Landstar Completes Buy-out of NLM Acquisition Contingent Payment Obligations
JACKSONVILLE, Fla., Oct. 11 - Landstar System, Inc. (Nasdaq: LSTR), a non-asset based provider of integrated supply chain solutions delivering safe, specialized transportation, warehousing and logistics services, today announced that it has agreed to buy-out all future contingent payment obligations to the prior owner of NLM for $3.8 million.
In July 2009, Landstar acquired National Logistics Management Co. (NLM), a technology-based supply chain solutions provider. Under the terms of the purchase agreement between the Company and the prior owner of NLM, Landstar agreed to pay additional purchase price to the prior owner contingent upon the achievement by NLM of certain levels of earnings through 2014. Under the terms of the buy-out agreement, Landstar and the prior owner of NLM have agreed to extinguish all of the Company's contingent payment obligations under the purchase agreement in exchange for a total payment by Landstar to the prior owner of $3.8 million.
The $3.8 million one-time charge will be reflected in the Company's 2010 third quarter results to be announced on Thursday, October 14, 2010. The charge is expected to reduce the Company's 2010 third quarter diluted earnings per share by $0.05.
About Landstar:
Landstar System, Inc. is a non-asset based provider of integrated supply chain solutions. Landstar delivers safe, specialized transportation, warehousing and logistics services to a broad range of customers worldwide utilizing a network of agents, third-party capacity owners and employees. All Landstar transportation companies are certified to ISO 9001:2008 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.
SOURCE Landstar System, Inc.
CONTACT: Jim Gattoni, Landstar System, Inc., +1-904-398-9400
Web Site: www.landstar.com
