Landstar System, Inc. (NASDAQ:LSTR)
March 01, 2012 2:00 pm ET
Henry H. Gerkens - Chairman of the Board, Chief Executive Officer, President, Member of Strategic Planning Committee, Member of Safety & Risk Committee, Chief Executive Officer of Landstar System Holdings Inc, President of Landstar System Holdings Inc and Director of Landstar System Holdings Inc
Good afternoon, and welcome to Landstar System, Inc.'s First Mid-Quarter 2012 Conference Call. [Operator Instructions] Today's call is being recorded. [Operator Instructions] Joining us today from Landstar is Henry Gerkens, Chairman, President and CEO.
Now, I would like to turn the call over to Mr. Henry Gerkens. Sir, you may begin.
Henry H. Gerkens
Thanks, Terry. Good afternoon, and welcome to the Landstar 2012 first quarter mid-quarter update conference call.
Before we start this mid-quarter update, let me read the following statement.
The following is a Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. Statements made during this conference call that are not based on historical facts are forward-looking statements.
During this conference call, I may make certain statements containing forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies and expectations. Such statements are, by nature, subject to uncertainties and risks including, but not limited to, the operational, financial and legal risks detailed in Landstar's Form 10-K for the 2011 fiscal year described in the section Risk Factors and other SEC filings from time-to-time.
These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.
As a reminder, let me review how our mid-quarter update call works. There is no question-and-answer period during this call. The purpose of this call is to provide a brief update on the 2012 first quarter. The call will last less than 5 minutes.
To repeat what I always state during a first quarter mid-quarter update call, it is important to understand the relationship of the first quarter of any year to the rest of the year.
The first quarter of any year is typically Landstar's slowest quarter and the first 2 months are typically the slowest within the first quarter. As such, operating margin, operating income and diluted earnings per share are typically lower in the first quarter of any given year compared to each of the remaining 3 quarters.
During our 2011 fourth quarter and year-end conference call, I stated that I anticipated revenue for the 2012 first quarter would increase over revenue generated in the 2011 first quarter in a low to mid-teen range, and that I estimated that diluted earnings per share in the 2012 first quarter would be in a range of $0.51 to $0.56 per diluted share, which represents an increase of approximately 19% to 30% over the -- over the reported 2011 first quarter diluted earnings per share amount.
I am pleased to state that with the first 2 months of the 2012 first quarter now complete, we are very much on track to achieve those forecasts, and as such, I continue to be very comfortable with those estimates.
Overall demand continues to remain relatively strong and in line with our expectations.
Pricing, as measured on a revenue-per-load basis, also remain pretty much consistent with our forecast.
Truck capacity remains relatively tight. Landstar begins the 2012 March period with more available capacity than it had at the beginning of the 2011 March period. Landstar's ability to attract and retain capacity in this environment is a major plus as customers continue to be concerned over capacity availability in 2012.
Our ability to access truck capacity, in addition to the wide variety of transportation services Landstar has to offer, including its freight management services, bodes well for Landstar for the balance of 2012 and beyond.
Landstar's goal is to continue to take market share through increased account penetration and adding new quality, productive agents and customers.
As it relates to the 2012 first quarter, and as I said before, historically, March is the strongest month of any first quarter and how March goes ultimately determines how the quarter ends up. This year will be no different and we are anticipating a strong March month.
Thank you for your time, and I look forward to talking to you again on our April 26, 2012, first quarter earnings conference call. Have a great afternoon. Thanks.
Thank you for joining the conference call today. Have a good afternoon. Please disconnect your lines at this time.
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