Dépêches
Expeditors Reports First Quarter 2012 EPS of $.36 Per Share1
Dépèche transmise le 2 mai 2012 par Business Wire
SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $76,707,000 for the first quarter of 2012, as compared with $91,232,000 for the same quarter of 2011, a decrease of (16)%. Net revenues for the first quarter of 2012 decreased (2)% to $446,571,000 as compared with $453,915,000 reported for the first quarter of 2011. Total revenues and operating income were $1,411,370,000 and $125,271,000 in the first quarter of 2012, as compared with $1,460,848,000 and $147,230,000 for the same quarter of 2011, decreases of (3)% and (15)%, respectively. Diluted net earnings attributable to shareholders per share for the first quarter were $.36, as compared with $.42 for the same quarter in 2011, a decrease of (14)%.
“Today's announcement of our first quarter 2012 results could be viewed by some as anti-climactic given our earlier guidance”
“Today's announcement of our first quarter 2012 results could be viewed by some as anti-climactic given our earlier guidance,” said Peter J. Rose, Chairman and Chief Executive Officer. “Our public comments on the state of the global economy these past six months foreshadowed the possibility that some volume weakness could develop in 2012 as compared with 2011. However, a 9% decline in year-over-year airfreight tonnages during the first quarter of 2012 was not what we would have predicted, even if we made predictions. Our largest customers are being very cautious about the amount of airfreight they are using this year. The 5% increase in airfreight shipments handled during the first quarter, despite this decline in tonnage, reinforces that our customers do continue to ship, however. Historically, March is a very significant airfreight month from a tonnage perspective. March 2012 was a notable exception. It is also an anomaly when we experience both a strong reduction in year-over-year airfreight tonnage and a margin contraction. Those who understand the nuances of this business will recognize that as a sign of what it is, a very atypical airfreight environment. We'd be remiss not to mention that these results also include the full accrual of the $5.5 million fine levied by the European Commission the last week of March. We will also take this opportunity to reiterate what we announced when the EC disclosed the fine. We disagree with this decision. As we said then, we did not enter into any agreement that affected customer pricing in any way,” Rose went on to say.
“We don't believe in making excuses at Expeditors. While we feel obligated to explain, we are not happy about these results. Our focus for the remainder of 2012 will be to aggressively expand our customer base and seek to extend our business reach with existing customers while implementing the kind of common sense cost control measures that we used in 2009. We will not abandon our core principles. We also understand that sustainable market share gains, like trust, must be earned and cannot be purchased. At the end of the day, it is only by meeting the needs of our customers that we demonstrate our value. Fortunately our people do just that,” Rose concluded.
Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 186 full-service offices and 63 satellite locations 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.
1 Diluted earnings attributable to shareholders per share.
Disclaimer on Forward-Looking Statements:
Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on changes in the global economy, future volume levels, future airfreight shipments and tonnage, future airfreight tonnage in March, future airfreight margins and ability to meet the needs and provide value of customers. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory actions or changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.
Expeditors International of Washington, Inc. |
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First Quarter 2012 Earnings Release, May 2, 2012 | ||||||||||||
Financial Highlights for the Three months ended March 31, 2012 and 2011 (Unaudited) | ||||||||||||
(in 000's of US dollars except share data) |
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Three months ended March 31, | ||||||||||||
% | ||||||||||||
2012 | 2011 | Decrease | ||||||||||
Revenues | $ | 1,411,370 | $ | 1,460,848 |
(3 |
)% |
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Net revenues | $ | 446,571 | $ | 453,915 | (2 | )% | ||||||
Operating income | $ | 125,271 | $ | 147,230 | (15 | )% | ||||||
Net earnings attributable to shareholders | $ | 76,707 | $ | 91,232 | (16 | )% | ||||||
Diluted earnings attributable to shareholders | $ | .36 | $ | .42 | (14 | )% | ||||||
Basic earnings attributable to shareholders | $ | .36 | $ | .43 | (16 | )% | ||||||
Diluted weighted average shares outstanding | 214,199,510 | 215,863,386 | ||||||||||
Basic weighted average shares outstanding | 212,097,662 | 212,088,860 | ||||||||||
Employee headcount as of March 31, | |||||
2012 | 2011 | ||||
North America | 4,702 | 4,443 | |||
Asia Pacific | 4,006 | 3,898 | |||
Europe and Africa | 2,292 | 2,142 | |||
Middle East | 1,229 | 1,187 | |||
South America | 644 | 626 | |||
Information Systems | 567 | 551 | |||
Corporate | 234 | 205 | |||
Total | 13,674 | 13,052 | |||
Year-over-year percentage increase (decrease) in: | ||||||
Airfreight kilos | Ocean freight FEU | |||||
2012 | ||||||
January | (15 | )% | (6 | )% | ||
February | 3 | % | 15 | % | ||
March | (13 | )% | (1 | )% | ||
Quarter | (9 | )% | 1 | % |
During the first quarter of 2012, the Company opened one full service office in Tulsa, Oklahoma (formerly a satellite of Dallas).
