<PAGE>   1

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                   FORM 10-QSB

(Mark One)

[X]      QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended June 30, 2001.


[ ]      TRANSACTION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

          For the transition period from..............to..............


                         Commission file number: 1-15597


                                 LANDSTAR, INC.
             (Exact name of registrant as specified in its charter)



                Nevada                                    86-0914051
     (State or other jurisdiction of                   (I.R.S. Employer
      Incorporation or organization)                  Identification No.)



                         15825 N. 71st Street, Suite 205
                            Scottsdale, Arizona 85254
                                 (480) 596-8400



  (Address and telephone number of registrant's principal executive offices and
                          principal place of business)

         Check whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports, and (2) has been subject to such filing requirements for the past 90
days.

Yes [ x ]              No [   ]

         State the number of shares outstanding of each of the Issuer's classes
of common equity, as of the latest practicable date. 47,355,824 shares of common
stock, $.001 par value as of July 31, 2001.


<PAGE>   2


                                 LANDSTAR, INC.

                          FORM 10-QSB QUARTERLY REPORT


                                TABLE OF CONTENTS

                                                                        PAGE NO.
                                                                        --------
PART I.  FINANCIAL INFORMATION

         Item 1.   Condensed Consolidated Financial Statements

                      Condensed Consolidated Balance Sheets at               3
                         June 30, 2001 and December 31, 2000

                      Condensed Consolidated Statements of                   4
                         Operations for the Three and Six Months Ended
                         June 30, 2001 and 2000

                      Condensed Consolidated Statements of                   5
                         Cash Flows for the Six Months Ended
                         June 30, 2001 and 2000

                        Notes to Condensed Consolidated Financial            6
                         Statements

         Item 2.   Management's Discussion and Analysis of
                      Financial Condition and Results of Operations         14


PART II. OTHER INFORMATION

         Item 1.      Legal Proceedings.                                    16

         Item 2.      Changes in Securities.                                16

         Item 3.      Defaults Upon Senior Securities.                      16

         Item 4.      Submission of Matters to a Vote of Security Holders.  16

         Item 5.      Other Information.                                    16

         Item 6(a).   Exhibits.                                             16

         Item 6(b).   Reports on Form 8-K.                                  16

         Signatures.                                                        17




                                       2
<PAGE>   3
                                 LANDSTAR, INC.

                          PART I. FINANCIAL INFORMATION

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                  (UNAUDITED)
                                                                                   JUNE, 2001         DECEMBER 31, 2000
                                                                                 -------------        -----------------
<S>                                                                              <C>                  <C>
                                    ASSETS
Current Assets:
    Cash and cash equivalents                                                     $    110,113           $    29,542
    Accounts receivable, net of allowances of $111,979 at June 30, 2001              2,057,259                10,371
    Inventory                                                                        2,244,709                    --
    Prepaid and other assets                                                           619,949                 5,942
                                                                                  ------------           -----------

         Total current assets                                                        5,032,030                45,855

Property and equipment, net of accumulated depreciation                             19,469,982               730,539

Other Assets:
    Technology rights, net of accumulated amortization of $272,172
       and $169,660 at June 30, 2001 and December 31, 2000, respectively               612,832               649,624
    Excess of cost over fair market value of assets acquired, net
       of accumulated amortization of $556,393                                       7,070,123                    --
                                                                                  ------------           -----------

         Total other assets                                                          7,682,955               649,624
                                                                                  ------------           -----------

         Total assets                                                             $ 32,184,967           $ 1,426,018
                                                                                  ============           ===========

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Accounts payable and accrued expenses                                         $  6,280,185           $   842,416
    Current maturities of long-term debt                                             3,634,071                    --
    Due to shareholder                                                               3,448,333                    --
    Advances from related parties                                                           --               250,950
    Deferred revenue                                                                 2,000,000                    --
                                                                                  ------------           -----------

         Total current liabilities                                                  15,362,589             1,093,366

    Long-term debt, less current maturities                                          9,755,555                    --
                                                                                  ------------           -----------

