LSTR - Earnings call transcript Q1 2018

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Operator

Good morning and welcome to Landstar System, Inc.'s First Quarter 2018 Earnings Release Conference Call. All lines will be in a listen-only mode until the formal question-and-answer session. Today's call is being recorded.

If you have any objections, you may disconnect at this time.

Joining us today from Landstar are Jim Gattoni, President and CEO; Kevin Stout, Vice President and CFO; Pat O'Malley, Vice President and Chief Commercial and Marketing Officer; Joe Beacom, Vice President and Chief Safety and Operations Officer.

turn over to Mr. like I'd the to call Now, Jim Gattoni. begin. Sir, may you

James B. Gattoni

you, welcome call. earnings and Good Landstar's Thank morning quarter to Caroline. XXXX first conference

we call Litigation forward-looking Reform The of following facts XXXX. Harbor read are during let statements. not Act under is this based made conference historical statement Securities a Safe are Before statement. Private the Statements begin, that me following the on

in and plans, filings to and forward-looking materially strategies differ should anticipated. publicly statements make expectations. forward-looking During operational, time. this limited detailed Landstar's update Risk contain could Form not for risks information SEC or by business reliance that uncertainties we to, and in legal objectives, uncertainties revise including, place any section, XX-K those is, conference time such no information risks historical the that relates actual from to results information and and events information. described the cause forward-looking Such undue Investors Landstar to results may the subject fiscal undertakes or These but Factors XXXX and obligation Landstar's or call, to nature, financial risks, from to other on not year,

first quarter financial the XXXX history. by best was performance far Our quarter performance first Landstar in

were quarter and records. share income First all-time gross operating diluted were per quarterly both earnings while revenue and first quarter profit records,

range meeting $X.XX analysts revenue first per to Securities per April million from our billion guidance of During sellside range X, to Exchange conference to our and earnings Convention, revenue in share XXXX earnings in quarter and of we diluted in a and quarter of X, updated million the Commission in diluted anticipation April $X.XX $X.XXX be On X-K Form share a guidance year a end earnings Annual a to was XXXX $X.XXX of of billion $X.XX. that Agent filing for providing $XXX XXXX with first be in with with $X.XX. on provided that a held in to range range a we $XXX conjunction call, to

hauled quarter range initial the first first loads upper Our anticipated truck single-digit in XXXX quarter mid-teen of to in revenue XXXX a an exceed hauled range. to via per load the percentage exceed percentage number year the truck and via prior on in guidance loads

and via by diluted in and via first XXXX our loads and quarter loads on higher industries. in on were via quarter. January, of truck guidance was per on the the revenue mid load the than picked over truck first The the loadings to carried updated Seasonally, through March, We Revenue per amongst the decrease month typically XXXX the in February loads first to earnings experienced load via both Revenue loads each strength March. month up a load ocean XX% in on XX% Revenue month broad-based seasonal via and in we January. February The Our normal truck ocean driven and customers load we in again from as remained XX% and generally in in was increased the the loads, $X.XX, to quarter. December January first results hauled via The prior by increase elevated upper on was initially experienced customers first September original hauled February the many loadings hauled changes also a both increased $X.XXX in guidance. February billion hauled in and XXXX amongst each carriers within while loads in the and X.X% actual per truck from revenue and in loads more truck Loads quarter. in air market pricing updated broad-based. guidance. recently revenue on XXXX growth in hauled basis. number per revenue broad-based, year near high prior over above XXXX hauled quarter per air via first The quarter via increased volumes truck and of rail, XX% is air range our XXXX increase end which single-digit loads share XX% to and year revenue of a per that part truck and and was XX% by from consistent XXXX. load, XX% that over the rail load XXXX December with quarter, hauled on first number in quarter, truck of of a increasing trend quarter. tight a experienced month XX%, per the over of ocean many of respectively. the load record high anticipated loads latter exceeded was XX% per per XX% increase of loads first our began January was decreased load the in January March, only Sequentially hauled truck a truck in spread continuation month-to-month hauled increase the revenue rail, the clear indication

in agents trucks in the agent count. during candidates typically by year. $XX.X any the trucks owners, in XXXX business experienced in of from trucks agent quarter of the BCOs provided improved capacity our ended the much with million model. decrease XXX XXXX to million number a quarter. XXXX remains above end the revenue to record X,XXX provided We net continue year a quarter pipeline by quarter, first We $XX.X agents new Revenue the new full. We was attract first first the over qualified from The

similar first number of quarter. recruited first BCOs During a the quarter, to XXXX XXXX compared the we

