Expeditors Reports Third Quarter 2017 EPS of $0.66
November 07 2017 - 8:30AM
Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced third 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 12% to $0.66
- Net Earnings Attributable to Shareholders increased 12% to $120
million
- Operating Income increased 12% to $187 million
- Revenues increased 15% to $1.8 billion
- Net Revenues2 increased 10% to $599 million
- Airfreight tonnage volume increased 12% and ocean container
volume increased 4%
“This quarter represents the culmination of the efforts from our
staff over the last few quarters,” said Jeffrey S. Musser,
President and Chief Executive Officer. “We’ve spent a significant
amount of time working with our customers to bring pricing back in
line with the changes that have taken place in the market. While
accomplishing that task, our staff has also continued to provide
the high level of service that our customers have come to expect
from Expeditors. We remain extremely thankful for the exceptional
employees and customers with whom we get to work each day.
“While our current focus has shifted somewhat from volume growth
- due to the margin impacts that can occur - we continued to record
strong performance in all of our services, winning new business and
growing volumes with existing customers. We think the numbers speak
for themselves with regards to the quality of volume growth that we
are experiencing.”
Bradley S. Powell, Senior Vice President and Chief Financial
Officer, added, “Despite the highly unpredictable rate environment,
our people exercised careful restraint to bring our benchmark
operating income as a percentage of net revenue back above 30% for
the quarter, as compared to the first two quarters of 2017. We are
managing expenses well, as our growth in volumes has significantly
outpaced our growth in headcount. At the same time, we continue to
make critical investments in our technology and create additional
efficiencies for both ourselves and our customers."
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. |
Third Quarter 2017 Earnings Release, November 7,
2017 |
Financial Highlights for the Three and Nine months ended
September 30, 2017 and 2016
(Unaudited) |
(in 000's
of US dollars except per share data) |
|
|
|
|
|
|
|
|
|
Three months ended September
30, |
|
|
|
Nine months ended September 30, |
|
|
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
Revenues |
$ |
1,802,166 |
|
|
$ |
1,562,394 |
|
|
15 |
% |
|
$ |
5,019,577 |
|
|
$ |
4,456,030 |
|
|
13 |
% |
Net
revenues1 |
$ |
599,142 |
|
|
$ |
545,259 |
|
|
10 |
% |
|
$ |
1,690,380 |
|
|
$ |
1,615,445 |
|
|
5 |
% |
Operating
income |
$ |
186,895 |
|
|
$ |
167,263 |
|
|
12 |
% |
|
$ |
501,249 |
|
|
$ |
497,953 |
|
|
1 |
% |
Net earnings
attributable to shareholders |
$ |
120,263 |
|
|
$ |
107,581 |
|
|
12 |
% |
|
$ |
322,378 |
|
|
$ |
320,217 |
|
|
1 |
% |
Diluted
earnings attributable to shareholders per share |
$ |
0.66 |
|
|
$ |
0.59 |
|
|
12 |
% |
|
$ |
1.77 |
|
|
$ |
1.75 |
|
|
1 |
% |
Basic earnings
attributable to shareholders per share |
$ |
0.67 |
|
|
$ |
0.59 |
|
|
14 |
% |
|
$ |
1.79 |
|
|
$ |
1.76 |
|
|
2 |
% |
Diluted
weighted average shares outstanding |
181,788 |
|
|
182,692 |
|
|
|
|
181,951 |
|
|
182,958 |
|
|
|
Basic weighted
average shares outstanding |
179,416 |
|
|
181,177 |
|
|
|
|
179,827 |
|
|
181,645 |
|
|
|
_______________________1Non-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.
During the three and nine-month periods ended September 30,
2017, we repurchased 3.6 million and 6.1 million shares of common
stock at an average price of $56.18 and $55.93 per share,
respectively. During the three and nine-month periods ended
September 30, 2016, the Company repurchased 2.0 million and 5.4
million shares of common stock at an average price of $51.16 and
$49.64 per share, respectively.
