Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced net earnings attributable to shareholders of $83,496,000
for the fourth quarter of 2013, as compared with $84,208,000 for
the same quarter of 2012, a decrease of (1)%. Net revenues2 for the
fourth quarter of 2013 increased 4% to $478,072,000 as compared
with $461,510,000 reported for the fourth quarter of 2012. Total
revenues and operating income were $1,625,859,000 and $133,663,000
in 2013, as compared with $1,535,729,000 and $128,025,000 for the
same quarter of 2012, increases of 6% and 4%, respectively. Diluted
net earnings attributable to shareholders per share for the fourth
quarter were $.41, as compared with $.40 for the same quarter in
2012, an increase of 2%.
For the year ended December 31, 2013, net earnings
attributable to shareholders was $348,526,000, as compared with
$333,360,000 in 2012, an increase of 5%. Net revenues for the year
increased to $1,882,853,000 from $1,835,370,000 for 2012, up 3%.
Total revenues and operating income for the year were
$6,080,257,000 and $552,073,000 in 2013, as compared with
$5,992,215,000 and $530,798,000 for the same period in 2012,
increases of 1% and 4%, respectively. Diluted net earnings
attributable to shareholders per share for the year ended
December 31, 2013 were $1.68, as compared with $1.57 for the
same period of 2012, an increase of 7%.
“Our 2013 fourth quarter showed steady growth in airfreight and
ocean freight services, both in revenue and in volumes,” said Peter
J. Rose, Chairman and Chief Executive Officer. “Airfreight
volumes rose 5% while ocean freight volumes were up nearly 16%, as
compared with the fourth quarter 2012. Airfreight pricing
remained remarkably consistent with the 2012 fourth quarter while
pricing in the ocean freight market continued to be weak and
somewhat volatile, reflecting the underlying economic challenges
that faced ocean freight carriers caused primarily by overcapacity
concerns. We also saw the impact of these volume increases spill
over into customs brokerage and other services. While it is
increasingly acknowledged that the state of the global economy is
still not nearly as robust as government, economic and financial
pundits would all have us believe, we’ve still found ways to
grow profitably while remaining true to the fundamental
principles which have been the catalyst for developing this
company that had 6 offices and 20 people in 1981 into the $6
billion, nearly 14,000 person, Fortune 500 company it is
today,” Rose went on to say.
“The Greek philosopher Heraclitus, 2,500 years ago, coined the
phrase, ‘Change is the only constant in life is change.’ While the
subject of change is currently very topical at Expeditors, the
irony of this statement is that we’ve always believed change can
only be effectively managed from a touchstone of constancy.
Reflecting back on my career at Expeditors, particularly the last
25 years that I’ve been privileged to serve as CEO, I am amazed at
the changes that have occurred in the world in general and in our
industry in specific. We’ve always embraced those things that must
change, like technology, customer expectations, regulatory
requirements etc., while at the same time reinforcing the specific
things that must never change, like our culture, our values and our
commitment to exceptional customer service,” Rose continued. “We
have the best people, we have great customers and we’ll soon have
an outstanding new CEO who will be backed by an experienced and
vibrant leadership team. What we do to serve our customers
will continuously evolve. Our commitment to our customers, to
our values and to each other, must never change. For a quarter
of a century, it’s been a pleasure and an honor to lead the superb
group of people who make up this great company. I’ll miss every
aspect of being CEO...even, believe it or not, the good-natured (at
least from our perspective) sparring with the analysts. I’ll
close by saying a heart-felt thank you to everyone who has
contributed to making Expeditors what it is today. I’ll also thank
in advance those who will assist me in my transition to being
‘just’ the Chairman of the Board and in supporting Jeff Musser as
he becomes our new CEO,” Rose concluded.
Expeditors is a global logistics company headquartered in
Seattle, Washington. The company employs trained professionals in
185 full-service offices and numerous satellite 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, domestic
time-definite transportation services, purchase order management,
warehousing and distribution and customized logistics
solutions.
