• Expeditors Reports Third Quarter 2017 EPS of $0.66

    Источник: Nasdaq GlobeNewswire / 07 ноя 2017 08:30:40   America/New_York

    SEATTLE, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced third quarter 2017 financial results including the following highlights compared to the same quarter of 2016:

    • Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 12% to $0.66
    • Net Earnings Attributable to Shareholders increased 12% to $120 million
    • Operating Income increased 12% to $187 million
    • Revenues increased 15% to $1.8 billion
    • Net Revenues2 increased 10% to $599 million
    • Airfreight tonnage volume increased 12% and ocean container volume increased 4%

    “This quarter represents the culmination of the efforts from our staff over the last few quarters,” said Jeffrey S. Musser, President and Chief Executive Officer. “We’ve spent a significant amount of time working with our customers to bring pricing back in line with the changes that have taken place in the market. While accomplishing that task, our staff has also continued to provide the high level of service that our customers have come to expect from Expeditors. We remain extremely thankful for the exceptional employees and customers with whom we get to work each day.

    “While our current focus has shifted somewhat from volume growth - due to the margin impacts that can occur - we continued to record strong performance in all of our services, winning new business and growing volumes with existing customers. We think the numbers speak for themselves with regards to the quality of volume growth that we are experiencing.”

    Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “Despite the highly unpredictable rate environment, our people exercised careful restraint to bring our benchmark operating income as a percentage of net revenue back above 30% for the quarter, as compared to the first two quarters of 2017. We are managing expenses well, as our growth in volumes has significantly outpaced our growth in headcount. At the same time, we continue to make critical investments in our technology and create additional efficiencies for both ourselves and our customers."

    Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 177 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

    _______________________
    1Diluted earnings attributable to shareholders per share.
    2Non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. See reconciliation on the last page of this release.
    NOTE:  See Disclaimer on Forward-Looking Statements on the following page of this release.

     
    Expeditors International of Washington, Inc.
    Third Quarter 2017 Earnings Release, November 7, 2017
    Financial Highlights for the Three and Nine months ended September 30, 2017 and 2016 (Unaudited) 
    (in 000's of US dollars except per share data)
            
     Three months ended September 30,   Nine months ended September 30,  
     2017 2016 % Change 2017 2016 % Change
    Revenues$1,802,166  $1,562,394  15% $5,019,577  $4,456,030  13%
    Net revenues1$599,142  $545,259  10% $1,690,380  $1,615,445  5%
    Operating income$186,895  $167,263  12% $501,249  $497,953  1%
    Net earnings attributable to shareholders$120,263  $107,581  12% $322,378  $320,217  1%
    Diluted earnings attributable to shareholders per share$0.66  $0.59  12% $1.77  $1.75  1%
    Basic earnings attributable to shareholders per share$0.67  $0.59  14% $1.79  $1.76  2%
    Diluted weighted average shares outstanding181,788  182,692    181,951  182,958   
    Basic weighted average shares outstanding179,416  181,177    179,827  181,645   

    _______________________
    1Non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. See reconciliation on the last page of this release.

    During the three and nine-month periods ended September 30, 2017, we repurchased 3.6 million and 6.1 million shares of common stock at an average price of $56.18 and $55.93 per share, respectively. During the three and nine-month periods ended September 30, 2016, the Company repurchased 2.0 million and 5.4 million shares of common stock at an average price of $51.16 and $49.64 per share, respectively.

      
     Employee headcount as of September 30,
     2017 2016
    North America6,043  5,769 
    Europe3,013  2,846 
    North Asia2,548  2,498 
    Middle East, Africa and India1,503  1,494 
    South Asia1,495  1,364 
    Latin America800  758 
    Information Systems889  810 
    Corporate357  338 
    Total16,648  15,877 
          


       
      Year-over-year percentage increase in:
      Airfreight kilos Ocean freight FEU
    2017    
    July 7% 6%
    August 10% 2%
    September 17% 3%
    Quarter 12% 4%

    _______________________
    Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 10, 2017 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about November 20, 2017.