         Total liabilities                                                          25,118,114             1,093,366

Commitments and contingencies

Shareholders' Equity:
    Common stock, $.001 par value; authorized 100,000,000
       shares; issued and outstanding 58,015,824 and 44,547,524
       at June 30, 2001 and December 31, 2000, respectively                             58,015               44,547

    Preferred stock; to be authorized and issued (15,000,000 shares)                    30,000                   --

    Additional paid-in capital (including $8,470,000 and $0, respectively
       relating to the preferred shares to be issued)                               17,850,957            6,029,499
    Common stock subscriptions                                                              --              117,000
    Accumulated deficit                                                            (10,872,149)          (5,858,394)
                                                                                  ------------          -----------

         Total shareholders' equity                                                  7,066,823              332,852
                                                                                  ------------          -----------

         Total liabilities and shareholders' equity                               $ 32,184,967           $1,426,018
                                                                                  ============           ===========




</TABLE>
See notes to condensed consolidated financial statements.



                                       3
<PAGE>   4

                                 LANDSTAR, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                        Three months ended June 30,              Six months ended June 30,
                                                       2001                     2000            2001                     2000
                                                     -----------            -----------       -----------            -----------
<S>                                                  <C>                    <C>               <C>                    <C>
Net sales                                            $ 3,490,399            $        --       $ 7,136,652            $        --
Cost of goods sold                                     4,088,081                     --         7,754,065                     --
                                                     -----------            -----------       -----------            -----------

         Gross profit (loss)                            (597,682)                    --          (617,413)                    --

Operating expenses:
    Research and development                                  --                 51,895                --                 65,880
    Selling                                              120,039                     --           290,633                     --
    General and administrative                         1,825,722                531,034         3,598,309                924,142
                                                     -----------            -----------       -----------            -----------

         Total operating expenses                      1,945,761                582,929         3,888,942                990,022
                                                     -----------            -----------       -----------            -----------

    Operating income (loss)                           (2,543,443)              (582,929)       (4,506,355)              (990,022)

Other income (expense):
    Interest income                                        3,910                     --             6,550                     --
    Interest expense                                    (187,817)                (2,838)         (458,128)               (15,016)
    Other income (expense)                                 1,893                     --           (57,034)                    --
                                                     -----------            -----------       -----------            -----------

         Total other income (expense)                   (182,014)                (2,838)         (508,612)               (15,016)
                                                     -----------            -----------       -----------            -----------

         Net loss                                    $(2,725,457)           $  (585,767)      $(5,014,967)           $(1,005,038)
                                                     ===========            ===========       ===========            ===========

         Net loss per share, basic and diluted       $     (0.06)           $     (0.02)      $     (0.11)           $     (0.03)
                                                     ===========            ===========       ===========            ===========

Weighted-average common
    shares outstanding, basic and diluted             46,686,899             38,236,000        45,885,310             38,136,000
                                                     ===========            ===========       ===========            ===========
</TABLE>


See notes to condensed consolidated financial statements.



                                       4
<PAGE>   5
                                 LANDSTAR, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                               Six months ended June 30,
                                                                               2001                  2000
                                                                            -----------           ---------
<S>                                                                        <C>                    <C>
Cash flows from operating activities
    Net loss                                                                $(5,014,967)        $(1,005,038)
    Adjustments to reconcile net income to net cash
      provided by operating activities:
        Depreciation and amortization                                         1,119,516             126,000
        Loss on sale of property and equipment                                   62,366                  --
        (Increase) decrease in operating assets:
           Trade receivables                                                   (131,354)                 --
           Inventories                                                         (491,215)                 --
           Prepaid expenses and other assets                                   (220,878)                 --
        Increase (decrease) in operating liabilities:
           Accounts payable                                                   1,242,674               7,079
                                                                            -----------         -----------
                Net cash used in operating activities                        (3,433,858)           (871,959)
Cash flows from investing activities:
        Capital expenditures                                                 (1,449,936)           (220,414)
        Cash from acquisition                                                   132,390                  --
        Proceeds from sale of property and equipment                              5,000                  --
                                                                            -----------         -----------
                Net cash used in investing activities                        (1,312,546)           (220,414)
Cash flows from financing activities:
        Proceeds from revolving line of credit                                4,708,672                  --
        Payments on revolving line of credit                                 (5,460,375)                 --
        Net proceeds from loan payable to stockholder and director            3,448,333                  --
        Payments on long-term debt                                             (842,291)                 --
        Issuance of common stock                                              2,747,927             633,571
        Issuance of notes payable                                               224,709                  --
        Net advances (payments) to/from related parties                              --             452,251
                                                                            -----------         -----------

