Landstar System, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 30, 2017; Provides Earnings Guidance for the First Quarter of 2018
January 31, 2018 at 04:36 pm
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Landstar System, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 30, 2017. For the quarter, the company reported revenue of $1,051,592,000 against $892,829,000 a year ago. Operating income was $70,049,000 against $63,765,000 a year ago. Income before income taxes was $69,442,000 against $62,696,000 a year ago. Net income was $64,683,000 against $39,574,000 a year ago. Net income attributable to company and subsidiary was $64,752,000 against $39,574,000 a year ago. Diluted earnings per share attributable to company and subsidiary were $1.54 against $0.94 per share a year ago.
For the year, the company reported revenue of $3,646,364,000 against $3,167,634,000 a year ago. Operating income was $243,968,000 against $223,251,000 a year ago. Income before income taxes was $240,802,000 against $219,457,000 a year ago. Net income was $176,996,000 against $137,350,000 a year ago. Net income attributable to company and subsidiary was $177,088,000 against $137,350,000 a year ago. Diluted earnings per share attributable to company and subsidiary were $4.21 against $3.25 per share a year ago. Cash flow from operations was $138,963,000 against $190,242,000 a year ago. Capital expenditures were $24,046,000 against $22,645,000 a year ago. Cash capital expenditures were $15.6 million.
For the first quarter, the company expects revenue for the 2018 first quarter to be in a range of $925 million to $975 million. Assuming that range of estimated revenue, the company would anticipate 2018 first quarter diluted earnings per share to be in a range of $1.22 to $1.27 per share. The estimated range of diluted earnings per share assumes insurance and claims costs at 3.5% of BCO revenue, representing the historical annual average of insurance and claims costs to BCO revenue over the previous 5 years, and an annual effective income tax rate of approximately 24.5%, prior to any discrete items that may occur in 2018. The company also expects gross profit margin to be in a range of 14.7% to 14.9% in the 2018 first quarter compared to 15.6% in the 2017 first quarter, a decrease in gross profit margin as compared to the 2017 first quarter is mostly due to a greater percentage of revenue hauled via truck broker carriers. The company also expects to increase cash flow based on the tax reform. Capex is expected to be $40 million.
Landstar System, Inc. is a technology-enabled, asset-light provider of integrated transportation management solutions delivering specialized transportation services to a range of customers utilizing a network of agents, third-party capacity providers and employees. The Company operates through two segments. Transportation logistics segment provides a range of integrated transportation management solutions. Transportation services offered by the Company include truckload, less-than-truckload and other truck transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, United States-Canada and United States-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. Insurance segment consists of Signature Insurance Company and Risk Management Claim Services, Inc. The insurance segment provides risk and claims management services to certain of Landstars Operating Subsidiaries.
Landstar System, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 30, 2017; Provides Earnings Guidance for the First Quarter of 2018