Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced second quarter 2017 financial results including the
following highlights compared to the same quarter of 2016:
- Diluted Net Earnings Attributable to Shareholders per share
(EPS1) decreased 5% to $0.60
- Net Earnings Attributable to Shareholders decreased 6% to $109
million
- Operating Income decreased 6% to $168 million
- Revenues increased 13% to $1.7 billion
- Net Revenues2 increased 2% to $564 million
- Airfreight tonnage volume increased 9% and ocean container
volume increased 4%
“Volumes remain strong across all of our services and we believe
we continue to take profitable market share,” said Jeffrey S.
Musser, President and Chief Executive Officer. “Our order
management, warehousing and distribution, Transcon, and customs
brokerage businesses performed exceptionally well during the
quarter. While we experienced similar margin pressures that we have
seen in recent quarters in our air and ocean offerings, we recorded
some of the highest freight volumes in our company’s history. As
always, our people provided outstanding customer service and
performed extremely well in this environment.
“Global demand for air and ocean capacity continues to be
stronger than we have seen in the past few years, which has led to
a scarcity of favorable pricing. As the rate environment continues
to shift, we are being increasingly disciplined in how we work both
with our customers and with our carrier partners to secure access
to capacity. In June, we initiated rate increases in certain
high-volume lanes in response to the current market and expect to
see strong demand, tight capacity, and rate volatility to continue
throughout the remainder of the year.”
Bradley S. Powell, Senior Vice President and Chief Financial
Officer, added, “All regions have added people to process
additional shipment volumes in order to maintain our high level of
customer service. We are handling more shipments and are doing so
more efficiently than ever before. We continue to focus on
implementing process improvements and investing in our core
technologies that allow us to grow our business profitably. As the
industry continues to evolve and innovate at a more rapid pace, we
are also making additional investments to develop strategies,
including the use of technologies that allow us to maintain our
leadership position.”
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 2017 Earnings Release,
August 8, 2017Financial Highlights for the
Three and Six months ended June 30, 2017 and
2016 (Unaudited) (in 000's of US dollars except per share
data)
|
Three months ended June
30, |
|
|
|
Six months ended June 30, |
|
|
|
2017 |
|
2016 |
|
%Change |
|
2017 |
|
2016 |
|
%Change |
Revenues |
$ |
1,672,279 |
|
|
$ |
1,475,164 |
|
|
13 |
% |
|
$ |
3,217,411 |
|
|
$ |
2,893,636 |
|
|
11 |
% |
Net
revenues1 |
$ |
563,633 |
|
|
$ |
553,117 |
|
|
2 |
% |
|
$ |
1,091,238 |
|
|
$ |
1,070,186 |
|
|
2 |
% |
Operating
income2 |
$ |
168,240 |
|
|
$ |
178,864 |
|
|
(6 |
)% |
|
$ |
314,354 |
|
|
$ |
330,690 |
|
|
(5 |
)% |
Net earnings
attributable to shareholders |
$ |
108,851 |
|
|
$ |
116,052 |
|
|
(6 |
)% |
|
$ |
202,115 |
|
|
$ |
212,636 |
|
|
(5 |
)% |
Diluted
earnings attributable to shareholders per share
|
$ |
0.60 |
|
|
$ |
0.63 |
|
|
(5 |
)% |
|
$ |
1.11 |
|
|
$ |
1.16 |
|
|
(4 |
)% |
Basic earnings
attributable to shareholders per share |
$ |
0.60 |
|
|
$ |
0.64 |
|
|
(6 |
)% |
|
$ |
1.12 |
|
|
$ |
1.17 |
|
|
(4 |
)% |
Diluted
weighted average shares outstanding |
182,033 |
|
|
183,132 |
|
|
|
|
182,091 |
|
|
183,110 |
|
|
|
Basic weighted
average shares outstanding |
180,012 |
|
|
181,753 |
|
|
|
|
180,037 |
|
|
181,882 |
|
|
|
_______________________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.
2Includes recovery of certain legal and related fees totaling $8
million for both the quarter and year-to date periods ended
June 30, 2017 compared to $5 million in the same periods in
2016 and the favorable resolution of an indirect tax contingency of
$6 million in the second quarter of 2017. We do not expect further
recoveries in either matter.
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.
