LSTR - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Landstar System's First Quarter Earnings Release Conference Call. [Operator Instructions] Today's call is being recorded.

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

Joining us today from Landstar are Frank Lonegro, President and CEO; Jim Todd, Vice President and CFO; Joe Beacom, Vice President and Chief Safety and Operations Officer.

to may call begin. like Todd. to would you Sir, I turn over the Jim Now

James Todd

Thank to Quarter Landstar's Bill. XXXX you, Good First Earnings morning, Conference and welcome Call.

following me Private the Litigation Reform following begin, statement XXXX. Securities read of we safe harbor let statement. Before The is Act a under the

statements. call this Statements not on made conference during historical based are that facts are forward-looking

information relates strategies may During statements that but Such that call, and information plans, objectives, we including, make by to to conference subject business this forward-looking Landstar's risks, nature uncertainties is expectations. contain and not in from Risk filings limited to, the Factors fiscal operational, the section financial SEC and other time legal to Landstar's risks XX-K year detailed and the time. Form described in XXXX for

actual from information. differ cause to Investors no events These publicly such those reliance anticipated. undertakes or uncertainties results historical forward-looking not or information, revise risks materially place undue forward-looking obligation update should on could to results Landstar or and and any

are morning to pass President Chief Frank Officer. privilege my this Joe remarks. and It's opening Safety Landstar and me our Landstar's his and Officer; Frank Lonegro, to CEO, Beacom, With Executive Operations Chief Landstar's for Lonegro,

Frank Lonegro

Thanks, morning, good everyone. JT, and

express great First, our pleasure my and want lead for gratitude these this constituents network to I meeting so to months. company. excitement the had of I've sincere of many past several

that the spirit I April, to At entrepreneurial hundreds make early agents agent had the opportunity our with in convention annual interact with Landstar of helps successful.

to group help They working these freight talented to of Landstar drives do day, the every they a agents that I'm owners, them grow. great and alongside they what economy. American helping are take proud business While all pride be unique, in the move are

our Mid-America Kentucky on the the our event All-Star of meeting star safely and center our at Show. passion Florida, I've monthly and annual at we Georgia our share a I customers know BCO also visits day. Mile common many BCOs Safe the meetings, in seeing Million in safety owner freight Trucking operations, July, look operators in Driver every to to for road field been with and out forward road, deliver

to combination by Landstar the continue made business recent Landstar record actively will I've we I'm at Applegate our forward. strong been and track serve with executive BCOs of execution for align well Jim our to also model energized work Landstar, and our and in we its with proven Landstar's inherited excited through to success. carriers working and incredibly a This I'm sales agents, team together as of changes drive and growth. Matt leadership, strategy Dannegger. agents we've

we'll While will handle sure and today, call on Jim I our of JT, and be future earnings showcase the Matt calls. Joe to some

haul Mexico heavy are significant for are initiatives. We areas on already where strategic and have growth. our on Cross-border and identified executing X we we have opportunities scale, we have laser-focused believe

the We and of our BCOs also to continuously provide each and we support committed carriers and to remain agents, every service improving customers, day. level

to forward. capacity. freight available resiliency environment the our X. the characterized Landstar of soft model. Slide moving to quarter, readily fully was in model and to performed that the and business Turning first strength I this am Landstar speak by XXXX the and truck well I demand considering results safeguarding unique committed believe fostering

year. fleet solutions be We our remain we'll and network committed Our small trailing leading business balance investing our to a significant continues sheet this for technology to of be equipment in portion strong. very refreshing of owners,

stockholders. to our our Our unchanged. opportunistically benefit capital in I'm believer a long-term to allocation remain on existing I'm stock the company's buyback and committed priorities program, authority executing

have the better than performance prior year an quarter, Manufacturing conditions impact was as in we priorities, and favor trended of generally earnings backdrop, capacity was to as continued to levels to soft. environment strategic below shipper. spending pleased loose when mentioned a our loadings, We expected, Even and year-over-year. the were be what line quarter heavy and results continue with line In with historical truck measured the our the X% first level by consumer of freight Landstar's environment which remain haul the standards on to market expected. grew that XXXX I one see above on corresponding goods. top XXXX inflation first in growth continued period

strong constraint side, the of average capacity pandemic. other the offering service to out substitute after the line and haul company run incredibly our than declined period On the coming more during soft, an continue be

favorable per better X% Xst Our than volume better expectations. XXXX slightly January in high quarter by the high truck the to be to slightly end XXXX was loads slightly the truckload Xst XX% truckload of in guidance. first our in and revenue the XXXX to the end was below prior hauled than fourth first came number below were guidance for to The our below our XX% to quarter actual loads the the fiscal be XXXX variance truck above call release of number mostly quarter first the guidance quarter, XXXX set XXXX below XX% overall Actual earnings year and via The in hauled revenue quarter, truckload revenue a via per quarter X% guidance. fiscal forth again, quarter. the of slightly fiscal XX% in quarter of was results stronger February March compared our on first driven line, as

approximately get the during loadings for and fiscal I results Agents was wanted any Their provide of systems and meet first to details XXX Orlando at looking XXXX Million we Agents the XX% generated is convention. quarter. relentless that JT but X a very impressive. on excited consolidated on of revenue, our our to take this community. and Turning into business I rate for the moment Slide network, drive of generated collectively at month revenue the will XXXX load, agent in to the Dollar our drive group year. in agent to earlier touch during Million environment many operating Landstar's annual This results Dollar scale, support the