|
|
|
Employee headcount as of September
30, |
|
2017 |
|
2016 |
North
America |
6,043 |
|
|
5,769 |
|
Europe |
3,013 |
|
|
2,846 |
|
North
Asia |
2,548 |
|
|
2,498 |
|
Middle East,
Africa and India |
1,503 |
|
|
1,494 |
|
South
Asia |
1,495 |
|
|
1,364 |
|
Latin
America |
800 |
|
|
758 |
|
Information
Systems |
889 |
|
|
810 |
|
Corporate |
357 |
|
|
338 |
|
Total |
16,648 |
|
|
15,877 |
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year percentage increase
in: |
|
|
Airfreight kilos |
|
Ocean freight FEU |
2017 |
|
|
|
|
July |
|
7% |
|
6% |
August |
|
10% |
|
2% |
September |
|
17% |
|
3% |
Quarter |
|
12% |
|
4% |
_______________________Investors may submit written questions
via e-mail to: investor@expeditors.com. Questions received by the
end of business on November 10, 2017 will be considered in
management's 8-K “Responses to Selected Questions” expected to be
filed on or about November 20, 2017.
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
implement price adjustments, the quality of the volume growth that
we are experiencing, the highly unpredictable rate environment, and
our ability to manage expenses well. 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, the future success of our
business model, our ability to maintain consistent and stable
operating results, our ability to perpetuate profits, changes in
customer demand for Expeditors’ services caused by a general
economic slow-down, changes in global trade volumes, customers’
inventory build-up, decreased consumer confidence, geopolitical
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.AND
SUBSIDIARIES |
|
Condensed Consolidated Balance Sheets(In thousands,
except per share data)(Unaudited) |
|
|
September 30, 2017 |
|
December 31, 2016 |
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and
cash equivalents |
$ |
1,033,444 |
|
|
$ |
974,435 |
|
Accounts
receivable, net |
1,349,854 |
|
|
1,190,130 |
|
Other
current assets |
135,623 |
|
|
54,014 |
|
Total
current assets |
2,518,921 |
|
|
2,218,579 |
|
Property and equipment,
net |
513,070 |
|
|
536,572 |
|
Goodwill |
7,927 |
|
|
7,927 |
|
Other assets, net |
28,963 |
|
|
27,793 |
|
|
$ |
3,068,881 |
|
|
$ |
2,790,871 |
|
Liabilities and Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
836,055 |
|
|
$ |
726,571 |
|
Accrued
expenses, primarily salaries and related costs |
216,146 |
|
|
185,502 |
|
Federal,
state and foreign income taxes |
23,853 |
|
|
17,858 |
|
Total
current liabilities |
1,076,054 |
|
|
929,931 |
|
Deferred Federal and
state income taxes |
11,746 |
|
|
13,727 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders’
Equity: |
|
|
|
Preferred
stock; none issued |
— |
|
|
— |
|
Common
stock, par value $0.01 per share. Issued and outstanding 177,559
shares at September 30, 2017 and 179,857 shares at
December 31, 2016 |
1,776 |
|
|
1,799 |
|
Additional paid-in capital |
1,464 |
|
|
2,642 |
|
Retained
earnings |
2,053,723 |
|
|
1,944,789 |
|
Accumulated other comprehensive loss |
(78,960 |
) |
|
(104,592 |
) |
Total
