Expeditors Reports First Quarter 2013 EPS of $.39 Per Share 1

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Expeditors Reports First Quarter 2013 EPS of $.39 Per Share1

SEATTLE--(BUSINESS WIRE)-- Expeditors International of Washington, Inc. (NAS: EXPD) today announced net earnings attributable to shareholders of $80,315,000 for the first quarter of 2013, as compared with $76,707,000for the same quarter of 2012, an increase of 5%. Net revenues and total revenues for the first quarter of 2013 decreased marginally to $445,284,000 and $1,410,485,000 as compared with $446,571,000 and $1,411,370,000, respectively, for the same quarter in 2012. Operating income was $128,518,000in the first quarter of 2013, as compared with $125,271,0002 for the same quarter of 2012, an increase of 3%. Diluted net earnings attributable to shareholders per share for the first quarter were $.39, as compared with $.36 for the same quarter in 2012, an increase of 8%.

"There is a certain stability in these quarterly results that may not be as apparent on the surface as they were re-assuring to us here," said Peter J. Rose, Chairman and Chief Executive Officer. "We had a strong finish in March and after having swum in deep waters for so long, it's somewhat invigorating to feel that your feet might actually be touching ground. We still have a ways to go, but despite the continued and well-publicized slide in global PC shipments, historically a large part of our tech business, our 2013 first quarter year-over-year airfreight tonnages were actually up, albeit marginally. This was the second consecutive quarter we've had year-over-year airfreight tonnage increases. While pricing was still somewhat volatile, it was great to see some sustained traction in year-over-year airfreight tonnage growth," Rose went on to say.


"As we look forward to the remainder of 2013, amid the obvious challenges, we do see cause for optimism. The same uncertainty that haunted the global economy in 2012 hasn't entirely gone away. That said, we feel increasingly confident about our ability to address these challenges," Rose continued. "We try to be very realistic here and not allow our perspectives to be overly swayed, either positively or negatively, by conventional financial media wisdom du jour. As we assess our current state, we feel much better about 2013 at the end of the first quarter of 2013 than we did about 2012 at the end of the first quarter of 2012. We have control over our expenses, we're 3% more profitable in our branch operations, and the investments we've made in our people and in our systems continue to build and strengthen the cultural foundation we rely on to create long-term stability. As always, we're grateful to our people for their steadfastness and their commitment to our customers and to each other. That's the kind of commitment our culture fosters and predictably, that's what gets us through tough times," Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 188 full-service offices and numerous satellite 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, domestic time definite transportation services, purchase order management and customized logistics solutions.

1 Diluted earnings attributable to shareholders per share.

2 Includes a European Commission fine of $5.5 million.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

First Quarter 2013 Earnings Release, May 1, 2013

Financial Highlights for the Three months ended March 31, 2013 and 2012 (Unaudited)

(in 000's of US dollars except share data)
 Three months ended March 31, 
2013 2012% Change 
Revenues$1,410,485$1,411,370%
Net revenues1$445,284$446,571%
Operating income$128,518$125,2713%
Net earnings attributable to shareholders$80,315$76,7075%
Diluted earnings attributable to shareholders$.39$.368%
Basic earnings attributable to shareholders$.39$.368%
Diluted weighted average shares outstanding207,613,863214,199,510
Basic weighted average shares outstanding206,475,095212,097,662
 

1Revenues less directly related operating expenses.

  Employee headcount as of March 31,
2013 2012
North America4,7054,702
Asia Pacific3,8674,006
Europe and Africa2,3402,292
Middle East and India1,2161,229
Latin America665644
Information Systems628578
Corporate273 234
Total13,69413,685
  Year-over-year percentage increase (decrease) in: 
Airfreight kilos  Ocean freight FEU
2013
January16%(3)%
February(11)%(5)%
March(1)%(4)%
Quarter.4%(4)%

Investors may submit written questions via e-mail to:investor@expeditors.com. Questions received by the end of business on May 3, 2013 will be considered in management's 8-K "Responses to Selected Questions" expected to be filed on or about May 10, 2013.

