2014 agent sales presentation 050714 1st q results

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Page 1: 2014 Agent Sales Presentation 050714 1st Q results

Insert Customer/Meeting NameAnd logo here

Page 2: 2014 Agent Sales Presentation 050714 1st Q results

Transportation Management Services Traditional Transportation Services

• Transportation Management Systems (TMS)

• Truckload / LTL

• Integrated Solutions • Van, flatbed, over dimensional

• Outsourced Logistics • Trailer pools• Warehousing • Emergency / expedited

• Air• Ocean• Rail /Intermodal

Transportation & Logistics Solutions

Page 3: 2014 Agent Sales Presentation 050714 1st Q results

InformationWeek 500 Award WinnerInnovation in Technology

15 consecutive years

Quest for Quality Awards2002 - 2013

Top Ten 3PL Excellence Award 2002 - 2013

Awards

2013 Top 100 For-Hire Carriers, Top 50 Logistics Companies,

Top 50 Freight Transportation Firms , Top 25 Freight Brokerage Firms

#1 - 2013 ACT Transport 50

#3 – 2013 Transport 50 “Best in Security” Award 2012Intermediary Category, Tier 1

Page 4: 2014 Agent Sales Presentation 050714 1st Q results

Financial ResultsFiscal Year

$201

$177

$130

$150

$170

$190

$210

2012 2013

Operating Income & Operating Margin (1) (3)

$422

$406

$350

$375

$400

$425

$450

2012 2013

Gross Profit & Gross Margin (1) (2)

4

$2,771

$2,665

$2,400

$2,500

$2,600

$2,700

$2,800

2012 2013

Revenue (1)

47.5%

43.4%

(1) Continuing operations.(2) Gross margin equals gross profit divided by revenue.(3) Operating margin equals operating income divided by gross profit.

$0.07 $0.80

$2.71 $2.36

$-

$1.00

$2.00

$3.00

$4.00

2012 2013

Diluted Earnings Per Share

Discontinued Operations Continuing Operations

(In Millions)

15.2% 15.3%

$2.77$3.16

Page 5: 2014 Agent Sales Presentation 050714 1st Q results

Financial Results (Continuing Operations)First Quarter

$42,000

$45,000

$40,000

$42,000

$44,000

$46,000

2013 2014

Operating Income & Operating Margin (2)

$96,000

$105,000

$90,000

$95,000

$100,000

$105,000

$110,000

2013 2014

Gross Profit & Gross Margin (1)

5

$623,000

$688,000

$600,000

$620,000

$640,000

$660,000

$680,000

$700,000

2013 2014

Revenue

43.4% 42.7%

(1) Gross margin equals gross profit divided by revenue.(2) Operating margin equals operating income divided by gross profit.

$0.55

$0.61

$0.50

$0.55

$0.60

$0.65

2013 2014

Diluted Earnings Per Share

(In thousands except per share amounts)

15.5% 15.3%

Page 6: 2014 Agent Sales Presentation 050714 1st Q results

Financial ResultsStellar Returns

6

2012 2013 March 2014 (1)

ROE 38% 35% 35%

ROIC 28% 28% 28%

ROA 15% 16% 16%

(1) Trailing twelve months.

Page 7: 2014 Agent Sales Presentation 050714 1st Q results

Business ModelIndustries Served(As a Percentage of Revenue)

7

Appl/Furn.; 17.3

Auto; 9.2

Building Prod; 9.2

Chemicals, 2.0Clothes & Fabrics; 0.6

Container; 1.2Electrical; 2.6

Food; 5.6Govt.; 2.7Hazmat, Munit. & Expl.; 6.3

Liquor; 0.4

Machinery; 19.3

Metals; 9.1

Misc; 8.1

Paper; 1.4Plastic & Rubber, 3.0

Substitute Line Haul, 2.0

2013Revenue By Commodity

Page 8: 2014 Agent Sales Presentation 050714 1st Q results

Certifications

ISO 9001:2008 Registered

9001:2008

Page 9: 2014 Agent Sales Presentation 050714 1st Q results

9

Safety Culture

Total Accidents(per million miles driven)