the most how I've continued transportation Landstar's culture been important to sector and success. safety-first for career, our realize of is in my

result professionalism is Our direct thousands of a of of the operating safety the day. performance Landstar every BCOs safely

the strength, investment frequency and speaks provide recruiting, trailing the Xst in able equipment accident X.XX compared Our XXXX safety million quarter. practices. continued is of which our first as the a maintenance to in miles and to skill, and dedication of agents are highlight point quarter, technology and This with operating our I'm metric differentiation, to decreased BCOs DOT qualification approximately freight report that proud and discussions XX% to per in talent impressive a an our customers. our

saw repairs. the approximately Slide basis at coming a the on and decreased slower and to trucks typical quarter cost significant volumes. to in year-over-year has end are by increase first out Xst a in in service BCO We the turnover to since given to Turning BCO decrease. when we the the continue the of awaiting side. rates quarter. pace truck capacity incur count be decline the BCO would in decline than count X the with is XXXX to quarter, repairs It sequential of in the the by decreased influenced count trucks first XX% period truckload truck XXX consistent time expect BCO extended environment, in turnover but months the of in of continues rate truck

quarter XXXX back first I to walk financials you in through call will now the JT JT? to pass more detail. the

James Todd

I so included Thanks, presentation. first Frank. cover first in covered other financial certain release Frank information has quarter, quarter our press and will slide on various the XXXX information

to Turning X. Slide

million decrease non-truck below truck XX% the per high a transportation XXXX mostly both by end issued XX% revenue air XXXX load each truck shipment. Frank in the quarter service first loads revenue revenue our guidance. quarter. first and in the Non-truck was As per to of The revenue the in slightly of earlier, or due mentioned was transportation previously hauled number decrease exceeded $XX

hauled equipment unsided in per equipment per on other As to up via revenue on and revenue better platform held considerably loads load via hauled loads Transportation, breakdown van in truck the load Truck on revenue billed XXX% number, to to as mile the surcharges excludes services. paid are loads BCO. relatively that We fuel trucks customers pure BCO it by pricing consider a hauled transportation per

believe Revenue first market the the significant XXXX remain that XXXX platform has first unsided was BCO It than to by XXXX revenue per below the XXXX ago, quarter. the quarter quarter Landstar's X% ago. noted unsided significantly year pre-pandemic BCOs and to as incremental in first quarter. van amount the van XX%, today respectively. that was will in cost and compared given hauled on We mile approximately and by the relatively be first on platform from a above stay should by the equipment X% of XX% although truck levels below XXXX quarter first pre-pandemic BCOs years higher per mile mile X equipment equipment rates softened both Revenue operate a per hauled

by rates the to Revenue changes flat February January are BCOs February typical and exception impacted to stronger van XXXX December January when in on March. X% before mid-December and remained of to with pre-pandemic the patterns, per sequentially favorably by of These mile mandate. ELD equipment the January December XXXX from February beginning hauled month-to-month to from decreasing January than to were

per revenue BCO on equipment underperformed to these mile patterns. from in March change van sequential the pre-pandemic However, February historical

and per and unpredictable by van XXXX The unsided heavy The of the As trends as more equipment platform standard are typical to volume volume. hauled to are month-to-month somewhat favorable is February January, for relative unsided from to X% to revenue reasons generally that per specialized mentioned X% pre-pandemic loads due to February excluding from trends mile March. the January when to trends above. from mix BCOs, December increased equipment. revenue to often platform platform increased equipment and between compared mile unsided flatbed X% volatility decreased XXXX compared sequential This on

strategic increased tailwind the our revenue of the XXXX quarter a load, platform during areas per by one approximately as quarter. partially year-over-year XX% revenue haul approximately represented to Heavy the X% the to revenue, unsided revenue haul approximately up per in decrease load. first This X% our a first from in loadings of in a offset as was XX% mixed category quarter. were XXXX heavy haul up approximately focus increased X%, of Heavy percentage

make year-over-year by XX. commodity. largest XX% first Within decrease loadings to share revenue quarter. a segment to and load revenue by revenue our provided collectively in Turning decrease year-over-year on XX% durables, in of down quarter. decline per which in category, in X% XXXX Logistics our compared Slide was and a the & in commodity revenue, revenue a We combined up first load. a commodity and Transportation change as down compared X our in XX% per to a XX% volumes X% about Revenue year-over-year were XXXX consumer transportation on decline commodity revenue XX% top declined XX% revenue categories, the

from ] decreased [ parts XXXX revenue equipment Building loadings gears XXXX top the Shifting first were hazardous of first X% commodity loadings quarter, machinery relatively Products to the materials groupings, total the quarter to from within decreased and flat. XX%. X remaining and decreased XX%. Automotive

us Additionally, for the based consumer performers the substitute XXXX decreased XX% line haul varies on significantly which and loadings, quarter. demand one first pandemic one of from strongest the through

to a brokers. truck Also, trucking other and provided capacity XPLs Landstar is truck companies,

