Landstar System (LSTR) 27 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to Landstar System Incorporated's First Quarter Earnings Release Conference Call. [Operator Instructions] 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; Jim Todd, Vice President and CFO; Joe Beacom, Vice President and Chief Safety and Operations Officer.

Now I would like to turn the call over to Mr. Gattoni. Jim begin. may you Sir,

you, Bill. first to XXXX and Good earnings conference morning, quarter welcome call. Landstar's Thank

Before we begin, let me read the following statement.

a Act made The Securities on historical that is safe forward-looking under based statement following statements. are the are Litigation not Reform this of during Statements facts XXXX. conference call harbor Private

Landstar's we strategies plans, and call, may contain conference objectives, statements this that information business forward-looking During make that relates to expectations.

financial the SEC to time. cause to limited in or and subject materially Factors Risk to risk uncertainties uncertainties results actual section risks to, results and by differ filings from the Form could anticipated. and information, not risks operational, Landstar's other from time events XXXX or nature, historical is These in those Such the fiscal legal described included, detailed and for but XX-K year

should to information. Investors no undertakes such place any on forward-looking revise reliance not and forward-looking Landstar information, undue publicly or update obligation

freight Landstar was XXXX readily demand environment into and the truck with first demand well Given first soft. Heading XXXX services transportation relatively the the for performed current quarter. soft capacity, somewhat quarter, truck available in

quarter but Landstar not ever performance probably was faced first challenging our in most financial only for in the the performance, best addition, quarter its quarterly Landstar's first any XXXX the quarter comparison best history. history. In quarterly with was financial company's

the quarter over exceeded new for by first record revenue established first quarter XX%, all-time XXXX, Landstar. to a Prior at XXXX XXXX million. first first quarter the quarter $XXX revenue growing 'XX by

the XXXX unbroken that new earnings share established in Landstar income today. all-time quarterly remain diluted net records quarter and per fact, In first each

dramatically first In contrast, different the in XXXX the quarter. was environment freight

chain capacity, strong at quarter, was truck very disruption peak. truck transportation conditions available to a lack XXXX consumer the Those driving first highs. and at in back resulted was pricing all-time Looking of its demand supply

available today, demand summer soften we chain 'XX and began XXXX as in through the favoring bottlenecks carrying Truck Following currently in the freight capacity market a of clear. different to to more Beginning conditions quarter, environment. shipper. supply with are readily the clearly first began is

to our in relates Landstar's we line it As first were quarter expected. results with generally XXXX what performance,

XX% via Our the below below the first revenue range XX% in to be number XX%. first the and be quarter truckloads actual the loads a XXXX at first guidance. the XXXX the XX% hauled quarter in of volume end calls truck per of low in to truckload was range quarter hauled to truckload below number first The truck quarter of the for XX% guidance XXXX overall first XXXX via the to quarter of

in revenue by first driven normal truckload higher-than-anticipated came April, lower-than-anticipated truck trending the of Actual truckload month-to-month quarter, slightly was variance March truck first a weeks XX% revenue revenue the first the offset slightly per In XXXX several than is compared per in per revenue truck per to sequential guidance in our revenue expectations. in revenue near on below load guidance. high truckload per below was by trends. mostly better favorable slightly per the January, quarter end load load the February. XXXX The of

air expectations XX% first to to rail, was in XXXX and was was and the ocean mostly across decrease per and revenue due X% non-truck XX% ocean decrease with expectation of of all a transportation transportation As services, of services revenue in significant The the services, in lower other a ocean revenue $XXX in ocean non-truck revenue of volumes volume shipment, decrease XX% significant our per revenue respectively. transportation quarter. and this million and the quarter intermodal modes lower in in shipment. XX%, air, first below our or decrease XXXX line rail our The

parts different hauled considerably other the in challenging on release, better van transportation of via mentioned than were revenue truck revenue held equipment With equipment market, unsided/platform for comparison van quarter revenue The those respect more up the than much services. as for truckload on conditions earnings year over prior revenue and unsided/platform in to quarter equipment.

