | ) | (491 | ) | ||||||||||||||||||||||||||||
Stock-based compensation | 1,430 | 1,430 | |||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,381 | 1,381 | |||||||||||||||||||||||||||||||||||
Balance June 29, 2019 | 68,064,877 | $ | 681 | $ | 224,550 | $ | 1,952,439 | 28,435,182 | $ | (1,446,425 | ) | $ | (2,945 | ) | $ | — | $ | 728,300 | |||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | ||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | (Loss) Income | Total | |||||||||||||||||||||||||||||
Balance December 28, 2019 | 68,083,419 | $ | 681 | $ | 226,123 | $ | 1,962,161 | 28,609,926 | $ | (1,465,284 | ) | $ | (2,212 | ) | $ | 721,469 | ||||||||||||||||||||
Adoption of accounting standard (Note 1 4 ) | (702 | ) | (702 | ) | ||||||||||||||||||||||||||||||||
Net income | 40,895 | 40,895 | ||||||||||||||||||||||||||||||||||
Dividends ($0.185 per share) | (7,336 | ) | (7,336 | ) | ||||||||||||||||||||||||||||||||
Purchases of common stock | 1,178,970 | (115,962 | ) | (115,962 | ) | |||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 84,063 | 1 | (1,781 | ) | 8,078 | (639 | ) | (2,419 | ) | |||||||||||||||||||||||||||
Stock-based compensation | 631 | 631 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | (9,481 | ) | (9,481 | ) | ||||||||||||||||||||||||||||||||
Balance March 28, 2020 | 68,167,482 | $ | 682 | $ | 224,973 | $ | 1,995,018 | 29,796,974 | $ | (1,581,885 | ) | $ | (11,693 | ) | $ | 627,095 | ||||||||||||||||||||
Net income | 24,254 | 24,254 | ||||||||||||||||||||||||||||||||||
Dividends ($0.185 per share) | (7,099 | ) | (7,099 | ) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 9,305 | — | (211 | ) | 354 | (36 | ) | (247 | ) | |||||||||||||||||||||||||||
Stock-based compensation | 570 | 570 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | 4,548 | 4,548 | ||||||||||||||||||||||||||||||||||
Balance June 27, 2020 | 68,176,787 | $ | 682 | $ | 225,332 | $ | 2,012,173 | 29,797,328 | $ | (1,581,921 | ) | $ | (7,145 | ) | $ | 649,121 | ||||||||||||||||||||
Landstar System, Inc. and Subsidiary Shareholders | Landstar System, Inc. and Subsidiary Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | Non- controlling | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock at Cost | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Interests | Total | Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 30, 2017 | 67,740,380 | $ | 677 | $ | 209,599 | $ | 1,611,158 | 25,749,493 | $ | (1,167,600 | ) | $ | (3,162 | ) | $ | 3,205 | $ | 653,877 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of accounting standards | 773 | 773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 29, 2018 | 67,870,962 | $ | 679 | $ | 226,852 | $ | 1,841,279 | 27,755,001 | $ | (1,376,111 | ) | $ | (5,875 | ) | $ | 2,309 | $ | 689,133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 57,517 | (44 | ) | 57,473 | 63,317 | (17 | ) | 63,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.15 per share) | (6,308 | ) | (6,308 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.165 per share) | (6,629 | ) | (6,629 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 14,354 | (1,508 | ) | (1,508 | ) | 124,481 | (12,977 | ) | (12,977 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | 1,842 | (2,442 | ) | (600 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 95,784 | 1 | (1,376 | ) | 4,822 | (350 | ) | (1,725 | ) | 176,079 | 