☒ | 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 | (I.R.S. Employer | |
incorporation or organization) | 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 | ☐ |
Item 1.Financial Statements (unaudited) | ||||
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Page 10 | ||||
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations | Page | |||
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Page 32 | ||||
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Page |
EX – 31.1 Section 302 CEO Certification | ||||
EX – 31.2 Section 302 CFO Certification | ||||
EX – 32.1 Section 906 CEO Certification | ||||
EX – 32.2 Section 906 CFO Certification |
2
September 24, 2022 | December 25, 2021 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 177,796 | $ | 215,522 | ||||
Short-term investments | 50,637 | 35,778 | ||||||
Trade accounts receivable, less allowance of $10,464 and $7,074 | 1,133,681 | 1,154,314 | ||||||
Other receivables, including advances to independent contractors, less allowance of $9,877 and $8,125 | 87,241 | 101,124 | ||||||
Other current assets | 35,493 | 16,162 | ||||||
Total current assets | 1,484,848 | 1,522,900 | ||||||
Operating property, less accumulated depreciation and amortization of $383,458 and $344,099 | 321,585 | 317,386 | ||||||
Goodwill | 41,004 | 40,768 | ||||||
Other assets | 141,103 | 164,411 | ||||||
Total assets | $ | 1,988,540 | $ | 2,045,465 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Cash overdraft | $ | 97,686 | $ | 116,478 | ||||
Accounts payable | 644,054 | 604,130 | ||||||
Current maturities of long-term debt | 37,375 | 36,561 | ||||||
Insurance claims | 58,131 | 46,896 | ||||||
Dividends payable | — | 75,387 | ||||||
Other current liabilities | 104,272 | 130,531 | ||||||
Total current liabilities | 941,518 | 1,009,983 | ||||||
Long-term debt, excluding current maturities | 72,095 | 75,243 | ||||||
Insurance claims | 55,765 | 49,509 | ||||||
Deferred income taxes and other noncurrent liabilities | 45,989 | 48,720 | ||||||
Shareholders’ Equity | ||||||||
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,380,565 and 68,232,975 shares | 684 | 682 | ||||||
Additional paid-in capital | 255,486 | 255,148 | ||||||
Retained earnings | 2,625,290 | 2,317,184 | ||||||
Cost of 32,455,300 and 30,539,235 shares of common stock in treasury | (1,992,886 | ) | (1,705,601 | ) | ||||
Accumulated other comprehensive loss | (15,401 | ) | (5,403 | ) | ||||
Total shareholders’ equity | 873,173 | 862,010 | ||||||
Total liabilities and shareholders’ equity | $ | 1,988,540 | $ | 2,045,465 | ||||
July 1, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 360,528 | $ | 339,581 | ||||
Short-term investments | 58,574 | 53,955 | ||||||
Trade accounts receivable, less allowance of $12,715 and $12,121 | 848,839 | 967,793 | ||||||
Other receivables, including advances to independent contractors, less allowance of $13,673 and $10,579 | 64,079 | 56,235 | ||||||
Other current assets | 41,667 | 21,826 | ||||||
Total current assets | 1,373,687 | 1,439,390 | ||||||
Operating property, less accumulated depreciation and amortization of $417,364 and $393,274 | 297,066 | 314,990 | ||||||
Goodwill | 42,166 | 41,220 | ||||||
Other assets | 124,846 | 136,279 | ||||||
Total assets | $ | 1,837,765 | $ | 1,931,879 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Cash overdraft | $ | 57,216 | $ | 92,953 | ||||
Accounts payable | 478,688 | 527,372 | ||||||
Current maturities of long-term debt | 31,560 | 36,175 | ||||||
Insurance claims | 45,160 | 50,836 | ||||||
Dividends payable | — | 71,854 | ||||||
Other current liabilities | 80,202 | 98,945 | ||||||
Total current liabilities | 692,826 | 878,135 | ||||||
Long-term debt, excluding current maturities | 53,149 | 67,225 | ||||||
Insurance claims | 57,240 | 58,268 | ||||||
Deferred income taxes and other noncurrent liabilities | 40,989 | 41,030 | ||||||
Shareholders’ Equity | ||||||||
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,497,324 and 68,382,310 shares | 685 | 684 | ||||||
Additional paid-in capital | 253,486 | 258,487 | ||||||
Retained earnings | 2,759,128 | 2,635,960 | ||||||
Cost of 32,550,852 and 32,455,300 shares of common stock in treasury | (2,009,327 | ) | (1,992,886 | ) | ||||
Accumulated other comprehensive loss | (10,411 | ) | (15,024 | ) | ||||
Total shareholders’ equity | 993,561 | 887,221 | ||||||
Total liabilities and shareholders’ equity | $ | 1,837,765 | $ | 1,931,879 | ||||
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||||||||
Revenue | $ | 5,761,795 | $ | 4,592,551 | $ | 1,816,132 | $ | 1,734,299 | ||||||||
Investment income | 2,023 | 2,138 | 716 | 706 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Purchased transportation | 4,512,341 | 3,583,197 | 1,416,323 | 1,356,671 | ||||||||||||
Commissions to agents | 465,759 | 356,997 | 154,125 | 135,295 | ||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 34,878 | 27,117 | 13,356 | 10,572 | ||||||||||||
Insurance and claims | 96,265 | 75,198 | 31,445 | 29,569 | ||||||||||||
Selling, general and administrative | 165,199 | 158,720 | 53,519 | 59,198 | ||||||||||||
Depreciation and amortization | 42,627 | 36,532 | 14,582 | 12,288 | ||||||||||||
Total costs and expenses | 5,317,069 | 4,237,761 | 1,683,350 | 1,603,593 | ||||||||||||
Operating income | 446,749 | 356,928 | 133,498 | 131,412 | ||||||||||||
Interest and debt expense | 3,275 | 2,974 | 1,047 | 965 | ||||||||||||
Income before income taxes | 443,474 | 353,954 | 132,451 | 130,447 | ||||||||||||
Income taxes | 105,862 | 85,745 | 32,233 | 31,772 | ||||||||||||
Net income | $ | 337,612 | $ | 268,209 | $ | 100,218 | $ | 98,675 | ||||||||
Diluted earnings per share | $ | 9.15 | $ | 7.00 | $ | 2.76 | $ | 2.58 | ||||||||
Average diluted shares outstanding | 36,886,000 | 38,342,000 | 36,334,000 | 38,218,000 | ||||||||||||
Dividends per common share | $ | 0.80 | $ | 0.67 | $ | 0.30 | $ | 0.25 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Revenue | $ | 2,809,532 | $ | 3,945,663 | $ | 1,373,857 | $ | 1,975,064 | ||||||||
Investment income | 3,852 | 1,307 | 2,484 | 586 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Purchased transportation | 2,154,491 | 3,096,018 | 1,053,197 | 1,545,688 | ||||||||||||
Commissions to agents | 248,153 | 311,634 | 122,478 | 161,856 | ||||||||||||
Other operating costs, net of gains on asset sales/dispositions | 25,840 | 21,522 | 13,462 | 10,381 | ||||||||||||
Insurance and claims | 57,431 | 64,820 | 29,784 | 34,052 | ||||||||||||
Selling, general and administrative | 108,096 | 111,680 | 54,529 | 58,967 | ||||||||||||
Depreciation and amortization | 30,139 | 28,045 | 14,941 | 14,288 | ||||||||||||
Total costs and expenses | 2,624,150 | 3,633,719 | 1,288,391 | 1,825,232 | ||||||||||||
Operating income | 189,234 | 313,251 | 87,950 | 150,418 | ||||||||||||
Interest and debt (income) expense | (1,033 | ) | 2,228 | (307 | ) | 1,105 | ||||||||||
Income before income taxes | 190,267 | 311,023 | 88,257 | 149,313 | ||||||||||||
Income taxes | 45,513 | 73,629 | 21,698 | 36,758 | ||||||||||||
Net income | $ | 144,754 | $ | 237,394 | 66,559 | $ | 112,555 | |||||||||
