Page 1

Landstar System , Inc. 13410 Sutton Park Drive , South Jacksonville , FL 32224 904 398 9400 For Immediate Release LANDSTAR Contacts : Jim Gattoni ( CEO ) Fred Pensotti ( CFO ) Landstar System , Inc. www.landstar.com 904-398-9400 October 20 , 2021 LANDSTAR SYSTEM REPORTS ALL - TIME QUARTERLY RECORD DILUTED EARNINGS PER SHARE OF $ 2.58 IN THE 2021 THIRD QUARTER Jacksonville , FL - Landstar System , Inc. ( NASDAQ : LSTR ) reported record quarterly revenue of $ 1.734 billion in the 2021 third quarter , a 60 percent increase over revenue of $ 1.086 billion in the 2020 third quarter . Net income was a quarterly record of $ 98.7 million , or diluted earnings per share of $ 2.58 , in the 2021 third quarter compared to net income of $ 61.9 million , or diluted earnings per share of $ 1.61 , in the 2020 third quarter . Operating income grew to an all - time quarterly record of $ 131.4 million in the 2021 third quarter , 60 percent above operating income of $ 82.4 million in the 2020 third quarter . To put the strength of our 2021 third quarter performance in perspective , revenue , operating income , net income and diluted earnings per share increased 60 percent , 60 percent , 59 percent and 60 percent , respectively , over the 2020 third quarter , which at the time included the second highest amounts achieved of each of these financial metrics in any third quarter in the Company's history . Please note that commencing with the release of our financial results for the 2021 third quarter , the Company revised its definition of the term “ gross profit ” . Gross profit is now defined as revenue less costs of revenue . In conjunction with this change , the Company has initiated the use of the term " variable contribution " , a non - GAAP financial measure , to refer to the amount represented by revenue less the costs of purchased transportation and commissions to agents that we formerly referred to as gross profit . In addition , the Company now defines “ gross profit margin " to refer to gross profit divided by revenue and " variable contribution margin " , a non - GAAP financial measure , to refer to variable contribution divided by revenue . Gross profit in the 2021 third quarter was $ 189.2 million , an all - time quarterly record , compared to $ 119.8 million in the 2020 third quarter . Variable