1 | (7,081 | ) | 5,199 | (524 | ) | (7,604 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3,710 | 3,710 | 1,938 | 1,938 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (389 | ) | 377 | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2018 | 67,836,164 | $ | 678 | $ | 211,933 | $ | 1,663,140 | 25,768,669 | $ | (1,169,458 | ) | $ | (3,551 | ) | $ | 3,538 | $ | 706,280 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 62,523 | (31 | ) | 62,492 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.15 per share) | (6,188 | ) | (6,188 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,549 | 150 | 1,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 30, 2019 | 68,047,041 | $ | 680 | $ | 223,551 | $ | 1,897,967 | 27,884,681 | $ | (1,389,612 | ) | $ | (4,326 | ) | $ | — | $ | 728,260 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 61,100 | 61,100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.165 per share) | (6,628 | ) | (6,628 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 985,646 | (103,980 | ) | (103,980 | ) | 549,929 | (56,752 | ) | (56,752 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 11,528 | 3 | 495 | (51 | ) | (48 | ) | 17,836 | 1 | (431 | ) | 572 | (61 | ) | (491 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 4,392 | 4,392 | 1,430 | 1,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (1,733 | ) | (282 | ) | (2,015 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2018 | 67,847,692 | $ | 678 | $ | 216,328 | $ | 1,719,475 | 26,754,810 | $ | (1,273,489 | ) | $ | (5,284 | ) | $ | 3,225 | $ | 660,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,381 | 1,381 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 29, 2019 | 68,064,877 | $ | 681 | $ | 224,550 | $ | 1,952,439 | 28,435,182 | $ | (1,446,425 | ) | $ | (2,945 | ) | $ | — | $ | 728,300 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Significant Accounting Policies |
(2) | Acquired Business |
Share-based Payment Arrangements |
Twenty Six Weeks Ended | Thirteen Weeks Ended | Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||||
Total cost of the Plans during the period | $ | 3,368 | $ | 8,102 | $ | 1,430 | $ | 4,392 | $ | 1,201 | $ | 3,368 | $ | 570 | $ | 1,430 | ||||||||||||||||
Amount of related income tax benefit recognized during the period | (3,734 | ) | (3,468 | ) | (672 | ) | (1,217 | ) | (1,135 | ) | (3,734 | ) | (262 | ) | (672 | ) | ||||||||||||||||
Net cost of the Plans during the period | $ | (366 | ) | $ | 4,634 | $ | 758 | $ | 3,175 | $ | 66 | $ | (366 | ) | $ | 308 | $ | 758 | ||||||||||||||
Number of RSUs | Weighted Average Grant Date Fair Value | Number of RSUs | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at December 29, 2018 | 292,345 | $ | 66.31 | |||||||||||||
Outstanding at December 28, 2019 | 198,875 | $ | 84.37 | |||||||||||||
Granted | 58,542 | $ | 95.70 | 59,478 | $ | 102.66 | ||||||||||
Shares earned in excess of target (1) | 71,172 | $ | 54.78 | 11,648 | $ | 77.00 | ||||||||||
Vested shares, including shares earned in excess of target | (226,981 | ) | $ | 53.27 | (76,290 | ) | $ | 73.44 | ||||||||
Forfeited | (5,822 | ) | $ | 84.39 | (10,987 | ) | $ | 100.55 | ||||||||
Outstanding at June 29, 2019 | 189,256 | $ | 86.14 | |||||||||||||
Outstanding at June 27, 2020 | 182,724 | $ | 93.44 | |||||||||||||
(1) | Represents shares earned in excess of target under the |
