QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
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Page 27 |
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Page 30 |
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EX – 31.1 Section 302 CEO Certification |
||||
EX – 32.1 Section 906 CEO Certification |
March 27, 2021 |
December 26, 2020 |
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ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
||||||||
Trade accounts receivable, less allowance of $ |
||||||||
Other receivables, including advances to independent contractors, less allowance of $ |
||||||||
Other current assets |
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|
|
|||||
Total current assets |
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|
|
|
|||||
Operating property, less accumulated depreciation and amortization of $ |
||||||||
Goodwill |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Cash overdraft |
$ | $ | ||||||
Accounts payable |
||||||||
Current maturities of long-term debt |
||||||||
Insurance claims |
||||||||
Dividends payable |
— | |||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
|
|
|
|
|||||
Long-term debt, excluding current maturities |
||||||||
Insurance claims |
||||||||
Deferred income taxes and other noncurrent liabilities |
||||||||
Shareholders’ Equity |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Cost of |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total shareholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
|
|
|
|
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
Revenue |
$ | $ | ||||||
Investment income |
||||||||
Costs and expenses: |
||||||||
Purchased transportation |
||||||||
Commissions to agents |
||||||||
Other operating costs, net of gains on asset sales/dispositions |
||||||||
Insurance and claims |
||||||||
Selling, general and administrative |
||||||||
Depreciation and amortization |
||||||||
|
|
|
|
|||||
Total costs and expenses |
||||||||
|
|
|
|
|||||
Operating income |
||||||||
Interest and debt expense |
||||||||
|
|
|
|
|||||
Income before income taxes |
||||||||
Income taxes |
||||||||
|
|
|
|
|||||
Net income |
$ | $ | ||||||
|
|
|
|
|||||
Diluted earnings per share |
$ | $ | ||||||
|
|
|
|
|||||
Average diluted shares outstanding |
||||||||
|
|
|
|
|||||
Dividends per common share |
$ | $ | ||||||
|
|
|
|
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
Net income |
$ | $ | ||||||
Other comprehensive loss: |
||||||||
Unrealized holding losses on available-for-sale |
( |
) | ( |
) | ||||
Foreign currency translation losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Other comprehensive loss |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Comprehensive income |
$ | $ | ||||||
|
|
|
|
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization of operating property and intangible assets |
||||||||
Non-cash interest charges |
||||||||
Provisions for losses on trade and other accounts receivable |
||||||||
Gains on sales/disposals of operating property |
( |
) | ( |
) | ||||
Deferred income taxes, net |
( |
) | ||||||
Stock-based compensation |
||||||||
Changes in operating assets and liabilities: |
||||||||
Decrease in trade and other accounts receivable |
||||||||
Decrease in other assets |
||||||||
Increase in accounts payable |
||||||||
Increase in other liabilities |
||||||||
(Decrease) increase in insurance claims |
( |
) | ||||||
|
|
|
|
|||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||
|
|
|
|
|||||
INVESTING ACTIVITIES |
||||||||
Net changes in other short-term investments |
— | |||||||
Sales and maturities of investments |
||||||||
Purchases of investments |
( |
) | ( |
) | ||||
Purchases of operating property |
( |
) | ( |
) | ||||
Proceeds from sales of operating property |
||||||||
|
|
|
|
|||||
NET CASH USED BY INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
|
|
|
|
|||||
FINANCING ACTIVITIES |
||||||||
Increase (decrease) in cash overdraft |
( |
) | ||||||
Dividends paid |
( |
) | ( |
) | ||||
Proceeds from exercises of stock options |
||||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans |
( |
) | ( |
) | ||||
Purchases of common stock |
— | ( |
) | |||||
Principal payments on finance lease obligations |
( |
) | ( |
) | ||||
|
|
|
|
|||||
NET CASH USED BY FINANCING ACTIVITIES |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents at beginning of period |
||||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
|
|
|
