Tuesday February 10, 8:32 am Eastern Time
Company Press Release
Expeditors Announces Record Quarterly Earnings Increase of 73%
SEATTLE--(BUSINESS WIRE)--Feb. 10, 1998--Expeditors International of Washington Inc. (NASDAQ:EXPD - news) today announced record quarterly net earnings of $12,862,000 for the fourth quarter of 1997, compared with $7,423,000 for the same quarter of 1996, an increase of 73%.
Net revenues for the fourth quarter of 1997 increased 45% to $84,457,000 as compared with $58,240,000 reported for the fourth quarter of 1996. Total revenues and operating income were $270,149,000 and $19,560,000 in 1997 compared with $221,320,000 and $11,412,000 for the same quarter of 1996, increases of 22% and 71%, respectively. Net earnings per share for the fourth quarter were $.48 as compared with $.29 for the same quarter in 1996, an increase of 66%. The company also reported that same store net revenues and operating income increased 30% and 55%, respectively, for the fourth quarter of 1997 when compared with 1996.
For the year ended Dec. 31, 1997, net earnings rose to $38,411,000 from $24,263,000 in 1996, an increase of 58%. Net revenues for the year increased to $290,524,000 from $202,335,000 for 1996, up 44%. Total revenues and operating income for the year were $954,002,000 and $59,915,000 in 1997 compared with $730,088,000 and $37,425,000 for the same period in 1996, increases of 31% and 60%, respectively. Net earnings per share for 1997 were $1.46 as compared with $.95 for the same period of 1996, an increase of 54%.
''The fourth quarter turned out better than we expected,'' stated Peter J. Rose, chairman and chief executive officer. ''We obviously were not significantly affected by Asian currency woes nor El Nino, for that matter. Our people came through the biggest peak season in quite some time with flying colors, and our customers were quite understanding. We thank each of them for their continued support and loyalty. There are no guarantees in this service business. We have to 'earn' our customers each and every day. These results demonstrate that well-balanced operations built around a strong technologically-linked global network of highly-trained and properly motivated professionals can overcome large obstacles.''
''Our stock may have taken a licking, but we kept on ticking. What will we do with these profits? The same thing we've always done -- we will be investing in our future by continuing to upgrade systems, improve facilities, enhance training, and develop our people,'' Rose concluded.
Expeditors is a global logistics company. Headquartered in Seattle, the company employs trained professionals in 128 offices and 14 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.
Additional information is available upon request or via the Internet at expd.com.
Expeditors International of Washington, Inc. Financial Highlights Three months and year ended December 31, 1997 and 1996 Unaudited (in 000's except share data)
Three months ended
Dec. 31,
1997 1996 % Increase
Revenues 270,149 221,320 22%
Net revenues 84,457 58,240 45%
Operating income 19,560 11,412 71%
Net earnings 12,862 7,423 73%
Diluted earnings per
common share .48 .29 66%
Weighted ave. shares 26,563,429 25,862,840
Year ended
Dec. 31,
1997 1996 % Increase
Revenues 954,002 730,088 31%
Net revenues 290,524 202,335 44%
Operating income 59,915 37,425 60%
Net earnings 38,411 24,263 58%
Diluted earnings per
common share 1.46 .95 54%
Weighted ave. shares 26,323,522 25,644,296
ADDITIONAL FINANCIAL INFORMATION AVAILABLE UPON REQUEST
No New Offices Opened in the 4th Quarter of 1997
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
Dec. 31 Dec. 31,
1997 1996
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 42,094 $ 36,966
Short-term investments 214 357
Accounts receivable, net 220,341 168,763
Deferred Federal and state taxes 4,296 4,854
Other current assets 6,399 4,503
Total current assets 273,344 215,443
Property and equipment, net 66,550 46,246
Other assets 16,122 10,297
$356,016 $271,986
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings 2,145 3,452
Accounts payable 157,820 101,670
Income taxes 7,181 5,659
Other current liabilities 18,946 21,194
Total current liabilities 186,092 131,975
Shareholders' equity:
Preferred stock, par value
$.01 per share
Authorized 2,000,000 shares;
none issued -- --
Common stock, par value
$.01 per share.
Authorized 80,000,000 shares;
issued and outstanding
24,546,380 shares at Dec. 31,
1997 and 24,212,946 at Dec. 31,
1996 245 242
Additional paid-in capital 15,534 13,179
Retained earnings 159,225 123,258
Equity adjustments from foreign
currency translation (5,080) 3,332
Total shareholders' equity 169,924 140,011
$356,016 $271,986
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
Three months ended Year ended
Dec. 31 Dec. 31
1997 1996 1997 1996
Revenues:
Airfreight $ 189,421 161,452 659,481 512,104
Ocean freight and
ocean services 46,549 39,943 180,555 148,907
Customs brokerage
and import
services 34,179 19,925 113,966 69,077
Total revenues 270,149 221,320 954,002 730,088
Operating expenses:
Airfreight
consolidation 152,592 134,251 534,699 417,150
Ocean freight
consolidation 33,100 28,829 128,779 110,603
Salaries and
related costs 42,194 30,845 153,196 108,797
Rent 3,157 2,121 10,806 8,279
Depreciation and
amortization 3,237 2,248 11,159 8,147
Selling and
promotion 3,855 3,271 13,469 10,409
Other 12,454 8,343 41,979 29,278
Total operating
expenses 250,589 209,908 894,087 692,663
Operating income 19,560 11,412 59,915 37,425
Interest expense ( 134) --- ( 358) ( 163)
Interest income 577 568 2,096 2,264
Other, net 1,089 ( 20) 918 58
Other income, net 1,532 548 2,656 2,159
Earnings before
income taxes 21,092 11,960 62,571 39,584
Income tax expense 8,230 4,537 24,160 15,321
Net earnings $ 12,862 $ 7,423 $ 38,411 $ 24,263
Diluted earnings
per common share $ .48 $ .29 $ 1.46 $ .95
Weighted average
number of common
shares 26,563,429 25,862,840 26,323,522 25,644,296
Certain 1996 amounts have been reclassified to conform to the 1997
presentation
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Contact:
Expeditors International of Washington Inc.
R. Jordan Gates, 206/674-3427 |
