SEATTLE--(Business Wire)--
Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced quarterly total revenues and operating income of
$1,446,582,000 and $107,616,000 compared with $1,244,348,000 and
$99,655,000 for the same quarter of 2006, increases of 16% and 8%,
respectively. Net earnings were $70,057,000 for the fourth quarter of
2007, compared with $62,610,000 for 2006, an increase of 12%. Net
revenues for the fourth quarter of 2007 increased 13% to $379,441,000
as compared with $335,855,000 reported for the fourth quarter of 2006.
Diluted net earnings per share for the fourth quarter were $.32 as
compared with $.28 for the same quarter in 2006, an increase of 14%.
The Company also reported that same store net revenues and operating
income increased 13% and 8%, respectively, for the fourth quarter of
2007 when compared with 2006.
For the year ended December 31, 2007, total revenues and operating
income were $5,235,171,000 and $423,400,000 compared with
$4,633,987,000 and $375,116,000 for the same period in 2006, increases
of 13% respectively. Net earnings rose to $269,154,000 from
$235,094,000 in 2006, an increase of 14%. Net revenues for the year
increased to $1,452,961,000 from $1,290,960,000 for 2006, up 13%.
Diluted net earnings per share for the year 2007 were $1.21 as
compared with $1.06 for the same period of 2006, also an increase of
14%. Same store net revenues and operating income increased 12% and
13%, respectively, for the year ended December 31, 2007, when compared
with the same period of 2006.
"We had a very solid 2007 and can look back with satisfaction at
what we have accomplished this year," said Peter J. Rose, Chairman and
Chief Executive Officer. "We also think we did just fine in the fourth
quarter considering some of the unanticipated costs we had to absorb
relative to the Department of Justice's (DOJ) ongoing investigation of
the major players in our industry. Legal fees and record keeping
requirements associated with complying with the DOJ's subpoena cost us
nearly $4 million this quarter. We're not making excuses, we're just
explaining," Rose commented.
"Looking forward to 2008, as we witness the political and economic
media pundit du jour doing his or her best to talk us all into
participating in some kind of a celebratory recession, we'll continue
to do what we do best. We will focus on improving customer service and
gaining market share. If we'd listened to these people back in 1981,
we would have never started this Company in the first place. As is our
practice whenever the economic 'doom and gloomsayers' show up, we've
officially banned the use of the 'R' word here at Expeditors. When
others perceive things are slowing in the short term, we see
opportunity for the long term," Rose concluded.
Expeditors is a global logistics company headquartered in Seattle,
Washington. The company employs trained professionals in 175 full
service offices, 68 satellite locations and 4 international service
centers 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.
Certain 2006 amounts have been reclassified to conform to the 2007
presentation.
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Expeditors International of Washington, Inc.
Financial Highlights
Three months and Year ended
December 31, 2007 and 2006
Unaudited
(in 000's of US dollars except share data)
Three months ended
December 31,
-----------------------
2007 2006 % Inc.
----------- ----------- ------
Revenues $ 1,446,582 $ 1,244,348 16%
Net revenues $ 379,441 $ 335,855 13%
Operating income $ 107,616 $ 99,655 8%
Net earnings $ 70,057 $ 62,610 12%
Diluted earnings per share $ .32 $ .28 14%
Basic earnings per share $ .33 $ .29 14%
Diluted weighted average shares
outstanding 221,192,441 223,282,511
Basic weighted average shares
outstanding 213,095,428 213,148,011
Year ended December 31,
-----------------------
2007 2006 % Inc.
----------- ----------- ------
Revenues $ 5,235,171 $ 4,633,987 13%
Net revenues $ 1,452,961 $ 1,290,960 13%
Operating income $ 423,400 $ 375,116 13%
Net earnings $ 269,154 $ 235,094 14%
Diluted earnings per share $ 1.21 $ 1.06 14%
Basic earnings per share $ 1.26 $ 1.10 15%
Diluted weighted average shares
outstanding 221,799,868 222,223,312
Basic weighted average shares
outstanding 213,314,761 213,454,579
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Offices opened during the Fourth Quarter of 2007
((a) = Full Service, (b) = Satellite)
----------------------------------------------------------------------
ASIA SOUTH PACIFIC
---------------------------------- -----------------------------------
Yantai, People's Republic of Christchurch, New Zealand(b)
China(a) (Satellite of Auckland)
(Converted from a Satellite to a
Full Service)
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Investors may submit written questions via e-mail to:
investor@expeditors.com
Or by fax to: 206-674-3459
Questions received by the end of business on February 14, 2008
will be considered in management's 8-K "Responses to Selected
Questions" expected to be filed on or about February 22, 2008.
