Landstar System Inc. Watchdog Report ™ LSTR (NASDAQ Global) | CIK:853816 | United States | SEC llings The new model for duciary analysis Oct 1, 2021 Jan 1, 2020 Jan 1, 2016 RECENT PERIOD HISTORICAL PERIOD Key Facts 10-Q led on Jul 30, 2021 for period ending Jun 2021 Business address: Jacksonville, Florida, United States Reporting Irregularities RECENT HISTORICAL Industry: General Freight Trucking, Long-Distance, Truckload (NAICS Financial Restatements 484121) SEC ler status: Large Accelerated Filer as of Jun 2021 Revisions Index member: S&P 400, Russell 1000 Out of Period Adjustments Market Cap: $6.04b as of Sep 30, 2021 Late Filings Annual revenue: $4.13b as of Dec 26, 2020 Impairments Corporate Governance Changes in Accounting Estimates CEO: James B. Gattoni since 2014 Disclosure Controls CFO: Federico L. Pensotti since 2021 1st level Internal Controls

Board Chairman: Diana M. Murphy since 2015 Critical / Key Audit Matters Audit Committee Chair: NOT AVAILABLE Anomalies in the Numbers 2nd level RECENT HISTORICAL Benford's Law Auditor: KPMG LLP since 1988 Outside Counsel (most recent): Scopelitis Garvin Light Hanson & Feary Beneish M-Score PC Accounting Disclosure Complexity 3rd level Securities & Exchange Commission Concerns RECENT HISTORICAL SEC Reviewer: (unknown) 4th level SEC Oversight

SEC Letters to Management

Revenue Recognition

Non-GAAP Measures Litigation & External Pressures RECENT HISTORICAL Signicant Litigation

Securities Class Actions

Shareholder Activism

Watchdog Research, Inc., offers both individual and group subscriptions, Cybersecurity data feeds and/or custom company reports to our subscribers. Management Review Subscribe: We have delivered 300,000 public company reports to over RECENT HISTORICAL 27,000 individuals, from over 9,000 investment rms and to 4,000+ public CEO Changes company corporate board members. CFO Changes

How to analyze this company's Watchdog Insider Sales Report? Skip to the last page Pledged Securities

Information in this report is effective Oct 1, 2021 and is taken from the Mergers & Acquisitions company's public nancial and regulatory lings. Latest ling 10-Q led Sales of Assets 07/30/2021. Over 75 accounting and data analysts scrutinize and review crucial information, footnotes, disclosures, etc., from these lings. Material Auditor Assessment facts are captured and processed using our proprietary methods which RECENT HISTORICAL identify key risk factors our readers need to know. Each Watchdog Report Auditor Changes represents 30 or more hours of analysis and processing. Auditor Experience

Accounting and nancial disclosure data from Audit Analytics. Auditor Tenure Executive compensation data from Shore Group and Intrinio. Data from Sharadar. Audit Fees Data from Barchart via Quandl. Non-Audit Fees Data from Exchange Data International via Quandl.

Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Overview Reporting Irregularities Anomalies in the Numbers SEC Concerns Litigation & External Pressures Management Review Auditor Assessment Peer Group

Overview

Price and Volume History

This graph shows the price and trading history for Landstar. Warning signs and red ags are marked on the graph according to their disclosure dates.