2.01 2.03

1.91

1.82

2.01

1.701.751.801.851.901.952.002.05

2009 2010 2011 2012 2013

Page 10: 2014 Agent Sales Presentation 050714 1st Q results

10

0.900.74 0.69 0.69

0.60

0.00

0.20

0.40

0.60

0.80

1.00

2009 2010 2011 2012 2013

Cargo Claims RatioClaims per 1,000 Shipments

Page 11: 2014 Agent Sales Presentation 050714 1st Q results

11

March 2013

Dec 2013

March2014

Broker Carriers 31,771 32,116 32,879

BCOs (1) 7,851 7,927 7,922

Total 39,622 40,043 40,801

Third Party Truck Capacity Network

(1) Trucks provided by BCOs were 8,348, 8,432 and 8,424 at March 2013, December 2013, and March 2014, respectively.

Page 12: 2014 Agent Sales Presentation 050714 1st Q results

BCO Truck Turnover

41.0%

30.5%27.1%

23.8%27.0%

15.0%

25.0%

35.0%

45.0%

2009 2010 2011 2012 2013

Page 13: 2014 Agent Sales Presentation 050714 1st Q results

BCO Trailer Capacity

(At December 28, 2013)

0

2,000

4,000

6,000

8,000

10,000

Reefers Heavy Steps Flats Vans

5091,495

9,544

93

1,271

Page 14: 2014 Agent Sales Presentation 050714 1st Q results

Business Model

14

Landstar

Capacity

Agents

Customers

Capacity7,900 BCOs32,000 Approved CarriersAll Major U.S. Rail LinesOcean Cargo CarriersAir Cargo CarriersForeign Correspondent Networks

AgentsIndependent Business OwnersCustomer ServiceCapacity Sourcing/DispatchingNVOCC/IATA Agents

Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services to a broad range of customers utilizing a network of agents, third party capacity owners and employees.

Page 15: 2014 Agent Sales Presentation 050714 1st Q results

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Truckload• Platform• Van• LTL• Expedited• Heavy Haul

Intermodal• Reliable/Efficient Transportation• Substituted Services• Full Coverage•Door-to-Door and customized RTR offerings

International• NVOCC/OTI• IATA/IAC• Break Bulk/OOG• Projects

Transportation Management Solutions

• Transportation Management Systems (TMS)

• Outsourced Logistics• Integrated Solutions• Warehousing

Think You know

Landstar?

Think Again.

With Landstar,

We canMove It & Manage It.

Page 16: 2014 Agent Sales Presentation 050714 1st Q results

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LTL Services

Landstar delivers cost effective, comprehensive Less-than-

Truckload Services throughout North America ensuring you receive the reliable service

you’ve come to expect from Landstar

Page 17: 2014 Agent Sales Presentation 050714 1st Q results

17

Access to a vast network of national,

inter-regional and regional carriers

Increased visibility and flexibility within

your supply chain

Access to the most reliable capacity at market competitive

rates

Alternative web-based automated rating and routing

tool with “click and ship” visibility of all

orders

Landstar Advantage as an LTL Brokerage Services Provider

Page 19: 2014 Agent Sales Presentation 050714 1st Q results

19

Do you move freight in these markets?Landstar can provide full coverage solutions using Rail Intermodal.

Page 21: 2014 Agent Sales Presentation 050714 1st Q results

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Financial Strength Landstar International agents provide their customers global services expertise

and unparalleled personal attention

Landstar International agents can integrate and coordinate forwarding

services with other Landstar capabilities e.g. Heavy haul and long haul drayage

operations

Air and Ocean freight service can be combined with other logistics functions

such as 3PL and Warehousing

Landstar Advantage as an INTERNATIONAL FREIGHT FORWARDER

Page 22: 2014 Agent Sales Presentation 050714 1st Q results