• Expeditors Reports Fourth Quarter 2017 EPS of $0.92

    来源: Nasdaq GlobeNewswire / 20 二月 2018 13:30:37   Europe/London

    SEATTLE, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced fourth 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 51% to $0.92 (includes a net income tax benefit from U.S. tax reform of $0.21)
    • Net Earnings Attributable to Shareholders increased 51% to $167 million (includes a net income tax benefit from U.S. tax reform of $39 million)
    • Operating Income increased 16% to $199 million
    • Revenues increased 16% to $1.90 billion
    • Net Revenues2 increased 15% to $629 million
    • Airfreight tonnage volumes increased 6% and ocean container volumes increased 1%

    “We executed well across all of our businesses in the fourth quarter, with improved performance throughout the second half of 2017,” said Jeffrey S. Musser, President and Chief Executive Officer. “The global freight industry is stronger than it was a year ago, particularly in certain key lanes and especially for shipments by air. In response to that continued robust demand, and combined with tight capacity and unpredictable rates, we continued to grow profitably by delivering outstanding services and solutions to our customers.

    “I credit our strong results to the hard work and discipline of everyone throughout our talented organization, as we continue to move higher volumes in all services with greater efficiency per-shipment. The vast majority of our dedicated employees work in the field at one of our many District operations, where they are close to our customers and greatly attuned to their individual supply chain needs. Because each District is responsible for its own P&L, we are all highly motivated to drive efficiency and growth in support of profitable business.”

    Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We continued to improve operational performance on many levels, pushing operating efficiency (operating income as a percentage of net revenue) to nearly 32% in Q4 and above 30% for the full year. We are managing our pricing well in a volatile rate environment, and we are controlling expenses by making the best of our investments in people, processes, and core technologies. We will continue to invest in people and systems to support profitable growth, while working to further hone our performance at the District level to move more freight and to move it more efficiently.”

    Mr. Powell also noted, “We were positively impacted by the implementation of U.S. tax law changes in Q4, which resulted in recognizing a $39 million net income tax benefit. The impact on our effective tax rate in future periods will largely depend on the mix of pretax earnings that we generate in our U.S. and foreign operations, as well as further interpretation of and guidance to be issued on the new tax law. At this time, we expect our effective tax rate in 2018 will be between 31% and 34% of pretax earnings.”

    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 services, order management, warehousing and distribution and customized logistics solutions.

    ________________________
    1Diluted 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.
    4th Quarter 2017 Earnings Release, February 20, 2018
     
    Financial Highlights for the Three months and Years ended 
    December 31, 2017 and 2016 (Unaudited) 
    (in 000's of US dollars except per share data)
     
     Three months ended
    December 31,
       Years ended
    December 31,
      
     2017 2016 % Change 2017 2016 % Change
    Revenues$1,901,371  $1,642,007  16% $6,920,948  $6,098,037  13%
    Net revenues3$628,809  $548,591  15% $2,319,189  $2,164,036  7%
    Operating income4$199,011  $172,210  16% $700,260  $670,163  4%
    Net earnings attributable to shareholders5$166,967  $110,590  51% $489,345  $430,807  14%
    Diluted earnings attributable to shareholders$0.92  $0.61  51% $2.69  $2.36  14%
    Basic earnings attributable to shareholders$0.94  $0.61  54% $2.73  $2.38  15%
    Diluted weighted average shares outstanding180,635  181,887    181,666  182,704   
    Basic weighted average shares outstanding177,523  180,201    179,247  181,282   
                    

     _______________________
    3 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.
    4 Operating Income in the fourth quarter of 2016 includes a $6 million foreign exchange gain recorded in customs brokerage and other services expenses that resulted from the devaluation of the Egyptian pound.
    5Net earnings in the fourth quarter of 2017 include a $39 million net income tax benefit that resulted from the effect of the 2017 Tax Cut and Jobs Act. This amount is composed of the remeasurement of net deferred tax liabilities and assets, based on the new lower U.S. corporate tax rate, the recording of a provisional estimate of the one-time mandatory tax on the undistributed earnings of the Company's non-U.S. subsidiaries, and the effects of the transition to a territorial tax system in the U.S.