shareholders’ equity |
1,978,003 |
|
|
1,844,638 |
|
Noncontrolling interest |
3,078 |
|
|
2,575 |
|
Total
equity |
1,981,081 |
|
|
1,847,213 |
|
|
$ |
3,068,881 |
|
|
$ |
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 |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenues: |
|
|
|
|
|
|
|
Airfreight
services |
$ |
735,164 |
|
|
$ |
621,566 |
|
|
$ |
2,022,577 |
|
|
$ |
1,764,512 |
|
Ocean freight and ocean
services |
563,386 |
|
|
495,460 |
|
|
1,585,730 |
|
|
1,414,344 |
|
Customs brokerage and
other services |
503,616 |
|
|
445,368 |
|
|
1,411,270 |
|
|
1,277,174 |
|
Total
revenues |
1,802,166 |
|
|
1,562,394 |
|
|
5,019,577 |
|
|
4,456,030 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
547,595 |
|
|
444,359 |
|
|
1,490,417 |
|
|
1,236,555 |
|
Ocean freight and ocean
services |
411,061 |
|
|
359,991 |
|
|
1,163,051 |
|
|
1,006,710 |
|
Customs brokerage and
other services |
244,368 |
|
|
212,785 |
|
|
675,729 |
|
|
597,320 |
|
Salaries and related
costs |
319,050 |
|
|
291,204 |
|
|
930,159 |
|
|
868,091 |
|
Rent and occupancy
costs |
30,533 |
|
|
27,091 |
|
|
87,826 |
|
|
81,029 |
|
Depreciation and
amortization |
12,272 |
|
|
11,882 |
|
|
36,241 |
|
|
34,853 |
|
Selling and
promotion |
10,608 |
|
|
10,134 |
|
|
32,476 |
|
|
29,817 |
|
Other |
39,784 |
|
|
37,685 |
|
|
102,429 |
|
|
103,702 |
|
Total
operating expenses |
1,615,271 |
|
|
1,395,131 |
|
|
4,518,328 |
|
|
3,958,077 |
|
Operating
income |
186,895 |
|
|
167,263 |
|
|
501,249 |
|
|
497,953 |
|
Other Income
(Expense): |
|
|
|
|
|
|
|
Interest income |
3,444 |
|
|
2,924 |
|
|
9,565 |
|
|
8,593 |
|
Other, net |
96 |
|
|
925 |
|
|
2,584 |
|
|
3,407 |
|
Other
income (expense), net |
3,540 |
|
|
3,849 |
|
|
12,149 |
|
|
12,000 |
|
Earnings before income
taxes |
190,435 |
|
|
171,112 |
|
|
513,398 |
|
|
509,953 |
|
Income tax expense |
69,829 |
|
|
63,163 |
|
|
190,470 |
|
|
188,518 |
|
Net
earnings |
120,606 |
|
|
107,949 |
|
|
322,928 |
|
|
321,435 |
|
Less net earnings
attributable to the noncontrolling interest |
343 |
|
|
368 |
|
|
550 |
|
|
1,218 |
|
Net
earnings attributable to shareholders |
$ |
120,263 |
|
|
$ |
107,581 |
|
|
$ |
322,378 |
|
|
$ |
320,217 |
|
Diluted earnings
attributable to shareholders per share |
$ |
0.66 |
|
|
$ |
0.59 |
|
|
$ |
1.77 |
|
|
$ |
1.75 |
|
Basic earnings
attributable to shareholders per share |
$ |
0.67 |
|
|
$ |
0.59 |
|
|
$ |
1.79 |
|
|
$ |
1.76 |
|
Dividends declared and
paid per common share |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
Weighted average
diluted shares outstanding |
181,788 |
|
|
182,692 |
|
|
181,951 |
|
|
182,958 |
|
Weighted average basic
shares outstanding |
179,416 |
|
|
181,177 |
|
|
179,827 |
|
|
181,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIES |
|
Condensed Consolidated Statements of Cash Flows(In
thousands)(Unaudited) |
|
|
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
Activities: |
|
|
|
|
|
|
|
Net earnings |
$ |
120,606 |
|
|
$ |
107,949 |
|
|
$ |
322,928 |
|
|
$ |
321,435 |
|
Adjustments to
