Landstar System Inc. Files Q3 2024 10-Q

TL;DR

Landstar's Q3 10-Q is in: check financials for trucking segment performance.

AI Summary

Landstar System Inc. filed its 10-Q for the period ending September 28, 2024. The filing details financial performance and operational updates for the third quarter. Key financial metrics and business segment revenues are presented, including specific figures for power-only, expedited, and other truck transportation services.

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 in the trucking and logistics sector.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• Q3 — Quarter (Reporting period for the 10-Q filing.)
• 1230 — Fiscal Year End (Indicates the company's fiscal year concludes on December 30th.)

Key Players & Entities

• LANDSTAR SYSTEM INC (company) — Filer
• 0000853816 (company) — Central Index Key
• 20240928 (date) — Period of Report
• 20241030 (date) — Filed as of Date
• 9043989400 (dollar_amount) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• d858305d10q.htm (10-Q) — 1265KB
• d858305dex311.htm (EX-31.1) — 6KB
• d858305dex312.htm (EX-31.2) — 6KB
• d858305dex321.htm (EX-32.1) — 3KB
• d858305dex322.htm (EX-32.2) — 3KB
• g858305g1024065108560.jpg (GRAPHIC) — 4KB
• 0001193125-24-247331.txt ( ) — 6251KB
• lstr-20240928.xsd (EX-101.SCH) — 39KB
• lstr-20240928_cal.xml (EX-101.CAL) — 50KB
• lstr-20240928_def.xml (EX-101.DEF) — 313KB
• lstr-20240928_lab.xml (EX-101.LAB) — 351KB
• lstr-20240928_pre.xml (EX-101.PRE) — 348KB
• d858305d10q_htm.xml (XML) — 978KB

– Financial Information

PART I – Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Consolidated Balance Sheets as of September 28, 2024 and December 30, 2023 Page 5 Consolidated Statements of Income for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023 Page 6 Consolidated Statements of Comprehensive Income for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023 Page 7 Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended September 28, 2024 and September 30, 2023 Page 8 Consolidated Statements of Changes in Shareholders' Equity for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023 Page 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Page 11 Item2. Management's Discussion and Analysis of Financial Condition and Results of Operations Page 21 Item3. Quantitative and Qualitative Disclosures About Market Risk Page 34 Item4. Controls and Procedures Page 34

– Other Information

PART II – Other Information Item1. Legal Proceedings Page 35 Item1A. Risk Factors Page 35 Item2. Unregistered Sales of Equity Securities and Use of Proceeds Page 36 Item5. Other Information Page 37 Item6. Exhibits Page 37

Signatures

Signatures Page 39 2 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 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 not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the thirty-nine weeks ended September 28, 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 LANDSTAR SYSTEM, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) (Unaudited) September 28, 2024 December 30, 2023 ASSETS Current Assets Cash and cash equivalents $ 468,830 $ 481,043 Short-term investments 62,451 59,661 Trade accounts receivable, less allowance of $ 12,134 and $ 11,738 694,633 743,762 Other receivables, including advances to independent contractors, less allowance of $ 16,759 and $ 14,010 51,533 43,339 Other current assets 33,947 24,936 Total current assets 1,311,394 1,352,741 Operating property, less accumulated depreciation and amortization of $ 456,770 and $ 436,682 289,248 284,300 Goodwill 41,122 42,275 Other assets 115,491 122,530 Total assets $ 1,757,255 $ 1,801,846 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Cash overdraft $ 50,746 $ 61,541 Accounts payable 397,908 395,980 Current maturities of long-term debt 27,672 27,876 Insurance claims 43,370

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 Contractors and Truck Brokerage Carriers generated by equipment type during the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (dollars in thousands): Thirty-Nine Weeks Ended Thirteen Weeks Ended Mode September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Truck – BCO Independent Contractors 38 % 38 % 38 % 39 % Truck – Truck Brokerage Carriers 52 % 54 % 52 % 52 % Rail intermodal 2 % 2 % 2 % 2 % Ocean and air cargo carriers 6 % 5 % 6 % 5 % Truck Equipment Type Van equipment $ 1,851,237 $ 2,123,693 $ 603,993 $ 665,569 Unsided/platform equipment $ 1,093,753 $ 1,150,483 $ 369,758 $ 378,147 Less-than-truckload $ 77,902 $ 90,770 $ 24,195 $ 28,097 Other truck transportation (1) $ 242,853 $ 379,471 $ 93,178 $ 101,951 (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportat