Landstar Announces Increase to Stock Purchase Program and Special Dividend

Rhea-AI Summary

Landstar System (NASDAQ-LSTR) announced an increase in its stock purchase program to 3 million shares, with a new authorization of 1,912,824 shares. Additionally, a special one-time cash dividend of $2.00 per share has been declared, payable on January 21, 2022, to shareholders of record as of January 7, 2022. The company's strong balance sheet, with $267.2 million in cash and short-term investments as of September 25, 2021, supports this decision. Landstar plans to utilize free cash flow for stock purchases.

Positive

• Increase in share buyback authorization to 3 million shares.
• Declaration of a special cash dividend of $2.00 per share.
• Strong balance sheet with $267.2 million in cash and short-term investments.

Negative

• None.

JACKSONVILLE, Fla., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ-LSTR), a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services, announced that on December 7, 2021, its Board of Directors increased the number of shares of its common stock that the Company is authorized to purchase under its stock purchase program to 3,000,000. The increase to the share purchase program reflects a new authorization to purchase 1,912,824 shares of Landstar System common stock in addition to the 1,087,176 shares remaining under the prior purchase authorization.

The Company also announced that its Board has declared a special one-time cash dividend in the amount of $2.00 per share, payable on January 21, 2022, to stockholders of record as of the close of business on January 7, 2022.

“Landstar’s strong balance sheet and free cash flow generation enables us to continue to return value to our stockholders through a significant increase to our stock purchase program coupled with a special dividend.” said Landstar President and Chief Executive Officer Jim Gattoni. “As previously reported, as of September 25, 2021, the Company had $267.2 million in cash and short-term investments. The Company intends to continue to use its available free cash flow to purchase its stock under its stock purchase program."

About Landstar:
Landstar System, Inc. is a worldwide, 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: the impact of the coronavirus (COVID-19) pandemic; 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; cyber and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; 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 2020 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.

FAQ

What is the dividend amount declared by Landstar System?

Landstar System declared a special one-time cash dividend of $2.00 per share.

When is the dividend payable to shareholders?

The dividend is payable on January 21, 2022, to shareholders of record as of January 7, 2022.

What is the total number of shares authorized for purchase under Landstar's stock purchase program?

The total number of shares authorized for purchase is 3 million.

What was the cash reserve reported by Landstar System as of September 25, 2021?

Landstar System reported $267.2 million in cash and short-term investments.

What does the increase in stock purchase program reflect?

The increase reflects a new authorization to purchase 1,912,824 additional shares.