1 Diluted 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 2013 Earnings Release, February 25, 2014
Financial Highlights for the Three months and Years ended
December 31, 2013 and 2012 (Unaudited)
(in 000's of US dollars except share
data)
Three months ended December 31,
Years ended December 31,
% Increase
% 2013 2012 (Decrease) 2013
2012 Increase Revenues $ 1,625,859 $ 1,535,729
6% $ 6,080,257 $ 5,992,215 1%
Net revenues $ 478,072 $
461,510 4% $ 1,882,853 $ 1,835,370 3%
Operating income3,
4 $ 133,663 $ 128,025 4% $ 552,073 $ 530,798 4%
Net earnings
attributable to shareholders $ 83,496 $ 84,208 (1)% $ 348,526 $
333,360 5%
Diluted earnings attributable to shareholders $
.41 $ .40 2% $ 1.68 $ 1.57 7%
Basic earnings attributable to
shareholders $ .41 $ .41 —% $ 1.69 $ 1.58 7%
Diluted
weighted average shares outstanding 205,526,229 208,963,216
206,895,473 211,935,171
Basic weighted average shares
outstanding 204,558,152 207,766,619 205,994,656 210,422,945
3In the fourth quarter of 2013 the Company recorded $8 million
of additional Salary and related costs related to the retirement
bonus of Peter J. Rose, the Company’s Chairman and Chief Executive
Officer, whose retirement was announced on October 7, 2013.
4In the fourth quarter of 2012, the Company recorded
approximately $8.4 million in Other operating expenses related to
certain foreign indirect withholding taxes that were determined to
be non-creditable and approximately $3 million of Rent and
occupancy costs associated with a decision not to continue the
pursuit of certain real estate projects that had been recorded
under construction in process.
Employee headcount as of December 31,
2013 2012 North America
4,860 4,726
Asia Pacific 3,952 3,914
Europe and
Africa 2,277 2,332
Middle East 1,222 1,236
South
America 685 672
Information Systems 630 600
Corporate 295 248
Total 13,921 13,728
Year-over-year percentage increase
(decrease) in: Airfreight kilos
Ocean freight FEU 2013 October 6% 15%
November 11% 17%
December (3)% 16%
Quarter 5%
16%
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 ongoing price volatility overcapacity and
volumes in the ocean markets, positive trends in air tonnage and
ocean volumes, ability to maintain or grow market share, strength
of the global economy, and ability to effectively manage change,
including transition to a new CEO. 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 maintain consistent
and stable operating results, future success of our business model,
ability to perpetuate profits, changes in customer demand for
Expeditors’ services caused by a general economic slow-down,
customers’ inventory build-up, decreased consumer confidence,
volatility in equity markets, energy prices, political 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 share data) (Unaudited)
December 31, 2013 December 31,
2012
Assets
Current Assets: Cash and cash equivalents $ 1,247,652 $
1,260,842 Short-term investments 26,337 139 Accounts receivable,
net 1,073,500 1,031,376 Deferred Federal and state income taxes
18,396 12,102 Other current assets 49,384 53,140 Total
current assets 2,415,269 2,357,599 Property and equipment,
net 563,064 556,204 Goodwill 7,927 7,927 Other assets, net 28,552
32,395 $ 3,014,812 $ 2,954,125
Liabilities and
Equity
Current Liabilities: Accounts payable $ 648,156 $ 641,593
Accrued expenses, primarily salaries and related costs 200,301
178,995
Federal, state and foreign income
taxes
21,743 21,970 Total current liabilities 870,200
842,558 Deferred Federal and state income taxes 58,281 78,997
Commitments and contingencies
Shareholders’ Equity:
Preferred stock; none issued — — Common stock, par value $.01 per
share; issued and outstanding 202,553,220 shares at December 31,
2013 and 206,392,013 shares at December 31, 2012 2,025 2,064
Additional paid-in capital 1,647 1,283 Retained earnings 2,087,376
2,018,618 Accumulated other comprehensive (loss) income (6,265 )
5,734 Total shareholders’ equity 2,084,783 2,027,699
Noncontrolling interest 1,548 4,871 Total equity 2,086,331
