Landstar System to Release First Quarter Results on Tuesday, May 13, 2025

Rhea-AI Summary

Landstar System (NASDAQ: LSTR) has rescheduled its 2025 first quarter earnings release and conference call from April 29 to May 13, 2025, due to an ongoing investigation of a supply chain fraud. The fraud, discovered in the last week of Q1 2025, affects the company's international freight forwarding operations through one specific independent commission sales agency, not impacting core North American truckload services.

The expected adverse financial impact is estimated at up to $15 million in net income (approximately $0.43 per share after-tax), excluding legal fees and potential recoveries. Despite this, Q1 2025 performance shows total revenue of $1.153 billion, landing in the upper half of guidance. Earnings per share reached $0.95 before fraud impact, at the upper end of updated guidance. The company maintains a strong financial position with cash and short-term investments of approximately $473 million as of March 29, 2025.

Positive

• Revenue of $1.153 billion in Q1 2025, performing in upper half of guidance
• Strong cash position with $473 million in cash and short-term investments
• EPS of $0.95 (pre-fraud impact) at upper end of guidance

Negative

• Supply chain fraud discovered in international freight forwarding operations
• Expected adverse financial impact of up to $15 million ($0.43 per share)
• Delayed Q1 2025 earnings release and Form 10-Q filing due to fraud investigation

JACKSONVILLE, Fla., April 25, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) announced today that it has rescheduled its 2025 first quarter earnings release and conference call with analysts and investors for Tuesday, May 13, 2025. The earnings release and conference call were previously scheduled for Tuesday, April 29, 2025. The Company also currently anticipates filing today a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission, which will provide the Company with a five-calendar day extension to file its Form 10-Q for the 2025 first quarter no later than May 13, 2025. The Company expects to file its Quarterly Report on Form 10-Q for the 2025 first quarter no later than May 13, 2025, the expiration date of the extension period.

As previously disclosed in a Form 8-K filed on April 2, 2025, during the last week of Landstar’s 2025 first quarter, the Company identified a supply chain fraud that does not involve its core North American truckload services. The rescheduling of the Company’s 2025 first quarter earnings release and the anticipated delay in filing the Company’s Form 10-Q for the 2025 first quarter relate to the ongoing evaluation of certain accounting and internal control matters in connection with this previously referenced fraud matter. It should be noted that while investigation continues, this matter relates to the Company’s international freight forwarding operations, and the Company believes that this matter is limited to the operations of one specific independent commission sales agency. The adverse financial impact to Landstar as a result of the fraud, before taking into account the cost of legal and other professional fees or any potential insurance and other recoveries, is not expected to exceed $15 million of net income, or approximately $0.43 per share on an after-tax basis.

Landstar also announced the following 2025 first quarter highlights:

• Total revenue for the 2025 first quarter was $1.153 billion, in the upper half of the Company’s guidance range provided during its 2024 fourth quarter earnings release conference call and accompanying slide presentation, a copy of which was included as Exhibit 99.2 to the Company’s Form 8-K filed on January 29, 2025;
  
• Earnings per share, prior to giving effect to any potential adverse impact from the supply chain fraud matter referenced above, was $0.95, at the upper end of the Company’s updated guidance range provided in the Company’s Form 8-K filed on April 2, 2025; and
  
• The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $473 million as of March 29, 2025.

About Landstar:
Landstar System, Inc., is a technology-enabled, 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 providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 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.

Forward Looking Statements Disclaimer:
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: U.S. trade relationships; 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; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2024 fiscal year; decreased demand for transportation services; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 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.

Contact:
Jim Todd
Chief Financial Officer
904-398-9400

FAQ

What is the financial impact of the supply chain fraud on Landstar (LSTR) in Q1 2025?

The fraud's adverse financial impact is expected to be up to $15 million in net income, or approximately $0.43 per share after-tax, excluding legal fees and potential insurance recoveries.

How much revenue did Landstar (LSTR) generate in Q1 2025?

Landstar reported total revenue of $1.153 billion for Q1 2025, performing in the upper half of their guidance range.

What is Landstar's (LSTR) cash position as of March 2025?

Landstar maintained approximately $473 million in cash and short-term investments as of March 29, 2025.

Why did Landstar (LSTR) delay its Q1 2025 earnings release?

Landstar rescheduled its earnings release due to ongoing evaluation of accounting and internal control matters related to a discovered supply chain fraud in their international freight forwarding operations.

What was Landstar's (LSTR) earnings per share in Q1 2025 before fraud impact?

Landstar's earnings per share was $0.95 before accounting for the supply chain fraud impact, reaching the upper end of their updated guidance range.