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Landstar System Inc. posted strong financial results for the second quarter — though they missed investment analysts’ expectations — and set a record for the first half.
The Jacksonville, Fla.-based truckload carrier said July 20 that net income was $112.6 million, or $3.05 a diluted share, compared with $92.3 million, $2.40, during the same time last year.
Total revenue increased by 26% to $1.98 billion from $1.57 billion.
The results were just below investment analysts’ expectations of $3.25 per share and revenue of $2.02 billion, according to Zacks Consensus Estimate.
The number of loads hauled via truck during the quarter increased 10% year-over-year. But that was still slightly below the low end of its guidance issued in the first quarter.
For the first six months, net income was $237.4 million, $6.39, compared with $169.5 million, $4.41, the year before. Revenue was $3.95 billion compared with $2.86 billion the previous year.
CEO Jim Gattoni said during a call with investors it was the highest first-half revenue in the company’s history.
“Earnings per share in the first half of 2022 exceeded the first half of 2021 by 45%,” Gattoni said. “During the 2022 first half, we also purchased over $212 million of Landstar stock and paid dividend totaling $94 million. Since early 2022, industry data regarding spot market pricing has been showing a significant decrease in year-over-year spot market rates when excluding the impact of fuel costs.”
Gross profit was also a second-quarter record, increasing 19% year-over-year to $208.1 million from $174.8 million.
Variable contribution as defined as revenue less the cost of purchased transportation and commissions to agents also reached a second-quarter high, up 21% to $267.5 million from $220.8 million last year.
Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers in the quarter increased 21% to $1.75 billion from $1.44 billion a year ago. The number of loads increased 10% to 664,800 from 602,940 last year. Revenue per load increased 10% to $2,628 from $2,395. Truck transportation includes truckload, less-than-truckload and other miscellaneous operations.
Truckload transportation revenue hauled via van equipment increased 20% to $1.03 billion from $854.5 million during the prior year quarter.
Truckload transportation revenue hauled via unsided/platform equipment increased 21% to $474.3 million from $391.9 million.
Revenue from other truck transportation, largely related to power-only services, increased 24% to $209.1 million from $168.7 million.
Landstar also noted revenue from rail, air and ocean cargo carriers increased 93% to $202.3 million from $104.6 million last year. Those operations represent 10% of total revenue for the quarter.
Landstar ranks No. 6 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 18 on the TT Top 100 list of the largest logistics companies.
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