Number of Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (000s) | |||||||||||||
Options outstanding at December 29, 2018 | 89,114 | $ | 50.44 | |||||||||||||
Exercised | (22,700 | ) | $ | 49.45 | ||||||||||||
Options outstanding at June 29, 2019 | 66,414 | $ | 50.77 | 2.7 | $ | 3,800 | ||||||||||
Options exercisable at June 29, 2019 | 66,414 | $ | 50.77 | 2.7 | $ | 3,800 | ||||||||||
Number of Options | Weighted Average Exercise Price per | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (000s) | |||||||||||||
Options outstanding at December 28, 2019 | 44,467 | $ | 51.24 | |||||||||||||
Exercised | (16,517 | ) | $ | 47.70 | ||||||||||||
Options outstanding at June 27, 2020 | 27,950 | $ | 53.33 | 2.1 | $ | 1,514 | ||||||||||
Options exercisable at June 27, 2020 | 27,950 | $ | 53.33 | 2.1 | $ | 1,514 | ||||||||||
Number of Shares and Deferred Stock Units | Weighted Average Grant Date Fair Value | |||||||
Non-vested at December 29, 2018 | 55,987 | $ | 93.66 | |||||
Granted | 30,338 | $ | 102.76 | |||||
Vested | (21,165 | ) | $ | 92.66 | ||||
Non-vested at June 29, 2019 | 65,160 | $ | 98.22 | |||||
Number of Shares and Deferred Stock Units | Weighted Average Grant Date Fair Value | |||||||
Non-vested at December 28, 2019 | 64,808 | $ | 98.24 | |||||
Granted | 26,604 | $ | 111.88 | |||||
Vested | (27,619 | ) | $ | 98.91 | ||||
Forfeited | (2,351 | ) | $ | 106.34 | ||||
Non-vested at June 27, 2020 | 61,442 | $ | 103.54 | |||||
Income Taxes |
Earnings Per Share |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Average number of common shares outstanding | 40,053 | 41,744 | 39,945 | 41,450 | ||||||||||||
Incremental shares from assumed exercises of stock options | — | 51 | — | 41 | ||||||||||||
Average number of common shares and common share equivalents outstanding | 40,053 | 41,795 | 39,945 | 41,491 | ||||||||||||
Additional Cash Flow Information |
Segment Information |
Twenty Six Weeks Ended | Twenty Six Weeks Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||||||||||||||||||||
External revenue | $ | 2,049,777 | $ | 28,263 | $ | 2,078,040 | $ | 2,205,561 | $ | 25,151 | $ | 2,230,712 | $ | 1,723,682 | $ | 27,398 | $ | 1,751,080 | $ | 2,049,777 | $ | 28,263 | $ | 2,078,040 | ||||||||||||||||||||||||
Internal revenue | 27,367 | 27,367 | 22,917 | 22,917 | 35,834 | 35,834 | 27,367 | 27,367 | ||||||||||||||||||||||||||||||||||||||||
Investment income | 2,421 | 2,421 | 1,752 | 1,752 | 2,002 | 2,002 | 2,421 | 2,421 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 135,919 | 25,828 | 161,747 | 146,298 | 12,281 | 158,579 | 76,518 | 9,668 | 86,186 | 135,919 | 25,828 | 161,747 | ||||||||||||||||||||||||||||||||||||
Expenditures on long-lived assets | 9,224 | 9,224 | 4,121 | 4,121 | 17,676 | 17,676 | 9,224 | 9,224 | ||||||||||||||||||||||||||||||||||||||||
Goodwill | 38,407 | 38,407 | 38,704 | 38,704 | 40,071 | 40,071 | 38,407 | 38,407 | ||||||||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||||||||||||||||||||
External revenue | $ | 1,030,816 | $ | 14,224 | $ | 1,045,040 | $ | 1,169,921 | $ | 12,865 | $ | 1,182,786 | $ | 809,798 | $ | 13,716 | $ | 823,514 | $ | 1,030,816 | $ | 14,224 | $ | 1,045,040 | ||||||||||||||||||||||||
Internal revenue | �� | 17,753 | 17,753 | 15,419 | 15,419 | 26,755 | 26,755 | 17,753 | 17,753 | |||||||||||||||||||||||||||||||||||||||
