• Expeditors Reports Second Quarter 2018 EPS of $0.79

    来源: Nasdaq GlobeNewswire / 07 八月 2018 15:44:44   Europe/London

    SEATTLE, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced second quarter 2018 financial results including the following highlights compared to the same quarter of 2017:

    • Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 32% to $0.79
    • Net Earnings Attributable to Shareholders increased 29% to $141 million
    • Operating Income increased 9% to $184 million
    • Revenues increased 17% to $2.0 billion
    • Net Revenues2 increased 14% to $643 million
    • Airfreight tonnage volume increased 4% and ocean container volume increased 1%

    “We continued to add profitable growth from new and existing customers during the quarter, particularly in air and some of our differentiated, best-in-class services, such as brokerage, Transcon, and order management,” said Jeffrey S. Musser, President and Chief Executive Officer. “Similar to the first quarter of this year, we remained disciplined on pricing in this strong economy. We experienced strong performance in our ocean forwarding and order management businesses, but ocean freight net revenues were down 5% on a 1% increase in volumes, as carriers took steps to mitigate the impact of volatile pricing, excess capacity, and higher fuel costs.

    “We are continuing to invest in people and assets in the development and support of profitable revenue growth, most notably during Q2 in Europe and North America. While we have yet to see changes to supply chains as a result of possible trade wars, we are confident in the capabilities of our people throughout our global network to help our customers navigate the potential impact of new tariffs.”

    Bradley S. Powell, Senior Vice President and Chief Financial Officer, added that the Company’s effective tax rate for the quarter was 25.8%, compared to 37.4% a year ago. The lower effective tax rate in the most recent quarter was principally due to the lower U.S. federal tax rate that resulted from the 2017 Tax Act, coupled with significant share-based compensation deductions from stock option exercises during the quarter. Mr. Powell emphasized that the Company’s effective tax rate in future periods will largely depend on the mix of pretax earnings that are generated in its U.S. versus foreign operations, as well as further interpretation of, and guidance to be issued on, the new tax law.

    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 2018 Earnings Release, August 7, 2018
    Financial Highlights for the Six months ended June 30, 2018 and 2017 (Unaudited)
    (in 000's of US dollars except per share data)

     Three months ended June 30, Six months ended June 30,
     2018 2017 % Change 2018 2017 % Change
    Revenues1$1,957,559  $1,672,279  17% $3,811,821  $3,217,411  18%
    Net revenues2$642,546  $563,633  14% $1,278,384  $1,091,238  17%
    Operating income3$183,584  $168,240  9% $376,402  $314,354  20%
    Net earnings attributable to shareholders$140,605  $108,851  29% $276,297  $202,115  37%
    Diluted earnings attributable to shareholders per share$0.79  $0.60  32% $1.54  $1.11  39%
    Basic earnings attributable to shareholders per share$0.80  $0.60  33% $1.58  $1.12  41%
    Diluted weighted average shares outstanding178,603  182,033    179,120  182,091   
    Basic weighted average shares outstanding174,754  180,012    175,324  180,037   

    _______________________
    1Effective January 1, 2018, the Company adopted required new revenue recognition guidance, resulting in a $22 million net reduction to the opening balance of retained earnings. In addition, in conjunction with the adoption of new revenue recognition guidance, the Company also changed the presentation of certain warehouse and distribution revenues from a net to a gross basis, which increased both revenues and operating expenses in  customs brokerage and other services by approximately $50 million in both the first and second quarters of 2018. Comparative prior year revenues (and the related volume information in the table below) has not been adjusted and continue to be reported under the Company's historical policies. 2018 reported revenues (and the related volume information) are reported under the Company's new revenue recognition accounting policies.

    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.

    3The quarter and year-to-date periods ended June 30, 2017 include the recovery of certain legal and related fees totaling $8 million and the favorable resolution of an indirect tax contingency of $6 million.

    During the three and six-month periods ended June 30, 2018, we repurchased 3.1 million and 5.8 million shares of common stock at an average price of $76.22 and $70.92 per share, respectively. 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.

