agent presentation 1q 2016
TRANSCRIPT
ACF Transportation
Transportation Management Solutions
North American Services• Truckload Van• Stepdeck, Heavy Haul and
Specialized• LTL Van / Flat• Expedited & Emergency• Border Crossing• Temperature Controlled• Air Freight• Rail Intermodal
International Services• Air Charter Worldwide• International Air Freight• Customs Brokerage• Ocean Services• Project Cargo
InformationWeek 500 Award WinnerInnovation in Technology
15 consecutive years
Quest for Quality Awards2002 - 2014
Top Ten 3PL Excellence Award 2002 - 2014
Awards
2015 Top 100 For-Hire Carriers, Top 50 Logistics Companies,
Top 50 Freight Transportation Firms, Top 25 Freight Brokerage Firms
#1 - 2015 ACT Transport 50
#5 – 2014 Transport 50 “Best in Security” Award 2012Intermediary Category, Tier 1
Financial Results First Quarter
$115,443
$112,224
$110,000
$112,000
$114,000
$116,000
1Q15 1Q16
Gross Profit & Gross Margin (1)
4
49.6%
(1) Gross profit equals revenue less the cost of purchased transportation and commission to agents. Gross margin equals gross profit divided by revenue.
(2) Operating margin equals operating income divided by gross profit.
(In thousands, except per share amounts)
15.1% 15.8%
49.1%
$762,380
$711,644
$600,000
$640,000
$680,000
$720,000
$760,000
$800,000
1Q15 1Q16
Revenue
$49,045
$47,932
$46,000
$47,000
$48,000
$49,000
$50,000
1Q15 1Q16
Operating Income & Operating Margin (2)
$0.67
$0.69
$0.66
$0.68
$0.70
1Q15 1Q16
Diluted Earnings Per Share
Financial Results Fiscal Year
$224,372
$241,706
$210,000
$225,000
$240,000
$255,000
2014 2015
Operating Income & Operating Margin (2)
$472,867
$499,488
$465,000
$475,000
$485,000
$495,000
$505,000
2014 2015
Gross Profit & Gross Margin (1)
5
48.4%
(1) Gross profit equals revenue less the cost of purchased transportation and commission to agents. Gross margin equals gross profit divided by revenue.
(2) Operating margin equals operating income divided by gross profit.
$3.07
$3.37
$2.90
$3.10
$3.30
$3.50
2014 2015
Diluted Earnings Per Share
(In thousands, except per share amounts)
14.8%
15.0%
47.4%
$3,184,790
$3,321,091
$3,000,000
$3,150,000
$3,300,000
$3,450,000
2014 2015
Revenue
2015 Financial ResultsStellar Returns
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ROE 31%
ROIC 25%
ROA 15%
Industries Served1Q 2016 Revenue by Commodity(As a Percentage of Revenue)
7
Consumer Products/ Appliances/Furniture 20.5
Machinery14.6
Automotive9.7
Other 24.2
Energy 2.8
Foodstuffs 5.5
AA&E, Hazmat 7.5
Metals 6.6Building Products 8.6
Certifications
ISO 9001:2008 Registered
9001:2008
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Safety Culture
Total Accidents(per million miles driven)
1.911.82
2.01 2.00
2.14
1.60
1.70
1.80
1.90
2.00
2.10
2.20
2011 2012 2013 2014 2015
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0.69 0.690.60 0.57 0.52
0.00
0.20
0.40
0.60
0.80
2011 2012 2013 2014 2015
Cargo Claims RatioClaims per 1,000 Shipments
11
1Q 2015
1Q2016
Broker Carriers 40,320 45,271
BCOs (1) 8,478 8,889
Total 48,798 54,160
Number of Truck Capacity Providers
(1) Trucks provided by BCOs were 9,497 and 9,500 at March 2015 and March 2016, respectively.
BCO Truck Turnover
27.1%23.8%
27.0%
22.0%25.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2011 2012 2013 2014 2015
BCO Trailer Capacity(At December 26, 2015)
0
2,000
4,000
6,000
8,000
10,000
12,000
Reefers Heavy Steps Flats Vans
4961,468
11,423
1181,256
Business Model
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Landstar
Capacity
AgentsCustomers
Capacity8,900 BCOs45,000 available carriersAll major U.S. rail linesOcean cargo carriersAir cargo carriersForeign correspondent networks Agents
Independent business ownersCustomer serviceCapacity sourcing / dispatchingNVOCC / IATA agents
Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a
network of agents, third party capacity owners and employees.
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From project
management to a
single load, we have a
solution for you.
Transportation Management Solutions
Truckload• Platform• Van• LTL• Expedited• Heavy Haul• Temperature-Controlled• Border Crossing
International• NVOCC / OTI• IATA / IAC• Customs brokerage• Project Cargo
Intermodal• Reliable, environmentally clean transportation • Transcontinental reach• Double-stack technology• Over 200,000 53’ containers additional capacity
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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
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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
• Nations' third largest premium ground provider
• Our Expedited Ground service is point to point, exclusive use
• No hubs or cargo transfers (99+% claim free)
• Highly secure, low risk with a service guarantee
• Real time tracking with on-board communication
• Available 24/7, nationwide
Ground Services
Cold Chain Services
• Clean Pharma Grade trailers
• Temperature controlled and
thermal mapped equipment
• Temperature monitoring
technology
• Door sensors track opening and
closing events
• Hard copy time / temperature
receipt at delivery
Equipment and Technology
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Intermodal Services
Cost Effective * Efficient * Safe * Reliable Environmentally Friendly
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Do you move freight in these markets?Landstar can provide full coverage solutions using Rail Intermodal
Intermodal Services
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Let our experts guide you through the challenges!Air, Ocean and Customs arrangements
International Services
With Landstar,We Support Your
Global NeedsDoor / Door• DDP/DAP Ops• DDP/DAP Pricing• Over-the-road transport
International Air• Freight Forwarder• IATA/CNS/TSA Accredited• Foreign to Foreign• Aircraft Charter• WW Air Door/Door Express
Global Agent Network • Preferred Partner Network
• WCA Family of Networks• Global Ocean Agency Lines
Total Cargo Solutions• Integrated Services• Customs Brokerage / Clearance /
Bonds• Cargo Tracking• Cargo Insurance
Ocean• FMC NVOCC / OTI / Freight
Forwarding• Safety / Trade Compliance• Project Cargo• Breakbulk / OOG• Containerized Cargo
Standard equipment Special equipment
• Less than Container Load
International Capabilities
Border Crossing – Mexico Services
• Door-to-door service into Mexico
• OTR, Rail Intermodal, Air, Ocean
• C-TPAT certified Mexican carriers
• Secure drop yards at all key border crossings
• New 50 acre/ 8,000 square foot facility being built in Laredo, TX
o 30 bay cross dock and transload facility
o 120 ton bridge crane to move freight flatbed to flatbed
• Brokerage and Forwarding services
• Consolidated invoicing
Border Crossing - Canada
Providing Cross Border and Intra-Canadian services
for more than 20 years
• Door-to-door service into Canada
• OTR, Rail Intermodal, Air, Ocean
• FAST-certified Canadian-domiciled owner-operators