reconcile net earnings to net cash from operating activities: |
|
|
|
|
|
|
|
Provision
for losses on accounts receivable |
1,741 |
|
|
1,321 |
|
|
3,187 |
|
|
2,461 |
|
Deferred
income tax (benefit) expense |
(28,854 |
) |
|
(1,439 |
) |
|
(16,000 |
) |
|
2,342 |
|
Stock
compensation expense |
11,210 |
|
|
10,476 |
|
|
39,036 |
|
|
34,264 |
|
Depreciation and amortization |
12,272 |
|
|
11,882 |
|
|
36,241 |
|
|
34,853 |
|
Other,
net |
377 |
|
|
11 |
|
|
(148 |
) |
|
41 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
(126,102 |
) |
|
(58,279 |
) |
|
(123,790 |
) |
|
6,087 |
|
Increase
in accounts payable and accrued expenses |
61,833 |
|
|
38,070 |
|
|
96,132 |
|
|
74,148 |
|
Increase
(decrease) in income taxes payable, net |
38,149 |
|
|
7,197 |
|
|
10,814 |
|
|
(16,612 |
) |
Increase
in other current assets |
(5,872 |
) |
|
(1,395 |
) |
|
(6,147 |
) |
|
(2,089 |
) |
Net cash from operating
activities |
85,360 |
|
|
115,793 |
|
|
362,253 |
|
|
456,930 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Purchase of property
and equipment |
(34,462 |
) |
|
(12,659 |
) |
|
(67,603 |
) |
|
(39,973 |
) |
Other, net |
(261 |
) |
|
1,617 |
|
|
(892 |
) |
|
5,472 |
|
Net cash from investing
activities |
(34,723 |
) |
|
(11,042 |
) |
|
(68,495 |
) |
|
(34,501 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds from issuance
of common stock |
65,915 |
|
|
57,522 |
|
|
162,781 |
|
|
147,645 |
|
Repurchases of common
stock |
(202,776 |
) |
|
(101,690 |
) |
|
(340,736 |
) |
|
(268,097 |
) |
Dividends paid |
— |
|
|
— |
|
|
(75,726 |
) |
|
(73,000 |
) |
Net cash from financing
activities |
(136,861 |
) |
|
(44,168 |
) |
|
(253,681 |
) |
|
(193,452 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
4,758 |
|
|
1,853 |
|
|
18,932 |
|
|
5,927 |
|
(Decrease) increase in
cash and cash equivalents |
(81,466 |
) |
|
62,436 |
|
|
59,009 |
|
|
234,904 |
|
Cash and cash
equivalents at beginning of period |
1,114,910 |
|
|
980,264 |
|
|
974,435 |
|
|
807,796 |
|
Cash and cash
equivalents at end of period |
$ |
1,033,444 |
|
|
$ |
1,042,700 |
|
|
$ |
1,033,444 |
|
|
$ |
1,042,700 |
|
Taxes
paid: |
|
|
|
|
|
|
|
Income taxes |
$ |
58,257 |
|
|
$ |
58,696 |
|
|
$ |
190,911 |
|
|
$ |
205,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIES |
Business Segment Information(In
thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDSTATES |
|
OTHERNORTHAMERICA |
|
LATINAMERICA |
|
NORTH ASIA |
|
SOUTH ASIA |
|
EUROPE |
|
MIDDLEEAST,
AFRICAAND INDIA |
|
ELIMI-NATIONS |
|
CONSOLI-DATED |
Three months
ended September 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
476,575 |
|
|
65,544 |
|
|
24,181 |
|
|
686,915 |
|
|
170,225 |
|
|
273,606 |
|
|
105,120 |
|
|
— |
|
|
1,802,166 |
|
Transfers between
geographic areas |
26,888 |
|
|
2,782 |
|
|
3,679 |
|
|
5,253 |
|
|
5,681 |
|
|
10,302 |
|
|
5,318 |
|
|
(59,903 |
) |
|
— |
|
Total revenues |
$ |
503,463 |
|
|
68,326 |
|
|
27,860 |
|
|
692,168 |
|
|
175,906 |
|
|
283,908 |
|
|
110,438 |
|
|
(59,903 |
) |
|
1,802,166 |
|
Net revenues |
$ |
257,030 |