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock at Cost |
Accumulated Other Comprehensive Loss |
Total |
|||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Balance December 26, 2020 |
$ | $ |
$ |
$ |
( |
) | $ | ( |
) | $ |
||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance March 27, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
Loss |
Total |
|||||||||||||||||||||||||
Balance December 28, 2019 |
$ | $ | $ |
$ |
( |
) | $ | ( |
) | $ |
||||||||||||||||||||||
Adoption of accounting standard |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance March 28, 2020 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Significant Accounting Policies |
Thirteen Weeks Ended |
||||||||
|
March 27, 2021 |
March 28, 2020 |
||||||
Mode |
|
|
|
|
|
|
|
|
Truck – BCO Independent Contractors |
% |
% | ||||||
Truck – Truck Brokerage Carriers |
% |
% | ||||||
Rail intermodal |
% |
% | ||||||
Ocean and air cargo carriers |
% |
% | ||||||
Truck Equipment Type |
||||||||
Van equipment |
$ |
$ |
||||||
Unsided/platform equipment |
$ |
$ |
||||||
Less-than-truckload |
$ |
$ |
(2) |
Share-based Payment Arrangements |
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
Total cost of the Plans during the period |
$ |
$ |
||||||
Amount of related income tax benefit recognized during the period |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Net cost of the Plans during the period |
$ |
$ |
( |
) | ||||
|
|
|
|
Number of RSUs |
Weighted Average Grant Date Fair Value |
|||||||
Outstanding at December 26, 2020 |
$ |
|||||||
Granted |
$ |
|||||||
Vested shares |
( |
) |
$ |
|||||
|
|
|||||||
Outstanding at March 27, 2021 |
$ |
|||||||
|
|
Number of Shares and Deferred Stock Units |
Weighted Average Grant Date Fair Value |
|||||||
Non-vested at December 26, 2020 |
$ |
|||||||
Granted |
$ |
|||||||
Vested |
( |
) |
$ |
|||||
|
|
|||||||
Non-vested at March 27, 2021 |
$ |
|||||||
|
|
Number of Options |
Weighted Average Exercise Price per Share |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value (000s) |
|||||||||||||
Options outstanding at December 26, 2020 |
$ | |||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
|
|
|||||||||||||||
Options outstanding at March 27, 2021 |
$ | $ | ||||||||||||||
|
|
|||||||||||||||
Options exercisable at March 27, 2021 |
$ | $ |
(3) |
Income Taxes |
(4) |
Earnings Per Share |
(5) |
Additional Cash Flow Information |
(6) |
Segment Information |
Thirteen Weeks Ended |
||||||||||||||||||||||||
March 27, 2021 |
March 28, 2020 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
( |
) | ||||||||||||||||||||||
Expenditures on long-lived assets |
||||||||||||||||||||||||
Goodwill |
(7) |
Other Comprehensive Income |
Unrealized Holding Gains (Losses) on Available-for-Sale Securities |
Foreign Currency Translation |
Total |
||||||||||
Balance as of December 26, 2020 |
$ | $ | ( |
) | $ | ( |
) | |||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance as of March 27, 2021 |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
(8) |
Investments |
Gross |
Gross |
|||||||||||||||
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
March 27, 2021 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 26, 2020 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Less than 12 months |
12 months or longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
|||||||||||||||||||
March 27, 2021 |
||||||||||||||||||||||||
Asset-backed securities |
$ | — | $ | — | $ | $ | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
December 26, 2020 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(9) |
Leases |
Finance leases: |
||||
Amortization of right-of-use |
$ | |||
Interest on lease liability |
||||
|
|
|||
Total finance lease cost |
||||
Operating leases: |
||||
Lease cost |
||||
Variable lease cost |
— | |||
Sublease income |
( |
) | ||
|
|
|||
Total net operating lease income |
( |
) | ||
|
|
|||
Total net lease cost |
$ | |||
|
|
Operating lease right-of-use |
Other assets |
$ | ||||
Finance lease assets |
Operating property, less accumulated depreciation and amortization | |||||
|
|
|||||
Total lease assets |
$ | |||||
|
|
Finance Leases |
Operating Leases |
|||||||
2021 Remainder |
$ |
$ |
||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
— |
— |
||||||
|
|
|
|
|||||
Total future minimum lease paym e nts |
||||||||
Less amount representing interest ( |
||||||||
|
|
|
|
|||||
Present value of minimum lease payments |
$ |
$ |
||||||
|
|
|
|
|||||
Current maturities of long-term debt |
