There were 516 press releases posted in the last 24 hours and 171,131 in the last 365 days.

Expeditors Reports Second Quarter 2017 EPS of $0.60

SEATTLE, Aug. 08, 2017 (GLOBE NEWSWIRE) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced second quarter 2017 financial results including the following highlights compared to the same quarter of 2016:

  • Diluted Net Earnings Attributable to Shareholders per share (EPS1) decreased 5% to $0.60
  • Net Earnings Attributable to Shareholders decreased 6% to $109 million
  • Operating Income decreased 6% to $168 million
  • Revenues increased 13% to $1.7 billion
  • Net Revenues2 increased 2% to $564 million
  • Airfreight tonnage volume increased 9% and ocean container volume increased 4%

/EIN News/ -- “Volumes remain strong across all of our services and we believe we continue to take profitable market share,” said Jeffrey S. Musser, President and Chief Executive Officer. “Our order management, warehousing and distribution, Transcon, and customs brokerage businesses performed exceptionally well during the quarter. While we experienced similar margin pressures that we have seen in recent quarters in our air and ocean offerings, we recorded some of the highest freight volumes in our company’s history. As always, our people provided outstanding customer service and performed extremely well in this environment.

“Global demand for air and ocean capacity continues to be stronger than we have seen in the past few years, which has led to a scarcity of favorable pricing. As the rate environment continues to shift, we are being increasingly disciplined in how we work both with our customers and with our carrier partners to secure access to capacity. In June, we initiated rate increases in certain high-volume lanes in response to the current market and expect to see strong demand, tight capacity, and rate volatility to continue throughout the remainder of the year.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “All regions have added people to process additional shipment volumes in order to maintain our high level of customer service. We are handling more shipments and are doing so more efficiently than ever before. We continue to focus on implementing process improvements and investing in our core technologies that allow us to grow our business profitably. As the industry continues to evolve and innovate at a more rapid pace, we are also making additional investments to develop strategies, including the use of technologies that allow us to maintain our leadership position.”

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.
Second Quarter 2017 Earnings Release, August 8, 2017
Financial Highlights for the Three and Six months ended June 30, 2017 and 2016 (Unaudited)
(in 000's of US dollars except per share data)

  Three months ended June 30,       Six months ended June 30,    
  2017   2016   %
Change
  2017   2016   %
Change
Revenues $ 1,672,279     $ 1,475,164        13 %   $ 3,217,411     $ 2,893,636        11 %
Net revenues1 $ 563,633     $ 553,117     2 %   $ 1,091,238     $ 1,070,186     2 %
Operating income2 $ 168,240     $ 178,864     (6 )%   $ 314,354     $ 330,690     (5 )%
Net earnings attributable to shareholders $ 108,851     $ 116,052     (6 )%   $ 202,115     $ 212,636     (5 )%
Diluted earnings attributable to shareholders per share     $ 0.60     $ 0.63     (5 )%   $ 1.11     $ 1.16     (4 )%
Basic earnings attributable to shareholders per share $ 0.60     $ 0.64     (6 )%   $ 1.12     $ 1.17     (4 )%
Diluted weighted average shares outstanding 182,033     183,132         182,091     183,110      
Basic weighted average shares outstanding 180,012     181,753         180,037     181,882      

_______________________
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.

2Includes recovery of certain legal and related fees totaling $8 million for both the quarter and year-to date periods ended June 30, 2017 compared to $5 million in the same periods in 2016 and the favorable resolution of an indirect tax contingency of $6 million in the second quarter of 2017. We do not expect further recoveries in either matter.

During the three and six-month periods ended June 30, 2017, we repurchased 1.5 million and 2.5 million shares of common stock at an average price of $55.02 and $55.58 per share, respectively. During the three and six-month periods ended June 30, 2016, the Company repurchased 1.9 million and 3.4 million shares of common stock at an average price of $49.47 and $48.75 per share, respectively.

