agle USA Airfreight, Inc. Reports Second Quarter Revenues and
Earnings
Second Quarter Highlights: * Revenues up 47% * Operating income increases by 51% * Same
terminal revenue growth increases by 33% (A)
Quarter Ended % Financial & Operating Data 3/31/98 3/31/97 Change Revenues (000's) $90,544
$61,489 47% Operating Income (000's) $6,064 $4,025 51% Net Income (000's) $3,989 $2,948 35%
Diluted Earnings Per Share $0.21 $0.16 31%
Operating Data Freight Forwarding Shipments 240,361 174,059 38% Average Weight (lbs.) Per
Shipment 555 562 (1%) Freight Forwarding Terminals 60 53 13% Local Delivery Locations 54 40
35%
"Strong same terminal revenue growth during the second quarter drove overall revenue growth
within our core domestic freight forwarding business. We also continue to see strong growth at
our newer terminals and continue to win significant new customers. Our international freight
forwarding expansion plans have been strongly enhanced by the two recently-completed
acquisitions related to our international forwarding business in Latin America and the United
Kingdom." -- James R. Crane, Chairman and Chief Executive Officer.
(A) Percentage increase in revenues for those terminals open as of the beginning of the prior fiscal
year.
HOUSTON, April 28 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA - news) today announced increased
revenues and earnings for the second quarter ended March 31, 1998, primarily driven by the rapid expansion of its core freight
forwarding business and strong increases in the number of shipments and the total weight of cargo shipped.
Revenues for the second quarter increased 47 percent to $90.5 million from $61.5 million in the same period of fiscal 1997.
Net income for the quarter totaled $4.0 million, a 35 percent increase over $2.9 million in the second quarter of fiscal 1997.
Diluted earnings per share of $0.21 increased 31 percent from $0.16 in the same period of fiscal 1997. Same terminal revenue
growth for the second quarter was 33 percent, fueled primarily by strong marketing efforts at the terminal level.
Revenues for the six months ended March 31, 1998 increased 46 percent to $188.2 million from $129.1 million in the same
period of fiscal 1997. Net income totaled $9.9 million, a 32 percent increase over $7.5 million in the six months of fiscal 1997.
Diluted earnings per share of $0.52 increased 30 percent from $0.40 in the same period of fiscal 1997. Cash flows from
operating activities for the six months ended March 31, 1998 were $15.8 million compared to a deficit of $1.9 million in the
same period of fiscal 1997.
Second quarter gross profit margin was 44.1 percent of revenues versus 43.4 percent in the second quarter of 1997. The
primary reasons for margin improvement were increased air freight shipping volumes -- the number of shipments increased 38
percent and the total weight of cargo shipped increased 36 percent over second quarter 1997 -- and the continued expansion
of the Company's local pick-up and delivery operations, which enabled the Company to capture margins previously paid to
third parties.
''Strong same terminal revenue growth during the second quarter drove overall revenue growth within our core domestic
freight forwarding business,'' said James R. Crane, Chairman and Chief Executive Officer. ''We also continue to see strong
growth at our newer terminals and continue to win significant new customers.
''Our international freight forwarding expansion plans have been strongly enhanced by the two recently-completed acquisitions
related to our international forwarding business in Latin America and the United Kingdom.''
During the second quarter, the Company was recognized as the Transportation Supplier of the Year for Nokia Mobile
Phones, Inc.'s Distribution Center. In addition, the Company received a two-year contract extension from Nokia, Inc., which
includes servicing Nokia Mobile Phones as well as Nokia Telecommunications. Other contract extensions were awarded by
IBM, Time Warner and 3M. The Company also added significant new customers during the quarter, including Cargill Inc. and
H.B. Fuller Company.
During April 1998, the Company opened North American terminals in Wichita, Kansas; Tampa, Florida and Montreal,
Canada. Management expects to open between ten and twelve additional North American terminals over the next two
quarters. During April 1998, the Company acquired its first company-owned overseas facilities through its acquisition of S.
Boardman Air Services Limited, a full service international freight forwarder with facilities in London, Manchester and
Birmingham, England.
Crane also noted that continued strong growth in international sales is helping fuel overall results. The weight of international
shipments is typically 2-3 times that of domestic shipments, and as a result, generate greater revenue per shipment.
International sales, which accounted for 8 percent of total revenues for the quarter, increased 64 percent in the second quarter
of fiscal 1998 over the same period in fiscal 1997. The April 1998 acquisitions of S. Boardman and Eagle Companies are
expected to add approximately $33 million in international revenue over the next twelve months.
Eagle USA Airfreight's dedication to providing superior flexibility and fewer shipping restrictions on a price competitive basis
has made it a leading provider of airfreight forwarding and other transportation and logistics services. Its network of 66
terminals features state-of-the-art information systems to maximize cargo management efficiency and customer satisfaction. The
Company's shares are traded on the Nasdaq National Market under the symbol ''EUSA.''
The statements in this press release regarding the plans for new terminals, future international revenues, results and expansion
plans, future growth, future business, operations or results and any other statements which are not historical facts are forward
looking statements. Such statements involve risks and uncertainties, including, but not limited to, competition, general economic
conditions, ability to manage and continue growth and other factors detailed in the Company's filings with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated. |