Diluted earnings per share | $ | 4.03 | $ | 6.39 | $ | 1.85 | $ | 3.05 | ||||||||
Average diluted shares outstanding | 35,962,000 | 37,162,000 | 35,941,000 | 36,905,000 | ||||||||||||
Dividends per common share | $ | 0.60 | $ | 0.50 | $ | 0.30 | $ | 0.25 | ||||||||
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||||||||
Net income | $ | 337,612 | $ | 268,209 | $ | 100,218 | $ | 98,675 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Unrealized holding losses on available-for-sale | (8,987 | ) | (1,260 | ) | (1,596 | ) | (377 | ) | ||||||||
Foreign currency translation (losses) gains | (1,011 | ) | 320 | (1,484 | ) | (710 | ) | |||||||||
Other comprehensive loss | (9,998 | ) | (940 | ) | (3,080 | ) | (1,087 | ) | ||||||||
Comprehensive income | $ | 327,614 | $ | 267,269 | $ | 97,138 | $ | 97,588 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Net income | $ | 144,754 | $ | 237,394 | $ | 66,559 | $ | 112,555 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized holding gains (losses) on available-for-sale | 782 | (7,391 | ) | (338 | ) | (2,204 | ) | |||||||||
Foreign currency translation gains (losses) | 3,831 | 473 | 2,120 | (802 | ) | |||||||||||
Other comprehensive income (loss) | 4,613 | (6,918 | ) | 1,782 | (3,006 | ) | ||||||||||
Comprehensive income | $ | 149,367 | $ | 230,476 | $ | 68,341 | $ | 109,549 | ||||||||
Twenty Six Weeks Ended | ||||||||
July 1, 2023 | June 25, 2022 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 144,754 | $ | 237,394 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 30,139 | 28,045 | ||||||
Non-cash interest charges | 132 | 224 | ||||||
Provisions for losses on trade and other accounts receivable | 7,268 | 6,359 | ||||||
Gains on sales/disposals of operating property | (2,884 | ) | (1,213 | ) | ||||
Deferred income taxes, net | (1,178 | ) | 5,999 | |||||
Stock-based compensation | 3,126 | 5,810 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in trade and other accounts receivable | 103,842 | (82,233 | ) | |||||
Increase in other assets | (20,258 | ) | (42,742 | ) | ||||
(Decrease) increase in accounts payable | (48,684 | ) | 66,404 | |||||
Decrease in other liabilities | (17,820 | ) | (25,265 | ) | ||||
(Decrease) increase in insurance claims | (6,704 | ) | 10,869 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 191,733 | 209,651 | ||||||
INVESTING ACTIVITIES | ||||||||
Sales and maturities of investments | 63,602 | 21,918 | ||||||
Purchases of investments | (55,507 | ) | (23,883 | ) | ||||
Purchases of operating property | (12,631 | ) | (7,467 | ) | ||||
Proceeds from sales of operating property | 4,582 | 2,358 | ||||||
Purchase of non-marketable securities | — | (4,999 | ) | |||||
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | 46 | (12,073 | ) | |||||
FINANCING ACTIVITIES | ||||||||
Decrease in cash overdraft | (35,737 | ) | (2,875 | ) | ||||
Dividends paid | (93,440 | ) | (93,968 | ) | ||||
Proceeds from exercises of stock options | 28 | 56 | ||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans | (9,162 | ) | (10,269 | ) | ||||
Purchases of common stock | (15,433 | ) | (212,632 | ) | ||||
Principal payments on finance lease obligations | (18,691 | ) | (19,051 | ) | ||||
NET CASH USED BY FINANCING ACTIVITIES | (172,435 | ) | (338,739 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 1,603 | (190 | ) | |||||
Increase (decrease) in cash, cash equivalents and restricted cash | 20,947 | (141,351 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 339,581 | 219,571 | ||||||
Cash and cash equivalents at end of period | $ | 360,528 | $ | 78,220 | ||||
Thirty Nine Weeks Ended | ||||||||
September 24, 2022 | September 25, 2021 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 337,612 | $ | 268,209 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 42,627 | 36,532 | ||||||
Non-cash interest charges | 290 | 336 | ||||||
Provisions for losses on trade and other accounts receivable | 8,346 | 3,884 | ||||||
Gains on sales/disposals of operating property | (1,290 | ) | (1,259 | ) | ||||
Deferred income taxes, net | (2,597 | ) | 4,948 | |||||
Stock-based compensation | 9,409 | 18,717 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in trade and other accounts receivable | 26,170 | (224,503 | ) | |||||
Increase in other assets | (17,669 | ) | (3,822 | ) | ||||
Increase in accounts payable | 39,924 | 167,880 | ||||||
(Decrease) increase in other liabilities | (23,932 | ) | 22,837 | |||||
Increase (decrease) in insurance claims | 17,491 | (76,769 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 436,381 | 216,990 | ||||||
INVESTING ACTIVITIES | ||||||||
Sales and maturities of investments | 27,568 | 25,521 | ||||||
Purchases of investments | (30,490 | ) | (77,649 | ) | ||||
Purchases of operating property | (21,096 | ) | (18,561 | ) | ||||
Proceeds from sales of operating property | 2,669 | 2,047 | ||||||
Purchase of non-marketable securities | (4,999 | ) | — | |||||
NET CASH USED BY INVESTING ACTIVITIES | (26,348 | ) | (68,642 | ) | ||||
FINANCING ACTIVITIES | ||||||||
(Decrease) increase in cash overdraft | (18,792 | ) | 14,210 | |||||
Dividends paid | (104,893 | ) | (102,463 | ) | ||||
Payment for debt issue costs | (1,080 | ) | — | |||||
Proceeds from exercises of stock options | 56 | 134 | ||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans | (10,427 | ) | (2,342 | ) | ||||
Purchases of common stock | (285,983 | ) | (50,230 | ) | ||||
Principal payments on finance lease obligations | (29,075 | ) | (26,513 | ) | ||||
Payment of deferred consideration | — | (168 | ) | |||||
NET CASH USED BY FINANCING ACTIVITIES | (450,194 | ) | (167,372 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,614 | ) | 234 | |||||
Decrease in cash, cash equivalents and restricted cash | (41,775 | ) | (18,790 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 219,571 | 249,354 | ||||||
Cash and cash equivalents at end of period | $ | 177,796 | $ | 230,564 | ||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Total | Shares | Amount | Capital | Earnings | Shares | Amount | (Loss) Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2022 | 68,382,310 | $ | 684 | $ | 258,487 | $ | 2,635,960 | 32,455,300 | $ | (1,992,886 | ) | $ | (15,024 | ) | $ | 887,221 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 78,195 | 78,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.30 per share) | (10,806 | ) | (10,806 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 89,661 | (15,433 | ) | (15,433 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 101,653 | 1 | (7,201 | ) | 5,891 | (1,008 | ) | (8,208 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,852 | 1,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 2,831 | 2,831 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 25, 2021 | 68,232,975 | $ | 682 | $ | 255,148 | $ | 2,317,184 | 30,539,235 | $ | (1,705,601 | ) | $ | (5,403 | ) | $ | 862,010 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 124,839 | 124,839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.25 per share) | (9,324 | ) | (9,324 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 693,550 | (109,332 | ) | (109,332 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock- based compensation plans | 137,176 | 2 | (8,913 | ) | 10,033 | (1,216 | ) | (10,127 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1,995 | 1,995 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (3,912 | ) | (3,912 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 26, 2022 | 68,370,151 | $ | 684 | $ | 248,230 | $ | 2,432,699 | 31,242,818 | $ | (1,816,149 | ) | $ | (9,315 | ) | $ | 856,149 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 112,555 | 112,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.25 per share) | (9,257 | ) | (9,257 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 703,211 | (103,300 | ) | (103,300 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock- based compensation plans | 6,783 | — | — | 587 | (86 | ) | (86 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3,815 | 3,815 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (3,006 | ) | (3,006 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 25, 2022 | 68,376,934 | $ | 684 | $ | 252,045 | $ | 2,535,997 | 31,946,616 | $ | (1,919,535 | ) | $ | (12,321 | ) | $ | 856,870 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance April 1, 2023 | 68,483,963 | $ | 685 | $ | 253,138 | $ | 2,703,349 | 32,550,852 | $ | (2,009,327 | ) | $ | (12,193 | ) | $ | 935,652 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 100,218 | 100,218 | 66,559 | 66,559 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.30 per share) | (10,925 | ) | (10,925 | ) | (10,780 | ) | (10,780 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | 504,065 | (73,351 | ) | (73,351 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock- based compensation plans | 3,631 | — | (158 | ) | 4,619 | — | (158 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 13,361 | (926 | ) | (926 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 3,599 | 3,599 | 1,274 | 1,274 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (3,080 | ) | (3,080 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,782 | 1,782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance September 24, 2022 | 68,380,565 | $ | 684 | $ | 255,486 | $ | 2,625,290 | 32,455,300 | $ | (1,992,886 | ) | $ | (15,401 | ) | $ | 873,173 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance July 1, 2023 | 68,497,324 | $ | 685 | $ | 253,486 | $ | 2,759,128 | 32,550,852 | $ | (2,009,327 | ) | $ | (10,411 | ) | $ | 993,561 | ||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | ||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | (Loss) Income | Total | |||||||||||||||||||||||||
Balance December 26, 2020 | 68,183,702 | $ | 682 | $ | 228,875 | $ | 2,046,238 | 29,797,639 | $ | (1,581,961 | ) | $ | (1,999 | ) | $ | 691,835 | ||||||||||||||||
Net income | 77,240 | 77,240 | ||||||||||||||||||||||||||||||
Dividends ($0.21 per share) | (8,067 | ) | (8,067 | ) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 28,594 | — | (307 | ) | 6,087 | (857 | ) | (1,164 | ) | |||||||||||||||||||||||
Stock-based compensation | 4,029 | 4,029 | ||||||||||||||||||||||||||||||
Other comprehensive loss | (954 | ) | (954 | ) | ||||||||||||||||||||||||||||
Balance March 27, 2021 | 68,212,296 | $ | 682 | $ | 232,597 | $ | 2,115,411 | 29,803,726 | $ | (1,582,818 | ) | $ | (2,953 | ) | $ | 762,919 | ||||||||||||||||
Net income | 92,294 | 92,294 | ||||||||||||||||||||||||||||||
Dividends ($0.21 per share) | (8,068 | ) | (8,068 | ) | ||||||||||||||||||||||||||||
Purchases of common stock | 150,000 | (23,837 | ) | (23,837 | ) | |||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 17,584 | — | (1,039 | ) | 355 | (61 | ) | (1,100 | ) | |||||||||||||||||||||||
Stock-based compensation | 6,864 | 6,864 | ||||||||||||||||||||||||||||||
Other comprehensive income | 1,101 | 1,101 | ||||||||||||||||||||||||||||||
Balance June 26, 2021 | 68,229,880 | $ | 682 | $ | 238,422 | $ | 2,199,637 | 29,954,081 | $ | (1,606,716 | ) | $ | (1,852 | ) | $ | 830,173 | ||||||||||||||||
Net income | 98,675 | 98,675 | ||||||||||||||||||||||||||||||
Dividends ($0.25 per share) | (9,558 | ) | (9,558 | ) | ||||||||||||||||||||||||||||
Purchases of common stock | 167,046 | (26,393 | ) | (26,393 | ) | |||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 1,133 | — | 56 | 1,300 | — | 56 | ||||||||||||||||||||||||||
Stock-based compensation | 7,824 | 7,824 | ||||||||||||||||||||||||||||||
Other comprehensive loss | (1,087 | ) | (1,087 | ) | ||||||||||||||||||||||||||||
Balance September 25, 2021 | 68,231,013 | $ | 682 | $ | 246,302 | $ | 2,288,754 | 30,122,427 | $ | (1,633,109 | ) | $ | (2,939 | ) | $ | 899,690 | ||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock at Cost | Accumulated Other Comprehensive | ||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Total | |||||||||||||||||||||||||
Balance December 25, 2021 | 68,232,975 | $ | 682 | $ | 255,148 | $ | 2,317,184 | 30,539,235 | $ | (1,705,601 | ) | $ | (5,403 | ) | $ | 862,010 | ||||||||||||||||
Net income | 124,839 | 124,839 | ||||||||||||||||||||||||||||||
Dividends ($0.25 per share) | (9,324 | ) | (9,324 | ) | ||||||||||||||||||||||||||||
Purchases of common stock | 693,550 | (109,332 | ) | (109,332 | ) | |||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 137,176 | 2 | (8,913 | ) | 10,033 | (1,216 | ) | (10,127 | ) | |||||||||||||||||||||||
Stock-based compensation | 1,995 | 1,995 | ||||||||||||||||||||||||||||||
Other comprehensive loss | (3,912 | ) | (3,912 | ) | ||||||||||||||||||||||||||||
Balance March 26, 2022 | 68,370,151 | $ | 684 | $ | 248,230 | $ | 2,432,699 | 31,242,818 | $ | (1,816,149 | ) | $ | (9,315 | ) | $ | 856,149 | ||||||||||||||||
Net income | 112,555 | 112,555 | ||||||||||||||||||||||||||||||
Dividends ($0.25 per share) | (9,257 | ) | (9,257 | ) | ||||||||||||||||||||||||||||
Purchases of common stock | 703,211 | (103,300 | ) | (103,300 | ) | |||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans | 6,783 | — | — | 587 | (86 | ) | (86 | ) | ||||||||||||||||||||||||
Stock-based compensation | 3,815 | 3,815 | ||||||||||||||||||||||||||||||
Other comprehensive loss | (3,006 | ) | (3,006 | ) | ||||||||||||||||||||||||||||
Balance June 25, 2022 | 68,376,934 | $ | 684 | $ | 252,045 | $ | 2,535,997 | 31,946,616 | $ | (1,919,535 | ) | $ | (12,321 | ) | $ | 856,870 | ||||||||||||||||
(1) | Significant Accounting Policies |
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
Mode | September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | ||||||||||||
Truck – BCO Independent Contractors | 35 | % | 41 | % | 35 | % | 40 | % | ||||||||
Truck – Truck Brokerage Carriers | 53 | % | 50 | % | 53 | % | 51 | % | ||||||||
Rail intermodal | 2 | % | 3 | % | 2 | % | 3 | % | ||||||||
Ocean and air cargo carriers | 8 | % | 4 | % | 9 | % | 5 | % | ||||||||
Truck Equipment Type | ||||||||||||||||
Van equipment | $ | 3,022,297 | $ | 2,502,025 | $ | 914,154 | $ | 918,115 | ||||||||
Unsided/platform equipment | $ | 1,336,956 | $ | 1,112,358 | $ | 453,924 | $ | 422,979 | ||||||||
Less-than-truckload | $ | 105,994 | $ | 85,551 | $ | 35,343 | $ | 30,819 | ||||||||