During the three and six-month periods ended June 30, 2016, the
Company repurchased 1.9 million and 3.4 million shares of common
stock at an average price of $49.47 and $48.75 per share,
respectively.
|
Employee headcount as of June 30,
|
|
2017 |
|
2016 |
North
America |
6,002 |
|
|
5,732 |
|
Europe |
2,915 |
|
|
2,764 |
|
North
Asia |
2,524 |
|
|
2,461 |
|
Middle East,
Africa and India |
1,521 |
|
|
1,480 |
|
South
Asia |
1,447 |
|
|
1,338 |
|
Latin
America |
782 |
|
|
754 |
|
Information
Systems |
892 |
|
|
795 |
|
Corporate |
366 |
|
|
341 |
|
Total |
16,449 |
|
|
15,665 |
|
|
|
Year-over-year percentage increase
in: |
|
|
Airfreight kilos |
|
Ocean freight FEU |
2017 |
|
|
|
|
April |
|
9 |
% |
|
2 |
% |
May |
|
11 |
% |
|
2 |
% |
June |
|
7 |
% |
|
7 |
% |
Quarter
|
|
9 |
% |
|
4 |
% |
_______________________Investors may submit written questions
via e-mail to: investor@expeditors.com. Questions received by the
end of business on August 11, 2017 will be considered in
management's 8-K “Responses to Selected Questions” expected to be
filed on or about August 21, 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 continuing to take
profitable market share, the global demand for air and ocean
capacity, favorable pricing, the shifting rate environment, our
ability to secure access to capacity, our expectation that we will
see strong demand, tight capacity, and rate volatility throughout
the remainder of the year, our ability to maintain a high level of
customer service, our ability to handle more shipments more
efficiently than ever before, our ability to implement process
improvements and invest in core technologies that allow us to grow
our business profitably, and our ability to make investments to
develop strategies, including the use of additional technologies
that allow us to maintain our leadership position. 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,
volatility in equity markets, energy and fuel prices, 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
SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands,
except per share data)(Unaudited) |
|
|
June 30,
2017 |
|
December 31,2016 |
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and
cash equivalents |
$ |
1,114,910 |
|
|
$ |
974,435 |
|
Accounts
receivable, net |
1,215,278 |
|
|
1,190,130 |
|
Other
current assets |
164,128 |
|
|
54,014 |
|
Total current assets |
2,494,316 |
|
|
2,218,579 |
|
Property and equipment,
net |
490,776 |
|
|
536,572 |
|
Goodwill |
7,927 |
|
|
7,927 |
|
Other assets, net |
29,737 |
|
|
27,793 |
|
|
$ |
3,022,756 |
|
|
$ |
2,790,871 |
|
Liabilities and Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
774,941 |
|
|
$ |
726,571 |
|
Accrued
expenses, primarily salaries and related costs |
211,376 |
|
|
185,502 |
|
Federal,
state and foreign income taxes |
21,329 |
|
|
17,858 |
|
Total current liabilities |
1,007,646 |
|
|
929,931 |
|
Deferred Federal and
state income taxes |
36,473 |
|
|
13,727 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders’
Equity: |
|
|
|
Preferred
stock; none issued |
— |
|
|
— |
|
Common
stock, par value $0.01 per share. Issued and outstanding 179,637
shares at June 30,2017 and 179,857 shares at December 31,
2016 |
1,796 |
|
|
1,799 |
|
Additional paid-in capital |
11,152 |
|
|
2,642 |
|
Retained
earnings |