Investment income | 1,283 | 1,283 | 891 | 891 | 835 | 835 | 1,283 | 1,283 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 68,336 | 12,515 | 80,851 | 78,998 | 4,428 | 83,426 | 21,474 | 10,707 | 32,181 | 68,336 | 12,515 | 80,851 | ||||||||||||||||||||||||||||||||||||
Expenditures on long-lived assets | 4,648 | 4,648 | 307 | 307 | 11,877 | 11,877 | 4,648 | 4,648 |
Other Comprehensive Income |
Unrealized Holding (Losses) Gains on Available-for-Sale Securities | Foreign Currency Translation | Total | ||||||||||
Balance as of December 29, 2018 | $ | (930 | ) | $ | (4,945 | ) | $ | (5,875 | ) | |||
Other comprehensive income | 1,805 | 1,125 | 2,930 | |||||||||
Balance as of June 29, 2019 | $ | 875 | $ | (3,820 | ) | $ | (2,945 | ) | ||||
Unrealized Holding Gains on Available-for-Sale Securities | Foreign Translation | Total | ||||||||||
Balance as of December 28, 2019 | $ | 1,120 | $ | (3,332 | ) | $ | (2,212 | ) | ||||
Other comprehensive gain (loss) | 1,237 | (6,170 | ) | (4,933 | ) | |||||||
Balance as of June 27, 2020 | $ | 2,357 | $ | (9,502 | ) | $ | (7,145 | ) | ||||
Investments |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
June 29, 2019 | ||||||||||||||||
Money market investments | $ | 17,207 | $ | — | $ | — | $ | 17,207 | ||||||||
Asset-backed securities | 112 | — | — | 112 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 96,282 | 1,155 | 49 | 97,388 | ||||||||||||
U.S. Treasury obligations | 1,104 | 9 | — | 1,113 | ||||||||||||
Total | $ | 114,705 | $ | 1,164 | $ | 49 | $ | 115,820 | ||||||||
December 29, 2018 | ||||||||||||||||
Money market investments | $ | 11,714 | $ | — | $ | — | $ | 11,714 | ||||||||
Asset-backed securities | 624 | — | 4 | 620 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 101,021 | 33 | 1,213 | 99,841 | ||||||||||||
Total | $ | 113,359 | $ | 33 | $ | 1,217 | $ | 112,175 | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
June 27, 2020 | ||||||||||||||||
Money market investments | $ | 14,038 | $ | — | $ | — | $ | 14,038 | ||||||||
Asset-backed securities | 569 | — | 84 | 485 | ||||||||||||
Corporate bonds and direct obligations of | ||||||||||||||||
government agencies | 100,722 | 3,261 | 316 | 103,667 | ||||||||||||
U.S. Treasury obligations | 2,337 | 141 | — | 2,478 | ||||||||||||
Total | $ | 117,666 | $ | 3,402 | $ | 400 | $ | 120,668 | ||||||||
December 28, 2019 | ||||||||||||||||
Money market investments | $ | 15,691 | $ | — | $ | — | $ | 15,691 | ||||||||
Asset-backed securities | 572 | — | 1 | 571 | ||||||||||||
Corporate bonds and direct obligations of | ||||||||||||||||
government agencies | 97,583 | 1,465 | 44 | 99,004 | ||||||||||||
U.S. Treasury obligation s | 2,335 | 12 | 5 | 2,342 | ||||||||||||
Total | $ | 116,181 | $ | 1,477 | $ | 50 | $ | 117,608 | ||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
June 29, 2019 | ||||||||||||||||||||||||
Corporate bonds and direct obligations of government agencies | $ | 288 | $ | 1 | $ | 17,420 | $ | 48 | $ | 17,708 | $ | 49 | ||||||||||||
December 29, 2018 | ||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 620 | $ | 4 | $ | 620 | $ | 4 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 45,960 | 354 | 42,803 | 859 | 88,763 | 1,213 | ||||||||||||||||||
Total | $ | 45,960 | $ | 354 | $ | 43,423 | $ | 863 | $ | 89,383 | $ | 1,217 | ||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
June 27, 2020 | ||||||||||||||||||||||||
Asset-backed securities | $ | 485 | $ | 84 | $ | — | $ | — | $ | 485 | $ | 84 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 4,937 | 316 | — | — | 4,937 | 316 | ||||||||||||||||||
