Landstar System, Inc. (NASDAQ:LSTR) Q2 2012 Mid Quarter Update Call May 29, 2012 2:00 PM ET
Henry H. Gerkens - Chairman of The Board, Chief Executive Officer, President, Member of Safety and Risk Committee, Member of Strategic Planning 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. Second Mid-quarter 2012 Conference Call. [Operator Instructions] Today's call is being recorded. Joining us today from Landstar, Henry Gerkens, Chairman, President and CEO. Please begin.
Henry H. Gerkens
Thanks, Terry. Good afternoon, and welcome to the Landstar 2012 Second Quarter Mid-quarter Update Conference Call. 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 the call is to provide a brief update on how management sees the current quarter shaping up as it relates to business levels and earnings projections. The call will be very brief and last only several minutes.
Before we start, 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.
During our first quarter 2012 earnings conference call, I stated that I anticipate 2012 second quarter earnings per diluted share to be in a range of $0.71 to $0.76 per diluted share. Landstar has now completed the first 8 weeks of the 2012 second quarter. Based on what we have seen so far, I remain very confident with that range.
Consolidated revenue for the first 8 weeks of the 2012 second quarter is basically in line with our internal revenue projections. And as anticipated, volume growth is contributing about or approximately 70% of a projected approximate 10% revenue increase over the 2011 second quarter.
From a revenue-per-load standpoint, average flatbed pricing remains very strong as capacity continues to be tight in that portion of our business.
The economy and operating environment is pretty much as forecasted and continues to move in a northerly direction albeit in a slow and sometimes choppy pace. I remain very confident as we move through the balance of the quarter and, for that matter, the balance of the year in our ability to increase our gross profit dollars.
Our pipeline of prospective new quality productive agents continues to remain strong and our capacity base is as strong as ever. Specifically, from a BCO capacity standpoint, the seasonal BCO decline from the 2011 year-end to the end of the 2012 first quarter of 46 BCOs, which was one of the lowest declines in any of the past 5 year first quarters, was more than offset with BCO net additions in the first 8 weeks of the 2012 second quarter.
Our refocused BCO recruiting efforts, emphasizing the benefits of being a Landstar BCO, continues to pay dividends. Our brokerage effort also remains extremely successful.
That is my brief update. And with that, I want to thank you for dialing in, and I look forward to talking to you again on our July 26 second quarter earnings conference call. Thanks.
Thank you for joining the conference call today. Have a good afternoon. Please disconnect your lines at this time.
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