on XX% commodity transportation readily freight including XXXX tight of behalf more truck Overall, The truck first available quarter, truck capacity other often quarter. than Even capacity with companies include reach XXXX of out of service XXXX transportation freight XXXX diversified, During truck was over revenue our in the first on which ups quarters, model those to provide of revenue is times other to and Landstar none the XX% our and hauled periods in our truck substitute readily over on of XX% in more clear line capacity. by offering. almost transportation below during X% groupings, Landstar accessible. hauled more and transportation indicator downs with revenue transportation providers highly contributed respectively. the our the haul of XX,XXX categories, customers, truck companies of business our was behalf first a other all remains quarter companies hauled of Revenue the capacity, that in in various XXXX behalf customer

compared contribution the margin was XX. first Slide XXXX gross XXXX was million as first gross the to to to million in $XXX.X margin variable million quarter quarter, contribution profit last profit the quarter. in period in on compared first first quarter $XXX.X margin decreased million to XX.X% to generated profit same in XX.X% in XXXX the The compared to In primarily of year. $XXX.X decrease first In was was Turning by first revenue $XXX.X of XXXX quarter of in carriers. Variable first quarter. margin in XXXX the period XXXX. the compared of margin contribution XX.X% contribution profit variable XXXX truck the compared XXXX a variable was revenue corresponding Gross quarter attributable gross of to X.X% brokerage the revenue

brokerage first revenue by increased As which typically was the the partially higher truck the percentage has was BCO XXXX generated basis rate of other an to XXXX as mix, points generated in by revenue carriers a paid of quarter, the margin independent modes in variable paid rate by XXX first higher than contractors, quarter transportation. offset contribution than

compared gains an due million and increase insurance provision contractor period BCO in contribution, percentage debt of X.X% variable primarily Insurance fixed infrastructure, cost equipment. revenue were the both and Total and of decreased as used in to declined claims income were $XX.X general principally costs XXXX XXXX. revenue Operating $XX.X quarter certain and quarter trailing for sale increased variable $XX.X Other and period. profit costs company's to in first profit XXXX XXXX the claims on operating This of in to primarily gross XXXX. gross to XXXX and costs XX. were Slide million to was components impact comparison the BCO compared in of to $XX.X due contribution a and smaller bad administrative the the of basis. million X.X% in Turning first selling, the of costs in million

the unfavorable decrease claim year partially XXXX increased by and as of net during The of severity in compared was to claims insurance and decreased prior costs period. accident to estimates accidents development decreased primarily a offset attributable XXXX frequency,

cost prior year million, XXXX included XXXX and claim claims million net estimates. quarter, first $X.X During the and of insurance and respectively, $X.X adjustment to unfavorable

of and $XX.X costs, general was in and under impact consulting increased increase attributable in The the to benefit programs by million incentive first and general increased XXXX Selling, variable compared the XXXX quarter administrative the quarter. primarily costs equity employee $X.X for in costs $XX.X compensation million decreased transition our offset of costs. provision and were compensation administrative partially project million first to selling, costs and CEO

first cross-border from and million to areas, selective variable as the compared under company capital slightly, XXXX the in million managing In to certain despite to We'd haul like quarter, inflation first compensation be wages very quarter declined respect moderate first quarter. first provision for to XXXX in human disciplined $X.X the heavy with XXXX programs was note, fraud XXXX wage the $X.X some prevention, the and to principally pressure headcount. quarter total continues the investment

capacity partially XXXX. for in XXXX trailer on investment upgraded Depreciation software fleet, from new by offset and This million applications use million company's decreased in and income first from depreciation $XX.X an XXXX The the rate providers. XX.X% was quarter, arrangements attributable tax the XXXX benefits in first the stock-based during larger third-party of compared XXXX in excess XX.X% first tax income agents to first rate quarter. amortization depreciation on resulting was and decrease the continued $XX.X compared in tools primarily quarter by quarter primarily effective due to was the to to net compensation increased tax effective

and The sheet XX of cash We $XX Slide investments is and model. ended of our our the was the to were $XXX million. the Cash first and sheet. the capabilities expenditures quarter from $X to of Turning short-term XXXX balance strength testament for a at operations with cash looking Landstar cash-generating flow capital million. balance million quarter

to Frank. you, Back

Frank Lonegro

JT. Thanks,

should more slightly quarter, our with of the pre-pandemic in trends of revenue has first performance load based weeks both progress hauled ease. have been have we to April line Truck seasonal XXXX, truck number X sequential patterns. the XXXX via In seasonal normal as per weeks loads XXXX first volumes moved quarter, these few trends. what per underperformed the comparisons on in we through would to As second April, March into year-over-year in second per from begin favorable. underperformed as pre-pandemic though significantly sequential revenue of the and In moved truck load the truck month-to-month patterns, we pre-pandemic week-to-week revenue load seem patterns view the truck

Turning to Slide XX.

for load truck XXXX will and year-over-year XXXX a Xnd expectations revenue be quarter to the X% of truck down versus Our range Xnd XXXX the the X% are second to X% in per volumes the will quarter. below quarter load flat be

would sequential per on a normally improvement the X% yield a volumes in truckload patterns improvement Looking X% and at load. Xnd revenue basis. Pre-pandemic quarter XXXX truck an in

Our a ranging from sequential down to X% guidance X% for and per improvement the second X% revenue in quarter to truckload up X% truck load implies sequentially. volumes

expect to what revenue experienced we loads in the first quarter. be also We XXXX for our non-truck similar to