Total | $ | 5,422 | $ | 400 | $ | — | $ | — | $ | 5,422 | $ | 400 | ||||||||||||
December 28, 2019 | ||||||||||||||||||||||||
Asset-backed securities | $ | 571 | $ | 1 | $ | — | $ | — | $ | 571 | $ | 1 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 8,728 | 41 | 4,260 | 3 | 12,988 | 44 | ||||||||||||||||||
U.S. Treasury obligation s | 1,226 | 5 | — | — | 1,226 | 5 | ||||||||||||||||||
Total | $ | 10,525 | $ | 47 | $ | 4,260 | $ | 3 | $ | 14,785 | $ | 50 | ||||||||||||
Finance leases: | ||||
Amortization of right-of-use assets | $ | 13,132 | ||
Interest on lease liability | 1,928 | |||
Total finance lease cost | 15,060 | |||
Operating leases: | ||||
Lease cost | 2,280 | |||
Variable lease cost | — | |||
Sublease income | (2,571 | ) | ||
Total operating lease (income)/cost | (291 | ) | ||
Total lease cost | $ | 14,769 | ||
Finance leases: | ||||
Amortization of right-of-use assets | $ | 12,372 | ||
Interest on lease liability | 1,689 | |||
Total finance lease cost | 14,061 | |||
Operating leases: | ||||
Lease cost | 1,518 | |||
Variable lease cost | — | |||
Sublease income | (2,413 | ) | ||
Total operating lease (income)/cost | (895 | ) | ||
Total lease cost | $ | 13,166 | ||
Operating lease right-of-use assets | Other assets | $ | 2,929 | |||
Finance lease assets | Operating property, less accumulated depreciation and amortization | 152,206 | ||||
Total lease assets | $ | 155,135 | ||||
Operating lease right-of-use assets | Other assets | $ | 2,462 | |||
Finance lease asset s | Operating property, less accumulated depreciation and amortization | 151,518 | ||||
Total lease assets | $ | 153,980 | ||||
Finance Leases | Operating Leases | |||||||
2019 Remainder | $ | 21,586 | $ | 445 | ||||
2020 | 39,475 | 681 | ||||||
2021 | 25,065 | 616 | ||||||
2022 | 15,902 | 622 | ||||||
2023 | 8,875 | 551 | ||||||
Thereafter | — | 301 | ||||||
Total future minimum lease payments | 110,903 | 3,216 | ||||||
Less amount representing interest (2.1% to 4.4%) | 6,136 | 287 | ||||||
Present value of minimum lease payments | $ | 104,767 | $ | 2,929 | ||||
Current maturities of long-term debt | 39,194 | |||||||
Long-term debt, excluding current maturities | 65,573 | |||||||
Other current liabilities | 715 | |||||||
Deferred income taxes and other noncurrent liabilities | 2,214 |
Finance Leases | Operating Leases | |||||||
2020 Remainder | $ | 22,849 | $ | 340 | ||||
2021 | 32,858 | 643 | ||||||
2022 | 23,709 | 645 | ||||||
2023 | 16,686 | 515 | ||||||
2024 | 6,742 | 448 | ||||||
Thereafter | 793 | 92 | ||||||
Total future minimum lease payments | 103,637 | 2,683 | ||||||
Less amount representing interest (2.1% to 4.4%) | 5,266 | 221 | ||||||
Present value of minimum lease payments | $ | 98,371 | $ | 2,462 | ||||
Current maturities of long-term debt | 38,219 | |||||||
Long-term debt, excluding current maturities | 60,152 | |||||||
Other current liabilitie s | 648 | |||||||
Deferred income taxes and other noncurrent liabilities | 1,814 |
Finance Leases | Operating Leases | |||||||
Weighted average remaining lease term (years) | 3.2 | 4.6 | ||||||
Weighted average discount rate | 3.2 | % | 4.0 | % |
Finance | Operating | |||||||
Weighted average remaining lease term (years) | 3.2 | 4.3 | ||||||
Weighted average discount rate | 3.2 | % | 4.0 | % |
(11) | Commitments and Contingencies |
