Landstar System Inc. (NASDAQ:LSTR) Q3 2018 Earnings Conference Call - Final Transcript
Oct 25, 2018 • 08:00 am ET
Good morning and welcome to Landstar System Inc.'s Third 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 would like to turn the call over to Mr. Jim Gattoni. Sir, you may begin.
Thank you, Daryn. Good morning and welcome to Landstar's 2018 third quarter conference call.
(Forward-Looking Cautionary Statements)
Our 2018 third quarter financial performance continued to build on the outstanding record results Landstar achieved in our 2018 first half. Third quarter revenue, operating income and diluted earnings per share, each set all-time quarterly records. During our second quarter earnings conference call, we've provided 2018 third-quarter revenue guidance to be in a range of $1.175 billion to $1.225 billion.
Revenue in the 2018 third quarter was $1.202 billion, approximately 27% above our 2017 third quarter. Our 2018 third quarter revenue guidance anticipated the number of loads hauled via truck to be similar to the 2018 second quarter or 7% to 9% above the prior year third quarter. 2018 third quarter truckload volume increased 7% over the 2017 third quarter.
As it pertains to the quarter-over-prior year quarter comparison, note that the 2017 third quarter included approximately 16,000 loads hauled via truck in support of disaster relief services linked to the storms that impacted the Southeastern United States and Texas. Excluding loads hauled via truck for disaster relief services in the 2017 quarter, 2018 third quarter truckload volume increased 10% over the 2017 period. Our third quarter guidance also anticipated revenue per load on loads hauled via truck to exceed prior-year in the range of 19% to 22%.
Revenue per load on loads hauled via truck in the 2018 third quarter increased 19% over the 2017 third quarter. Our third quarter guidance called for diluted earnings per share to be in the range of a $1.58 to $1.64. Actual third quarter diluted earnings per share was $1.63. My prepared remarks during the 2018 second quarter earnings conference call, including our anticipated gross profit margin for the 2018 third quarter to be in the range of 14.4% to 14.6%.
Actual gross profit margin in the 2018 third quarter was 14.3%. The shortfall on the 2018 actual gross profit margin to our guidance was primarily due to mix as a higher percentage of truck loadings during the quarter was hauled via truck brokerage carriers driving the gross profit margin lower than expected. During the 2018 third quarter, truck loadings increased over the prior-year month by 12%, 8% and 2% in July, August and September respectively.
Excluding the loads hauled via truck related to disaster relief services from fiscal September 2017, the number of loans hauled via truck in