Texas court rules Landstar to pay 100% of $23M accident verdict

Freight broker Landstar System again called retired elevated security and claims expenses up of a quarterly net report. In a Wednesday filing with the Securities and Exchange Commission, the institution outlined $22 cardinal successful insurance-related charges taken during the caller quarter.

The filing said, “highly elevated security and claims costs of $56 million,” included $22 cardinal (49 cents per share) successful unfavorable claims activity.

It flagged $11 cardinal (24 cents per share) successful charges from 2 abstracted “tragic vehicular accidents” that occurred successful the 4th quarter. The institution is expanding self-insured assertion reserves by $5.3 cardinal (12 cents per share) pursuing an actuarial review.

Landstar besides noted an adverse improvement successful a Texas court.

On Aug. 6, a Texas assemblage recovered that Landstar Ranger acted arsenic a broker, not a centrifugal bearer successful a 2021 “tragic vehicular accident” involving Eduardo Cabral. The verdict assigned $3.42 cardinal successful damages (15% of the $22.8 cardinal successful full monetary damages) to Landstar. The remaining 85% of the damages were attributed to MyUniverse — the centrifugal bearer hauling the brokered load.

A Jan. 13 judgement from the proceedings tribunal said Landstar is present liable for 100% of the monetary damages positive pre-judgement interest. Landstar has recorded an further complaint of $5.7 cardinal (13 cents per share) for the accident.

“The Company intends to vigorously entreaty the Cabral Matter, including the Judgment; however, nary assurances tin beryllium provided arsenic to the probability of occurrence with respect to immoderate imaginable appeals relating to the Cabral Matter, generally, oregon the Judgment, specifically, oregon the eventual result of immoderate specified appeals,” the Wednesday filing read.

Lastly, Landstar booked $2.1 cardinal (5 cents per share) successful further noncash impairment charges tied to its divestiture of Mexican subsidiary, Landstar Metro.

Landstar (NASDAQ: LSTR) said it present expects fourth-quarter net per stock of conscionable 70 cents, which would beryllium good beneath the $1.22 statement estimation astatine the clip of the people and EPS of $1.31 successful the year-ago quarter. Landstar’s statement EPS estimation has since been updated to $1.04.

(Operating income successful the 4th is expected to beryllium $30 million.)

Landstar said fourth-quarter gross volition full $1.17 billion, which is conscionable beneath the $1.18 cardinal statement estimation and the $1.21 cardinal reported successful the year-ago quarter. The institution said the gross alteration was driven by a 1% y/y diminution successful motortruck loads, which was partially offset by a 1% summation successful gross per load (yield). It said spot successful flatbed loads and yields were offset by softer dryvan trends.