Landstar System Inc. (NASDAQ:LSTR), Jacksonville, Fla., reported revenue rose 19% to a record $502 million in the 2005 first quarter from $421 million in the 2004 first quarter.
Net income for the 2005 first quarter was a record $17.9 million, or $.29 per diluted share, compared to net income of $8.1 million, or $.13 per diluted share, for the 2004 first quarter.
Included in the 2004 first quarter was $7.6 million to settle one severe accident. This charge, net of related income tax benefits, reduced net income by $4.9 million, or $.08 per diluted share. Operating margin was 6.0% in the 2005 first quarter compared to 3.3% in the 2004 first quarter, which was reduced 1.8% by the previously mentioned accident.
Landstar's carrier group of companies generated $371 million of revenue in the 2005 first quarter, compared with revenue of $322 million in the 2004 first quarter. In the 2005 and 2004 first quarters, the carrier group invoiced customers $20.6 million and $8.3 million, respectively; fuel surcharges were passed on 100% to business capacity owners and excluded from revenue.
Landstar's multimodal services group of companies generated $124 million of revenue in the 2005 first quarter compared with $92 million of revenue in the 2004 first quarter.
According to Landstar president and CEO Henry Gerkens, "Consolidated revenue increased by 19 percent to the highest first quarter revenue in Landstar history. This increase reflected strong growth at the carrier segment and a 34 percent increase in revenue at the multimodal segment. Additionally, revenue generated through other third party truck capacity providers (truck brokerage) increased 63 percent over the 2004 first quarter.”
Gerkens also stated he anticipated revenue growth for the 2005 second quarter to be within a range of 14 to 18% compared to the 2004 second quarter. For more information, go to www.landstar.com.