loads in data is revenue first load. more records heightened standards, excludes first a hauled and by by by to metric equipment still to peak disruption van strong quarter equipment, in on that pricing, the which as the to demand. first indicator unsided/platform billed chain XXXX are via surcharges historical One on Revenue this XXX% fuel hauled trucks, all-time paid customers BCO and loadings per supply consumer impacted less XXXX follow was revenue BCO. van be crushed pure we also mile for tends of the per quarter quarter Revenue although

years Revenue should unsided/platform It X% per In first significantly below by equipment truck from above the believe XXXX equipment as per noted XX%. van that softened compared on hauled mile below only pressure the a approximately remain and the BCO unsided/platform by van I BCOs amount of today quarter additional the XXXX pre-pandemic cost although revenue quarter. hauled mile rates first quarter. to will on equipment given in also operate was the revenue XX% ago. first per to significant pre-pandemic first year the in market the quarter on XXXX higher was BCOs ago, be has contrast, XXXX XXXX by mile than the remain X both Landstar a levels first quarter

equipment the and our loadings XX% of XXXX decreased were parts quarter consumer first on the machinery XXXX quarter. to Turning were which the decreased while up and durables XX%. XX% XXXX XX%, in first From in combined load the XX quarter, down almost modes XX% Total quarter to hazardous our Automotive XXXX XXXX total building below all volume, categories, quarter. the first Loadings XX%, top materials commodity increased decreased a decreased first about volume. of to first loadings X%. products compared X% make

truck key and as capacity a industry trucking provider our throughout to brokers. known companies, XPLs other is Landstar truck

to of other entities Landstar truck more than commodity to those by capacity truck substitute times includes base, often tight behalf on capacity. During hauled provide our out service freight offering. readily including reach transportation during more group companies The Landstar almost haul truck all line our available truck periods of capacity,

Substitute loadings was our commodity one line pandemic. strongest of the throughout performance haul

other was offering revenue transportation based However, this service consumer on the XX% load in quarters, varies XX% below readily respectively. accessible. demand behalf XXXX and domestic first XX% XXXX XX% the clear XXXX on first companies for transition companies from first capacity our in behalf the XXXX a more significantly and XXXX Overall, indicator quarter quarter, hauled on volume and model, first other the XXXX truck was of of first decreased revenue quarter. in in the quarter of truck is Revenue hauled

customers, quarter which year driven none was in contributed Our highly over accounts. over loss we in the our environment first any quarter The quarter. volume the revenue remains over of primarily diversified of by X% prior freight business truckload XX,XXX experienced decrease XXXX overall than the of with major changes in rather

XXXX in truck truck and versus this count first XXX has turnover trucks Landstar count BCO rates year. experienced truck quarter, During decreased time increased decreased. when decreased has Historically, BCO by the last approximately X%

with recent hauled by months, rates equipment decreased on rapid equipment, provided is years. Over respect was which van truckload at rate BCOs. to in the type decrease XX The pace services most a largest truckload past the primary

increase unscheduled time extended influenced turnup in the been parts. on used potential has by of awaiting period existing BCO truck repairs the for impacted high are used impacts to issue service to trade out significant maintenance cost a newer downtime. BCO The of by which their subject may get unforced the and the road is to trucks, for cost trucks truck ability and also back also that of less of used a be

other P&L quarter Todd performance. metrics regarding pass to comment I to the first additional will on now Jim XXXX

quarter will Thanks, XXXX quarter, other information release. G financial in Jim various has press the Jim. on certain covered information included I first cover so first our

margin in first XXXX In of XX.X% the period profit was margin XX.X% profit gross in of XXXX. quarter. corresponding quarter, Gross $XXX.X million compared $XXX.X the XXXX profit profit million in was to revenue to compared the gross as XXXX quarter first first of the of gross

first revenue was XXXX contribution in to was period XXXX first compared same quarter In million to Variable the $XXX.X of XXXX quarter. the margin compared last year. variable the contribution in $XXX.X quarter, in XX.X% XX.X% million first

contribution contribution margin lower variable variable to an the revenue to first by in rate truck on the the was the than margin XXXX increase basis compared first The XXXX points brokerage increased XXX to attributable carriers quarter in paid brokerage truck XXXX primarily rate quarter generated paid quarter. was first in carriers the as

contribution per truck a result, load variable truck XXXX the load. XX% XXXX per the quarter to in As in first increased revenue X% brokerage brokerage first quarter, despite compared decrease a

trailing contractor quarter debt, first increase XXXX and million primarily XXXX. Other maintenance equipment equipment. was operating $XX.X to on due trailing the used bad offset were costs million gains $XX.X to increased an increased in provision increased sales for of This by in costs partially compared

