February 3, 2000 JACKSONVILLE, FL -- Landstar System, Inc. (NASDAQ: LSTR) reported record 1999 fourth quarter net income of $15.6 million, or $1.63 per diluted share, on record revenue of $380.1 million. Last year’s fourth quarter net income was $11.3 million, or $1.07 per diluted share, on revenue in the quarter of $333.9 million. Revenue increased 14 percent while net income rose 38 percent.
Landstar’s carrier group of companies generated $284.1 million of revenue in the 1999 fourth quarter versus 1998 fourth quarter revenue of $251.3 million, which represented a 13 percent increase. Landstar’s multimodal services group of companies reported revenue of $89.4 million in this year’s fourth quarter compared to $76.4 million in the 1998 fourth quarter, which represented a 17 percent increase. Landstar’s wholly-owned insurance subsidiary, Signature Insurance Company, had $6.6 million of premium revenue in the 1999 fourth quarter versus $6.1 million in the 1998 fourth quarter.
Net income for the 1999 fiscal year was a record $45.9 million, or $4.55 per diluted share, compared with income from continuing operations of $34.5 million, or $3.10 per diluted share, in the prior year. Revenue was $1.4 billion in 1999 versus $1.3 billion in 1998.
Landstar’s carrier group of companies’ revenue in the 1999 full year period was $1.1 billion and the multimodal services group of companies’ revenue was $301 million. In the 1998 year, the carrier group’s revenue was $981.4 million and the multimodal services group’s revenue was $278 million. Signature Insurance Company had premium revenue of $25.8 million in the year ended December 25, 1999 versus $24.2 million in 1998.
"Once again, Landstar has reported superior results," said Landstar’s Chairman, Chief Executive Officer and President, Jeff Crowe. "The 1999 fourth quarter clearly demonstrated the strength of our non-asset based, variable cost business model. The strong fourth quarter results were fueled by a 14 percent increase in revenue and a 22 percent improvement in operating margin. Demand for our service was very strong in the quarter which partly contributed to our margin expansion," said Crowe. "Our margins also improved due to enhanced administrative and information systems and better safety results."
Landstar repurchased a total of 636,000 shares in the fourth quarter. For the full 1999 year, Landstar has repurchased a total of 1,291,000 shares of its common stock at an aggregate cost of $51,384,000.
Landstar’s carrier group ended 1999 with 8,170 power units provided by its business capacity owners, while the multimodal group ended the year with 624 power units provided by its business capacity owners.
"Landstar disqualified a large fleet in the 1999 fourth quarter due to safety related regulatory compliance issues which resulted in lower than anticipated power capacity. We still ended the year with 271 more power units than we had the prior year," said Crowe.
"We are very excited about year 2000, especially our new on line freight information service, eFr8.com. This new Signature Technology Services, Inc. offering enables users to pre-program a system of alerts to bring them the results of their customized searches, even when they’re not on line," said Crowe. "Increased utilization of on line transportation service solutions is a natural extension of what Landstar does. We are a non-asset based transportation service provider, what better venue to conduct our service offerings than the World Wide Web."
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Landstar System, Inc. is headquartered in Jacksonville, Florida. The Landstar carrier group comprised of Landstar Gemini, Inc., Landstar Inway, Inc., Landstar Ligon, Inc. and Landstar Ranger, Inc., delivers excellence in complete over-the-road transportation services. The Landstar multimodal group comprised of Landstar Express America, Inc. and Landstar Logistics, Inc., delivers excellence in expedited, contract logistics and intermodal transportation services. All Landstar operating companies are certified to ISO 9002 quality management system standards.