     Employee headcount as of June 30,  
  2017   2016
North America 6,002     5,732  
Europe 2,915     2,764  
North Asia 2,524     2,461  
Middle East, Africa and India           1,521     1,480  
South Asia 1,447     1,338  
Latin America 782     754  
Information Systems 892     795  
Corporate 366     341  
Total 16,449     15,665  


       Year-over-year percentage increase in:  
    Airfreight kilos   Ocean freight FEU
2017        
April                 9 %                     2 %
May   11 %   2 %
June   7 %   7 %
Quarter                                         9 %   4 %

_______________________
Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 11, 2017 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about August 21, 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 continuing to take profitable market share, the global demand for air and ocean capacity, favorable pricing, the shifting rate environment, our ability to secure access to capacity, our expectation that we will see strong demand, tight capacity, and rate volatility throughout the remainder of the year, our ability to maintain a high level of customer service, our ability to handle more shipments more efficiently than ever before, our ability to implement process improvements and invest in core technologies that allow us to grow our business profitably, and our ability to make investments to develop strategies, including the use of additional technologies that allow us to maintain our leadership position. 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, volatility in equity markets, energy and fuel prices, 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)
 
     June 30,    
2017
  December 31,
2016
Assets      
Current Assets:      
Cash and cash equivalents $ 1,114,910     $ 974,435  
Accounts receivable, net 1,215,278     1,190,130  
Other current assets 164,128     54,014  
 Total current assets 2,494,316     2,218,579  
Property and equipment, net 490,776     536,572  
Goodwill 7,927     7,927  
Other assets, net 29,737     27,793  
  $ 3,022,756     $ 2,790,871  
Liabilities and Equity      
Current Liabilities:      
Accounts payable $ 774,941     $ 726,571  
Accrued expenses, primarily salaries and related costs 211,376       185,502  
Federal, state and foreign income taxes 21,329     17,858  
 Total current liabilities 1,007,646     929,931  
Deferred Federal and state income taxes 36,473     13,727  
       
Commitments and contingencies      
       
Shareholders’ Equity:      
Preferred stock; none issued      
Common stock, par value $0.01 per share. Issued and outstanding 179,637 shares at June 30,
2017 and 179,857 shares at December 31, 2016
1,796     1,799  
Additional paid-in capital 11,152     2,642  
Retained earnings 2,049,403     1,944,789  
Accumulated other comprehensive loss (86,507 )   (104,592 )
Total shareholders’ equity 1,975,844     1,844,638  
Noncontrolling interest 2,793     2,575  
Total equity 1,978,637     1,847,213  
  $ 3,022,756     $ 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   Six months ended
  June 30,   June 30,
  2017   2016   2017   2016
Revenues:              
Airfreight services $ 671,868     $ 582,093     $ 1,287,413     $ 1,142,946  
Ocean freight and ocean services 528,585     464,692     1,022,344     918,884  
Customs brokerage and other services 471,826     428,379     907,654     831,806  
Total revenues 1,672,279     1,475,164     3,217,411     2,893,636  
Operating Expenses:              
Airfreight services 499,418     403,419     942,822     792,196  
Ocean freight and ocean services 385,927     323,699     751,990     646,719  
Customs brokerage and other services 223,301     194,929     431,361     384,535  
Salaries and related costs 318,529     293,532     611,109     576,887  
Rent and occupancy costs 29,163     27,079     57,293     53,938  
Depreciation and amortization 12,042     11,642     23,969     22,971  
Selling and promotion 10,953     10,251     21,868     19,683  
Other 24,706     31,749     62,645     66,017  
Total operating expenses 1,504,039     1,296,300     2,903,057     2,562,946  
Operating income 168,240     178,864     314,354     330,690  
Other Income (Expense):              
Interest income 3,380     2,890     6,121     5,669  
Other, net 2,190     1,603     2,488     2,482  
Other income (expense), net 5,570       4,493       8,609       8,151  
Earnings before income taxes 173,810     183,357     322,963     338,841  
Income tax expense 65,055     66,918     120,641     125,355  
Net earnings 108,755     116,439     202,322     213,486  
Less net (loss) earnings attributable to the noncontrolling interest   (96 )   387     207     850  
Net earnings attributable to shareholders $ 108,851     $ 116,052     $ 202,115     $ 212,636  
Diluted earnings attributable to shareholders per share $ 0.60     $ 0.63     $ 1.11     $ 1.16  
Basic earnings attributable to shareholders per share $ 0.60     $ 0.64     $ 1.12     $ 1.17  
Dividends declared and paid per common share $ 0.42     $ 0.40     $ 0.42     $ 0.40  
Weighted average diluted shares outstanding 182,033     183,132     182,091     183,110  
Weighted average basic shares outstanding 180,012     181,753     180,037     181,882  


EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
  Three months ended   Six months ended
  June 30,   June 30,
  2017     2016     2017     2016
Operating Activities:              
Net earnings $ 108,755     $ 116,439     $ 202,322     $ 213,486  
Adjustments to reconcile net earnings to net cash from operating activities:                
Provision for losses on accounts receivable 515     562     1,446     1,140  
Deferred income tax expense (benefit) 7,261     (6,115 )   12,854     3,781  
Stock compensation expense 17,203     12,957     27,826     23,788  
Depreciation and amortization 12,042     11,642     23,969     22,971  
Other, net (174 )   (6 )   (525 )   30  
Changes in operating assets and liabilities:              
(Increase) decrease in accounts receivable (73,142 )   (48,344 )   2,312     64,366  
Increase in accounts payable and accrued expenses 52,623     51,422     34,299     36,078  
Decrease in income taxes payable, net (47,159 )   (34,734 )   (27,335 )   (23,809 )
Decrease (increase) in other current assets 3,290     1,361     (275 )   (694 )
Net cash from operating activities 81,214     105,184     276,893     341,137  
Investing Activities:              
Purchase of property and equipment (20,380 )   (13,279 )   (33,141 )   (27,314 )
Other, net 40     4,414     (631 )   3,855  
Net cash from investing activities (20,340 )   (8,865 )   (33,772 )   (23,459 )
Financing Activities:              
Proceeds from issuance of common stock 51,501     48,488     96,866     90,123  
Repurchases of common stock (84,052 )   (96,115 )   (137,960 )   (166,407 )
Dividends paid (75,726 )   (73,000 )   (75,726 )   (73,000 )
Net cash from financing activities (108,277 )   (120,627 )   (116,820 )   (149,284 )
Effect of exchange rate changes on cash and cash equivalents 6,270     (9,345 )   14,174     4,074  
(Decrease) increase in cash and cash equivalents (41,133 )   (33,653 )   140,475     172,468  
Cash and cash equivalents at beginning of period 1,156,043     1,013,917     974,435     807,796  
Cash and cash equivalents at end of period $ 1,114,910     $ 980,264     $ 1,114,910     $ 980,264  
Taxes paid:              
Income taxes $ 103,508     $ 108,369     $ 132,654     $ 146,353  


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 June
30, 2017:  
                                 
Revenues from unaffiliated
customers
$ 452,217     62,554     23,463     620,050     157,698     259,533     96,764         1,672,279  
Transfers between
geographic areas
28,155     2,825     3,759     4,835     5,408     9,664     5,034     (59,680 )    
Total revenues $ 480,372     65,379     27,222     624,885     163,106     269,197     101,798     (59,680 )   1,672,279  
Net revenues $ 250,027     28,173     14,008     120,959     38,228     80,896     30,286     1,056     563,633  
Operating income $ 64,265     12,317     2,246     58,093     12,513     13,419     5,390     (3 )   168,240  
Identifiable assets $ 1,487,582     129,830     48,064     576,655     129,002     437,628     207,191     6,804     3,022,756  
Capital expenditures $ 6,852     569     957     663     409     10,501     429         20,380  
Depreciation and amortization       $ 7,731     386     300     1,362     556     1,227     480         12,042  
Equity $ 1,147,962     61,957     24,320     402,211     117,077     135,726     124,628     (35,244 )   1,978,637  
Three months ended June
30, 2016:
                                 