Other truck transportation (1) | $ | 632,001 | $ | 518,472 | $ | 195,345 | $ | 208,817 |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
Mode | July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | ||||||||||||
Truck – BCO Independent Contractors | 37 | % | 36 | % | 38 | % | 35 | % | ||||||||
Truck – Truck Brokerage Carriers | 55 | % | 53 | % | 53 | % | 54 | % | ||||||||
Rail intermodal | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||
Ocean and air cargo carriers | 5 | % | 8 | % | 5 | % | 8 | % | ||||||||
Truck Equipment Type | ||||||||||||||||
Van equipment | $ | 1,458,124 | $ | 2,108,143 | $ | 703,041 | $ | 1,026,938 | ||||||||
Unsided/platform equipment | $ | 772,336 | $ | 883,032 | $ | 394,772 | $ | 474,274 | ||||||||
Less-than-truckload | $ | 62,673 | $ | 70,651 | $ | 31,115 | $ | 36,931 | ||||||||
Other truck transportation (1) | $ | 277,520 | $ | 436,656 | $ | 118,017 | $ | 209,055 |
(1) | Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or . |
(2) Share-based Payment Arrangements |
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||||||||
Total cost of the Plans during the period | $ | 9,409 | $ | 18,717 | $ | 3,599 | $ | 7,824 | ||||||||
Amount of related income tax benefit recognized during the period | (5,219 | ) | (5,636 | ) | (949 | ) | (1,919 | ) | ||||||||
Net cost of the Plans during the period | $ | 4,190 | $ | 13,081 | $ | 2,650 | $ | 5,905 | ||||||||
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Total cost of the Plans during the period | $ | 3,126 | $ | 5,810 | $ | 1,274 | $ | 3,815 | ||||||||
Amount of related income tax benefit recognized during the period | (3,592 | ) | (4,270 | ) | (841 | ) | (910 | ) | ||||||||
Net cost of the Plans during the period | $ | (466 | ) | $ | 1,540 | $ | 433 | $ | 2,905 | |||||||
Number of RSUs | Weighted Average Grant Date Fair Value | |||||||
Outstanding at December 25, 2021 | 209,399 | $ | 102.90 | |||||
Granted | 49,825 | $ | 139.54 | |||||
Shares earned in excess of target (1) | 91,497 | $ | 92.58 | |||||
Vested shares, including shares earned in excess of target | (177,146 | ) | $ | 95.48 | ||||
Forfeited | (21,989 | ) | $ | 113.85 | ||||
Outstanding at September 24, 2022 | 151,586 | $ | 115.80 | |||||
Number of RSUs | Weighted Average Grant Date Fair Value | |||||||
Outstanding at December 31, 2022 | 151,780 | $ | 115.80 | |||||
Granted | 41,317 | $ | 165.14 | |||||
Shares earned in excess of target (1) | 79,176 | $ | 98.39 | |||||
Vested shares, including shares earned in excess of target | (137,861 | ) | $ | 97.97 | ||||
Forfeited | (554 | ) | $ | 136.18 | ||||
Outstanding at July 1, 2023 | 133,858 | $ | 139.01 | |||||
(1) | Represents additional shares earned under and under the April 24, 2018 and July 1, 2019 RSU awards as total shareholder return during the applicable performance period exceeded target performance level under each |
Number of Shares and Deferred Stock Units | Weighted Average Grant Date Fair Value | |||||||
Non-vested at December 25, 2021 | 56,436 | $ | 125.16 | |||||
Granted | 25,354 | $ | 152.54 | |||||
Vested | (27,074 | ) | $ | 122.68 | ||||
Forfeited | (6,921 | ) | $ | 144.45 | ||||
Non-vested at September 24, 2022 | 47,795 | $ | 138.30 | |||||
Number of Shares and Deferred Stock Units | Weighted Average Grant Date Fair Value | |||||||
Non-vested at December 31, 2022 | 47,795 | $ | 138.30 | |||||
Granted | 22,714 | $ | 179.32 | |||||
Vested | (23,640 | ) | $ | 138.23 | ||||
Non-vested at July 1, 2023 | 46,869 | $ | 158.22 | |||||
Number of Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (000s) | |||||||||||||
Options outstanding at December 25, 2021 | 8,570 | $ | 55.42 | |||||||||||||
Exercised | (4,100 | ) | $ | 54.36 | ||||||||||||
Options outstanding at September 24, 2022 | 4,470 | $ | 56.40 | 0.4 | $ | 386 | ||||||||||
Options exercisable at September 24, 2022 | 4,470 | $ | 56.40 | 0.4 | $ | 386 | ||||||||||
(3) Income Taxes |
(4) Earnings Per Share |
(5) Additional Cash Flow Information |
(6) Segment Information |
Thirty Nine Weeks Ended | ||||||||||||||||||||||||
September 24, 2022 | September 25, 2021 | |||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||
External revenue | $ | 5,702,959 | $ | 58,836 | $ | 5,761,795 | $ | 4,539,561 | $ | 52,990 | $ | 4,592,551 | ||||||||||||
Internal revenue | 65,753 | 65,753 | 53,028 | 53,028 | ||||||||||||||||||||
Investment income | 2,023 | 2,023 | 2,138 | 2,138 | ||||||||||||||||||||
Operating income | 412,054 | 34,695 | 446,749 | 323,370 | 33,558 | 356,928 | ||||||||||||||||||
Expenditures on long-lived assets | 21,096 | 21,096 | 18,561 | 18,561 | ||||||||||||||||||||
Goodwill | 41,004 | 41,004 | 40,980 | 40,980 | ||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
September 24, 2022 | September 25, 2021 | |||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||
External revenue | $ | 1,796,401 | $ | 19,731 | $ | 1,816,132 | $ | 1,716,004 | $ | 18,295 | $ | 1,734,299 | ||||||||||||
Internal revenue | 12,883 | 12,883 | 9,533 | 9,533 | ||||||||||||||||||||
Investment income | 716 | 716 | 706 | 706 | ||||||||||||||||||||
Operating income | 120,164 | 13,334 | 133,498 | 123,410 | 8,002 | 131,412 | ||||||||||||||||||
Expenditures on long-lived assets | 13,629 | 13,629 | 9,561 | 9,561 |
Twenty Six Weeks Ended | ||||||||||||||||||||||||
July 1, 2023 | June 25, 2022 | |||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||
External revenue | $ | 2,772,439 | $ | 37,093 | $ | 2,809,532 | $ | 3,906,558 | $ | 39,105 | $ | 3,945,663 | ||||||||||||
Internal revenue | 52,178 | 52,178 | 52,870 | 52,870 | ||||||||||||||||||||
Investment income | 3,852 | 3,852 | 1,307 | 1,307 | ||||||||||||||||||||
Operating income | 158,853 | 30,381 | 189,234 | 291,890 | 21,361 | 313,251 | ||||||||||||||||||
Expenditures on long-lived assets | 12,631 | 12,631 | 7,467 | 7,467 | ||||||||||||||||||||
Goodwill | 42,166 | 42,166 | 40,977 | 40,977 |
Thirteen Weeks Ended | ||||||||||||||||||||||||
July 1, 2023 | June 25, 2022 | |||||||||||||||||||||||
Transportation Logistics | Insurance | Total | Transportation Logistics | Insurance | Total | |||||||||||||||||||
External revenue | $ | 1,355,593 | $ | 18,264 | $ | 1,373,857 | $ | 1,955,219 | $ | 19,845 | $ | 1,975,064 | ||||||||||||
Internal revenue | 40,217 | 40,217 | 39,986 | 39,986 | ||||||||||||||||||||
Investment income | 2,484 | 2,484 | 586 | 586 | ||||||||||||||||||||
Operating income | 72,691 | 15,259 | 87,950 | 139,944 | 10,474 | 150,418 | ||||||||||||||||||
Expenditures on long-lived assets | 6,398 | 6,398 | 3,858 | 3,858 |
Unrealized Holding Gains (Losses) on Available-for-Sale Securities | Foreign Currency Translation | Total | ||||||||||
Balance as of December 25, 2021 | $ | 113 | $ | (5,516 | ) | $ | (5,403 | ) | ||||
Other comprehensive loss | (8,987 | ) | (1,011 | ) | (9,998 | ) | ||||||
Balance as of September 24, 2022 | $ | (8,874 | ) | $ | (6,527 | ) | $ | (15,401 | ) | |||
Unrealized Holding (Losses) Gains on Available-for-Sale Securities | Foreign Currency Translation | Total | ||||||||||
Balance as of December 31, 2022 | $ | (8,449 | ) | $ | (6,575 | ) | $ | (15,024 | ) | |||
Other comprehensive income | 782 | 3,831 | 4,613 | |||||||||