     Employee Full-
    time Equivalents
    as of June 30,
     2018 2017
    North America6,414  6,009 
    Europe3,205  2,847 
    North Asia2,616  2,698 
    South Asia1,604  1,602 
    Middle East, Africa and India1,466  1,531 
    Latin America801  791 
    Information Systems892  881 
    Corporate351  390 
    Total17,349  16,749 


      Second quarter year-over-year
    percentage increase (decrease) in:
      Airfreight kilos Ocean freight FEU
    2018    
    April 1% (2)%
    May 6% 5%
    June 6% —%
    Quarter 4% 1%

    _______________________
    Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 10, 2018 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about August 24, 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 our ability to generate profitable market growth; our ability to help our customers navigate the potential impact of new tariffs; the impact of the 2017 Tax Act on our effective tax rate; energy and fuel prices; political changes; changes and uncertainties in governmental policies and inter-governmental disputes; foreign exchange rates; regulatory actions or changes; 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)

     June 30, 2018 December 31, 2017
    Assets   
    Current Assets:   
    Cash and cash equivalents$1,020,854  $1,051,099 
    Accounts receivable, net1,337,716  1,414,741 
    Deferred contract costs136,133   
    Other current assets69,438  75,612 
    Total current assets2,564,141  2,541,452 
    Property and equipment, net515,547  525,203 
    Goodwill7,927  7,927 
    Deferred Federal and state income taxes, net16,779  13,207 
    Other assets, net28,438  29,219 
     $3,132,832  $3,117,008 
    Liabilities and Equity   
    Current Liabilities:   
    Accounts payable$832,011  $866,305 
    Accrued expenses, primarily salaries and related costs227,148  206,320 
    Contract liabilities161,870   
    Federal, state and foreign income taxes19,244  20,494 
    Total current liabilities1,240,273  1,093,119 
    Noncurrent Federal income taxes payable  29,516 
        
    Commitments and contingencies   
        
    Shareholders’ Equity:   
    Preferred stock; none issued   
    Common stock, par value $0.01 per share. Issued and outstanding 173,577 shares at June 30, 2018 and 176,374 shares at December 31, 20171,736  1,764 
    Additional paid-in capital1,607  546 
    Retained earnings1,977,121  2,063,512 
    Accumulated other comprehensive loss(90,712) (73,964)
    Total shareholders’ equity1,889,752  1,991,858 
    Noncontrolling interest2,807  2,515 
    Total equity1,892,559  1,994,373 
     $3,132,832  $3,117,008 



    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,
     2018 2017 2018 2017
    Revenues:       
    Airfreight services$801,761  $671,868  $1,532,988  $1,287,413 
    Ocean freight and ocean services530,008  528,585  1,050,891  1,022,344 
    Customs brokerage and other services625,790  471,826  1,227,942  907,654 
    Total revenues1,957,559  1,672,279  3,811,821  3,217,411 
    Operating Expenses:       
    Airfreight services593,325  499,418  1,106,829  942,822 
    Ocean freight and ocean services385,156  385,927  764,574  751,990 
    Customs brokerage and other services336,532  223,301  662,034  431,361 
    Salaries and related costs350,948  318,529  690,843  611,109 
    Rent and occupancy costs38,071  29,163  74,984  57,293 
    Depreciation and amortization13,576  12,042  27,498  23,969 
    Selling and promotion10,788  10,953  21,753  21,868 
    Other45,579  24,706  86,904  62,645 
    Total operating expenses1,773,975  1,504,039  3,435,419  2,903,057 
    Operating income183,584  168,240  376,402  314,354 
    Other Income (Expense):       
    Interest income5,153  3,380  9,467  6,121 
    Other, net1,167  2,190  1,791  2,488 
    Other income (expense), net6,320  5,570  11,258  8,609 
    Earnings before income taxes189,904  173,810  387,660  322,963 
    Income tax expense48,958  65,055  110,514  120,641 
    Net earnings140,946  108,755  277,146  202,322 
    Less net earnings (loss) attributable to the noncontrolling interest341  (96) 849  207 
    Net earnings attributable to shareholders$140,605  $108,851  $276,297  $202,115 
    Diluted earnings attributable to shareholders per share$0.79  $0.60  $1.54  $1.11 
    Basic earnings attributable to shareholders per share$0.80  $0.60  $1.58  $1.12 
    Dividends declared and paid per common share$0.45  $0.42  $0.45  $0.42 
    Weighted average diluted shares outstanding178,603  182,033  179,120  182,091 
    Weighted average basic shares outstanding174,754  180,012  175,324  180,037 