Based $X.X share a margin X.X% assumptions, in of costs on per Xnd we XX.X% be quarter a estimated XXXX quarter XXXX earnings billion, variable of claims Xnd a and BCO the in $X.X contribution XX.X% guidance to revenue insurance of these revenue. to and $X.XX share. incorporates of The range approximately range and be per to billion of to in expect $X.XX to range

guidance some range EPS actual first in compared items We of also to share to share. XXXX per quarter the to highlight quarter $X.XX want XXXX specific $X.XX embedded Xnd of EPS the share $X.XX per per

April. above first of agent in in part quarter the due the annual quarter, in is SG&A convention to cost second expected Landstar's be First, the to

pre-pandemic with Second, to we points which XXXX XX the be XX is contribution below historical quarter, expect sequential basis line to variable patterns. in first

than $X.XX normal driving XXX rate line quarter, rate tax to assumptions, a expected quarter compared quarter. with first the share unfavorable per in be tax second the basis first the higher variance approximately is to points Third, our

earnings also share. that We widened to for the both range guidance want note and has revenue company the per

economic freight the ranges that the we conditions strength Landstar reflect model fact dynamic, this are navigate While and position the to these environment. believe well successfully us and resiliency still quite of

we'd Bill, that, line like to With open questions. the for

Operator

We the Instructions] of question Research. [Operator from Group do first Wolfe Scott the line of coming have

Scott Group

back speak you again. nice Frank, with Welcome to transports. to

helpful, gave monthly going That guys on quick. was it was color trends. the some more You of but

bit March on April little sounded deteriorated. like end, March seeing little your it and in pricing bit at color in a around then more what So April? Frank, happened a Maybe sort of what maybe, the in were just And comments you're better.

Frank Lonegro

Scott, good thing thanks, imagine, this voice daily to and hear your see to for We're on watching basis and just desire given a again, as you sure. an inflection. weekly the would

view And want or want the at to we We show day the over don't toward index is in some I April making so I time. trends what end on the the X. a week-by-week do to was beginning And positivity. think was was over to rate that point on look

And that of so immediate but a hopeful inflection. sign help. a post-COVID kind little of the a to we're period, rapid beginning maybe shoots be It's rebound time of green that, always not in saw we an is as going the is bit of

fill there. in JT let I'll some color

James Todd

absolutely, Yes. Frank. No,

top strong the So line good February. Scott, model really the was guy to

February seasonally but top to a typical line, underperformed plus March off point March, about and a good was loads in load typical seasonality. number So model hauled as of model February to again, versus both truck guide February. was the the the about stronger per both revenue X.X%, of February per base, March and outpaced loadings in truck load starting via fiscal the on X%, rev

Scott Group

And about there? April then thoughts any

James Todd

bit. on saw guess and a to week X April. us plus the April, X that guy historically have to that maybe starting to March to don't per X but per with point, XXX point, peak we then such flattish little truck revenue improved X March and in to on fiscal historical improved, going April, compares our load week best we're Frank's Frank's April fiscal point truck probably revenue middle To close, of truck To be March basis in good per is week to a slide revenue Yes. we load load and week

Scott Group

And look higher. If cost but initiatives one. bigger is to it coming the be structure used That's could just then is you reduce Okay. so revenue helpful. right? picture, Is much Frank, any to pre-pandemic, do cost, there just you net anything to or back meaningfully where

role? there secondly, -- view And of a is be Any meaningfully opportunity on the we've an then accelerate pace buyback thoughts in that there that to had new here. should your

Frank Lonegro

sure. And questions, for as always. Yes, good all

So always it on the is cost we're going be that something to focused on. side,

mean the holding accountable. in are And especially year-over-year, the disciplined very JT's first As [indiscernible] that in JT on through organization quarter went we on I got one the headcount. math, the

that on is positions agents So depreciation that our and support the adding Technology really always to continue job is to and whether side selective are we that seeing the area year-over-year or on mean strategic driving and carriers what investments there. invest you're out the in to are we called going the BCOs out phone. the some those an really the that's be in. change, I areas selective

So really to hard we we're cost going equation. now. the there's It's more come to initiative no side of around inflect. at when to out think start growth stronger We right the go

say, organizational well are things We haul. helpful already cross-border as areas growth cyclical. I'd there. changes able focus And business a good that are we're think being heavy than to So in areas real those as nature Mexico position The on have do be secular and that we those more, I going sales on like scale there. in the rather are focus some have to

to to a wonderful really that and that company the buyback market on one. the shareholders, started and just obviously, selective in and a question, hand every obviously, long got mid-quarter. price we're a to a had Jim are big getting evaluate basis where pristine pretty continue inherit the balance of of then about history joining has Board got Gattoni, know, We've and been cash day. very we're as your much to a sheet, when has kind you And not company on changing. returning from market, And it's has in the we successful going that's it's The in

clearly has patient advantages. Being its

You of the And then do. XXX. down different including come since look what to great Fed traded about between reasons, of is obviously, XXX going we to the we a shareholders' want And for at where quarter first be in and it's stewards lot the money.

