Eagle USA Airfreight, Inc. Reports Third Quarter Revenues and Earnings
Third Quarter Highlights: * Revenues up 50% * Operating income increases by 33% * Net income
growth exceeds 30% for tenth consecutive quarter; increases by 38% * Two acquisitions
completed and integrated
Quarter Ended % Financial & Operating Data 6/30/98 6/30/97 Change Revenues (000's) $107,050
$71,301 50% Operating Income (000's) $8,472 $6,352 33% Net Income (000's) $5,645 $4,104 38%
Basic Earnings Per Share $0.30 $0.23 30% Diluted Earnings Per Share $0.29 $0.22 32%
Operating Data Freight Forwarding Shipments 270,955 183,085 48% Average Weight (lbs.) Per
Shipment 634 598 6% Freight Forwarding Terminals 66 57 16% Local Delivery Locations 58 43
35%
"We are very pleased with our results for the third quarter. Both operating income and net
income increased greater than 33 percent during the third quarter compared to last year. These
results reflect the strong internal growth rate of the Company's North American operations,
combined with the new international growth opportunities resulting from the April 1998
completion and integration of the Latin America and United Kingdom acquisitions," said James
R. Crane, Chairman and Chief Executive Officer.
HOUSTON, July 28 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA - news) today announced increased
revenues and earnings for the third quarter ended June 30, 1998. Revenues for the third quarter increased 50 percent to
$107.1 million from $71.3 million in the same period of fiscal 1997. Net income for the quarter totaled $5.6 million, a 38
percent increase over $4.1 million in the third quarter of fiscal 1997. Basic earnings per share of $0.30 increased 30 percent
from $0.23 in the same period of fiscal 1997. Diluted earnings per share of $0.29 increased 32 percent from $0.22 in the
same period of fiscal 1997. Same terminal revenue growth was 26 percent during the third quarter.
Revenues for the nine months ended June 30, 1998 increased 47 percent to $295.2 million from $200.4 million in the same
period of fiscal 1997. Net income totaled $15.5 million, a 34 percent increase over $11.6 million in the nine months of fiscal
1997. Basic earnings per share of $0.83 increased 28 percent from $0.65 in the same period of fiscal 1997. Diluted earnings
per share of $0.80 increased 29 percent from $0.62 in the same period of fiscal 1997. Cash flows from operating activities for
the nine months ended June 30, 1998 were $19.2 million compared to $1.5 million in the same period of fiscal 1997.
''We are very pleased with our results for the third quarter. Both operating income and net income increased greater than 33
percent during the third quarter compared to last year. These results reflect the strong internal growth rate of the Company's
North American operations, combined with the new international growth opportunities resulting from the April 1998
completion and integration of the Latin America and United Kingdom acquisitions,'' said James R. Crane, Chairman and Chief
Executive Officer.
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 14 percent of total revenues for the quarter, increased 150 percent in the third quarter
of fiscal 1998 over the same period in fiscal 1997. The April 1998 acquisitions of S. Boardman and Eagle Companies added
approximately $7.3 million in international revenue during the third quarter.
Excluding the effects of the two April 1998 acquisitions, gross profit and operating income as a percentage of revenues totaled
44.4 percent and 8.4 percent respectively during the quarter. Overall gross profit and operating income as a percentage of
revenues with the two acquisitions totaled 43.6 percent and 7.9 percent respectively for the quarter.
The Company continues to evaluate acquisition candidates as it pursues its global growth plans.
Continued strong marketing efforts yielded new business for the Company during the third quarter. Eagle USA signed a
three-year contract with Dayton Hudson Corporation and is handling its expedited heavy-weight traffic from its major retail
suppliers to its distribution centers throughout the United States. The Company also secured new business as an approved
heavy-weight carrier for Harley-Davidson Motor Company, World Color Press and Hershey Foods Corporation
[NYSE:HSY - news].
During July 1998, the Company opened North American terminals in Norfolk, Va., and Jackson, Miss. Management expects
to open between 4 to 5 additional North American terminals during the fourth quarter of fiscal 1998. The Company also
expects to expand its terminal base in London with a new facility opening at the Gatwick airport in September 1998.
''Looking forward, we are optimistic for a strong finish to fiscal 1998,'' continued Crane. ''Our operating model is as sound as
ever, and we continue to make the investments necessary to accommodate our strong growth and to position Eagle USA for
continued growth in 1999 and beyond.''
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 68
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 strong finish for fiscal 1998, the plans for new terminals, results and expansion
plans, future growth, global growth plans, 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, risks of international operations 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. |