and were Insurance was to and XXXX of severity to claims prior net estimates XXXX. compared during primarily XXXX XXXX decreased quarter decreased first as million accidents decrease in the claims claim of insurance in and million unfavorable The $XX.X $XX.X compared in to costs year period. the costs development attributable

first million estimates. $X.X year to During $X.X adjustments net claims insurance unfavorable respectively, the and quarters, and included XXXX million, XXXX prior of costs and claim

in the the BCO percentage XXXX decrease BCO period claims period. in XXXX was The claims costs point a and in XXX attributable the entirely load. However, revenue of revenue and to revenue X.X% increase total insurance BCO per insurance of BCO as cost were and revenue almost basis of XX% in X.X%

in under pharmacy $X.X for experience. favorable selling, and first costs information and was of to The million offset a costs million attributable administrative by result XXXX the medical quarter, and and the million wages, provision programs the the primarily employee provision costs administrative slight under XXXX quarter. general company's variable for million the compared were Selling, was and compared in in increase programs decreased as in XXXX quarter compensation costs In $XX.X technology decreased $XX.X increased XXXX. increased compensation benefit a first $X.X entirely general almost variable to first to loss

from capacity. Depreciation in use and entirely quarter first and million upgraded $XX.X was applications, tools new and almost $XX.X in due for resulting compared million increased XXXX to This investment continued the agents XXXX. increase amortization on by depreciation in software to was

quarter compensation first the to XX.X% than net The the XXXX was of XXXX income benefits in XX.X% XX tax the quarter, in primarily effective larger tax from quarter. of stock-based XXXX effective first higher during points income tax excess arrangements the basis rate attributable rate first

cash at Cash million. $X were balance $XXX flow our short-term of from and quarter million quarter with for capital first investments the operations sheet. expenditures ended Looking was XXXX the $XXX cash We million. and

you, to Jim. Back

Thanks, Jim.

year-over-year the comparisons the year-over-year success only challenging. comparisons. the difficult Sequentially, see second for into quarter, XXXX second began XXXX revenue slightly record per quarter, less very are XXXX made was XXXX the truckload Our we X.X% soften. in below first second in quarter quarter. in Heading pricing first the Beginning to XXXX truck quarter

However, the second quarter. truckload has in quarter, the be XXXX to continued XXXX increasing first X.X% over strong

Yesterday's was count historical sequential made that trending patterns this truckload patterns. the earnings context monthly refers years April Historical to the early below prior in release X note pandemic. sequential to

we in May the count anticipating normal April, Given early in more in and lower patterns truckload trends sequential return volume that will month-to-month start in to truckload June. are

to expect assuming loadings normal equal an comparing to our XXXX trends, the to we count quarter account increase the first truckload volume. into truckload Taking second in in early X% quarter compares about second the volume XXXX first return historical average quarter month-to-month and experience approximately quarter. when April of to This truckload

pricing truckload expect in to slightly softened have April. We XXXX below as quarter the first early be significantly rates

revenue compared to quarter relatively We the quarter truck in drove revenue primarily due be below truckload of per which XXXX quarter. above expect point to to revenue January first the first XXXX load a quarter XXXX's per for The second to second decrease X% starting the average XXXX range quarter of first X%. per the is strong truckload the

the in to first to modes $X.XX XX% $X. quarter for XXXX range share billion, of assumptions, billion to second expect be and XX%. to these our non-truck of by Based We also exceed per $X.X to the to XXXX expect we range on in diluted be in the earnings $X.XX quarter revenue revenue the

costs earnings and The quarter There impacting of $X guidance to the XXXX incorporates per range some are second items to a XX.X%, share contribution range specific quarter. earnings similar and $X.XX. viable share of to first to guidance XXXX XXXX compared the the quarter of claim diluted margin quarter of XXXX actual first XX.X% diluted insurance second $X.XX per

Landstar's the levels. the convention we to annual cost first Second expect medical quarter SG&A normalized loss of to benefits, above to quarter experience, more be due expected return employee to in is April, plus primarily

We expect of the quarter variance This purchased would XXXX brokerage XXXX in transportation of in carriers X% versus results the XXXX what below higher paid contribution the quarter. that paid X% to first truck to actually to rate the variable expectations anticipated a be from be quarter. second first was

tax per the quarter driving second to share be expected the higher earnings first the rate Also, than quarter. to quarter, unfavorable first a $X.XX compared slightly variance is

Bill, that, with will And we to questions. open

have We Instructions] question the of [Operator Wolfe Group the from of Scott coming Research. line first