So but in to shareholders. the going be to return we're market, going we selective capital to are

Operator

We will Wadewitz the coming now to move question line of the UBS. Tom of from next

Thomas Wadewitz

yes, Nice kind of you you Yes. is a And bit. the in to also welcome back do talk BCOs? think decline I about to you the on How the and said Frank. dynamic with agents BCOs transports, slowing think again. that

XQ? just -- you if about that's I that of, bottom do levers BCO be let's spot out? count, Million in, will and you kind think the like think do dynamic rates, you do bottoming, for see Agent also kind think goes when that mean, and what I of you'll guess, say, Dollar the Or key XQ, So you the how count

Frank Lonegro

from Tom, great well. to again as hear you

I think They're the there extra the every load the the haul first I and go agent these us. of the impression side BCOs, awesome. are extra I an to load out to scratching sell would the folks freight you mean, BCOs and day on on for agents give

the out BCO side. resiliency that on see based side there. the So it's great folks the And commission they're based and to all fact just on the load the of been agent

folks by So who table on are dinner putting load. by these load are the

folks to us. out important day salary these not They're really and are there on fighting for know. it's So every

because of it count, rate mean terms of Dollar the just Million In I the year-over-year was environment. down Agent

if full think the at with we'll go the higher type us this Certainly, XXXX. be it or of exit year the will I operate rate the the that end than as basis. up will a rates rates on full rate number inflect, exit year year was

went But BCOs, the effectively loads one the of They into they than the numbers. get person though that's productivity BCO the actual hold count with On Joe were where in can up. last volumes and really doing even line important things declined more year. BCOs of went, per the the

they're for every that us tells that scratching So there out load.

fill Joe in But again.

Joseph Beacom

Tom. Yes,

declines fourth So in than net better about XX% quarter, the the first were quarter.

So X% utilization first And Frank's flat per the X% point, truck then X% week was better January, in March. loads That we're for BCOs quarter. was there. better in to in some seeing February up and in improvement per

to, like as there. So April. is the we're volumes rates a And think, in just right the we'll move that And come back of trend direction and that I line. of function we rate. kind I through think again, opportunities come back in continues the the seeing And it kind see loading and of BCO

Thomas Wadewitz

responsiveness if have Or Do -- going as you think add to to on be that in rates? you'll see improvement BCOs that? gradual kind good you you would do think -- tougher it's of you you

Joseph Beacom

and I to think they'll bounce back, our history speaks really that.

net added We -- XXXX. we XXXX. in were we -- of but of added XXX down in If into XXX We year, you quarter so XXX added look out 'XX. in added first a in or back come 'XX XXXX, we trucks in going years the XXX a in the where of 'XX, a for we've kind XXX bunch trough, over added

I I owner-operators to capacity to think not it's the decisions of really and And I I there's mean, for make themselves. we're we're want different have and who think market when to So things still comes as I the freedom home the fact a provide for think now. that turn, out happen. for for waiting I think opportunity, to flock model And speaks these guys that just to that think inflection the point Landstar.

be what And it's -- back. when happen as There's more see we're I a just in think as -- my volumes opinion, gradual to happens. it's it about not systemic back. to pace They'll anybody as thing, issue. a going I come as come rates anxious that and and quickly. don't at

Thomas Wadewitz

Yes.

Okay.

profile, it's structural about cycle So change. not and of duration kind

Appreciate it. Okay.

Operator

coming We will the the move from next now line of Chappell question Evercore. of Jon to

Jonathan Chappell

earnings want and mean that February model throughout to I guy to last February, very good we've marks I weeks. this is circle back to season contrary X.X the Jim, for the noted everything to you X.X%. March, especially. X% heard

the changed changing most way little So the where to when seemed deeper the for kind is things on outperformance post how any there the it negative can positive industry conference came dig a of relative the from, of you the of to January rest call? the be --

James Todd

to. happy I'm John,

in biggest January. was February pre-pandemic XXXX than down look revenue truck at That in the load if was a guy So you higher compares XX patterns. historically, per points February, basis to XXX to XXXX good

John, And house. saw just we on volume side, well. of In the revenue brokerage addition, the truck on revenue but on seasonality beat would you, -- tell not it this in I as side the net on saw the side too we

from fourth weeks XXXX quarter of the So XXX basis first revenue X the of of our XXXX, first saw points. margin quarter the net compress we to

from line basis of then launch first back X that's February. first to it X of we that out last point quarter the tougher seasonality in XX consistent with that the think And kind widened So points, weeks, 'XX, the relative that off weeks top underperformance on right? I pre-pandemic saw

Jonathan Chappell

half, capacity accelerated are to if pretty you business, sounds was that's more bit February think extrapolate good customer of little don't February, kind then putting guy base? this in but back I worse typical is want to, of little floor people your the of seeing but in bit And kind weeks for the that a a a or couple in green do your shoots, rates? uplift to signs Or sustainable were kind demand? you there's specific like But last maybe March, again, below and really a any that Or and there looking your Okay. real whatever. seasonality, a you're business model that of removal April better. Are of a more

