UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 29, 2015

 
 
LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	021238	 	06-1313069	
(State or other jurisdiction	 	(Commission	 	(I.R.S. Employer	
of incorporation)	 	File Number)	 	Identification No.)	

13410 Sutton Park Drive South, Jacksonville, Florida	 	32224	
(Address of principal executive offices)	 	(Zip Code)	
(904) 398-9400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02	Results of Operations and Financial Condition	
On January 29, 2015, Landstar System, Inc. issued a press release announcing results for the fourth quarter of fiscal 2014. A copy of the press release is attached hereto as Exhibit 99.1.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
 
Item 5.02	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.	
(d) On January 29, 2015, the Board of Directors (the “Board”) of Landstar System, Inc. (the “Company”) announced the appointment of James B. Gattoni as a Class I Director, effective immediately. As a Class I Director, the term of Mr. Gattoni will expire at the Company’s 2015 annual meeting of stockholders. The Board has also appointed Mr. Gattoni to the Safety and Risk Committee and the Strategic Planning Committee, in each case effective January 29, 2015.
 
Item 9.01	Financial Statements and Exhibits	
Exhibits

 	 	
    99.1	  	News Release dated January 29, 2015 of Landstar System, Inc.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	 	 	 	 	LANDSTAR SYSTEM, INC.	
 	 	 	 	
Date: January 29, 2015	 	 	 	By:	 	/s/ L. Kevin Stout	
 	 	 	 	 	 	Name: L. Kevin Stout	
 	 	 	 	 	 	Title: Vice President, Chief Financial Officer and Assistant Secretary	

Exhibit 99.1

 
 	 	 	
For Immediate Release	  	Contact: Kevin Stout	
 	  	Landstar System, Inc.	
 	  	www.landstar.com	
January 29, 2015	  	904-398-9400	
LANDSTAR SYSTEM REPORTS RECORD QUARTERLY REVENUE OF
$863 MILLION AND RECORD QUARTERLY DILUTED EARNINGS PER SHARE
FROM CONTINUING OPERATIONS OF $0.86
Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported record quarterly revenue of $863 million in the 2014 fourth quarter, the highest quarterly revenue of any quarter in Landstar history. Landstar also reported diluted earnings per share of $0.86 in the 2014 fourth quarter on net income from continuing operations of $38.5 million. This is the highest quarterly diluted earnings per share from continuing operations in Landstar history. With respect to the Company’s results from continuing operations for the 2013 fourth quarter, Landstar reported net income of $25.2 million, or $0.55 per diluted share, on revenue of $692 million. Additionally, the 2013 fourth quarter included $0.75 of diluted earnings per share from income from discontinued operations attributable to the sale of the Landstar Supply Chain Solutions companies. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $124.7 million in the 2014 fourth quarter compared to $102.7 million of gross profit in the 2013 fourth quarter. Operating margin, representing operating income divided by gross profit, was 49.1 percent in the 2014 fourth quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2014 fourth quarter was $811.2 million, or 94 percent of revenue, compared to $643.6 million, or 93 percent of revenue, in the 2013 fourth quarter. Truckload transportation revenue hauled via van equipment in the 2014 fourth quarter was $499.7 million compared to $391.4 million in the 2013 fourth quarter. Truckload revenue hauled via unsided/platform equipment in the 2014 fourth

LANDSTAR SYSTEM/ 2
 
quarter was $289.6 million compared to $233.4 million in the 2013 fourth quarter. Revenue hauled by rail, air and ocean cargo carriers was $41.0 million, or 5 percent of revenue, in the 2014 fourth quarter compared to $39.0 million, or 6 percent of revenue, in the 2013 fourth quarter.
Trailing twelve-month return on average shareholders’ equity was 30 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 24 percent. Landstar purchased approximately 940,000 shares of its common stock during 2014 at an aggregate cost of $56.4 million. Currently, there are approximately 1,828,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program.
As previously announced on December 4, 2014, the Company’s Board of Directors declared a special dividend of $1.00 per share payable on January 26, 2015, to stockholders of record as of the close of business on January 12, 2015. In addition, Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.07 per share payable on March 13, 2015, to stockholders of record as of the close of business on February 16, 2015. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
Landstar also announced that effective January 29, 2015, Landstar President and CEO Jim Gattoni has joined the Board of Directors of Landstar System, Inc.
“Landstar’s 2014 fourth quarter results were record setting,” said Gattoni. “Revenue and diluted earnings per share for the 2014 fourth quarter were quarterly records for continuing operations. Demand for Landstar’s truck transportation services in the 2014 fourth quarter continued to be extremely strong, as the number of loads hauled via truck increased 11 percent over the 2013 fourth quarter. Revenue per load hauled via truck also remained very strong and increased 14 percent over the 2013 fourth quarter. In fact, Landstar’s average revenue per load hauled via truck in the 2014 fourth quarter set a new record and was up four percent over the record set in the Company’s 2014 third quarter. Landstar experienced very strong revenue growth over the 2013 fourth quarter with respect to both loads hauled via van equipment and loads hauled via

