LSTR
#When we do oil and gas, we try and pick up anything related to the oil and gas industry, whether it be infrastructure or exploration or stuff like that.
In the first quarter, here, I believe it stayed at 2%.
If you just give me a second ---+ okay, yes, it looks like it's about 2% of revenue.
We also split out ---+ we look at that and then we look the other energy commodity groups, too.
But actually, it says it's 2% but we grew it about, it looks like maybe 4% over the last year's first quarter.
So it didn't directly impact us, but as Pat was talking before, the thing that might have impacted us is some of the flatbeds that were hauling some of this oil and gas stuff might have come into the industry, and so there's just a little more capacity available.
Directly, still, we don't think there is a big impact, but from capacity coming on the market I think is more of the impact.
I can't quantify it, but I would bet there are some flatbeds out there available that weren't previously available to haul some of the freight we have.
<UNK>, this is Pat.
It really depends on what they're doing.
If they're working in the oil fields and they're providing product in an expedited fashion, then typically that equipment is not really positioned to go over the road.
On the other hand, those people that were pulling cargo that was pipes and pumps and the like into the oilfield in servicing US Steel or some other account, then they're going to be not as in great a demand as they previously were.
So, the oilfield, the pure oilfield hauler, your thesis is correct.
They are not typically competing with carriers like us and others for over-the-road transportation.
There were several reasons why the special dividends popped.
One was the sale of the Southfield facilities in the end of 2013 generated a significant gain on sale and we distributed pretty ---+ I think it was $0.35 a share.
We had the ---+ was it prior to that with the ---+ we thought the tax ---+ with the taxes that were going to, and we delayed ---+ we were going to cancel the smaller dividend, so we did kind of a special dividend at the end of 2012, I believe.
$0.50, yes.
$0.50 at the end of 2012, and so there were specific reasons about that one, too.
And then, last year, what had happened last year, we ended up piling up cash on the balance sheet.
Because, if you watched our stock run up from about May to December, we weren't chasing the run up.
I want to say it went from like maybe mid-$50 up to $80 in the matter of three or four months.
We didn't chase that run up, and while it was happening we were piling cash up on balance sheet, so we made a decision to do a special dividend based on the cash that was on the balance sheet.
Generally, we do a special when we have something, when we end up in a position with either a lot of cash on the balance sheet or something changes in the environment where you could see it happening.
At this point, I would think we're not talking about a special dividend in the short term, but I'm sure we will be discussing one every December and make a decision on whether we're going to do one or not.
<UNK>, this is <UNK>.
When you say, gauge them, what do you mean by that.
We don't approve them in that fashion.
No, we really don't.
The only information that we calculate and provide to our agents is how many loads they have hauled for Landstar over a period of time.
But on the way in the door, other than a safety check and insurance check and getting the contract and so forth, there really isn't a lot of history that we go and grab.
<UNK>, I think those flatbed companies have a tendency to be smaller in nature, and therefore, they would use a company like Landstar as their sales force rather than going out and trying to knock on doors and generate business on their own.
A lot of them.
If we were to assume that the BCOs are going to stay at low utilization, yes, I would expect brokerage to exceed BCO going forward.
But, we are hoping that the BCOs will eventually get back and increase their utilization and get back to that 50% of the business.
Again, if we can keep growing brokerage, too, it is a battle to see who comes in first.
Right.
If it stays as is, I anticipate brokerage will continue to be bigger than BCOs, if utilization stays where it is.
This is <UNK>.
On the commissions, we actually as I stated in my prepared remarks, the rate paid to the truck brokerage carriers, the PT rate was actually down because of our shared arrangements with the agents.
That is what drove that full 18 basis point increase, really a mix of additional or more brokerage revenue than BCO revenue.
We have more van operators in the fleet today.
I would say probably 65/35, maybe even a little bit north of that.
And the influx of BCOs that we had last year, and so far this year, tend to be more van than flat as well.
That's a rough split.
Yes.
Thank you, Dori.
We are looking forward to moving into this second quarter, and again, volume is strong right now.
We're still seeing mid-single-digit growth rates.
It is a tougher revenue per load count moving into the quarter, but we feel pretty good about the performance of the first quarter, and we see it carrying into the second quarter.
I look forward to speaking with you again on our second-quarter, mid-quarter update call, currently scheduled for June 4.
Have a good day.