Frank Lonegro

Yes, and conversation the a to a at shot John, bit it were little take with back moment me harkens Scott that ago. a let one, we having

watching quite We are this got broader the got, corporate we are we've average. very thing relative as We've remarks, to in market and which areas our well the prepared to very, relative said closely. doing

good side And the of in times. we've would well. more some that that's then XPL And power the only got and to things kind like times business doing not areas good as and really difficult of difficult super other you of more expect in be cyclical

well the packaging, secular things in materials, When more kind government that things. like in business. groups well mean, I economy the mean we're and centers, at business, energy, item are on automotive markets. I do these I are of that things things of wind side the electronic those that electronic commodity vehicles, are And a positioned have to metals, There the well more industrial April. performing are look data of very that. the building like

of spot. are these sweet mean, I our sort

seeing we're do So things those well.

early are we'd is they ask. that consumer think is side of not good question how early it where a still The cycle, be. to like durable I reflective to

get goods Our to were view and of kind got positive view. -- many before forward share pulled turn fair that's during There was this durable I see of that back that equilibrium pandemic, amount to for a think the and us. we

color JT, got on more some any of that? you if

James Todd

our point, of tailwind We Easter on a volume out load just the think and get reasonably the little bit we're quarter Frank, I in per you end at we're little head. from very April, was We're a of is John. headwind line bit side closely. a and very, on impact vantage and below. looking, the And first that ticking watching that rev No, nail carving the had the the

Operator

We Stifel. the coming will Chan move line question Bruce now of the to from next of

J. Bruce Chan

that you've want to that you of back early comments days some cross-border. the made the around quantify still to growth the of business us to know what there, to Or maybe seen size but now it's help of there? relative you I maybe can opportunity? come kind Just

Frank Lonegro

I is we built we which cross-border, Yes. yard is we facility call and a and facility the LFS we early on call We in cross-border. a actually, ]. crane an have the cross-docking mover think there, [ facility big thing LMO, were important Bruce, and that down a

it's slick So facility. a really

customers agents like Our really that. and

the a Metro. got intra-Mexico shuttle service a got that We've across We've small border. carrier called goes

So trying we're near-shoring. to in positioned capitalize well Clearly, that environment. we're on

help We're there. to down that and So agents the continue for opportunities introduce to we've good cross-border. to more business, look us grow to going a facility to sell got more

it's here. in So scale a I'll And already player a color, again, opening my scale -- to I JT for but remarks over think turn numerical it we're business. we as and good mentioned

to about ways really grow. about business thinking well it's So already that's really and taking performing

JT?

James Todd

cross-border Frank. saw -- about performance, 'XX we our XQ better revs, Thanks, at versus just terms was than XQ the was in points basis here down Yes. I it would XX.X%, of what about 'XX revenue XXX core.

Joe, if you have anything to?

Joseph Beacom

Yes. of facility core this the more to No. a XXX group it's border serves move environment And business. for solid transloading us We've year. last in a XXX,XXX allow carriers almost service that a to got well. great the just the lot It interior. looking say in southbound. advantage to a across provides very that I'll There's We to than imbalance million. that northbound year, tremendous us us of a we help did cross-border take loads Mexican over little were

speed border, And as the development opportunities developing working we've points bring and to a on of multitude around to across agents going now cross-border, well. got And of trying team really, as very the border. we then very, emphasis to up dedicated agent I earlier the sales crossing south train that well up core think, some a the that's on have, initiatives, capabilities

again, think and but opportunity, a in to had lean have what have 'XX, not strength is continue that into that to grow a future. great the just we only we on So we'll in

Operator

to line Jefferies. now move will We question from next coming the the Moore Stephanie of of

Stephanie Benjamin Moore

and select talking wanted cost a structure I out. question maybe called about on back some the maybe that circle to investments you prior

a expand could of maybe those. you If little on bit kind

changes. sales You called organization out some

dedicated just to having a mentioned sales go cross-border. You team after

upturn. are love and little there. the just yourself areas I a think key you of more little you're position expand color investments, of trying bit well to on bit which would If a get But to more could then clearly that maybe kind

side, then out maybe the areas take where of cost making the say on -- cost business. actions And probably quick you're some taking to

Frank Lonegro

thanks for questions. the good Stephanie,

hard to need do it until say fill right fill to a me I'd inflections. at that manages whether of we terms how I are them to it, again, he wait And we position in lot additional whether kudos volume see need of we looking JT things. every open, Let comes reverse. in give we we now, can

It's whole freight couple really, a in of recession. Everybody been leadership a circumstances. we're years in organization. understands And the difficult that

some level judicious of very, volume we're very So being them. filling variability about to that positions have

strategic including of resources to of In to believer capital I'm on strategy, to a fruition. investments, embarks bring terms able a company things, align when and a capital that a those it's be lot got to human

going that both can haul, expect should deliver and is initiatives the we those we heavy invest is capital think with what strategic value there. cross-border we like make and people into about that follow are you when through action to So that talk saying to and sure areas we're real

talking of So cross-border. decisions heavy large fact numbers and adding we we're the salespeople in dollars but important leadership haul, we're We're salespeople us. not large positions people, these -- into and are like for adding that or some

remember Landstar the environment, the is to relative And small headquarters core that environment the within quite agents.

investing can that customers to there us and they help educate with fulsome kick need provide doors manner. into more that tools that So to we're business a get some in the them them and open

try in business and freight to it, our or some there. be we've we it. safety are capabilities and that there's trying and know have We introduce We to we're not to we're know They're know put the the but our want we're bunch year up do out. year a into to of going opportunity that But at haul in, to there out performance who going We heavy the cross-border. -- agents out. good so of all service one X,XXX that got

people he's to in terms for the go operation. Just us It's sell to it to help order a agents those to and credit sit business. keep them extra the to great give takes points. really And with go a out how and Joe and piece understand in the important lot of that way running of that out of as selling of couple

you add Joe, anything to that?