Jim, that in just in to freight get changes with you're assumption? to May on What What's perspective June. on to seasonality want start I in get your and sort more May seasonality? normal driving counting line of

dip and little the lower tell actually of April, off. because you the It's the seen leveling a bit truth, we've to

we're trends. to very still. there. trough, we April. of kind It's XXXX. going of want just going on go off expect are April this volumes then hit the really And a just normal They're -- And don't to coming stabilization strong it's bit compared we're seasonal think just little and trough it to back to we seeing but I to in strong relatively a call what's So

So mostly to due April it's the softness. really

rev And of rate? the you you a talk to per Okay. look pressure And spread per are How percent, contract spot down better, spot rate thinking contract be then that? bottom still there's means lot load? rev a doesn't think at then I few are if get for that about XQ further expecting rate. about this between you from to that XQ when to all huge do and And load

Well, looking look -- rolling our at, a average. at when we what Scott, is XX-day

show rates every XX day-to-day like last that all get I spot the what place. over bounce report to So because look day the days our

in I'm day-to-day -- today a think looking and a the bit lot I is bounce unpredictable. what we're little So at what of

say within I going to think -- comfortable we're minus in first that be range. we're term quarter first the quarter X% X% to minus to below short you're that

a spot Beyond spread are that, and and stay in now it's that spread the rate whether am sometime rate and contract later going going that's eventually believer still to I I to hard. cycles, or you're apart apart firm that, that summer. rate, believe or in do spot up

-- spot into April. I drop we don't want recently to seen think bit the call a have I a little trough, we're more rates but

that the a might to the rates we think call spot are And little so there's and want spread don't contract is it be, but down. we're spot right because X% aggressive, I X% a high pretty little don't further bit large how go with much between can now of relatively know it to I concern comfortable where for that I are now. and

I mean that my -- guess question. I was

would QX bottom do further your be rev -- load bottom is you half? is the load this per there per if of say just rev do back the if in think Let's spot in it's for think the QX spot, spread, contract into you or your for the because pressure

there'll think back when pressure to even seasonality -- economy I start the half pretty further the midway second normal the comfortable don't more, off of be we're with load I quarter. trends end we drops per on into the revenue after through things this through unless get would the think

normal which see peak to XX-month second in XX- -- I you normal pretty -- we normal to an months of look on my cycle. rise believer the will through again. pandemic, going it happen was We on demand. I'm things to probably started into start trends look cycles saying it's peak the It in you to almost that a and through comfortable as our quarter because a the ago, after XX trough, I'm tremendous XX, theory and an think here. rates dropping then economic at drop the But we XX-month February, happened and seeing a trough to cycled if Now slowing based pandemic,

We line Alliger have Sachs. Goldman the of next from question the Jordan of coming

of that of the sort dry just in curious, with XX% interesting with unsided, the of the van X%. worsening? does converges? curious versus I'm worse curious, the versus the dry is minus Just the of the on with the more van pricing narrow pricing spread minus all sort other the at it Like the versus around the dynamics way here. sort Or the I'm of just from unsided where dry sort around unsided gap van

would I converged right it's actually say now.

revenue ever flatbed revenue If between about never per the load that per our rate. was -- you last at the look our higher compared van a it on to gap now first rate, between And it. load the than flatbed. -- as as where seen I've what's truth. rate typically The to watch was tell van year's we gap interesting, variance quarter on van close below I've seen you is so

year, last and load ever was That per van the load me the close was spread it's all-time quarter between revenue first an been. only the gap. But to revenue per It like was XX%. the flat

at look XX% it about XX% between tracks history, you gap. If and

now are XX% flat to van back load. more normal right and per We gap XX% to between revenue the

say I normalized between So two. it's would spreads at those between already its the point

at next coming the have of the line Jack Atkins question We from Stephens.

