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Expeditors International of Washington, 3rd98qer
Expeditors International of Washington, 3rd98qer
Expeditors International of Washington, 3rd98qer
Expeditors International of Washington, 3rd98qer
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Expeditors International of Washington, 3rd98qer

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  • 1. EARNINGS RELEASE By: Expeditors International of Washington, Inc. 1015 Third Avenue, 12th Floor Seattle, Washington 98104 CONTACT: R. Jordan Gates Chief Financial Officer (206) 674-3427 FOR IMMEDIATE RELEASE EXPEDITORS ANNOUNCES RECORD QUARTERLY EARNINGS SEATTLE, WASHINGTON – November 3, 1998, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced record quarterly net earnings of $14,217,000 for the third quarter of 1998, compared with $11,777,000 for the same quarter of 1997, an increase of 21%. Net revenues for the third quarter of 1998 increased 16% to $92,890,000 as compared with $80,180,000 reported for the third quarter of 1997. Total revenues and operating income were $289,675,000 and $22,273,000 in 1998 compared with $262,309,000 and $18,958,000 for the same quarter of 1997, increases of 10% and 17%, respectively. Diluted net earnings per share for the third quarter were $.54 as compared with $.44 for the same quarter in 1997, an increase of 23%. The company also reported that same store net revenues and operating income increased 15 % and 18 %, respectively, for the third quarter of 1998 when compared with 1997. For the nine months ended September 30, 1998, net earnings rose to $33,331,000 from $25,549,000 in 1997, an increase of 30%. Net revenues for the nine months increased to $251,028,000 from $206,067,000 in 1997, up 22%. Total revenues and operating income for the nine months were $754,994,000 and $51,291,000 in 1998 compared with $683,853,000 and $40,355,000 for the same period in 1997, increases of 10% and 27%, respectively. Diluted net earnings per share for the first three quarters of 1998 were $1.26 as compared with $.97 for the same period of 1997, an increase of 30%. Same store net revenues and operating income increased 17% and 25%, respectively, for the nine months ended September 30, 1998 when compared with same period of 1997. “These results reflect the fact that our employees remain committed to providing our customers with a quality of service that is unmatched in the industry.” stated Peter J. Rose, Chairman and Chief Executive Officer. “Our business model continues to provide a level of success that we believe cannot easily be equaled. Those who rely upon our performance can be assured that we will not waiver in our approach and we will continue to focus only on those things that we can control. Unfortunately, the performance of the stock market, our industry sector and our stock are not such items. In the long run these things will take care of themselves and Expeditors is in this race for the long run.” concluded Rose. Expeditors is a global logistics company. Headquartered in Seattle, Washington, the company employs trained professionals in 137 offices and 11 international service centers located on nine 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. Expeditors International of Washington, Inc. 3rd Quarter 1998 Earnings Release November 3, 1998 Page 2 of 2 Expeditors International of Washington, Inc. Financial Highlights Three months and Nine months ended September 30, 1998 and 1997 Unaudited (in 000's except share data) Three months ended Nine months ended September 30 September 30 1998 1997 % 1998 1997 % Increase Increase 262,309 10% Revenues 289,675 754,994 683,853 10% Net revenues 92,890 80,180 16% 251,028 206,067 22% Operating income 22,273 18,958 17% 51,291 40,355 27% Net earnings 14,217 11,777 21% 33,331 25,549 30% Diluted earnings per .54 .44 23% 1.26 .97 30% share Basic earnings per share .57 .48 19% 1.35 1.05 29% Diluted weighted average shares outstanding 26,471,432 26,555,155 26,549,196 26,243,552 Basic weighted average shares outstanding 24,924,638 24,437,949 24,693,992 24,371,419 ADDITIONAL FINANCIAL INFORMATION AVAILABLE UPON REQUEST New Offices Opened in the 3rd Quarter of 1998 Far East Middle East Manila, Philippines Dubai, U.A.E. Tokyo, Japan Osaka, Japan
  • 3. 03-Nov-1998 Expeditors International of Washington, Inc. Additional Financial Information Page 3 of 4 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) September 30, December 31, Assets 1998 1997 (Unaudited) Current assets: Cash and cash equivalents $45,937 $42,094 Short-term investments 450 214 Accounts receivable, net 241,682 206,501 Deferred Federal and state taxes 2,224 4,296 Other current assets 10,927 6,399 Total current assets 301,220 259,504 Property and equipment, net 99,844 66,550 Deferred Federal and state taxes 2,395 1,930 Other assets 16,550 16,122 $420,009 $344,106 Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings 26,365 2,145 Accounts payable 153,363 143,980 Income taxes 8,704 7,181 Other current liabilities 27,764 18,946 Total current liabilities 216,196 172,252 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 24,634,441 shares at September 30, 1998 and 24,546,380 at December 31,1997 246 245 Additional paid-in capital 16,746 15,534 Retained earnings 190,834 159,225 Equity adjustments from foreign currency translation (4,013) (3,150) Total shareholders' equity 203,813 171,854 $420,009 $344,106 Certain 1997 amounts have been reclassified to conform to the 1998 presentation
  • 4. 03-Nov-1998 Expeditors International of Washington, Inc. Additional Financial Information Page 4 of 4 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except share data) (Unaudited) Three months ended Nine months ended September 30, September 30, 1998 1997 1998 1997 Revenues: Airfreight $182,798 178,158 481,962 470,060 Ocean freight and ocean services 70,595 52,128 170,510 134,006 Customs brokerage and import services 36,282 32,023 102,522 79,787 Total revenues 289,675 262,309 754,994 683,853 Operating expenses: Airfreight consolidation 145,379 145,357 381,454 382,107 Ocean freight consolidation 51,406 36,772 122,512 95,679 Salaries and related costs 49,958 41,733 137,516 111,002 Rent 4,158 2,654 11,164 7,649 Depreciation and amortization 3,993 2,878 10,867 7,922 Selling and promotion 3,762 3,506 10,742 9,614 Other 8,746 10,451 29,448 29,525 Total operating expenses 267,402 243,351 703,703 643,498 Operating Income 22,273 18,958 51,291 40,355 Interest expense (79) (146) (181) (224) Interest income 481 420 1,540 1,519 Other, net ** (91) (179) 566 (171) Other income, net ** 311 95 1,925 1,124 Earnings before income taxes 22,584 19,053 53,216 41,479 Income tax expense 8,367 7,276 19,885 15,930 Net earnings $14,217 $11,777 $33,331 $25,549 Diluted earnings per share $0.54 $0.44 $1.26 $0.97 Basic earnings per share $0.57 $0.48 $1.35 $1.05 Diluted weighted average shares outstanding 26,471,432 26,555,155 26,549,196 26,243,552 Basic weighted average shares outstanding 24,924,638 24,437,949 24,693,992 24,371,419 ** Nine month figure 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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