    During the three and twelve-month periods ended December 31, 2017, the Company repurchased 2.1 million and 8.2 million shares of common stock at an average price of $64.52 and $58.16 per share, respectively. During the three and twelve-month periods ended December 31, 2016, the Company repurchased 1.3 million and 6.7 million shares of common stock at an average price of $54.31 and $50.53 per share, respectively.

     Employee Full-time Equivalents
    as of December 31,
     2017 2016
    North America6,091  5,835 
    Europe3,050  2,887 
    North Asia2,593  2,597 
    South Asia1,623  1,506 
    Middle East, Africa and India1,503  1,562 
    Latin America814  778 
    Information Systems884  877 
    Corporate386  376 
    Total16,944  16,418 
          


      Year-over-year percentage
    increase/(decrease) in:
      Airfreight kilos Ocean freight FEU
    2017    
    October 8%  (1)% 
    November 7%  1% 
    December 2%  2% 
    Quarter 6%  1% 
           

    _______________________

    Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 23, 2018 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about March 5, 2018.

    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 the strength of the global freight industry and continued robust demand, tight capacity and unpredictable rates. 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 move increased volumes with greater efficiency, employee motivation to drive efficiency and growth in support of profitability, our ability to manage pricing in a volatile environment, our ability to control expenses and optimize our investments to support profitable growth, and our ability to predict our effective tax rate in 2018; volatility in equity markets; energy and fuel prices; political changes; foreign exchange rates; regulatory actions or changes or the unpredictable acts of competitors and other risks; and 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)
     
     December 31,
     2017
     December 31,
    2016
    Assets   
    Current Assets:   
    Cash and cash equivalents$1,051,099  $974,435 
    Accounts receivable, net1,414,741  1,190,130 
    Other current assets75,612  54,014 
    Total current assets2,541,452  2,218,579 
    Property and equipment, net525,203  536,572 
    Goodwill7,927  7,927 
    Deferred Federal and state taxes, net13,207   
    Other assets, net29,219  27,793 
     $3,117,008  $2,790,871 
    Liabilities and Equity   
    Current Liabilities:   
    Accounts payable$866,305  $726,571 
    Accrued expenses, primarily salaries and related costs206,320  185,502 
    Federal, state and foreign income taxes20,494  17,858 
    Total current liabilities1,093,119  929,931 
    Noncurrent Federal income tax payable29,516   
    Deferred Federal and state income taxes  13,727 
    Commitments and contingencies   
    Shareholders’ Equity:   
    Preferred stock; none issued   
    Common stock, par value $0.01 per share; issued and outstanding 176,374 shares at December 31, 2017 and 179,857 shares at December 31, 20161,764  1,799 
    Additional paid-in capital546  2,642 
    Retained earnings2,063,512  1,944,789 
    Accumulated other comprehensive loss(73,964) (104,592)
    Total shareholders’ equity1,991,858  1,844,638 
    Noncontrolling interest2,515  2,575 
    Total equity1,994,373  1,847,213 
     $3,117,008  $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 Twelve months ended
     December 31, December 31,
     2017 2016 2017 2016
    Revenues:       
    Airfreight services$854,455  $688,835  $2,877,032  $2,453,347 
    Ocean freight and ocean services521,315  503,150  2,107,045  1,917,494 
    Customs brokerage and other services525,601  450,022  1,936,871  1,727,196 
    Total revenues1,901,371  1,642,007  6,920,948  6,098,037 
    Operating Expenses:       
    Airfreight services636,344  515,612  2,126,761  1,752,167 
    Ocean freight and ocean services380,689  371,989  1,543,740  1,378,699 
    Customs brokerage and other services255,529  205,815  931,258  803,135 
    Salaries and related costs336,961  289,544  1,267,120  1,157,635 
    Rent and occupancy costs31,906  27,783  119,732  108,812 
    Depreciation and amortization13,069  11,943  49,310  46,796 
    Selling and promotion11,814  11,946  44,290  41,763 
    Other36,048  35,165  138,477  138,867 
    Total operating expenses1,702,360  1,469,797  6,220,688  5,427,874 
    Operating income199,011  172,210  700,260  670,163 
            