LANDSTAR SYSTEM/ 3
 
unsided/platform equipment. On a quarter-over-prior-year-quarter basis, revenue hauled via van equipment increased 28 percent and revenue hauled via unsided/platform equipment increased 24 percent. Despite a significant provision for incentive compensation, operating margin was an impressive 49.1 percent in the 2014 fourth quarter and was the second highest fourth quarter operating margin in Landstar’s history. And finally, diluted earnings per share from continuing operations in the 2014 fourth quarter increased an outstanding 56 percent over the 2013 fourth quarter. 2014 was truly an exceptional year for Landstar as the Company surpassed $3 billion in revenue for the first time in its history. In addition to revenue, annual records were set for many other financial metrics including gross profit, operating income, net income and diluted earnings per share from continuing operations.”
Gattoni continued, “The strength in both the number of loads hauled via truck and truck revenue per load experienced in the 2014 fourth quarter has so far continued through the first several weeks of 2015. Assuming continued strength in both load volume and revenue per load from truck transportation services throughout the remainder of the 2015 first quarter, I anticipate revenue for the 2015 first quarter to be in a range of $750 million to $800 million and, assuming that range of estimated revenue, I would anticipate 2015 first quarter diluted earnings per share to be in a range of $0.71 to $0.76 per share compared to $0.61 per diluted share in the 2014 first quarter.”
PLEASE NOTE: As of the first quarter of 2015, the Company has revised the format of its financial statement supplemental information presentation to include revenue by trailer type. Included with this earnings release are supplemental information presentations in both the historical format and the new format. The Company intends to use only the new supplemental information presentation format on a going forward basis. Management believes this change in reporting supplemental information will allow investors to better understand underlying trends in the Company’s results. This change in the reporting of supplemental information has no impact on reporting with respect to the Company’s consolidated balance sheets, income statements, cash flows or changes in shareholders’ equity for any periods.

LANDSTAR SYSTEM/ 4
 
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2:00 pm ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Fourth Quarter 2014 Earnings Release Conference Call.”
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; substantial industry competition; disruptions or failures in the Company’s computer systems; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; catastrophic loss of a Company facility; intellectual property; unclaimed property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2013 fiscal year, described in Item 1A Risk Factors, and in 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 the Company undertakes no obligation to publicly update or revise any forward-looking statements.
About Landstar:
Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity owners and employees. All Landstar transportation services companies are certified to ISO 9001:2008 quality management system standards and RC14001:2013

LANDSTAR SYSTEM/ 5
 
environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market ®  under the symbol LSTR.
(Tables follow)

LANDSTAR SYSTEM/ 6
 
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)

 	  	Fiscal Year Ended	 	  	Fiscal Quarter Ended	 	
 	  	December 27,
2014	 	  	December 28,
2013	 	  	December 27,
2014	 	  	December 28,
2013	 	
 	 	 	 	 	
Revenue	  	$	3,184,790	  	  	$	2,664,780	  	  	$	862,830	  	  	$	691,975	  	
Investment income	  	 	1,381	  	  	 	1,475	  	  	 	354	  	  	 	364	  	
 	 	 	 	 	
Costs and expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Purchased transportation	  	 	2,461,143	  	  	 	2,046,927	  	  	 	668,583	  	  	 	534,250	  	
Commissions to agents	  	 	250,780	  	  	 	211,355	  	  	 	69,584	  	  	 	54,978	  	
Other operating costs, net of gains on asset dispositions	  	 	25,771	  	  	 	21,568	  	  	 	6,421	  	  	 	6,172	  	
Insurance and claims	  	 	46,280	  	  	 	50,438	  	  	 	8,548	  	  	 	13,531	  	
Selling, general and administrative	  	 	150,250	  	  	 	131,710	  	  	 	41,683	  	  	 	36,743	  	
Depreciation and amortization	  	 	27,575	  	  	 	27,667	  	  	 	7,156	  	  	 	6,924	  	