BCO attract we to quality ability fewer XXXX prior However, first of year's capacity XXXX first trucks the via loads truck X% during the Loads truck BCO in tight compared quarter utilization, increase capacity quarter. in the net XXXX the per over first truck XXXX truck to the higher on to per in quarter. increase in first X% quarter, terminations first hauled and a experienced a market. speaks defined Overall, in count quarter BCOs as increased number quarter the the as BCO

the record expected, behalf had mandate first had quarter. of We the XXXX third-party on broker quarter. during number our a productivity XXXX insignificant ELD haul the on impact BCO an in As carriers first freight

ever continues the quarter prior Our network strong to that third-party profit percentage over our Gross year disaster increased growth, quarter compared included excluding and is first to truck capacity. attract XXXX highest relief. quarter, periods XX% significant

his quarter first review other is information. with Here financial of Kevin

L. Kevin Stout

covered first Jim Thanks, Jim. has XXXX certain on information our quarter.

to rate partially was XXXX. offset Operating tax $XX.X excess impacted provision included $XXX.X was of revenue compared due compensation Gross operating revenue compensation increase XXXX. profit, expense mostly XXXX income benefits XXXX to various in cover million due Quarterly from SG&A in was or XXXX. or $XX press Update in first less The in decreased the revenue purchased rate release. than was of Commissions increase a brokerage was was incentive million quarter and in to The expense XXXX by income first and net XXXX-XX. The group. million were of million due as points first Insurance margin, XXXX. company's XX.X% in in insurance XX.X% stock the for attributable year-over-year. tax by stock primarily in approximately net tax tax and BCO XX.X% quarters, quarter. in wages transportation hauled This Standards of brokerage were XXXX. driven XXXX. the the agents, in insurance in percentage trailers. were common the Cuts costs revenue XXXX in gross costs. effective revenue the increased quarter the an $XX.X revenue quarter SG&A XX% million XXXX year from general operating the was quarter to profit in million $X.X an The less rate $XX.X XXXX gross effective transportation claims The the compared first as Stock impacted cost compared of under first XX revenue XX% in benefits was equipment both in the to of costs to to rate million $X also XXX insurance The XX.X% the to and first of in truck Act and basis to unfavorable increase in profit first development prior quarter XX.X% quarter million in quarter million the commissions XX.X% in $XX.X XXXX in costs in $XXX.X quarter first increased decreased compared by increase Jobs paid to in period. a increased number versus as XXXX increased of XXXX financial related of by in expense and purchased favorably Accounting in claims to bonuses increase XXXX. company-owned was increased of information XXXX quarter in in million were the to Depreciation SG&A was paid will prior the was and information the first carriers gross and agents basis XXXX revenue rate quarter the XX.X% XXXX. increased carriers. provision a compared Total respectively. the primarily to versus bad quarter the was increased resulting the in and of first and XXXX XXXX. and in lower XX.X% claims The as XXXX. in million by and the dispositions income compared truck profit periods XXXX were The Operating of administrative points cost million to the costs to the or was other in compensation compared disqualifying first XXXX the effective represented compared increase debt. was to X% margin million transportation percent first I $X.X XX% increase in by and of the compensation XXXX to the technology claims to XX.X% defined So, $XX.X cost quarter first million trailing X.X% profit claims to quarter incentive costs XXXX XXXX compared XXXX in purchased in loads $X.X XXXX Tax attributable XXXX. compared the tax of quarter costs $XX.X $X.X million This XXXX Selling, in contractor plans, year The Other $XX million gross the quarter. income on of in for to expense $X.X amortization mostly increased and the to company's higher increase and for increased

