Expeditors International of Washington, 3rd97qer

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Expeditors International of Washington, 3rd97qer

  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 NET EARNINGS INCREASE OF 53% SEATTLE, WASHINGTON - November 3, 1997, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced record quarterly net earnings of $11,777,000 for the third quarter of 1997, compared with $7,680,000 for the same quarter of 1996, an increase of 53%. Net revenues for the third quarter of 1997 increased 43% to $80,180,000 as compared with $56,233,000 reported for the third quarter of 1996. Total revenues and operating income were $262,309,000 and $18,958,000 in 1997 compared with $204,892,000 and $12,082,000 for the same quarter of 1996, increases of 28% and 57%, respectively. Net earnings per share for the third quarter were $.44 as compared with $.30 for the same quarter in 1996, an increase of 47%. The company also reported that same store net revenues and operating income increased 30% and 50%, respectively, for the third quarter of 1997 when compared with 1996. For the nine months ended September 30, 1997, net earnings rose to $25,549,000 from $16,840,000 in 1996, an increase of 52%. Net revenues for the nine months increased to $206,067,000 from $144,095,000 for 1996, up 43%. Total revenues and operating income for the nine months were $683,853,000 and $40,355,000 in 1997 compared with $508,768,000 and $26,013,000 for the same period in 1996, increases of 34% and 55%, respectively. Net earnings per share for the first three quarters of 1997 were $.97 as compared with $.66 for the same period of 1996, an increase of 47%. “We are very pleased with these results, particularly in light of the strong 1996 comparable.” stated Peter J. Rose, Chairman and Chief Executive Officer. “This continues a strong trend as our third quarter growth, measured year over year, has been 34%, 29%, 53% and 53% from 1994 forward - a remarkable 42% compound rate of growth. This quarter’ story for Expeditors and our customers was the extraordinarily strong peak season. This is the longest s and heaviest peak season for quite some time and this has brought significant challenges. Our employees and customers have faced critical equipment shortages in North American ports, unprecedented cargo volumes and an unpredictable domestic delivery situation. At its core, global logistics is about the basics: meeting the customer’s needs by moving goods, supplying needed information and performing countless time sensitive tasks in a cost- effective manner. We wish to acknowledge the superb efforts of our employees and thank our customers for their patience and loyalty during this difficult peak season.” Looking to the fourth quarter, Rose stated, “We wish to confirm to our shareholders that in spite of the pundits of Wall Street, and the pervasive ‘chicken little syndrome’attached by ‘ street,’from our perspective all remains well the at Expeditors. We were not affected by the currency shifts in Asia and have a strong belief that significant imports will continue to come from Asia, as opposed to Greenland. To allay any fears, we at Expeditors live and work in a global economy and barring thermonuclear war, all seems to be well with our piece of this global economy.”
  2. 2. Expeditors International of Washington, Inc. 3rd Quarter 1997 Earnings Release November 3, 1997 Page 2 of 2 Expeditors is a global logistics company. Headquartered in Seattle, Washington, the company employs trained professionals in 128 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. Expeditors International of Washington, Inc. Financial Highlights Three months and Nine months ended September 30, 1997 and 1996 Unaudited (in 000's except share data) Three months ended Nine months ended September 30 September 30 1997 1996 % 1997 1996 % Increase Increase Revenues 262,309 204,892 28% 683,853 508,768 34% Net revenues 80,180 56,233 43% 206,067 144,095 43% Operating income 18,958 12,082 57% 40,355 26,013 55% Net earnings 11,777 7,680 53% 25,549 16,840 52% Earnings per share .44 .30 47% .97 .66 47% Weighted ave. shares 26,555,155 25,689,522 26,243,552 25,540,458 ADDITIONAL FINANCIAL INFORMATION AVAILABLE UPON REQUEST New Offices Opened in the 3rd Quarter of 1997 North America Australasia Latin America Calexico, CA-USA Adelaide, Australia Santos, Brazil San Diego, CA-USA Guadalajara, JL-MX
  3. 3. 03-Nov-1997 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 1997 1996 (Unaudited) Current assets: Cash and cash equivalents $47,416 $36,966 Short-term investments 357 357 Accounts receivable, net 224,165 168,763 Deferred Federal and state taxes 6,820 4,854 Other current assets 7,862 4,503 Total current assets 286,620 215,443 Property and equipment, net 61,746 46,246 Other assets 15,088 10,297 $363,454 $ 271,986 Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings 29,336 3,452 Accounts payable 139,547 101,670 Income taxes 7,045 5,659 Other current liabilities 24,299 21,194 Total current liabilities 200,227 131,975 Shareholders' equity: Preferred stock, par value $.01 per share. Authorized 2,000,000 shares; none issued -- -- Common stock, par value $.01 per share. Authorized 80,000,000 shares; issued and outstanding 24,529,891 shares at September 30, 1997 and 24,212,946 at December 31, 1996 245 242 Additional paid-in capital 15,449 13,179 Retained earnings 147,590 123,258 Equity adjustments from foreign currency translation < 57> 3,332 Total shareholders' equity 163,227 140,011 $ 363,454 $ 271,986
  4. 4. 03-Nov-1997 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, 1997 1996 1997 1996 Revenues: Airfreight $ 178,158 142,071 470,060 350,652 Ocean freight and ocean services 52,128 44,310 134,006 108,964 Customs brokerage and import services 32,023 18,511 79,787 49,152 Total revenues 262,309 204,892 683,853 508,768 Operating expenses: Airfreight consolidation 145,357 115,778 382,107 282,899 Ocean freight consolidation 36,772 32,881 95,679 81,774 Salaries and related costs 41,733 29,311 111,002 77,952 Rent 2,654 2,264 7,649 6,158 Depreciation and amortization 2,878 2,069 7,922 5,899 Selling and promotion 3,506 2,618 9,614 7,138 Other 10,451 7,889 29,525 20,935 Total operating expenses 243,351 192,810 643,498 482,755 Operating income 18,958 12,082 40,355 26,013 Interest expense < 146> < 71> < 224> < 195> Interest income 420 471 1,519 1,696 Other, net < 179> 59 < 171> 110 Other income, net 95 459 1,124 1,611 Earnings before income taxes 19,053 12,541 41,479 27,624 Income tax expense 7,276 4,861 15,930 10,784 Net earnings $ 11,777 $ 7,680 $ 25,549 $ 16,840 Net earnings per share $ .44 $ .30 $ .97 $ .66 Weighted average number of common shares 26,555,155 25,689,522 26,243,552 25,540,458 Certain 1996 amounts have been reclassified to conform to the 1997 presentation

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