Earnings Call Excerpt
Landstar System, Inc. (LSTR)
F4Q07 Mid-Quarter Update Call
December 3, 2007 2:00 pm ET
Executives
Henry Gerkens - President and CEO
Presentation
Operator
Good afternoon, and welcome to Landstar System Incorporated’s Fourth Quarter Mid-Quarter Update Conference Call. All lines will be in a listen-only mode. Today's call is being recorded. If you have any objections, you may disconnect at this time.
Now, I'd like to turn the call over to Mr. Henry Gerkens. Sir, you may begin.
Henry Gerkens
Thanks, Josh, and good afternoon, and welcome to the Landstar 2007 fourth 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 in earnings projections. The call will last about five 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 10K for the 2006 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.
Let me begin by talking about our revenue levels. I stated in our 2007 third quarter update call, that I saw no change in the near-term freight environment, and I did not anticipate a pick-up for any incremental seasonal demand, nor did I anticipate any drop-off from current demand levels in the 2007 fourth quarter.
I also stated that I expected additional revenue contributions in the 2007 fourth quarter--from new agent locations and from increased account penetration--would offset weakness in the accounts that have been weak all year long.
As such, I anticipated revenue in the 2007 fourth quarter to increase in a low to mid single-digit range over the 2006 fourth quarter, excluding FAA-related revenue. Revenue generated under the FAA contract in the fourth quarter of 2006 was $14.7 million. In the 2007 fourth quarter to-date, revenue generated under the FAA contract was $1.8 million.
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