                Net cash provided by financing activities                     4,826,975           1,085,822
                                                                            -----------         -----------

         Net increase (decrease) in cash and cash equivalents                    80,571              (6,551)

Cash and cash equivalents, beginning of period                                   29,542              10,042
                                                                            -----------         -----------

Cash and cash equivalents, end of period                                    $   110,113         $     3,491
                                                                            ===========         ===========
</TABLE>

See notes to condensed consolidated financial statements.



                                       5
<PAGE>   6

                                 LANDSTAR, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

     The condensed consolidated financial statements included herein have been
     prepared by the Company, without audit, pursuant to the rules and
     regulations of the Securities and Exchange Commission ("SEC"). Certain
     information and footnote disclosures normally included in financial
     statements prepared in accordance with generally accepted accounting
     principles have been condensed or omitted pursuant to such rules and
     regulations. However, the Company believes that the disclosures are
     adequate to make the information presented not misleading. These condensed
     consolidated financial statements should be read in conjunction with the
     financial statements and notes thereto included in the Company's Annual
     Report on Form 10-KSB for the year ended December 31, 2000.

     The unaudited condensed consolidated financial statements included herein
     reflect all adjustments (which include only normal recurring adjustments)
     which are, in the opinion of management, necessary to state fairly the
     results for the interim periods presented. The results of operations for
     the interim periods presented are not necessarily indicative of the
     operating results to be expected for any subsequent interim period or for
     the year ending December 31, 2001.

     The external auditors have not completed their review at the time of the
     filing of this report.

2.   CERTAIN SIGNIFICANT ACCOUNTING POLICIES

     The Company had no revenues from operations and was considered to be in the
     development stage through December 31, 2000. Effective January 8, 2001 the
     Company acquired all outstanding shares of stock of PolyTek Rubber &
     Recycling, Inc. (PolyTek) This acquisition is discussed in detail in Note
     3. PolyTek is also included in "the Company", effective at the time of its
     acquisition. The following accounting policies are additional policies that
     have been adopted along with the acquisition of PolyTek. Other accounting
     policies of the Company are described in the Company's Annual Report
     referred to in Note 1 above.




                                       6
<PAGE>   7

     Property and Equipment

     Property and equipment is recorded at cost, less accumulated depreciation.
     Depreciation is calculated using the straight-line method over the
     estimated useful lives of the assets.

     The depreciation periods for the PolyTek assets are as follows:

                  Land Improvements                               15 years
                  Buildings and Improvements                      40 years
                  Machinery and Equipment                         10 years
                  Transportation Equipment                         5 years
                  Office Furniture and Equipment                   5 to 10 years

     Inventories and Recognition of Tire Collection Fees

     Finished goods inventories are stated at the lower of cost (first-in,
     first-out method) or market. Work in process and finished goods inventories
     include materials, labor and allocated overhead.

     The primary raw material used in the production of crumb rubber is used
     tires. PolyTek does not generally purchase this raw material, but instead
     collects tires under contracts with various counties in its area of
     operation. The Company receives tire collection fees under third party
     contracts, which are recorded as revenue upon the processing of tires into
     the plant. Deferred revenues of $2,000,000 represents tire collection fees
     relating to the 3,000,000 tires awaiting processing on June 30, 2001.

     Intangible Assets

     Intangible assets of PolyTek primarily include goodwill, which is the
     excess of the acquisition price over the value assigned to identifiable
     assets. It is being amortized using the straight-line method over the
     expected economic life of 15 years.