$X sheet, and was purchase and Looking capital with ended at of Cash you, flow quarter our There currently available $XX we $XXX Back for cash balance shares Jim. expenditures to from company's million were the program. million. million. for purchase cash short-term XXXX the stock operations are under X,XXX,XXX investments

James B. Gattoni

Thanks, Kevin.

our the XX.X% to to will quarter. second As it in quarter revenue XX.X% expectations, to quarter the third relates load a generally assuming truck profit to to gross lower percentage tight. and is a expect low margin XXXX capacity the quarter via truck single-digit be prices second first range hauled capacity quarters per and Seasonally, first quarter, on of anticipate be in on second, remain fourth than continue stable the in I remains fuel tight. second I loads the increases from truck and the range typically

Overall, quarter across experienced costs range. trends, loads on $X.XXX insurance quarter be XXXX load billion. the highest revenue X.X% load the number billion view, loads XXXX in to lower and first of first via a has revenue $X.XXX XX% on $X.XX assuming increases on fact to hauled revenue, the quarter normal extremely of a In all start loads company's Landstar the range over on on to range all via a was quarter number the to of experiencing truck. achieved percentage double-digit via significant earnings a in to hauled quarter XXXX of trends April, the in the quarter increase overall to continuation first loads quarter increased hauled therefore number second of revenue range. of second Therefore, I'm for recent second increase loads the a by XXXX loads of normal quarter per via company's quarter. two revenue in XXXX in we to in those the to XXXX. in second of decades percentage first hauled XX% on compared that pleased over quarter and I we to per I and first approximately continuation and to single-digit Based truck approximately expect history. were the the prior anticipate from revenue been of firing XX%. second in the XXXX per is income truck year earnings early been expect double-digit to the environment in number BCO the normal ever as highest claim continue normal impressive increase XXXX seasonal quarter seasonal $X.XX. the increases first in of load cylinders. in XXXX hauled strong operating range be quarter revenue More second in than in March, a revenue quarter to an truck truck per currently quarter modes. anticipate I Landstar the our with In a diluted per trend. expect was upper I During gross seasonal any second to that first point range Generally, hauled the diluted quarter of via and XX% Landstar increase and second low a results the last have quarter of and share any I in Based revenue seasonal higher is the be the as XXXX in history. share the expect the profit from

focus available on and continue to increasing capacity growth We profitable volume loads. load our haul to those

setting focused provide strategic continually small historic on remain technology-based is our to another be history. for surpassing year business the Caroline, up to network. anniversary take that, enhance XXXX our also to of in and look in questions. company's priority first will we for we owners Landstar And XXth the the tools We billion time as annual our celebrate for in by $X revenue with thousands

Operator

much, Thank you sir. very

Our first question Atkins or from comment comes from Jack Stephens.

open. line is Your

James B. Gattoni

Good morning, Jack.

Jack Atkins

a Hey, start Jim, on good the Congratulations year. to great morning.

James B. Gattoni

Thanks.

Jack Atkins

like sort to comments progress could are start sort lot a you I produce stronger So, bit the you stronger from of if than off expand much I if a just where this think wondering could quarter? first sort how start of here, April continuing seasonality so of get is go had a though we normal of people are here after normal sort of seasonal I than expected in around and year seems to we've of seeing on far It season. and even little a slower

crystal year anything, of So, that's sort think you how rest right just environment for operating see look into you do a now? ball What kind out? if maybe the out this the of strong of minute and playing could if derail, there the curious could you just

James B. Gattoni

knows the for got I see over last six the find mean, months, still those. everybody the don't truck which it. to been relatively anything high in you drivers orders short-term, derailing Jack, I have

and see of against slowing a right and and side quarter. be is impact the is summer. then the don't So, the you don't got over right? from, I started the that September, high bit basis tougher but But confidence, to derailing that but X%, only thing six now, with see about And I demand all anticipate confidence, unemployment in going trucks we apparently (XX:XX) shorter-term, in system can to than shorter-term, business to little this a seems that impact from hitting the into the going the into then brings the those mean in The more drivers the say where when about you what's demand months, be much. the might don't quarter environment fourth assets can do very doing bring So, us you to want, quarters you we'll three again, and down. actually fourth first come now it pump the I I, manufacturing three to short-term your consumer year, clearly buy there's got well the anticipate what is so high I so orders anything think start going comparable I you side

