Expeditors Reports Fourth Quarter 2017 EPS of $0.92
February 20 2018 - 8:30AM
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 endedDecember
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 outstanding |
180,635 |
|
|
181,887 |
|
|
|
|
181,666 |
|
|
182,704 |
|
|
|
Basic weighted
average shares outstanding |
177,523 |
|
|
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 Equivalentsas of December
31, |
|
2017 |
|
2016 |
North
America |
6,091 |
|
|
5,835 |
|
Europe |
3,050 |
|
|
2,887 |
|
North
Asia |
2,593 |
|
|
2,597 |
|
South
Asia |
1,623 |
|
|
1,506 |
|
Middle East,
Africa and India |
1,503 |
|
|
1,562 |
|
Latin
America |
814 |
|
|
778 |
|
Information
Systems |
884 |
|
|
877 |
|
Corporate |
386 |
|
|
376 |
|
Total |
16,944 |
|
|
16,418 |
|
|
|
|
|
|
|
|
|
Year-over-year percentageincrease/(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, net |
1,414,741 |
|
|
1,190,130 |
|
Other
current assets |
75,612 |
|
|
54,014 |
|
Total
current assets |
2,541,452 |
|
|
2,218,579 |
|
Property and equipment,
net |
525,203 |
|
|
536,572 |
|
Goodwill |
7,927 |
|
|
7,927 |
|
Deferred Federal and
state taxes, net |
13,207 |
|
|
— |
|
Other assets, net |
29,219 |
|
|
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 costs |
206,320 |
|
|
185,502 |
|
Federal,
state and foreign income taxes |
20,494 |
|
|
17,858 |
|
Total
current liabilities |
1,093,119 |
|
|
929,931 |
|
Noncurrent Federal
income tax payable |
29,516 |
|
|
— |
|
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,
2016 |
1,764 |
|
|
1,799 |
|
Additional paid-in capital |
546 |
|
|
2,642 |
|
Retained
earnings |
2,063,512 |
|
|
1,944,789 |
|
Accumulated other comprehensive loss |
(73,964 |
) |
|
(104,592 |
) |
Total
shareholders’ equity |
1,991,858 |
|
|
1,844,638 |
|
Noncontrolling interest |
2,515 |
|
|
2,575 |
|
Total
equity |
1,994,373 |
|
|
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
services |
521,315 |
|
|
503,150 |
|
|
2,107,045 |
|
|
1,917,494 |
|
Customs brokerage and
other services |
525,601 |
|
|
450,022 |
|
|
1,936,871 |
|
|
1,727,196 |
|
Total
revenues |
1,901,371 |
|
|
1,642,007 |
|
|
6,920,948 |
|
|
6,098,037 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
636,344 |
|
|
515,612 |
|
|
2,126,761 |
|
|
1,752,167 |
|
Ocean freight and ocean
services |
380,689 |
|
|
371,989 |
|
|
1,543,740 |
|
|
1,378,699 |
|
Customs brokerage and
other services |
255,529 |
|
|
205,815 |
|
|
931,258 |
|
|
803,135 |
|
Salaries and related
costs |
336,961 |
|
|
289,544 |
|
|
1,267,120 |
|
|
1,157,635 |
|
Rent and occupancy
costs |
31,906 |
|
|
27,783 |
|
|
119,732 |
|
|
108,812 |
|
Depreciation and
amortization |
13,069 |
|
|
11,943 |
|
|
49,310 |
|
|
46,796 |
|
Selling and
promotion |
11,814 |
|
|
11,946 |
|
|
44,290 |
|
|
41,763 |
|
Other |
36,048 |
|
|
35,165 |
|
|
138,477 |
|
|
138,867 |
|
Total
operating expenses |
1,702,360 |
|
|
1,469,797 |
|
|
6,220,688 |
|
|
5,427,874 |
|
Operating
income |
199,011 |
|
|
172,210 |
|
|
700,260 |
|
|
670,163 |
|
|
|
|
|
|
|
|
|
Interest income |
3,639 |
|
|
2,987 |
|
|
13,204 |
|
|
11,580 |
|
Other, net |
2,547 |
|
|
1,706 |
|
|
5,131 |
|
|
5,113 |
|
