Eagle USA Expects Fourth Quarter Earnings Estimate Shortfall
HOUSTON, Sept. 8 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA - news), today announced that, based on
quarter-to-date operating results, the Company expects to report that diluted earnings per share results for the fiscal 1998
fourth quarter ended September 30 will be in the approximate range of $0.27 to $0.31. Earnings per share totaled $0.28 for
the fourth quarter of last year. Included in fiscal 1997 fourth quarter results was approximately $0.02 per share due to the
effect of the August 1997 UPS strike. The current analysts' consensus earnings estimate for the fourth quarter, according to
First Call, is $0.34 per share.
Revenues for the fourth quarter ended September 30, 1998 are expected to be in the approximate range of $118 million to
$123 million as compared to revenues of $91.4 million for the fourth quarter of fiscal 1997. The Company's 1998 fourth
quarter financial results will be reported on Thursday, November 12. Management noted that results for the three weeks
between now and the end of the quarter could cause these estimates to be further affected, either positively or negatively.
''Overall revenue growth performance remains solid. We continue to make the investments necessary to build a platform to
accommodate continued strong top-line growth, including expanding international and domestic operations, human resources
and management information personnel to position Eagle USA for continued growth in 1999 and beyond. Management is
making every effort to streamline processes and reduce expenses wherever possible,'' said James R. Crane, Chairman,
President and Chief Executive Officer. ''These investments will also ensure a continued high level of service which our existing
customer base has come to expect. Highlighting our dedication to superior customer service, Logistics Magazine has named
Eagle USA ''Best of the Best'' among airfreight forwarders in its 1998 Quest for Quality survey.''
Fiscal 1999 Outlook
Looking forward, Crane expects revenue for fiscal 1999 to be in the approximate range of $530 million to $550 million and
diluted earnings per share growth for the year to be approximately 20%. ''While we see increased investments of the type
mentioned above continuing in the short-term, we are optimistic that we will ultimately leverage these investments over a
strongly- growing revenue base.''
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 concerning Eagle USA's expected fiscal fourth quarter 1998 results, strongly-growing
revenue base, expected fiscal 1999 results, and the effects of future operating expense movements, leverage of investments, as
well as any other statements which are not historical facts, are forward looking statements. Management's estimates for
revenues and earnings for the fiscal 1998 fourth quarter and fiscal 1999 year
are subject to numerous risks and uncertainties that could cause actual
results to differ materially from these estimated results including, but not
limited to, further increases in the Company's personnel, selling, general and
administrative operating expenses, international expansion expenses, human
resources and management information personnel expenses, as well as loss of
revenues due to customer account loss or eroding general economic conditions,
competition, general economic conditions, ability to manage and continue
growth, risks of international operations, as well as other factors detailed
in Eagle's filings with the Securities and Exchange Commission. These
forward-looking statements do not reflect the potential impact of any
acquisitions, joint ventures or other structural changes in the Company's
business that may be completed after the date of this release. Actual results
could exceed or be below expected ranges.
SOURCE: Eagle USA Airfreight, Inc.
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