Balance as of July 1, 2023 | $ | (7,667 | ) | $ | (2,744 | ) | $ | (10,411 | ) | |||
(8) Investments |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
July 1, 2023 | ||||||||||||||||
Money market investments | $ | 6,264 | $ | — | $ | — | $ | 6,264 | ||||||||
Asset-backed securities | 17,639 | — | 2,705 | 14,934 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 121,137 | 1 | 6,962 | 114,176 | ||||||||||||
U.S. Treasury obligations | 16,058 | 1 | 102 | 15,957 | ||||||||||||
Total | $ | 161,098 | $ | 2 | $ | 9,769 | $ | 151,331 | ||||||||
December 31, 2022 | ||||||||||||||||
Money market investments | $ | 21,910 | $ | — | $ | — | $ | 21,910 | ||||||||
Asset-backed securities | 18,905 | — | 2,889 | 16,016 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 126,134 | 1 | 7,775 | 118,360 | ||||||||||||
U.S. Treasury obligations | 2,344 | — | 100 | 2,244 | ||||||||||||
Total | $ | 169,293 | $ | 1 | $ | 10,764 | $ | 158,530 | ||||||||
Gross | Gross | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
September 24, 2022 | ||||||||||||||||
Money market investments | $ | 22,062 | $ | — | $ | — | $ | 22,062 | ||||||||
Asset-backed securities | 19,742 | — | 2,666 | 17,076 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 129,250 | — | 8,536 | 120,714 | ||||||||||||
U.S. Treasury obligations | 2,344 | — | 102 | 2,242 | ||||||||||||
Total | $ | 173,398 | $ | — | $ | 11,304 | $ | 162,094 | ||||||||
December 25, 2021 | ||||||||||||||||
Money market investments | $ | 8,750 | $ | — | $ | — | $ | 8,750 | ||||||||
Asset-backed securities | 22,441 | — | 346 | 22,095 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 137,916 | 1,406 | 966 | 138,356 | ||||||||||||
U.S. Treasury obligations | 2,342 | 50 | — | 2,392 | ||||||||||||
Total | $ | 171,449 | $ | 1,456 | $ | 1,312 | $ | 171,593 | ||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
September 24, 2022 | ||||||||||||||||||||||||
Asset-backed securities | $ | 3,224 | $ | 453 | $ | 13,852 | $ | 2,213 | $ | 17,076 | $ | 2,666 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 68,854 | 2,732 | 51,860 | 5,804 | 120,714 | 8,536 | ||||||||||||||||||
U.S. Treasury obligations | 2,242 | 102 | — | — | 2,242 | 102 | ||||||||||||||||||
Total | $ | 74,320 | $ | 3,287 | $ | 65,712 | $ | 8,017 | $ | 140,032 | $ | 11,304 | ||||||||||||
December 25, 2021 | ||||||||||||||||||||||||
Asset-backed securities | $ | 22,095 | $ | 346 | $ | — | $ | — | $ | 22,095 | $ | 346 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 72,526 | 966 | — | — | 72,526 | 966 | ||||||||||||||||||
Total | $ | 94,621 | $ | 1,312 | $ | — | $ | — | $ | 94,621 | $ | 1,312 | ||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
July 1, 2023 | ||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 14,934 | $ | 2,705 | $ | 14,934 | $ | 2,705 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 19,035 | 262 | 93,141 | 6,700 | 112,176 | 6,962 | ||||||||||||||||||
U.S. Treasury obligations | 6,223 | 14 | 2,259 | 88 | 8,482 | 102 | ||||||||||||||||||
Total | $ | 25,258 | $ | 276 | $ | 110,334 | $ | 9,493 | $ | 135,592 | $ | 9,769 | ||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 16,016 | $ | 2,889 | $ | 16,016 | $ | 2,889 | ||||||||||||
Corporate bonds and direct obligations of government agencies | 54,031 | 1,516 | 62,390 | 6,259 | 116,421 | 7,775 | ||||||||||||||||||
U.S. Treasury obligations | 2,244 | 100 | — | — | 2,244 | 100 | ||||||||||||||||||
Total | $ | 56,275 | $ | 1,616 | $ | 78,406 | $ | 9,148 | $ | 134,681 | $ | 10,764 | ||||||||||||
(9) Leases |
Finance leases: | ||||
Amortization of right-of-use | $ | 16,455 | ||
Interest on lease liability | 2,117 | |||
Total finance lease cost | 18,572 | |||
Operating leases: | ||||
Lease cost | 2,587 | |||
Variable lease cost | — | |||
Sublease income | (3,711 | ) | ||
Total net operating lease income | (1,124 | ) | ||
Total net lease cost | $ | 17,448 | ||
Finance leases: | ||||
Amortization of right-of-use | $ | 10,445 | ||
Interest on lease liability | 1,452 | |||
Total finance lease cost | 11,897 | |||
Operating leases: | ||||
Lease cost | 1,751 | |||
Variable lease cost | — | |||
Sublease income | (2,626 | ) | ||
Total net operating lease income | (875 | ) | ||
Total net lease cost | $ | 11,022 | ||
Assets: | ||||||
Operating lease right-of-use | Other assets | $ | 1,766 | |||
Finance lease assets | Operating property, less accumulated depreciation and amortization | 125,947 | ||||
Total lease assets | $ | 127,713 | ||||
Liabilities: |
Operating lease right-of-use | Other assets | $ | 1,628 | |||
Finance lease assets | Operating property, less accumulated depreciation and amortization | 146,903 | ||||
Total lease assets | $ | 148,531 | ||||
Finance Leases | Operating Leases | Finance Leases | Operating Leases | |||||||||||||
2022 Remainder | $ | 10,680 | $ | 194 | ||||||||||||
2023 | 37,822 | 705 | ||||||||||||||
2023 Remainder | $ | 18,669 | $ | 430 | ||||||||||||
2024 | 27,969 | 542 | 28,843 | 735 | ||||||||||||
2025 | 21,771 | 285 | 22,658 | 456 | ||||||||||||
2026 | 13,633 | — | 14,530 | 128 | ||||||||||||
2027 | 4,115 | 128 | ||||||||||||||
Thereafter | 3,214 | — | — | 50 | ||||||||||||
Total future minimum lease payments | 115,089 | 1,726 | 88,815 | 1,927 | ||||||||||||
Less amount representing interest (1.6% to 4.6%) | 5,619 | 98 | ||||||||||||||
Less amount representing interest (1.6% to 6.0%) | 4,106 | 161 | ||||||||||||||
Present value of minimum lease payments | $ | 109,470 | $ | 1,628 | $ | 84,709 | $ | 1,766 | ||||||||
Current maturities of long-term debt | 37,375 | 31,560 | ||||||||||||||
Long-term debt, excluding current maturities | 72,095 | 53,149 | ||||||||||||||
Other current liabilities | 715 | 800 | ||||||||||||||
Deferred income taxes and other noncurrent liabilities | 913 | 966 |
Finance Leases | Operating Leases | |||||||
Weighted average remaining lease term (years) | 3.1 | 2.9 | ||||||
Weighted average discount rate | 3.0 | % | 6.0 | % |
Finance Leases | Operating Leases | |||||||
Weighted average remaining lease term (years) | 3.5 | 2.6 | ||||||
Weighted average discount rate | 2.9 | % | 4.5 | % |
(11) Commitments and Contingencies |
19
The transportation logistics segment provides a wide range of integrated transportation management solutions. Transportation services are provided by Landstar’s “Operating Subsidiaries”: Landstar Ranger, Inc., Landstar Inway, Inc., Landstar Ligon, Inc., Landstar Gemini, Inc., Landstar Transportation Logistics, Inc., Landstar Global Logistics, Inc., Landstar Express America, Inc., Landstar Canada, Inc., Landstar Metro, S.A.P.I. de C.V., and as further described below, Landstar Blue.Blue, LLC. Transportation services offered by the Company include truckload, less-than-truckload transportation and other truck 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, intra-Mexico, intra-Canada, project cargo and customs brokerage. Examples of the industries serviced by the transportation logistics segment include automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics
On May 6, 2020, the Company formed a new subsidiary that was subsequently renamed July 1, 2023.