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 stability of future quarter results; ability to increase airfreight tonnage and maintain pricing levels; ability to control expenses; ability to improve branch profitability; and ability to make strategic investments in people and systems to create long-term value. 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.

AND SUBSIDIARIES

 


Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

    

March 31,
2013

December 31,
2012

Assets

Current Assets:
Cash and cash equivalents$1,394,687$1,260,842
Accounts receivable, net982,1191,031,376
Deferred Federal and state income taxes11,86712,102
Other current assets42,153 53,279
Total current assets2,430,826 2,357,599
Property and equipment, net546,698556,204
Goodwill7,9277,927
Other assets, net32,348 32,395
$3,017,799 $2,954,125

Liabilities and Equity

Current Liabilities:
Accounts payable629,190641,593
Accrued expenses, primarily salaries and related costs175,212178,995
Federal, state and foreign income taxes27,278 21,970
Total current liabilities831,680 842,558
Deferred Federal and state income taxes81,49878,997
 
Commitments and contingencies
 
Shareholders' Equity:
Preferred stock; none issued
Common stock, par value $.01 per share; issued and outstanding 206,475,743 shares at March 31, 2013 and 206,392,013 shares at December 31, 20122,0652,064
Additional paid-in capital5,9621,283
Retained earnings2,098,9332,018,618
Accumulated other comprehensive (loss) income(4,265)5,734
Total shareholders' equity2,102,695 2,027,699
Noncontrolling interest1,926 4,871
Total equity2,104,621 2,032,570
$3,017,799 $2,954,125
 
 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 


Condensed Consolidated Statements of Earnings

(In thousands, except share data)

 

(Unaudited)

 
Three months ended
March 31,
2013   2012
Revenues:
Airfreight services$620,374$638,912
Ocean freight and ocean services445,479434,336
Customs brokerage and other services344,632 338,122
Total revenues1,410,485 1,411,370
Operating Expenses:
Airfreight consolidation464,919481,043
Ocean freight consolidation344,923331,954
Customs brokerage and other services155,359151,802
Salaries and related costs248,417246,132
Rent and occupancy costs21,65721,176
Depreciation and amortization11,2789,545
Selling and promotion7,2578,663
Other28,157 35,784
Total operating expenses1,281,967 1,286,099
Operating income128,518 125,271
 
Interest income3,2433,360
Other, net1,531 477
Other income, net4,774 3,837
Earnings before income taxes133,292129,108
Income tax expense52,682 52,386
Net earnings80,610 76,722
Less net earnings attributable to the noncontrolling interest295 15
Net earnings attributable to shareholders$80,315 $76,707
Diluted earnings attributable to shareholders per share$.39 $.36
Basic earnings attributable to shareholders per share$.39 $.36
Weighted average diluted shares outstanding207,613,863 214,199,510
Weighted average basic shares outstanding206,475,095 212,097,662
 
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 


Condensed Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

 
Three months ended
March 31,
2013   2012
Operating Activities:
Net earnings$80,610$76,722
Adjustments to reconcile net earnings to net cash from operating activities:
Provision for losses (recoveries) on accounts receivable941(467)
Deferred income tax expense7,1225,481
Excess tax benefits from stock plans(1,099)(3,426)
Stock compensation expense11,00510,600
Depreciation and amortization11,2789,545
Other208217
Changes in operating assets and liabilities:
Decrease in accounts receivable38,85612,968
(Increase) decrease in other current assets(485)1,924
(Decrease) increase in accounts payable and accrued expenses(1,390)13,559
Increase in income taxes payable, net18,218 20,274 
Net cash from operating activities165,264 147,397 
Investing Activities:
Decrease (increase) in short-term investments, net38(15,780)
Purchase of property and equipment(10,068)(17,088)
Other, net(444)470 
Net cash from investing activities(10,474)(32,398)
Financing Activities:
Proceeds from issuance of common stock10,92912,920
Repurchases of common stock(17,681)(21,865)
Excess tax benefits from stock plans1,0993,426
Purchase of noncontrolling interest(7,730) 
Net cash from financing activities(13,383)(5,519)