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
December 31, December 31,
Assets 2007 2006
-------------------------------------------- ------------ ------------
Current assets:
Cash and cash equivalents $ 574,599 $ 511,358
Short-term investments 674 578
Accounts receivable, net 933,519 811,486
Deferred Federal and state income taxes 8,278 7,490
Other current assets 17,627 10,925
------------ ------------
Total current assets 1,534,697 1,341,837
------------ ------------
Property and equipment, net 497,892 449,247
Goodwill, net 7,927 7,927
Other intangibles, net 7,832 7,584
Other assets 20,717 15,743
------------ ------------
$ 2,069,065 $ 1,822,338
============ ============
Liabilities and Shareholders' Equity
--------------------------------------------
Current liabilities:
Accounts payable 613,108 544,028
Accrued expenses, primarily salaries and
related costs 129,669 122,081
Federal, state and foreign income taxes 26,976 43,036
------------ ------------
Total current liabilities $ 769,753 $ 709,145
------------ ------------
Deferred Federal and state income taxes $ 55,533 $ 26,827
Minority interest $ 17,208 $ 16,275
Shareholders' equity:
Preferred stock, par value $.01 per share.
Authorized 2,000,000 shares; none issued -- --
Common stock, par value $.01 per share.
Authorized 320,000,000 shares; issued
and outstanding 212,996,776 shares at
December 31, 2007 and 213,080,466
shares at December 31, 2006 2,130 2,131
Additional paid-in capital 50,006 119,582
Retained earnings 1,143,464 934,058
Accumulated other comprehensive income 30,971 14,320
------------ ------------
Total shareholders' equity 1,226,571 1,070,091
------------ ------------
------------ ------------
$ 2,069,065 $ 1,822,338
============ ============
Certain 2006 amounts have been reclassified to conform to the 2007
presentation.
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
------------- ------------- ------------- -------------
Revenues:
Airfreight $ 696,835 $ 617,989 $ 2,407,582 $ 2,229,545
Ocean freight
and ocean
services 474,613 394,897 1,820,558 1,553,048
Customs
brokerage and
other
services 275,134 231,462 1,007,031 851,394
------------- ------------- ------------- -------------
Total
revenues 1,446,582 1,244,348 5,235,171 4,633,987
------------- ------------- ------------- -------------
Operating
expenses:
Airfreight
consolidation 561,464 495,104 1,879,434 1,758,907
Ocean freight
consolidation 385,751 314,900 1,473,942 1,230,468
Customs
brokerage and
other
services 119,926 98,489 428,834 353,652
Salaries and
related costs 206,519 184,402 791,879 701,824
Rent and
occupancy
costs 17,514 14,655 67,676 61,627
Depreciation
and
amortization 9,763 9,428 39,303 35,448
Selling and
promotion 11,168 9,652 38,735 35,050
Other 26,861 18,063 91,968 81,895
------------- ------------- ------------- -------------
Total
operating
expenses 1,338,966 1,144,693 4,811,771 4,258,871
------------- ------------- ------------- -------------
Operating
income 107,616 99,655 423,400 375,116
------------- ------------- ------------- -------------
Interest
expense (37) (157) 45 (198)
Interest
income 6,005 5,120 22,341 18,020
Other, net 419 (149) 3,887 2,726
------------- ------------- ------------- -------------
Other
income,
net 6,387 4,814 26,273 20,548
------------- ------------- ------------- -------------
Earnings
before income
taxes and
minority
interest 114,003 104,469 449,673 395,664
Income tax
expense 43,590 40,973 179,815 160,661
------------- ------------- ------------- -------------
Net
earnings
before
minority
interest 70,413 63,496 269,858 235,003
------------- ------------- ------------- -------------
Minority
interest (356) (886) (704) 91
------------- ------------- ------------- -------------
Net
earnings $ 70,057 $ 62,610 $ 269,154 $ 235,094
============= ============= ============= =============
Diluted
earnings per
share $ 0.32 $ 0.28 $ 1.21 $ 1.06
============= ============= ============= =============
Basic earnings
per share $ 0.33 $ 0.29 $ 1.26 $ 1.10
============= ============= ============= =============
Weighted
average
diluted
shares
outstanding 221,192,441 223,282,511 221,799,868 222,223,312
============= ============= ============= =============
Weighted
average basic
shares
outstanding 213,095,428 213,148,011 213,314,761 213,454,579
============= ============= ============= =============
Certain 2006 amounts have been reclassified to conform to the 2007
presentation.