    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 our ability to implement price adjustments, the quality of the volume growth that we are experiencing, the highly unpredictable rate environment, and our ability to manage expenses well. 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, the future success of our business model, our ability to maintain consistent and stable operating results, our ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, changes in global trade volumes, customers’ inventory build-up, decreased consumer confidence, geopolitical changes, foreign exchange rates, 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.
    AND SUBSIDIARIES
     
    Condensed Consolidated Balance Sheets
    (In thousands, except per share data)
    (Unaudited)
     
     September 30, 2017 December 31, 2016
    Assets   
    Current Assets:   
    Cash and cash equivalents$1,033,444  $974,435 
    Accounts receivable, net1,349,854  1,190,130 
    Other current assets135,623  54,014 
    Total current assets2,518,921  2,218,579 
    Property and equipment, net513,070  536,572 
    Goodwill7,927  7,927 
    Other assets, net28,963  27,793 
     $3,068,881  $2,790,871 
    Liabilities and Equity   
    Current Liabilities:   
    Accounts payable$836,055  $726,571 
    Accrued expenses, primarily salaries and related costs216,146  185,502 
    Federal, state and foreign income taxes23,853  17,858 
    Total current liabilities1,076,054  929,931 
    Deferred Federal and state income taxes11,746  13,727 
        
    Commitments and contingencies   
        
    Shareholders’ Equity:   
    Preferred stock; none issued   
    Common stock, par value $0.01 per share. Issued and outstanding 177,559 shares at September 30, 2017 and 179,857 shares at December 31, 20161,776  1,799 
    Additional paid-in capital1,464  2,642 
    Retained earnings2,053,723  1,944,789 
    Accumulated other comprehensive loss(78,960) (104,592)
    Total shareholders’ equity1,978,003  1,844,638 
    Noncontrolling interest3,078  2,575 
    Total equity1,981,081  1,847,213 
     $3,068,881  $2,790,871 
            


     
    EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
    AND SUBSIDIARIES
     
    Condensed Consolidated Statements of Earnings
    (In thousands, except per share data)
    (Unaudited)
     
     Three months ended Nine months ended
     September 30, September 30,
     2017 2016 2017 2016
    Revenues:       
    Airfreight services$735,164  $621,566  $2,022,577  $1,764,512 
    Ocean freight and ocean services563,386  495,460  1,585,730  1,414,344 
    Customs brokerage and other services503,616  445,368  1,411,270  1,277,174 
    Total revenues1,802,166  1,562,394  5,019,577  4,456,030 
    Operating Expenses:       
    Airfreight services547,595  444,359  1,490,417  1,236,555 
    Ocean freight and ocean services411,061  359,991  1,163,051  1,006,710 
    Customs brokerage and other services244,368  212,785  675,729  597,320 
    Salaries and related costs319,050  291,204  930,159  868,091 
    Rent and occupancy costs30,533  27,091  87,826  81,029 
    Depreciation and amortization12,272  11,882  36,241  34,853 
    Selling and promotion10,608  10,134  32,476  29,817 
    Other39,784  37,685  102,429  103,702 
    Total operating expenses1,615,271  1,395,131  4,518,328  3,958,077 
    Operating income186,895  167,263  501,249  497,953 
    Other Income (Expense):       
    Interest income3,444  2,924  9,565  8,593 
    Other, net96  925  2,584  3,407 
    Other income (expense), net3,540  3,849  12,149  12,000 
    Earnings before income taxes190,435  171,112  513,398  509,953 
    Income tax expense69,829  63,163  190,470  188,518 
    Net earnings120,606  107,949  322,928  321,435 
    Less net earnings attributable to the noncontrolling interest343  368  550  1,218 
    Net earnings attributable to shareholders$120,263  $107,581  $322,378  $320,217 
    Diluted earnings attributable to shareholders per share$0.66  $0.59  $1.77  $1.75 
    Basic earnings attributable to shareholders per share$0.67  $0.59  $1.79  $1.76 
    Dividends declared and paid per common share$  $  $0.42  $0.40 
    Weighted average diluted shares outstanding181,788  182,692  181,951  182,958 
    Weighted average basic shares outstanding179,416  181,177  179,827  181,645 
                


     
    EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
    AND SUBSIDIARIES
     
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)
     