    Interest income3,639  2,987  13,204  11,580 
    Other, net2,547  1,706  5,131  5,113 
    Other income, net6,186  4,693  18,335  16,693 
    Earnings before income taxes205,197  176,903  718,595  686,856 
    Income tax expense37,742  65,805  228,212  254,323 
    Net earnings167,455  111,098  490,383  432,533 
    Less net earnings attributable to the noncontrolling interest488  508  1,038  1,726 
    Net earnings attributable to shareholders$166,967  $110,590  $489,345  $430,807 
    Diluted earnings attributable to shareholders per share$0.92  $0.61  $2.69  $2.36 
    Basic earnings attributable to shareholders per share$0.94  $0.61  $2.73  $2.38 
    Dividends declared and paid per common share$0.42  $0.40  $0.84  $0.80 
    Weighted average diluted shares outstanding180,635  181,887  181,666  182,704 
    Weighted average basic shares outstanding177,523  180,201  179,247  181,282 
                


     
    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,
     2017 2016 2017 2016
    Operating Activities:       
    Net earnings$167,455  $111,098  $490,383  $432,533 
    Adjustments to reconcile net earnings to net cash from operating activities:       
    Provision for losses on accounts receivable2,169  146  5,356  2,607 
    Deferred income tax (benefit) expense(27,695) 13,493  (43,695) 15,835 
    Stock compensation expense11,872  10,953  50,908  45,217 
    Depreciation and amortization13,069  11,943  49,310  46,796 
    Other(4,234) (3,581) (4,382) (3,540)
    Changes in operating assets and liabilities:       
    Increase in accounts receivable(60,981) (108,384) (184,771) (102,297)
    Increase in accounts payable and accrued expenses18,499  28,568  114,631  102,716 
    Increase (decrease) in income taxes payable, net5,450  4,242  16,264  (12,370)
    Decrease (increase) in other current assets782  4,077  (5,365) 1,988 
    Net cash from operating activities126,386  72,555  488,639  529,485 
    Investing Activities:       
    Purchase of property and equipment(27,413) (19,343) (95,016) (59,316)
    Proceeds from sale of property and equipment84,062  37  84,405  229 
    Other, net161  611  (1,074) 5,891 
    Net cash from investing activities56,810  (18,695) (11,685) (53,196)
    Financing Activities:       
    Proceeds from issuance of common stock42,311  37,668  205,092  185,313 
    Repurchases of common stock(137,522) (69,561) (478,258) (337,658)
    Dividends paid(74,769) (72,123) (150,495) (145,123)
    Distribution to noncontrolling interest(904) (1,335) (904) (1,335)
    Net cash from financing activities(170,884) (105,351) (424,565) (298,803)
    Effect of exchange rate changes on cash and cash equivalents5,343  (16,774) 24,275  (10,847)
    Increase (decrease) in cash and cash equivalents17,655  (68,265) 76,664  166,639 
    Cash and cash equivalents at beginning of period1,033,444  1,042,700  974,435  807,796 
    Cash and cash equivalents at end of period$1,051,099  $974,435  $1,051,099  $974,435 
    Supplemental Cash Flow Information:       
    Cash paid for income taxes$58,793  $49,263  $249,704  $254,312 
                    


     
    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 December 31, 2017:                 
    Revenues from unaffiliated customers$496,584  68,362  27,349  703,578  186,715  307,432  111,351    1,901,371 
    Transfers between geographic areas31,807  3,581  3,693  6,266  6,479  14,008  5,532  (71,366)  
    Total revenues$528,391  71,943  31,042  709,844  193,194  321,440  116,883  (71,366) 1,901,371 
    Net revenues$270,999  34,441  14,565  137,776  45,816  93,458  31,294  460  628,809 
    Operating income$86,565  11,548  1,615  64,907  15,623  12,302  6,437  14  199,011 
    Identifiable assets$1,595,140  151,181  55,431  458,152  137,279  501,711  215,495  2,619  3,117,008 
    Capital expenditures$8,720  497  964  1,264  516  15,237  215    27,413 
    Depreciation and amortization$8,628  383  347  1,331  559  1,361  460    13,069 
    Equity$1,337,568  60,705  26,546  240,721  94,516  142,971  123,600  (32,254) 1,994,373 
    Three months ended December 31, 2016:                 
    Revenues from unaffiliated customers$434,083  61,034  21,840  637,327  161,516  238,526  87,681    1,642,007 
    Transfers between geographic areas26,459  2,637  3,525  5,363  5,913  10,706  5,424  (60,027)  
    Total revenues$460,542  63,671  25,365  642,690  167,429  249,232  93,105  (60,027) 1,642,007 
    Net revenues$234,779  31,088  13,802  114,116  42,547  77,361  34,590  308  548,591 
    Operating income$65,839  9,439  2,305  54,156  16,877  11,086  12,510  (2) 172,210 
    Identifiable assets$1,455,722  104,804  49,231  511,851  120,300  351,960  190,902  6,101  2,790,871 
    Capital expenditures$14,297  251  97  1,387  1,713  1,168  430    19,343 
    Depreciation and amortization$7,675  366  318  1,344  528  1,174  538    11,943 
    Equity$1,166,582  46,448  27,164  327,672  91,983  108,430  112,633  (33,699) 1,847,213 
                                


