Landstar System Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Landstar System Inc. has submitted its 2023 10-K annual report, providing a comprehensive overview of its financial performance, business operations, and risk factors.</b>

AI Summary

LANDSTAR SYSTEM INC (LSTR) filed a Annual Report (10-K) with the SEC on February 26, 2024. Landstar System Inc. filed its 10-K report for the fiscal year ending December 30, 2023. The report details the company's operations in transportation logistics, including power-only, expedited, and other truck transportation services. Key financial instruments mentioned include U.S. Treasury Securities, Asset-Backed Securities, Corporate Bonds, and Money Market Funds. The company's insurance and claims management are discussed, covering areas like occupational reinsurance, cargo claims, and workers' compensation. Executive compensation plans, including stock options and restricted stock units, are outlined.

Why It Matters

For investors and stakeholders tracking LANDSTAR SYSTEM INC, this filing contains several important signals. The 10-K filing provides investors with detailed financial statements and management's discussion and analysis, crucial for understanding the company's performance and future outlook. This annual report is a key document for assessing Landstar's operational strategies, financial health, and its approach to managing risks within the transportation and logistics sector.

Risk Assessment

Risk Level: medium — LANDSTAR SYSTEM INC shows moderate risk based on this filing. The company faces risks related to its reliance on independent contractors and potential claims, as indicated by the detailed discussion of various insurance policies and claim types (e.g., occupational reinsurance, cargo claims, workers' compensation).

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to assess the potential impact of market conditions and operational risks on Landstar's future profitability.

Revenue Breakdown

Key Numbers

• 2023-12-30 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-26 — Filing Date (FILED AS OF DATE)
• 0000853816 — Central Index Key (COMPANY DATA)
• 4213 — Standard Industrial Classification (SIC Code for Trucking)
• 061313069 — IRS Number (COMPANY DATA)
• 13410 Sutton Park Drive South — Business Street (BUSINESS ADDRESS)
• Jacksonville — Business City (BUSINESS ADDRESS)
• FL — Business State (BUSINESS ADDRESS)

Key Players & Entities

• Landstar System Inc. (company) — FILER
• DE (company) — STATE OF INCORPORATION
• Jacksonville (company) — CITY
• FL (company) — STATE
• U.S. Treasury Securities (regulator) — financial instruments
• Asset-Backed Securities (regulator) — financial instruments
• Corporate Bonds and Direct Obligations of Government Agencies (regulator) — financial instruments
• Money Market Funds (regulator) — financial instruments

FAQ

Risk Factors

• Reliance on Independent Contractors [medium — operational]: The company's business model relies heavily on independent contractors, which presents potential risks related to their availability, cost, and compliance.
• Insurance and Claims Exposure [medium — financial]: Landstar is exposed to significant insurance and claims costs, including workers' compensation, cargo, and general liability, managed through various insurance policies and self-insurance programs.
• Economic Downturns and Freight Demand [medium — market]: Fluctuations in the economy can impact freight volumes and pricing, affecting the company's revenue and profitability.
• Regulatory Compliance [low — regulatory]: The transportation industry is subject to various federal, state, and local regulations that can impact operations and costs.

Industry Context

Landstar System Inc. operates within the trucking and transportation logistics industry, a sector characterized by its sensitivity to economic cycles and regulatory changes.

Regulatory Implications

The transportation sector is subject to extensive regulations from agencies like the Department of Transportation (DOT) concerning safety, emissions, and driver qualifications.

What Investors Should Do

1. Analyze the detailed financial statements and management's discussion and analysis for the fiscal year ended December 30, 2023.
2. Review the risk factors section to understand potential challenges and their mitigation strategies.
3. Assess the company's strategy for managing insurance and claims, given the reliance on independent contractors.

Glossary

Power-Only

Shipments where the Company furnishes a power unit and an operator but not trailing equipment. (Key service offering within their transportation logistics segment.)

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 30, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — he registrant's common stock, par value $0.01 per share (the "Common Stock"), outstan
• $5.3 billion — hroughout North America with revenue of $5.3 billion during the most recently completed fisc
• $1 million — 625 agents that each generated at least $1 million in Landstar revenue (the "Million Dolla
• $10 million — sales agencies that generated at least $10 million in Landstar revenue during the 2023 fis
• $324 million — year 2023, the Company billed customers $324 million in fuel surcharges and passed 100% of s

Filing Documents

• d16653d10k.htm (10-K) — 1569KB
• d16653dex1011.htm (EX-10.11) — 18KB
• d16653dex211.htm (EX-21.1) — 20KB
• d16653dex231.htm (EX-23.1) — 2KB
• d16653dex241.htm (EX-24.1) — 28KB
• d16653dex311.htm (EX-31.1) — 6KB
• d16653dex312.htm (EX-31.2) — 6KB
• d16653dex321.htm (EX-32.1) — 3KB
• d16653dex322.htm (EX-32.2) — 3KB
• d16653dex971.htm (EX-97.1) — 28KB
• g16653g0201215047363.jpg (GRAPHIC) — 5KB
• g16653g0201215047849.jpg (GRAPHIC) — 34KB
• 0001193125-24-044902.txt (&nbsp;) — 8582KB
• lstr-20231230.xsd (EX-101.SCH) — 57KB
• lstr-20231230_cal.xml (EX-101.CAL) — 63KB
• lstr-20231230_def.xml (EX-101.DEF) — 421KB
• lstr-20231230_lab.xml (EX-101.LAB) — 496KB
• lstr-20231230_pre.xml (EX-101.PRE) — 472KB
• d16653d10k_htm.xml (XML) — 1438KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 20 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 22 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 Item 6. Reserved 25 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 64 Item 9A.

Controls and Procedures

Controls and Procedures 64 Item 9B. Other Information 67 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 67 Item 10. Directors, Executive Officers and Corporate Governance 68 Item 11.

Executive Compensation

Executive Compensation 68 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 68 Item 13. Certain Relationships and Related Transactions, and Director Independence 68 Item 14. Principal Accounting Fees and Services 68 PART IV Item 15. Exhibits and Financial Statement Schedules 69

Signatures

Signatures 72 EX – 31.1 Section 302 CEO Certification EX – 31.2 Section 302 CFO Certification EX – 32.1 Section 906 CEO Certification EX – 32.2 Section 906 CFO Certification PART I Item1. Business Introduction Landstar System, Inc. was incorporated in January 1991 under the laws of the State of Delaware and has been a publicly held company since its initial public offering in March 1993. The principal executive offices of Landstar System, Inc. (collectively with its subsidiaries and other affiliated companies referred to herein as "Landstar" or the "Company," unless the context otherwise requires) is located at 13410 Sutton Park Drive South, Jacksonville, Florida 32224 and its telephone number is (904) 398-9400. The Company makes available free of charge through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A and any amendments to those reports filed or furnished pursuant to Section 13(a) and 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission ("SEC"). The Company's website is www.landstar.com. The SEC maintains a website at http://www.sec.gov that contains the Company's current and periodic reports, proxy and information statements and other information filed electronically with the SEC. Description of Business Landstar, is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third party capacity providers and employees. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to comprehensive third party logistics solutions to meet all of a customer's transportation needs. Landstar provides services principally throughout the