Revenues from unaffiliated
customers
$ 417,735     56,674     21,169     517,489     151,890     229,882     80,325         1,475,164  
Transfers between
geographic areas
28,973     2,671     4,187     5,385     6,326     10,097     5,507     (63,146 )    
Total revenues $ 446,708     59,345     25,356     522,874     158,216     239,979     85,832     (63,146 )   1,475,164  
Net revenues $ 232,860     30,815     14,468     122,117     46,257     77,639     28,975     (14 )   553,117  
Operating income $ 67,214     9,600     3,836     61,721     18,354     11,838     6,315     (14 )   178,864  
Identifiable assets $ 1,343,669     84,358     58,570     471,832     118,352     378,859     225,877     5,938     2,687,455  
Capital expenditures $ 8,778     445     317     678     351     2,140     570         13,279  
Depreciation and amortization $ 7,366     380     288     1,388     543     1,188     489         11,642  
Equity $ 1,069,876     38,638     39,482     309,557     78,668     133,387     141,315     (31,418 )   1,779,505  


(in thousands) UNITED
STATES
  OTHER
NORTH
AMERICA 
  LATIN
AMERICA
  NORTH
ASIA
  SOUTH
ASIA
  EUROPE   MIDDLE
EAST,
AFRICA
AND INDIA
  ELIMI-
NATIONS
  CONSOLI-
DATED
Six months ended June
30, 2017:
                                 
Revenues from unaffiliated
customers
$ 878,236     122,453     45,566     1,186,478     304,938     490,990     188,750         3,217,411  
Transfers between
geographic areas
52,468     5,464     7,394     9,886     10,839     18,986     9,998     (115,035 )    
Total revenues $ 930,704     127,917     52,960     1,196,364     315,777     509,976     198,748     (115,035 )   3,217,411  
Net revenues $ 480,812     53,966     28,924     232,792     76,223     156,854     60,017     1,650     1,091,238  
Operating income $ 116,611     17,368     5,697     111,445     25,737     25,065     12,433     (2 )   314,354  
Identifiable assets at period end   $ 1,487,582     129,830     48,064     576,655     129,002     437,628     207,191     6,804     3,022,756  
Capital expenditures $ 12,094     803     1,212     1,903     782     15,579     768         33,141  
Depreciation and amortization $ 15,484     758     620     2,682     1,087     2,398     940         23,969  
Equity $ 1,147,962     61,957     24,320     402,211     117,077     135,726     124,628     (35,244 )   1,978,637  
Six months ended June
30, 2016:
                                 
Revenues from unaffiliated
customers
$ 825,561     108,780     41,233     1,014,721     288,308     451,779     163,254         2,893,636  
Transfers between
geographic areas
55,007     5,371     7,788     10,481     12,132     20,458     10,901     (122,138 )    
Total revenues $ 880,568     114,151     49,021     1,025,202     300,440     472,237     174,155     (122,138 )   2,893,636  
Net revenues $ 453,558     58,193     28,201     232,908     85,775     152,180     59,382     (11 )   1,070,186  
Operating income $ 115,419     16,891     7,688     116,939     34,045     24,091     15,628     (11 )   330,690  
Identifiable assets at period end $ 1,343,669     84,358     58,570     471,832     118,352     378,859     225,877     5,938     2,687,455  
Capital expenditures $ 16,915     756     802     1,763     1,006     4,259     1,813         27,314  
Depreciation and amortization $ 14,698     744     541     2,707     1,055     2,286     940         22,971  
Equity $ 1,069,876     38,638     39,482     309,557     78,668     133,387     141,315     (31,418 )   1,779,505  


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   Six months ended
  June 30,   June 30,
(in thousands) 2017     2016     2017     2016
Total revenues $ 1,672,279     $ 1,475,164     $ 3,217,411     $ 2,893,636  
Expenses:              
Airfreight services 499,418     403,419     942,822     792,196  
Ocean freight and ocean services 385,927     323,699     751,990     646,719  
Customs brokerage and other services   223,301     194,929     431,361     384,535  
Net revenues $ 563,633     $ 553,117     $ 1,091,238     $ 1,070,186  

 

CONTACTS:

Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510

Primary Logo