     UNITED
    STATES
     OTHER
    NORTH
    AMERICA
     LATIN
    AMERICA
     NORTH
    ASIA
     SOUTH
    ASIA
     EUROPE MIDDLE
    EAST,
    AFRICA

    and INDIA
     ELIMI-
    NATIONS
     CONSOLI-
    DATED
    Twelve months ended December 31, 2017:                 
    Revenues from unaffiliated customers$1,851,395  256,359  97,096  2,576,971  661,878  1,072,028  405,221    6,920,948 
    Transfers between geographic areas111,163  11,827  14,766  21,405  22,999  43,296  20,848  (246,304)  
    Total revenues$1,962,558  268,186  111,862  2,598,376  684,877  1,115,324  426,069  (246,304) 6,920,948 
    Net revenues$1,008,841  119,071  58,199  509,235  163,450  335,702  121,267  3,424  2,319,189 
    Operating income$277,821  38,131  9,964  248,422  53,057  48,491  24,365  9  700,260 
    Identifiable assets$1,595,140  151,181  55,431  458,152  137,279  501,711  215,495  2,619  3,117,008 
    Capital expenditures$28,212  1,563  4,612  3,756  1,688  53,954  1,231    95,016 
    Depreciation and amortization$32,017  1,546  1,277  5,326  2,215  5,068  1,861    49,310 
    Equity$1,337,568  60,705  26,546  240,721  94,516  142,971  123,600  (32,254) 1,994,373 
    Twelve months ended December 31, 2016:                 
    Revenues from unaffiliated customers$1,683,006  226,561  84,665  2,242,670  603,980  918,561  338,594    6,098,037 
    Transfers between geographic areas106,076  10,778  15,037  21,212  24,251  41,102  21,876  (240,332)  
    Total revenues$1,789,082  237,339  99,702  2,263,882  628,231  959,663  360,470  (240,332) 6,098,037 
    Net revenues$918,110  119,492  56,066  471,275  171,033  304,429  123,335  296  2,164,036 
    Operating income$250,715  32,530  13,321  230,777  64,967  42,195  35,672  (14) 670,163 
    Identifiable assets$1,455,722  104,804  49,231  511,851  120,300  351,960  190,902  6,101  2,790,871 
    Capital expenditures$39,531  1,727  1,038  3,889  3,038  7,554  2,539    59,316 
    Depreciation and amortization$29,939  1,479  1,187  5,455  2,177  4,576  1,983    46,796 
    Equity$1,166,582  46,448  27,164  327,672  91,983  108,430  112,633  (33,699) 1,847,213 
                                

    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 operating 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 include 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 Twelve months ended
     December 31, December 31,
    (in thousands)2017 2016 2017 2016
    Total revenues$1,901,371  $1,642,007  $6,920,948  $6,098,037 
    Expenses:       
    Airfreight services636,344  515,612  2,126,761  1,752,167 
    Ocean freight and ocean services380,689  371,989  1,543,740  1,378,699 
    Customs brokerage and other services255,529  205,815  931,258  803,135 
    Net revenues$628,809  $548,591  $2,319,189  $2,164,036 
                    

    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

    By:  Expeditors International of Washington, Inc.
    1015 Third Avenue, Suite 1200
    Seattle, Washington 98104

    Primary Logo

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