Total costs and expenses	 	 	2,961,799	  	 	 	2,489,665	  	 	 	801,975	  	 	 	652,598	  	

Operating income	 	 	224,372	  	 	 	176,590	  	 	 	61,209	  	 	 	39,741	  	
Interest and debt expense	 	 	3,177	  	 	 	3,211	  	 	 	917	  	 	 	844	  	

Income from continuing operations before income taxes	 	 	221,195	  	 	 	173,379	  	 	 	60,292	  	 	 	38,897	  	
Income taxes	 	 	82,386	  	 	 	64,457	  	 	 	21,801	  	 	 	13,721	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income from continuing operations	 	 	138,809	  	 	 	108,922	  	 	 	38,491	  	 	 	25,176	  	
 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations, net of income taxes	 	 	—  	  	 	 	4,058	  	 	 	—  	  	 	 	1,352	  	
Gain on sale of discontinued operations, net of income taxes	 	 	—  	  	 	 	33,029	  	 	 	—  	  	 	 	33,029	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income from discontinued operations, net of income taxes	 	 	—  	  	 	 	37,087	  	 	 	—  	  	 	 	34,381	  	

Net income	 	$	138,809	  	 	$	146,009	  	 	$	38,491	  	 	$	59,557	  	

Earnings per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	$	3.09	  	 	$	2.37	  	 	$	0.86	  	 	$	0.55	  	
Income from discontinued operations	 	 	—  	  	 	 	0.81	  	 	 	—  	  	 	 	0.75	  	
Earnings per common share	 	 	3.09	  	 	 	3.17	  	 	 	0.86	  	 	 	1.30	  	
 	 	 	 	 	
Diluted earnings per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	$	3.07	  	 	$	2.36	  	 	$	0.86	  	 	$	0.55	  	
Income from discontinued operations	 	 	—  	  	 	 	0.80	  	 	 	—  	  	 	 	0.75	  	
Diluted earnings per share	 	 	3.07	  	 	 	3.16	  	 	 	0.86	  	 	 	1.30	  	
 	 	 	 	 	
Average number of shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per common share	 	 	44,956,000	  	 	 	46,039,000	  	 	 	44,770,000	  	 	 	45,689,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	 	 	45,169,000	  	 	 	46,210,000	  	 	 	45,002,000	  	 	 	45,869,000	  	

Dividends per common share	 	$	1.26	  	 	$	0.35	  	 	$	1.07	  	 	$	0.35	  	

LANDSTAR SYSTEM/ 7
 
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

 	  	December 27,
2014	 	 	December 28,
2013	 	
ASSETS	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	163,944	  	 	$	180,302	  	
Short-term investments	  	 	37,007	  	 	 	34,939	  	
Trade accounts receivable, less allowance of $4,338 and $3,773	  	 	492,642	  	 	 	378,732	  	
Other receivables, including advances to independent contractors, less allowance of $4,189 and $4,253	  	 	15,132	  	 	 	73,903	  	
Deferred income taxes and other current assets	  	 	23,603	  	 	 	14,592	  	
 	  	 	 	 	 	 	 	 	
Total current assets	 	 	732,328	  	 	 	682,468	  	

Operating property, less accumulated depreciation and amortization of $160,681 and $157,985	 	 	202,203	  	 	 	177,329	  	
Goodwill	 	 	31,134	  	 	 	31,134	  	
Other assets	 	 	78,547	  	 	 	79,765	  	
 	  	 	 	 	 	 	 	 	
Total assets	 	$	1,044,212	  	 	$	970,696	  	

LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Cash overdraft	 	$	34,629	  	 	$	27,780	  	
Accounts payable	 	 	220,077	  	 	 	157,796	  	
Current maturities of long-term debt	 	 	35,064	  	 	 	27,567	  	
Insurance claims	 	 	24,233	  	 	 	92,280	  	
Dividends payable	 	 	44,794	  	 	 	15,921	  	
Other current liabilities	 	 	51,654	  	 	 	54,316	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	 	 	410,451	  	 	 	375,660	  	