(12) | Change in Accounting Estimate for Self-Insured Claims |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Operating income | $ | 2,900 | $ | 8,244 | $ | 1,493 | $ | 5,686 | ||||||||
Net income attributable to Landstar System, Inc. and subsidiary | 2,198 | 6,224 | 1,131 | 4,293 | ||||||||||||
Earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 0.05 | $ | 0.15 | $ | 0.03 | $ | 0.10 | ||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 0.05 | $ | 0.15 | $ | 0.03 | $ | 0.10 |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Operating income | $ | 5,039 | $ | 2,900 | $ | 2,816 | $ | 1,493 | ||||||||
Net income attributable to Landstar System, Inc. and subsidiary | $ | 3,820 | $ | 2,198 | $ | 2,135 | $ | 1,131 | ||||||||
Earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 0.10 | $ | 0.05 | $ | 0.06 | $ | 0.03 | ||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ | 0.10 | $ | 0.05 | $ | 0.06 | $ | 0.03 |
(13) | Impairment of Intangible and Other Assets |
(1 4 ) | Recent Accounting Pronouncements |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, | June 30, | June 29, | June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue generated through (in thousands): | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 1,224,379 | $ | 1,369,476 | $ | 605,365 | $ | 713,341 | ||||||||
Unsided/platform equipment | 648,828 | 664,045 | 338,107 | 364,676 | ||||||||||||
Less-than-truckload | 48,108 | 50,948 | 24,732 | 27,364 | ||||||||||||
Total truck transportation | 1,921,315 | 2,084,469 | 968,204 | 1,105,381 | ||||||||||||
Rail intermodal | 58,585 | 61,587 | 28,570 | 32,295 | ||||||||||||
Ocean and air cargo carriers | 58,893 | 51,506 | 28,224 | 28,029 | ||||||||||||
Other (1) | 39,247 | 33,150 | 20,042 | 17,081 | ||||||||||||
$ | 2,078,040 | $ | 2,230,712 | $ | 1,045,040 | $ | 1,182,786 | |||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation | $ | 923,928 | $ | 998,953 | $ | 474,620 | $ | 527,803 | ||||||||
Number of loads: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | 686,901 | 691,866 | 345,080 | 354,947 | ||||||||||||
Unsided/platform equipment | 260,920 | 255,334 | 135,750 | 135,543 | ||||||||||||
Less-than-truckload | 74,549 | 70,670 | 39,240 | 37,250 | ||||||||||||
Total truck transportation | 1,022,370 | 1,017,870 | 520,070 | 527,740 | ||||||||||||
Rail intermodal | 23,880 | 26,840 | 11,420 | 13,560 | ||||||||||||
Ocean and air cargo carriers | 14,810 | 13,030 | 7,300 | 6,700 | ||||||||||||
1,061,060 | 1,057,740 | 538,790 | 548,000 | |||||||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation | 483,660 | 480,890 | 248,810 | 247,710 | ||||||||||||
Revenue per load: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 1,782 | $ | 1,979 | $ | 1,754 | $ | 2,010 | ||||||||
Unsided/platform equipment | 2,487 | 2,601 | 2,491 | 2,690 | ||||||||||||
Less-than-truckload | 645 | 721 | 630 | 735 | ||||||||||||
Total truck transportation | 1,879 | 2,048 | 1,862 | 2,095 | ||||||||||||
Rail intermodal | 2,453 | 2,295 | 2,502 | 2,382 | ||||||||||||
Ocean and air cargo carriers | 3,977 | 3,953 | 3,866 | 4,183 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors | $ | 1,910 | $ | 2,077 | $ | 1,908 | $ | 2,131 | ||||||||
Revenue by capacity type (as a % of total revenue): | ||||||||||||||||
Truck capacity providers: | ||||||||||||||||
BCO Independent Contractors | 44 | % | 45 | % | 45 | % | 45 | % | ||||||||