Okay.

back hefty rates a at with we When kind sticking broadly of kind to I today the prepared look levels, fuel. rate XXXX a they're questions going But back series you're kind premium for of moment. in -- per today rate to guess, kind market though, rates, pretty So spot excluding pre-pandemic. load where versus of comments Jim, the still of seeing here of

have where from spot -- why you rates significantly out? of I kind rates your like decouple what are of settled a to the as spot do time feel kind guess player, market over going

industry what because always our higher got hook, little -- is bit a in than you've -- a there. you the BCO reading and got in Well, lot think stuff drop got rates you're I you trailers are our

really and -- got non-routine dedicated business. not route, it's specialized type You've irregular

people -- there's routine, we play. that run much is spot, in pretty if So where not that's

we are a we do generally bit So -- little always higher. sit

the know pre-pandemic before trade were it lot That that if And per crazy. read or was was XX% And or industry below revenue above. mile you we don't still yes, if there I coming that reports out certain last was stats. February. a year remember, I were when were last XX% of pre-pandemic, February year We the

speak really then. it's you back it to -- speak see to get industry couldn't relative to tough But hands it's data I hard around stability. my for me So because just the

Our trends cost we but trucks, the look load, own cost I've of worried it XX trends that may below and of we go in the the us but compared have system, are our The we look think You could pre-pandemic -- performing I in at We're over today, up years right? norms, if on at so that look don't to I'm load. got at our right? and cost absurdly that a historical to pre-pandemic. you trends -- below going a not insurance $XXX system, feel cost XXXX, $XX a I'm BCO back, load

built the back So system going those into it's you're into and all don't things there. And drop the think to industry. I

more would few right? the at next some about somebody amount capacity months or available If already seeing some the truck the -- truck in see in those few come trucks out. are up, guess, authorizations revocations, and out So quarters, to look you we're revocations, turn going with I over industry of kind of stats you're put

system. So I of down here the more to going trucks out stability just a more, there's because go push if it's think rates

I question. my guess love kind on thoughts cross-border. lot your Yes, yes, follow-up of maybe sense. makes absolutely. get to a for I'd gears of shifting That

that the There's in a a terms You happen of cross-border lot over franchise. years. have good perhaps things next guys freight few large could of cross-border

would on business to of cross-border get the your seeing that's you Just today, year. kind curious over how what take this think to of you're trend be your in going course

this of on Just sort start move view rail get that seeing there? via freight we longer-term increase some Do item. of to to to some cross-border would it then positive that And love you think Or competition? are reinforces new the does thoughts partnerships your rail. a

say and us Joe, expert Well, morning to Jack, good Joe with an is you didn't but he's actually Cross-border. at today, Mexico

some And market both the about cross-border bit Yes, held Yes. has and still market, to bullish Great near-shoring while. compared quite a better, on we're of -- from seeing up very a that a a for and from evidence as quite the we've that heard price volume question. perspective. overall

there. yes, we're seeing optimistic a still opportunities So there, still pretty lot of

to that shakes saw what going guess, and kind mergers relates guess, the commentary on of rail it it of out have we're we'll some I see. to As the more thing. and the about that competition and I now rail, just depends how something say competitive for the just service rail enough or or don't -- the whether on certainty that have And on, of degree it's what whether becomes requirements thing with go that I are, detail any us. supportive a can more not. of I the to

have the capabilities develop that and relationships that the But all relationships to carrier just around border then and some near-shoring of on that pretty on stuff. we just the be on and that the of be going to capabilities cross-border based some to and forward, stuff kind -- transloading and continue the the on seem the business of bullish continue materializing we border things

there. optimistic pretty remain we So

was Jack, to X% overall on revenue Mexico is revenue only compared than that, revenue. more much down down cross-border top in our of drop -- our about the

have of of from line the Moore coming next We Stephanie the question Jefferies.

the cycle. now pretty And I that been think Jim, on everything I perspective that's all a can abnormal we years always appreciate, where and in are we think, transpired. admit I your it's X

I your to get perspective. So just wanted

currently clearly you it capacity on levels. stands where outlined think and demand I

that into cycle, moved what economic as current while through of think at you you freight to But if U.S. XXXX? to, early this historical economists pointing I we recession compared maybe many -- some are an -- and XXXX think pan ones? especially go do could economists this least the out mean more do broadly how could think for

have contract rate the with to that's shift rates. have think of our differentiating you contract thing one factor peers who The one spot is from about actually some rate, we the Yes.

