Expeditors International of Washington, 2nd97qer

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Expeditors International of Washington, 2nd97qer

  1. 1. EARNINGS RELEASE By: Expeditors International of Washington, Inc. 999 Third Avenue, Suite 2500 Seattle, Washington 98104 CONTACT: R. Jordan Gates Chief Financial Officer (206) 674-3427 FOR IMMEDIATE RELEASE EXPEDITORS ANNOUNCES RECORD QUARTER; NET EARNINGS INCREASE 52% SEATTLE, WASHINGTON - August 5, 1997, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings of $8,174,000 for the second quarter of 1997, compared with $5,371,000 for the same quarter of 1996, an increase of 52%. Net revenues for the second quarter of 1997 increased 45% to $68,169,000 as compared with $47,130,000 reported for the second quarter of 1996. Total revenues and operating income were $225,575,000 and $12,816,000 in 1997 compared with $166,206,000 and $8,381,000 for the same quarter of 1996, increases of 36% and 53%, respectively. Net earnings per share for the second quarter were $.31 as compared with $.21 for the same quarter in 1996, an increase of 48%. The company also reported that same store net revenues and operating income increased 29% and 44%, respectively for the second quarter of 1997 when compared with 1996. For the six months ended June 30, 1997, net earnings rose to $13,772,000 from $9,160,000 in 1996, an increase of 50%. Net revenues for the six months increased to $125,887,000 from $87,862,000 for 1996, up 43%. Total revenues and operating income for the six months were $421,544,000 and $21,397,000 in 1997 compared with $303,876,000 and $13,931,000 for the same period in 1996, increases of 39% and 54%, respectively. Net earnings per share for the first two quarters of 1997 were $.53 as compared with $.36 for the same period of 1996, an increase of 47%. “This was our best quarter ever. We are pleased to be able to report record revenues, record net revenues, record operating income, record net earnings and record investments in training and equipment to help us better serve the growing needs of our customers” stated Peter J. Rose, Chairman and Chief Executive Officer. “We can also again report that these results are well balanced both in terms of our service offerings and geographic coverage. These results reflect the power and diversity of our global network. Remarkably even at these impressive levels of growth, our same store figures illustrate that our basic strength continues to be the market share gains coming from our established offices.” “We have always believed that growth in revenue cannot come at the expense of profitability. Consistent with recent quarters, we held the rate of growth in our operating expenses below the rate of growth in our net revenues. When we can achieve this, we hit the ‘sweet spot’ - this quarter that meant a full one percent increase in our operating margin (calculated on a net revenue basis) over the 1996 second quarter level. Even with record growth, our employees remained focused on cost control. Our system allows us to accomplish all of this because we can attract and retain the best-trained, most highly motivated employees in the industry” Rose concluded. Expeditors is a global logistics company. Headquartered in Seattle, Washington, the company employs trained professionals in 134 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 http://www.expd.com.
  2. 2. Expeditors International of Washington, Inc. Financial Highlights Three months and Six months ended June 30, 1997 and 1996 Unaudited (in 000's except share data) Three months ended Six months ended June 30 June 30 1997 1996 % 1997 1996 % Increase Increase Revenues 225,575 166,206 36% 421,544 303,876 39% Net revenues 68,169 47,130 45% 125,887 87,862 43% Operating income 12,816 8,381 53% 21,397 13,931 54% Net earnings 8,174 5,371 52% 13,772 9,160 50% Earnings per share .31 .21 48% .53 .36 47% Weighted ave. shares 26,179,131 25,500,720 26,087,778 25,465,980 ADDITIONAL FINANCIAL INFORMATION AVAILABLE UPON REQUEST New Offices Opened in the 2nd Quarter of 1997 Europe and Middle Africa East Cork, Ireland Bangalore, India Dublin, Ireland Madras, India Shannon, Ireland
  3. 3. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) June 30, December 31, Assets 1997 1996 (Unaudited) Current assets: Cash and cash equivalents $44,586 $36,966 Short-term investments 2,437 357 Accounts receivable, net 182,875 168,76 Deferred Federal and state taxes 5,141 4,854 Other current assets 6,648 4,503 Total current assets 241,687 215,443 Property and equipment, net 57,510 46,246 Other assets 15,297 10,297 $314,494 $ 271,986 Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings 15,843 3,452 Accounts payable 117,463 101,670 Income taxes 6,592 5,659 Other current liabilities 21,219 21,194 Total current liabilities 161,117 131,975 Shareholders' equity: Preferred stock, par value $.01 per share. Authorized 2,000,000 shares; none issued -- -- Common stock, par value $.01 per share. Authorized 40,000,000 shares; issued and outstanding 24,346,007 shares at June 30, 1997 and 24,212,946 at December 31, 1996 243 242 Additional paid-in capital 14,814 13,179 Retained earnings 135,813 123,258 Equity adjustments from foreign currency translation 2,507 3,332 Total shareholders' equity 153,377 140,011 $ 314,494 $ 271,986
  4. 4. 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, 1997 1996 1997 1996 Revenues: Airfreight $ 156,974 115,315 291,902 208,581 Ocean freight and ocean services 42,068 35,270 81,878 64,654 Customs brokerage and import services 26,533 15,621 47,764 30,641 Total revenues 225,575 166,206 421,544 303,876 Operating expenses: Airfreight consolidation 127,446 92,667 236,750 167,121 Ocean freight consolidation 29,960 26,409 58,907 48,893 Salaries and related costs 36,939 25,566 69,269 48,641 Rent 2,584 2,111 4,995 3,894 Depreciation and amortization 2,662 1,942 5,044 3,829 Selling and promotion 3,228 2,306 6,108 4,520 Other 9,940 6,824 19,074 13,047 Total operating expenses 212,759 157,825 400,147 289,945 Operating income 12,816 8,381 21,397 13,931 Interest expense < 33> < 74> < 78> < 124> Interest income 618 600 1,099 1,225 Other, net < 17> 23 8 51 Other income, net 568 549 1,029 1,152 Earnings before income taxes 13,384 8,930 22,426 15,083 Income tax expense 5,210 3,559 8,654 5,923 Net earnings $ 8,174 $ 5,371 $ 13,772 $ 9,160 Net earnings per share $ .31 $ .21 $ .53 $ .36 Weighted average number of common shares 26,179,131 25,500,720 26,087,778 25,465,980 Certain 1996 amounts have been reclassified to conform to the 1997 presentation

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