##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 September 24, 2005
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
  0-21238
  LANDSTAR SYSTEM, INC.
  Delaware
(State or other jurisdiction
of incorporation or organization)
    
    06-1313069
(I.R.S. Employer
Identification No.)
 13410 Sutton Park Drive South, Jacksonville, Florida   32224   (904) 398-9400
 N/A
  T £
  Yes T No £
  £ T




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PART I
   Item 1Consolidated Balance Sheets as of September 24, 2005 and December 25, 2004
    
    Page 3Consolidated Statements of Income for the Thirty Nine and Thirteen Weeks Ended September 24, 2005 and September 25, 2004
    
    Page 4Consolidated Statements of Cash Flows for the Thirty Nine Weeks Ended September 24, 2005 and September 25, 2004
    
    Page 5Consolidated Statement of Changes in Shareholders Equity for the Thirty Nine Weeks Ended September 24, 2005
    
    Page 6Notes to Consolidated Financial Statements
    
    Page 7Item 2Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    Page 10Item 3Quantitative and Qualitative Disclosures About Market Risk
    
    Page 19Item 4Controls and Procedures
    
    Page 20PART
II
OTHER INFORMATIONItem 1.
Legal Proceedings
    
    Page 20Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
    
    Page 21Item 6.
Exhibits
    
    Page 22Signatures
    
    Page 24Solicitation, Offer and Award AgreementSection 302 Chief Executive Officer CertificationSection 302 Chief Financial Officer CertificationSection 906 Chief Executive Officer CertificationSection 906 Chief Financial Officer Certification
    2




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##### Table of Contents



PART I
 
 Item 1
  
  
 Sept. 24,
    
    
    Dec. 25,2005
    
    
    2004ASSETSCurrent AssetsCash and cash equivalents
    
    $
    112,000
    
    
    $
    61,684Short-term investments
    
    
    22,617
    
    
    
    21,942Trade accounts receivable, less allowance of $4,618 and $4,021
    
    
    339,389
    
    
    
    338,774Other receivables, including advances to independent contractors,
less allowance of $4,438 and $4,245
    
    
    12,891
    
    
    
    13,929Deferred income taxes and other current assets
    
    
    15,615
    
    
    
    13,503Total current assets
    
    
    502,512
    
    
    
    449,832Operating property, less accumulated depreciation and amortization
of $67,413 and $65,315
    
    
    82,281
    
    
    
    76,834Goodwill
    
    
    31,134
    
    
    
    31,134Other assets
    
    
    27,447
    
    
    
    26,712Total assets
    
    $
    643,374
    
    
    $
    584,512LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesCash overdraft
    
    $
    24,463
    
    
    $
    23,547Accounts payable
    
    
    174,443
    
    
    
    120,197Current maturities of long-term debt
    
    
    9,193
    
    
    
    8,797Insurance claims
    
    
    32,317
    
    
    
    32,612Other current liabilities
    
    
    60,426
    
    
    
    54,926Total current liabilities
    
    
    300,842
    
    
    
    240,079Long-term debt, excluding current maturities
    
    
    96,259
    
    
    
    83,293Insurance claims
    
    
    32,321
    
    
    
    32,430Deferred income taxes
    
    
    12,511
    
    
    
    15,871Shareholders EquityCommon stock, $0.01 par value, authorized 160,000,000 and
80,000,000 shares, issued 63,757,290 and 63,154,190
    
    
    638
    
    
    
    632Additional paid-in capital
    
    
    51,482
    
    
    
    43,845Retained earnings
    
    
    371,474
    
    
    
    295,936Cost of 5,344,883 and 2,490,930 shares of common stock in treasury
    
    
    (221,776
    )
    
    
    (127,151
    )Accumulated other comprehensive income (loss)
    
    
    (182
    )
    
    
    47Notes receivable arising from exercises of stock options
    
    
    (195
    )
    
    
    (470
    )Total shareholders equity
    
    
    201,441
    
    
    
    212,839Total liabilities and shareholders equity
    
    $
    643,374
    
    
    $
    584,512
  3




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Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Revenue
    
    $
    1,717,386
    
    
    $
    1,430,212
    
    
    $
    676,070
    
    
    $
    526,883Investment income
    
    
    2,087
    
    
    
    879
    
    
    
    852
    
    
    
    337Costs and expenses:Purchased transportation
    
    
    1,286,016
    
    
    
    1,066,739
    
    
    
    502,924
    
    
    
    392,646Commissions to agents
    
    
    135,689
    
    
    
    113,414
    
    
    
    53,650
    
    
    
    42,777Other operating costs
    
    
    27,400
    
    
    