||||||||
Long-term debt, excluding current maturities |
||||||||
Other current liabilities |
||||||||
Deferred income taxes and other noncurrent liabilitie s |
Finance Leases | Operating Leases | |||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
% | % |
(10) |
Debt |
(11) |
Commitments and Contingencies |
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
Revenue generated through (in thousands): |
||||||||
Truck transportation |
||||||||
Truckload: |
||||||||
Van equipment |
$ | 827,187 | $ | 545,307 | ||||
Unsided/platform equipment |
340,632 | 286,328 | ||||||
Less-than-truckload |
25,670 | 22,941 | ||||||
|
|
|
|
|||||
Total truck transportation |
1,193,489 | 854,576 | ||||||
Rail intermodal |
31,708 | 28,129 | ||||||
Ocean and air cargo carriers |
47,600 | 26,587 | ||||||
Other (1) |
14,737 | 18,274 | ||||||
|
|
|
|
|||||
$ | 1,287,534 | $ | 927,566 | |||||
|
|
|
|
|||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation |
$ | 560,114 | $ | 431,279 | ||||
Number of loads: |
||||||||
Truck transportation |
||||||||
Truckload: |
||||||||
Van equipment |
368,873 | 315,345 | ||||||
Unsided/platform equipment |
126,265 | 120,589 | ||||||
Less-than-truckload |
40,692 | 38,356 | ||||||
|
|
|
|
|||||
Total truck transportation |
535,830 | 474,290 | ||||||
Rail intermodal |
11,700 | 11,540 | ||||||
Ocean and air cargo carriers |
9,230 | 7,070 | ||||||
|
|
|
|
|||||
556,760 | 492,900 | |||||||
|
|
|
|
|||||
Loads hauled via BCO Independent Contractors included in total truck transportation |
245,950 | 233,400 | ||||||
Revenue per load: |
||||||||
Truck transportation |
||||||||
Truckload: |
||||||||
Van equipment |
$ | 2,242 | $ | 1,729 | ||||
Unsided/platform equipment |
2,698 | 2,374 | ||||||
Less-than-truckload |
631 | 598 | ||||||
Total truck transportation |
2,227 | 1,802 | ||||||
Rail intermodal |
2,710 | 2,438 | ||||||
Ocean and air cargo carriers |
5,157 | 3,761 | ||||||
Revenue per load on loads hauled via BCO Independent Contractors |
$ | 2,277 | $ | 1,848 | ||||
Revenue by capacity type (as a % of total revenue): |
||||||||
Truck capacity providers: |
||||||||
BCO Independent Contractors |
44 | % | 46 | % | ||||
Truck Brokerage Carriers |
49 | % | 46 | % | ||||
Rail intermodal |
2 | % | 3 | % | ||||
Ocean and air cargo carriers |
4 | % | 3 | % | ||||
Other |
1 | % | 2 | % |
(1) |
Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
March 27, 2021 |
March 28, 2020 |
|||||||
BCO Independent Contractors |
10,498 | 9,444 | ||||||
Truck Brokerage Carriers: |
||||||||
Approved and active (1) |
49,538 | 38,879 | ||||||
Other approved |
23,246 | 16,657 | ||||||
|
|
|
|
|||||
72,784 | 55,536 | |||||||
|
|
|
|
|||||
Total available truck capacity providers |
83,282 | 64,980 | ||||||
|
|
|
|
|||||
Trucks provided by BCO Independent Contractors |
11,268 | 10,112 |
(1) |
Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
Thirteen Weeks Ended |
||||||||
March 27, 2021 |
March 28, 2020 |
|||||||
Revenue |
100.0 | % | 100.0 | % | ||||
Purchased transportation |
77.5 | 76.5 | ||||||
Commissions to agents |
7.8 | 8.1 | ||||||
|
|
|
|
|||||
Gross profit margin |
14.7 | % | 15.4 | % | ||||
|
|
|
|
|||||
Gross profit |
100.0 | % | 100.0 | % | ||||
Investment income |
0.4 | 0.8 | ||||||
Indirect costs and expenses: |
||||||||
Other operating costs, net of gains on asset sales/dispositions |
4.0 | 5.8 | ||||||
Insurance and claims |
11.4 | 17.5 | ||||||
Selling, general and administrative |
24.0 | 31.7 | ||||||
Depreciation and amortization |
6.4 | 8.0 | ||||||
|
|
|
|
|||||
Total costs and expenses |
45.8 | 63.0 | ||||||
|
|
|
|
|||||
Operating margin |
54.6 | % | 37.8 | % | ||||
|
|
|
|
Exhibit No. |
Description | |
(31) | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.1* | Chief Executive Officer and principal financial officer certification, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
(32) | Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Chief Executive Officer and principal financial officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith |
** | Furnished herewith |
LANDSTAR SYSTEM, INC. | ||||||
Date: April 30, 2021 | /s/ James B. Gattoni | |||||
James B. Gattoni | ||||||
President and Chief Executive Officer; Principal Executive Officer; | ||||||
Principal Financial Officer; Director | ||||||
Date: April 30, 2021 | /s/ James P. Todd | |||||
James P. Todd | ||||||
Vice President and Corporate Controller | ||||||
of Landstar Systems Holding, Inc.; Principal Accounting Officer |