Landstar System Reports Record 4Q Profits
Landstar System, , Jacksonville, Fla., record diluted earnings per share of 73 cents in the 2012 fourth quarter compared to 70 cents in the fourteen week 2011 fourth quarter.
Landstar System, , Jacksonville, Fla., record diluted earnings per share of 73 cents in the 2012 fourth quarter compared to 70 cents in the fourteen week 2011 fourth quarter.
The company's fiscal year ends on the last Saturday in December. As such, its 2012 fourth quarter included thirteen weeks whereas the 2011 fourth quarter included 14 weeks. Prior to 2011, 2005 was the most recent fourth quarter to include fourteen weeks.
Revenue in the 2012 fourth quarter was $691.3 million and was a record for a 13-week fourth quarter. Revenue in the 2011 14-week fourth quarter was $717.5 million.
Operating margin, representing operating income divided by gross profit (gross profit defined as revenue less the cost of purchased transportation and commissions to agents) was 45% in both the 2012 and 2011 fourth quarters.
Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers in the 2012 13-week period was $639.3 million, or 92% of revenue, compared to $659.3 million, or 92% of revenue, in the 2011 14-week period.
"Landstar produced solid operating results in the 2012 13-week period, despite inconsistent demand and a much tougher quarter over prior year quarter comparison due to fewer business days in the 2012 fourth quarter compared to the 2011 fourth quarter," said Landstar Chairman, President and Chief Executive Officer Henry Gerkens.
Loads hauled via truck capacity in the 2012 13-week period were a 13-week fourth quarter record of 361,000 loads, he noted.
Average truck revenue per load in the 2012 period remained relatively high at $1,772 per load compared to revenue of $1,744 per load in the 2011 period.
"The 2012 full year operating results were very good," Gerkens said, noting that Landstar completed the 2012 52-week fiscal year with record annual revenue of $2,793 million compared to $2,649 million for the 53-week 2011 fiscal year and record annual diluted earnings per share of $2.77 in 2012 compared to $2.38 in 2011.
Landstar also achieved one of its key financial goals, as operating margin was a record 46.2% for the 2012 fiscal year compared to 42.4% for the 2011 fiscal year.
"Over the next three to five year period, our new goal is to push that operating margin to over 50%.
"In my opinion, there remains much economic uncertainty, and as such, I will not be providing specific ranges of 2013 first quarter and full year revenue and earnings projections at this time. That being said, right now, I would anticipate that the 2013 first quarter results should be similar to the 2012 first quarter results."
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