2,049,403 |
|
|
1,944,789 |
|
Accumulated other comprehensive loss |
(86,507 |
) |
|
(104,592 |
) |
Total
shareholders’ equity |
1,975,844 |
|
|
1,844,638 |
|
Noncontrolling interest |
2,793 |
|
|
2,575 |
|
Total
equity |
1,978,637 |
|
|
1,847,213 |
|
|
$ |
3,022,756 |
|
|
$ |
2,790,871 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIESCondensed Consolidated Statements of Earnings(In
thousands, except per share data)(Unaudited) |
|
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenues: |
|
|
|
|
|
|
|
Airfreight
services |
$ |
671,868 |
|
|
$ |
582,093 |
|
|
$ |
1,287,413 |
|
|
$ |
1,142,946 |
|
Ocean freight and ocean
services |
528,585 |
|
|
464,692 |
|
|
1,022,344 |
|
|
918,884 |
|
Customs brokerage and
other services |
471,826 |
|
|
428,379 |
|
|
907,654 |
|
|
831,806 |
|
Total
revenues |
1,672,279 |
|
|
1,475,164 |
|
|
3,217,411 |
|
|
2,893,636 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
499,418 |
|
|
403,419 |
|
|
942,822 |
|
|
792,196 |
|
Ocean freight and ocean
services |
385,927 |
|
|
323,699 |
|
|
751,990 |
|
|
646,719 |
|
Customs brokerage and
other services |
223,301 |
|
|
194,929 |
|
|
431,361 |
|
|
384,535 |
|
Salaries and related
costs |
318,529 |
|
|
293,532 |
|
|
611,109 |
|
|
576,887 |
|
Rent and occupancy
costs |
29,163 |
|
|
27,079 |
|
|
57,293 |
|
|
53,938 |
|
Depreciation and
amortization |
12,042 |
|
|
11,642 |
|
|
23,969 |
|
|
22,971 |
|
Selling and
promotion |
10,953 |
|
|
10,251 |
|
|
21,868 |
|
|
19,683 |
|
Other |
24,706 |
|
|
31,749 |
|
|
62,645 |
|
|
66,017 |
|
Total
operating expenses |
1,504,039 |
|
|
1,296,300 |
|
|
2,903,057 |
|
|
2,562,946 |
|
Operating
income |
168,240 |
|
|
178,864 |
|
|
314,354 |
|
|
330,690 |
|
Other Income
(Expense): |
|
|
|
|
|
|
|
Interest income |
3,380 |
|
|
2,890 |
|
|
6,121 |
|
|
5,669 |
|
Other, net |
2,190 |
|
|
1,603 |
|
|
2,488 |
|
|
2,482 |
|
Other
income (expense), net |
5,570 |
|
|
4,493 |
|
|
8,609 |
|
|
8,151 |
|
Earnings before income
taxes |
173,810 |
|
|
183,357 |
|
|
322,963 |
|
|
338,841 |
|
Income tax expense |
65,055 |
|
|
66,918 |
|
|
120,641 |
|
|
125,355 |
|
Net
earnings |
108,755 |
|
|
116,439 |
|
|
202,322 |
|
|
213,486 |
|
Less net (loss)
earnings attributable to the noncontrolling interest |
(96 |
) |
|
387 |
|
|
207 |
|
|
850 |
|
Net
earnings attributable to shareholders |
$ |
108,851 |
|
|
$ |
116,052 |
|
|
$ |
202,115 |
|
|
$ |
212,636 |
|
Diluted earnings
attributable to shareholders per share |
$ |
0.60 |
|
|
$ |
0.63 |
|
|
$ |
1.11 |
|
|
$ |
1.16 |
|
Basic earnings
attributable to shareholders per share |
$ |
0.60 |
|
|
$ |
0.64 |
|
|
$ |
1.12 |
|
|
$ |
1.17 |
|
Dividends declared and
paid per common share |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
Weighted average
diluted shares outstanding |
182,033 |
|
|
183,132 |
|
|
182,091 |
|
|
183,110 |
|
Weighted average basic
shares outstanding |
180,012 |
|
|
181,753 |
|
|
180,037 |
|
|
181,882 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(In
thousands)(Unaudited) |
|
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
Activities: |
|
|
|
|
|
|
|
Net earnings |
$ |
108,755 |
|
|
$ |
116,439 |
|
|
$ |
202,322 |
|
|
$ |
213,486 |
|
Adjustments to
reconcile net earnings to net cash from operating activities:
|
|
|
|
|
|
|
|
Provision
for losses on accounts receivable |
515 |
|
|
562 |
|
|
1,446 |
|
|
1,140 |
|
Deferred
income tax expense (benefit) |
7,261 |
|
|
(6,115 |
) |
|
12,854 |
|
|
3,781 |
|
Stock
compensation expense |
17,203 |
|
|
12,957 |
|
|
27,826 |
|
|
23,788 |
|
Depreciation and amortization |
12,042 |
|
|
11,642 |
|
|
23,969 |
|
|
22,971 |
|
Other,
net |
(174 |
) |
|
(6 |
) |
|
(525 |
) |
|
30 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
(73,142 |
) |
|
(48,344 |
) |
|
2,312 |
|
|
64,366 |
|
Increase
in accounts payable and accrued expenses |
52,623 |
|
|
51,422 |
|
|
34,299 |
|
|
36,078 |
|
Decrease
in income taxes payable, net |
(47,159 |
) |
|
(34,734 |
) |
|
(27,335 |
) |
|
(23,809 |
) |
Decrease
(increase) in other current assets |
3,290 |
|
|
1,361 |
|
|
(275 |
) |
|
(694 |
) |
Net cash from operating
activities |
81,214 |
|
|
105,184 |
|
|
276,893 |
|
|
341,137 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Purchase of property
and equipment |
(20,380 |
) |
|
(13,279 |
) |
|
(33,141 |
) |
|
(27,314 |
) |
Other, net |
40 |
|
|
4,414 |
|
|
(631 |
) |
|
3,855 |
|
Net cash from investing
activities |
(20,340 |
) |
|
(8,865 |
) |
|
(33,772 |
) |
|
(23,459 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds from issuance
of common stock |
51,501 |
|
|
48,488 |
|
|
96,866 |
|
|
90,123 |
|
Repurchases of common
stock |
(84,052 |
) |
|
(96,115 |
) |
|
(137,960 |
) |
|
(166,407 |
) |
Dividends paid |
(75,726 |
) |
|
(73,000 |
) |
|
(75,726 |
) |
|
(73,000 |
) |
Net cash from financing
activities |
(108,277 |
) |
|
(120,627 |
) |
|
(116,820 |
) |
|
(149,284 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
6,270 |
|
|
(9,345 |
) |
|
14,174 |
|
|
4,074 |
|
(Decrease) increase in
cash and cash equivalents |
(41,133 |
) |
|
(33,653 |
) |
|
140,475 |
|
|
172,468 |
|
Cash and cash
equivalents at beginning of period |
1,156,043 |
|
|
1,013,917 |
|
|
974,435 |
|
|
807,796 |
|
Cash and cash
equivalents at end of period |
$ |
1,114,910 |
|
|
$ |
980,264 |
|
|
$ |
1,114,910 |
|
|
$ |
980,264 |
|
Taxes
paid: |
|
|
|
|
|
|
|
Income taxes |
$ |
103,508 |
|
|
$ |
108,369 |
|
|
$ |
132,654 |
|
|
$ |
146,353 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIESBusiness Segment Information(In
thousands)(Unaudited) |
|
|
UNITEDSTATES |
|
OTHERNORTHAMERICA |
|
LATINAMERICA |
|
NORTHASIA |
|
SOUTHASIA |
|
EUROPE |
|
MIDDLEEAST,AFRICAAND
INDIA |
|
ELIMI-NATIONS |
|
CONSOLI-DATED |
Three months
ended June30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliatedcustomers |
$ |
452,217 |
|
|
62,554 |
|
|
23,463 |
|
|
620,050 |
|
|
157,698 |
|
|
259,533 |
|
|
96,764 |
|
|
— |
|
|
1,672,279 |
|
Transfers
betweengeographic areas |
28,155 |
|
|
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 |
|
Three months
ended June30, 2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliatedcustomers |
$ |
417,735 |
|
|
56,674 |
|
|
21,169 |
|
|
517,489 |
|
|
151,890 |
|
|
229,882 |
|
|
80,325 |
|
|
— |
|
|
1,475,164 |
|
Transfers
betweengeographic areas |
28,973 |
|
|
2,671 |
|
|
4,187 |
|
|
5,385 |
|
|
6,326 |
|
|
10,097 |
|
|
5,507 |
|
|
(63,146 |
) |
|
— |
|
Total revenues |
$ |
446,708 |
|
|
59,345 |
|
|
25,356 |
|
|
522,874 |
|
|
158,216 |
|
|
239,979 |
|
|
85,832 |
|
|
(63,146 |
) |
|
1,475,164 |
|
Net revenues |
$ |
232,860 |
|
|
30,815 |
|
|
14,468 |
|
|
122,117 |
|
|
46,257 |
|
|
77,639 |
|
|
28,975 |
