April 18, 2002 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) reported 2002 record first quarter net income of $8.5 million, or $1.02 per diluted share, compared with net income of $8.4 million, or $.96 per diluted share, in the 2001 first quarter. Revenue was a record $336 million for the thirteen-week period ended March 30, 2002, compared with revenue of $331 million in the comparable 2001 period. Landstar's carrier group of companies generated $270 million of revenue in the 2002 first quarter compared with revenue of $263 million in the 2001 first quarter. Landstar's multimodal services group of companies generated $59 million of revenue in the 2002 first quarter compared with $62 million of revenue in the 2001 first quarter.
"I'm pleased with Landstar's 2002 first quarter performance," said Landstar Chairman and CEO, Jeff Crowe. "During the first two months of the quarter demand was relatively soft. However, business levels strengthened in March and Landstar finished the quarter on a positive note, as revenue increased almost $5 million over the 2001 quarter."
"Landstar ended the 2002 first quarter with 8,814 trucks, 35 more than at year-end and 234 more than at the end of 2001 first quarter," said Crowe. "Truck count is off to a good start and I expect truck count at year end 2002 to be 200 to 300 trucks higher than the prior year end truck count."
"Operating margin in the 2002 first quarter deteriorated slightly as increased insurance and claims costs offset the effect of the Company's cost savings programs. I expect insurance and claims costs expense to trend downward toward its historical relationship to revenue through the remainder of 2002. Trailing twelve-month return on average equity remained high at 35 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was above 20 percent. Landstar's balance sheet continued to strengthen, as we reduced debt by $14.9 million and ended the quarter with over $61 million in cash and short-term investments. Shareholder's equity represented 60 percent of capitalization, up from 54 percent at year-end," Crowe said, "I believe that Landstar's financial strength is significant and will allow us to take advantage of future opportunities as they arise."
"As reported by FIRST CALL, the range of analysts' earnings estimates for the 2002 second quarter is $1.21 to $1.42 per diluted share. Economic conditions appear to be improving," Crowe said. "Based upon the level of business activity experienced during March and the continued strength through the first two weeks of April, I am currently comfortable in the mid to upper end of that range."
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", "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.
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 9002 quality management system standards.
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.