    27,313
    
    
    
    10,785
    
    
    
    8,537Insurance and claims
    
    
    34,850
    
    
    
    46,751
    
    
    
    11,946
    
    
    
    13,297Selling, general and administrative
    
    
    95,405
    
    
    
    87,831
    
    
    
    34,582
    
    
    
    30,643Depreciation and amortization
    
    
    11,926
    
    
    
    10,220
    
    
    
    3,998
    
    
    
    3,654Total costs and expenses
    
    
    1,591,286
    
    
    
    1,352,268
    
    
    
    617,885
    
    
    
    491,554Operating income
    
    
    128,187
    
    
    
    78,823
    
    
    
    59,037
    
    
    
    35,666Interest and debt expense
    
    
    3,194
    
    
    
    2,213
    
    
    
    1,205
    
    
    
    662Income before income taxes
    
    
    124,993
    
    
    
    76,610
    
    
    
    57,832
    
    
    
    35,004Income taxes
    
    
    47,997
    
    
    
    29,304
    
    
    
    22,207
    
    
    
    13,390Net income
    
    $
    76,996
    
    
    $
    47,306
    
    
    $
    35,625
    
    
    $
    21,614Earnings per common share (1)
    
    $
    1.30
    
    
    $
    0.79
    
    
    $
    0.61
    
    
    $
    0.36Diluted earnings per share (1)
    
    $
    1.27
    
    
    $
    0.77
    
    
    $
    0.60
    
    
    $
    0.35Average number of shares outstanding:Earnings per common share (1)
    
    
    59,416,000
    
    
    
    60,002,000
    
    
    
    58,494,000
    
    
    
    60,435,000Diluted earnings per share (1)
    
    
    60,730,000
    
    
    
    61,654,000
    
    
    
    59,709,000
    
    
    
    61,909,000Dividends paid per common share
    
    $
    0.025
    
    
    
    
    
    
    $
    0.025
 
 (1)
    
    2004 earnings per share amounts and average number of shares outstanding have been adjusted to
give retroactive effect to a two-for-one stock split effected in the form of a 100% stock dividend
declared December 9, 2004.  4




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Thirty Nine Weeks EndedSept. 24,
    
    
    Sept. 25,2005
    
    
    2004OPERATING ACTIVITIESNet income
    
    $
    76,996
    
    
    $
    47,306Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization of operating property
    
    
    11,926
    
    
    
    10,220Non-cash interest charges
    
    
    131
    
    
    
    305Provisions for losses on trade and other accounts receivable
    
    
    4,649
    
    
    
    4,978(Gains) losses on sales and disposals of operating property
    
    
    (206
    )
    
    
    81Director compensation paid in common stock
    
    
    193
    
    
    
    402Tax benefit on stock option exercises
    
    
    2,418
    
    
    
    7,289Deferred income taxes, net
    
    
    (3,360
    )
    
    
    (743
    )Changes in operating assets and liabilities:Increase in trade and other accounts receivable
    
    
    (4,226
    )
    
    
    (73,212
    )Increase in other assets
    
    
    (852
    )
    
    
    (3,250
    )Increase in accounts payable
    
    
    54,246
    
    
    
    48,248Increase in other liabilities
    
    
    6,240
    
    
    
    7,906Increase (decrease) in insurance claims
    
    
    (404
    )
    
    
    9,274NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    147,751
    
    
    
    58,804INVESTING ACTIVITIESNet change in other short-term investments
    
    
    (2,728
    )
    
    
    (3,775
    )Sales and maturities of investments
    
    
    4,018
    
    
    
    1,800Purchases of investments
    
    
    (4,446
    )Purchases of operating property
    
    
    (1,851
    )
    
    
    (4,669
    )Proceeds from sales of operating property
    
    
    3,992
    
    
    
    820NET CASH USED BY INVESTING ACTIVITIES
    
    
    (1,015
    )
    
    
    (5,824
    )FINANCING ACTIVITIESIncrease in cash overdraft
    
    
    916
    
    
    
    53Proceeds from repayment of notes receivable arising from exercises of stock
options
    
    
    275Dividends paid
    
    
    (1,458
    )Proceeds from exercises of stock options
    
    
    5,393
    
    
    
    14,243Borrowings on revolving credit facility
    
    
    2,000
    
    
    
    71,000Purchases of common stock
    
    
    (95,600
    )
    
    
    (27,001
    )Principal payments on long-term debt and capital lease obligations
    
    
    (7,946
    )
    
    
    (85,742
    )NET CASH USED BY FINANCING ACTIVITIES
    
    
    (96,420
    )
    