Truck Brokerage Carriers | 48 | % | 49 | % | 47 | % | 49 | % | ||||||||
Rail intermodal | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Ocean and air cargo carriers | 3 | % | 2 | % | 3 | % | 2 | % | ||||||||
Other | 2 | % | 1 | % | 2 | % | 1 | % |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Revenue generated through (in thousands): | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 1,028,334 | $ | 1,224,379 | $ | 483,027 | $ | 605,365 | ||||||||
Unsided/platform equipment | 533,716 | 648,828 | 247,388 | 338,107 | ||||||||||||
Less-than-truckload | 45,859 | 48,108 | 22,918 | 24,732 | ||||||||||||
Total truck transportation | 1,607,909 | 1,921,315 | 753,333 | 968,204 | ||||||||||||
Rail intermodal | 51,315 | 58,585 | 23,186 | 28,570 | ||||||||||||
Ocean and air cargo carriers | 57,250 | 58,893 | 30,663 | 28,224 | ||||||||||||
Other (1) | 34,606 | 39,247 | 16,332 | 20,042 | ||||||||||||
$ 1,751,080 | $ 2,078,040 | $ 823,514 | $ 1,045,040 | |||||||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation | $ | 809,779 | $ | 923,928 | $ | 378,500 | $ | 474,620 | ||||||||
Number of loads: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | 600,519 | 686,901 | 285,174 | 345,080 | ||||||||||||
Unsided/platform equipment | 231,122 | 260,920 | 110,533 | 135,750 | ||||||||||||
Less-than-truckload | 78,079 | 74,549 | 39,723 | 39,240 | ||||||||||||
Total truck transportation | 909,720 | 1,022,370 | 435,430 | 520,070 | ||||||||||||
Rail intermodal | 21,510 | 23,880 | 9,970 | 11,420 | ||||||||||||
Ocean and air cargo carriers | 14,430 | 14,810 | 7,360 | 7,300 | ||||||||||||
945,660 | 1,061,060 | 452,760 | 538,790 | |||||||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation | 443,830 | 483,660 | 210,430 | 248,810 | ||||||||||||
Revenue per load: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 1,712 | $ | 1,782 | $ | 1,694 | $ | 1,754 | ||||||||
Unsided/platform equipment | 2,309 | 2,487 | 2,238 | 2,491 | ||||||||||||
Less-than-truckload | 587 | 645 | 577 | 630 | ||||||||||||
Total truck transportation | 1,767 | 1,879 | 1,730 | 1,862 | ||||||||||||
Rail intermodal | 2,386 | 2,453 | 2,326 | 2,502 | ||||||||||||
Ocean and air cargo carriers | 3,967 | 3,977 | 4,166 | 3,866 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors | $ | 1,825 | $ | 1,910 | $ | 1,799 | $ | 1,908 | ||||||||
Revenue by capacity type (as a % of total revenue): | ||||||||||||||||
Truck capacity providers: | �� | |||||||||||||||
BCO Independent Contractors | 46 | % | 44 | % | 46 | % | 45 | % | ||||||||
Truck Brokerage Carriers | 46 | % | 48 | % | 46 | % | 47 | % | ||||||||
Rail intermodal | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Ocean and air cargo carriers | 3 | % | 3 | % | 4 | % | 3 | % | ||||||||
Other | 2 | % | 2 | % | 2 | % | 2 | % |
(1) | Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
June 29, 2019 | June 30, 2018 | |||||||
BCO Independent Contractors | 9,879 | 9,501 | ||||||
Truck Brokerage Carriers: | ||||||||
Approved and active (1) | 40,097 | 37,045 | ||||||
Other approved | 17,790 | 15,406 | ||||||
57,887 | 52,451 | |||||||
Total available truck capacity providers | 67,766 | 61,952 | ||||||
Trucks provided by BCO Independent Contractors | 10,587 | 10,155 |
June 27, 2020 | June 29, 2019 | |||||||
BCO Independent Contractors | 9,632 | 9,879 | ||||||
Truck Brokerage Carriers: | ||||||||
Approved and active (1) | 37,600 | 40,097 | ||||||