2,032,570 $ 3,014,812 $ 2,954,125
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (In thousands,
except share data) (Unaudited)
Three
months ended Twelve months ended
December 31, December 31, 2013
2012 2013 2012 Revenues:
Airfreight services $ 742,371 $ 700,785 $ 2,633,830 $ 2,600,916
Ocean freight and ocean services 495,552 472,307 1,958,231
1,974,891 Customs brokerage and other services 387,936 362,637
1,488,196 1,416,408 Total revenues 1,625,859
1,535,729 6,080,257 5,992,215
Operating
Expenses: Airfreight services 579,740 546,395 1,994,374
1,983,696 Ocean freight and ocean services 386,041 364,251
1,521,340 1,542,170 Customs brokerage and other services 182,006
163,573 681,690 630,979 Salaries and related costs 267,002 246,096
1,032,601 995,052 Rent and occupancy costs 24,990 27,343 98,437
98,580
Depreciation and amortization 12,490 10,695 48,071 39,940 Selling
and promotion 9,352 8,814 33,243 34,184 Other 30,575 40,537
118,428 136,816 Total operating expenses 1,492,196 1,407,704
5,528,184 5,461,417 Operating income 133,663 128,025
552,073 530,798 Interest income 2,530 3,522
11,810 12,763 Other, net 1,645 1,845 8,713 6,832
Other income, net 4,175 5,367 20,523 19,595 Earnings
before income taxes 137,838 133,392 572,596 550,393 Income tax
expense 53,829 49,893 222,585 217,424 Net earnings
84,009 83,499 350,011 332,969 Less net earnings
(losses) attributable to the noncontrolling interest 513 (709 )
1,485 (391 ) Net earnings attributable to shareholders $ 83,496 $
84,208 $ 348,526 $ 333,360 Diluted earnings
attributable to shareholders per share $ .41 $ .40 $ 1.68 $
1.57 Basic earnings attributable to shareholders per share $
.41 $ .41 $ 1.69 $ 1.58 Dividends declared and paid
per common share $ .30 $ .28 $ .60 $ .56 Weighted
average diluted shares outstanding 205,526,229 208,963,216
206,895,473 211,935,171 Weighted average basic shares
outstanding 204,558,152 207,766,619 205,994,656 210,422,945
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, 2013
2012 2013 2012 Operating
Activities: Net earnings $ 84,009 $ 83,499 $ 350,011 $ 332,969
Adjustments to reconcile net earnings to net cash from operating
activities: (Recoveries) provision for losses on accounts
receivable (421 ) 302 2,116 (90 ) Deferred income tax (benefit)
expense (730 ) 7,309 (20,975 ) 11,639 Excess tax benefits from
stock plans (656 ) (1,110 ) (2,339 ) (5,401 ) Stock compensation
expense 10,753 11,212 43,813 44,058 Depreciation and amortization
12,490 10,695 48,071 39,940 Other 208 3,181 844 4,864 Changes in
operating assets and liabilities: Increase in accounts receivable
(50,093 ) (16,044 ) (64,575 ) (89,856 ) Decrease (increase) in
other current assets 3,263 3,566 (2,015 ) (63 ) Increase (decrease)
in accounts payable and accrued expenses 9,335 (30,341 ) 44,150
30,625 (Decrease) in income taxes payable, net (6,205 ) (11,520 )
8,435 1,441 Net cash from operating activities 61,953
60,749 407,536 370,126
Investing
Activities: Decrease (increase) in short-term investments, net
73,489 131 (26,201 ) 342 Purchase of property and equipment (10,720
) (10,554 ) (53,411 ) (47,626 ) Other 1,680 15 2,806
290 Net cash from investing activities 64,449
(10,408 ) (76,806 ) (46,994 )
Financing Activities: Proceeds
from issuance of common stock 7,660 7,510 59,752 52,511 Repurchases
of common stock (136,730 ) (108,921 ) (261,936 ) (302,414 ) Excess
tax benefits from stock plans 656 1,110 2,339 5,401 Dividends paid
(61,393 ) (57,905 ) (123,292 ) (117,263 ) Purchase of
noncontrolling interest — — (7,730 ) — Distribution to
noncontrolling interest — (105 ) (1,161 ) (1,282 ) Net cash
from financing activities (189,807 ) (158,311 ) (332,028 ) (363,047
) Effect of exchange rate changes on cash and cash equivalents 727
1,170 (11,892 ) 6,401 Decrease in cash and
cash equivalents (62,678 ) (106,800 ) (13,190 ) (33,514 ) Cash and
cash equivalents at beginning of period 1,310,330 1,367,642
1,260,842 1,294,356 Cash and cash equivalents
at end of period $ 1,247,652 $ 1,260,842 $ 1,247,652