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | ||||||||
AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands, except share data) | ||||||||
(Unaudited) | ||||||||
March 31, 2012 | December 31, 2011 | |||||||
Assets |
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Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,412,915 | $ | 1,294,356 | ||||
Short-term investments | 16,277 | 472 | ||||||
Accounts receivable, net | 934,866 | 934,752 | ||||||
Deferred Federal and state income taxes | 9,754 | 10,415 | ||||||
Other current assets | 36,386 | 46,888 | ||||||
Total current assets | 2,410,198 | 2,286,883 | ||||||
Property and equipment, net | 550,323 | 538,806 | ||||||
Goodwill and other intangibles, net | 10,215 | 10,557 | ||||||
Other assets, net | 30,487 | 30,581 | ||||||
$ | 3,001,223 | $ | 2,866,827 | |||||
Liabilities and Equity |
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Current Liabilities: | ||||||||
Accounts payable | 629,503 | 606,628 | ||||||
Accrued expenses, primarily salaries and related costs | 170,535 | 169,445 | ||||||
Federal, state and foreign income taxes | 28,219 | 20,072 | ||||||
Total current liabilities | 828,257 | 796,145 | ||||||
Deferred Federal and state income taxes | 70,932 | 60,613 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Preferred stock; none issued | — | — | ||||||
Common stock, par value $.01 per share; issued and outstanding 212,275,083 shares at March 31, 2012 and 212,003,662 shares at December 31, 2011 | 2,123 | 2,120 | ||||||
Additional paid-in capital | 18,338 | 13,260 | ||||||
Retained earnings | 2,067,929 | 1,991,222 | ||||||
Accumulated other comprehensive income (loss) | 7,064 | (2,964 | ) | |||||
Total shareholders’ equity | 2,095,454 | 2,003,638 | ||||||
Noncontrolling interest | 6,580 | 6,431 | ||||||
Total equity | 2,102,034 | 2,010,069 | ||||||
$ | 3,001,223 | $ | 2,866,827 | |||||
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | ||||||||
AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Earnings | ||||||||
(In thousands, except share data) | ||||||||
(Unaudited) | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
Revenues: | ||||||||
Airfreight services | $ | 638,912 | $ | 700,923 | ||||
Ocean freight and ocean services | 434,336 | 440,141 | ||||||
Customs brokerage and other services | 338,122 | 319,784 | ||||||
Total revenues | 1,411,370 | 1,460,848 | ||||||
Operating Expenses: | ||||||||
Airfreight consolidation | 481,043 | 524,636 | ||||||
Ocean freight consolidation | 331,954 | 339,549 | ||||||
Customs brokerage and other services | 151,802 | 142,748 | ||||||
Salaries and related costs | 246,132 | 237,815 | ||||||
Rent and occupancy costs | 21,176 | 21,381 | ||||||
Depreciation and amortization | 9,545 | 9,174 | ||||||
Selling and promotion | 8,663 | 9,163 | ||||||
Other | 35,784 | 29,152 | ||||||
Total operating expenses | 1,286,099 | 1,313,618 | ||||||
Operating income | 125,271 | 147,230 | ||||||
Interest income | 3,360 | 2,320 | ||||||
Interest expense | (620 | ) | (214 | ) | ||||
Other, net | 1,097 | 1,117 | ||||||
Other income, net | 3,837 | 3,223 | ||||||
Earnings before income taxes | 129,108 | 150,453 | ||||||
Income tax expense | 52,386 | 59,246 | ||||||
Net earnings | 76,722 | 91,207 | ||||||
Less net earnings (losses) attributable to the noncontrolling interest | 15 | (25 | ) | |||||
Net earnings attributable to shareholders | $ | 76,707 | $ | 91,232 | ||||
Diluted earnings attributable to shareholders per share | $ | .36 | $ | .42 | ||||
Basic earnings attributable to shareholders per share | $ | .36 | $ | .43 | ||||
Dividends declared and paid per common share | $ | — | $ | — | ||||
Weighted average diluted shares outstanding | 214,199,510 | 215,863,386 | ||||||
Weighted average basic shares outstanding | 212,097,662 | 212,088,860 | ||||||
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | |||||||
AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands) (Unaudited) | |||||||