Joseph Beacom

we've Yes. customer. over to got that make with agents intimidated mantra simple. the or the cross-border reluctant that is bring way aren't And that so at made that think I of Mexico all kind we it a and up Stephanie, aren't really And years, it we've worked to to that attribute

forward. agents will XXX over that do cross-border and last X,XXX our We've shipments got a year of going

what do deepen to And do to so. understanding, just we're the so trying the increase is confidence

a to And from carrier that to shuttle seamless and we down those service, trailers put partners the investment gateways. an utilize continue there all service trailers across our us Mexican timely allow provide standpoint, and

things. of So we're just trying to do a lot

not calls. make and -- interior, on the every wants go agent sales the interior sales to The effort into

that managed Landstar and making embedded will then that So teams provides in opportunities agents the calls, those the resources be uncovering at be interior, by will our border.

recipe So I good forward. looking think it's a

Stephanie Benjamin Moore

geared to at where just think a And one Appreciate answer. Maybe positioning then investments legacy I bit you the maybe a offense? on towards Are systems. are lot technology upgrading more the some some play investments of guys side, these here. little now for we the years, the follow-up point technology were of

Frank Lonegro

were sometimes we Stephanie, provider. tech-enabled the Internally, we original logistics say,

that. of So we're leading to the edge to stay continue on going

we think It's I have to. these really table stakes days.

it's to brand, right? It's do nearly It's we the all a as just manner. done, thing it's of security. the the technology, sitting legged front just the much of it's relationships, stool, but think not it's It's those not it's bunch community as one. is a it's others the we digital we have So do. clearly into scale, in things we have investment the safety, the wrapped not may marketed a not in single That not that a of something but computer business to that do, up people only trying it's

inside center things we're things the for us an building, are more building. inside the say, there that talking looking settlement do area Call that we be in where the I'll inside the idea legacy-related modernization will is would at start technology, and of the about we some that billing still building. One

generate, of going years. next levels couple better the support, So to I'd we've that things say, maybe efficiencies over are got some of some

I I and we've Jim give of done a a credit. ton think Gattoni, lot,

couple sort of to been next has the inside for mode And again, and One of hallmarks of And front of reinvest years. maintenance putting technology we'll his agents the great that over coming BCOs. I the building. of start tools to more a of the tenure and the think in we're

Operator

of Daniel We will from the next question Imbro, to coming Stephens line Inc. move now the

Joe Enderlin

Daniel. This is for Enderlin on Joe

exit to the how April? maybe seen you to Could variable that Just the about during rate contribution then ask wanted trend of about compared have beginning cadence the And where you margin. quarter? of talk the

James Todd

Yes.

XX.X% we we and there out, So by a more first little a of the XX for be than to BCM bps so. spreads compressing anticipated. would brokerage put Joe, in on or to a with quarter And the more low little have at clearly, revenue end bit guide bit XX.X%. Missed us

going that load volume, trucks, move seeing we're we in what As count. given handled third-party sequential call for the that's via right, quarter, be to truck would second into

kind embedded got of you've mix So headwind.

a expectations third And then we to more for XQ. such, to of spread what as calls seasonality for saw respect first did fourth to And bit bake quarter. a normal quarter the guide we very, little similar in BCM to quarter, quarter fourth to very anticipation close compression with

Joe Enderlin

Got it. Makes sense.

have guys shoots could seen improvement green markets demand of in you you commodity you end like consumer Do As follow-up, thoughts a an sounds expect pick up? any it any and there? improvement durables when industrial seeing are on you have groups. Or

Frank Lonegro

a question. of mean getting but I good awfully better, little it bit is off an a it's low base. it's Yes,

So I'd that one. call hate to the on ball

had has has I COVID the home years you things couldn't first kind spending renovating period consumer COVID -- things a in of spent of X and that last years, think you out, of the it's go going the couple of and travel. to relented as come on to down you the opportunity couldn't money lot at

might contagiousness. do around You concern the out things want given the you about, otherwise do that and just to couldn't

rather a So a towards more taking going of I or that than pivoting something to think the or services dinner, buying eating new period and out vacation home are like now instead we're where folks of at in that. dishwasher

little away the go back forward into I that think still bit. several I we're through a So come pull equilibrium. think we've to just got from seeing quarters

Operator

move will We from now the Susquehanna. question the Majors of of Bascome next line coming to

Bascome Majors

you And to variable needs tell you level? how XXXX, the the to share-based much piece? year in current accrual back embedded come return can us your just full on for much outlook, how to in Jim, if that comp growth you is back including get to

James Todd

'XX. plus Based versus best X today, kind about million $XX to 'XX headwind I'd on X I a $XX of anticipate sit as year estimate, here full my million

If in versus million that kind at tailwind 'XX expect are -- I'd FY included the about say those of in 'XX, of 'XX at of some of costs you're first given kind won't quarter 'XX. you'd $X threshold, looking transition that repeat