$ 1,260,842
Taxes paid: Income taxes $ 61,169
$ 52,168 $ 235,368 $ 207,174 EXPEDITORS INTERNATIONAL
OF WASHINGTON, INC. AND SUBSIDIARIES Business Segment
Information (In thousands) (Unaudited)
OTHER
EUROPE MIDDLE
UNITED NORTH LATIN ASIA
and EAST and ELIMI- CONSOLI-
STATES AMERICA AMERICA PACIFIC
AFRICA INDIA NATIONS DATED Three
months ended December 31, 2013: Revenues from unaffiliated
customers $ 394,835 54,651 22,629 844,148 229,823 79,773 —
1,625,859 Transfers between geographic areas 24,262 3,067
5,578 12,388 10,036 4,478 (59,809 ) — Total revenues $ 419,097
57,718 28,207 856,536 239,859 84,251 (59,809 ) 1,625,859 Net
revenues $ 197,560 27,388 15,918 139,239 73,387 24,580 — 478,072
Operating income $ 34,509 12,201 1,727 59,682 17,506 8,038 —
133,663 Identifiable assets $ 1,582,557 104,735 58,027 669,040
445,722 148,626 6,105 3,014,812 Capital expenditures $ 6,503 336
459 2,404 684 334 — 10,720 Depreciation and amortization $ 7,928
267 221 2,106 1,531 437 — 12,490 Equity $ 1,330,262 72,772 29,590
408,824 196,087 83,174 (34,378 ) 2,086,331
Three months ended
December 31, 2012: Revenues from unaffiliated customers $
381,638 51,557 20,887 800,835 210,352 70,460 — 1,535,729 Transfers
between geographic areas 25,386 2,868 4,770 11,035 10,097
4,300 (58,456 ) — Total revenues $ 407,024 54,425 25,657 811,870
220,449 74,760 (58,456 ) 1,535,729 Net revenues $ 188,796 25,029
14,258 136,528 73,514 23,385 — 461,510 Operating income $ 28,201
11,045 4,237 57,933 18,804 7,805 — 128,025 Identifiable assets $
1,459,425 92,075 48,995 776,902 428,053 147,871 804 2,954,125
Capital expenditures $ 7,412 281 241 1,452 794 374 — 10,554
Depreciation and amortization $ 6,358 200 229 1,850 1,605 453 —
10,695 Equity $ 1,197,239 58,071 29,504 538,710 167,752 74,950
(33,656 ) 2,032,570
Twelve months ended December 31,
2013: Revenues from unaffiliated customers $ 1,561,468 215,968
86,050 3,065,412 850,863 300,496 — 6,080,257 Transfers between
geographic areas 89,570 11,038 21,711 46,704 37,463 17,837
(224,323 ) — Total revenues $ 1,651,038 227,006 107,761 3,112,116
888,326 318,333 (224,323 ) 6,080,257 Net revenues $ 770,519 102,864
61,478 563,705 286,018 98,269 — 1,882,853 Operating income $
195,799 35,224 15,734 225,322 52,939 27,055 — 552,073 Identifiable
assets $ 1,582,557 104,735 58,027 669,040 445,722 148,626 6,105
3,014,812 Capital expenditures $ 28,699 1,870 1,010 17,262 3,148
1,422 — 53,411 Depreciation and amortization $ 29,569 882 901 8,420
6,244 2,055 — 48,071 Equity $ 1,330,262 72,772 29,590 408,824
196,087 83,174 (34,378 ) 2,086,331
Twelve months ended December
31, 2012: Revenues from unaffiliated customers $ 1,529,917
201,521 82,337 3,074,737 817,408 286,295 — 5,992,215 Transfers
between geographic areas 94,521 10,476 18,780 43,721 38,791
18,128 (224,417 ) — Total revenues $ 1,624,438 211,997 101,117
3,118,458 856,199 304,423 (224,417 ) 5,992,215 Net revenues $
748,320 95,798 57,795 551,361 286,745 95,351 — 1,835,370 Operating
income $ 179,015 32,385 17,356 216,559 59,314 26,169 — 530,798
Identifiable assets $ 1,459,425 92,075 48,995 776,902 428,053
147,871 804 2,954,125 Capital expenditures $ 28,088 832 1,301
11,275 4,323 1,807 — 47,626 Depreciation and amortization $ 23,678
756 873 6,810 5,994 1,829 — 39,940 Equity $ 1,197,239 58,071 29,504
538,710 167,752 74,950 (33,656 ) 2,032,570
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 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) 2013 2012
2013 2012 Total revenues $ 1,625,859 $
1,535,729 $ 6,080,257 $ 5,992,215
Expenses: Airfreight
services 579,740 546,395 1,994,374 1,983,696 Ocean freight and
ocean services 386,041 364,251 1,521,340 1,542,170 Customs
brokerage and other services 182,006 163,573 681,690 630,979 Net
revenues $ 478,072 $ 461,510 $ 1,882,853 $ 1,835,370
Expeditors International of Washington, Inc.R. Jordan Gates,
206-674-3427President and Chief Operating OfficerorBradley S.
Powell, 206-674-3412Senior Vice President and Chief Financial
Officer
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024