July 1, 2023.
July 1, 2023.
costs, including insurance and claims.
20
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, | September 25, | September 24, | September 25, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue generated through (in thousands): | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 3,022,297 | $ | 2,502,025 | $ | 914,154 | $ | 918,115 | ||||||||
Unsided/platform equipment | 1,336,956 | 1,112,358 | 453,924 | 422,979 | ||||||||||||
Less-than-truckload | 105,994 | 85,551 | 35,343 | 30,819 | ||||||||||||
Other truck transportation (1) | 632,001 | 518,472 | 195,345 | 208,817 | ||||||||||||
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Total truck transportation | 5,097,248 | 4,218,406 | 1,598,766 | 1,580,730 | ||||||||||||
Rail intermodal | 113,762 | 120,540 | 27,652 | 44,472 | ||||||||||||
Ocean and air cargo carriers | 475,156 | 191,951 | 164,252 | 84,111 | ||||||||||||
Other (2) | 75,629 | 61,654 | 25,462 | 24,986 | ||||||||||||
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| |||||||||
$ | 5,761,795 | $ | 4,592,551 | $ | 1,816,132 | $ | 1,734,299 | |||||||||
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Revenue on loads hauled via BCO Independent Contractors included in total truck transportation | $ | 2,043,772 | $ | 1,899,313 | $ | 627,809 | $ | 690,257 | ||||||||
Number of loads: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | 1,130,263 | 1,037,516 | 366,513 | 359,263 | ||||||||||||
Unsided/platform equipment | 420,436 | 381,594 | 141,091 | 133,332 | ||||||||||||
Less-than-truckload | 142,740 | 135,038 | 45,912 | 49,943 | ||||||||||||
Other truck transportation (1) | 243,341 | 208,402 | 76,594 | 81,242 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total truck transportation | 1,936,780 | 1,762,550 | 630,110 | 623,780 | ||||||||||||
Rail intermodal | 31,940 | 40,420 | 7,720 | 13,620 | ||||||||||||
Ocean and air cargo carriers | 34,410 | 29,650 | 11,520 | 10,190 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
2,003,130 | 1,832,620 | 649,350 | 647,590 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation | 777,250 | 773,270 | 249,420 | 263,120 | ||||||||||||
Revenue per load: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 2,674 | $ | 2,412 | $ | 2,494 | $ | 2,556 | ||||||||
Unsided/platform equipment | 3,180 | 2,915 | 3,217 | 3,172 | ||||||||||||
Less-than-truckload | 743 | 634 | 770 | 617 | ||||||||||||
Other truck transportation (1) | 2,597 | 2,488 | 2,550 | 2,570 | ||||||||||||
Total truck transportation | 2,632 | 2,393 | 2,537 | 2,534 | ||||||||||||
Rail intermodal | 3,562 | 2,982 | 3,582 | 3,265 | ||||||||||||
Ocean and air cargo carriers | 13,809 | 6,474 | 14,258 | 8,254 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors | $ | 2,629 | $ | 2,456 | $ | 2,517 | $ | 2,623 | ||||||||
Revenue by capacity type (as a % of total revenue): | ||||||||||||||||
Truck capacity providers: | ||||||||||||||||
BCO Independent Contractors | 35 | % | 41 | % | 35 | % | 40 | % | ||||||||
Truck Brokerage Carriers | 53 | % | 50 | % | 53 | % | 51 | % | ||||||||
Rail intermodal | 2 | % | 3 | % | 2 | % | 3 | % | ||||||||
Ocean and air cargo carriers | 8 | % | 4 | % | 9 | % | 5 | % | ||||||||
Other | 1 | % | 1 | % | 1 | % | 1 | % |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Revenue generated through (in thousands): | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 1,458,124 | $ | 2,108,143 | $ | 703,041 | $ | 1,026,938 | ||||||||
Unsided/platform equipment | 772,336 | 883,032 | 394,772 | 474,274 | ||||||||||||
Less-than-truckload | 62,673 | 70,651 | 31,115 | 36,931 | ||||||||||||
Other truck transportation (1) | 277,520 | 436,656 | 118,017 | 209,055 | ||||||||||||
Total truck transportation | 2,570,653 | 3,498,482 | 1,246,945 | 1,747,198 | ||||||||||||
Rail intermodal | 50,889 | 86,110 | 25,232 | 43,422 | ||||||||||||
Ocean and air cargo carriers | 136,534 | 310,904 | 75,441 | 158,847 | ||||||||||||
Other (2) | 51,456 | 50,167 | 26,239 | 25,597 | ||||||||||||
$ | 2,809,532 | $ | 3,945,663 | $ | 1,373,857 | $ | 1,975,064 | |||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation | $ | 1,034,881 | $ | 1,415,963 | $ | 515,355 | $ | 688,389 | ||||||||
Number of loads: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | 655,036 | 763,750 | 323,082 | 387,482 | ||||||||||||
Unsided/platform equipment | 263,185 | 279,345 | 135,613 | 147,516 | ||||||||||||
Less-than-truckload | 93,066 | 96,828 | 46,874 | 48,985 | ||||||||||||
Other truck transportation (1) | 110,373 | 166,747 | 52,311 | 80,817 | ||||||||||||
Total truck transportation | 1,121,660 | 1,306,670 | 557,880 | 664,800 | ||||||||||||
Rail intermodal | 15,390 | 24,220 | 7,630 | 11,590 | ||||||||||||
Ocean and air cargo carriers | 16,750 | 22,890 | 8,310 | 11,330 | ||||||||||||
1,153,800 | 1,353,780 | 573,820 | 687,720 | |||||||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation | 463,910 | 527,830 | 231,360 | 265,590 | ||||||||||||
Revenue per load: | ||||||||||||||||
Truck transportation | ||||||||||||||||
Truckload: | ||||||||||||||||
Van equipment | $ | 2,226 | $ | 2,760 | $ | 2,176 | $ | 2,650 | ||||||||
Unsided/platform equipment | 2,935 | 3,161 | 2,911 | 3,215 | ||||||||||||
Less-than-truckload | 673 | 730 | 664 | 754 | ||||||||||||
Other truck transportation (1) | 2,514 | 2,619 | 2,256 | 2,587 | ||||||||||||
Total truck transportation | 2,292 | 2,677 | 2,235 | 2,628 | ||||||||||||
Rail intermodal | 3,307 | 3,555 | 3,307 | 3,747 | ||||||||||||
Ocean and air cargo carriers | 8,151 | 13,583 | 9,078 | 14,020 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors | $ | 2,231 | $ | 2,683 | $ | 2,228 | $ | 2,592 | ||||||||
Revenue by capacity type (as a % of total revenue): | ||||||||||||||||
Truck capacity providers: | ||||||||||||||||
BCO Independent Contractors | 37 | % | 36 | % | 38 | % | 35 | % | ||||||||
Truck Brokerage Carriers | 55 | % | 53 | % | 53 | % | 54 | % | ||||||||
Rail intermodal | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||
Ocean and air cargo carriers | 5 | % | 8 | % | 5 | % | 8 | % | ||||||||
Other | 2 | % | 1 | % | 2 | % | 1 | % |
(1) | Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. |
(2) | Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
21
September 24, 2022 | September 25, 2021 | |||||||
BCO Independent Contractors | 10,742 | 10,955 | ||||||
Truck Brokerage Carriers: | ||||||||
Approved and active (1) | 71,207 | 58,676 | ||||||
Other approved | 30,222 | 24,602 | ||||||
|
|
|
| |||||
101,429 | 83,278 | |||||||
|
|
|
| |||||
Total available truck capacity providers | 112,171 | 94,233 | ||||||
|
|
|
| |||||
Trucks provided by BCO Independent Contractors | 11,644 | 11,746 |
July 1, 2023 | June 25, 2022 | |||||||
BCO Independent Contractors | 9,748 | 11,023 | ||||||
Truck Brokerage Carriers: | ||||||||
Approved and active (1) | 58,303 | 70,649 | ||||||
Other approved | 29,503 | 29,454 | ||||||
87,806 | 100,103 | |||||||
Total available truck capacity providers | 97,554 | 111,126 | ||||||
Trucks provided by BCO Independent Contractors | 10,548 | 11,887 |
(1) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
22
2026.For periods prior to May 1, 2019, occurrence and maintains various third party insurance arrangements for liabilities in excess of its $5 million self-insured retention.occurrence. Effective May 1, 2019, the Company entered into a new three year commercial auto liability insurance arrangement for losses incurred between $5 million and $10 million (the “Initial“2019 Initial Excess Policy”) with a third party insurance company. The Company subsequently extended the 2019 Initial Excess Policy for one additional policy year, from May 1, 2022 through April 30, 2023. For commercial trucking claims incurred on or after May 1, 2022 through April 30, 2023, the extended 2019 Initial Excess Policy provides for a limit for a single loss of $5 million, with a remainingan aggregate limit of $10 million for the policy period ended April 30, 2023. Effective May 1, 2023, the Company entered into a new three year commercial auto liability insurance arrangement for losses incurred between $5 million and $10 million (the “2023 Initial Excess Policy”) with a third party insurance company. For commercial trucking claims incurred on or after May 1, 2023 through April 30, 2026, the 2023 Initial Excess Policy provides for an aggregate deductible of $18 million over theand an option to increase such aggregateInitial Excess Policy provides for a limit for a pre-established amountsingle loss of