     Liquidity and Capital Resources

     The accompanying financial statements have been prepared on a going concern
     basis, which contemplates the realization of assets and the satisfaction of
     liabilities in the regular course of business. At June 30, 2001, the
     Company has a working capital deficit of approximately $10.3 million. In
     January, 2001, the Company acquired PolyTek (see Note 3); however, in the
     more recent fiscal year ended September 30, 2000, PolyTek incurred a net
     loss of approximately $6.5 million and used approximately $4.9 million in
     cash flows from operations. In addition, PolyTek was in violation of one
     debt covenant at June 30, 2001. The lender did waive the covenants. These
     factors, among others, raise substantial doubt about the Company's ability
     to continue as a going concern.


                                       7
<PAGE>   8

3.   ACQUISITION OF POLYTEK RUBBER & RECYCLING, INC.

     Effective January 8, 2001, the Company entered into an agreement to
     purchase all of the issued and outstanding shares of common and preferred
     stock of this company. The Company used the purchase method of accounting
     for this transaction. Operations of PolyTek Rubber & Recycling, Inc.
     ("PRR") have been consolidated with the Company as of January 1, 2001. The
     Company exchanged 10,000,000 shares of its common stock for the outstanding
     common stock of PRR. The Company will also exchange 15,000,000 shares of
     its preferred stock (yet to be authorized and issued) in exchange for the
     issued and outstanding preferred shares of PRR, $3.7 million of debt to the
     sole shareholder as of January 8, 2001 and for $2,000,000 advanced to the
     Company in the first quarter of 2001. Each share of preferred stock will be
     convertible into two shares of the Company's common stock. The
     consideration of stock given in the merger is valued at $9,000,000 based on
     the current stock sales value of the Company's common stock at the time of
     the acquisition.

     The assets purchased included cash of $132,390, accounts receivable of
     $1,915,500, inventory of $1,753,500, other assets of $395,000, net fixed
     assets of $18,542,000 and other non-current assets of $1,256,000. In
     conjunction with the agreement, the Company assumed accounts payable and
     accrued liabilities of $3,944,000, deferred revenue of $2,000,000 and
     long-term debt of $18,459,000. Approximately $6,000,000 of goodwill was
     recorded as a result of this transaction.

     PolyTek Rubber & Recycling, Inc., an Arizona corporation, was established
     in July 1996. The Company and its subsidiaries operate in the rubber
     recycling industry and derive their revenue principally from the sale of
     crumb rubber produced at their manufacturing facilities in Arizona,
     Michigan, Pennsylvania and Oklahoma to customers on 30 day terms.



                                       8
<PAGE>   9

4.   PROFORMA INFORMATION

     The financial statements included in this report reflect only the activity
     of Landstar, Inc. (prior to the PRR acquisition) for six months ended
     June 30, 2000. The following would have been the consolidated net revenue,
     net loss and per share information if PRR had been owned during that time:

            Net revenues                                           $ 6,298,500
            Net loss                                               $(3,470,497)
            Net loss per share, basic and diluted                  $      (.09)

5.   INVENTORIES

     Inventories at June 30, 2001 were composed of $64,073 of raw materials,
     $118,846 of work-in-process and $2,061,790 of finished goods.

6.   PROPERTY AND EQUIPMENT

     The cost of property and equipment and the related accumulated depreciation
     at June 30, 2001 are as follows:

            Land                                                   $   698,000
            Land Improvements                                          866,882
            Building Improvements                                    4,059,084
            Office and Building Improvements                           848,036
            Tire Collection Equipment                                  401,254
            Factory Equipment                                       15,053,901
            Office Furniture and Fixtures                              362,590
            Vehicles and Trailers                                       46,978
            Construction in Progress                                   794,037
                                                                   -----------
                                                                    23,130,762
            Less:  accumulated depreciation                         (3,660,780)
                                                                   -----------

                                                                   $19,469,982
                                                                   ===========