    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,
     2018 2017 2018 2017
    Operating Activities:       
    Net earnings$140,946  $108,755  $277,146  $202,322 
    Adjustments to reconcile net earnings to net cash from operating activities:       
    Provision for losses on accounts receivable528  515  263  1,446 
    Deferred income tax expense3,235  7,261  6,088  12,854 
    Stock compensation expense18,002  17,203  29,269  27,826 
    Depreciation and amortization13,576  12,042  27,498  23,969 
    Other, net56  (174) 104  (525)
    Changes in operating assets and liabilities:       
    (Increase) decrease in accounts receivable(46,876) (73,142) 53,771  2,312 
    Decrease in accounts payable and accrued expenses58,075  52,623  12,231  34,299 
    Increase in deferred contract costs(20,019)   (16,612)  
    Decrease in contract liabilities20,294    12,893   
    Decrease in income taxes payable, net(38,059) (47,159) (18,550) (27,335)
    (Increase) decrease in other current assets(1,202) 3,290  (68) (275)
    Net cash from operating activities148,556  81,214  384,033  276,893 
    Investing Activities:       
    Purchase of property and equipment(12,113) (20,380) (25,909) (33,141)
    Other, net(1,564) 40  (1,995) (631)
    Net cash from investing activities(13,677) (20,340) (27,904) (33,772)
    Financing Activities:       
    Proceeds from issuance of common stock95,363  51,501  121,760  96,866 
    Repurchases of common stock(235,572) (84,052) (407,932) (137,960)
    Dividends paid(79,180) (75,726) (79,180) (75,726)
    Payments for taxes related to net share settlements(3,215)   (3,215)  
    Net cash from financing activities(222,604) (108,277) (368,567) (116,820)
    Effect of exchange rate changes on cash and cash equivalents(24,322) 6,270  (17,807) 14,174 
    (Decrease) increase in cash and cash equivalents(112,047) (41,133) (30,245) 140,475 
    Cash and cash equivalents at beginning of period1,132,901  1,156,043  1,051,099  974,435 
    Cash and cash equivalents at end of period$1,020,854  $1,114,910  $1,020,854  $1,114,910 
    Taxes paid:       
    Income taxes$85,612  $103,508  $124,131  $132,654 


    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, 2018:                 
    Revenues from unaffiliated customers$567,271  80,268  38,697  674,101  172,696  315,950  108,576    1,957,559 
    Transfers between geographic areas30,805  3,976  3,921  6,126  6,832  14,825  5,429  (71,914)  
    Total revenues$598,076  84,244  42,618  680,227  179,528  330,775  114,005  (71,914) 1,957,559 
    Net revenues$271,880  34,749  15,923  140,583  44,886  102,371  33,125  (971) 642,546 
    Operating income$63,628  10,077  2,701  70,359  13,374  16,958  6,490  (3) 183,584 
    Identifiable assets$1,488,060  153,827  54,186  540,954  157,479  526,607  217,716  (5,997) 3,132,832 
    Capital expenditures$6,032  2,191  167  559  695  1,225  1,244    12,113 
    Depreciation and amortization$8,447  473  395  1,303  542  1,955  461    13,576 
    Equity$1,196,226  56,702  26,625  250,513  112,259  157,493  127,032  (34,291) 1,892,559 
    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 areas28,155  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 


     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, 2018:                 
    Revenues from unaffiliated customers$1,102,140  156,793  71,419  1,304,673  341,296  621,742  213,758    3,811,821 
    Transfers between geographic areas59,686  7,538  7,308  12,143  13,382  29,013  10,784  (139,854)  
    Total revenues$1,161,826  164,331  78,727  1,316,816  354,678  650,755  224,542  (139,854) 3,811,821 
    Net revenues$549,065  65,196  30,668  277,791  89,292  201,006  66,326  (960) 1,278,384 
    Operating income$133,276  19,095  5,071  140,282  28,506  36,236  13,928  8  376,402 
    Identifiable assets at period end$1,488,060  153,827  54,186  540,954  157,479  526,607  217,716  (5,997) 3,132,832 
    Capital expenditures$9,203  3,719  672  1,343  1,024  8,416  1,532    25,909 
    Depreciation and amortization$17,212  871  763  2,679  1,125  3,931  917    27,498 
    Equity$1,196,226  56,702  26,625  250,513  112,259  157,493  127,032  (34,291) 1,892,559 
    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 areas52,468  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 

    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 revenues are 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)2018 2017 2018 2017
    Total revenues$1,957,559  $1,672,279  $3,811,821  $3,217,411 
    Expenses:       
    Airfreight services593,325  499,418  1,106,829  942,822 
    Ocean freight and ocean services385,156  385,927  764,574  751,990 
    Customs brokerage and other services336,532  223,301  662,034  431,361 
    Net revenues$642,546  $563,633  $1,278,384  $1,091,238 


    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

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