Three months ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 76,722 | $ | 91,207 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Provision for losses on accounts receivable | (467 | ) | 1,853 | ||||
Deferred income tax expense (benefit) | 5,481 | (1,936 | ) | ||||
Excess tax benefits from stock plans | (3,426 | ) | (2,246 | ) | |||
Stock compensation expense | 10,600 | 10,472 | |||||
Depreciation and amortization | 9,545 | 9,174 | |||||
Gain on sale of assets | (65 | ) | (30 | ) | |||
Other | 282 | 307 | |||||
Changes in operating assets and liabilities: | |||||||
Decrease in accounts receivable | 12,968 | 6,683 | |||||
Decrease (increase) in other current assets | 1,924 | (1,415 | ) | ||||
Increase in accounts payable and accrued expenses | 13,559 | 30,187 | |||||
Increase in income taxes payable, net | 20,274 | 33,577 | |||||
Net cash provided by operating activities | 147,397 | 177,833 | |||||
Investing Activities: | |||||||
Increase in short-term investments, net | (15,780 | ) | (89 | ) | |||
Purchase of property and equipment | (17,088 | ) | (21,125 | ) | |||
Proceeds from sale of property and equipment | 112 | 43 | |||||
Other | 358 | (1,442 | ) | ||||
Net cash used in investing activities | (32,398 | ) | (22,613 | ) | |||
Financing Activities: | |||||||
Proceeds from issuance of common stock | 12,920 | 7,804 | |||||
Repurchases of common stock | (21,865 | ) | (19,584 | ) | |||
Excess tax benefits from stock plans | 3,426 | 2,246 | |||||
Net cash used in financing activities | (5,519 | ) | (9,534 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 9,079 | 8,320 | |||||
Increase in cash and cash equivalents | 118,559 | 154,006 | |||||
Cash and cash equivalents at beginning of period | 1,294,356 | 1,084,465 | |||||
Cash and cash equivalents at end of period | $ | 1,412,915 | $ | 1,238,471 | |||
Interest and taxes paid: | |||||||
Interest | $ | 187 | $ | 4 | |||
Income taxes | 26,512 | 26,276 | |||||
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. | |||||||||||||||||||||||||||||
AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||||||||
(In thousands) (Unaudited) | |||||||||||||||||||||||||||||
OTHER | MIDDLE | ||||||||||||||||||||||||||||
UNITED | NORTH | LATIN | ASIA | EUROPE and | EAST and | ELIMI- | CONSOLI- | ||||||||||||||||||||||
STATES | AMERICA | AMERICA | PACIFIC | AFRICA | INDIA | NATIONS | DATED | ||||||||||||||||||||||
Three months ended March 31, 2012: | |||||||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 377,302 | 49,954 | 19,269 | 688,070 | 206,271 | 70,504 | — | 1,411,370 | ||||||||||||||||||||
Transfers between geographic areas | 22,208 | 2,465 | 5,079 | 10,972 | 9,467 | 4,651 | (54,842 | ) | — | ||||||||||||||||||||
Total revenues | $ | 399,510 | 52,419 | 24,348 | 699,042 | 215,738 | 75,155 | (54,842 | ) | 1,411,370 | |||||||||||||||||||
Net revenues | $ | 181,475 | 22,242 | 14,835 | 131,814 | 71,533 | 24,672 | — | 446,571 | ||||||||||||||||||||
Operating income | $ | 45,525 | 6,369 | 4,762 | 47,238 | 14,247 | 7,130 | — | 125,271 | ||||||||||||||||||||
Identifiable assets | $ | 1,590,900 | 96,312 | 52,214 | 708,528 | 404,839 | 149,416 | (986 | ) | 3,001,223 | |||||||||||||||||||
Capital expenditures | $ | 9,759 | 176 | 255 | 5,287 | 942 | 669 | — | 17,088 | ||||||||||||||||||||
Depreciation and amortization | $ | 5,622 | 187 | 217 | 1,624 | 1,404 | 491 | — | 9,545 | ||||||||||||||||||||
Equity | $ | 1,315,321 | 56,341 | 31,060 | 471,498 | 164,165 | 93,282 | (29,633 | ) | 2,102,034 | |||||||||||||||||||
Three months ended March 31, 2011: | |||||||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 377,106 | 43,846 | 20,332 | 728,130 | 213,612 | 77,822 | — | 1,460,848 | ||||||||||||||||||||
Transfers between geographic areas | 23,965 | 2,682 | 5,621 | 9,183 | 10,707 | 4,209 | (56,367 | ) | — | ||||||||||||||||||||
Total revenues | $ | 401,071 | 46,528 | 25,953 | 737,313 | 224,319 | 82,031 | (56,367 | ) | 1,460,848 |