Other
income, net |
6,186 |
|
|
4,693 |
|
|
18,335 |
|
|
16,693 |
|
Earnings before income
taxes |
205,197 |
|
|
176,903 |
|
|
718,595 |
|
|
686,856 |
|
Income tax expense |
37,742 |
|
|
65,805 |
|
|
228,212 |
|
|
254,323 |
|
Net
earnings |
167,455 |
|
|
111,098 |
|
|
490,383 |
|
|
432,533 |
|
Less net earnings
attributable to the noncontrolling interest |
488 |
|
|
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 outstanding |
180,635 |
|
|
181,887 |
|
|
181,666 |
|
|
182,704 |
|
Weighted average basic
shares outstanding |
177,523 |
|
|
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 receivable |
2,169 |
|
|
146 |
|
|
5,356 |
|
|
2,607 |
|
Deferred
income tax (benefit) expense |
(27,695 |
) |
|
13,493 |
|
|
(43,695 |
) |
|
15,835 |
|
Stock
compensation expense |
11,872 |
|
|
10,953 |
|
|
50,908 |
|
|
45,217 |
|
Depreciation and amortization |
13,069 |
|
|
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 expenses |
18,499 |
|
|
28,568 |
|
|
114,631 |
|
|
102,716 |
|
Increase
(decrease) in income taxes payable, net |
5,450 |
|
|
4,242 |
|
|
16,264 |
|
|
(12,370 |
) |
Decrease
(increase) in other current assets |
782 |
|
|
4,077 |
|
|
(5,365 |
) |
|
1,988 |
|
Net cash from operating
activities |
126,386 |
|
|
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 equipment |
84,062 |
|
|
37 |
|
|
84,405 |
|
|
229 |
|
Other, net |
161 |
|
|
611 |
|
|
(1,074 |
) |
|
5,891 |
|
Net cash from investing
activities |
56,810 |
|
|
(18,695 |
) |
|
(11,685 |
) |
|
(53,196 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds from issuance
of common stock |
42,311 |
|
|
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 equivalents |
5,343 |
|
|
(16,774 |
) |
|
24,275 |
|
|
(10,847 |
) |
Increase (decrease) in
cash and cash equivalents |
17,655 |
|
|
(68,265 |
) |
|
76,664 |
|
|
166,639 |
|
Cash and cash
equivalents at beginning of period |
1,033,444 |
|
|
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) |
|
|
UNITEDSTATES |
|
OTHERNORTHAMERICA |
|
LATINAMERICA |
|
NORTHASIA |
|
SOUTHASIA |
|
EUROPE |
|
MIDDLEEAST,AFRICAand
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 areas |
31,807 |
|
|
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 areas |
26,459 |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDSTATES |
|
OTHERNORTHAMERICA |
|
LATINAMERICA |
|
NORTHASIA |
|
SOUTHASIA |
|
EUROPE |
|
MIDDLEEAST,AFRICAand
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 areas |
111,163 |
|
|
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 areas |
106,076 |
|
|
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
services |
636,344 |
|
|
515,612 |
|
|
2,126,761 |
|
|
1,752,167 |
|
Ocean freight and ocean
services |
380,689 |
|
|
371,989 |
|
|
1,543,740 |
|
|
1,378,699 |
|
Customs brokerage and
other services |
255,529 |
|
|
205,815 |
|
|
931,258 |
|
|
803,135 |
|
Net
revenues |
$ |
628,809 |
|
|
$ |
548,591 |
|
|
$ |
2,319,189 |
|
|
$ |
2,164,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
By: Expeditors International of
Washington, Inc.1015 Third Avenue, Suite 1200Seattle, Washington
98104
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