Landstar System (LSTR) 8-K Landstar System Reports 31 Percent Increase In Revenue and a 40 Percent Increase In Diluted Earnings Per Share

Exhibit 99.1

Landstar System, Inc.

13410 Sutton Park Drive, South

Jacksonville, FL 32224

904 398 9400

For Immediate Release	Contact: Jim Gattoni
	Landstar System, Inc.
	www.landstar.com
July 14, 2010	904-398-9400

LANDSTAR SYSTEM REPORTS 31 PERCENT INCREASE IN REVENUE AND
A 40 PERCENT INCREASE IN DILUTED EARNINGS PER SHARE

Jacksonville, FL — Landstar System, Inc. (NASDAQ: LSTR) reported a 31 percent increase in revenue to $641.7 million in the 2010 second quarter, up from $491.2 million in the 2009 second quarter. Net income for the 2010 second quarter was $24.4 million, or $0.49 per diluted share, compared to $17.9 million, or $0.35 per diluted share for the 2009 second quarter. Operating income increased 34 percent to $40.0 million in the 2010 second quarter compared to $29.8 million in the 2009 second quarter.

Truck transportation revenue hauled by business capacity owners and truck brokerage carriers in the 2010 second quarter was $592.0 million, or 92 percent of revenue, compared to $453.8 million, or 92 percent of revenue, in the 2009 second quarter. Included in revenue hauled by truck brokerage carriers in the 2010 and 2009 second quarters were $23.1 million and $9.2 million, respectively, of fuel surcharges invoiced to customers. In the 2010 and 2009 second quarters, the Company also invoiced customers $53.1 million and $27.3 million, respectively, of fuel surcharges that were passed 100 percent to business capacity owners and excluded from revenue. Revenue hauled by rail, air and ocean cargo carriers was $35.0 million, or 6 percent of revenue, in the 2010 second quarter compared to $28.2 million, or 6 percent of revenue, in the 2009 second quarter. Transportation management fee revenue generated by the supply chain solutions companies was $6.1 million, or 1 percent of revenue, in the 2010 second quarter.

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Landstar System, Inc. also announced that its Board of Directors has declared a quarterly dividend of $0.05 per share. This represents an 11 percent increase in the Company’s quarterly dividend. The dividend is payable on August 27, 2010 to stockholders of record at the close of business on August 9, 2010. It is the intention of the Board of Directors to continue to pay a quarterly dividend. During the 2010 second quarter, Landstar purchased 510,062 shares of its common stock at a total cost of $20.6 million. Under the Company’s authorized share purchase program, the Company currently has a total of 745,000 shares of its common stock available for purchase.

Commenting on Landstar’s 2010 second quarter, Landstar’s Chairman, President and CEO, Henry Gerkens said, “I am very pleased with the Company’s performance in the 2010 second quarter. 2010 second quarter revenue, operating income and diluted earnings per share all increased sharply over the corresponding 2009 second quarter amounts. Revenue increased 31 percent due to stronger volumes and pricing, operating income increased 34 percent, despite higher purchased transportation costs and insurance and claims costs, and diluted earnings per share increased 40 percent. The total number of truck transportation loads hauled by business capacity owners and truck brokerage carriers in the 2010 second quarter was the highest reported number of truck transportation loads hauled by business capacity owners and truck brokerage carriers in any quarter of any year in Landstar’s history. Additionally, from a pricing standpoint, revenue per load for truck transportation on freight hauled by business capacity owners and truck brokerage carriers continued to strengthen as we moved through the 2010 second quarter.

“The overall freight environment continues to be strong. Recent trends in June, and thus far in July, indicate that both the revenue per load and the number of loads hauled remain strong compared to the corresponding prior year periods. I expect these trends to continue throughout the 2010 third quarter. I would anticipate 2010 third quarter results to be similar to those experienced in the 2010 second quarter. As such, I expect 2010 third quarter revenue to increase in a range of 25 percent to 33 percent over 2009 third quarter revenue and diluted earnings per share to be in a range of $0.47 to $0.52.”

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 5 pm ET. To access the webcast, visit the Company’s website at

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www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Second Quarter 2010 Earnings Release Conference Call.”

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies, expectations and intentions. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “plans,” “predicts,” “may,” “should,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or workers’ compensation claims; unfavorable development of existing claims; dependence on independent sales agents; dependence on third-party capacity providers; disruptions or failures in our computer systems; a downturn in domestic or international economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2009 fiscal year, described in Item 1A Risk Factors, and other SEC filings from time-to-time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.

About Landstar:

Landstar System, Inc. is a non-asset based provider of integrated supply chain solutions. Landstar delivers safe, specialized transportation, warehousing and logistics services to a broad range of customers worldwide utilizing a network of agents, third-party capacity owners and employees. All Landstar transportation companies are certified to ISO 9001:2008 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market^® under the symbol LSTR.

