Q4 2020 Landstar System Inc Earnings Call

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Good morning, and welcome to Landstar system Incorporated's year end 'twenty 'twenty earnings release conference call all lines will be in a listen only mode until the formal question and answer session. Today's conference call is being recorded if you have any objections you may disconnect at this time.

Joining us today from Landstar are Jim good Tony President and CEO, Rob Brasher, Vice President and Chief Commercial Officer, Joe Beacom, Vice President and Chief Safety and operations Officer, now I would like to turn the call over to Mr. Jim Good Tony Sir you may begin.

Thank you Mickey.

Good morning, and welcome to last year's 2024th quarter Earnings Conference call before we begin let me read the following statement.

Moving to Safe Harbor statement under the private Securities Litigation Reform Act of 1095 statements made during this conference call are not based on historical facts are forward looking statements.

During this conference call. We may make statements that contain forward looking information that relates to Landstar <unk> business objectives plans strategies and expectations.

Such information is by nature subject to uncertainties and risks, including but not limited to the operational financial and legal risks detailed landstar is form 10-K for the 2019 fiscal year described in 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 information that are left are undertakes no obligation to publicly update or revise any forward looking information.

I believe it is safe to say 2020 was a year like no other the economic and social disruption caused by the COVID-19 pandemic had unprecedented impacts on many sectors for the U S economy consumer spending on travel and entertainment along with other service related expenditures shifted to spending our goods while U S manufacturing.

<unk> impacted by the pandemic and still has not fully recovered.

To conclude this roller coaster for year Landstar achieved numerous all time quarterly financial records into 2024th quarter. This remarkable turnaround from the adverse financial impact that COVID-19 had on our 2022nd quarter financial results was mostly due to significant consumer demand driving our van truckload business 2000.

<unk> fourth quarter performance was also favorably impacted by an improvement in U S manufacturing compared to the 2023rd quarter.

In fact, the fourth quarter was the only quarter of 2020, where revenue from transportation services hauled via onsite with platform equipment exceeded the corresponding prior year quarter.

At Landstar the swings in financial performance caused by the pandemic were more dramatic than during any other time in the company's history.

2022nd quarter gross profit decreased from the 2021st quarter by almost 21% due to the sudden adverse impact COVID-19 had on the U S economy and actions taken by Landstar to provide additional financial support to the company's network of agents from BCS.

This was the first time in the company's history that gross profit decreased sequentially from the seasonally softer first quarter to the second quarter.

Our second quarter performance was followed by substantiating sequential quarterly growth growth in gross profit, which increased 42% from the 2022nd quarter to the third quarter and 13% from the third quarter for the fourth quarter.

This gross profit growth was led by significant sequential increases beginning in June and month to month truck revenue per load and above normal month to month increases in the number of loads hauled via truck.

The sequential increases in revenue per load and the number of loads hauled via truck began in June and continued through physical year and drove a record quarterly financial performance into 2024th quarter.

Also as described and left our 2024th quarter earnings press release that we put out yesterday, the sequential trends drove our fourth.