Landstar Reports Record Revenue, Earnings

Landstar System Inc. reported record first quarter diluted earnings per share of 67 cents on record first quarter revenue of $762 million.

The figures compare to diluted earnings per share of 61 cents a year earlier and revenue of $688.2 million for the Florida-based asset-light transportation and logistics provider.

Net income in the most recent quarter totaled $30 million compared to $27.6 million in the 2014 first quarter.

Truck transportation revenue hauled by independent contractors and truck brokerage carriers in the 2015 first quarter was $708.9 million, or 93% of revenue, compared to $645.2 million, or 94% of revenue, in the 2014 first quarter.

Revenue hauled by rail, air and ocean cargo carriers was $42.8 million, or 6% of revenue, in the 2015 first quarter compared to $33.5 million, or 5% of revenue, in the 2014 first quarter.

“The number of loads hauled via truck exceeded the 2014 first quarter by 6% and the number of loads hauled via railroads, ocean cargo carriers and air cargo carriers increased 32% over the 2014 first quarter,” said Landstar President and CEO Jim Gattoni. “The growth in the number of loads hauled via truck was driven by a 32% increase in less-than-truckload volume and a 7% increase in the number of loads hauled via van equipment.

He said revenue per load on loads hauled via truck was at all-time seasonal highs in the 2015 first quarter.

Looing ahead, Gattoni said he expects the number of loads hauled via truck in the 2015 second quarter to increase in a mid-single digit compared to a year ago and for truck revenue per load to be relatively flat.

“My expectation is that pricing conditions for truck services in the 2015 second quarter will remain similar to those experienced in March, with a stable, yet relatively tight truck capacity market and a low per gallon cost of diesel fuel.”

Landstar anticipates revenue for the 2015 second quarter to be in a range of $830 million to $880 million and second quarter diluted earnings per share to be in a range of 87 cents to 92 cents per share compared to 80 cents per diluted share in the 2014 second quarter.

Landstar's board of directors declared a quarterly dividend of 7 cents per share and said it intends to pay dividends on a quarterly basis going forward.