|
|
30,664 |
|
|
14,710 |
|
|
138,667 |
|
|
41,411 |
|
|
85,390 |
|
|
29,956 |
|
|
1,314 |
|
|
599,142 |
|
Operating income |
$ |
74,645 |
|
|
9,215 |
|
|
2,652 |
|
|
72,070 |
|
|
11,697 |
|
|
11,124 |
|
|
5,495 |
|
|
(3 |
) |
|
186,895 |
|
Identifiable
assets |
$ |
1,636,293 |
|
|
100,651 |
|
|
52,238 |
|
|
446,826 |
|
|
143,893 |
|
|
473,509 |
|
|
212,210 |
|
|
3,261 |
|
|
3,068,881 |
|
Capital
expenditures |
$ |
7,398 |
|
|
263 |
|
|
2,436 |
|
|
589 |
|
|
390 |
|
|
23,138 |
|
|
248 |
|
|
— |
|
|
34,462 |
|
Depreciation and
amortization |
$ |
7,905 |
|
|
405 |
|
|
310 |
|
|
1,313 |
|
|
569 |
|
|
1,309 |
|
|
461 |
|
|
— |
|
|
12,272 |
|
Equity |
$ |
1,345,266 |
|
|
52,212 |
|
|
25,709 |
|
|
231,831 |
|
|
102,477 |
|
|
139,688 |
|
|
119,649 |
|
|
(35,751 |
) |
|
1,981,081 |
|
Three months
ended September 30, 2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
423,362 |
|
|
56,747 |
|
|
21,592 |
|
|
590,622 |
|
|
154,156 |
|
|
228,256 |
|
|
87,659 |
|
|
— |
|
|
1,562,394 |
|
Transfers between
geographic areas |
24,610 |
|
|
2,770 |
|
|
3,724 |
|
|
5,368 |
|
|
6,206 |
|
|
9,938 |
|
|
5,551 |
|
|
(58,167 |
) |
|
— |
|
Total revenues |
$ |
447,972 |
|
|
59,517 |
|
|
25,316 |
|
|
595,990 |
|
|
160,362 |
|
|
238,194 |
|
|
93,210 |
|
|
(58,167 |
) |
|
1,562,394 |
|
Net revenues |
$ |
229,773 |
|
|
30,211 |
|
|
14,063 |
|
|
124,251 |
|
|
42,711 |
|
|
74,888 |
|
|
29,363 |
|
|
(1 |
) |
|
545,259 |
|
Operating income |
$ |
69,457 |
|
|
6,200 |
|
|
3,328 |
|
|
59,682 |
|
|
14,045 |
|
|
7,018 |
|
|
7,534 |
|
|
(1 |
) |
|
167,263 |
|
Identifiable
assets |
$ |
1,410,287 |
|
|
95,390 |
|
|
56,192 |
|
|
480,587 |
|
|
117,333 |
|
|
388,543 |
|
|
237,104 |
|
|
8,788 |
|
|
2,794,224 |
|
Capital
expenditures |
$ |
8,319 |
|
|
720 |
|
|
139 |
|
|
739 |
|
|
319 |
|
|
2,127 |
|
|
296 |
|
|
— |
|
|
12,659 |
|
Depreciation and
amortization |
$ |
7,566 |
|
|
369 |
|
|
328 |
|
|
1,404 |
|
|
594 |
|
|
1,116 |
|
|
505 |
|
|
— |
|
|
11,882 |
|
Equity |
$ |
1,145,293 |
|
|
41,542 |
|
|
37,765 |
|
|
293,383 |
|
|
87,926 |
|
|
129,989 |
|
|
150,395 |
|
|
(32,360 |
) |
|
1,853,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
UNITED STATES |
|
OTHER NORTH AMERICA |
|
LATIN AMERICA |
|
NORTH ASIA |
|
SOUTH ASIA |
|
EUROPE |
|
MIDDLE EAST, AFRICA AND
INDIA |
|
ELIMI- NATIONS |
|
CONSOLI- DATED |
Nine months
ended September 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
1,354,811 |
|
|
187,997 |
|
|
69,747 |
|
|
1,873,393 |
|
|
475,163 |
|
|
764,596 |
|
|
293,870 |
|
|
— |
|
|
5,019,577 |
|
Transfers between
geographic areas |
79,356 |
|
|
8,246 |
|
|
11,073 |
|
|
15,139 |
|
|
16,520 |
|
|
29,288 |
|
|
15,316 |
|
|
(174,938 |
) |
|
— |
|
Total revenues |
$ |
1,434,167 |
|
|
196,243 |
|
|
80,820 |
|
|
1,888,532 |
|
|
491,683 |
|
|
793,884 |
|
|
309,186 |
|
|
(174,938 |
) |
|
5,019,577 |
|
Net revenues |
$ |
737,842 |
|
|
84,630 |
|
|
43,634 |
|
|
371,459 |
|
|
117,634 |
|
|
242,244 |
|
|
89,973 |
|
|
2,964 |
|
|
1,690,380 |
|
Operating income |
$ |
191,256 |
|
|
26,583 |
|
|
8,349 |
|
|
183,515 |
|