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
--------- -------- --------- ---------
Operating Activities:
Net earnings $70,057 $62,610 $269,154 $235,094
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Provision for losses on
accounts receivable 594 445 940 1,197
Deferred income tax expense
(benefit) (6,465) (11,795) 18,991 4,172
Excess tax benefits from
stock plans (2,333) (1,204) (28,105) (23,406)
Stock compensation expense 10,208 12,110 44,917 41,739
Depreciation and amortization 9,763 9,428 39,303 35,448
Loss (gain) on sale of assets (49) 32 (1,053) (182)
Minority interest in earnings
of consolidated entities 356 886 704 (91)
Other 415 397 1,472 3,897
Changes in operating assets
and liabilities:
Decrease (increase) in
accounts receivable 85,717 (657) (84,950) (96,414)
Decrease (increase) in
other current assets 1,983 2,351 (342) (1,571)
Increase (decrease) in
accounts payable and other
current liabilities (94,672) (28,294) 46,881 85,012
Increase (decrease) in
taxes payable, net (2,514) 8,589 4,673 48,392
--------- -------- --------- ---------
Net cash provided by operating
activities 73,060 54,898 312,585 333,287
--------- -------- --------- ---------
Investing Activities:
Increase in short-term
investments (198) (166) (10) (419)
Purchase of property and
equipment (11,953) (9,724) (82,786) (139,464)
Proceeds from sale of property
and equipment 90 80 504 397
Prepayment on long-term land
lease (4) - (2,820) (1,761)
Other (473) 253 (2,859) (1,260)
--------- -------- --------- ---------
Net cash used in investing
activities (12,538) (9,557) (87,971) (142,507)
--------- -------- --------- ---------
Financing Activities:
Net distributions to minority
interests - (5,971) (316) (10,024)
Proceeds from issuance of
common stock 5,529 3,941 64,985 49,314
Repurchases of common stock (21,467) (18,016) (207,584) (175,783)
Excess tax benefits from stock
plans 2,333 1,204 28,105 23,406
Dividends paid (29,846) (23,444) (59,748) (47,020)
--------- -------- --------- ---------
Net cash used in financing
activities (43,451) (42,286) (174,558) (160,107)
Effect of exchange rate changes
on cash 346 8,774 13,185 16,791
--------- -------- --------- ---------
Increase in cash and cash
equivalents 17,417 11,829 63,241 47,464
Cash and cash equivalents at
beginning of period 557,182 499,529 511,358 463,894
Cash and cash equivalents at
end of period 574,599 511,358 574,599 511,358
========= ======== ========= =========
Interest and taxes paid:
Interest 49 140 83 194
Income tax 47,814 42,951 146,353 103,715
Certain 2006 amounts have been reclassified to conform to the 2007
presentation.
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Business Segment Information
(In thousands)
(Unaudited)
United Other Far Australia/
States N. East Europe New
America Zealand
---------- -------- --------- ------- ----------
Three months ended
December 31, 2007
Revenues from
unaffiliated
customers $ 289,736 37,373 822,553 191,512 21,203
Transfers between
geographic areas $ 27,880 2,616 5,066 11,068 2,376
---------- -------- --------- ------- ----------
Total revenues $ 317,616 39,989 827,619 202,580 23,579
========== ======== ========= ======= ==========
Net revenues $ 155,236 18,058 96,653 68,201 12,485
Operating income $ 23,325 6,251 49,773 15,696 3,615
Identifiable assets
at quarter end $ 939,203 72,150 422,038 443,758 34,174
Capital expenditures $ 4,392 583 3,354 2,258 281
Depreciation and
amortization $ 5,347 324 1,154 1,856 255
Equity $1,371,296 32,309 306,115 156,349 19,410
---------- -------- --------- ------- ----------
Three months ended
December 31, 2006
Revenues from
unaffiliated
customers $ 244,506 31,661 721,165 161,801 14,565
Transfers between
geographic areas $ 27,109 2,128 4,108 9,035 1,780
---------- -------- --------- ------- ----------
Total revenues $ 271,615 33,789 725,273 170,836 16,345
========== ======== ========= ======= ==========
Net revenues $ 138,390 15,727 88,717 59,765 9,067
Operating income $ 21,982 4,512 45,746 15,744 2,468
Identifiable assets
at quarter end $ 906,256 62,584 360,904 363,332 26,055
Capital expenditures $ 5,863 299 2,010 846 71
Depreciation and
amortization $ 5,072 325 1,339 1,736 201
Equity $1,215,454 26,160 249,017 117,738 14,844