when probably if the XX-month weakens, we're to talk So see And drop about I -- volumes would further economy than XX- year. thinking we the into -- would an further look, drop in have we going rate worsening about, half we're clearly back we also that would the than currently going cycle, of if to see currently thinking we're about. than a we economy

truck, I'm the the believer cost cost drop insurance will the significant a And to new that due you'd levels to industry. driver of still in today and everything a pricing of a out wages, you own that will cost the But cost a system of back I truck When trucks burdens that it see pre-pandemic ties to running repairs, the happen. the costs from standpoint a think the get quicker. the of truck today,

thing think, my we're a to in will point. rate, one then It's little more So try I a like going stable worried where the and haul a And that. which I'd because here. be say far to in And just be, the control more going it volumes, aren't would from think about be little thing I point -- I'd drop-off a that be is there's that drop-off the we not just freight. trucks

of this competitive point in understood. current from compare rates our environment, as And you Any to just rationality just kind cycle? a this a previous market? in where other to -- periods maybe the No, then maybe this it enhanced at standpoint in are are given or how follow-up, seeing does what

at cycle, them a for pricing and time shippers And point of question looking our of requests coming us the usual don't is normalized advantage. quotes price of now, think cuts is lot for this be some getting a the this in of any happening. with cycle the there's shipper typical for stuff it's Well, the and at still cuts. price for for are We're I right to business.

the even we're drop-and-hook that. stuff of routine, some business, getting we Some do the of

the to And we walk you you try get you much haul can, that's hold one things that to as can't the away because a you and see trucks have freight. as of And and trigger. off sometimes

going enough trucks seeing or that like, hard low a going where they're haul it's truck. to being can't later, be pricing it for rate. not Now we're that with yet But push sooner I find to to

there but our cycle, Now drives that's time. right? what we're typical over the rates That's not spot back yet, up

have the Majors next Bascome coming Susquehanna. of question the We from of line

through October, how of kind G, a downside business might the and revenue hypothetical starting Jim scenario us walking in you perform. began

you think would has XX% you us a through how in based February. at might little trough to trying for and us walk kind honed I and you this far? off business perform how Can you you on with started walk so January to bit before anything that to business the us the or developed of -- year change what shared

likely in a based of were XX% a to I get kind trends. said October. drop But Nothing's current the before would into less we looking the changed repeat little not really I probably to what than said if XX% back a of on bogey drop-off we're we is other fact that what off, -- that

get cost a comparatively still if like or wages more we to would whether that and Now I October. We can risk in that. would drop-off back I think say have to insurance we back in things it's achievable. safe still a XX% year I revenue think XXXX, do be stuff and I little that, there's pressure probably anticipated see But rising, a than

repairs. But one the come whether a trailer us our little have some the of the could side trailer of a of little that of small -- cost XX% very on the things, business, a it's component, margin. things our a tires with That's the inflation trailer where out across that I that's of some us fixed concerned am and hitting bit bit in side, knock -- all little the other we more which been -- is but things still we on

if you follow-up incentive tailwind -- months line? my expectations have model we view a outlook maybe be out going well, if from help anything can as to those ago, of through some -- was said any changed? your laid about maybe you of a few could to walk us on And updated actually bottom an few That's is Todd you And inflation us the the Jim the really expense that understand as us that. how to comp from months ago, seeing you think

we're thoughts would February, million operating. Sure. plus closer I depreciation the Bascome, whereas million CapEx Back gave, in number just $X going that on disciplined a a of some probably $X there to Jim's environment be, the respect think, X, year-over-year. plus to echo $X side, to the other to I with to to gave the so million I'm in, I closer X I'm probably I in a end. we're bit more low little

million respect programs, of base $XX back of gave With a $XX total to a a Based February, I the those tailwinds from quarter, under to and million bear which million tailwinds. million $XX over wrapping to $XX probably on case assumption programs, in flattish. I'm tailwinds 'XX 'XX, compensation probably there of in to $XX best gets of first million variable you case guess

million SG&A the about $X.X on from equity compensation of was tune of XQ arrangements. forfeitures impacted 'XX, to favorably

be a slight increase down XQ So SG&A on I the that's why 'XX, year-over-year. we line had year-over-year. think, we'll

coming from question the the Chan Stifel. of have next line We Bruce

the for it's you is seems of industrial sense further me, it the a the behind on then be and recovering far consumer. as might -- like start maybe restock? the in first? anything as have breakdown any behind plan whether of excuse a restock, do of you out always here the better whether tease there further economy what activity in by just it's destock? been I of your And whether to doing or bit Jim, And side the than resilience economy side to little as more appreciate Is there there's vertical, industrial things

than more -- I one better. comparison comp would is a doing it of it's me, to -- year-over-year a is which

