Expeditors Reports Second Quarter 2013 EPS of $.45 Per Share 1
Expeditors Reports Second Quarter 2013 EPS of $.45 Per Share1
SEATTLE--(BUSINESS WIRE)-- Expeditors International of Washington, Inc. (NAS: EXPD) today announced net earnings attributable to shareholders of $92,315,000 for the second quarter of 2013, as compared with $83,955,000for the same quarter of 2012, an increase of 10%. Net revenues2 for the second quarter of 2013 increased 3% to $469,101,000 as compared with $453,651,000 for the same quarter in 2012. Total revenues and operating income were $1,500,453,000 and $143,579,000in the second quarter of 2013, as compared with $1,504,952,000 and $132,403,000 for the same quarter of 2012, a marginal decrease and an increase of 8%, respectively. Diluted net earnings attributable to shareholders per share for the second quarter were $.45, as compared with $.39 for the same quarter in 2012, an increase of 15%.
For the six months ended June 30, 2013, net earnings attributable to shareholders was $172,630,000, as compared with $160,662,000 in 2012, an increase of 7%. Net revenues for the six months increased to $914,385,000 from $900,222,000 for 2012, up 2%. Total revenues and operating income for the six months were $2,910,938,000 and $272,097,000 in 2013, as compared with $2,916,322,000 and $257,674,000 for the same period in 2012, a marginal decrease and an increase of 6%, respectively. Diluted net earnings attributable to shareholders per share for the first two quarters of 2013 were $.83, as compared with $.75 for the same period of 2012, an increase of 11%.
"These results are very significant to us and we continue to be encouraged by our progress. The beginning signs of improvement we noticed during our 2013 first quarter, picked up during the second quarter," said Peter J. Rose, Chairman and Chief Executive Officer. "While the global economy is still slowly emerging from the fundamental problems that have held it in thrall over the last five years, and slowly is the operative word, we've selectively grown market share this quarter. Our airfreight volumes were up again, for the third straight quarter, by 5%. Ocean FEU count on a yearly quarter-over-quarter basis was up 2%, as was our order management activity. The volatility of the pricing environment continues to require focused attention to both the buy and sell elements of the air and ocean marketplace. We think these results prove we did a good job of that during the second quarter," Rose went on to say.
"Moving successfully through difficult times without having those difficult times move through us requires commitment to and confidence in the power of our culture and faith in our people and their knowledge and ability to execute in the markets we deal in," Rose continued. "It takes discipline and integrity to win short-term market share battles without losing the long-term profitability wars that successful companies are built upon and which creates long-term shareholder value. Many businesses struggle with executing that strategic trade-off. Fortunately for us, our people, who are the core and cause of our success, have admirably demonstrated that they have ample amounts of both. We're grateful for their efforts and we're grateful to our customers, and our shareholders, who both benefit from the aligned efforts of our people," 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 Non-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 2013 Earnings Release, August 6, 2013|
|Financial Highlights for the Three and Six months ended June 30, 2013 and 2012 (Unaudited)|
(in 000's of US dollars except share data)
|Three months ended June 30,||Six months ended June 30,|
|Net earnings attributable to shareholders||$||92,315||$||83,955||10||%||$||172,630||$||160,662||7||%|
|Diluted earnings attributable to shareholders||$||.45||$||.39||15||%||$||.83||$||.75||11||%|
|Basic earnings attributable to shareholders||$||.45||$||.40||13||%||$||.84||$||.76||11||%|
|Diluted weighted average shares outstanding||207,192,534||213,212,912||207,421,805||213,683,587|
|Basic weighted average shares outstanding||206,444,464||211,724,082||206,459,701||211,910,872|
1 Non-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.
|Employee headcount as of June 30,|
|Europe and Africa||2,323||2,308|
|Middle East and India||1,213||1,249|
|Year-over-year percentage increase in:|
|Airfreight kilos||Ocean freight FEU|
Investors may submit written questions via e-mail to:email@example.com. Questions received by the end of business on August 9, 2013 will be considered in management's 8-K "Responses to Selected Questions" expected to be filed on or about August 23, 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 recovery of global economy; ability to grow market share; ability to successfully manage volatile buy and sell rates; ability to execute and create long-term shareholder 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, 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.|
|Condensed Consolidated Balance Sheets|
|(In thousands, except share data)|
|June 30, 2013||December 31, 2012|
|Cash and cash equivalents||$||1,286,109||$||1,260,842|
|Accounts receivable, net||1,018,337||1,031,376|
|Deferred Federal and state income taxes||11,999||12,102|
|Other current assets||69,431||53,140|
|Total current assets||2,475,778||2,357,599|
|Property and equipment, net||549,583||556,204|
|Other assets, net||30,377||32,395|
Liabilities and Equity
|Accrued expenses, primarily salaries and related costs||196,789||178,995|
|Federal, state and foreign income taxes||18,228||21,970|
|Total current liabilities||860,213||842,558|
|Deferred Federal and state income taxes||81,510||78,997|
|Commitments and contingencies|
|Preferred stock; none issued||—||—|
|Common stock, par value $.01 per share; issued and outstanding 206,321,425 shares at June 30, 2013 and 206,392,013 shares at December 31, 2012||2,063||2,064|
|Additional paid-in capital||3,534||1,283|
|Accumulated other comprehensive (loss) income||(15,105||)||5,734|
|Total shareholders' equity||2,119,841||2,027,699|
|EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.|
|Condensed Consolidated Statements of Earnings|
|(In thousands, except share data)|
|Three months ended||Six months ended|
|June 30,||June 30,|
|Ocean freight and ocean services||492,007||518,998||937,486||953,334|
|Customs brokerage and other services||365,477||347,413||710,109||685,535|
|Ocean freight and ocean services||380,727||413,447||725,650||745,401|
|Customs brokerage and other services||167,609||153,543||322,968||305,345|
|Salaries and related costs||255,569||249,925||503,986||496,057|
|Rent and occupancy costs||22,132||20,853||43,789||42,029|
|Depreciation and amortization||11,674||9,670||22,952||19,215|
|Selling and promotion||8,328||8,860||15,585||17,523|
|Total operating expenses||1,356,874||1,372,549||2,638,841||2,658,648|
|Other income, net||7,395||6,510||12,169||10,347|
|Earnings before income taxes||150,974||138,913||284,266||268,021|
|Income tax expense||58,311||54,892||110,993||107,278|
|Less net earnings attributable to the noncontrolling interest||348||66||643||81|
|Net earnings attributable to shareholders||$||92,315||$||83,955||$||172,630||$||160,662|
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