Landstar System Inc (NASDAQ:LSTR) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 08:00 am ET

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Landstar System Inc (NASDAQ:LSTR) Q1 2018 Earnings Conference Call - Preliminary Transcript

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

Executive
James B. Gattoni

Thank you, Caroline. Good morning and welcome to Landstar's 2018 first 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 this conference call that are not based on historical facts are forward-looking statements.

During this conference call, we may make statements that contain forward-looking information that relates to Landstar's business objectives, plans, strategies and expectations such information is, by nature, subject to uncertainties and risks, including, but not limited to, the operational, financial and legal risks detailed in Landstar's Form 10-K for the 2017 fiscal year, described in the section, Risk Factors and other SEC filings from time to time.

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

Our 2018 first quarter financial performance was by far the best first quarter performance in Landstar history. First quarter revenue and diluted earnings per share were both first quarter records, while gross profit and operating income were all-time quarterly records. During our year end 2017 earnings conference call, we provided 2018 first quarter revenue guidance to be in a range of $925 million to $975 million and diluted earnings per share to be in a range of $1.22 to $1.27 on April 3, 2018 in anticipation of a meeting with sell side analysts that was held on April 4, in conjunction with our Annual Agent Convention, we updated that guidance in a Form 8-K filing with the Securities and Exchange Commission providing for a first quarter range of revenue from $1.030 billion to $1.050 billion and diluted earnings per share in a range of $1.35 to $1.40.Our initial guidance anticipated the number of loads hauled via truck in the 2018 first quarter to exceed the 2017 first quarter in an upper single-digit percentage range and revenue per load on loads hauled via truck to exceed prior year in a mid-teen percentage range. Our updated guidance and actual first quarter results were higher than initially anticipated as both the number of loads hauled and revenue per load on loads hauled via truck exceeded the high end of our original guidance.

Revenue in the 2018 first quarter was $1.048 billion and diluted