                                       9
<PAGE>   10
7.   LONG-TERM DEBT

     The Company's long-term debt consists of the following at June 30, 2001:
<TABLE>
            <S>                                                                            <C>
            The Michigan Strategic Fund Bonds (a)                                         $ 5,000,000
            The Pennsylvania Acquisition Note (f)                                           1,446,080
            The Arizona Acquisition Note (f)                                                3,948,124
            The Oklahoma Acquisition Note (b)                                               1,126,387
            The Oklahoma Acquisition Capital Lease (c)                                        536,577
            The Tennessee Note (d)                                                            477,211
            The Oklahoma Installment Lease (e)                                                683,717
            Note payable to financial institution from the Oklahoma Subsidiary;
            guaranteed by the Company, interest at 9.89%, due in monthly
            installments of $1,788, including interest, through December 2006,
            collateralized by substantially all assets except land and building.               97,528
            Capital lease payable from the Company, interest at approximately 13%,
            due in quarterly installments of $2,613, including interest, through
            September 2003, collateralized by the associated equipment.                        18,324
            Capital lease payable from the Company, interest at 10.67%, due in
            quarterly installments of $7,499, including interest, through 2003,
            collateralized by the associated equipment.                                        55,678
                                                                                           ----------

                                                                                           13,389,626
                 Less current maturities                                                   (3,634,071)
                                                                                           ----------
                                                                                            9,755,555
                                                                                           ==========
</TABLE>


                                       10
<PAGE>   11

     The future maturities of the Company's long-term debt are as follows:

           Twelve Months Ending June 30,
           -----------------------------
           2002                                                    $ 3,634,071
           2003                                                      2,435,670
           2004                                                        371,752
           2005                                                        397,580
           2006                                                        436,176
           Thereafter                                                6,114,377
                                                                   -----------

                                                                   $13,389,626
                                                                   ===========

     (a) The Issue was to mature on September 1, 2011. However, the Company did
         not renew the Letter of Credit, which collateralized this issue on
         July 31, 2001. Therefore, the Bonds were subject to mandatory tender on
         August 1, 2001. The Trustee for the Bonds was paid on August 1, 2001.
         The Certificate of Deposit, placed by the former sole shareholder of
         PolyTek Rubber & Recycling, Inc., which collateralized the Letter of
         Credit was converted to immediately available funds and transferred to
         the Trustee. Long-term Debt of $5,000,000 will be replaced by the same
         amount of equity in the Company in the name of this same shareholder.
         This will be recorded in the third quarter.

     (b) The Oklahoma Acquisition Note was assumed in connection with the
         purchase of the Oklahoma manufacturing facility. The note is
         collateralized by substantially all of the assets of PRR's Oklahoma
         Subsidiary. The note bears interest at prime plus 1.5% and is due in
         monthly installments of $17,936, including interest, with the balance
         due in December 2006.

     (c) The Oklahoma Acquisition Capital Lease was also assumed in connection
         with the purchase of the Oklahoma manufacturing facility. The lease
         bears interest at 6.7% and is due in monthly installments of $4,513,
         including interest, with the balance due in December 2017. The lease is
         collateralized by the land and building associated with the
         manufacturing facility.

     (d) The Tennessee Note bears interest at prime less 1.0% and is due in
         monthly installments of $4,513, including interest, commencing in July
         2000. The note matures June 2009. The note is collateralized by certain
         land, buildings, receivables, and equipment.

         The Tennessee Note contains restrictive covenants, including
         requirements for the Company to meet certain financial ratios. The
         Company was in violation of certain of these covenants as of September
         30, 2000. The violations were subsequently waived by the financial
         institution in a letter dated November 3, 2000. Management can provide
         no assurance that the Company will not violate these covenants in the
         future. Future violation of these covenants could result in the
         obligation becoming due and payable on demand.

     (e) On May 23, 2000, PRR's Oklahoma Subsidiary entered into an installment
         lease with the holders of the Oklahoma Acquisition Note, consisting of
         a series of non-revolving draws under a collateralized credit
         agreement, for the purpose of financing the purchase and installation
         of operating machinery. The draws bear interest at prime plus 2% and
         are due in monthly payments of principal and interest through September
         2005. The draws are unconditionally guaranteed by the Company and are
         collateralized by the associated



                                       11
<PAGE>   12

         machinery acquired. Additionally, the obligation is
         cross-collateralized with the Oklahoma Acquisition Note.