I van peak think of in there above the flatbed, was no question. peak way is the

and I years, side. by much a side more that wasn't industrial stability lot just economy. in drove consumer really X driven the the on or industrial it Consumer X think last the the there's really than

low of It it volume. So at things was look to -- was one we like positive only when of I it's X% positive more me saw machinery. the

that's van revenue I February a -- gangbusters. on in, to were per then load their not flatbed different. so where were XX% XX%. X ago, But year, the peaked peak looking probably from only is in Where but but years February where comparative want and last in it we peak was van XX% flatbed to peaks peaked the say, much So in of was at July,

So it's year-over-year comp. more of a

it, So industrial X.X really off business and the flatbed going drove just a lot was Van than stable dropping last the -- through the van the for years, economy. summarize than I to faster pandemic stuff. the would it's more

is really mean the we then How truck crunch. lending That's side? brokerage helpful. side, but perspective Great. credit on the carrier or potential I for with here could BCO Joe. on not happening you And quick If just of side, just the maybe just business your a that follow-up Okay. with affecting the your get what's rates, but on also

sure That follow I As it the relates new I'm question. people to buy buying, they'll not one, trucks.

exactly. Yes,

for in entry the potential the capacity as marketplace. far new as new equipment, new Just trucks,

of is pricing, truck of guys used and buy with it truck go $XXX,XXX, from elevated keeps really repairs, the that. partly to don't some the So -- guys stops get truck our generally -- they it the side, than -- the right? remarks, has prepared used impacts more down on us longer out $XXX,XXX trucks. wait anything Yes, my pricing it And because utilization new is because what in

is number. per last Our utilization was year. that's a BCO -- And was where week below load it per

on keep could it done, in don't used would relatively buying -- because get that of assets. of the still guys a -- not way repairs the I need a the lot our of to something compared side much as trucks they not they're because isn't But they're keeps have who's truck. as driving new while still little it pricing where impacts the historically. is price someone high us for But but right see really the new it truck now, them to the was road they So them it

next coming Schneeberger Oppenheimer. We have the of of the question line from Scott

guys, on Sorry, I was mute.

it on expect February of to speak, kind flatbed Bruce's guess, to you to it side. first and the that of want on looks Do Jim be You -- on April just the kind to particularly trend? stable. the Gattoni, very up responded to Just specifically March Could follow question the I stable? continue you

can with providing anything the to bill, The that I'm that's manufacturing curious, the trend, there from like you've stability? can you you been point anything reshoring renewables, field? hearing out is point that anything infrastructure that, been

minus stuff One haul whole for more a at bunch little of load January, that. got at was -- prior was in and haul March per mix of when load March. February and length you thing and plus we're the because February about you X% revenue on it's you've the there, X% from the flatbed flatbed. January, to look year and heavy unsided revenue in service looking component a compared XX% per in offering is minus tell what in flow that What I'll on volatile It

hard short-term your that low. to hands get it's So around month-to-month really

it, kind we're So trend when looking we speak in a longer-term at of that. about

there, But really like do anything roads when guys. We -- I or that. look markets it's big with at us, end not infrastructure like we're don't

seeing but does think tied So what the kind and side industrial dropping -- the a see more like you'll provides but costs to years. just last flatbed we're little and bit the just kicking flatbed stuff flatbed X with drives -- And And that, less what in, indirectly, in and if that seen gets would capacity up. as rates the van on it it's heavy what starts of the production up, machinery side. off I you on over on it infrastructure stability that market do we've going than just

side to drop-off. flatbed never -- was offset demand consumer would a growth going that position No. think say I in I I on go it's gangbusters? never the to the any Do

we're they and some if think that's a or or now. that I the -- and I flatbed like on ag some right typical stable pretty mining years we ago, we're I said the more are and equipment, do I of van bridges environment where necessarily some be stability don't think I comfortable the we but stuff. hauling I think X stuff. based than more the It's with side, from the seeing stability on demand do the like infrastructure, we'll yes,

on Got side over guess, it. and monthly I Maybe April on the van in some anything van? particularly that. commentary follow interesting I'll

would January, unusual. say, it Well, it's I stable kind last it more which February. January think I was in X%. year about where only to that on Typically, minus but off of happened Compared drop-off more, one, the the drops van side, is

X%, end it we -- normal of to got then it more to XX% made from XX% It So it's February, But typically dropped the kind drop-off drop-off. we of but the time from -- dropped than sequentially. a of sort sorry, that that. the for December January January off I'm -- to up drops by