     Three months ended Nine months ended
     September 30, September 30,
     2017 2016 2017 2016
    Operating Activities:       
    Net earnings$120,606  $107,949  $322,928  $321,435 
    Adjustments to reconcile net earnings to net cash from operating activities:       
    Provision for losses on accounts receivable1,741  1,321  3,187  2,461 
    Deferred income tax (benefit) expense(28,854) (1,439) (16,000) 2,342 
    Stock compensation expense11,210  10,476  39,036  34,264 
    Depreciation and amortization12,272  11,882  36,241  34,853 
    Other, net377  11  (148) 41 
    Changes in operating assets and liabilities:       
    (Increase) decrease in accounts receivable(126,102) (58,279) (123,790) 6,087 
    Increase in accounts payable and accrued expenses61,833  38,070  96,132  74,148 
    Increase (decrease) in income taxes payable, net38,149  7,197  10,814  (16,612)
    Increase in other current assets(5,872) (1,395) (6,147) (2,089)
    Net cash from operating activities85,360  115,793  362,253  456,930 
    Investing Activities:       
    Purchase of property and equipment(34,462) (12,659) (67,603) (39,973)
    Other, net(261) 1,617  (892) 5,472 
    Net cash from investing activities(34,723) (11,042) (68,495) (34,501)
    Financing Activities:       
    Proceeds from issuance of common stock65,915  57,522  162,781  147,645 
    Repurchases of common stock(202,776) (101,690) (340,736) (268,097)
    Dividends paid    (75,726) (73,000)
    Net cash from financing activities(136,861) (44,168) (253,681) (193,452)
    Effect of exchange rate changes on cash and cash equivalents4,758  1,853  18,932  5,927 
    (Decrease) increase in cash and cash equivalents(81,466) 62,436  59,009  234,904 
    Cash and cash equivalents at beginning of period1,114,910  980,264  974,435  807,796 
    Cash and cash equivalents at end of period$1,033,444  $1,042,700  $1,033,444  $1,042,700 
    Taxes paid:       
    Income taxes$58,257  $58,696  $190,911  $205,049 
                    


     
    EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
    AND SUBSIDIARIES
    Business Segment Information
    (In thousands)
    (Unaudited)
                      
     UNITED
    STATES
     OTHER
    NORTH
    AMERICA
     LATIN
    AMERICA
     NORTH ASIA SOUTH ASIA EUROPE MIDDLE
    EAST, AFRICA
    AND INDIA
     ELIMI-
    NATIONS
     CONSOLI-
    DATED
    Three months ended September 30, 2017:                 
    Revenues from unaffiliated customers$476,575  65,544  24,181  686,915  170,225  273,606  105,120    1,802,166 
    Transfers between geographic areas26,888  2,782  3,679  5,253  5,681  10,302  5,318  (59,903)  
    Total revenues$503,463  68,326  27,860  692,168  175,906  283,908  110,438  (59,903) 1,802,166 
    Net revenues$257,030  30,664  14,710  138,667  41,411  85,390  29,956  1,314  599,142 
    Operating income$74,645  9,215  2,652  72,070  11,697  11,124  5,495  (3) 186,895 
    Identifiable assets$1,636,293  100,651  52,238  446,826  143,893  473,509  212,210  3,261  3,068,881 
    Capital expenditures$7,398  263  2,436  589  390  23,138  248    34,462 
    Depreciation and amortization$7,905  405  310  1,313  569  1,309  461    12,272 
    Equity$1,345,266  52,212  25,709  231,831  102,477  139,688  119,649  (35,751) 1,981,081 
    Three months ended September 30, 2016:                 
    Revenues from unaffiliated customers$423,362  56,747  21,592  590,622  154,156  228,256  87,659    1,562,394 
    Transfers between geographic areas24,610  2,770  3,724  5,368  6,206  9,938  5,551  (58,167)  
    Total revenues$447,972  59,517  25,316  595,990  160,362  238,194  93,210  (58,167) 1,562,394 
    Net revenues$229,773  30,211  14,063  124,251  42,711  74,888  29,363  (1) 545,259 
    Operating income$69,457  6,200  3,328  59,682  14,045  7,018  7,534  (1) 167,263 
    Identifiable assets$1,410,287  95,390  56,192  480,587  117,333  388,543  237,104  8,788  2,794,224 
    Capital expenditures$8,319  720  139  739  319  2,127  296    12,659 
    Depreciation and amortization$7,566  369  328  1,404  594  1,116  505    11,882 
    Equity$1,145,293  41,542  37,765  293,383  87,926  129,989  150,395  (32,360) 1,853,933 
                                