    
    (27,447
    )Increase in cash and cash equivalents
    
    
    50,316
    
    
    
    25,533Cash and cash equivalents at beginning of period
    
    
    61,684
    
    
    
    42,640Cash and cash equivalents at end of period
    
    $
    112,000
    
    
    $
    68,173
  5




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NotesReceivableArisingAccumulated
    
    
    fromCommon Stock
    
    AddlPaid-In
    
    
    Retained
    
    
    Treasury
Stockat Cost
    
    
    OtherComprehensive
    
    
    Exercisesof StockShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Shares
    
    
    Amount
    
    

Income (Loss)
    
    
    Options
    
    
    TotalBalance December
25, 2004
    
    
    63,154,190
    
    
    $
    632
    
    
    $
    43,845
    
    
    $
    295,936
    
    
    
    2,490,930
    
    
    $
    (127,151
    )
    
    $
    47
    
    
    $
    (470
    )
    
    $
    212,839Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    76,996
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    76,996Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,458
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,458
    )Purchases of common
stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,873,053
    
    
    
    (95,600
    )
    
    
    
    
    
    
    
    
    
    
    (95,600
    )Exercises of stock
options and related
income tax benefit
    
    
    597,100
    
    
    
    6
    
    
    
    7,805
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,811Repayment of notes
receivable arising
from exercises of
stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    275
    
    
    
    275Director
compensation paid
in common stock
    
    
    6,000
    
    
    
    
    
    
    
    193
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    193Incentive
compensation paid
in common stock
    
    
    
    
    
    
    
    
    
    
    (361
    )
    
    
    
    
    
    
    (19,100
    )
    
    
    975
    
    
    
    
    
    
    
    
    
    
    
    614Unrealized loss on
available- for-sale
investments, net of
income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (229
    )
    
    
    
    
    
    
    (229
    )Balance September
24, 2005
    
    
    63,757,290
    
    
    $
    638
    
    
    $
    51,482
    
    
    $
    371,474
    
    
    
    5,344,883
    
    
    $
    (221,776
    )
    
    $
    (182
    )
    
    $
    (195
    )
    
    $
    201,441
  6




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Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Average number
of common shares
outstanding
    
    
    59,416
    
    
    
    60,002
    
    
    
    58,494
    
    
    
    60,435Incremental shares
from assumed
exercises of stock
options
    
    
    1,314
    
    
    
    1,652
    
    
    
    1,215
    
    
    
    1,474Average number of
common shares and
common share
equivalents
outstanding
    
    
    60,730
    
    
    
    61,654
    
    
    
    59,709
    
    
    
    61,909
   7




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Thirty Nine Weeks Ended September 24, 2005Carrier
    
    
    Global Logistics
    
    
    Insurance
    
    
    Other
    
    
    TotalExternal revenue
    
    $
    1,197,614
    
    
    $
    496,769
    
    
    $
    23,003
    
    
    
    
    
    
    $
    1,717,386Investment income
    
    
    
    
    
    
    
    
    
    
    2,087
    
    
    
    
    
    
    
    2,087Internal revenue
    
    
    43,587
    
    
    
    1,304
    
    
    
    24,440
    
    
    
    
    
    
    
    69,331Operating income
    
    
    113,960
    
    
    
    33,958
    
    
    
    17,697
    
    
    $
    (37,428
    )
    
    
    128,187Goodwill
    
    
    20,496
    
    
    
    10,638
    
    
    
    
    
    
    
    
    
    
    
    31,134
 Thirty Nine Weeks Ended September 25, 2004Carrier
    
    
    Global Logistics
    
    
    Insurance
    
    
    Other
    
    
    TotalExternal revenue
    
    $
    1,054,016
    
    
    $
    353,794
    
    
    $
    22,402
    
    
    
    
    
    
    $
    1,430,212Investment income
    
    
    
    
    
    
    
    
    
    
    879
    
    
    
    
    
    
    
    879Internal revenue
    
    
    32,425
    
    
    
    4,026
    
    
    
    24,206
    
    
    
    
    
    
    
    60,657Operating income
    
    
    91,631
    
    
    
    14,290
    
    
    
    7,164
    
    
    $
    (34,262
    )
    
    
    78,823Goodwill
    
    
    20,496
    
    
    
    10,638
    
    
    
    
    
    
    
    
    
    
    
    31,134
 Thirteen Weeks Ended September 24, 2005Carrier
    
    
    Global Logistics
    
    
    Insurance
    
    
    Other
    
    
    TotalExternal revenue
    
    $
    414,093
    
    
    $
    254,181
    
    
    $
    7,796
    
    
    
    
    
    
    $
    676,070Investment income
    
    
    