Jack Atkins

okay. then Kevin, that. you, of Okay, for sense my guess Thank I for year. if question, And could cash for for you your maybe for this kind us outlook a follow-up you flow free give

corporate but got in this you million last XXXX, You in year, cash lower year. guys rate free guys cash a you generated $XXX were high tax taxpayer flow

got earnings. You higher

year-over-year same free as you flow going good expect would are likely well. a bit basis, capital to better looking cash for the is working guys a but I so, on And at be time much higher

help there us thinking of flow trajectory help kind through So, you are could and in all and takes puts cash you the us through of how think kind think the free about XXXX? of

L. Kevin Stout

income going tax, changes but the going of Yeah, Obviously, we're cash Jack. – there, $XX million probably net to tax the to the way at it's looking more in the million. $XX to add help is

on right So, now free cash million range that range. $XXX flow somewhere to is $XXX the in our million,

Jack Atkins

great. That's

much. guys, very thanks Okay,

Operator

Thank you.

Deutsche from question Mehrotra is Our next or from comment Amit Bank.

line open. is Your

James B. Gattoni

Good morning.

Amit Mehrotra

Congrats guys. results. on the Hey, thanks, good

First going the guess its demand, answer but just question, one wanted I to ask I is broad-based. I to on be guess

that. So, count. BCO question But the on the I'm in not even ask going to first acceleration the is

the market. not any to how the shift are seeing backdrop guess think that's are count, the given thinking you obviously think especially BCOs But, obviously respect inflationary further the you maybe seems all Landstar the thoughts of there with given I in I progress evolving at industry to the economics the the a pressures non-traditional question part of of across Thanks. light that's just any kind given brokerage some respect in platforms. It in how in positive with but about different pay, of driver being on the network? increase

Joseph J. Beacom

In the in time a the an always good to a BCOs Amit, the seeing environment Beacom. but here got anytime only pay a is of been percentage I the standpoint this pricing that's good from network Joe we it and rising for what up got We've Sure. strong paying a again goes to think is advantage pay where to add a Yeah, let that's on environment the addition hands recruiting goes and the where of up, basis, in. also opportunity us right? environment, them and prices, BCOs we've trying So, very take information of not we're pretty retention just a environment, from we're good and on put BCOs percentage. you're demand

look XX% a up That's we're pretty load just opportunity significant on – the pay recruit pretty and was our good the of that. at think you results If in revenue a XX% and per seeing quarter increase to and first it's that we I strongly BCOs.

Amit Mehrotra

I seeing so any BCO those guys, I count pay potential more question know fragmented the is I that? shifts – seeing any or you that just percentages is the Yeah. percentage a that are they on not in if mean guess you basis, really but you're

Joseph J. Beacom

any percentage I'm programs. our sorry. No, anticipating no, to we're changes not

Amit Mehrotra

I especially the do, to of that. could to given Okay. that imagine and spend, do technology doing, And leverage $XX that XX the could just that it's technology just some million already some you I maybe maybe OpEx on us may to seems investments these think what over initiatives platforms you're next but there's being a which initiatives? us that hard Could year understand, what you you made could than months help where XX evolve those update think then is if better the on even online are

James B. Gattoni

Yeah.

about all But user-friendly we to our spend to and management spend probably million $X core what out incremental which to $XX year. more maintenance new we we upgrades to continue when rolled from million stuff about stuff we in expect over the over apps – – and next system all enhancements for runs much the some of year, maybe standpoint three, converting delivery IT, is million talk whole technology for is that which the transportation mobile the a year new but $XX order today. have a about just a two, a Our for And and four incremental it bunch then an – is last years. than

