Eagle USA Airfreight, Inc. Reports Fourth Quarter Revenues and Earnings
Full Year and Fourth Quarter Highlights: -- Fiscal year 1998 revenues and earnings increased 43% and 25%, respectively -- Fourth quarter revenues and shipments increased 43% and 40%, excluding the effect of the August 1997 UPS strike -- Cost control measures underway
Quarter Ended % Financial & Operating Data 9/30/98 9/30/97 Change Revenues (000's) $121,844 $91,392 33% Operating Income (000's) Net Income (000's) $8,335 $8,124 3% $5,508 $5,232 5% Basic Earnings Per Share $0.29 $0.29 0% Diluted Earnings Per Share $0.28 $0.28 0%
Operating Data Freight Forwarding Shipments 300,984 290,744 4% Average Weight (lbs.) Per Shipment 687 434 58% Freight Forwarding Terminals 71 60 18% Local Delivery Locations 63 44 43%
"We are very pleased with our full year results for the year ended September 30, 1998. Revenues and net income increased greater than 43 percent and 25 percent, respectively, during the 1998 fiscal year compared to last year. With cash balances of $49.7 million at year-end and no long-term debt, we are in a very strong financial position. However, our fourth quarter results were disappointing, due in part to certain operating expense issues. We are aggressively pursuing measures to bring operating costs in line by streamlining the operations of our airfreight and local delivery units as well as various other cost containment initiatives. Our business model continues to work very well and our service to our customers remains excellent as evidenced by our continued strong revenue growth," said James R. Crane, Chairman and Chief Executive Officer.
HOUSTON, Nov. 12 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA - news) today announced increased revenues and earnings for the fourth quarter ended September 30, 1998. Revenues for the fourth quarter increased 33 percent to $121.8 million from $91.4 million in the same period of fiscal 1997. Net income for the quarter totaled $5.5 million, a 5 percent increase over $5.2 million in the fourth quarter of fiscal 1997. Diluted earnings per share for the quarter was $0.28 compared to $0.28 in the same period of fiscal 1997.
The results for the prior year include certain nonrecurring business generated by the UPS strike. Adjusting for this effect, this year's fourth quarter revenue and net income increased 43 percent and 12 percent, respectively. Same terminal revenue growth was 15 percent during the fourth quarter. After adjusting for the effect of the UPS strike, same terminal revenue growth was 24 percent.
Revenues for the year ended September 30, 1998 increased 43 percent to $417.1 million from $291.8 million in the same period of fiscal 1997. Net income totaled $21.0 million, a 25 percent increase over $16.8 million in fiscal 1997. Diluted earnings per share of $1.09 increased 21 percent from $0.90 in fiscal 1997. Same terminal revenue growth was 25 percent for fiscal year 1998. After adjusting for the effect of the UPS strike, same terminal revenue growth was 28 percent for fiscal year 1998.
''We are very pleased with our full year results for the year ended September 30, 1998,'' said James R. Crane, Chairman and Chief Executive Officer. ''Revenues and net income increased greater than 43 percent and 25 percent, respectively, during the 1998 fiscal year compared to last year. With cash balances of $49.7 million at year-end and no long-term debt, we are in a very strong financial position. However, our fourth quarter results were disappointing, due in part to certain operating expense issues. We are aggressively pursuing measures to bring operating costs in line by streamlining the operations of our airfreight and local delivery units as well as other cost containment initiatives. Our business model continues to work very well and our service to our customers remains excellent as evidenced by our continued strong revenue growth.''
Cash flows from operating activities for the year ended September 30, 1998 were $24.5 million compared to $921,000 in fiscal 1997, due in part to improved collection efforts. Cash flows from operating activities for the year ended September 30, 1998 exceeded 116 percent of fiscal 1998 net income.
Crane noted that continued strong growth in international sales helped fuel overall results. International sales, which accounted for 15 percent of total revenues for the quarter, increased 177 percent in the fourth quarter of fiscal 1998 over the same period in fiscal 1997. The April 1998 acquisitions of S. Boardman and Eagle Companies added approximately $6.7 million in international revenue during the fourth quarter and $14.0 million in international revenues for the last six months of fiscal year 1998.
The Company continues to evaluate acquisition candidates as it pursues its global growth plans.
''Looking ahead to fiscal 1999, we will focus on cost control measures without sacrificing service to our customers,'' continued Crane. ''We plan to continue our strong marketing efforts and our commitment to outstanding customer service. Additionally, we plan to continue expansion of our domestic and international operations during fiscal 1999.''
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 71 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, results and expansion plans, future growth, global growth plans, effect of cost control measures, 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.
For more information about EUSA:
Visit EUSA on the Internet at eagleusa.com Contact EUSA Investor Relations via the Internet at mslaught@eagleusa.com Or by telephone at 281-618-3428, Michael Slaughter, Director of Investor Relations. |