    
    
    
    
    
    
    
    852
    
    
    
    
    
    
    
    852Internal revenue
    
    
    31,947
    
    
    
    416
    
    
    
    6,592
    
    
    
    
    
    
    
    38,955Operating income
    
    
    43,027
    
    
    
    24,446
    
    
    
    6,069
    
    
    $
    (14,505
    )
    
    
    59,037
 Thirteen Weeks Ended September 25, 2004Carrier
    
    
    Global Logistics
    
    
    Insurance
    
    
    Other
    
    
    TotalExternal revenue
    
    $
    368,821
    
    
    $
    150,507
    
    
    $
    7,555
    
    
    
    
    
    
    $
    526,883Investment income
    
    
    
    
    
    
    
    
    
    
    337
    
    
    
    
    
    
    
    337Internal revenue
    
    
    21,150
    
    
    
    580
    
    
    
    6,334
    
    
    
    
    
    
    
    28,064Operating income
    
    
    36,492
    
    
    
    8,277
    
    
    
    4,126
    
    
    $
    (13,229
    )
    
    
    35,666
   8




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Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income, as reported
    
    $
    76,996
    
    
    $
    47,306
    
    
    $
    35,625
    
    
    $
    21,614Deduct:Total stock-based employee
compensation expense
determined under the fair
value based method for all
awards, net of related
income tax benefits
    
    
    (3,178
    )
    
    
    (3,060
    )
    
    
    (1,056
    )
    
    
    (944
    )Pro forma net income
    
    $
    73,818
    
    
    $
    44,246
    
    
    $
    34,569
    
    
    $
    20,670Earnings per common share:As reported
    
    $
    1.30
    
    
    $
    0.79
    
    
    $
    0.61
    
    
    $
    0.36Pro forma
    
    $
    1.24
    
    
    $
    0.74
    
    
    $
    0.59
    
    
    $
    0.34Diluted earnings per share:As reported
    
    $
    1.27
    
    
    $
    0.77
    
    
    $
    0.60
    
    
    $
    0.35Pro forma
    
    $
    1.22
    
    
    $
    0.73
    
    
    $
    0.58
    
    
    $
    0.34
    Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income
    
    $
    76,996
    
    
    $
    47,306
    
    
    $
    35,625
    
    
    $
    21,614Unrealized holding gains (losses) on available
-for-sale investments, net of income taxes
    
    
    (229
    )
    
    
    (130
    )
    
    
    (120
    )
    
    
    8Comprehensive income
    
    $
    76,767
    
    
    $
    47,176
    
    
    $
    35,505
    
    
    $
    21,622
     9




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Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Carrier Segment:External revenue generated through (in thousands):Independent Contractors
    
    $
    906,581
    
    
    $
    879,730
    
    
    $
    307,359
    
    
    $
    301,639Other third party truck capacity providers
    
    
    291,033
    
    
    
    174,286
    
    
    
    106,734
    
    
    
    67,182$
    1,197,614
    
    
    $
    1,054,016
    
    
    $
    414,093
    
    
    $
    368,821Revenue per revenue mile
    
    $
    1.85
    
    
    $
    1.76
    
    
    $
    1.92
    
    
    $
    1.78Revenue per load
    
    $
    1,484
    
    
    $
    1,351
    
    
    $
    1,545
    
    
    $
    1,424Average length of haul (miles)
    
    
    803
    
    
    
    766
    
    
    
    806
    
    
    
    798Number of loads
    
    
    807,000
    
    
    
    780,000
    
    
    
    268,000
    
    
    
    259,000Global Logistics Segment:External revenue generated through (in thousands):Independent Contractors (1)
    
    $
    91,508
    
    
    $
    72,066
    
    
    $
    56,173
    
    
    $
    38,178Other third party truck capacity providers
    
    
    285,369
    
    
    
    201,882
    
    
    
    130,704
    
    
    
    83,104Rail, air, ocean and bus carriers (2)
    
    
    119,892
    
    
    
    79,846
    
    
    
    67,304
    
    
    
    29,225$
    496,769
    
    
    $
    353,794
    
    
    $
    254,181
    
    
    $
    150,507Revenue per load (3)
    
    $
    1,489
    
    
    $
    1,399
    
    
    $
    1,498
    
    
    $
    1,443Number of loads (3)
    
    
    241,000
    
    
    
    233,000
    
    
    
    83,000
    
    
    