Long-term debt, excluding current maturities	 	 	76,257	  	 	 	73,938	  	
Insurance claims	 	 	21,769	  	 	 	24,171	  	
Deferred income taxes and other non-current liabilities	 	 	47,474	  	 	 	42,446	  	
 	 	 	
Shareholders’ equity:	 	 	 	 	 	 	 	 	
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 67,268,817 and 67,017,858 shares	 	 	673	  	 	 	670	  	
Additional paid-in capital	 	 	189,012	  	 	 	179,807	  	
Retained earnings	 	 	1,255,374	  	 	 	1,173,044	  	
Cost of 22,474,331 and 21,528,693 shares of common stock in treasury	 	 	(955,613	) 	 	 	(899,028	) 	
Accumulated other comprehensive loss	 	 	(1,185	) 	 	 	(12	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	 	 	488,261	  	 	 	454,481	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	 	$	1,044,212	  	 	$	970,696	  	

LANDSTAR SYSTEM/ 8
 
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)

 	  	Fiscal Year Ended	 	 	Fiscal Quarter Ended	 	
 	  	December 27,
2014	 	 	December 28,
2013	 	 	December 27,
2014	 	 	December 28,
2013	 	
Revenue generated through (in thousands):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	1,814,195	  	 	$	1,464,558	  	 	$	499,651	  	 	$	391,424	  	
Unsided/platform equipment	  	 	1,093,999	  	 	 	932,176	  	 	 	289,627	  	 	 	233,366	  	
Less-than-truckload	  	 	80,384	  	 	 	71,769	  	 	 	21,969	  	 	 	18,794	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	2,988,578	  	 	 	2,468,503	  	 	 	811,247	  	 	 	643,584	  	
Rail intermodal	  	 	81,220	  	 	 	73,820	  	 	 	22,263	  	 	 	18,370	  	
Ocean and air cargo carriers	  	 	74,952	  	 	 	85,681	  	 	 	18,784	  	 	 	20,599	  	
Other (1)	  	 	40,040	  	 	 	36,776	  	 	 	10,536	  	 	 	9,422	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	3,184,790	  	 	$	2,664,780	  	 	$	862,830	  	 	$	691,975	  	

Number of loads:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	 	1,038,517	  	 	 	935,530	  	 	 	270,875	  	 	 	241,837	  	
Unsided/platform equipment	  	 	444,852	  	 	 	418,982	  	 	 	112,300	  	 	 	103,484	  	
Less-than-truckload	  	 	96,541	  	 	 	101,498	  	 	 	26,835	  	 	 	24,249	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	1,579,910	  	 	 	1,456,010	  	 	 	410,010	  	 	 	369,570	  	
Rail intermodal	  	 	31,640	  	 	 	29,450	  	 	 	8,800	  	 	 	7,350	  	
Ocean and air cargo carriers	  	 	16,260	  	 	 	16,660	  	 	 	4,150	  	 	 	4,290	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	1,627,810	  	 	 	1,502,120	  	 	 	422,960	  	 	 	381,210	  	

Revenue per load:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	1,747	  	 	$	1,565	  	 	$	1,845	  	 	$	1,619	  	
Unsided/platform equipment	  	 	2,459	  	 	 	2,225	  	 	 	2,579	  	 	 	2,255	  	
Less-than-truckload	  	 	833	  	 	 	707	  	 	 	819	  	 	 	775	  	
Total truck transportation	  	 	1,892	  	 	 	1,695	  	 	 	1,979	  	 	 	1,741	  	
Rail intermodal	  	 	2,567	  	 	 	2,507	  	 	 	2,530	  	 	 	2,499	  	
Ocean and air cargo carriers	  	 	4,610	  	 	 	5,143	  	 	 	4,526	  	 	 	4,802	  	
 	 	 	 	 	
Revenue by capacity type (as a % of total revenue);	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck capacity providers	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BCO independent contractors (2)	  	 	48	% 	 	 	50	% 	 	 	45	% 	 	 	49	% 	
Truck brokerage carriers	  	 	46	% 	 	 	43	% 	 	 	49	% 	 	 	44	% 	
Rail intermodal	  	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	
Ocean and air cargo carriers	  	 	2	% 	 	 	3	% 	 	 	2	% 	 	 	3	% 	
Other	  	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	
 	 	 	 	 	