     (f) In connection with the acquisition of the Arizona operations in 1997,
         the PolyTek Rubber & Recycling, Inc. issued a note payable and a
         security agreement for fixtures and equipment (the "Arizona Note"). The
         Arizona Note is collateralized by a Deed of Trust on certain property
         in Maricopa County, Arizona. The Arizona Note is due in annual
         principal installments $1,325,000 through February 28, 2003. Interest
         is payable in quarterly installments with a base rate at LIBOR plus one
         percent per annum. Because the agreement includes the waiving of
         certain interest payments, the original stated principal of $6,300,000
         was discounted to $5,823,890 using 6.68%.

         In connection with the acquisition of PRR's Pennsylvania Subsidiary,
         the Company issued a note payable to NRI Pennsylvania representing
         $2,500,000 deferred consideration (the "NRI Note"). The NRI Note is
         collateralized by a mortgage on certain real property as defined in the
         purchase agreement. The NRI Note is due in annual principal and
         interest installments of $833,333 through May 1, 2003. Because the NRI
         Note contains no stated interest rate, the original stated principal of
         $2,500,000 was discounted to approximately $2,072,000 using, 10%.

         As of June 30, 2001, aggregate principal maturities on the Arizona
         Note and the NRI Note in each of the next three years are as follows:
<TABLE>
<CAPTION>

                                                      Discounted
                                                       principal         Imputed
              Years Ending December 31,                payments          interest            Total
              ------------------------                 --------          --------            -----
              <S>                                    <C>                 <C>               <C>
              2001                                    $2,390,916         $217,418          $2,608,334
              2002                                     2,003,576          154,757           2,158,333
              2003                                     2,072,504           85,829           2,158,333
                                                      ----------         --------          ----------

                                                      $6,466,996         $458,004          $6,925,000
                                                      ==========         ========          ==========
</TABLE>


8.   LINES OF CREDIT

         On January 10 and July 26, 2001, PRR and the Pennsylvania subsidiary,
         respectively, entered into revolving line of credit agreements for
         $1,500,000 and $1,000,000, respectively. In June 2001, all obligations
         to the financial institution under those agreements were paid in full
         and releases were obtained for all assets collateralizing the
         agreements.

         One June 25, 2001, the Company entered into an accounts receivable
         factoring agreement with a different financial institution. The
         agreement was initially for one month but has since been extended for
         two years. The financial institution purchases customer accounts
         receivables, at its option, for the Arizona, Pennsylvania and Oklahoma
         subsidiaries. The purchase is on a non-recourse basis except they do
         not bear the loss for customer disputes, discounts, credits, returns or
         other adjustments. The financial institution initially advances 70% of
         the amount of the invoice and the remainder, less fees, is advanced
         once the invoice is paid by the customer. The interest rate varies
         depending upon the age of the receivable at the time of payment. The
         agreement is collateralized by substantially all of the assets of the
         subsidiaries involved. There were no outstanding obligations under this
         agreement as of June 30, 2001. There are no financial covenants
         relating to this agreement.



                                       12
<PAGE>   13

9.   COMMITMENTS

     The Company leases production equipment, office equipment and vehicles
     under various noncancelable agreements that expire between June 2001 and
     March 2005 which require various minimum annual rentals. The Company leases
     office space with payments of $8,940 per month which expires in November
     2005, and plant space with payments of $11,958 per month which will be
     terminated in September 2001. In addition, the Company leases production
     equipment on a month to month basis.

