Exhibit 99.3
Landstar System, Inc. and Subsidiary
Supplemental Reconciliation of Gross Profit to Variable Contribution
(Dollars in thousands)
(Unaudited)
Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
June 26, | March 27, | Fiscal Year | December 26, | September 26, | June 27, | March 28, | Fiscal Year | December 28, | September 28, | June 29, | March 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2021 | Ended 2020 | 2020 | 2020 | 2020 | 2020 | Ended 2019 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||||||||||||||||||||||
Revenue | $ | 1,570,718 | $ | 1,287,534 | $ | 4,132,981 | $ | 1,296,355 | $ | 1,085,546 | $ | 823,514 | $ | 927,566 | $ | 4,084,577 | $ | 994,879 | $ | 1,011,658 | $ | 1,045,040 | $ | 1,033,000 | ||||||||||||||||||||||||
Costs of revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchased transportation | 1,228,241 | 998,285 | 3,192,850 | 1,009,707 | 838,753 | 635,133 | 709,257 | 3,127,474 | 761,828 | 774,520 | 799,371 | 791,755 | ||||||||||||||||||||||||||||||||||||
Commissions to agents | 121,693 | 100,009 | 340,780 | 104,290 | 85,848 | 75,266 | 75,376 | 342,226 | 84,364 | 84,568 | 87,623 | 85,671 | ||||||||||||||||||||||||||||||||||||
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Variable costs of revenue | 1,349,934 | 1,098,294 | 3,533,630 | 1,113,997 | 924,601 | 710,399 | 784,633 | 3,469,700 | 846,192 | 859,088 | 886,994 | 877,426 | ||||||||||||||||||||||||||||||||||||
Trailing equipment depreciation | 8,840 | 8,907 | 34,892 | 8,550 | 8,397 | 8,716 | 9,229 | 36,934 | 9,266 | 8,808 | 9,297 | 9,563 | ||||||||||||||||||||||||||||||||||||
Information technology costs (1) | 3,146 | 2,938 | 9,791 | 2,770 | 2,722 | 2,663 | 1,636 | 5,983 | 1,700 | 1,492 | 1,410 | 1,381 | ||||||||||||||||||||||||||||||||||||
Insurance-related costs (2) | 25,051 | 22,622 | 90,778 | 21,939 | 22,657 | 20,561 | 25,621 | 83,172 | 25,621 | 24,786 | 17,004 | 15,761 | ||||||||||||||||||||||||||||||||||||
Other operating costs | 8,903 | 7,642 | 30,463 | 7,428 | 7,361 | 7,368 | 8,306 | 37,274 | 8,743 | 10,431 | 9,861 | 8,239 | ||||||||||||||||||||||||||||||||||||
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Other costs of revenue | 45,940 | 42,109 | 165,924 | 40,687 | 41,137 | 39,308 | 44,792 | 163,363 | 45,330 | 45,517 | 37,572 | 34,944 | ||||||||||||||||||||||||||||||||||||
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Total costs of revenue | 1,395,874 | 1,140,403 | 3,699,554 | 1,154,684 | 965,738 | 749,707 | 829,425 | 3,633,063 | 891,522 | 904,605 | 924,566 | 912,370 | ||||||||||||||||||||||||||||||||||||
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Gross profit | $ | 174,844 | $ | 147,131 | $ | 433,427 | $ | 141,671 | $ | 119,808 | $ | 73,807 | $ | 98,141 | $ | 451,514 | $ | 103,357 | $ | 107,053 | $ | 120,474 | $ | 120,630 | ||||||||||||||||||||||||
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Gross profit margin | 11.1 | % | 11.4 | % | 10.5 | % | 10.9 | % | 11.0 | % | 9.0 | % | 10.6 | % | 11.1 | % | 10.4 | % | 10.6 | % | 11.5 | % | 11.7 | % | ||||||||||||||||||||||||
Plus: other costs of revenue | 45,940 | 42,109 | 165,924 | 40,687 | 41,137 | 39,308 | 44,792 | 163,363 | 45,330 | 45,517 | 37,572 | 34,944 | ||||||||||||||||||||||||||||||||||||
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Variable contribution | $ | 220,784 | $ | 189,240 | $ | 599,351 | $ | 182,358 | $ | 160,945 | $ | 113,115 | $ | 142,933 | $ | 614,877 | $ | 148,687 | $ | 152,570 | $ | 158,046 | $ | 155,574 | ||||||||||||||||||||||||
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Variable contribution margin | 14.1 | % | 14.7 | % | 14.5 | % | 14.1 | % | 14.8 | % | 13.7 | % | 15.4 | % | 15.1 | % | 14.9 | % | 15.1 | % | 15.1 | % | 15.1 | % |
(1) | Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company’s Consolidated Statements of Income. |
(2) | Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. |
Landstar System, Inc. and Subsidiary
Supplemental Reconciliation of Gross Profit to Variable Contribution
(Dollars in thousands)
(Unaudited)
Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | December 29, | September 29, | June 30, | March 31, | Fiscal Year | December 30, | September 30, | July 1, | April 1, | Fiscal Year | December 31, | September 24, | June 25, | March 26, | ||||||||||||||||||||||||||||||||||||||||||||||
Ended 2018 | 2018 | 2018 | 2018 | 2018 | Ended 2017 | 2017 | 2017 | 2017 | 2017 | Ended 2016 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 4,615,144 | $ | 1,182,351 | $ | 1,202,081 | $ | 1,182,786 | $ | 1,047,926 | $ | 3,646,364 | $ | 1,051,592 | $ | 943,430 | $ | 870,434 | $ | 780,908 | $ | 3,167,634 | $ | 892,829 | $ | 787,938 | $ | 775,223 | $ | 711,644 | ||||||||||||||||||||||||||||||
Costs of revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased transportation | 3,569,961 | 911,251 | 931,473 | 916,940 | 810,297 | 2,805,109 | 815,171 | 726,827 | 667,588 | 595,523 | 2,415,663 | 684,918 | 601,002 | 589,415 | 540,328 | |||||||||||||||||||||||||||||||||||||||||||||
Commissions to agents | 378,002 | 102,174 | 99,304 | 94,399 | 82,125 | 297,410 | 86,732 | 76,598 | 70,282 | 63,798 | 264,205 | 75,130 | 65,144 | 64,839 | 59,092 | |||||||||||||||||||||||||||||||||||||||||||||
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Variable costs of revenue | 3,947,963 | 1,013,425 | 1,030,777 | 1,011,339 | 892,422 | 3,102,519 | 901,903 | 803,425 | 737,870 | 659,321 | 2,679,868 | 760,048 | 666,146 | 654,254 | 599,420 | |||||||||||||||||||||||||||||||||||||||||||||
Trailing equipment depreciation | 37,007 | 9,361 | 9,153 | 9,236 | 9,257 | 35,001 | 9,003 | 8,715 | 8,591 | 8,692 | 31,141 | 8,518 | 7,851 | 7,472 | 7,300 | |||||||||||||||||||||||||||||||||||||||||||||
Information technology costs (1) | 5,495 | 1,658 | 1,381 | 1,354 | 1,102 | 2,600 | 718 | 999 | 358 | 525 | 3,233 | 802 | 765 | 775 | 891 | |||||||||||||||||||||||||||||||||||||||||||||
Insurance-related costs (2) | 78,619 | 18,721 | 19,868 | 22,027 | 18,003 | 65,011 | 16,798 | 18,710 | 14,401 | 15,102 | 60,053 | 15,490 | 13,119 | 16,676 | 14,768 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating costs | 31,803 | 7,627 | 8,966 | 7,606 | 7,604 | 28,687 | 6,190 | 8,097 | 7,503 | 6,897 | 29,702 | 8,218 | 7,492 | 6,585 | 7,407 | |||||||||||||||||||||||||||||||||||||||||||||
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Other costs of revenue | 152,924 | 37,367 | 39,368 | 40,223 | 35,966 | 131,299 | 32,709 | 36,521 | 30,853 | 31,216 | 124,129 | 33,028 | 29,227 | 31,508 | 30,366 | |||||||||||||||||||||||||||||||||||||||||||||
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Total costs of revenue | 4,100,887 | 1,050,792 | 1,070,145 | 1,051,562 | 928,388 | 3,233,818 | 934,612 | 839,946 | 768,723 | 690,537 | 2,803,997 | 793,076 | 695,373 | 685,762 | 629,786 | |||||||||||||||||||||||||||||||||||||||||||||
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Gross profit | $ | 514,257 | $ | 131,559 | $ | 131,936 | $ | 131,224 | $ | 119,538 | $ | 412,546 | $ | 116,980 | $ | 103,484 | $ | 101,711 | $ | 90,371 | $ | 363,637 | $ | 99,753 | $ | 92,565 | $ | 89,461 | $ | 81,858 | ||||||||||||||||||||||||||||||
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Gross profit margin | 11.1 | % | 11.1 | % | 11.0 | % | 11.1 | % | 11.4 | % | 11.3 | % | 11.1 | % | 11.0 | % | 11.7 | % | 11.6 | % | 11.5 | % | 11.2 | % | 11.7 | % | 11.5 | % | 11.5 | % | ||||||||||||||||||||||||||||||
Plus: other costs of revenue | 152,924 | 37,367 | 39,368 | 40,223 | 35,966 | 131,299 | 32,709 | 36,521 | 30,853 | 31,216 | 124,129 | 33,028 | 29,227 | 31,508 | 30,366 | |||||||||||||||||||||||||||||||||||||||||||||
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Variable contribution | $ | 667,181 | $ | 168,926 | $ | 171,304 | $ | 171,447 | $ | 155,504 | $ | 543,845 | $ | 149,689 | $ | 140,005 | $ | 132,564 | $ | 121,587 | $ | 487,766 | $ | 132,781 | $ | 121,792 | $ | 120,969 | $ | 112,224 | ||||||||||||||||||||||||||||||
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Variable contribution margin | 14.5 | % | 14.3 | % | 14.3 | % | 14.5 | % | 14.8 | % | 14.9 | % | 14.2 | % | 14.8 | % | 15.2 | % | 15.6 | % | 15.4 | % | 14.9 | % | 15.5 | % | 15.6 | % | 15.8 | % |