October 18, 2001 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported 2001 third quarter net income of $11.9 million, or $1.41 per diluted share, compared to net income of $11.5 million, or $1.30 per diluted share, in the 2000 third quarter. The 2000 third quarter included a $2.2 million pre-tax non-recurring charge for the withdrawal from a union-sponsored pension plan that reduced net income by $.15 per diluted share. Revenue was $355.7 million for the thirteen-week period ended September 29, 2001, compared with $352.4 million for the thirteen-week period ended September 23, 2000. Landstar's carrier group of companies generated $276.5 million of revenue in the 2001 third quarter compared with $277.6 million in the 2000 quarter. In the 2001 and 2000 third quarters, the carrier group invoiced customers $8.0 million and $8.3 million, respectively, in fuel surcharges that were passed 100 percent to its business capacity owners and excluded from revenue. Landstar's multimodal services group of companies reported revenue of $73.2 million in the 2001 third quarter compared to $68.7 million in the 2000 quarter.
Net income for the thirty-nine-week period ended September 29, 2001 was $31.2 million, or $3.62 per diluted share, compared to net income of $29.3 million, or $3.21 per diluted share, for the thirty-nine-week period ended September 23, 2000. The 2000 thirty-nine-week period included $5.3 million of pre-tax non-recurring charges that reduced net income by $.35 per diluted share. Revenue was $1,045 million in the 2001 thirty-nine-week period, compared to revenue of $1,038 million in the comparable 2000 period. Landstar's carrier group of companies generated $820.1 million of revenue in the thirty-nine-week period ended September 29, 2001 compared with $816.1 million in the thirty-nine-week period ended September 23, 2000. In the 2001 and 2000 periods, the carrier group invoiced customers $29.0 million and $19.9 million, respectively, in fuel surcharges that were passed 100 percent to its business capacity owners and excluded from revenue. Landstar's multimodal services group of companies generated $207.2 million of revenue in the 2001 thirty-nine-week period compared with $203.5 in the 2000 period.
Landstar Chairman and CEO, Jeff Crowe, commenting on the results said, "Landstar was able to increase its 2001 third quarter revenue over the 2000 third quarter despite a difficult operating environment, as brokerage revenue increased 15 percent which more than offset decreased flatbed revenue. Diluted earnings per share were $1.41; within the guidance previously provided. Return on equity for the rolling four quarters ended September 29, 2001 was 44 percent. Earnings before interest, income taxes, depreciation and amortization for the thirty-nine weeks was $67 million versus $64 million for the 2000 period."
"At the end of the third quarter there were 8,594 trucks in the Landstar system. This represents an increase of 114 trucks since the end of the 2001 second quarter. Landstar is on track to achieve its goal of replacing all of its lost truck capacity from the first four and one half months of the year. I remain confident in our ability to rebuild truck count to its 2000 year-end level."
"The 2001 fourth quarter is a thirteen-week period reflecting a fifty-two week fiscal year whereas the 2000 fourth quarter represented a fourteen-week period reflecting a fifty three week fiscal year. As such, I anticipate the quarter over quarter comparison to be difficult. I expect diluted earnings per share in the 2001 fourth quarter to be within a range of $1.60 to $1.85. This somewhat wide range reflects the economic uncertainty that currently exists in the marketplace; in addition to the relatively low number of common shares outstanding. Landstar repurchased 383,700 shares of its common stock in the 2001 third quarter at an average cost of $76.43 per share, thus completing its previously authorized share repurchase program."
"At September 29, 2001, Landstar had 8,086,993 shares outstanding. In addition, the Board of Directors on September 17, 2001, authorized the Company to repurchase up to an additional 500,000 shares of common stock."
"While recent events have added to the economic uncertainty, Landstar enters the 2001 fourth quarter with confidence."
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 p.m. EDT. To access the webcast visit the company's website at www.landstar.com. Click on Investor Relations and then on the microphone at the top of the page. StreetEvents.com will also carry the broadcast live.
This press release contains forward-looking statements, such as statements that relate to Landstar's business objectives, plans, strategies and expectations. The words "believe", "anticipate", "expect", "should", and similar expressions identify forward-looking statements. While made in good faith and with a reasonable basis based on information currently available to Landstar's management, there is no assurance that such opinions, beliefs or expectations will be achieved or accomplished. Various factors could cause actual results and events to vary significantly from those expressed in any forward-looking statement. Such types of statements are intended to be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The Company is under no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason.
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Landstar System, Inc. is headquartered in Jacksonville, Florida. The Landstar carrier group, comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc. and Landstar Ranger, Inc., delivers excellence in complete over-the-road transportation services. The Landstar multimodal group, comprised of Landstar Express America, Inc. and Landstar Logistics, Inc., delivers excellence in expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9001:2000 quality management system standards. Landstar System, Inc.'s common stock trades on The NASDAQ Stock Market® under the symbol LSTR.