Landstar System adds new share buyback pact of 1.9M shares, special dividend

Landstar System announced that on December 6, its Board of Directors increased the number of shares of its common stock that the Company is authorized to purchase under its stock purchase program to 3,000,000. The increase to the share purchase program reflects a new authorization to purchase 1,900,826 shares of Landstar System common stock in addition to the remaining capacity under the existing authorization to purchase 1,099,174 shares. The Company also announced that its Board has declared a special one-time cash dividend in the amount of $2.00 per share, payable on January 20, 2023, to stockholders of record as of the close of business on January 6. "Landstar’s strong balance sheet and free cash flow generation enables us to continue to return value to our stockholders through a significant increase to our stock purchase program coupled with a special dividend," said Landstar President and Chief Executive Officer Jim Gattoni. "As previously reported, the Company purchased a total of 1,900,826 shares of its common stock at an aggregate cost of approximately $286M during the first three quarters of its 2022 fiscal year. The Company also returned $115.7M to stockholders in the form of cash dividends paid on shares of its common stock during the 2022 fiscal year. As previously reported, as of September 24 the Company had $228M in cash and short-term investments. The Company intends to continue to use its available free cash flow to purchase its stock under its stock purchase program."