Landstar System Inc. (NASDAQ:LSTR) Q1 2017 Earnings Conference Call - Final Transcript
Apr 27, 2017 • 08:00 am ET
Good afternoon, and welcome to Landstar System Inc. First Quarter 2017 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 Jim Gattoni, President and CEO; Kevin Stout, VP and CFO; Pat O'Malley, VP and Chief Commercial and Marketing Officer; Joe Beacom, VP and Chief Safety and Operations Officer. And now I would like to turn the call over to Jim Gattoni. Sir, you may begin.
Thank you, Rita. Good morning, and welcome to Landstar's 2017 First Quarter Earnings Conference Call. This conference call will be limited to one hour. Due to a high level of participation on these calls, I'm requesting that each participant have a two-question limit. Time permitting, we can circle back for additional questions. But before we begin, let me read the following statement. (Forward-Looking Cautionary Statements).
Our 2017 first quarter performance exceeded our expectations. First quarter revenue, gross profit, operating income and diluted earnings per share were all first quarter records. During our February 2 year-end 2016 earnings conference call, we provided 2017 first quarter revenue guidance to be in a range of $725 million to $775 million and diluted earnings per share to be in a range of $0.70 to $0.75. Revenue in the 2017 first quarter was $781 million and diluted earnings per share was $0.77, both above the high end of the guidance.
Revenue exceeded our expectations due to increased loads and revenue per load on loads hauled via truck. Loads hauled via truck in the 2017 first quarter increased 10% over the 2016 first quarter, ahead of our mid- to high single-digit growth expectation. In comparing 2017 first quarter truck loadings to the 2016 first quarter, the fact that January 1, 2017, fell on a Sunday and January 1, 2016, fell on a Friday favorably impacted our productivity. We estimate that the occurrence of New Year's Day on a Sunday in 2017 versus a weekday in 2016 favorably impacted the number of loads hauled during the 2017 first quarter by approximately 2%.
Excluding the favorable impact in January of the timing of New Year's Day, we saw consistent growth in truck volumes in each month of the quarter, with truck loadings increasing over the prior year month by 9%, 7% and 9% in January, February and March, respectively.The increase was broad based amongst many customers and industries. Our customer base is highly diverse. Revenue in the 2017 first quarter from our top 100 customers based on 2016 revenue was slightly lower than 2016, while revenue from all other customers increased 18% in the 2017 first quarter over the 2016 first quarter. As it relates to revenue per load, we expected revenue per load on loads hauled via truck to be equal to or slightly below the 2016 first quarter.
Revenue per load on loads hauled via truck in the 2017 first quarter was 1% higher than the 2016 first quarter. The trend in revenue