additional premium. If aggregate losses under the Initial Excess Policy exceed the$5 million, with an aggregate limit of $15 million for the period2023, and the Company did not elect to increase such aggregate limit for a pre-established amount of additional premium, the Company would retain liability of up to $10 million per occurrence, inclusive of its $5 million self-insured retention for commercial trucking claims during the remainder of the policy period ending April 30, 2023.With respect to the annual policy year ended April 30, 2021, as compared toSince the annual policy year ended April 30, 2020, as compared to the annual policy year ending April 30, 2024, the Company experienced an increase of approximately $14$21 million, or over 170%380%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10 million. Effective May 1, 2021, with respect to the annual policy year ending April 30, 2022, as compared to the annual policy year ended April 30, 2021, the Company experienced an increase of approximately $3 million, or 19%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10 million. Effective May 1, 2022, with respect to the annual policy year ending April 30, 2023, as compared to the annual policy year ended April 30, 2022, the Company experienced an increase of approximately $2.3 million, or 10%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10 million.$35$60 million incurred during the annual policy year ending April 30, 2023,2024, the Company would have an aggregate financial exposure of approximately $10$25 million. Furthermore, the Company’s third party insurance arrangements provide excess coverage up to an uppermost coverage layer, in excess of which the Company retains additional financial exposure. No assurances can be given that the availability of excess coverage for commercial trucking claims will not continue to deteriorate, that the pricing associated with such excess coverage, to the extent available, will not continue to increase, nor that insurance coverage from third party insurers for excess coverage of commercial trucking claims will even be available on commercially reasonable terms at certain levels. Moreover, the occurrence of a Nuclear Verdict, or the settlement of a catastrophic injury and/or fatality claim that could have otherwise resulted in a Nuclear Verdict, could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.$1,000,000$2,000,000 for each general liability claim, up to $250,000 for each workers’ compensation claim and up to $250,000 for each cargo claim. In addition, under reinsurance arrangements by Signature of certain risks of the Company’s BCO Independent Contractors, the Company retains liability of up to $500,000, $1,000,000 or $2,000,000 with respect to certain occupational accident claims and up to $750,000 with respect to certain workers’ compensation claims. The Company’s exposure to liability associated with accidents incurred by Truck Brokerage Carriers, railroads and air and ocean cargo carriers who transport freight on behalf of the Company is reduced by various factors including the extent to which such carriers maintain their own insurance coverage. A material increase in the frequency or severity of accidents, cargo claims or workers’ compensation claims or the material unfavorable development of existing claims could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.23 thirty-nine-week September 24, 2022,July 1, 2023, employee compensation and benefits accounted for approximately 68%60% of the Company’s selling, general and administrative costs. Employee compensation and benefits include wages and employee benefit costs as well as incentive compensation and stock-based compensation expense. Incentive compensation and stock-based compensation expense is highly variable in nature in comparison to wages and employee benefit costs.
24
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, | September 25, | September 24, | September 25, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | $ | 5,761,795 | $ | 4,592,551 | $ | 1,816,132 | $ | 1,734,299 | ||||||||
Costs of revenue: | ||||||||||||||||
Purchased transportation | 4,512,341 | 3,583,197 | 1,416,323 | 1,356,671 | ||||||||||||
Commissions to agents | 465,759 | 356,997 | 154,125 | 135,295 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Variable costs of revenue | 4,978,100 | 3,940,194 | 1,570,448 | 1,491,966 | ||||||||||||
Trailing equipment depreciation | 27,760 | 26,362 | 9,397 | 8,615 | ||||||||||||
Information technology costs | 13,868 | 9,534 | 4,829 | 3,450 | ||||||||||||
Insurance-related costs (1) | 98,821 | 78,175 | 32,380 | 30,502 | ||||||||||||
Other operating costs | 34,878 | 27,117 | 13,356 | 10,572 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other costs of revenue | 175,327 | 141,188 | 59,962 | 53,139 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total costs of revenue | 5,153,427 | 4,081,382 | 1,630,410 | 1,545,105 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Gross profit | $ | 608,368 | $ | 511,169 | $ | 185,722 | $ | 189,194 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Gross profit margin | 10.6 | % | 11.1 | % | 10.2 | % | 10.9 | % | ||||||||
Plus: other costs of revenue | 175,327 | 141,188 | 59,962 | 53,139 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Variable contribution | $ | 783,695 | $ | 652,357 | $ | 245,684 | $ | 242,333 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Variable contribution margin | 13.6 | % | 14.2 | % | 13.5 | % | 14.0 | % |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Revenue | $ | 2,809,532 | $ | 3,945,663 | $ | 1,373,857 | $ | 1,975,064 | ||||||||
Costs of revenue: | ||||||||||||||||
Purchased transportation | 2,154,491 | 3,096,018 | 1,053,197 | 1,545,688 | ||||||||||||
Commissions to agents | 248,153 | 311,634 | 122,478 | 161,856 | ||||||||||||
Variable costs of revenue | 2,402,644 | 3,407,652 | 1,175,675 | 1,707,544 | ||||||||||||
Trailing equipment depreciation | 16,519 | 18,363 | 8,150 | 9,280 | ||||||||||||
Information technology costs | 13,493 | 9,039 | 6,742 | 4,993 | ||||||||||||
Insurance-related costs (1) | 58,382 | 66,441 | 30,122 | 34,786 | ||||||||||||
Other operating costs | 25,840 | 21,522 | 13,462 | 10,381 | ||||||||||||
Other costs of revenue | 114,234 | 115,365 | 58,476 | 59,440 | ||||||||||||
Total costs of revenue | 2,516,878 | 3,523,017 | 1,234,151 | 1,766,984 | ||||||||||||
Gross profit | $ | 292,654 | $ | 422,646 | $ | 139,706 | $ | 208,080 | ||||||||
Gross profit margin | 10.4% | 10.7% | 10.2% | 10.5% | ||||||||||||
Plus: other costs of revenue | 114,234 | 115,365 | 58,476 | 59,440 | ||||||||||||
Variable contribution | $ | 406,888 | $ | 538,011 | $ | 198,182 | $ | 267,520 | ||||||||
Variable contribution margin | 14.5% | 13.6% | 14.4% | 13.5% |
(1) | Insurance-related costs in the table above include (i) other costs of revenue related to the transportation of freight that are included as a portion of insurance and claims in the Company’s Consolidated Statements of Income and (ii) certain other costs of revenue related to reinsurance premiums received by Signature that are included as a portion of selling, general and administrative in the Company’s Consolidated Statements of Income. Insurance and claims costs included in other costs of revenue relating to the transportation of freight primarily consist of insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight and the related cost of claims incurred under those programs, and, to a lesser extent, the cost of claims incurred under insurance programs available to BCO Independent Contractors that are reinsured by Signature. Other insurance and claims costs included in costs of revenue that are included in selling, general and administrative in the Company’s Consolidated Statements of Income consist of brokerage commissions and other fees incurred by Signature relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by Signature. |
25
understand the underlying trends in the Company’s results of operations; (iii) this measure is meaningful to investors’ evaluations of the Company’s management of costs attributable to operations other than the purely variable costs associated with purchased transportation and commissions to agents that the Company incurs to provide services to our customers; and (iv) management considers this financial information in its decision-making, such as budgeting for infrastructure, trailing equipment and selling, general and administrative costs.