1 Jul 30, 2021 - Change in Accounting Estimates 20 Feb 21, 2019 - Insider Sale

2 May 4, 2021 - Insider Sale 21 Feb 4, 2019 - Insider Sale

3 Feb 23, 2021 - Impairment 22 Feb 4, 2019 - Insider Sale

4 Feb 23, 2021 - Change in Accounting Estimates 23 Nov 9, 2018 - SEC letters to management

5 Feb 23, 2021 - Critical / Key Audit Matters 24 Nov 9, 2018 - Revenue Recognition

6 Nov 2, 2020 - Change in CFO 25 Aug 3, 2018 - Change in Accounting Estimates

7 Oct 30, 2020 - Change in Accounting Estimates 26 May 4, 2018 - Change in Accounting Estimates

8 Oct 29, 2020 - Insider Sale 27 Nov 7, 2017 - Insider Sale

9 Oct 28, 2020 - Insider Sale 28 Aug 4, 2017 - Change in Accounting Estimates

10 Jul 31, 2020 - Change in Accounting Estimates 29 May 5, 2017 - Change in Accounting Estimates

11 Feb 21, 2020 - Change in Accounting Estimates 30 Mar 16, 2017 - Insider Sale

12 Feb 21, 2020 - Critical / Key Audit Matters 31 Feb 24, 2017 - Change in Accounting Estimates

13 Feb 7, 2020 - Insider Sale 32 Nov 14, 2016 - Insider Sale

14 Feb 7, 2020 - Insider Sale 33 Nov 14, 2016 - Insider Sale

15 Nov 1, 2019 - Change in Accounting Estimates 34 Oct 28, 2016 - Change in Accounting Estimates

16 Aug 2, 2019 - Change in Accounting Estimates 35 Jul 29, 2016 - Change in Accounting Estimates

17 Jun 11, 2019 - Lawsuit: Hany Tanious v. Landstar System Inc et al 36 Apr 29, 2016 - Change in Accounting Estimates

18 May 3, 2019 - Change in Accounting Estimates 37 Apr 18, 2016 - Cybersecurity

19 Feb 22, 2019 - Insider Sale 38 Feb 19, 2016 - Change in Accounting Estimates

Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Notications

Important notications related to the company are listed here. Notications may come from the SEC, exchanges such as the NYSE or NASDAQ, or Watchdog Research. Examples of notications include announcements of bankruptcy proceedings, company name changes, and noncompliance with SEC regulations or exchange rules.

There are no notications for Landstar at least since 2016.

Peer Group

Peer groups are used by companies to benchmark executive compensation and performance. Each company identies its own peer group. Peer groups vary from company to company.

Peer Group Companies Who Named Landstar as a Peer

Company Ticker Market Company Ticker Market Cap Cap

Old Dominion Freight Line Inc. ODFL $33.1b Old Dominion Freight Line Inc. ODFL $33.1b

Kansas City Southern KSU $24.6b of Washington EXPD $20.2b Inc.

J.B. Hunt Transport Services, Inc. JBHT $17.6b J.B. Hunt Transport Services, Inc. JBHT $17.6b

C.H. Robinson Worldwide Inc. CHRW $11.5b Knight- Holdings KNX $8.55b Inc. Knight-Swift Transportation Holdings KNX $8.55b Inc. Aramark ARMK $8.39b

Alaska Air Group, Inc. ALK $7.34b , Inc. ALK $7.34b

Saia Inc. $6.27b Saia Inc. SAIA $6.27b

Landstar System Inc. LSTR $6.04b Landstar System Inc. LSTR $6.04b

Ryder System Inc. R $4.45b , Inc. SNDR $4.04b

Schneider National, Inc. SNDR $4.04b Brinks Co. BCO $3.15b

Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Peer Flag Comparison

The return to a company’s stock is not the only measure of executive performance. Ethics matter, and growth can quickly reverse and gains evaporate if a company’s accounting and nancial reporting processes are not fundamentally sound and trustworthy. How does Landstar's accounting quality compare to its peer group?

LSTR PEER GROUPFLAGS LSTR PEER GROUPFLAGS Reporting Irregularities Litigation & External Pressures

Financial Restatements 9 Signicant Litigation 2 1 6

Revisions 8 1 Securities Class Actions 7 2

Out of Period Adjustments 8 1 Shareholder Activism 9

Impairments 3 6 Cybersecurity 7 2

Changes in Accounting Estimates 5 4 Management Review

Disclosure Controls 2 7 CEO Changes 2 4 3

Internal Controls 9 CFO Changes 2 3 4

Critical / Key Audit Matters 6 3 Insider Sales 1 2 6

Pledged Securities 6 1 2 Anomalies in the Numbers

Benford's Law 5 4 Mergers & Acquisitions 5 3 1

Beneish M-Score 5 4 Sales of Assets 9

Accounting Disclosure Complexity 8 1 Auditor Assessment

Auditor Changes 6 3 Securities & Exchange Commission Concerns

SEC Oversight 9 Auditor Experience 9

SEC Letters to Management 9 Auditor Tenure 7 2

Revenue Recognition 8 1 Audit Fees 1 8

Non-GAAP Measures 9 Non-Audit Fees 7 2

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