JACKSONVILLE – Landstar System, Inc. (NASDAQ: LSTR) yesterday reported 2011 record second quarter diluted earnings per share of 62 cents per diluted share, from net income of $29.6 million, compared to net income of $24.4 million, or 49 cents per diluted share, for the 2010 second quarter. Operating margin was 43.6 percent in the 2011 second quarter compared to 38.2 percent in the 2010 second quarter.
Revenue for the 2011 second quarter was $675.6 million compared to $641.7 million in the 2010 second quarter.
Its directors declared a quarterly dividend of $0.055 per share.
“This represents a 10 percent increase in the company’s quarterly dividend,” a company spokesman said.
The dividend is payable on August 26 to stockholders of record at the close of business on August 8.
The spokesman said the directors intend to continue to pay a quarterly dividend. During the 2011 second quarter, Landstar purchased 196,693 shares of its common stock at a total cost of $9.3 million.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2011 second quarter was $621.5 million, or 92 percent of revenue, compared to $592.0 million, or 92 percent of revenue, in the 2010 second quarter.
In the 2011 and 2010 second quarters, the company invoiced customers $78.7 million and $53.1 million, respectively, of fuel surcharges that were passed 100 percent to BCOs and excluded from revenue. Included in revenue hauled by third-party truck capacity providers in the 2011 and 2010 second quarters were $25.9 million and $23.1 million, respectively, of fuel surcharges invoiced to customers on revenue hauled by third-party truck brokerage carriers.
Also included in revenue hauled by third-party truck capacity providers was revenue generated under the company’s less-than-truckload substitute line haul service offering of $18.8 million and $70.5 million in the 2011 and 2010 second quarters, respectively. Revenue hauled by rail, air and ocean cargo carriers was $39.9 million, or 6 percent of revenue, in the 2011 second quarter compared to $35.0 million, or 5 percent of revenue, in the 2010 second quarter.
Transportation management fee revenue generated by the supply chain solutions companies was $5.6 million and $4.9 million in the 2011 and 2010 second quarters, respectively.
Trailing 12-month return on average shareholder’s equity was 35 percent and trailing 12-month return on invested capital, net income divided by the sum of average equity plus average debt, was 25 percent.