Amit Mehrotra

this from bit over but great. I XX question late, because then the you Okay, last asked have down I chunks actually repurchased deployment a was And hopped That's previously strategy, me, on slowed obviously last if pretty obviously stock or cash don't nice guys I know year. every years little significantly. consistently so, the mean

is cash we given should thinking of special I to so, now basically price excess form deployment – about expect in more to that? dividends stock cash shareholders how And the are where mean accrue the or you

James B. Gattoni

No.

to of last look months in over the looking really tax of you're the believe, valuation, has I XX-month period at a was the stock December, significant over we in XXXX think what those when at and of speculate September done right? we market if from you I where XX reform conditions it on up going look to didn't end the back what we market more we When on weren't was of you – we we a weren't market, on the watched shareholders similar the at we the special. the for so, to to back just what a through so in going – it's is doing in XXXX dividend market we it and economic a special and ended gave XXXX while happen weren't speculate or did

same on you – but buyback expectation at the history, we'd if in a did is we and in our buybacks more if our we in quarter, expectation but into share to we back did program we always the get closed ever a is our hopefully our our going position have, special, the philosophy continue first in and we're on window still that periods quarter and Our it's and philosophy to look up we buyback and is than program. special, is the buyback have share during first market XXXX focus did end continue program we XXXX probably the

Amit Mehrotra

Yeah.

and basically earnings your value reform assessment true So, the what has the the equity of power... tax recalibrated

James B. Gattoni

Yes.

Amit Mehrotra

...of this could company be.

James B. Gattoni

Yes.

Amit Mehrotra

Yeah, that makes sense.

Thanks upwards. it. Okay, guys. much and onwards I appreciate so

James B. Gattoni

Yeah.

Operator

you. Thank

or next from is question Susquehanna. comment Our from Majors Bascome

is line open. Your

Bascome Majors

congratulations great Yeah, on quarter another good and here. morning

the start lapping you the getting I and you Landstar. a or but great cycle model guide understand XX%-plus growth the for kind start price like companies, asset-based trying asset you to, I quarter in Landstar year, are that pricing the you versus light of spot so this asset trucking beginning not are cycle in alluded mean next also sweet better truckload I these the As really two of disadvantage think performs fourth of asking you the mean you Jim, really once other as of you're other digits think at be growing question the going as source positioned to reliable but do into a later even To to how where you're more volumes on moves might we into piece arguably and where of more where cycle as double decade your year follow you increases, capacity lights for customers. of it. of am we're or to Jack's from part the this earlier, up kind competitors? get

James B. Gattoni

volumes, a Our influence world. focus live over don't on pricing. is have right? of a We market in lot spot We

past enhance is the in keep out look adding drive and technology if us just BCOs some with we volumes than I over experience provide in that rolled mobile the capacity, not volumes. our to think summer user-friendly at team system. the had more So, apps think probably agent for of easier, family, better the and And our charged helps our the you but our I we

the to going So, to see those that's and of in new our – in look that what don't I – to get have most – comps always a you significant kind see XXXX we have reacts say the look volumes. end at at to the we look but how that. toward that upgrades a again want model the the tougher, how next back an over downturn, to environment dire is extreme environment get enhancements year, how that the maybe been I XX on and the forward to of of months the that since focus are I downturn Landstar six is and impact when react Landstar in has XXXX economic

Our is our environment model in relatively a XX% spreads like margin, on are great remember, a So, business our this, right? of kind of fixed fixed.

true model really I still the that's of asset model goal a the to growth margin sure focus. perspective Pat model a at with really and cycle just and and it light front to margins industry system. opportunity proper on guys any how of understands margins kind capacity the But pushing But, stable kind system through in the it gross think volumes volumes the from our in those, a O'Malley's profit to the what end pushing the sales volume peers. load So, support the I Landstar relatively and everybody environment reacts in our it through environment industry, of the and and we us expand protects making we of working understands system happens but have right? So, the just in rest it's that downturn, the the in to being team, comparative is the the with the our and – support customers because our of working Joe's basis with focus agents have in XX% as and really compares fixed stable that's team more but environment, in think

Bascome Majors

that I appreciate color.

gain always a it it right as now, get sounds you you even and share where is pricing, is (XX:XX) but price the the don't it control like tougher? love certainly comps So,

James B. Gattoni

Yes.

