Landstar System Inc. Files Q2 2024 10-Q

TL;DR

**LANDSTAR SYSTEM INC (LSTR) FILED Q2 2024 10-Q - CHECK FINANCIALS**

AI Summary

Landstar System Inc. filed its 10-Q for the period ending June 29, 2024. The filing details financial performance and operational aspects of the company, which provides transportation logistics services. Specific financial figures and operational metrics for the second quarter of 2024 are presented within the report.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Landstar System Inc., crucial for understanding the company's performance and future outlook in the transportation sector.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial and operational updates, not indicating any immediate or significant new risks.

Key Numbers

• 2024-06-29 — End of Reporting Period (This date marks the end of the fiscal quarter covered by the 10-Q filing.)
• 20240731 — Filing Date (This is the date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Landstar System Inc. (company) — Filer of the 10-Q
• 2024-06-29 (date) — End of the reporting period
• 20240731 (date) — Filing date
• Jacksonville, FL (location) — Company headquarters and mailing address

FAQ

Key Financial Figures

• $0.01 — he registrant's common stock, par value $0.01 per share, outstanding as of the close

Filing Documents

• d853858d10q.htm (10-Q) — 1018KB
• d853858dex101.htm (EX-10.1) — 1085KB
• d853858dex311.htm (EX-31.1) — 6KB
• d853858dex312.htm (EX-31.2) — 6KB
• d853858dex321.htm (EX-32.1) — 4KB
• d853858dex322.htm (EX-32.2) — 4KB
• g853858g0725040407983.jpg (GRAPHIC) — 4KB
• 0001193125-24-189687.txt ( ) — 6897KB
• lstr-20240629.xsd (EX-101.SCH) — 36KB
• lstr-20240629_cal.xml (EX-101.CAL) — 50KB
• lstr-20240629_def.xml (EX-101.DEF) — 299KB
• lstr-20240629_lab.xml (EX-101.LAB) — 337KB
• lstr-20240629_pre.xml (EX-101.PRE) — 333KB
• d853858d10q_htm.xml (XML) — 813KB

– Financial Information

PART I – Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Consolidated Balance Sheets as of June 29, 2024 and December 30, 2023 Page 5 Consolidated Statements of Income for the Twenty-Six and Thirteen Weeks Ended June 29, 2024 and July 1, 2023 Page 6 Consolidated Statements of Comprehensive Income for the Twenty-Six and Thirteen Weeks Ended June 29, 2024 and July 1, 2023 Page 7 Consolidated Statements of Cash Flows for the Twenty-Six Weeks Ended June 29, 2024 and July 1, 2023 Page 8 Consolidated Statements of Changes in Shareholders' Equity for the Twenty-Six and Thirteen Weeks Ended June 29, 2024 and July 1, 2023 Page 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Page 11

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Page 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk Page 32

Controls and Procedures

Item 4. Controls and Procedures Page 33

– Other Information

PART II – Other Information Item1. Legal Proceedings Page 34

Risk Factors

Item 1A. Risk Factors Page 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Page 35

Other Information

Item 5. Other Information Page 35

Exhibits

Item 6. Exhibits Page 35

Signatures

Signatures Page 37 2 Table of Contents 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 3 Table of Contents PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The interim consolidated financial statements contained herein reflect all adjustments (all of a normal, recurring nature) which, in the opinion of management, are necessary for a fair statement of the financial condition, results of operations, cash flows and changes in shareholders' equity for the periods presented. They have been prepared in accordance with Rule 10-01 of Regulation S-X and do n ot include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the twenty-six weeks ended June 29, 2024 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 28, 2024. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2023 Annual Report on Form 10-K. 4 Table of Contents LANDSTAR SYSTEM, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) (Unaudited) June 29, 2024 December 30, 2023 ASSETS Current Assets Cash and cash equivalents $ 438,062 $ 481,043 Short-term investments 65,959 59,661 Trade accounts receivable, less allowance of $ 11,697 and $ 11,738 724,479 743,762 Other receivables, including advances to independent contractors, less a llowance of $ 15,974 and $ 14,010 42,117 43,339 Other current assets 44,568 24,936 Total current assets 1,315,185 1,352,741 Operating property, less accumulated depreciation and amortization of $ 449,364 and $ 436,682 285,995 284,300 Goodwill 41,607 42,275 Other assets 112,417 122,530 Total assets $ 1,755,204 $ 1,801,846 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Cash overdraft $ 58,358 $ 61,541 Accounts payable 401,535 395,980 Current maturities of long-term debt 27,980 27,876 Insurance claims

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The consolidated financial statements include the accounts of Landstar System, Inc. and its subsidiary, Landstar System Holdings, Inc., and reflect all adjustments (all of a normal, recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. The preparation of the consolidated financial statements requires the use of management's estimates. Actual results could differ from those estimates. Landstar System, Inc. and its subsidiary are herein referred to as "Landstar" or the "Company." Significant intercompany accounts have been eliminated in consolidation. (1) Significant Accounting Policies Revenue from Contracts with Customers – Disaggregation of Revenue The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent C o ntractors and Truck Brokerage Carriers generated by equipmen t t ype during the twenty-six-week and thirteen-week periods ended June 29, 2024 and July 1, 2023 (dollars in thousands): Twenty-Six Weeks Ended Thirteen Weeks Ended Mode June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Truck – BCO Independent Contractors 38 % 37 % 38 % 38 % Truck – Truck Brokerage Carriers 52 % 55 % 52 % 53 % Rail intermodal 2 % 2 % 2 % 2 % Ocean and air cargo carriers 5 % 5 % 6 % 5 % Truck Equipment Type Van equipment $ 1,247,244 $ 1,458,124 $ 618,940 $ 703,041 Unsided/platform equipment $ 723,995 $ 772,336 $ 380,950 $ 394,772 Less-than-truckload $ 53,707 $ 62,673 $ 28,090 $ 31,115 Other truck transportation (1) $ 149,675 $ 277,520 $ 77,709 $ 118,017 (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transpor