     The total approximate minimum rental commitments under noncancelable leases
     at June 30, 2001 are as follows:

             Years Ending December 31,
             -------------------------
             2001                                                    $114,110
             2002                                                     207,747
             2003                                                     195,186
             2004                                                     174,024
             2005                                                     100,103



                                       13
<PAGE>   14
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

     In addition to historical information, this Quarterly Report contains
     forward-looking statements. These forward-looking statements are subject to
     a number of risks and uncertainties that could cause actual results to
     differ materially from those reflected in such forward-looking statements.
     Factors that might cause such a difference include, but are not limited to,
     those discussed in the section entitled "Management's Discussion and
     Analysis of Financial Condition and Results of Operations--Factors That May
     Affect Future Results and Market Price of Stock". Readers are cautioned not
     to place undue reliance on these forward-looking statements, which reflect
     management's opinions only as of the date hereof. The Company undertakes no
     obligation to revise or publicly release the results of any revision to
     those forward-looking statements. Readers should carefully review the risk
     factors described in other documents the Company files from time to time
     with the SEC, including its Annual Report on Form 10-KSB for the fiscal
     year ended December 31, 2000 and the Quarterly Reports on Form 10-QSB filed
     by the Company in fiscal year 2001.

RESULTS OF OPERATIONS

     Comparison of results of operations is made difficult because in the three
     and six months ended June 30, 2000, the Company was a development stage
     company with no revenues, five to six employees and no operating
     facilities. A pilot facility was in process of being built in Dayton, Ohio.
     The Company continued as a development company through the end of December
     2000. However, significant staff was hired in the second half of the year
     to prepare the Company for its launch into operations in 2001.

     Effective January 8, 2001, the Company took its first step into operations
     with the acquisition of PolyTek Rubber & Recycling, Inc. (See Note 3.) With
     this action, they acquired four plants that manufacture crumb rubber.
     Revenues for the first six months of 2001 were $7.1 million compared to
     zero for LandStar, Inc. for the same period in the prior year. PolyTek
     however produced $6.3 million in revenues in the first six months of 2000.
     In that period in 2000, only two of the four plants were in full operation
     for all six months and Michigan and Pennsylvania were added in April and
     May 2000. In 2001 all four plants were producing, although Michigan was
     closed for repairs for most of February and March 2001.

     In 2001, the Company has lost $617,413 at the gross margin line due to a
     combination of low sale prices of the crumb rubber and high costs produced
     by inefficient operations. The Company is attempting to right this
     situation by addressing both sides of the formula. First, current
     negotiations are in process to increase our prices to our customers. There
     has not been a price increase for a number of years while costs to
     manufacture continue to rise. However, there are no guarantees that
     management will be successful in obtaining the needed increases although
     some minor increases have occurred. Management is also reviewing and
     analyzing each plant on its own merits. The plants must be expanded since
     this is a volume business. They must have the correct equipment, properly
     configured with capable operations and preventative maintenance programs in
     place to operate in a safe, efficient and profitable manner. Management has
     the manufacturing and engineering personnel in place to accomplish this
     review and analysis. At completion, a program is to be outlined for each
     facility that will bring their operations to the proper production and
     efficiency levels. As previously stated management had temporarily ceased
     operations at the Flat Rock, Michigan facility in February and March.
     Several capital projects were completed and an analysis of the products
     being produced the customers the products were sold to and the price
     obtained were all examined. After bringing production online and operating
     the facility for another sixty days, management made the decision to
     permanently cease production at this facility as of June 30, 2001. All of
     the factors analyzed above reflected that with overhead burden at the
     plant, sales prices and the cost of operating the cryogenic line would not
     allow the Company to produce a profit at that facility. For the last
     eighteen months the Flat Rock facility has losses totaling $4.7 million of
     which $1.7 related to the six months ended June 30, 2001. Losses at the
     gross margin line for this facility for those same six months was $1.5.
     Without the Flat Rock plant, the gross margin would have been a positive
     $855,000. The Company, at this time, has reached an understanding with the
     landlord that effective September 30, 2001, the Company lease for that
     facility will be terminated. The Company will forfeit the deposit relating
     to the lease. The Company is currently dismantling the equipment in
     Michigan and relocating it to the other three facilities. The equipment
     will be used to increase the capacity at the other plants, improve
     efficiency or produce new products.