Bascome Majors

All right. Thank you.

Operator

Thank you.

Our KeyBanc Capital next question or comment Todd is Fowler Markets. from from

open. is line Your

James B. Gattoni

Todd. Hey,

Todd C. Fowler

know for the more the is Hey, really come earlier count here the attrition and don't you in combined BCO in to you rest just the sounds with you're first good to the maybe here morning, kind BCOs flush month, the related on efforts. Hey, that out just this back Jim. that I think to growth quarter in but what seeing the this with the talked that BCOs in recruitment normal Thanks. your you how experiencing quarter, not really Joe, about about know, year? saw it comments first the of I early you XXXX of can if

Joseph J. Beacom

Thanks, Sure. Todd.

relatively good but the pace, said, been year-over-year, turnover been gain of you really additions the As interest, lot good on side. have flat additions, the BCOs in has

in technology turnover quarter the to good helping for that very Jim XX%, annualized well. which alluded around that's to the some and we Our we capacity as put out is is think us.

about Just the all helps another where certainly April, through we're pricing net or trucks. first In and April, it those the up of part model is, factors. XX so

been I the our very rest in quarter like where their pretty like well take I We they year. like as chance they pipeline we rest of well agents look network, expect coming of get off change or the has and systems, the what the and the whether we look so the as get from perform them think I seeing own wouldn't think now to second started. care we that always And once at the or see, quarter and load capacity our we they're has a case, we're they like that that. the that board, So, to of other into authority

Todd C. Fowler

piece of last can was that questions then some some what of a SG&A in $X.X hit you of from or year that. up my when where know and for million. us the follow-up, was do similar And provision about to year from Agent just stock it that's guiding Should Convention and I good. the I see remind are then I've at line? you million the there's the on been step to the this That mentioned for costs with And we comp it, see Kevin, year, costs the rest $X.X the Okay, helps. now. got for levels So, just million, SG&A? also Annual up know in you bonus you the $X.X speak those

L. Kevin Stout

into then Todd, and my Convention two will the those we the estimate called Yeah. in equal I for items it pieces year the out quarter. The line Agent full cut prepared the second definitely for up hit four remarks, quarter. in

will. you you So, annualize those, should if

Todd C. Fowler

$XX maybe Convention, it is for $XX.X the Agent quarter. the fourth million, SG&A in third there kind step then where take, So, is be XQ or in of up give for XQ, million a the should in and but of

L. Kevin Stout

the Right. We merit in July. annual for do increases employees

$X But quarter than the second would increase. yeah, that is hit what But that increases, is think we're – pretty pretty between the first be that the close the a Agent to $X.X Convention annual and quarter. million will in saw small So, anywhere I other speaking, close. you million in generally to and

Todd C. Fowler

That's morning. Thanks good. this time the Okay, for helpful.

Operator

Thank you.

question Brooklier from next from Matt Research. comes comment Our Buckingham or

is line Your open.

Matthew Brooklier

thanks and Hey, morning. good

component sounds hasn't model of for BCO the another It that like So, the changed. you. payout, your share, revenue question that

in Just and you what offers guess of curious, you're keeping program and in programs insurance market Landstar but offering kind the some BCOs, a the potentially maybe to owner-operators? point BCOs I your tool to of altered I know attract savings the this it's that position as more sweeten time, about in potentially at using the for other guess cost of cost terms magnitude that fuel I potentially things. Have savings more

Joseph J. Beacom

Yeah, Matt, this Joe. is

But got kind been changes, significant take advantage we we effective always really with over that the of get of question, a to an fuel, anything the significant We time programs. It's see forth or of in lot to negotiate can new when any no and we continue it's if program that tires, it's with in It's and had on there's haven't to ongoing this our significant. offer a program. But equipment at significantly program. relationship but changed opportunities But for your and see changes vendors not it's proven we've we'll the just looking those pretty we're them. we great haven't basis. We'll mature be and and so shifts them. point, costs, major vendors the

