Oct. 14, 2009 (PR Newswire) --
JACKSONVILLE, Fla., Oct. 14 /PRNewswire-FirstCall/ -- Landstar System, Inc. (Nasdaq: LSTR) reported 2009 third quarter net income of $20.1 million, or $0.39 per diluted share, from revenue of $500.7 million. Net income for the 2008 third quarter was $32.8 million, or $0.62 per diluted share, from revenue of $732.8 million. Included in the 2008 third quarter was net income of $1.7 million, or $0.03 per diluted share, from $27.6 million of revenue for bus capacity provided for evacuation assistance related to the storms that impacted the Gulf Coast in September 2008.
Revenue hauled by third-party truck capacity providers in the third quarter of 2009 was $455.9 million, or 91 percent of revenue, compared to $646.7 million, or 88 percent of revenue, in the 2008 third quarter. Included in revenue hauled by third-party truck capacity providers in the 2009 and 2008 third quarters were $12.3 million and $41.9 million, respectively, of fuel surcharges invoiced to customers on revenue hauled by third-party truck brokerage carriers. In the 2009 and 2008 third quarters, the Company also invoiced customers $36.2 million and $92.5 million, respectively, of fuel surcharges that were passed 100 percent to third-party BCO Independent Contractors and excluded from revenue. Revenue hauled by rail, air and ocean cargo carriers was $31.1 million, or 6 percent of revenue, in the 2009 third quarter compared to $49.1 million, or 7 percent of revenue, in the 2008 third quarter.
Revenue in the thirty-nine-week period ended September 26, 2009 was $1.46 billion compared to $2.04 billion for the 2008 thirty-nine-week period. Net income for the thirty-nine-week period ended September 26, 2009 was $51.8 million, or $1.00 per diluted share, compared to net income of $86.3 million, or $1.62 per diluted share, for the thirty-nine-week period ended September 27, 2008.
Revenue hauled by third-party truck capacity providers in the 2009 thirty-nine-week period was $1.34 billion, or 91 percent of revenue, compared to $1.84 billion, or 90 percent of revenue, in the 2008 thirty-nine-week period. Included in revenue hauled by third-party truck capacity providers in the 2009 and 2008 thirty-nine week periods were $31.3 million and $109.6 million, respectively, of fuel surcharges invoiced to customers on revenue hauled by third-party truck brokerage carriers. In the 2009 and 2008 thirty-nine week periods, the Company also invoiced customers $87.7 million and $240.6 million, respectively, of fuel surcharges that were passed 100 percent to third-party BCO Independent Contractors and excluded from revenue. Revenue hauled by rail, air and ocean cargo carriers was $92.8 million, or 6 percent of revenue, in the 2009 thirty-nine-week period compared to $146.4 million, or 7 percent of revenue, in the 2008 thirty-nine-week period.
Landstar System, Inc. also announced that its Board of Directors has declared a quarterly dividend of $0.045 per share. The dividend is payable on November 27, 2009 to stockholders of record at the close of business on November 2, 2009. It is the intention of the Board of Directors to continue to pay a quarterly dividend. During the 2009 third quarter, Landstar purchased 516,000 shares of its common stock at a total cost of $17.9 million bringing the total number of common shares purchased during the thirty-nine weeks ended September 26, 2009 to 959,700 shares at a total cost of $31.7 million. Under the Company's authorized share purchase programs, the Company currently has a total of 2,040,000 shares of its common stock available for purchase.
Trailing twelve month return on average shareholders' equity remained high at 29 percent and trailing twelve month return on invested capital, net income divided by the sum of average equity plus average debt, was 21 percent.
"In the 2009 third quarter, Landstar's revenue continued to be negatively impacted by the recession in the domestic and global economies," said Landstar President and Chief Executive Officer Henry Gerkens. "As was the case in the 2009 second quarter, revenue declines were experienced across multiple sectors affecting a broad range of accounts. Notable 2009 third quarter over 2008 third quarter revenue declines continued to be generated from the U.S. Department of Defense as well as with respect to our substitute line haul service offering. On a positive note, revenue generated from the automotive sector began to improve for the first time in a couple of years.
"The number of loads hauled in the 2009 third quarter decreased only 11 percent compared to the 2008 third quarter, an improvement from the 16 percent decline experienced in the 2009 second quarter compared to the 2008 second quarter. The number of loads hauled in the 2009 third quarter increased 1 percent over the 2009 second quarter while the number of loads hauled in the 2008 third quarter was 5 percent lower than the number of loads hauled in the 2008 second quarter. I believe this is a clear indication that the decrease in demand that began during the latter part of the 2008 third quarter will provide for easing volume comparisons into the Company's 2009 fourth quarter and continuing into 2010.
"Revenue per load began to stabilize during the 2009 third quarter. On a sequential basis, average revenue per load with respect to the Company's truck transportation services in the 2009 third quarter was approximately equal to the average revenue per load in the 2009 second quarter. The general pricing environment, however, still remains somewhat challenging.
"As a direct result of Landstar's variable cost business model and other cost reduction actions taken in 2009, Landstar was able to generate an operating profit margin of 6.5 percent, despite the very difficult operating environment. Additionally, Landstar's net revenue margin, defined as revenue less purchased transportation and commissions to agents divided by revenue, was 17.7 percent, in the 2009 third quarter, up from 14.8 percent in the 2008 third quarter."
Gerkens continued, "I see a gradually improving overall freight environment, and I believe that the worst is over. I am cautiously optimistic as we close out 2009. The very difficult revenue comparisons to prior year experienced by Landstar throughout 2009 will continue to ease throughout the 2009 fourth quarter.
