Landstar Development Group Inc (OTCMKTS:LSDC) 4Q2014 revenue of $863 million came better than the company’s guidance of $820 million-$840 million. The diluted earnings per share came at $-0.86 compared to guidance range of $0.79 to $0.82. The company witnessed strong demand for its transportation service throughout 2014, which accelerated in December. As a result, 4Q diluted EPS and revenue exceeded upper end of the range of 4Q guidance. The operating income was $61.1 million in 4Q2014.
The financial performance
Landstar 4Q2014 revenue came at $863 million, up 25% from 4Q2013. The diluted earnings jumped 56% compared to 4Q2013. The increase in 4Q revenue was broad-based across various geographic regions, customers and industry segments. Landstar Development Group Inc (OTCMKTS:LSDC)’s top 100 clients accounted for almost 40% of total revenue. The revenue from these customers increased $45 million from the 4Q2013. With more than 25,000 bill-to-customers, Landstar account base is extremely diversified. The freight transportation in 2014 offered significant opportunities to expand the customer base and strengthen relationships with smaller clients.
Demand for truck transportation
The surge in demand for truck transportation services that commenced in December 2013 passed on to next year. On a QOQ basis, the number of loads hauled by truck during 1Q, 2Q, 3Q and 4Q of 2014 exceeded the same periods a year ago by 4%, 9%, 11% and 11%. Landstar Development Group Inc (OTCMKTS:LSDC) revenue from truck transportation in 4Q2014 grew 26% over 4Q2013.
Landstar revenue through flatbed equipment was 14% higher from 4Q2013. The number of loads hauled surged 9%. The revenue from van equipment surged 14% over 3Q2013. James B. Gattoni, the CEO and President said that the company is delighted to report strong revenue from various segment in 4Q. Landstar Development Group Inc (OTCMKTS:LSDC) sold supply-chain based firms it had in late December 2013. The sales of those companies enabled Landstar to get back to basics and focus on core business model of the company.