    85,000





|    |  |                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) |  | Includes revenue from freight hauled by carrier segment Independent Contractors for global
logistics customers.                                                                                                                                
|   
|(2) |  | Included in the 2005 thirty nine and thirteen week periods was $24,471,000 of revenue
attributable to buses provided under a contract between Landstar Express America, Inc. and the
United States Federal Aviation Administration (the FAA).
|   
|(3) |  | Number of loads and revenue per load exclude the effect of revenue derived from emergency
transportation services provided under the FAA contract.                                                                                             



Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004Independent Contractors
    
    
    7,846
    
    
    
    7,758Other third party truck capacity providers:Approved and active (1)
    
    
    13,328
    
    
    
    10,324Other approved
    
    
    8,178
    
    
    
    6,87021,506
    
    
    
    17,194Total available truck capacity providers
    
    
    29,352
    
    
    
    24,952Number of trucks provided by Independent Contractors
    
    
    8,581
    
    
    
    8,644





|    |  |                                                                                                                                                      
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) |  | Active refers to other third party truck capacity providers who moved at least one load in the
180 days immediately preceding the fiscal quarter end.

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The following table sets forth the percentage relationships of income and expense items to revenue
for the periods indicated:


Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 24,
    
    
    Sept. 25,
    
    
    Sept. 24,
    
    
    Sept. 25,2005
    
    
    2004
    
    
    2005
    
    
    2004Revenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Investment income
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Costs and expenses:Purchased transportation
    
    
    74.9
    
    
    
    74.6
    
    
    
    74.4
    
    
    
    74.5Commissions to agents
    
    
    7.9
    
    
    
    7.9
    
    
    
    7.9
    
    
    
    8.1Other operating costs
    
    
    1.6
    
    
    
    1.9
    
    
    
    1.6
    
    
    
    1.6Insurance and claims
    
    
    2.0
    
    
    
    3.3
    
    
    
    1.8
    
    
    
    2.6Selling, general and administrative
    
    
    5.5
    
    
    
    6.2
    
    
    
    5.1
    
    
    
    5.8Depreciation and amortization
    
    
    0.7
    
    
    
    0.7
    
    
    
    0.6
    
    
    
    0.7Total costs and expenses
    
    
    92.6
    
    
    
    94.6
    
    
    
    91.4
    
    
    
    93.3Operating income
    
    
    7.5
    
    
    
    5.5
    
    
    
    8.7
    
    
    
    6.8Interest and debt expense
    
    
    0.2
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.2Income before income taxes
    
    
    7.3
    
    
    
    5.4
    
    
    
    8.6
    
    
    
    6.6Income taxes
    
    
    2.8
    
    
    
    2.1
    
    
    
    3.3
    
    
    
    2.5Net income
    
    
    4.5
    %
    
    
    3.3
    %
    
    
    5.3
    %
    
    
    4.1
    %








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16




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18




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Recently Issued Accounting Standards Not Currently Effective



















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Total Number of Shares
    
    Maximum Number ofPurchased as Part of
    
    Shares that May Yet BeTotal Number of
    
    Average Price Paid
    
    Publicly Announced
    
    Purchased Under theFiscal Period
    
    Shares Purchased
    
    Per Share
    
    Programs
    
    ProgramsJune 25, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    976,900June 26, 2005 - July 23, 2005
    
    
    204,773
    
    
    $
    33.21
    
    
    
    204,773
    
    
    
    772,127July 24, 2005 - August 20, 2005
    
    
    246,900
    
    
    $
    32.97
    
    
    
    246,900
    
    
    
    2,525,227August 21, 2005 - September
24, 2005
    
    
    0
    
    
    
    
    
    
    
    0
    
    
    
    2,525,227Total
    
    
    451,673
    
    
    $
    33.08
    
    
    
    451,673
      21




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Exhibit No.
    
    Description(10)
    
    Material contracts10.1*
    
    Solicitation, Offer and Award Agreement, dated October 1, 2002, as
amended December 20, 2002, January 31, 2003,
January 1, 2004, August 26, 2004, August 24, 2005 and
September 12, 2005, between the United States Department of
Transportation/Federal Aviation Administration and Landstar Express
America, Inc.(31)
    
    Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002:31.1 *
    
    Chief Executive Officer certification, as adopted pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.31.2 *
    
    Chief Financial Officer certification, as adopted pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.(32)
    
    Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.1 **
    
    Chief Executive Officer certification pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.32.2 **
    
    Chief Financial Officer certification pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
 
 *
    
    Filed herewith**
    
    Furnished herewith 23




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LANDSTAR SYSTEM, INC.Date: November 3, 2005
    /s/ Henry H. GerkensHenry H. Gerkens
President and Chief Executive OfficerDate: November 3, 2005
    /s/ Robert C. LaRoseRobert C. LaRoseExecutive Vice President and Chief Financial
Officer 24