(Tables follow)

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Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)

	Twenty Six Weeks Ended					Thirteen Weeks Ended
	June 26,			June 27,		June 26,			June 27,
	2010			2009		2010			2009
Revenue	$	1,189,809		$	960,411	$	641,721		$	491,164
Investment income		574			675		289			250
Costs and expenses:
Purchased transportation		907,290			717,891		490,089			366,567
Commissions to agents		87,379			78,251		46,971			39,927
Other operating costs		15,504			14,838		7,968			7,388
Insurance and claims		26,129			18,799		13,831			9,797
Selling, general and administrative		73,816			66,612		36,973			32,243
Depreciation and amortization		11,988			11,201		6,196			5,716
Total costs and expenses		1,122,106			907,592		602,028			461,638
Operating income		68,277			53,494		39,982			29,776
Interest and debt expense		1,664			2,136		810			973
Income before income taxes		66,613			51,358		39,172			28,803
Income taxes		25,446			19,607		14,962			10,946
Net income		41,167			31,751		24,210			17,857
Less: Net loss attributable to noncontrolling interest		(446	)		—		(227	)		—
Net income attributable to Landstar System, Inc. and subsidiary	$	41,613		$	31,751	$	24,437		$	17,857
Earnings per common share attributable to Landstar System, Inc. and subsidiary	$	0.83		$	0.62	$	0.49		$	0.35
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$	0.83		$	0.61	$	0.49		$	0.35
Average number of shares outstanding:
Earnings per common share		50,165,000			51,453,000		50,123,000			51,330,000
Diluted earnings per share		50,259,000			51,636,000		50,215,000			51,487,000
Dividends paid per common share	$	0.0900		$	0.0800	$	0.0450		$	0.0400

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Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	June 26,			Dec. 26,
	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	45,081		$	85,719
Short-term investments		33,156			24,325
Trade accounts receivable, less allowance of $5,597 and $5,547		338,877			278,854
Other receivables, including advances to independent contractors, less allowance of $5,543 and $5,797		22,119			18,149
Deferred income taxes and other current assets		22,232			19,565
Total current assets		461,465			426,612
Operating property, less accumulated depreciation and amortization of $133,957 and $124,810		143,505			116,656
Goodwill		57,470			57,470
Other assets		66,662			48,054
Total assets	$	729,102		$	648,792
LIABILITIES AND EQUITY
Current liabilities:
Cash overdraft	$	30,293		$	28,919
Accounts payable		159,548			121,030
Current maturities of long-term debt		24,886			24,585
Insurance claims		34,902			41,627
Other current liabilities		47,180			42,474
Total current liabilities		296,809			258,635
Long-term debt, excluding current maturities		93,956			68,313
Insurance claims		30,022			30,680
Deferred income taxes		23,368			23,013
Equity
Landstar System, Inc. and subsidiary shareholders’ equity
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 66,487,151 and 66,255,358 shares		665			663
Additional paid-in capital		166,292			161,261
Retained earnings		803,126			766,040
Cost of 16,652,344 and 16,022,111 shares of common stock in treasury		(685,506	)		(660,446	)
Accumulated other comprehensive income		681			498
Total Landstar System, Inc. and subsidiary shareholders’ equity		285,258			268,016
Noncontrolling interest		(311	)		135
Total equity		284,947			268,151
Total liabilities and equity	$	729,102		$	648,792

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Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)

	Twenty Six Weeks Ended				Thirteen Weeks Ended
	June 26,		June 27,		June 26,		June 27,
	2010		2009		2010		2009
Revenue generated through (in thousands):
Business Capacity Owners(1)	$	631,736	$	550,665	$	345,595	$	288,600
Truck Brokerage Carriers		466,163		329,479		246,408		165,236
Rail intermodal		34,092		36,728		19,316		17,410
Ocean cargo carriers		20,835		17,518		11,700		8,667
Air cargo carriers		8,562		7,508		3,959		2,121
Other(2)		28,421		18,513		14,743		9,130
	$	1,189,809	$	960,411	$	641,721	$	491,164
Number of loads:
Business Capacity Owners(1)		420,770		365,000		223,020		194,350
Truck Brokerage Carriers		308,330		240,020		158,980		122,370
Rail intermodal		15,490		18,290		8,620		8,710
Ocean cargo carriers		3,110		2,590		1,650		1,350
Air cargo carriers		3,130		5,100		1,630		1,840
		750,830		631,000		393,900		328,620
Revenue per load:
Business Capacity Owners(1)	$	1,501	$	1,509	$	1,550	$	1,485
Truck Brokerage Carriers		1,512		1,373		1,550		1,350
Rail intermodal		2,201		2,008		2,241		1,999
Ocean cargo carriers		6,699		6,764		7,091		6,420
Air cargo carriers		2,735		1,472		2,429		1,153

	June 26,		June 27,
	2010		2009
Truck Capacity
Business Capacity Owners(1) (3)		7,818		8,286
Truck Brokerage Carriers:
Approved and active(4)		16,670		14,827
Approved		9,047		11,082
		25,717		25,909
Total available truck capacity providers		33,535		34,195
Agent Locations		1,343		1,436

(1)	Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.
(2)	Includes premium revenue generated by the insurance segment and warehousing and transportation management fee revenue generated by the transportation logistics segment.
(3)	Trucks provided by Business Capacity Owners were 8,399 and 8,875 at June 26, 2010 and June 27, 2009, respectively.
(4)	Active refers to Truck Brokerage Carriers who have moved at least one load in the past 180 days.