|
|
(14 |
) |
|
553,117 |
|
Operating income |
$ |
67,214 |
|
|
9,600 |
|
|
3,836 |
|
|
61,721 |
|
|
18,354 |
|
|
11,838 |
|
|
6,315 |
|
|
(14 |
) |
|
178,864 |
|
Identifiable
assets |
$ |
1,343,669 |
|
|
84,358 |
|
|
58,570 |
|
|
471,832 |
|
|
118,352 |
|
|
378,859 |
|
|
225,877 |
|
|
5,938 |
|
|
2,687,455 |
|
Capital
expenditures |
$ |
8,778 |
|
|
445 |
|
|
317 |
|
|
678 |
|
|
351 |
|
|
2,140 |
|
|
570 |
|
|
— |
|
|
13,279 |
|
Depreciation and
amortization |
$ |
7,366 |
|
|
380 |
|
|
288 |
|
|
1,388 |
|
|
543 |
|
|
1,188 |
|
|
489 |
|
|
— |
|
|
11,642 |
|
Equity |
$ |
1,069,876 |
|
|
38,638 |
|
|
39,482 |
|
|
309,557 |
|
|
78,668 |
|
|
133,387 |
|
|
141,315 |
|
|
(31,418 |
) |
|
1,779,505 |
|
(in thousands) |
UNITED STATES |
|
OTHER NORTH AMERICA |
|
LATIN AMERICA |
|
NORTHASIA |
|
SOUTHASIA |
|
EUROPE |
|
MIDDLEEAST,AFRICAAND INDIA |
|
ELIMI- NATIONS |
|
CONSOLI- DATED |
Six months
ended June30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliatedcustomers |
$ |
878,236 |
|
|
122,453 |
|
|
45,566 |
|
|
1,186,478 |
|
|
304,938 |
|
|
490,990 |
|
|
188,750 |
|
|
— |
|
|
3,217,411 |
|
Transfers
betweengeographic areas |
52,468 |
|
|
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 |
|
Six months
ended June30, 2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliatedcustomers |
$ |
825,561 |
|
|
108,780 |
|
|
41,233 |
|
|
1,014,721 |
|
|
288,308 |
|
|
451,779 |
|
|
163,254 |
|
|
— |
|
|
2,893,636 |
|
Transfers
betweengeographic areas |
55,007 |
|
|
5,371 |
|
|
7,788 |
|
|
10,481 |
|
|
12,132 |
|
|
20,458 |
|
|
10,901 |
|
|
(122,138 |
) |
|
— |
|
Total revenues |
$ |
880,568 |
|
|
114,151 |
|
|
49,021 |
|
|
1,025,202 |
|
|
300,440 |
|
|
472,237 |
|
|
174,155 |
|
|
(122,138 |
) |
|
2,893,636 |
|
Net revenues |
$ |
453,558 |
|
|
58,193 |
|
|
28,201 |
|
|
232,908 |
|
|
85,775 |
|
|
152,180 |
|
|
59,382 |
|
|
(11 |
) |
|
1,070,186 |
|
Operating income |
$ |
115,419 |
|
|
16,891 |
|
|
7,688 |
|
|
116,939 |
|
|
34,045 |
|
|
24,091 |
|
|
15,628 |
|
|
(11 |
) |
|
330,690 |
|
Identifiable assets at
period end |
$ |
1,343,669 |
|
|
84,358 |
|
|
58,570 |
|
|
471,832 |
|
|
118,352 |
|
|
378,859 |
|
|
225,877 |
|
|
5,938 |
|
|
2,687,455 |
|
Capital
expenditures |
$ |
16,915 |
|
|
756 |
|
|
802 |
|
|
1,763 |
|
|
1,006 |
|
|
4,259 |
|
|
1,813 |
|
|
— |
|
|
27,314 |
|
Depreciation and
amortization |
$ |
14,698 |
|
|
744 |
|
|
541 |
|
|
2,707 |
|
|
1,055 |
|
|
2,286 |
|
|
940 |
|
|
— |
|
|
22,971 |
|
Equity |
$ |
1,069,876 |
|
|
38,638 |
|
|
39,482 |
|
|
309,557 |
|
|
78,668 |
|
|
133,387 |
|
|
141,315 |
|
|
(31,418 |
) |
|
1,779,505 |
|
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 |
|
Six months ended |
|
June 30, |
|
June 30, |
(in thousands) |
2017 |
|
2016 |
|
2017 |
|
2016 |
Total revenues |
$ |
1,672,279 |
|
|
$ |
1,475,164 |
|
|
$ |
3,217,411 |
|
|
$ |
2,893,636 |
|
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
499,418 |
|
|
403,419 |
|
|
942,822 |
|
|
792,196 |
|
Ocean freight and ocean
services |
385,927 |
|
|
323,699 |
|
|
751,990 |
|
|
646,719 |
|
Customs brokerage and
other services |
223,301 |
|
|
194,929 |
|
|
431,361 |
|
|
384,535 |
|
Net
revenues |
$ |
563,633 |
|
|
$ |
553,117 |
|
|
$ |
1,091,238 |
|
|
$ |
1,070,186 |
|
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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