     Selling and general and administrative expenses for the six months ended
     June 30, 2001 were $3.9 million compared to $1.0 million for LandStar, Inc.
     in 2000. Include PolyTek for the first six months of 2000 and the selling,
     general and administrative expenses would have been $2.6 million. The first
     six month comparison reflects a $1,300,000 increase in selling general and
     administrative expenses. PolyTek's expenses were relatively the same for
     the six month period. LandStar's corporate expenses for 2001 grew from
     $1.0 million for the first six months of 2000 to $2.25 million in 2001.
     Again this is due to putting in place the corporate staff in the last half
     of 2000 to prepare for the planned acquisitions in 2001. PolyTek and
     LandStar both have staffs that are sized to handle much larger operations.
     As previously stated, volume is very critical in this company and this


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     industry. Without substantive increases in production and sales, either
     through additional acquisitions or internal generation, the Company will
     have to look at the ongoing staffing needs of the company. The first six
     months of 2001 expenses were also somewhat overstated due to the severance
     payments made to dismissed employees at the time of acquisition. This
     amounted to approximately $562,000 in the first six months of 2001.
     Additional costs have also been incurred for the LandStar personnel to
     travel to the various facilities to complete their operations and
     engineering analysis and to relocated Landstar's corporate offices from
     Victoria, British Columbia, Canada to Scottsdale, Arizona. LandStar also
     hired three employees that will manage the asphalt rubber division of the
     Company: there were no revenues from this division in the six month period.

     Interest expenses were in excess of $458,000 for the combined Landstar,
     Inc. in 2001 compared to $15,000 for only Landstar in 2000. However,
     Polytek incurred $664,000 in interest charges in the first six months of
     2000. Therefore there was a $221,000 overall improvement from 2000 to 2001.

     Other expenses in 2001 relate to losses incurred in the transfer of plant
     equipment from Tennessee to the other manufacturing facilities.

LIQUIDITY AND FINANCIAL RESOURCES

     The primary sources of liquidity during the first six months of 2001 was
     through financing activities and advances from the former owner of PRR.
     Proceeds from the revolving line of credit and the issuance of common stock
     were the primary financing activities. $2,000,000 of the common stock
     relates to the conversion advances made by the former shareholder of
     PolyTek in the first quarter 2001 to common stock. Funds were mainly
     utilized for working capital with $1,450,000 used for the acquisition of
     plant and equipment.

     As previously mentioned, the Company has replaced the former revolving
     line of credit with an accounts receivable factoring agreement. At the
     same time, the Company continues in its pursuit for other debt or equity
     financing to obtain needed funds for the capital improvements,
     acquisitions and working capital. Management has found difficulty in
     finalizing any financing due to PPR's past financial performance and the
     lack of prior operations for LandStar.

     The Company did announce in an August 6, 2001 press release that it had
     reached a tentative agreement on a non-binding financing arrangement for a
     $20 million equity investment. The investment is subject to the
     completion of the normal due diligence process. If completed, funds from
     this investment would be used for the needed capital improvement and
     expansion projects at the three remaining crumbing facilities and the
     finalization of a pending acquisition.


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                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

         The Company is from time to time involved in litigation incidental to
the conduct of its business. At this time the Company is not involved in any
material legal proceedings either instituted by or against the Company.

ITEM 2.  CHANGES IN SECURITIES.

         Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

         Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         Not applicable.

ITEM 5.  OTHER INFORMATION.

         Not applicable.

ITEM 6(a).    EXHIBITS.

         Not applicable.

ITEM 6(b).    REPORTS ON FORM 8-K.

         The Company filed one Form 8-K on January 23, 2001 which announced the
acquisition of PolyTek Rubber & Recycling, Inc. and the appointment of two
senior executives.



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                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunder duly authorized.



Date:  August 20, 2001                 s/n/s  D. Elroy Fimrite
                                       -----------------------------------------
                                       D. Elroy Fimrite - Chairman of the Board,
                                       President and Chief Executive Officer



                                       s/n/s  Michael F. Jones
                                       -----------------------------------------
                                       Michael F. Jones - Vice President and
                                       Chief Financial Officer














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