Minus minus minus February XX% year-over-year X% I'm year-over-year numbers. quoting March. then XX% bad year-over-year, and

correct. -- saw you -- some improvement So and the but commentary is

that. Unusual The anticipated. we we up we January, normal March. February saw then higher was rather than what drop-off into was thought it in made for coming And

more side. month-to-month, look And it's more that there's actually do So side we there a van the makes little on slope that a -- sense was a side. lot at more little the than flatbed on flatbed the than bit

The have from Benchmark from Company. coming question the We Kuhn next Christopher line the of

sheet. an -- you balance have just I enviable

in buybacks? or what wondering the are the potential for there Are Just acquisitions rough environment. this plans cash

successful. yes, the Dollar invest in our to we So XXXX, them Agents Million in consolidated XX% right? make technology tools of generating you know revenue, XXX We've Chris, model, right? to more got prefer

of increased We still the year-end. You're absolutely of $XX 'XX buybacks, right. first $XX paid -- million XQ million cash dividends quarter versus and in despite

we'll think when value back aggressive. accretive, we're of we the there. last get year, baseball So Look jump in to opportunistic, at it's the card

a quick just And Okay. follow-up.

flow the you -- commentary flow the think $XXX before you've or suggested about still comfortable still million. the that? down comp XX% be with talked guidance, could around variable revenue I pretty and Are but You environment, cash the cash

Yes. million, cash. summer, that revised and We last we free million to I in Chris, $XXX put February then $XXX out, think,

First the we right, a million of about still our million that given guide quarter, did in there I'm $XX good XQ capital throughout or million $XXX working with down. I $XXX year, think included but is free If we step above. did and net was the move -- release, comfortable cash,

clarification. to on a want just touch I And

another I and van have clarify, want we to flatbed. question, re-clarify load Before revenue trends to for our just per

March, So minus minus X%, van, January year-over-year, February X% February, And was year-over-year, XX% XX% was and just plus minus was January XX%. in flatbed March to minus clarify. in was X%, minus

Felix line Boeschen We the Raymond have the last question James. of coming of from

in some of structural BCO about you bigger through pre-pandemic parts BCO you're around if levels? changed thinking I anything was how just just picture, comments And talk but could utilization I'm the hoping we I maintenance, about understand utilization. think year. versus the Jim, has curious utilization

Felix, do to It year-over-year. X% this had the in utilization or or utilization is a picture. Joe. so. quarter that really was pricing We've talked year demand volume think through kind have when is of, And we've broadly and down again, you tends for a decline the I declining -- both

lot is hesitancy just And of there I a there. think

spoke underestimated. stuff a There's Jim really equipment that the can't think to uncertainty. of lot earlier be I

get you're and down to home, you If running a for and to that's from be you're used the going truck out can't and miles part weeks, it's a going you're break on to right? road X X,XXX going and get daunting,

and it's think costs I there around capacity are a out equipment. of uncertainty the providers on the the are culmination that so then the and just And options that

I the those things, quite haven't think plus all hit declining trough.

the as kind direction I think turn, the will you'll all other the leading are those see things obviously other back piece. as move firm think And utilization to count of in and and in well. the move back those I utilization direction, start things truck up

anything question, don't anything there's think piece. structural, guess, there's other Felix. I was don't I think I the structural around your But utilization

be with they're things, hesitant to uncertainty, a certainty, just And just a to productive. of less more bit it's right? lack of little people think do kind I and being tend

you, for like questions. sir, turn the I time, closing back I no to remarks. further would show to this At over call

transportation as beyond few softened are conditions next closing, a forecast compared to truckload is economic ago, the driving very unpredictable. to Directionally, In term. difficult volume near volume much months expect above lower. future Demand load in significantly as it year levels pre-pandemic economy overall truck remains per we you. Thank the freight for don't has Truck the revenue levels. change freight well to

economic year-over-year was free $XXX flow the XXXX comparisons, million. to free the of continues variable Landstar's flow Landstar's significant cash exceed with challenging business fiscal cash XXXX to of in new environment, cost record Landstar, Regardless model expected levels generate company, for highs, performance. in reaching we cyclical financial always Landstar lows, with we achieving higher as XXXX. has higher expect a did historic of been like XXXX, resiliency a year growth

forward a I forward XX. achieving look our to Landstar economy turns. the higher scheduled XXXX conference reason repeat history second currently for Thank speaking won't and look you, quarter we good highs out, believe day. Have July and earnings no again to you to when on has itself call with freight

joining morning. this Thank you good time. Have lines conference the Please disconnect today. your at a call for