|
37,434 |
|
|
36,189 |
|
|
17,928 |
|
|
(5 |
) |
|
501,249 |
|
Identifiable assets at
period end |
$ |
1,636,293 |
|
|
100,651 |
|
|
52,238 |
|
|
446,826 |
|
|
143,893 |
|
|
473,509 |
|
|
212,210 |
|
|
3,261 |
|
|
3,068,881 |
|
Capital
expenditures |
$ |
19,492 |
|
|
1,066 |
|
|
3,648 |
|
|
2,492 |
|
|
1,172 |
|
|
38,717 |
|
|
1,016 |
|
|
— |
|
|
67,603 |
|
Depreciation and
amortization |
$ |
23,389 |
|
|
1,163 |
|
|
930 |
|
|
3,995 |
|
|
1,656 |
|
|
3,707 |
|
|
1,401 |
|
|
— |
|
|
36,241 |
|
Equity |
$ |
1,345,266 |
|
|
52,212 |
|
|
25,709 |
|
|
231,831 |
|
|
102,477 |
|
|
139,688 |
|
|
119,649 |
|
|
(35,751 |
) |
|
1,981,081 |
|
Nine months
ended September 30, 2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
1,248,923 |
|
|
165,527 |
|
|
62,825 |
|
|
1,605,343 |
|
|
442,464 |
|
|
680,035 |
|
|
250,913 |
|
|
— |
|
|
4,456,030 |
|
Transfers between
geographic areas |
79,617 |
|
|
8,141 |
|
|
11,512 |
|
|
15,849 |
|
|
18,338 |
|
|
30,396 |
|
|
16,452 |
|
|
(180,305 |
) |
|
— |
|
Total revenues |
$ |
1,328,540 |
|
|
173,668 |
|
|
74,337 |
|
|
1,621,192 |
|
|
460,802 |
|
|
710,431 |
|
|
267,365 |
|
|
(180,305 |
) |
|
4,456,030 |
|
Net revenues |
$ |
683,331 |
|
|
88,404 |
|
|
42,264 |
|
|
357,159 |
|
|
128,486 |
|
|
227,068 |
|
|
88,745 |
|
|
(12 |
) |
|
1,615,445 |
|
Operating income |
$ |
184,876 |
|
|
23,091 |
|
|
11,016 |
|
|
176,621 |
|
|
48,090 |
|
|
31,109 |
|
|
23,162 |
|
|
(12 |
) |
|
497,953 |
|
Identifiable assets at
period end |
$ |
1,410,287 |
|
|
95,390 |
|
|
56,192 |
|
|
480,587 |
|
|
117,333 |
|
|
388,543 |
|
|
237,104 |
|
|
8,788 |
|
|
2,794,224 |
|
Capital
expenditures |
$ |
25,234 |
|
|
1,476 |
|
|
941 |
|
|
2,502 |
|
|
1,325 |
|
|
6,386 |
|
|
2,109 |
|
|
— |
|
|
39,973 |
|
Depreciation and
amortization |
$ |
22,264 |
|
|
1,113 |
|
|
869 |
|
|
4,111 |
|
|
1,649 |
|
|
3,402 |
|
|
1,445 |
|
|
— |
|
|
34,853 |
|
Equity |
$ |
1,145,293 |
|
|
41,542 |
|
|
37,765 |
|
|
293,383 |
|
|
87,926 |
|
|
129,989 |
|
|
150,395 |
|
|
(32,360 |
) |
|
1,853,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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 |
|
Nine months ended |
|
September 30, |
|
September 30, |
(in thousands) |
2017 |
|
2016 |
|
2017 |
|
2016 |
Total revenues |
$ |
1,802,166 |
|
|
$ |
1,562,394 |
|
|
$ |
5,019,577 |
|
|
$ |
4,456,030 |
|
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
547,595 |
|
|
444,359 |
|
|
1,490,417 |
|
|
1,236,555 |
|
Ocean freight and ocean
services |
411,061 |
|
|
359,991 |
|
|
1,163,051 |
|
|
1,006,710 |
|
Customs brokerage and
other services |
244,368 |
|
|
212,785 |
|
|
675,729 |
|
|
597,320 |
|
Net
revenues |
$ |
599,142 |
|
|
$ |
545,259 |
|
|
$ |
1,690,380 |
|
|
$ |
1,615,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS:
Jeffrey S. Musser |
Bradley S. Powell |
Geoffrey Buscher |
President and Chief
Executive Officer |
Senior Vice President
and Chief Financial Officer |
Director - Investor
Relations |
(206) 674-3433 |
(206) 674-3412 |
(206) 892-4510 |
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