                      
    (in thousands)UNITED
    STATES
     OTHER
    NORTH
    AMERICA
     LATIN
    AMERICA
     NORTH ASIA SOUTH ASIA EUROPE MIDDLE
    EAST,  AFRICA
    AND INDIA
     ELIMI-
    NATIONS
     CONSOLI-
    DATED
    Nine months ended September 30, 2017:                 
    Revenues from unaffiliated customers$1,354,811  187,997  69,747  1,873,393  475,163  764,596  293,870    5,019,577 
    Transfers between geographic areas79,356  8,246  11,073  15,139  16,520  29,288  15,316  (174,938)  
    Total revenues$1,434,167  196,243  80,820  1,888,532  491,683  793,884  309,186  (174,938) 5,019,577 
    Net revenues$737,842  84,630  43,634  371,459  117,634  242,244  89,973  2,964  1,690,380 
    Operating income$191,256  26,583  8,349  183,515  37,434  36,189  17,928  (5) 501,249 
    Identifiable assets at period end$1,636,293  100,651  52,238  446,826  143,893  473,509  212,210  3,261  3,068,881 
    Capital expenditures$19,492  1,066  3,648  2,492  1,172  38,717  1,016    67,603 
    Depreciation and amortization$23,389  1,163  930  3,995  1,656  3,707  1,401    36,241 
    Equity$1,345,266  52,212  25,709  231,831  102,477  139,688  119,649  (35,751) 1,981,081 
    Nine months ended September 30, 2016:                 
    Revenues from unaffiliated customers$1,248,923  165,527  62,825  1,605,343  442,464  680,035  250,913    4,456,030 
    Transfers between geographic areas79,617  8,141  11,512  15,849  18,338  30,396  16,452  (180,305)  
    Total revenues$1,328,540  173,668  74,337  1,621,192  460,802  710,431  267,365  (180,305) 4,456,030 
    Net revenues$683,331  88,404  42,264  357,159  128,486  227,068  88,745  (12) 1,615,445 
    Operating income$184,876  23,091  11,016  176,621  48,090  31,109  23,162  (12) 497,953 
    Identifiable assets at period end$1,410,287  95,390  56,192  480,587  117,333  388,543  237,104  8,788  2,794,224 
    Capital expenditures$25,234  1,476  941  2,502  1,325  6,386  2,109    39,973 
    Depreciation and amortization$22,264  1,113  869  4,111  1,649  3,402  1,445    34,853 
    Equity$1,145,293  41,542  37,765  293,383  87,926  129,989  150,395  (32,360) 1,853,933 
                                


    Net Revenues (Non-GAAP measure)

    We commonly refer to the term “net revenues” when commenting about our Company and the results of its operations. Net revenues are a Non-GAAP measure calculated as revenues less directly related operations expenses attributable to the Company's principal services. We believe that net revenues are a better measure than are total revenues when analyzing and discussing our effectiveness in managing our principal services since total revenues earned as a freight consolidator must consider the carriers' charges to us for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by us. Net revenue is one of our primary operational and financial measures and demonstrates our ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings. Using net revenues also provides a commonality for comparison among various services. The following table presents the calculation of net revenues.

        
     Three months ended Nine months ended
     September 30, September 30,
    (in thousands)2017 2016 2017 2016
    Total revenues$1,802,166  $1,562,394  $5,019,577  $4,456,030 
    Expenses:       
    Airfreight services547,595  444,359  1,490,417  1,236,555 
    Ocean freight and ocean services411,061  359,991  1,163,051  1,006,710 
    Customs brokerage and other services244,368  212,785  675,729  597,320 
    Net revenues$599,142  $545,259  $1,690,380  $1,615,445 
                    


    CONTACTS:          

    Jeffrey S. MusserBradley S. PowellGeoffrey Buscher
    President and Chief Executive OfficerSenior Vice President and Chief Financial OfficerDirector - Investor Relations
    (206) 674-3433(206) 674-3412(206) 892-4510

     

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