 	  	 	 	 	 	 	 	December 27,
2014	 	 	December 28,
2013	 	
Truck Capacity Providers	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (2) (3)	  	 	 	 	 	 	 	 	 	 	8,372	  	 	 	7,927	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck Brokerage Carriers:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Approved and active (4)	  	 	 	 	 	 	 	 	 	 	26,222	  	 	 	21,183	  	
Approved	  	 	 	 	 	 	 	 	 	 	12,135	  	 	 	10,933	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	38,357	  	 	 	32,116	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total available truck capacity providers	  	 	 	 	 	 	 	 	 	 	46,729	  	 	 	40,043	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1)	Includes primarily premium revenue generated by the insurance segment.	
 
(2)	Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.	
 
(3)	Trucks provided by Business Capacity Owners were 8,932 and 8,432 at December 27, 2014 and December 28, 2013, respectively.	
 
(4)	Active refers to Truck Brokerage Carriers who have moved at least one load in the past 180 days.	

LANDSTAR SYSTEM/ 9
Landstar System, Inc. and Subsidiary
Supplemental Information by Capacity Providers
(Unaudited)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Fiscal Year Ended	 	  	Fiscal Quarter Ended	 	
 	  	December 27,
2014	 	  	December 28,
2013	 	  	December 27,
2014	 	  	December 28,
2013	 	
Revenue generated through (in thousands):	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Business Capacity Owners (1)	  	$	1,514,254	  	  	$	1,327,458	  	  	$	388,041	  	  	$	339,544	  	
Truck Brokerage Carriers	  	 	1,474,324	  	  	 	1,141,045	  	  	 	423,206	  	  	 	304,040	  	
Rail intermodal	  	 	81,220	  	  	 	73,820	  	  	 	22,263	  	  	 	18,370	  	
Ocean and air cargo carriers	  	 	74,952	  	  	 	85,681	  	  	 	18,784	  	  	 	20,599	  	
Other (2)	  	 	40,040	  	  	 	36,776	  	  	 	10,536	  	  	 	9,422	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	$	3,184,790	  	 	$	2,664,780	  	 	$	862,830	  	 	$	691,975	  	

Number of loads:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (1)	 	 	818,480	  	 	 	790,690	  	 	 	203,680	  	 	 	199,490	  	
Truck Brokerage Carriers	 	 	761,430	  	 	 	665,320	  	 	 	206,330	  	 	 	170,080	  	
Rail intermodal	 	 	31,640	  	 	 	29,450	  	 	 	8,800	  	 	 	7,350	  	
Ocean and air cargo carriers	 	 	16,260	  	 	 	16,660	  	 	 	4,150	  	 	 	4,290	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	1,627,810	  	 	 	1,502,120	  	 	 	422,960	  	 	 	381,210	  	

Revenue per load:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Capacity Owners (1)	 	$	1,850	  	 	$	1,679	  	 	$	1,905	  	 	$	1,702	  	
Truck Brokerage Carriers	 	 	1,936	  	 	 	1,715	  	 	 	2,051	  	 	 	1,788	  	
Rail intermodal	 	 	2,567	  	 	 	2,507	  	 	 	2,530	  	 	 	2,499	  	
Ocean and air cargo carriers	 	 	4,610	  	 	 	5,143	  	 	 	4,526	  	 	 	4,802	  	
 	 	 	 	 	
 	  	 	 	  	 	 	  	December 27,
2014	 	  	December 28,
2013	 	
Truck Capacity Providers	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Business Capacity Owners (1) (3)	  	 	 	 	  	 	 	 	  	 	8,372	  	  	 	7,927	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Truck Brokerage Carriers:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Approved and active (4)	 	 	 	 	 	 	 	 	 	 	26,222	  	 	 	21,183	  	
Approved	 	 	 	 	 	 	 	 	 	 	12,135	  	 	 	10,933	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	38,357	  	 	 	32,116	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total available truck capacity providers	 	 	 	 	 	 	 	 	 	 	46,729	  	 	 	40,043	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
(1)	Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.	
(2)	Includes primarily premium revenue generated by the insurance segment.	
(3)	Trucks provided by Business Capacity Owners were 8,932 and 8,432 at December 27, 2014 and December 28, 2013, respectively.	
(4)	Active refers to Truck Brokerage Carriers who have moved at least one load in the past 180 days.