Landstar System, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 30, 2017. For the quarter, the company reported revenue of $1,051,592,000 against $892,829,000 a year ago. Operating income was $70,049,000 against $63,765,000 a year ago. Income before income taxes was $69,442,000 against $62,696,000 a year ago. Net income was $64,683,000 against $39,574,000 a year ago. Net income attributable to company and subsidiary was $64,752,000 against $39,574,000 a year ago. Diluted earnings per share attributable to company and subsidiary were $1.54 against $0.94 per share a year ago.

For the year, the company reported revenue of $3,646,364,000 against $3,167,634,000 a year ago. Operating income was $243,968,000 against $223,251,000 a year ago. Income before income taxes was $240,802,000 against $219,457,000 a year ago. Net income was $176,996,000 against $137,350,000 a year ago. Net income attributable to company and subsidiary was $177,088,000 against $137,350,000 a year ago. Diluted earnings per share attributable to company and subsidiary were $4.21 against $3.25 per share a year ago. Cash flow from operations was $138,963,000 against $190,242,000 a year ago. Capital expenditures were $24,046,000 against $22,645,000 a year ago. Cash capital expenditures were $15.6 million.

For the first quarter, the company expects revenue for the 2018 first quarter to be in a range of $925 million to $975 million. Assuming that range of estimated revenue, the company would anticipate 2018 first quarter diluted earnings per share to be in a range of $1.22 to $1.27 per share. The estimated range of diluted earnings per share assumes insurance and claims costs at 3.5% of BCO revenue, representing the historical annual average of insurance and claims costs to BCO revenue over the previous 5 years, and an annual effective income tax rate of approximately 24.5%, prior to any discrete items that may occur in 2018. The company also expects gross profit margin to be in a range of 14.7% to 14.9% in the 2018 first quarter compared to 15.6% in the 2017 first quarter, a decrease in gross profit margin as compared to the 2017 first quarter is mostly due to a greater percentage of revenue hauled via truck broker carriers. The company also expects to increase cash flow based on the tax reform. Capex is expected to be $40 million.