April 19, 2001 JACKSONVILLE, FL - Landstar System, Inc. (NASDAQ: LSTR) reported 2001 first quarter net income of $8.4 million, or $.96 per diluted share, compared with net income of $8.3 million, or $.89 per diluted share, in the 2000 first quarter. Operating income and operating margin in the 2001 first quarter were $15.8 and 4.8% respectively compared with operating income and operating margin of $15.5 million and 4.7% in the 2000 first quarter. Revenue was a record $331 million for the thirteen weeks ended March 31, 2001, compared with revenue of $327 million for the same time period in 2000. In the 2001 and 2000 first quarters, the carrier group invoiced customers $11.5 million and $3.8 million respectively, of fuel surcharges that were passed 100% to its business capacity owners and excluded from revenue.
"Despite a slowing U.S. economy, Landstar was able to achieve record results in the 2001 first quarter", said Landstar Chairman, President and CEO Jeff Crowe. "Landstar ended the first quarter with 100 fewer trucks than it had at the beginning of the year. Truck terminations during the final four weeks of the 2001 first quarter were approximately the same as the 2000 first quarter. However, new trucks recruited were less than the prior year and as such, less than what was anticipated. The decreased March truck count more than offset the net truck count gains in January and February."
"It is a difficult operating environment for Business Capacity Owners." said Crowe. "At this point, I see Landstar gradually gaining momentum as the year progresses and replacing the lost trucks by year end."
"The trailing 12 months return on average equity for the period ended March 31, 2001 remained high at 41%. I currently anticipate the 2001 year in the range of $5.70 to $6.00 per diluted share. Landstar continues to perform well, demonstrating its ability to generate both good earnings and cash flow in a difficult operating environment."
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.
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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.