---------- -------- --------- ------- ----------
Twelve months ended
December 31, 2007
Revenues from
unaffiliated
customers $1,069,734 134,436 2,959,873 684,661 71,091
Transfers between
geographic areas $ 105,263 9,030 18,234 36,563 7,854
---------- -------- --------- ------- ----------
Total revenues $1,174,997 143,466 2,978,107 721,224 78,945
========== ======== ========= ======= ==========
Net revenues $ 586,938 65,534 402,613 245,761 42,044
Operating income $ 120,311 15,893 197,017 50,762 11,913
Identifiable assets
at quarter end $ 939,203 72,150 422,038 443,758 34,174
Capital expenditures $ 25,437 1,899 41,773 7,879 1,420
Depreciation and
amortization $ 21,204 1,321 4,917 7,759 922
Equity $1,371,296 32,309 306,115 156,349 19,410
---------- -------- --------- ------- ----------
Twelve months ended
December 31, 2006
Revenues from
unaffiliated
customers $ 940,186 120,381 2,616,098 618,999 54,948
Transfers between
geographic areas $ 109,552 7,956 16,228 32,595 6,383
---------- -------- --------- ------- ----------
Total revenues $1,049,738 128,337 2,632,326 651,594 61,331
========== ======== ========= ======= ==========
Net revenues $ 533,060 61,531 359,613 216,110 32,894
Operating income $ 102,041 15,433 178,265 48,366 8,887
Identifiable assets
at quarter end $ 906,256 62,584 360,904 363,332 26,055
Capital expenditures $ 121,005 820 8,269 6,086 446
Depreciation and
amortization $ 18,533 1,339 5,108 6,739 785
Equity $1,215,454 26,160 249,017 117,738 14,844
---------- -------- --------- ------- ----------
Latin Middle Elimi- Consoli-
America East nations dated
-------- ------- --------- ---------
Three months ended December 31,
2007
Revenues from unaffiliated
customers 20,414 63,791 1,446,582
Transfers between geographic areas 3,226 3,519 (55,751) -
------- ------- --------- ---------
Total revenues 23,640 67,310 (55,751) 1,446,582
======= ======= ========= =========
Net revenues 11,222 17,586 379,441
Operating income 3,508 5,448 107,616
Identifiable assets at quarter end 46,492 100,934 10,316 2,069,065
Capital expenditures 302 783 11,953
Depreciation and amortization 322 505 9,763
Equity 25,341 48,477 (732,726) 1,226,571
------- ------- --------- ---------
Three months ended December 31,
2006
Revenues from unaffiliated
customers 17,248 53,402 1,244,348
Transfers between geographic areas 2,272 3,149 (49,581) -
------- ------- --------- ---------
Total revenues 19,520 56,551 (49,581) 1,244,348
======= ======= ========= =========
Net revenues 9,069 15,120 335,855
Operating income 3,034 6,169 99,655
Identifiable assets at quarter end 33,273 67,794 2,140 1,822,338
Capital expenditures 145 490 9,724
Depreciation and amortization 395 360 9,428
Equity 16,133 31,570 (600,825) 1,070,091
------- ------- --------- ---------
Twelve months ended December 31,
2007
Revenues from unaffiliated
customers 79,314 236,062 5,235,171
Transfers between geographic areas 11,640 13,883 (202,467) -
------- ------- --------- ---------
Total revenues 90,954 249,945 (202,467) 5,235,171
======= ======= ========= =========
Net revenues 42,920 67,151 1,452,961
Operating income 9,958 17,546 423,400
Identifiable assets at quarter end 46,492 100,934 10,316 2,069,065
Capital expenditures 1,259 3,119 82,786
Depreciation and amortization 1,523 1,657 39,303
Equity 25,341 48,477 (732,726) 1,226,571
------- ------- --------- ---------
Twelve months ended December 31,
2006
Revenues from unaffiliated
customers 67,463 215,912 4,633,987
Transfers between geographic areas 8,368 11,293 (192,375) -
------- ------- --------- ---------
Total revenues 75,831 227,205 (192,375) 4,633,987
======= ======= ========= =========
Net revenues 32,931 54,821 1,290,960
Operating income 7,519 14,605 375,116
Identifiable assets at quarter end 33,273 67,794 2,140 1,822,338
Capital expenditures 1,205 1,633 139,464
Depreciation and amortization 1,548 1,396 35,448
Equity 16,133 31,570 (600,825) 1,070,091
------- ------- --------- ---------
Certain 2006 amounts have been reclassified to conform to the 2007
presentation.
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Expeditors International of Washington, Inc.
President and Chief Operating Officer
R. Jordan Gates, 206-674-3427
Copyright Business Wire 2008