Other approved | 16,365 | 17,790 | ||||||
53,965 | 57,887 | |||||||
Total available truck capacity providers | 63,597 | 67,766 | ||||||
Trucks provided by BCO Independent Contractors | 10,299 | 10,587 |
(1) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Purchased transportation | 76.6 | 77.4 | 76.5 | 77.5 | ||||||||||||
Commissions to agents | 8.3 | 7.9 | 8.4 | 8.0 | ||||||||||||
Gross profit margin | 15.1 | % | 14.7 | % | 15.1 | % | 14.5 | % | ||||||||
Gross profit | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Investment income | 0.8 | 0.5 | 0.8 | 0.5 | ||||||||||||
Indirect costs and expenses: | ||||||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 5.8 | 4.7 | 6.2 | 4.4 | ||||||||||||
Insurance and claims | 10.0 | 11.9 | 10.3 | 12.6 | ||||||||||||
Selling, general and administrative | 26.3 | 28.8 | 26.1 | 28.6 | ||||||||||||
Depreciation and amortization | 7.1 | 6.7 | 7.0 | 6.3 | ||||||||||||
Total costs and expenses | 49.2 | 52.0 | 49.7 | 51.9 | ||||||||||||
Operating margin | 51.6 | % | 48.5 | % | 51.2 | % | 48.7 | % | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Purchased transportation | 76.8 | 76.6 | 77.1 | 76.5 | ||||||||||||
Commissions to agents | 8.6 | 8.3 | 9.1 | 8.4 | ||||||||||||
Gross profit margin | 14.6 | % | 15.1 | % | 13.7 | % | 15.1 | % | ||||||||
Gross profit | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Investment income | 0.8 | 0.8 | 0.7 | 0.8 | ||||||||||||
Indirect costs and expenses: | ||||||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 6.1 | 5.8 | 6.6 | 6.2 | ||||||||||||
Insurance and claims | 17.5 | 10.0 | 17.5 | 10.3 | ||||||||||||
Selling, general and administrative | 33.6 | 26.3 | 35.9 | 26.1 | ||||||||||||
Depreciation and amortization | 9.0 | 7.1 | 10.1 | 7.0 | ||||||||||||
Impairment of intangible and other assets | 1.0 | — | 2.3 | — | ||||||||||||
Total costs and expenses | 67.1 | 49.2 | 72.3 | 49.7 | ||||||||||||
Operating margin | 33.7 | % | 51.6 | % | 28.4 | % | 51.2 | % | ||||||||
Fiscal Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares That May Yet Be Purchased Under the Programs | ||||||||||||
March 30, 2019 | 1,875,519 | |||||||||||||||
March 31, 2019 – April 27, 2019 | — | $ | — | — | 1,875,519 | |||||||||||
April 28, 2019 – May 25, 2019 | 324,891 | 106.20 | 324,891 | 1,550,628 | ||||||||||||
May 26, 2019 – June 29, 2019 | 225,038 | 98.86 | 225,038 | 1,325,590 | ||||||||||||
Total | 549,929 | $ | 103.20 | 549,929 | ||||||||||||
Exhibit No. | Description | |||
(10) | Material Contracts. | |||
10.1+ | Landstar System, Inc. 2011 Equity Incentive Plan, as amended through March 12, 2020 (Incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement filed on April 6, 2020 (Commission File No. 0-21238)) | |||
(31) | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.1 * | ||||
31.2 * | ||||
(32) | ||||
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||
32.1 ** | ||||
32.2 ** | ||||
101.INS* | ||||
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF* | Inline XBRL | |||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
+ | ||||
* | Filed herewith |
** | Furnished herewith |
LANDSTAR SYSTEM, INC. | ||
Date: July 31, 2020 | ||
/s/ James B. Gattoni | ||
James B. Gattoni | ||
President and | ||
Chief Executive Officer | ||
Date: July 31, 2020 | ||
/s/ L. Kevin Stout | ||
L. Kevin Stout | ||
Vice President and Chief | ||
Financial Officer |