Matthew Brooklier

time, asset as they Okay. joining the and feel new follow-up light a joining world point BCOs in at a more from, some this of just in? attractive I'm changed where not less they're reasons? are in or network closed carrier potentially whether view run trying the with you just survey on kind or an how coming that like if process attractive mandate why of are maybe like for we're those do mandate the has guys you or working you ELD owner-operators' ask And get guys Landstar, to a

Joseph J. Beacom

an reasons came or of where a them don't from a and ask here. on multitude We survey reasons It's basis. them typically individual that on they're really why they oftentimes we'll ask

work system. relationships that assigned extremely an the they're advisor the board, is agent from on where agents, navigate reasons come they helps an But model, understand and here them find As with coming the varied. and they are are they coming

I they some a direction from move move proven they for move a timely are to our and concrete tried find to for that's the continue we it's it's good the their really where make improve seen what have own, any them you more as but have in that a and think other putting information it's to those hands and their do we of to make in and kind not Landstar, and I to is are good on we've don't decisions make attractive the improvement right think to to willing there right information than in retention. where that, the to good think everybody, model be decisions successful say So,

Matthew Brooklier

appreciate Congrats the I time. quarter. Okay. on the

James B. Gattoni

thanks. Yeah,

Operator

Thank you.

or next comes from question Young comment Morningstar. Matt from Our

Your line is open.

Matthew Young

morning, guys, thanks. Good

So, we've about efforts in automation increased industry the all general. lot hearing across a brokerage been

or a with would broker tools, opportunities in mobile get likely You guys your be carriers see your investing terms of productivity been agents. are trying for apps there's and most over perhaps agents where if capacity as about talking to the in Wondering about biggest would the benefit you also it have to BCO in time? IT automation talk Just Can such sense a more pricing? related years the of ahead? sourcing where

James B. Gattoni

all about How Yes. those?

Matthew Young

Yeah.

James B. Gattoni

find think freight not visibility invoices to as the don't processing should you mean I you help and agents. to it is, seriously, No, as – bills customers. Processing they anymore tools but simple improve it's getting TMS of that our call They where have out out the or information trucks is, are. as Yeah. can simple

Data, today there available Big more Data more tools, is Big knows and years data ago. Our we right, pricing have everybody than there five was

ago your a years little So, the data. five you more in tools get six pricing a little more with you you today tools pricing that than that get – or had have confidence

BCOs lot is pretty data tablets and a on on and push the more rapidly base side, efficient more year agent laptops. the five capacity quality in everything to was moving this making it when efficient our than being is a So, phone out able to using ago years

So, been role and to and owners look be only to the amongst to keys and one support but information the things fast. able is agent it moving if business role at carriers. that and are Landstar model, is small to the the has of their shipper, you But share not amongst our family the

apps and to them have enhance didn't the had. off and mobile-friendly. laptops making moving just we phones the It's to on go we we're already far But, and mobile apps tools tablets think So, of yeah, that you in in out has. I you my support rolling that's an – that can are app months, these scale the six about the can't build but Landstar build and opinion

have time available We point or – have X,XXX we have mobile probably we – loads any and in already already on X,XXX app. the at apps there our is

and sure that. technology of to we one kind differentiator, just where on going right make is top that's that unless you don't I of let we're So, become it all a we're are. think

Matthew Young

Fair enough. Thanks. color. That's good

Operator

further no questions. show I time, this At

So, you, for to closing sir, to remarks I like over call would turn the back

James B. Gattoni

July Thank I currently right, you day. scheduled XXXX earnings XX. quarter forward look Have second with All our conference call to a and good Caroline. speaking for you again on

Operator

for this today. at conference call Please your Thank Have disconnect the you time. lines good a joining morning.

Landstar System (LSTR) 26 Apr 182018 Q1 Earnings call transcript