Q4 2024 Landstar System Inc Earnings Call Transcript
Key Points
- Landstar System Inc (LSTR) achieved record revenue performance in its heavy haul service offering, generating approximately $498 million in 2024.
- The company reported a 3.1% increase in overall truck revenue per load in the fourth quarter of 2024 compared to the same period in 2023.
- Landstar System Inc (LSTR) maintained a strong balance sheet with cash and short-term investments of $567 million at the end of the quarter.
- The company declared a $2 per share special dividend and repurchased approximately 452,000 shares of common stock during the 2024 fiscal year.
- Landstar System Inc (LSTR) reported an improvement in safety performance, with an accident frequency rate of 0.59 DOT reportable accidents per million miles, a 2% improvement compared to 2023.
- The freight environment in the fourth quarter of 2024 was characterized by relatively soft demand and readily available truck capacity, impacting overall performance.
- Landstar System Inc (LSTR) experienced a 3.4% decline in the number of loads hauled via truck in the fourth quarter of 2024 compared to the same period in 2023.
- The company's BCO truck count decreased by approximately 10% year-over-year, reflecting challenges in retaining and recruiting independent operators.
- Insurance and claims costs increased to $30.1 million in the fourth quarter of 2024, up from $27.3 million in the same period in 2023, due to increased severity on cargo claims.
- Variable contribution margin decreased to 13.8% of revenue in the fourth quarter of 2024, compared to 14.8% in the same period last year, primarily due to increased rates paid to truck brokerage carriers.
Good afternoon and welcome to Landstar System Incorporated year-end 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 Franklin Lonegro, President and CEO; Jim Applegate, Vice President and Chief Corporate Sales Strategy and Specialized Freight Officer; Jim Todd, Vice President and CFO; Joe Beacom, President of Landstar System Holdings Incorporated; Matt Dannegger, Vice President and Chief Field Sales Officer; Matt Miller, Vice President and Chief Safety and Operations Officer.
Now I would like to turn the call over to Jim Todd. Sir, you may begin.
Thank you, Arlene. Good afternoon and welcome to Landstar's 2024 fourth quarter earnings conference call.
Before we begin, let me read the following statement. The following is a Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. Statements made during
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