Tuesday August 4, 8:31 am Eastern Time
Company Press Release
Expeditors Announces Net Earnings Increase of 36%
SEATTLE--(BUSINESS WIRE)--Aug. 4, 1998--Expeditors International of Washington, Inc. (NASDAQ:EXPD - news) today announced record quarterly net earnings of $11,080,000 for the second quarter of 1998, compared with $8,174,000 for the same quarter of 1997, an increase of 36%.
Net revenues for the second quarter of 1998 increased 21% to $82,374,000 as compared with $68,169,000 reported for the second quarter of 1997. Total revenues and operating income were $241,970,000 and $16,319,000 in 1998 compared with $225,575,000 and $12,816,000 for the same quarter of 1997, increases of 7% and 27%, respectively. Diluted net earnings per share for the second quarter were $.42 as compared with $.31 for the same quarter in 1997, an increase of 35%. These results included a non-recurring gain on the sale of a building of $928,000, or $.02 per share which was reported as ''other income''. The company also reported that same store net revenues and operating income increased 19% and 30%, respectively, for the second quarter of 1998 when compared with 1997.
For the six months ended June 30, 1998, net earnings rose to $19,114,000 from $13,772,000 in 1997, an increase of 39%. Net revenues for the six months increased to $158,138,000 from $125,887,000 for 1997, up 26%. Total revenues and operating income for the six months were $465,319,000 and $29,018,000 in 1998 compared with $421,544,000 and $21,397,000 for the same period in 1997, increases of 10% and 36%, respectively. Diluted net earnings per share for the first two quarters of 1998 were $.72 as compared with $.53 for the same period of 1997, an increase of 36%. Same store net revenues and operating income increased 20 % and 33%, respectively, for the six months ended June 30 of 1998 when compared with same period of 1997.
''We are certainly satisfied with the outcome of our second quarter.'' commented Peter J. Rose, Chairman and Chief Executive Officer. ''While our airfreight net revenue growth was not as strong as other recent quarters, our growth in ocean and in customs brokerage and other import services was excellent. What these results showcase is the inherent strength in our network. Our employees are incentivized to maintain profitable operations and they have proven that this can be accomplished in less than robust global business environments. We believe that success comes from understanding customer needs and committing to meet those needs profitably by sticking to core competencies. We've created a corporate culture and designed our systems to be compatible with these objectives. It seems to work.'' Rose went on to say.
''While generally pleased with the second quarter, there were tremendous obstacles to overcome, e.g., the Lewinsky testimony, the heat wave that covered most of the U.S., the automotive strike, the Asian currency crises, the change of government in Indonesia, and the Hong Kong airport start-up woes, all of which did not materially affect us but did affect our stock. We eagerly await any forthcoming world crises for the third quarter.'' concluded Rose.
Expeditors is a global logistics company. Headquartered in Seattle, Washington, the company employs trained professionals in 133 offices and 11 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 Six months ended June 30, 1998 and 1997
Unaudited (in 000's except share data)
Three months ended Six months ended
June 30 June 30
% %
1998 1997 Increase 1998 1997 Increase
Revenues 241,970 225,575 7% 465,319 421,544 10%
Net revenues 82,374 68,169 21% 158,138 125,887 26%
Operating income 16,319 12,816 27% 29,018 21,397 36%
Net earnings 11,080 8,174 36% 19,114 13,772 39%
Diluted earnings
per share .42 .31 35% .72 .53 36%
Basic earnings per
share .45 .34 32% .78 .57 37%
Diluted weighted
average shares
outstanding 26,618,738 26,179,131 26,588,105 26,087,778
Basic weighted
average shares
outstanding 24,592,225 24,319,723 24,576,758 24,279,477
ADDITIONAL FINANCIAL INFORMATION AVAILABLE UPON REQUEST
New Offices Opened in the 2nd Quarter of 1998
North America Europe
McAllen, TX-USA Florence, Italy
Prague, Czech Republic
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
June 30, December 31,
Assets 1998 1997
(Unaudited)
Current assets:
Cash and cash equivalents $ 39,651 $ 42,094
Short-term investments 433 214
Accounts receivable, net 195,937 206,501
Deferred Federal and state taxes 4,376 4,296
Other current assets 10,935 6,399
Total current assets 251,332 259,504
Property and equipment, net 89,872 66,550
Other assets 14,984 16,122
-------- ---------
$356,188 $ 342,176
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings 1,090 2,145
Accounts payable 136,814 143,980
Income taxes 7,336 7,181
Other current liabilities 24,424 18,946
Total current liabilities 169,664 172,252
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
24,607,867 shares at June 30, 1998
and 24,546,380 at December 31, 1997 246 245
Additional paid-in capital 16,508 15,534
Retained earnings 176,617 159,225
Equity adjustments from foreign
currency translation (6,847) (5,080)
Total shareholders' equity 186,524 169,924
------- -------
$ 356,188 $ 342,176
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Airfreight $ 152,017 156,974 299,164 291,902
Ocean freight and
ocean services 54,586 42,068 99,915 81,878
Customs brokerage
and import services 35,367 26,533 66,240 47,764
Total revenues 241,970 225,575 465,319 421,544
Operating expenses:
Airfreight
consolidation 120,433 127,446 236,075 236,750
Ocean freight
consolidation 39,163 29,960 71,106 58,907
Salaries and related
costs 45,102 36,939 87,558 69,269
Rent 3,527 2,584 7,006 4,995
Depreciation and
amortization 3,610 2,662 6,874 5,044
Selling and promotion 3,562 3,228 6,980 6,108
Other 10,254 9,940 20,702 19,074
Total operating
expenses 225,651 212,759 436,301 400,147
Operating income 16,319 12,816 29,018 21,397
Interest expense ( 54) ( 33) ( 102) ( 78)
Interest income 620 617 1,059 1,099
Other, net (a) 723 (16) 657 8
Other income, net (a) 1,289 568 1,614 1,029
Earnings before
income taxes 17,608 13,384 30,632 22,426
Income tax expense 6,528 5,210 11,518 8,654
Net earnings $ 11,080 $ 8,174 $ 19,114 $ 13,772
Diluted earnings per
share $ .42 $ .31 $ .72 $ .53
Basic earnings per
share $ .45 $ .34 $ .78 $ .57
Diluted weighted
average shares
outstanding 26,618,738 26,179,131 26,588,105 26,087,778
Basic weighted average
shares outstanding 24,592,225 24,319,723 24,576,758 24,279,477
(a) Includes $928,000 gain on sale of facility which occurred in
April of 1998 Certain 1997 amounts have been reclassified to conform
to the 1998 presentation
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Contact:
Expeditors International
R. Jordan Gates, 206/674-3427
expd.com |