Bascome Majors

less here from seen time. shareholders level. a stakeholders for before. things, for the welcome High back. you've done very X by we has been and business that And than way I Frank, well challenged obviously, really in And a long the haven't only months, this know doing has but things is at least pretty similarly that cycle peak a

perspective, with you you know tweaked? of come any could do a be how how agents with maybe I don't that in as pieces model compensate structurally, you see or BCOs. the fresh they in But relate

XX where turn we've able kind to some dials the growth anything of around really the might you seen historically the and years. be norms next generate for Just

Frank Lonegro

early your the to powerful less a impressions, than connecting the voice, nice I'd forward later only model. to model months. year. say again, it's the I in you and Bascome, X little is mean hear extremely an with and look I been

strong asset the resilient. It's cash obviously attributes the are It have light, been wonderfully which It's has enablement, successful, flow. unique. wonderful tech and the

You're agent food day the of table the are community. harnessing every through of on BCO on the putting literally the people who power thousands

So model mantra. do no to there's certainly harm the

not it's we make advantage already company It's things of of fresh we It's do better. a we that revolution. terms take do the say to try and as as an on everything no I'd good to how it set sort really notions of In and that do. preconceived evolution, of of eyes future, good can

accelerate one, then an from looking clearly, through opportunities maybe good to base. And think that we X be come And going can on some the strategic really themes model? focus So is, investments? to I we how can again, hearing the improve I'm you're for how already things, of the

to areas going are year this on. I and the mean, ago. focus areas, credit. heard about X maybe Board Gattoni, or we that X and aren't a cross-border us path just so Those a haul, be Jim started give those I you I the like last they heavy down and of mean, talk the first lot

beneficiary believe And us. of work and so for I'm X firmly are those that the that real opportunities

at I'm in of secular of going strategy. a type to a money follow be looking the a the shifts bit

that that's money want government, I things that's clearly near-shoring, to the like fits area haul. So that that Infrastructure, as whenever you well play mean, area really with an think from heavy in. an about unlocks we

a area. work to So we're in lot be that able do more going to

that. sources of The gargantuan data and Green AI just Energy there's of that's that, currency especially I which power power power processing we've and to mining and country, the would alternative be another generation of a means do needs area. required for for like mean computing and energy that's cyber have necessary. with things all amount got the to centers data

invest do Like look all to to and us those the well to in see continue that in. think unlock you're then the and things we are people going order capital really those. for secular opportunities I And those

Operator

last from We of the will Cowen. Uday the line TD question Khanapurkar coming of take

Uday Khanapurkar

are market? color van. I wondering, can would believe you that we in than Seidl. spots seeing in the on had little guess Or unsided the dynamic quarter capacity I Uday guess there better environment, Jason I'm a for different market? of is the talk bit flatbed be a This rate any I about helpful. part a specifically

Frank Lonegro

I Uday, the is we the better up about things than van environment was that the one platform of holding that talked think environment.

the area. bands heavy is then an dynamic that simply ] is It there. supply-demand in well. area as fewer There's that it supports are there out of Some haul [ flats out

it's been on. focused we've So area an that

there's Jim? well. bottom higher certainly So We're it there a looking bit lot little [indiscernible] items platform don't We are think feed. a of as revenue part for premium load, we don't of I the and freight per

James Todd

absolutely, of And guy was Frank. a I good Yes, bit no, mixed as there mentioned, a there.

on increased per So rev down X% and haul heavy X% service loadings load. for demand that offering we saw plus

out to from haul. reported guy category, X.X% X.X% heavy down good the heavy as mix of from ex strip the of a year-over-year kind you impact you unsided go a kind haul platform unsided of down If platform the

Uday Khanapurkar

just helpful. very right. follow-up, a All That's as the guess year-on-year guidance. on just truckload I

even sequential a end. model, slightly down relative normal implies the measure I guide basis? how on to low looking seasonality I'm at a uptick does wondering, Just sequential it I'm modest at or guess the that

James Todd

you respect second for sorry, the guide can with I'm quarter? anticipated -- operating margin to

Uday Khanapurkar

year-over-year. down loads X% truck X% The to

Frank Lonegro

Relative to seasonal.

James Todd

Year-over-year.

Just slightly below.

and I that's basis, So lagging the think on seasonality. we X% X% define of a would by we call it sequential XQ call called what XQ, normal or a for to X X point so at tailwind, to mid,

Operator

this turn questions. would back I closing to like you, call show At to remarks. time, I further the over no for sir,

Frank Lonegro

freight positives Thanks, closing, the environment the see challenging, in some In Bill. we near-term. remains while do

of second We first expect sequential the since XXXX quarter deliver quarter-to-quarter to Landstar's second revenue increase the quarter XXXX.

truckload pre-pandemic above level and rest revenue be with are we sign truck to the positive per patterns, seasonal which load stabilized pre-pandemic encouraged potentially norms is well that line have to in normal Also, appear trending XXXX. a for a at volumes seems of reasonably

continues been economic always the Regardless resiliency to dynamic Landstar highs we forward of to market business freight Landstar times cash significant cyclical company, and generate when free cost well higher of turns navigate the these our environment, look variable to and has way. flow. model are the growth positioned a the

quarter you second call We in XXXX look again forward for you. our us Thank earnings on July. morning. to with you joining conference Thank this speaking

Operator

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

Landstar System (LSTR) 25 Apr 242024 Q1 Earnings call transcript