Thirty Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||||||||
Gross profit | $ | 608,368 | $ | 511,169 | $ | 185,722 | $ | 189,194 | ||||||||
Operating income | $ | 446,749 | $ | 356,928 | $ | 133,498 | $ | 131,412 | ||||||||
Operating income as % of gross profit | 73.4 | % | 69.8 | % | 71.9 | % | 69.4 | % | ||||||||
Variable contribution | $ | 783,695 | $ | 652,357 | $ | 245,684 | $ | 242,333 | ||||||||
Operating income | $ | 446,749 | $ | 356,928 | $ | 133,498 | $ | 131,412 | ||||||||
Operating income as % of variable contribution | 57.0 | % | 54.7 | % | 54.3 | % | 54.2 | % |
Twenty Six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | |||||||||||||
Gross profit | $ | 292,654 | $ | 422,646 | $ | 139,706 | $ | 208,080 | ||||||||
Operating income | $ | 189,234 | $ | 313,251 | $ | 87,950 | $ | 150,418 | ||||||||
Operating income as % of gross profit | 64.7 | % | 74.1 | % | 63.0 | % | 72.3 | % | ||||||||
Variable contribution | $ | 406,888 | $ | 538,011 | $ | 198,182 | $ | 267,520 | ||||||||
Operating income | $ | 189,234 | $ | 313,251 | $ | 87,950 | $ | 150,418 | ||||||||
Operating income as % of variable contribution | 46.5 | % | 58.2 | % | 44.4 | % | 56.2 | % |
The increase in operating income as a percentage of variable contribution from the 2021 thirty-nine-week period to the 2022 thirty-nine-week period resulted from operating income increasing at a more rapid percentage rate than the increase in variable contribution, as the Company was able to scale our fixed cost infrastructure, primarily certain components of selling, generalinsurance and administrative costs, as well as certain components of our other costs of revenue, across a larger variable contribution base. The ten basis point increase in operating income as a percentage of variable contribution from the 2021 thirteen-week period to the 2022 thirteen-week period resulted from operating income increasing at a modestly higher percentage rate than the increase in variable contribution, as the Company was able to scale our fixed cost infrastructure, primarily certain components of selling, general and administrative costs across a larger variable contribution base.
claims costs.
THIRTY NINE
2022
26
to increaseddecreased revenue per load of approximately 15%17% and an increaseda decreased number of loads hauled of approximately 9%15% compared to the 2021 thirty-nine-week 2022
27
Investment income was $2,023,000$3,852,000 and $2,138,000$1,307,000 in the 20222023 and 2021 thirty-nine-week 2022
operating property.
Interest
2023 period, partially offset by increased interest expense related to finance lease obligations.
2022
28
Independent Contractors under a physical damage program reinsured by Signature; (ii) an increaseSignature in the average number of trucks provided by BCO Independent Contractors and (iii) participation levels among BCO Independent Contractors in certain occupational accident programs and workers’ compensation programs in the 20222023 thirteen-week period compared to the 20212022 thirteen-week period.
services and the 16% decrease in air loadings was primarily attributable to decreased loadings at one specific customer. Revenue per load on loads hauled via ocean, air and rail intermodal decreased 36%, 27% and 12%, respectively, during the 2023 thirteen-week period as compared to the 2022 thirteen-week period. The decrease in revenue per load on loads hauled by ocean and air cargo carriers was primarily related to the impact of global supply chain disruptions during the 2022 thirteen-week period, which were particularly acute with respect to international ocean and air freight. Revenue per load on revenue generated by multimode capacity providers is influenced by many factors, including revenue mix among the various modes of transportation used, length of haul, complexity of freight, density of freight lanes, fuel costs and availability of capacity.
The increase in investment income was primarily attributable to higher average rates of return on investments and a higher average investment balance held by the insurance segment during the 2023 thirteen-week period.
Interest
2022 period.
defined as accounts receivable less accounts payable.
31, 2022.
2023
30
with the SEC on July 8,1, 2022, Landstar entered into a second amended and restated credit agreement dated July 1, 2022, with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (the “Second Amended and Restated Credit“Credit Agreement”) that superseded and replaced the First Amended and Restated Credit Agreement.. The Second Amended and Restated Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $300,000,000, $45,000,000 of which may be utilized in the form of letters of credit. The Second Amended and Restated Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $600,000,000. The Second Amended and Restated Credit Agreement, which superseded and replaced the First Amended and Restated Credit Agreement, is referred to herein as the “Credit Agreement.” As of September 24, 2022, there were no borrowings outstanding under the revolving credit facility of the Credit Agreement.
On April 1, 2022, Landstar Investment Holdco, LLC, a newly formed Delaware LLC and wholly owned subsidiary of Landstar System Holdings, Inc., purchased Class A units of Cavnue, LLC for approximately $4,999,000 in cash consideration. Cavnue, LLC is a privately held company focused on combining technology and road infrastructure to unlock the full potential of connected and autonomous vehicles.
31
July 1, 2023, primarily due to the inherent difficulty in estimating the severity of commercial trucking claims and the potential judgment or settlement amount that may be incurred in connection with the resolution of such claims.
32
when they occur. The assets held at the Company’s Canadian and Mexican subsidiaries at September 24, 2022July 1, 2023 were collectively, as translated to U.S. dollars, approximately 2%less than 3% of total consolidated assets. Accordingly, translation gains or losses of 50% or lessapproximately 30% related to the Canadian and Mexican operations would not be material.
33
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 | ||||||||||||
June 25, 2022 | 1,603,239 | |||||||||||||||
June 26, 2022 – July 23, 2022 | — | $ | — | — | 1,603,239 | |||||||||||
July 24, 2022 – August 20, 2022 | 12,110 | 146.44 | 12,110 | 1,591,129 | ||||||||||||
August 21, 2022 – September 24, 2022 | 491,955 | 145.50 | 491,955 | 1,099,174 | ||||||||||||
|
|
|
|
|
| |||||||||||
Total | 504,065 | $ | 145.52 | 504,065 | ||||||||||||
|
|
|
|
|
|
quarter
Dividends
As previously disclosed in a Form 8-K filed with the SEC on July 8,or December 6, 2022 authorizations.
None.
34
+ |
Management contract or compensatory plan or arrangement |
* | Filed herewith |
** | Furnished herewith |
35
LANDSTAR SYSTEM, INC. | ||||
Date: | /s/ James B. Gattoni | |||
James B. Gattoni | ||||
President and Chief Executive Officer | ||||
Date: | /s/ James P. Todd | |||
James P. Todd | ||||
Vice President, Chief Financial Officer and Assistant Secretary |
36